Those building a new home in Valparaiso may soon have to pay almost $2,700 toward the city's park system. Valpo Parks recently worked with V3 Companies on the required five-year review of the city's recreation impact fee.
It's currently $1,598 for single-family homes. The recommendation would raise that to almost $2,687 next year, plus a five-percent increase every year after that through 2030.
Valpo Parks Director Kevin Nuppnau told the city council Monday that the fee has brought in more than $1.2 million over the past five years. It's been used to help pay for pathways, a dog park and a skate park.
"The recreation impact fee is a tool for sustainable growth, ensuring that parks and recreation facilities grow with the community's population," Nuppnau said.
Still, council members had some concerns with the proposed fees, which would likely be the highest in the area.
While the park district includes Center Township, council member Jack Pupillo noted that only those moving into the city itself have to pay. "We all know that everybody within a 10-mile radius of Valparaiso, regardless of whether they're in the city or not, are using our facilities, using our services — wear and tear and maintenance, whatever. I mean, there's a cost associated with that, and we, as the citizens of Valparaiso, are shouldering all of that burden," Pupillo said.
But Nuppnau said that the $85,000 annual payment Valpo Parks already gets from the township is likely more than a township impact fee would bring in.
The proposed fee schedule includes discounts for condominium, apartment and assisted living units. Council member Robert Cotton suggested discounts for nonprofit housing developers, as well, but council member Diana Reed disagreed.
"They don't pay taxes, anyway, and so they're already getting that benefit," Reed said. "And so, by having them pay this impact fee, they are paying something towards the community for the benefit of their children for the residents that are going to live there."
Some council members also worried that the population growth assumed by the study — 8,580 new residents by 2034 — was slightly higher than other projections the city has used.
Many Valparaiso officials would like to see the impact fees be used toward a new park on the growing northwest side. State law does include a provision letting developers avoid paying the fees by donating land, instead.
The fee increase will be up for the council's final approval on June 23.
