County Commissioners will consider a bill on November 18th during a public hearing, that would reduce costs for builders of multifamily housing in an effort to encourage development of needed housing in the community. During their regular commission meeting today commissioners heard a presentation from building official Marie Henson about that ordinance that would change the water right dedication requirement from 1.12 acre feet to .56 on unit density, as well as reduce the water connection fees based on unit density.
“This code revision has been a long time in the making,” said Henson, “the changes are extensive.” She said one of main focuses of the commission and the county staff has been to find ways to encourage housing growth to alleviate the current shortage. The major parts of this code change is a step in that direction. Along with staff holding discussion with builders and developers, a review of Churchill County housing construction fees and those of surrounding communities was undertaken.
One of the stumbling blocks for the construction of multi-family housing in the community has been the cost per apartment unit along with the amount of water right that are required to be dedicated per unit. Codes currently requires that each apartment be assessed $7,200, the same water connection fee as a single- family dwelling. The code also requires a dedication of 1.12-acre feet of water per unit, again, the same as a single-family dwelling.
Typically, a single-family dwelling will have a much larger water use than an apartment due to a larger square footage, that houses more people, more bathrooms, and in addition, outdoor landscape. In order to compensate for the different use in an apartment, it was determined a different way of assessing connection fees was needed.
The water connection fee has been revised to assess a fee of $5,400 per unit, recognizing a smaller water usage, but recognizes the operation and maintenance for the larger number of meters and connections.
In reviewing the water right dedication requirements with the state water engineer and other communities, it was determined that a dedication of .56 acre-foot per apartment was approved, due to lesser amount of water.
Wastewater connection fees were also amended, changing from $6,500 per each apartment to being based upon the amount of water use per building.
Bus Scharmann said he supports the idea of these revisions, saying they are “long overdue and something that developers have been looking for, for some guidelines, so I think this is a good move.”
“As it relates to existing water plant and sewer system,” said County Manager Jim Barbee, “as a developer would show up look at putting multi-family complex in place, generally speaking it was a cost of about $18,000 an apartment. This is basically going to reduce us to around $10,000 a unit for that developer to put together the apartment complex.” He said one developer looked at the difference for one project and with these changes it would save $1.5 million.
He said this is a significant reduction that should make the community more competitive with surrounding areas. “As we look at creating multifamily housing and reducing some of the pressures we have in the community on the rental side of things and how that impacts trying to keep folks in our community who are working in our community.”
Olsen said he recently met with Bruce Breslow who is the economic development consultant hired by the city and the county and feels that this gives him the tools to “really go out and actively get some builders into our community.”
Olsen said that Breslow reported to the CEDA Business Council the Navy has 1,400 jobs coming to Fallon in the next three years, along with an ancillary company that will bring 60-80 employees.
Additionally, after talking with Bob Getto this week, Olsen reported there are 67 homes for sale in the community and only nine of them do not have offers on them. “There just is no housing in our community and it is the most critical challenge that we have in front of us.”
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