Builders Want Fees Paid Back High Court Ruling Prompts Lawsuit For Impact Fees
Five contractors are suing the city of Hayden, Idaho, for $73,000 in impact fees they say should be refunded because of last winter’s Idaho Supreme Court decision striking down the fees.
Hallmark Homes, Crescent Homes and Mort Construction of Coeur d’Alene, as well as Shorewood Homes and Viking Construction of Hayden Lake wrote the city this spring asking for the money back. They received no answer, so the companies filed suit in Kootenai County District Court last week, said Forrest R. Goodrum, their attorney.
They are asking for the impact fees, interest and “substantial” attorney fees.
Hayden and Coeur d’Alene started charging the fees on new construction a few years ago to raise money for schools, streets and other services strained by growth. Developer Alan Eborall sued Hayden after paying more than $13,000 in impact fees and won in District Court. Hayden appealed to the Idaho Supreme Court, where the case is pending.
In March, however, the state high court overturned Coeur d’Alene’s right to charge impact fees in a similar suit. Goodrum, attorney for the contractors, represented the winner - the Idaho Building Contractors Association.
The contractors involved in the suit against Hayden believe that decision should be a clear signal to the city that it has to return the money.
Hayden City Administrator Bob Croffoot said it will probably be another 60 days before Hayden decides what to do. It collected $400,000 in fees between 1992 and last February’s ruling in the Coeur d’Alene case. If the Idaho Supreme Court hasn’t ruled on the Hayden case in two months, Hayden will either make a decision to continue waiting or send a letter to contractors who paid fees.
That letter will mimic one Coeur d’Alene issued, telling developers they could get a refund, but also encouraging them to let the city keep the money to deal with growth pains.
One developer, Idaho Forest Industries, told Hayden it could keep the $84,000 in impact fees the company paid on its Woodland Meadows Development. That money has gone toward work on Honeysuckle Avenue.
Croffoot would like to have the rest of the money to install traffic signals and rebuild Fourth Street.
, DataTimes