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Annexation rules on hold: Task force will determine fair fees
July 22, 2009

The revision of city's annexation rules will have to wait until September to give planners and developers a chance to hash out a plan that would set the fees to help build firehouses, police stations and other infrastructure on El Paso's fringes.

Written by Gustavo Reveles Acosta , El Paso Times

EL PASO -- The revision of city's annexation rules will have to wait until September to give planners and developers a chance to hash out a plan that would set the fees to help build firehouses, police stations and other infrastructure on El Paso's fringes.

The City Council voted 7-1 to postpone the adoption of new annexation rules and to create a task force, which will help develop a fee structure that both the city and the construction industry could support.

A proposal on Tuesday suggested that developers who want their land added to the city pay an upfront fee for the construction of certain facilities and services, including libraries, streets and lighting.

But most council members said they wanted to study other options that would help the city recuperate the cost of building that kind of infrastructure.

"I have a lot of doubts É a lot of questions on just how we are going to do this," said East-Central city Rep. Emma Acosta. "I am not prepared to make a decision on this yet."

Planners expect to see more than 30,000 new homes built on East Side, West Side and Upper Valley land immediately outside the city limits.

The task force, which will include city staff and developers, will look at different funding mechanisms for the construction of infrastructure on annexed land.

One idea members of the Greater El Paso Chamber of Commerce and some city representatives talked about was creating public improvement districts, which would probably set higher property taxes on newly annexed land.

The additional tax revenue would be used to build the infrastructure. Once all needs were met, the district would be disbanded, and residents there would then pay the same property taxes that established neighborhoods pay.

Eastridge/Mid-Valley city Rep. Steve Ortega said he was encouraged by the ideas presented, especially since they go toward the goal of having new development pay for the expansion of services it requires.

Developer Conrad Conde, who was at the meeting representing the chamber, said construction companies would participate in the task force, but he reinforced the chamber's belief that the current annexation process works.

He cited a 2005 city study that showed property taxes on newly annexed land raise enough money to help pay for services such as parks and public safety.

West-Central city Rep. Susie Byrd, the only council member to vote against postponing the annexation item, disagreed.

"We have added at least 3,000 new homes a year for several years, but we have added not one new police officer to our roster," she said. "If growth is paying for itself, why can't we keep up?"

Byrd said she was satisfied with the annexation plan the city staff presented Tuesday.

The plan calls for voluntary annexation only, and outlined a fee structure that would force developers to pay up front for things such as new streets, recreation centers and traffic signals.

Under the proposed plan, developers that adopted smart-growth principles to build new neighborhoods would get breaks on the fees.

Gustavo Reveles Acosta may be reached at greveles@elpasotimes.com; 546-6133.


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