Application fee structure

[Glynis Jordan]

Does anyone use a percentage of the construction cost to calculate a lump sum fee category? (ie. a $6million project would anticipate a "X"% application and review fee.)

If so, how?

Thanks!

 

[Greg Lee]

Here in the England fees are based on the size of development. Thus, the fee increases proportional to the size of proposed development - and supposedly in line with the scale of issues to be considered. Would not application fees basedon capital cost of projects mean that the financial investment potential of applications becomes a material consideration - as opposed to a pragmatic decision based on the merits of the application itself?

However, contraverstially, some planning authorities do have a policy of securing a percentage of the development value (generally 1%) as a developer contribution to public art. Often the developer will implement these public art schemes himself, thereby ensuring that he can also benefit.

 

[BobH]

Here in Minnesota our fees have to be based on the cost of providing the service. I've seen some cities have a basic minimum fee, then a per hour charge for anything above that amount. In my city we calculate the average cost of mailing, notices, space & occupancy charges for use of meeting rooms (yes, that's in our budget), and then charge more for extraordinary size of mailings, a direct cost. Still doesn't cover the total cost, but it's fair.

 

[Linden Smith]

I've seen it done that way for building permits, but not for Planning Commission fees. Typically, Commission fees are based on acerage, which is not as easy to fudge.