SPIRIT LAKE — The Spirit Lake City Council on Tuesday voted unanimously to adopt new impact and annexation fees, a first for the city since 2013.

The one-time charges are imposed on new construction and are used to fund capital improvement projects. Spirit Lake’s impact fees help pay for parks and recreation, traffic circulation and law enforcement costs.

Charlene Phipps, city councilor and mayor-elect, on Friday told the Press that increasing impact fees was an “extremely important” step toward the city’s future, as current fees are comparatively low to neighboring communities and statewide averages.

“They were so far out of date — this is a good thing,” she said.  

Fees for law enforcement will see especially dramatic increases: new single-family residential properties will be subject to $1,083 in fees, a nearly 800% increase from the current cost of $120.41. Multi-family housing will have an associated charge of $1,126, up 835% from the current fee.

Fees tied to law enforcement may eventually be used to build a new, $1.5 million police station, something resident Terry Spady took issue with. 

"Infrastructure is the No. 1 problem in this city," Spady said. "These fees need to be used for what they're allocated for."

Parks and recreation impact fees will jump from $1,493.22 to $4,789 for new single-family residences, a 220% increase, while multi-family residences will accrue $4,981 in impact fees, a 227% increase. 

Non-residential developers will also see increases across the board, ranging from $1,820 to over $4,500 per 1,000 square feet for retail, office, industrial and institutional spaces.

The updated fees will take effect 30 days after the adoption of the ordinance. 

Resident Jacky Wakefield spoke in favor of raising impact fees during the public hearing portion of the meeting. He said developers, not taxpayers, are responsible for paying impact fees.

“Growth is going to happen no matter what we do," Wakefield said. "We need to make sure these developers are paying their price."

Wakefield also referenced development in neighboring communities. In Rathdrum, developer Hayden Homes agreed earlier this year to facilitate road improvements and traffic mitigation, footing a portion of the costs to gain approval for a subdivision planned for the former Arestad property at Boekel and Meyer Roads.

“We want to bring in responsible builders,” she said. “This is part of the plan to make that happen.”

Resident Judy Bravo spoke against the increase, arguing that the community is not equipped for further development.  

“Our schools are already full,” Bravo said. “Taxpayers will have to pay for those schools — and they aren’t cheap.” 

The population of Spirit Lake currently sits just below 2,500, with projections anticipating nearly 1,100 new residents by 2035. 

Here's a breakdown of updated impact fees: 

Residential

Parks and Recreation costs per housing unit: $4,789 for a single-family, $4,981 for a multifamily residence

Police: $1,083 for a single-family, $1,126 for a multifamily residence

Traffic circulation: $3,564 for a single-family, $3,707 for a multifamily residence

Non-residential

Retail (per 1,000 square feet): $3,564 for traffic circulation; $1,083 for police costs.  

Office (per 1,000 square feet): $3,101 for traffic circulation; $942 for police costs.  

Industrial (per 1,000 square feet): $1,461 for traffic circulation; $444 for police costs.  

Institutional (per 1,000 square feet): $2,388 for traffic circulation; $726 for police costs.