The cost of building a new home in Burr Ridge will be going up.
Looking to find additional revenue sources, the village is increasing its permit fees for construction of a single-family home for the first time in more than a decade. Village officials estimate the move will generate about $100,000 annually for the village.
The village fee for constructing a single-family home will rise from $8,975 to $12,000.
“When you look at the cost for a new single-family home, when you compare what it costs in Burr Ridge, around $8,900, to Oak Brook, Hinsdale, Willowbrook, Western Springs, we’re way low,” village administrator Steve Stricker told village trustees Monday. “With the fact that we’re in a deficit situation with the budget, I am going to recommend we increase the fees for new homes so that it averages around $12,000, which would still be less than our neighbors.”
Village figures showed that the building fees for single-family homes are $15,894 in Hinsdale, $13,975 in Western Springs, $12,915 in Willowbrook and $11,100 in Oak Brook.
Doug Pollack, community development director, said the fees have not been increased since 2003.
“At that time, we got ourselves into the middle of the pack,” Pollack said. “I think we’ve now fallen to the bottom of the pack.”
Trustee Tony Schiappa agreed.
“I agree with increasing the fees so that we stay in line with the rest of the villages,” Schiappa said.
The fees for constructing commercial buildings also would rise and be contingent on the size of the development. Pollack noted that fees for building commercial structures in the village have not risen since 2007.
Smaller permit fees, such as the $50 charge for constructing fences, would not be increased.
“We don’t want to raise that. We want people to come in and get a permit,” Stricker said. “It is more important for us to know what they are doing as opposed to getting the fee.”
Trustee Guy Franzese agreed with keeping the smaller permit fees as is to ensure that residents continue to get the permits. He said the decision is “assisting residents who want to do the right thing and come in for a permit. We ought to encourage that.”
An ordinance increasing the village’s building fees for new construction will likely be considered at one of the Village Board’s February meetings.
Another budget issue that got attention during a workshop is the existing debt on the police station. The $6 million outstanding on the building will come due later this year when the bond expires.
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The village will look to refinance that debt, but just how much debt the village will be refinancing remains to be seen. The village does have $3 million in equity for the project that draws investment income of $100,000 annually. Should the village draw down on that reserve, the investment income would likewise decline.
Village officials had hoped that by now they would have sold the Pump Center property, 8.5 acres at 11680 German Church Road, for $3 million and the Rustic Acres property, 5.7 acres at 9400 Garfield Ave., for $1.5 million. Proceeds of both land sales are targeted for paying down the debt on the police station.
Stricker said the price tag and R-2A zoning, requiring 40,000-square-foot lots, are keeping the Pump Center property from being sold. He said he talked with a developer who had interest in the property, but when the developer heard about the zoning backed off saying he would have to create “million-dollar lots.”
“It is not forgotten,” Stricker said of the Pump Center land. “It is sitting there.”
Determining how much of the police station debt to pay down and how much to refinance will be a challenge for the next Village Board, seated in April.
“It will be a tough decision,” said Franzese, the only trustee running for re-election this April.
Kevin Beese is a freelance reporter for Pioneer Press