ROGERSVILLE, Mo -- The City of Rogersville is thinking outside the box to try to attract home construction. Aldermen unanimously voted Monday to temporarily reduce impact fees on new homes built in the area.
The fees will be reduced by 75% in Rogersville. That includes CID districts. Aldermen also decided to eliminate an $800 fee in another special district in the area.
The reduction will last until August 31, 2012.
In the last year, only a handful of new homes have popped up. With numerous open lots in area subdivisions, city officials hope a discount for building new homes will help start a new housing boom.
"We need more growth. We need more businesses," said Mayor Jack Cole.
To do that, Rogersville aldermen planned to decide Monday night whether to waive impact fees for builders of new homes.
"Building 100 new homes creates roughly 284 jobs and $16 million for the economy," said Matt Bailey, president of the Home Builders Association of Greater Springfield.
The HBA supports the city's move. They know all too well how lackluster new home construction continues to be.
According to the HBA, the number of new homes being built right now is only 17 percent of what those numbers were back in 2004.
"That alone tells you all you need to know," Bailey said.
"We only had roughly five houses built in the last fiscal year in the city," said Cole.
While the city loses revenue from the impact fees, Cole says that lost money will be made up in new property taxes and sales taxes from new residents.
"We've got the infrastructure ready to grow, and we need to see some growth," he said.
If the proposal does truly spurs growth, the HBA hopes the idea spreads to other communities.
"Rogersville is the starting point. They are the ones that have started this. Hopefully different communities in the outlying areas who have impact fees will look at this," said Bailey.
"The reality is, nothing is happening. We have to think out of the box," Cole said. "If it's not working as is, what do we have to change to make it work?"
