In a one-minute meeting, the Johnson County Board of Commissions passed a road impact fee for new construction in the future Interstate 69 corridor.
The 2-1 decision came after a lengthy discussion at the commissioner’s meeting Monday, and months of discussion between the county and Town of Bargersville. The commissioners on Monday passed an agreement with the Town of Bargersville to share funds and responsibilities related to highway development.
But the three-member board tabled the fee Monday due to a concern Commissioner Ron West had with a clause in the ordinance that said the county highway director could perform work for the town without pay. West asked that the clause be removed or revised to include a not-to-exceed amount, but the county attorneys said it was not necessary.
After the meeting Monday, West said he sought another opinion from the county’s litigation attorney, who offered roughly the same opinion as other county attorneys, that the clause would not be a risk for the county as it refers to small projects such as help with snow removal.
Still, West voted against the ordinance due to the clause and because he believes the fee unfairly penalizes small households, he said.
“A new homeowner pays their fuel tax just like everyone else,” West said. “I understand that we need more money for road improvements, but I would rather see it come in a more fair and equitable fashion. I would rather see a fuel tax in terms of 2 or 3 cents.”
West, who represents northern Johnson County including White River Township, said the fee would hurt his district more than help it, given the cost of the fees in addition to gas and wheel taxes property owners already pay to the county.
Commissioner Kevin Walls, who represents central Johnson County including Bargersville, has the opposite opinion. For Walls, the fee is a much-needed way to make sure the county and town can keep up with the growth that is expected once I-69 is built through the county.
“My theory is it will help in the long run. It is not a tax, it is a fee, so it will save the taxpayers money,” Walls said. “You’ve got a huge white elephant in the room of I-69 coming in. Anything we can do to help with that we have to do. The magnitude of that — you haven’t seen the big ice tip to that. It is monstrous.”
The fee would be charged to individuals or developers who are granted a new building permit within the future I-69 corridor, near the present-day State Road 37.
The county and town collaborated on the project because both will be impacted by the highway significantly, and roads in both the county and town will be equally used by future developments, said Luke Mastin, county highway director.
Both governments would collect the same fee for new developments within an I-69 impact zone. Money collected would go toward priority road projects the county and town would need to agree on, according to the interlocal agreement.
The impact zone stretches from Bargersville’s southern point to County Line Road, along State Road 37. It includes all of Bargersville and portions of White River Township, between State Road 37 and State Road 135, as well as other county roads that will lead to I-69, including Stones Crossing, Morgantown, Mullinix and Olive Branch roads.
New single-family homeowners will be charged a standard fee of $2,571.64, including a $40.12 bridge and culvert impact fee, based on an average of trips per 24 hours. This fee is based on 10 trips per day, an industry-standard that represents the average number of trips a household may take, Mastin said.
For commercial properties, the fee is not standard. It is based on the square footage of the building and the amount of traffic the business is expected to generate in a 24-hour period, Mastin said. The fee will be calculated using $268.17 per daily trip, and $4.25 bridge and culvert per daily trip.
The cost of the fee is not much compared to the overall investment businesses and homeowners will be making. With homes starting between $300,000 and $500,000 in the impact zone, the fee is a small ask, Walls said.
The fee would only apply to new construction, not existing businesses and homes, Mastin said. Existing neighbors would benefit from the fee in that projects will be completed with the money collected instead of tax dollars, Walls said.
Fee amounts are also based on the current state of roads in the zone, the projected growth of the area and how much future projects due to that growth are expected to cost, Mastin said.
The fee would be collected by county and town planning departments at the time a permit is issued, according to the interlocal agreement. If the cost is more than $5,000, it may be paid over time.
The fees will collect in an account within the county’s budget until enough is accumulated to complete a project in the I-69 impact zone. The fee is expected to raise $3.5 to $4 million in the first five years from residential development alone, Mastin said.
County and town officials agreed on three initial projects, all roundabouts, at County Road 144 and Morgantown Road, at Olive Branch Road and Mullinix Road, and County Road 144 and Saddle Club Road, Mastin said.
Once those projects are all underway, officials would meet to decide on the next set of projects. Of the three projects, one priority is to be submitted by the town, one by the county and a third by both.
Money collected from the fee may only be used on agreed-upon projects and may only be used on project in the impact zone, according to state law.
The Bargersville Town Council will also need to approve the fee and interlocal agreement. The commissioners approved the interlocal agreement 2-1 on Monday with West voting against it.
The fee would go into effect six months after the town council passes it, if it does. The fee would be in effect for five years, with further action required by the county and town to extend it.
