When will the developer pay an impact fee?
AbstractUnder court rulings, the jurisdiction can require the developer to bear only those public-sector costs that relate reasonably to his project. To avoid a lawsuit by the developer over cost estimates, planners can offer him his choice of sets of conditions that would attach to land-use permits. The developer will choose to pay an impact fee unless he does not value infrastructure and unless he expects more accurate information later about the development costs generated by his project.
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Bibliographic InfoPaper provided by EconWPA in its series Public Economics with number 9810004.
Date of creation: 15 Oct 1998
Date of revision: 19 Apr 2003
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impact fees; infrastructure;
Find related papers by JEL classification:
- R52 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Land Use and Other Regulations
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- Leon Taylor, 1998. "Land-use agreements when the developer is not sure of infrastructure costs," Public Economics 9810005, EconWPA, revised 24 Oct 1998.
- Robert W. Helsley & William C. Strange, 1997. "Limited Developers," Canadian Journal of Economics, Canadian Economics Association, vol. 30(2), pages 329-48, May.
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