Title
Ordinance - Text Amendment - Land Development Code Section 5-112.H. Impact Fees
History
On January 6, 2025, the Board of Trustees adopted Ordinance No. 5971, amending Ordinance No. 2084, revising and updating Development and Subdivision Exactions; Dedication of Land and Fees in Lieu of Dedication. The amendment included a requirement for the Village to enter into Intergovernmental Agreements (IGAs) with other taxing bodies prior to the collection and distribution of impact fees.
Following the 2025 amendments, the Village, in consultation with the other taxing bodies, has determined that additional amendments are needed to the Land Development Code in order to adequately address the impact of residential development. Although the taxing bodies and Village continue to be in communication regarding the content of the IGAs and the additional updates to the impact fee regulations, new residential development continues to move forward and fees are required to be collected prior to the issuance of building permits.
The premise behind these regulations is to ensure land and fees that are attributable and proportionate to growth-related development within the Village, are provided to serve new residential development. The following impacted use categories are included in the proposed ordinance:
- Parks
- Schools
- Library
The proposed text amendment essentially returns to the pre-January 2025 ordinance adoption, with the exception of making the previously-applied transportation exactions section intentionally left blank, as the return on investment to prepare the research and reporting to support the exaction is now outweighed by the proceeds it produces. This proposed return to pre-January 2025 regulations may be an interim measure.
Action on this item will allow appropriate impact fees and other development and subdivision exactions to be imposed while the Village has adequate time to work with stakeholders and other taxing bodies to develop amendments and necessary intergovernmental agreements that ensure that the impact of new development on all parties is adequately and fairly addressed. As the updated impact fee regulations cannot reasonably or effectively be implemented without the IGAs and additional studies and financial information from the other taxing bodies, the Plan Commission supports reverting back to the impact fee ordinance and calculation structure in place prior to the 2025 amendment as an interim measure to allow these fees to continue to be collected during the negotiation and preparation of the amendments and IGAs.
While there is no mandatory requirement to collect impact fees, the Village is obliged to adhere to specific state laws if such fees are collected.
In response to Plan Commissioners’ questions, the reasoning behind the January 2025 impact fee ordinance was to require IGAs and for the taxing bodies to provide their planned capital costs over the next 5-10 years to assist with calculating the impact fee amounts; to keep the fee amounts approximately the same while adjusting with the cost of land; and to keep the spirit and intent of the impact fees to sufficiently cover the first-year impacts of the development before the property taxes are collected to contribute to the development's impacts going forward.
The Plan Commission recommended approval of the text amendment as presented, by a vote of 6 ayes, 0 nays, and 1 absent.
Recommended Action
Regarding Case Number 2026-0821, the Plan Commission moved to approve the Staff Recommended Action as presented in the Staff Report to the Plan Commission for this case.
Recommended Action/Motion
I move to approve the Plan Commission Recommended Action regarding Case Number 2026-0821 - Text Amendment - Land Development Code Section 5-112.H. Impact Fees;
AND
I move to adopt Ordinance 6156, entitled: AN ORDINANCE FURTHER AMENDING SECTION 5-112.H OF THE VILLAGE OF ORLAND PARK LAND DEVELOPMENT CODE, ORDINANCE NO. 2084, TO REVISE AND UPDATE DEVELOPMENT AND SUBDIVISION EXACTIONS; DEDICATION OF LAND AND FEES IN LIEU OF DEDICATION.