Town officials probably had good intentions back in the early 1990s when they first started collecting Fees In Lieu of Mitigation [FILM]; however, they forgot to take into consideration the need for a plan to address the maintainenance and updating of information. According to an article in today's Observer Dispatch,
Unused developer fees spur other problems, it would appear that oversight was/is sorely lacking!
By law, government is charged with protecting the "public safety, health or general welfare" of its citizens. But when it comes to development, what if in doing so, it necessitates spending more money than the town has available to spend through the budget process? Should the town raise your property tax to mitigate the impact of development; should the developer pay for that impact through signed agreements and the collection of FILM; or should the development be halted until such a time as the town can afford to mitigate the adverse effects of new development?
In the Town of New Hartford, FILM money has supposedly been collected to mitigate known impacts that have been identified in the Generic Environmental Impact Statements [GEIS] in two (2) specific areas of town; Seneca Turnpike/Commercial Drive and Burrstone/French Road. However, it has now been brought to light that most of the FILM money has been sitting in an interest-bearing account for several years reportedly collecting about $700,000 of interest. The fact that the money has not been used, and in some instances the unused fees were collected almost 20 years ago, makes one question why the money was collected in the first place? Were there no impacts from the development that has occurred in the Town of New Hartford? Hardly...a look at the two GEIS study areas makes it quite apparent that indeed there have been recognizable impacts from the development that has been approved. The
flooding in the Royal Brook Lane section of town is a prime example of impacts that were caused by development on Commercial Drive; yet the town has turned a blind eye on the situation citing the D.E.C. as the roadblock to fixing the problem.
A Tale of Two Towns...a second article in today's Observer Dispatch,
Colonie uses developer fees to spur development, compares the FILM collection plan in the Town of New Hartford to the FILM collection plan in Colonie.
In New Hartford, FILM is collected for mitigation of identified impacts and according to a signed agreement between each developer and the town, it is held for a specified period of time [although the period of time seems to vary for some unknown reason]. The money then seems to sit in an account accruing interest while waiting for the right mitigation project to somehow magically present itself. Apparently, the hope is that the town will have collected enough money to make the necessary improvements when the need arises. Unfortunately, it would appear that according to town officials, the money never seems to be enough to cover the costs associated with the needed mitigation...probably because as each year goes by, the cost of those improvements increase...almost reminds us of "a dog chasing it's tail".
On the other hand, in Colonie, the FILM is actually viewed as seed money to pay for studies so that when Federal and State grants are available, they are ready to go, thus putting their projects in a better position to get those monies. They actually SPEND the money and make the improvements necessary to reduce the impact of the development in their town and paving the way for further development. Colonie also makes it clear from the onset that the FILM is not returned to the developer.
The difference? Colonie has a plan and once the plan was implemented, it has been continually updated and maintained on a regular basis. Colonie probably doesn't have to worry about what to do with interest because they are not letting the money sit around. New Hartford has no plan to aggressively look for ways to leverage the money they collect. In fact, New Hartford doesn't even have a plan for keeping track of the signed contracts, or an accounting method for determining when the money needs to be returned in accordance with the signed agreements.
According to
an article by Kelly L. Munkwitz in the Albany Law Review - December 22, 1997 in reference to whether or not the State Environmental Review Act [SEQRA] authorizes the collection of FILM:
Although neither the statute, its regulations or the legislative history specifically discusses mitigation fees, the Department of Environmental Conservation (DEC) has recognized that "compensation or off-site mitigation should be considered [but] only after all other reasonable methods of avoiding or reducing an impact have been considered."
Munkwitz went on further to discuss the Town of Ramapo where they indeed found another reasonable method [that was upheld by the courts] to reduce the impacts of development:
In Ramapo, the Court upheld a local ordinance that denied development until capital improvements to support that development could be made. The town had developed a comprehensive master plan that addressed existing and projected land uses and included projected housing needs and population trends. Pursuant to the plan, the town "adopted a capital program which provide[d] for the location and sequence of additional capital improvements" over an eighteen year period. Based on the master plan and capital improvement program, the town enacted a zoning ordinance under which the applicant of a proposed subdivision permit would have to show the presence of "essential facilities or services," including adequate roads, public parks, and public sewer facilities, in order to obtain subdivision approval.
Munkwitz concludes her article by saying:
Despite their differences, mitigation fees are almost identical to impact fees in application. Both are "welcome neighbor" fees assessed to ensure that new development pays its own way. The controversy over imposing fees on new development, where such expenses have traditionally been paid by the state or localities, should be decided by the legislature. Due to the conflicts surrounding such fees, and because the legislative intent of SEQRA may be better served by striking down mitigation fees, New York courts are unlikely to uphold them without clear authority from the Legislature. This is especially likely as the Court of Appeals has already provided an alternative in Ramapo.
A lot of controversy surrounds the collection of FILM money...is it legal or is it extortion? As Munkwitz states, whether collecting FILM is legal or not will probably eventually be settled in the courts. However, in the meantime, if the Town of New Hartford opts to continue collecting these fees, the town board needs to make sure that they figure out how to effectively manage the FILM program and account for the money they are collecting from developers. More importantly, the management of this program needs to be addressed
before the town board adopts the GEIS for the Southern Area of Town which will allow for further expansion of the area(s)where FILM money will be collected from developers
and private homeowners. Otherwise, perhaps the town would be better served to follow the lead of the Town of Ramapo.
One last thought. Supervisor Earle Reed is quoted in the Observer Dispatch as saying:
“It goes back 17 years, some of this,” he said. “I think we should be applauded that we are at least trying to get to the bottom of things.”
Supervisor Reed is correct, the problem does go back over several administrations. However, it is documented in town board minutes that Supervisor Reed visited the Town of Colonie within the first few months of his administration to discuss the handling of FILM. However, even after his visit to Colonie, Supervisor Reed [and the rest of the town board] did nothing to address the lack of procedure and accounting for FILM until he was pushed up against the wall. Supervisor Reed, we will opt to hold our applause!