Thu Sep 12 07:36:44 UTC 2024: ## Greeley City Council Approves Study to Update Development Impact Fee

**Greeley, CO** – In response to declining revenue and rising inflation, the Greeley City Council has approved a study to assess the viability of a public facility fee and make adjustments to the existing Development Impact Fee (DIF).

The DIF, a one-time fee charged to developers for building permits, is meant to fund essential city services such as parks, police, fire, transportation, and storm drains. While the city is required to review and update the DIF every five years, this study is being conducted three years ahead of schedule due to concerns over falling DIF revenue.

The current DIF, based on a 2020 study, utilizes a tiered system for residential developments, with costs ranging from $7,791 for units under 1,200 square feet to $16,677 for units over 1,800 square feet. However, despite a 10.7% increase in the DIF last year, the city has collected only $5.3 million this year, compared to over $30 million in 2022.

The study will examine the impact of inflation, consider including public facilities in the DIF, and analyze the differences in fees for single and multifamily units. Councilman Johnny Olson expressed support for adjusting the fee to incentivize the construction of certain types of residential buildings, while Councilman Tommy Butler argued against this approach, fearing it could deter developers.

Greeley’s DIF is currently among the lowest in the region, with average costs of $44,000 and $58,000 for tiers 1 and 4 respectively. City Manager Raymond C. Lee III attributed this to previous leadership’s efforts to make development in Greeley more attractive. However, the study aims to ensure that the DIF adequately funds essential city services and remains competitive in the market. The study is expected to be completed by August 2024, with a new DIF implemented in 2026.

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