The Sedona City Council recently held a public hearing on a set of proposed increases in development impact fees.
Sedona’s development fees are based on the square footage of each residential unit, an uncommon approach in Arizona, with the goal of making smaller units more affordable.
The proposed fee increases would be more than double the design costs per unit.
Consultant Ben Griffin of Tischler Bise explained the proposed increases as
- Units smaller than 700SF increased from $3,273 to $7,381 (126%),
- 1.5KSF increasing from $5,832 to $12,018 (106%),
- 2.5KSF increasing from $7,419 to $17,228 (132%).
Lodging units would also undergo a fee increase, rising 139% from the current $3,702 to $8,863/unit.
Several Councilmembers expressed shock over the scale of the proposed increases and said they feared such dramatic hikes would further impede the development of comparatively attainable housing.
Sedona’s rate of development is already relatively small. Griffin reported that since 2020 the average annual delivery rate has been 25 single-family and 33 multifamily units. A 2020 housing study showed Sedona would need an additional 1,480-1,515 housing units by 2025.
It was pointed out, however, that Sedona’s total impact development fee collections are comparatively small, with just $615K in the preceding fiscal year.
Members asked for information on how other communities in the area, as well as how Yavapai County, deal with impact fee rates and collections.
Due to statutory requirements, the earliest new development fees could affect Sedona would be March 31. (Source)