A.  What is The Road Impact Fee Program? 

This program is a method to more fairly and equitably allocate the impact of new development on roads, and to recover the costs instead of individually negotiated developer agreements.  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.

The program does not include all roads in unincorporated El Paso County.  It only encompasses the roads with higher traffic counts providing for regional travel.

New development in unincorporated El Paso County has been subject to a County-wide Road Impact Fee since March 1, 2010.  A Resolution (#12-382):PDF establishing the Road Impact Fee Program was passed by the Board of County Commissioners on November 15, 2012.

The Road Impact Fee Program is implemented based on two documents: the Road Impact Fee Implementation Document (PDF) and the Major Transportation Corridors Plan: Road Impact Fee Study (PDF). The Implementation Guidance Document addresses how the program is run and the processes it uses. The Road Impact Fee Study explains how costs were determined.

The fee amount increased on December 2016 to $367.49 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 inclusion of a property in one of the two Public Improvement Districts (PID) changes the amount of fees which must be paid when a building permit is issued.  See table below.

B.  How is the Fee Calculated?

The road impact fees for the recommended land use categories calculated in this study are presented in Table 15 in the MTCP Road Impact Fee Study Document . The impact fee calculation for each land use category is the product of daily trip ends per development unit and the net cost per trip end.

1. Determine the regional roads which require capacity improvements in order to accommodate new  development.  These are drawn from the 2040 MTCP and specifically listed in the Road Improvement Fee Study as Eligible Improvements.

2. Calculate the total cost of building the Eligible Improvements by using standardized unit costs.  Only certain elements of construction are included:  a) asphalt, b) curb or shoulder, c) earthwork, d) construction management, and e) right-of-way acquisition.  There is no intent to capture the full cost.

3. Determine the number of trips that will be generated by new development in the unincorporated County.

4. Divide the total cost of road improvements by the number of trips generated to obtain a per trip cost.

5. Multiply the per trip cost by the number of trips generated by a particular land use to obtain the road improvement fee for that land use type.

C.  Who pays the fees?  

1. Subdivisions receiving final plat approval on or after February 11, 2010.
2. 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.
3. 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.
4. 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.

D.  What is a Public Improvement District (PID)? Road Impact Fee table

In conjunction with the Road Impact Fee Program, the County formed two Public Improvement Districts (PIDs) as options to supplement the fee program. 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. Developments within the PID will be subject to a lower fee at the time a building permit is issued than developments that do not belong to the PID. 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 table below for the fee amount paid at building permit if properties are not in the PIDs.

E.  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 ROW, 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 Use 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 Action Request Form is needed.  Credits may also be sold or transferred to another entity.

F.  How are credits obtained and used?

1.  Any entity that contributes to or builds an Eligible Improvement can apply for credit.
2.  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.
3.  Any outstanding fee obligation is then subtracted to arrive at the credit amount.
4.  Credits may be used to offset future fee obligations, may be reimbursed from available fee funds, or may be transferred to another entity.