News from the Knoff Group

The City of Bozeman has decided to allow developers to ‘defer’ their payment of impact fees until the Certificate of Occupancy is granted – this allows builders to not have to ‘up front’ the cost of the fees at the start of construction, instead allowing them to be paid when the construction is completed.  Strangely enough the impact fees went UP again in March 2013.  Guess we’ll see how this all balances out.

by Amanda Ricker – Bozeman Daily Chronicle. April 2, 2013

Hoping to spur more construction, the city of Bozeman will allow developers to delay paying their street impact fees.The Bozeman City Commission voted unanimously Monday night to adopt a resolution allowing the fees to be paid later in the building process, when a structure is ready to be occupied rather than when construction begins.“It should be encouraging for businesses because having that up-front money is difficult,” Commissioner Chris Mehl said.Impact fees are charged on new development to pay for growth. The city charges impact fees for streets, fire, water and sewer. Street impact fees are the most expensive of the city’s four fees, often reaching six figures for large projects.Bozeman’s new impact fee deferral program allows developers to pay street impact fees when a certificate of occupancy is issued, recognition by the city that the building is ready for use. Now, the fees are paid when a building permit is issued.The program requires a $50 application fee, a lien against the property to ensure the fees are paid and a penalty of $1,000 if the fees aren’t paid on time, among other stipulations. The city would also charge interest and legal fees on unpaid fees and builders with records of foreclosure or bankruptcy may not be eligible.The program takes effect immediately.

via Bozeman builders will be allowed to defer impact fees – The Bozeman Daily Chronicle: City.