A. What is The Road Impact Fee Program?
This program more fairly splits the impact of new development on roads. The Housing and Building Association of Colorado Springs (HBA) and other stakeholders supported the establishment of a County-wide fee system, and worked with the County to create this program. New development in unincorporated El Paso County has been subject to a County-wide Road Impact Fee since March 1, 2010.
The Road Impact Fee Program is implemented based on two documents. The Road Impact Fee Implementation Document (PDF) addresses how the program is run and serves as the “how to” document. The Major Transportation Corridors Plan: Road Impact Fee Study (PDF) explains how costs were determined and which roads are eligible for potential credit.
B. Who pays the fee?
- Subdivisions receiving final plat approval on or after February 11, 2010.
- Subdivisions receiving final plat approval before February 11, 2010, with a condition of approval, or any extended or expired plats subject to Resolution No. 11-146 that requires participation in a traffic impact fee program.
- Subdivisions receiving final plat approval before February 11, 2010, but that have expired prior to recording and for which an extension of time is granted by the Board of Commissioners.
- Property that is rezoned if the rezone results in development that generates at least 100 more daily trips than would have been generated under the previous zoning.
After December 31, 2019, the fee is paid by anyone building.
Any property in the unincorporated area of the county which receives a Building Permit either in a public hearing or administratively, is subject to the payment of Road Impact Fees. (Homes destroyed by fire or other natural disasters are exempt from the fee.)
C. How is the Fee Calculated?
As of January 2019, the fee is $398.55 per trip. The fee may change when the Major Transportation Corridor Plan (MTCP) is updated, when unit costs are updated or when road improvements are added or deleted from the program.
The County formed two Public Improvement Districts (PIDs) as options to defray the upfront cost of the impact fee. The PID will collect taxes that will be used to pay for a portion of the Road Impact Fee. Developers will have the option of joining the PID at time of final plat. Developers may choose to pay a smaller upfront fee and enter the 10 mill PID, a larger upfront fee and enter the 5 mill PID, or may pay the full fee and not have a mill levy placed on the property (meaning that this property is not included in a public improvement district). See the table above for the fee amount paid at building permit.
D. Road Impact Fee Credits
Any person or entity may apply for a credit for any construction, or dedication of land accepted and received by El Paso County for any Eligible Improvement based on unit costs. To create credits, prior to initiation of construction or dedication of right-of-way, the developer will enter into a credit agreement with the County. After subtracting any impact fees due, credits may be eligible for reimbursement from funds in the Impact Fee Account. Developers shall not be eligible for impact fee credits for improvements for which they are being reimbursed by some other entity or funding source.
Credits may also be utilized, at the credit holder’s discretion, to offset future impact fees that would otherwise be due. A Credit Card Authorization Form must be filled out and signed before credits may be used at building permit time. To transfer credits, a completed and signed Credit Transfer Request Form is needed. Credits may also be sold or transferred to another entity.
E. How are credits obtained and used?
Credit use and obtaining credits are guided by procedures in the Road Impact Fee Implementation Document (PDF). Any entity that contributes to or builds an Eligible Improvement can apply for credit.
- Before a contribution to or building an eligible improvement, a credit agreement must be signed.
- Credit is calculated by first determining the value of the Eligible Improvement constructed using those same standardized unit costs that were used to calculate the Road Improvement Fee. Credit is not given for the entire actual cost of construction.
- Any outstanding fee obligation is then subtracted to arrive at the credit amount.
- Credits may be used to offset future fee obligations, may be reimbursed from available fee funds, or may be transferred to another entity. A valid and signed credit use form, or credit transfer form is required for these actions.