Road Improvement Impact Fee Ordinance and Smart Growth Criteria
Kane County
To encourage smart growth, Kane County has reduced or removed impact fees on new developments that are designed to reduce the use of automobiles.
Background
Kane County set a goal to encourage smart growth to support and preserve quality of life. To do that, the county adopted Smart Growth Criteria (SGC) in 2007 and amended their Impact Fee Discount Program, created in 2004, to support the goals of the new SGC. The 2007 Smart Growth Discount Program was then included in the 2012 Road Improvement Impact Fee Ordinance as part of Kane County’s Comprehensive Road Improvement Plan (CRIP). The intent of the discount program is to encourage new development to meet the county’s SGC, which is aimed at reducing road trips and, therefore, the need for new road construction and repairs.
How It Works
The Impact Fee Discount Program is inspired by Kane County’s Smart Growth Criteria, which includes a preference for:
- Mixed land uses
- Compact building design
- A range of housing opportunities and choices
- Walkable neighborhoods
- Distinctive, attractive communities with a strong sense of place
- Preservation of open space, farmland, natural beauty and critical environmental areas
- Development directed toward existing communities
- A variety of transportation choices
- Predictable, fair and cost-effective development decisions
- Community and stakeholder collaboration in development decisions
- Industrial infill and redevelopment
Road impact fees, which are required to be paid by the developers of every new housing development, can fund the construction of infrastructure that needs to be expanded due to new development. Developments that include trip reduction measures – building mixed-use developments, developing in close proximity to public transit or incorporating density and walkability – reduce strains on infrastructure. The Kane County Impact Fee Discount Program acknowledges that land use decisions impact the need for transportation infrastructure. The program offers up to a 70% discount for developers who include these trip-reduction measures in their developments.
An affordable housing exemption to the road impact fee ordinance aims to attract new affordable and mixed-income developments. For each affordable home built (or a designated percentage of the homes in a multifamily housing development), the developer is exempt from paying the Road Improvement Impact Fee that would have been assessed for a comparable market-rate unit. The County Engineer establishes procedures to ensure that rental housing developments qualifying for this exemption continue to meet the minimum affordability requirements for the Illinois Housing Development Authority for a period of ten years. If a rental housing development fails to meet the affordability requirement in any year, the impact fee that would otherwise have been due shall be paid in full by the owner of record.
Goal
To promote orderly development that includes affordable housing, trip reduction measures, and other sensible growth goals.
Target
Developers, planners and the community of Kane County.
Success
By holding hearings open to the public, meeting with municipal officials and conducting countywide outreach, Kane County was able to generate support for the impact fee ordinance and its discount program. The discount program makes the connection between land use and transportation needs by acknowledging that appropriate development can decrease trip generation and ease the burden on road infrastructure.
Lessons Learned
Despite initial apprehension and concern about its application in the county’s faster growing communities, the ordinance has been positively received, particularly the potential discounts for meeting smart growth goals.
Road impact fees are assessed based on the proposed building’s predominant use. Fees can be reduced or waived for developments meeting the sensible growth features, but there are no penalties for not meeting these goals. All new developments must pay the impact fee unless they are eligible for a discount. The ordinance was last updated in 2022, and fees will be assessed again in 2027.
There are many options of discounts to impact fees including up to 10% when near transit, 10% for mixed-use development, 10%-30% for development density, 20% for downtown, 10% for redevelopment or infill. Additionally, new industrial development is eligible for a 10-20% discount for jobs created.
A prime example that highlights the success of the impact fee discount program is the Prairie Centre development in St. Charles. This mixed-use community was built on the site of a former mall and has been transformed into a combination of residential housing, affordable senior living, and commercial properties. The developer benefited from both demolition credits and mixed-use development discounts, demonstrating how the program can effectively support redevelopment and community revitalization.
Public Involvement
The Road Improvement Impact Fee Ordinance went through the standard public review and comment period process required by the enabling state legislation, which included public hearings. These hearings focused on land-use assumptions within Kane County to ensure future plans were as efficient and effective as possible. County staff met individually with many municipalities to discuss the program, and the County established an Impact Fee Advisory Committee to determine land use assumptions and development of the CRIP. This committee continues to monitor and evaluate the CRIP and fee implementation, make annual progress reports and advise any necessary updates.
Contact Information
Kane County Division of Transportation, www.kdot.kanecountyil.gov
This case study was last updated in November 2025.
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