MINOT – Selectmen explained the workings of the town’s development impact fees at Monday night’s public hearing on a proposal to expand them.

The town collects a $2,000 impact fee for all new home construction, including mobile homes, with four bedrooms or less, that is being set aside to pay for future school needs.

Following its annual review, the town’s impact fee committee recently recommended that the impact fee system be expanded to address the impact on recreation and public safety, within impact fees set at $500 each, bringing the total impact fee to $3,000 for a typical new home.

Resident Yvette Murray asked why the impact fee was limited to new construction?

“I see homes being sold by older people to families with children,” said Murray, pointing out that turnover of existing housing often places increased demands on town services.

Selectman Dean Campbell said laws governing municipal impact fees do not allow for any sort of “per head” charge.

Campbell went on to note that the law only allows spending on infrastructure and will only allow payment for increases in service demand caused by growth.

Selectman Dan Callahan said that from his reading it appeared one could argue the money could be used for improvements at existing facilities.

“Take a bathroom at the school. Three hundred and sixty kids will wear it out faster than 300 kids,” said Callahan.

Selectman Steve French said that all departments need to know exactly what impact fee money may be used for and how it can be accessed, suggesting a workshop be held on the matter.

In response to resident Steve Holbrook’s questions regarding who has authority to set fees and who can authorize spending them, Campbell explained that selectmen can set the fees but only voters at town meetings can authorize spending.

Selectmen also explained that the money collected is held in escrow and, if not spent on eligible projects, must be returned after 15 years, with interest.

Impact fees collected for public safety would be earmarked for replacing the Central Fire Station. Space is at a premium in the station and, as more homes are built in Minot, the need for space will reach a critical point, particularly for rescue services.

Impact fees for recreational facilities will be used to support the recreation committee’s five-year plan to develop the play field complex behind the school.

Selectmen are considering reducing the impact fee committee’s recommendation of $500 for recreational facilities to $300.

Selectmen also agreed to hold off consideration of a recommendation that developers of new roads be assessed an impact fee of $8.73 per linear foot of new road.

Selectmen will hold a second public hearing on the proposed impact fee changes at 7 p.m. Monday, Aug. 28, at the town office.

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