Tomball City Council members debated the possibility of waiving impact fees for new businesses looking to open up in the downtown area at a Jan. 21 meeting. While no ordinance has been written yet, council members considered the effects of instituting a 24-month period where sewer and water impact fees are waived.

Sewer and water impact fees are paid to the city to account for the impact a new development is expected to have on water and sewer systems. By waiving them, council members hope to attract more businesses to downtown Tomball.

"I think we need to do something to help development in certain areas of town," said councilman Mark Stoll. "To what extent, we have to decide."

The amount a business is typically required to pay in impact fees depends on a number of factors, including its size and how much water it uses. For example, Stripes LLC—which opened a convenience store and gas station last year on Main Street—paid $22,864.64 in impact fees.

A business that uses more water, such as a restaurant or salon, would generally pay a higher fee than a retail store. A new restaurant moving into a building that formerly housed a restaurant would pay little to no money in impact fees because the overall impact on the system would be minimal.

Councilman Derek Townsend Sr. said high impact fees are a disincentive to smaller business owners who cannot afford them. He argued that, if given the chance, these businesses could thrive and bring more money into the city in the long run through sales tax revenues.

"People who are trying to start businesses—the small mom and pop places—would benefit from having those extra thousand dollars to invest in making their business look better," he said.

Councilman Field Hudgins argued in favor of waiving fees on a discretionary basis, where city council decides, case by case, if the fees should be waived.

"I think impact fees get paid, and it's only on a rare occasion where they get out of hand," he said. "Just like anybody else who wants a better deal with the city to do development, they need to bring it to us. If someone comes forth and we think they're bringing enterprise to the city, we can reduce the fee for them."

The ordinance, which is in the process of being written and will be presented to council at its Feb. 4 meeting, would apply to commercial developments only. Initial direction from council indicated that impact fees for all businesses within the Historic Main Street area would be waived for the 24-month period, and that decisions would not be made on a case-by-case basis.

The city temporarily suspended the collection of impact fees for commercial properties in Old Town Tomball on Sept. 17 for a period of 180 days.