Monday Report - Impact Fees August 27th, 2007

Appeals court approves Whole Foods deal

Economic Notes:

This Weeks Leads



Impact Fees

How do we compare?

What are "Impact Fees"?

  • "Impact Fees" are the charges jurisdictions make for roads, water, wastewater, schools, etc. that are charged to new developments to fund capital improvements needed to serve new growth.
  • The land use impact fees included in this national survey included, single-family detached, multi-family, retail, office and industrial developments.

National Average Fees by Type and Land Use, 2007

Facility Type Single-Family (Unit)Multi- Family (Unit)Retail (1000 sf) Office (1000 sf)Indust. (1000 sf)
Roads$2,867 $1,922$5,150 $3,192$1,936
Water$3,232 $1,619$654$630 $631
Wastewater$2,885 $1,696$671$637 $685
Drainage$1,360 $746$916$723 $904
Parks$2,497 $1,917NANA NA
Library$378 $284NANA NA
Fire$418$316 $368$314$214
Police$355 $270$515$315 $209
General Gov't$1,118$867 $568$534$546
Schools$4,463 $2,430NANA NA

Source: National Impact Fee Survey, August 2007

Note: NA - Parks, Library & School fees are rarely charged to non-residential uses.

Average Utah Fees by Type and Land Use, 2007

Facility Type Single-Family (Unit)Multi- Family (Unit)Retail (1000 sf) Office (1000 sf)Indust. (1000 sf)
Total$6,610 $4,085$3,332 $1,918$1,590
Roads$1,245 $967$2,950$1,317 $970
Water$1,509 $862$243$243 $243
Wastewater$738 $878$183$183 $183
Drainage$670 $434$517$383 $495
Parks$2,119 $1,788$78$49 $31
Library$- $- NANANA
Fire$79$158 $300$265$77
Police$106 $78$171$115 $85
General Gov't$- $--- -
Schools$- $- NANANA

Source: National Impact Fee Survey, August 2007

Note: NA - Parks, Library & School fees are rarely charged to non-residential uses.

Question? If Utah had a School Impact Fee would we be having the same "split the district" and "East vs West" discussion we are having now? The proposed "West Bench" housing development would be providing $1.4B for new school construction.

Next Week: Utah Sample City Fees by Type and Land Use, 2007

Talking with the Receptionist, Pausing When You Speak and Other Secrets of Leadership Success

  • Several years ago, while visiting a regional branch of Lee Hecht Harrison, a global career management services company, then-president Stephen Harrison was stopped short by "Ray," his chief operating officer. "You didn't greet the receptionist," said Ray, who proceeded to show Harrison how to do what he called the "two minute schmooze." Introducing himself, Ray inquired about the receptionist's commute and impressions of the company.
  • Ray explained to Harrison: "A receptionist is a corporate concierge. They will talk to more important people in a day - suppliers, customers, even CEOs - than you will talk to all year."
  • Enron-level scandals are not averted by talking to the receptionist alone, but Harrison, speaking at the recent 11th annual Wharton Leadership Conference, contended that small acts like this are part of what makes for an ethical corporate culture. And culture, not "heavy handed legislation" like the 2002 Sarbanes- Oxley Act, is a key safeguard against moral lapses, he said in his talk.

    Executive Pomposity

  • For Harrison, even the word "ethics" itself seems too abstract; he replaces it with what he sees as a more intuitive, common-sense word: decency.
  • "Decency is not just about being nice," noted Harrison, author of The Manager's Book of Decencies. Rather, it is about creating a "bubble wrap" of good deeds that will protect a company in hard times. "Our willingness to be decent at work cannot depend on whether business is up or whether we're in a bad mood or whether it's raining. Decencies don't amount to anything unless we take the trouble to make them come alive through concrete acts in all kinds of weather."
  • For those at the top, this can mean such actions as being the first to volunteer for ethics training; honoring those with unglamorous jobs, like office cleaning; and listening to people at all levels of the organization. He pointed to the example of Herb Baum, former CEO of Dial, who used to host "Hot Dogs with Herb" on the factory floor, where he invited employees to talk with him about anything on their minds.
  • Being accessible is as important as being humble, said Harrison. "Remember Ed Koch?" The former mayor of New York, in his second year in office, drove from borough to borough, asking people, "How am I doing?" "He went from being well-liked to well- loved." Harrison also recalled meeting up one night with a long-lost college roommate, Ruben Mark, chairman and CEO of Colgate Palmolive. Over a Japanese dinner, Harrison asked him how he explained his success. "He leaned across the table and said, 'That's easy. I make absolutely sure nothing creative or important is ever identified as my idea,'" said Harrison. "Now that's humility."
  • He also counseled executives to avoid the trap of "executive pomposity." He first heard that term in a 1967 speech from the CEO of Technico, who spoke specifically about executive "telephone pomposity." Said Harrison: "I have answered my own phone since then."
  • Being generous with praise and recognition will earn leaders what Harrison calls "psychic income." He gave the example of the chairman and CEO of Campbell Soup who "at the end of every day gathers his people to hear about neat stuff done that day and then handwrites thank-you notes to the people who did it. If you go around Campbell Soup, all over the world, you will find those notes framed."
  • A key test of a leader's sensitivity comes at layoff time. While Western companies, and particularly American companies, have come to accept the reality of the need for layoffs, "what they should not come to terms with is a downsizing episode that is anything but sensitive, well thought out and has preserving personal dignity as the highest priority," Harrison said.
  • Immediately after layoffs take place, for example, a leader should be "very visible and accessible," ready to answer questions, reduce anxieties and even assuage the guilt of those who survive the layoffs. "It takes courage to put your chest out, shoulders back, and be there to deal with this. It's a decency, and people will appreciate it."
  • At the end of the day, said Harrison, the words of poet Maya Angelou ring true: "People will forget what you said, they will even forget what you did, but they will never forget what you made them feel."
  • Source: The Wharton School of the University of Pennsylvania


  • Impact Fees
    • National survey
    • How Much?
    • For What?
  • Economic notes
  • This weeks leads

Bob Springmeyer

Bonneville Research

  • Appeals court approves Whole Foods deal
  • A federal appeals court denied the Federal Trade Commission's request to delay the Whole Foods and Wild Oats merger, saying that the agency raised questions about the deal but didn't prove that the decision to allow the merger should be overturned.

    Source: Wall Street Journal, 2007

  • Economic Notes:
    • International Business Confidence
    • Business sentiment is now as low as it has been since the invasion of Iraq in early 2003, and is close to levels consistent with recession. Confidence is down most in Europe, but has fallen sharply across the globe. Businesses are very worried about sales, and say they are scaling back their hiring and investment plans. Expectations regarding the six-month outlook are holding up better, suggesting that confidence could quickly revive if financial markets soon stabilize. The Federal Reserve has latitude to aggressively ease monetary policy as pricing pressures have vanished.
    • The Conference Board Leading Indicators
    • The Conference Board index of leading indicators rose 0.4% in July, following an unrevised 0.3% decline in June. An increase in consumer expectations and longer delivery times in manufacturing were the main reasons for the sharp rebound in the index. A decline in building permits held back an even bigger advance in July.
    • Jobless Claims
    • Initial jobless claims declined by 2,000 to 322,000, remaining within the range of expectations.
    • MBA Mortgage Applications Survey
    • Mortgage demand decreased 5.5% in the week ending August 17. Purchase applications decreased 5.0% and refinance applications decreased 6.4%. Applications dropped after two weeks of gains. All other indicators of housing activity suggest the bottom in the market has not yet been reached, so that application activity is more about the shifting out of onerous financing than a leading indicator of the overall housing cycle.
    • Chain Store Sales
    • Chain store sales rose 0.2% in the week ending August 18. Year-over-year growth improved to 2.7%. Several factors, including a non-comparable sales tax holiday in Texas, favorable weather, and low gasoline prices, supported sales in the week.
    • Oil and Gas Inventories
    • Crude oil inventories rose by 1.9 million barrels for the week ending August 17, according to the Energy Information Administration, well above expectations of a 2.8 million barrel draw. Gasoline inventories fell dramatically by 5.7 million barrels, dwarfing expectations of a modest draw. Refinery activity inched lower to 91.6% from 91.8% a week earlier. Distillate supplies rose by 1.3 million barrels, above expectations. This report will exert downward pressure on oil prices.
    • Weekly Natural Gas Storage Report
    • Underground storage of natural gas increased by 23 billion cubic feet during the week ending July 17. Underground natural gas inventories currently stand 12.8% above the five-year average. This report is likely to exert slightly bullish pressure on natural gas prices.

    Source: Economy.com

  • This Weeks Leads
    • Hot Topic & Torrid
    • Hot Topic, Inc. trades as Hot Topic at 695 locations nationwide and throughout Puerto Rico.
    • The stores, selling apparel, accessories, gifts and music targeted to teenagers, occupy spaces of 1,500 sq.ft. to 1,800 sq.ft. in lifestyle centers and malls.
    • Plans call for 15 openings throughout the existing markets during the coming 18 months.
    • Typical leases run 10 years with options.
    • The company also trades as Torrid at 134 locations nationwide and throughout Puerto Rico.
    • The stores, selling apparel, lingerie, shoes and accessories targeted to plus-sized women aged 15 to 29, occupy spaces of 2,300 sq.ft. to 2,500 sq.ft. in lifestyle centers and malls.
    • Plans call for 40 openings nationwide during the coming 18 months.
    • Typical leases run 10 years.
      • For more information, contact
      • John Neppl,
      • Hot Topic, Inc.,
      • 180305 East San Jose Avenue,
      • City of Industry, CA.
      • Web site: www.hottopic.com.
    • Cheeburger Cheeburger
    • Cheeburger Cheeburger Restaurants, Inc. trades as Cheeburger Cheeburger at 66 locations throughout AL, AR, CA, CO, FL, GA, MD, MO, NC, NJ, NY, PA, TN, TX and VA.
    • The restaurants occupy spaces of 2,400 sq.ft. to 3,000 sq.ft. in lifestyle, power, specialty and strip centers.
    • Plans call for 30 to 35 openings throughout the existing markets during the coming 18 months.
    • A vanilla shell and specific improvements are required.
    • Preferred cotenants include Panera Bread, Pei Wei and Target.
    • Preferred demographics include a population of 100,000 within five miles.
    • Major competitors include Five Guys Famous Burgers and Fries,
    • Red Robin and
    • Johnny Rockets.
    • For more information,
      • contact Mike Santel,
      • Cheeburger Cheeburger Restaurants, Inc.,
      • 7364 West Rancho Drive,
      • Glendale, AZ 85303;
      • Web site: www.cheeburger.com.

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