Agenda - 05-04-1992 (2) - Laserfiche WebLink

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sk ,,f, -5y9A ?EL h,� h M1 I •s C NON r�Aµ�`�ti TOWN OF CHAPEL HILL 306 NORTH COLUMBIA STREET CHAPEL DILL, NORTH CAROLINA 27$16 OFFICE. OF THE MAYOR (919) 968 -271.1 May 4, 1992 FAX 919 -%7 -8406 Mr. Moses Carey, Chairman Orange County Board of Commissioners Post Office Box 8181 Hillsborough, N.C. 27278 Dear Chairman Carey: The Town Council and I have several concerns about the County's proposed system of school impact fees. I am writing to convey the main comments and issues which were raised in our discussion at the Council Meeting on April 27, 1992. First, thank you for having your Planning Director, Marvin Collins, come to our Council meeting to brief us. His presentation and answers to our questions were helpful. We very much appreciate the opportunity to comment on the proposal. There are several areas of concern that were raised: IT act on Affordability of Housing: All of us are concerned about the extra cost that this fee system would add to the price of a home, and the problems this could create for low and moderate - income families who are trying to purchase a home. We understand that the fee could be set as high as $3,300 for a single - family house; a fee at this level could tip the balance making an otherwise affordable home un- affordable for some families. Several Council members indicated considerable concern about a fee that high. If the school impact fee is adopted, we would strongly encourage the simultaneous adoption of a policy exempting housing developments that involve public assistance. Regressive Nature of a Fee: Several members pointed out that a fee system is a regressive way to raise revenue for school construction -- the Same fee is paid on a $600,000 house and a $60,000 house. There was interest. in pursuing a financing mechanism that would vary with the cost of a dwelling. Process for Setting, Revising Fee Schedule: We understand that this would be a countywide system, with fees being set by the County Board of Commissioners. Several members pointed out a fee system of this nature would have indirect effects in a number of areas related to new development in Chapel Hill, and that it would be desirable for the Town Council to have a role in the setting or revising of a fee schedule applicable in the Town and our surrounding area of planning jurisdiction. The County may wish to discuss this with all of the municipal governing boards.