Developers building in Millcreek could soon pay dramatically more to connect to water, sewer and stormwater systems, after the Salt Lake City Council gave tentative approval to begin the city's first impact fee overhaul since 1999.

Because Salt Lake City delivers water to much of Millcreek, the proposed hikes would directly hit local projects. Under the plan, a single-family home's total impact fees would jump from $2,790 to $11,870. That's a 325% increase. A five-acre commercial development would see fees rise from $43,158 to $165,105.

The Salt Lake City Council approved the framework the week of Aug. 18, the Salt Lake Tribune reported. The Salt Lake City Department of Public Utilities will now draft legislation, which must return to the council for debate and public hearings before any final vote.

If approved, 70% of the increases would take effect in 2027, with the remainder phasing in by mid-2028. The council chose the staggered timeline out of concern for smaller housing developers with more tentative financing.

"The mantra of impact fees is, growth should pay for growth," Salt Lake City Council Chair Alejandro Puy told the Tribune. "It's not quite there right now, with almost a 30-year lag in an update."

The fee structure would also change how charges are calculated, basing them on actual sewer meter pipe size rather than flat rates. That shift means some project types would pay less. A 200-unit apartment complex on a third of an acre, for example, would see fees drop slightly from $133,426 to $129,321.

What it means for Millcreek

Millcreek's Utility Services Directory lists Salt Lake City Public Utilities as one of several water providers serving the city. Residents can check the city's online map to see which company services their address.

Several active Millcreek developments could face the higher fees if they connect to SLC water. The city's planning applications page lists a hotel and residential mixed-use project at 3232 S. Highland Drive by PEG Development and Encore Development, an 18-unit townhome project at 1265 E. Villa Vista Ave., and a residential mixed-use development at 1312 E. 3300 South.

Development services administrator Kristeen Beitel told the Tribune that developers familiar with other markets seemed more prepared for the news, while those working primarily in Salt Lake City "were reactive to seeing the increases, especially at first."

Even with the proposed increases, Public Utilities Director Laura Briefer said the city's charges would still compare favorably with most other Wasatch Front cities. The detailed, state-required analysis behind the fee hikes has been in the works since 2024.

No public hearing date has been announced. Millcreek residents served by SLC water who want to track local development can attend the Millcreek Planning Commission, which meets the third Wednesday of each month at 5 p.m. at Millcreek City Hall, 1330 E. Chambers Ave.