Governor Vetos Bill--Good For Oro Valley; Not So Good For Homebuilders

As reported in the July 8 Az Daily Star, Gov. Napolitano vetoed the bill that would have put new restrictions on the ability of communities to collect fees from developers.

The development-fee measure that drew a gubernatorial veto would have barred cities and counties from imposing new charges within 24 months after a development plan or plat was approved. Backers said this is designed to provide predictability for builders.

It also would have made it illegal for counties to assess development fees for schools.

The governor said the purpose of these fees is to "make developers ... assist in paying the public costs of growth."

What is happening, she said, is developers come in every year and try to convince lawmakers to change the way cities calculate, schedule or collect these fees. Napolitano said the state, and maybe even the developers, would be better off with a single, comprehensive fix rather than the "piecemeal basis as we have in the past."