Fate of Project Jumpstart unclear

 City and business leaders have met to discuss a proposal to suspend development impact fees for a year in an effort to jumpstart the economy, but no one is saying much about the results.

  The meeting was reported to the Yuma City Council during its roundtable Tuesday by City Administrator Mark Watson.

  "We had an informative meeting Friday," Watson reported to the council. "There are a number of challenges we would face with (suspending the fees). I think there are some other options besides a moratorium."

  He did not elaborate on what those options might be, either during the council meeting or afterwards to The Sun.

  The impact fee moratorium was proposed by Ken Rosevear, executive director of the Yuma County Chamber of Commerce, during a news conference Jan. 30.

  Rosevear declined to comment on Friday's meeting, except to reiterate his belief that Project Jumpstart would stimulate the local economy by encouraging new development and expansion of existing businesses.

  At the Jan. 30 news conference, Rosevear said that impact fees can run $5,900 for a home to hundreds of thousands of dollars for a commercial project. Especially during these difficult times, "that can be a deciding factor whether a project is a go or a no-go," he added.

  Other communities are considering such measures, and Flagstaff already has suspended a fee that is similar to Yuma's impact fee, he said. In January, the Quartzsite town council unanimously voted to modify fee schedules and procedures for a year to stimulate development.

  Julie Engel, president and chief executive officer of Greater Yuma Economic Development Corp., also sat in on Friday's meeting.

  "Relief from the fees is critical," she said afterwards. "It could jumpstart some projects."

  She said for her the most exciting thing to come out of the meeting was that the city might revisit an economic development policy to provide incentives for new companies that reach certain thresholds, such as job creation, higher than median wages and capital investment.

  Such a policy was in place when some of Yuma's newest industries located here, including Alside and Johnson Control, but it had sunset, she said.

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Joyce Lobeck can be reached at jlobeck@yumasun.com or 539-6853.