Impact Fees Agreement

An Impact Fees Agreement is a legally binding contract between a local government and a property owner or developer that outlines the payment of impact fees associated with a specific development project. Impact fees are charges assessed by local governments to cover the cost of providing public services and infrastructure, such as roads, schools, parks, and utilities, that are necessary to support the new development. The agreement typically specifies the amount of the impact fees, the timing and method of payment, and any credits or reimbursements that may be available for developer-funded improvements. Impact Fees Agreements help to ensure that new development pays its fair share of the costs of growth and that adequate public facilities are available to serve the community. These agreements are an important tool for managing the fiscal impacts of growth and maintaining the quality of life in a community.