Using Impact Fees to Allow Flexible Development Options

Newton currently has a rigid development framework that does not allow projects that cannot be supported by current infrastructure to be approved. Other communities allow developers to pay impact fees, so that infrastructure can be expanded to accommodate larger projects that meet the needs of their community.

Summary of Proposed Solution

Newton should add a section to our zoning ordinances that allows a partial exemption from some of the special permit criteria for projects that can be accommodated by infrastructure improvements supported by impact fees.

Discussion and Implementation Plan

While there have been some ad-hoc donations made to the city as part of the special permit process, most recently $50 thousand for a study of undergrounding wires on Needham St. donated by the Paragon Place project, there is no structured program for assessing impact fees. We should adopt an ordinance that allows a developer to agree to ongoing fees to mitigate infrastructure impacts based on measurable project characteristics, such as vehicle trips generated. Funds collected through this program would be used to mitigate impacts. For example, traffic mitigation funds could be used for traffic signals, bicycle paths, pedestrian crossings, public transportation, or similar purposes. The Mayor, Planning Department and Board of Aldermen should work together to draft an impact fee ordinance.