Building up, not out

The Urban Structure Program is an innovative model for assessing impact fees on new development, and it includes a surcharge levied on new development beyond the central core (5 mile radius).  The further out from the central core, the higher the surcharge. A typical new house located within the core, for example, would incur an impact fee of $5,500. The same house located one mile beyond the core would incur a fee of $10,800.

The model relies on a computer program, updated annually, that calculates the cost of providing city services for a particular development.   One goal of the model is to ensure that outlying developments pay their true public costs. Many city services are more expensive to provide in low-density developments located far from existing service areas. Often residents of the urban care must shoulder a portion of these added costs. Lancaster's model requires these outlying developments to pay their full costs.

The result is a system that discourages sprawl, promotes a more cohesive and orderly development pattern, and supports downtown businesses. Since the model was implemented in 1993, no new development has occurred outside the central core. 

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