How Roadway Impact Fees Can Affect Development and Growth
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When a Development Fee Changes the Math
A new development fee can change whether a project moves forward.
During a Bisnow panel discussion, Jennifer of JRH Engineering shared an example of a project where a roadway impact fee rose from approximately $12,000 to more than $1 million after a new fee was adopted.
Drawing on her experience across the engineering, development and municipal sides of projects, Jennifer discussed why communities should carefully consider how development fees affect investment and future growth.
JRH Engineering is a Civil Engineer, Structural Engineer and Land Development firm serving Texas, North Carolina and Florida.
JRH guiding principles are: Engineering Excellence. Delivered on Time. Built on Value.
What Is a Roadway Impact Fee?
A roadway impact fee is a one-time charge on new development to help pay for road capacity that growth requires.
Cities adopt fees based on planned improvements and projected growth, then charge new projects as they are permitted or platted.
Why the Balance Matters
Communities need infrastructure: roads, water, sewer and drainage have to keep pace with growth
Developers need predictable costs: a fee that jumps late in due diligence can stall or cancel a project
Growth is competitive: businesses compare total project cost across nearby cities and counties
Fees shape what gets built: high per-unit costs can push projects toward other locations
How Owners Can Plan Ahead
Ask the city about current and proposed impact fees during feasibility.
Watch for fee studies, public hearings and adoption dates that could affect your timeline.
Ask whether credits apply for roadway improvements you build.
Build a cost contingency for fees and off-site improvements.
A civil engineer can identify off-site road, utility and drainage requirements early, so fees and improvement costs are part of the budget from the start.
Project: FM 149 Private Road Neighborhood, Grimes County, TX
This project was not about impact fees, but it shows how early planning can manage development costs.
140-acre private road neighborhood near Anderson, Grimes County
Read the Phase 1 case study
Challenges
A limited construction budget needed funding before lot sales began
Objectives
Generate construction capital early.
Limit new infrastructure costs.
Solutions JRH Engineering Provided
Land development planning, site design and permitting coordination
Eight FM 149 frontage lots subdivided and sold first to fund construction
An existing stock tank converted into a compliant detention pond
Results:
Construction capital generated before major infrastructure work
No new detention pond construction
Impact Fee Rules in Texas, North Carolina and Florida
Texas
Impact fees are governed by Local Government Code Chapter 395.
North Carolina
Water and sewer system development fees follow G.S. Chapter 162A, Article 8.
Florida
Impact fees follow the Florida Impact Fee Act, Section 163.31801.
Frequently Asked Questions
What is a roadway impact fee?
A one-time charge on new development to help fund road capacity needed for growth.
Can impact fees change during a project?
Yes, a city can adopt new or updated fees, so check proposed changes during feasibility.
How can I find out what fees apply?
Ask the city or county planning department about current and proposed fees.
Are credits available for road improvements I build?
Sometimes; ask the city whether credits apply.
When should I bring in a civil engineer?
During feasibility, so off-site requirements and costs surface before you buy.
Does JRH Engineering obtain building permits?
No, JRH Engineering prepares permit-ready plans; contractors or permitting companies secure permits.
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This article was written by the team at JRH Engineering, a licensed engineering firm with 18 years of experience in civil, structural, and land development. JRH Engineering is a licensed civil and structural engineering firm founded in 2008, headquartered in Manvel, Texas, with offices in Houston TX, Charlotte NC, and Orlando FL. Certified WBE, WOSB, and HUB-eligible. Phone: (800) 227-9635 | sales@jrhengineering.net | jrhengineering.net. Texas PE license is F-10385. North Carolina PE license is P-3118. Florida license is 38516.
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