Orange County NC Website
Fees charged developers for new projects, city received in the two years before im- <br /> city spending of the funds,ind matching plementing the impact fees. <br /> grants generated those outl ''A April,-;by ��. P Still, tl;�tees have generated far less <br /> 95: <br /> 1993.to March 19 <br /> .y 1 ..„ than the$9 illion a year the city origi <br /> _ nally estimated it ould receive.One rea- <br /> �• son is the large n ber of exemptions 26 <br /> Cesh ESesS-$2.9 milhon� �, ., ;, .: that have been gran —$7.3 million so ' <br /> Vefii irriprovementsi$2.9 rttiflio far.Exemptions are ma for builders of ;R <br /> .. � ©� \public schools, low-incom hou ing and <br /> Trai3""" Zii3i1: $1.4mfilioti.:<;~ t'�. projects in underdeveloped eas. <br /> Parks:', 4,299:�'��'0"` ' And not everyone is ill favo f impact <br /> "'°'"� "" 71 fees Because of the edmplicate fee for- <br /> = mull , some devel6pers complain about <br /> Titiiiiisjioftati i_$9.9 million_ ":nx huge dMounts of paperwork. <br /> "Th�(e's so much effort and time and <br /> 5oiiiCaiAflartbtfureau Planning :'° ' ::}±r bookkeepltlg required that sometimes <br /> ` \\ you w6nde if it's not better to go out and <br /> .value of the money, uS g it to attract build the roa "instead of paying a fee to <br /> matching federal grants or road con- '6uild it, says eorge Barry, senior vice <br /> struction and park renovati s. president of Co sins Properties Inc., a <br /> The fees,Mr.Eplan says, avg been commercial and r idential builder in At- <br /> major way for us to do t rigs we At- <br /> lanta. <br /> uldn't have done otherwise. But some develop applaud the im- <br /> Those are encouraging,words r a pact-fee system for othe reasons.Under <br /> gro ing number of officials through ut the old•system, some d elopers com- <br /> the utheast.who are considering sim plained that local governor ts-aren't <br /> lar 1,jr in their municipalities. demanding equal paymQnr rom all <br /> The levy ,cald impact fees,are used to uilders.The local officials mere asked <br /> pay for r ds, parks, libraries, schools, f whatever exactiofis seemed appropri- <br /> sewers, p" lic-safety programs and ate. ome developers had to make major <br /> other such thi that growing communi contrr tions, while others—sm r <br /> -ties demand. ones in fticular—made none. <br /> Atlanta;as on f the first municipal- So, in 0, the Georgia gislature <br /> ities in the Southea i to charge impact outlawed the Id method..Local govern- <br /> fees, but now such f are becoming . rnents had to elop.a'more equitable <br /> "the strategy for col ting funds method of paymen �forgo payment at <br /> among local governments, ays Marty all. Municipaliti s e an deciding t - <br /> Leitrim a Kansas City,Mo.,l yef who pose impact s. "Now every d Loper <br /> is helping Beaufort County, S.C:, create is on a le playing field,"dar Barry <br /> an im act fe a Finkels rn, spokesman for t de- <br /> Chatham and Orange counties ft velop John Wieland Homes. <br /> North Carolina recently received legisla ossi� y61 the biggest losers are con-- <br /> tive approval to implement the fees to sumers,who are finding the fees passed <br /> help build new schools. In Georgia, the on to them.At Wieland, Mr. Finkelstein <br /> city of Fayetteville, located just south of says,impact fees have raised the cost of <br /> Atlanta, implemented impact fees two building a luxury home by as much as <br /> weeks ago. $3,000,which the company tacks on to the <br /> And in Tennessee, six counties are price. Ultimately, newcomers, rather <br /> considering the idea.Among them is Wil- than existing residents, end up funding <br /> son County,where County Executive Val most of the cost. Similarly, commercial <br /> Kelley has proposed charging home tenants in new buildings are likely to find <br /> builders 98 cents for every square foot <br /> they build. The county needs about $62 the impact fees reflected in higher rents. <br /> f million for projects ranging from a new Even so, the impact fees haven't <br /> landfill to new roads. stalled growth,as Mr.Eplan—and many <br /> "We could take [the debtl and load it developers—originally feared. Atlanta <br /> onto the existing property owners," by last year issued permits for a record $1 <br /> raising property taxes,says Mr. Kelley. billion in new construction, a 25916 in- <br /> "But that's not fair. All we're saying is, crease over the amount for each of the <br /> let the growth pay its way." He also previous two years. And this year, ac- <br /> wants to use the cash to obtain matching cording to the city's planning depart- <br /> federal grants,as Atlanta does. ment,the city expects to issue permits for <br /> Almost exactly half of the$5.8 million about$800 million. <br /> Atlanta reaped within the past two years Though last year's increase may be a <br /> was in cash. The other half was in the temporary surge sparked by the <br /> form of improvements, such as road re- Olympics, Mr. Eplan's enthusiasm for <br /> pairs and school construction,that devel- impact fees remains undiminished. The <br /> opers made to public areas. Before the fees, he says, "have gone way beyond <br /> implementation of the iqipact fees, At- their monettary value." <br />