Those building homes in Franklin will soon pay a higher park impact fee that is aimed at preparing the city to expand its parks system as its population grows over the next 10 years.
By more than tripling the fee, the City of Franklin is taking a more "aggressive" approach to park development than it has in the past, with hopes to accomplish big renovation projects at the city’s pool, senior center and Scott Park, said Chip Orner, Franklin Parks and Recreation superintendent.
The Franklin Common Council approved an increase to the city’s park impact fee. Now, the city will collect $1,142 for each new house that is constructed, and $742 for each new apartment, condominium or duplex, according to city documents.
The fee will increase markedly from the previous rate which, for a single-family home, was $376.
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Park impact fees are charged — to a developer or an individual building a new house outside of a subdivision — at the time a permit is issued for all types of new construction. Homeowners and renters typically pay back the developer for the fee, but don’t notice the cost, Orner said.
The fee, which has been in place since 2005, is reevaluated every five years, based on the park needs and the economy, Orner said. In 2005, the fee was $507, but droped to $366 in 2010 due to the economy at the time, followed by a modest increase to $376 in 2015, he said.
The fee is calculated based on the next 10 years of anticipated growth, and an estimated cost of keeping up with parks needs that those residents will bring. Park needs are based on the city’s comprehensive plan, Orner said.
The study projects $1.5 million will be raised in the next 10 years for parks projects, he said. That would equate to more than 1,300 new single-family homes.
At the previous rate, about $300,000 was raised in the last five years. With that money, smaller projects such as trail extensions and a couple new shelter houses were built, Orner said.
As the city collects more money, it can plan more large-scale projects in the comprehensive plan, such as a remodel at the city’s Active Adult Center, a community sports complex at Scott Park and renovations to the Franklin Aquatic Center, he said.
The city could also use the money to buy new land and build new park facilities to serve future residents on the northside of the city. This may be needed because most of the city’s parks are centralized, while the population is spreading outward, Orner said.
Though the impact fee is not intended to fully fund future projects, it is collected to supplement bonds and tax dollars, he said.
Though a $766 increase may sound like a lot, data shows Franklin’s fee is still among the lowest in Central Indiana. For example, Greenwood charges $1,590 per new single-family home, while Hamilton County cities such as Carmel and Noblesville charge more than double Franklin’s fee.
“As aggressive as we are trying to be, we didn’t think $1,142 was out of the realm of reality,” Orner said.
In nearby Greenwood, the fee has become a great way to supplement park improvements, said Rob Taggart, parks director. Some impact fee money went toward playground equipment at the newly renovated Old City Park, and funded other projects such as trail improvements, land acquisition and pickleball courts, he said.
Since Greenwood’s new fee went into effect in October, the city hasn’t heard any pushback about the higher fee from developers, Taggart said. That is expected since the fee is to offset the impact of new development from those who are responsible for the development, he said.
Similarly, Orner does not expect developers to have an issue with Franklin’s new fee, considering what other communities charge.
Franklin’s new park impact fee will take effect June 21.
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Here is a look at park impact fees in cities around Central Indiana:
Franklin $1,142
Greenwood $1,590
Brownsburg $1,191
Plainfield $1,298
Westfield $1,485
Fishers $1,667
Noblesville $2,118
Carmel $4,882
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