Police Facility Impact Fee Update 

The City is inviting community input on updates to the Police Facility Impact Fee.  The City of Reno is currently reviewing the police impact fee amounts and timelines authorized to collect those fees to determine if the amount being charged is keeping up with the timeline in which they have to be collected.   

Development of the new Reno Police Department Public Safety Center began in 2020 and construction was completed in 2024.  The total cost of the new police station was approximately $75 million and was funded through a number of different sources including grants, bonds, taxes, ARPA dollars and impact fees.  Out of the total cost of the police station, up to $13 million can be collected through impact fees.  Impact fees are only collected at the time of a new building permit and are paid for through new growth.  This means existing development does NOT pay the impact fee, only new development pays impact fees at the time of a new building permit.  State law regulates how the impact fees are created and collected and requires local jurisdictions to review the fee amounts and timelines for collecting the fees on a regular basis.  This year’s review of the fees is in accordance with the NRS review requirements. 

Virtual Meetings 

Virtual meetings to describe the proposed options to increase the Police Facility Impact Fees and elicit feedback from the community were held at the dates and times listed below. 

• Wednesday, October 15th at noon - view the meeting recording (linked)
• Thursday, October 16th at 9 a.m. - view the meeting recording (linked)
• Tuesday, October 21st at 4 p.m. - meeting was cancelled as there were no attendees

The public is also encouraged to provide written comments and respond to a community survey: 

• Policy Impact Fee Survey

Additional questions can be sent to Angela Fuss at FussA@Reno.gov. 

Next Steps

City staff will gather feedback during the public input process involving both the public and the development community. This will include sharing detailed fee information and gathering feedback on preferred alternatives. These alternatives may involve increasing fee amounts and/or extending the timeline for the impact fee collection beyond the current ten-year limit. All feedback will be compiled and presented to the City Council during a future meeting, where Council will provide direction on the preferred fee alternative to pursue.  

Following Council’s direction, staff will proceed with the Business Impact Statement process, culminating in a final round of review and approval by both the Capital Improvements Advisory Committee and the City Council. 

Additional Background

The impact fee is collected from new development projects at the time a building permit is issued. These fees contribute directly to funding the construction of the new Public Safety Center.  Under NRS 278B, municipalities are required to review the impact fees at least every three years. The most recent review occurred in 2023, with no changes made to the existing fee schedule. 

The total estimated cost to build the police station was $75 million, with approximately 18% or $13 million, to be funded through impact fees. To ensure adequate revenue is being generated, the fee structure must be reviewed at least once every three years.  If not enough funding is being collected, the fee amount can be increased.  

The impact fees are assessed based on the type and size of development.  A sampling of the existing impact fees is provided below:  

• Single-family home: $125 
• Apartment unit: $100 
• Industrial warehouse: $29 per 1,000 sq. ft. of gross floor area 
• Restaurant: $182 per 1,000 sq. ft. of gross floor area 
• Office: $255 per 1,000 sq. ft. of gross floor area 

During the initial years of the police impact fee collection, particularly during the COVID pandemic, large-scale developments such as student housing and industrial facilities generated significant revenue, with annual collections nearing $500,000. However, over the past three years, impact fees have steadily declined.  The decline is due to both a decrease in the number of building permits and the prevalence of smaller-scale projects, which generate less fees.  

(Chart details by Fiscal Year (FY): FY 19/20: $3,875 collected, FY 20/21: $494,816.75 collected, FY 21/22: $554,425.05 collected, FY 22/23: $429,682.69, FY 23/24: $341,408.90, FY /225: $268,874.01 collected.)

The original impact fee ordinance from 2020 included a ten-year sunset provision, anticipating that the full $13 million would be collected within that timeframe. To date, over $2 million has been collected, leaving more than $10 million to be raised in the remaining five years.  It should be noted that once the total $13 million amount is collected, the impact fee automatically goes away. 

To address this funding gap, the City is currently reviewing four alternatives and seeking public input. These options include both raising the impact fee amounts and extending the timeline for which the impact fees can be collected, beyond the current ten-year limit. The information below describes the options and sample impact fees by categorized use type:

Residential:

Commercial/Retail:

Office and Other Services:

Industrial