Costs of Development & Business in Indianapolis on the Rise

Business owners and operators may see changes in their zoning-related filing fees, permit and licensing fees, and landscape regulations in the first quarter of 2010. Each of these issues is described in the subcategories of this alert, with links to relevant ordinances and documentation to make sure you are prepared for these pending changes.

Zoning Related Filing Fee Increases - effective January 1, 2010

The Department of Metropolitan Development has proposed a sweeping revision to the fee schedule for rezoning, variance, approval, modification and plat petitions. The Metropolitan Development Commission has already approved its fee increases. As of this writing, the Metropolitan Board of Zoning Appeals is in the process of voting (the vote is spread out over a three week period to cover the three separate Divisions of the Board). Some changes of particular note: (i) New base fees for rezoning petitions are roughly double or triple the prior fees, but the per unit rate is being reduced. The breakeven point for most rezoning petitions is at about 20 acres. As a result, small petitions will see a sizeable increase, while rezoning petitions over 20 acres in size may actually see a fee reduction. (ii) The automatic 50% fee reduction for charitable / not-for-profit 501(c)(3) organizations is being eliminated. The result will be that many small churches and schools who need rezoning approval will see up to a six fold increase in fees.

Permit and License Fee Increases - effective April 1, 2010

As part of the formation of the Department of Code Enforcement, the entire permit and licensing fee structure was reviewed in 2009. A new fee structure was developed in an effort shift the cost of services from taxpayers' subsidies to user fees. Typical business license fees will go from a range of $0 - $200 to $68 - $823.

Tree Canopy Coverage Ordinance - to be introduced for consideration in January, 2010

The Department of Metropolitan Development is proposing a change to the landscape regulations for Marion County, which will, among other things, require: (i) a percentage of tree canopy coverage requirement per lot in addition to other required landscaping; (ii) the installation of street trees in all subdivisions; (iii) interior parking lot trees in all commercial or industrial parking lots of 10 or more spaces (currently only commercial lots over 100 spaces require interior parking lot trees) and all parking spaces must be within 30 feet of the trunk of a tree; and, (iv) permits for the removal of trees in designated woodlands as well as tree mitigation plans.