A Development impact fee is paid by new development to the local government to fund infrastructure and public facilities needed to accommodate new development. As a community adds new residents and employees, those new residents and employees place demands on infrastructure and facilities, such as roads, sewer systems, police and fire stations, and of course, parks and recreation facilities. Development impact fees are a way for the local government to require new development projects to pay for the new infrastructure and public facilities that new residents and employees need.