When it comes to commercial development, a multitude of issues require careful consideration. From drafting an effective contract or settling a boundary dispute to securing financing; a commercial real estate project can become very complex. In addition, it is crucial for developers to have a comprehensive understanding of various financial obligations, such as impact fees.
Every commercial project is unique, and some generate significant impact fees. Developers must take these fees into account when approaching a project.
An overview of impact fees on commercial development
According to the Utah Department of Commerce, local governments impose impact fees against new developments. These one-time fees generate revenue to cover costs associated with public infrastructure expansions that become necessary as a result of the project. It is vital to keep in mind that the process of determining impact fees can become complicated, and various details can influence the amount of fees incurred due to a new development.
When assessing impact fees, local governments have to abide by set procedures outlined in the Impact Fees Act.
Addressing commercial development setbacks
In addition to potential challenges related to costly impact fees, many other financial hurdles can arise during a commercial real estate project, such as a dispute that results in litigation and other unanticipated legal problems. Commercial real estate developers who find themselves in this position need to have a thorough understanding of their rights and take an individualized approach to the challenges they face in order to secure the most favorable outcome and the success of the project.