How did Woodstock lose $7,-12,000?

How did Woodstock lose $7,-12,000 in Impact Fees, when a builder constructed a two-bedroom house in west Woodstock in 2002?

The City's attorney has explained to me how builders are given a temporary break on payment of Impact Fees. There are always strings attached, when a City gives up something; right? In the case of Impact Fees, the builder chooses the route to delay payment of a portion of the Impact Fees, he gives up the option to argue later.

When a house plan for a two-bedroom house is submitted to the City, Impact Fees are calculated. On the current (2012) Impact Fee schedule, the Impact Fees for a two-bedroom house are 50% of those for a four-bedroom house. On the 2012 Schedule, Impact Fees for a two-bedroom house total $12,000; on a four-bedroom house, over $24,000. Not small change.

A builder would, of course, always want to pay lower Impact Fees than higher fees. And since these will be passed along directly to the buyer of that home as part of the sales price, the prospective home owner would naturally be similarly interested.

How does a two-bedroom house become a four-bedroom house? Hmmm, somebody adds two bedrooms? Maybe? You think?

So the question is, when did the home in question become a four-bedroom house?

A Certificate of Occupancy must be issued before the home can be occupied. For the CO to be issued, the house must be inspected.

The City of Woodstock should hire a building inspector who is alert to a builder who might be trying to slide under the wire on Impact Fees. When the house was inspected and the City was about to issue the CO, did the inspector actually go to the house? Did he go into the basement? Did he notice two rooms in the basement that could be used as bedrooms? Were there two rooms there that would have normally been classified as bedrooms?

The City's position is, if it could be used as a bedroom, then it is a bedroom. There doesn't have to have a sign on the door that reads "Bedroom". If it is framed in and wired and has walls or could be walled in, if a door is on the room or could be added, if there is a closet or room for one, then it's a bedroom, and the City is entitled to the Impact Fees on those basement bedrooms.

Now, consider the house that is built as a two-bedroom house and then two bedrooms are later added to the basement. For electrical and plumbing work to be done, permits must be obtained and permit fees must be paid. Plans need to be reviewed and fees paid. If a basement bedroom is added, there must be adequate ventilation and protection from furnace fumes. And a new CO must be issued.

But there are no such permits in the file.

Your City Council doesn't have a problem with what was done or how it was handled.

Are there people in Woodstock who submitted remodeling plans, were told there would be Impact Fees payable and who paid the fees? (The City attorney says that Impact Fees can be levied only on new construction, not on remodeling projects.) Contact me.

Are there people in Woodstock who submitted remodeling plans and who, when told they would have to pay Impact Fees, decided to abandon the project? Contact me.