Agenda - 05-26-1992 - Laserfiche WebLink

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MAY -26 -1992 15:41 FROM CRAN5E CTY COMM :SSIONERS 70 PLANNING Post -It" brand fax transmittal memo 767t co. i s a. �'� `' XX0 I FIX N TowN OF CMk - OFFICE OF THE MAYOR 306 Nom COLUMBIA STREET CHAPEL HILL, NORTH CAROLINA 27516 May 4, 1992 Mr . Moses Carey, Chairman Orange County Board of Commissioners Post Office Box 8181 Hillsborough, N C . 27278 Dear Chairman Carey: P.21 #o+"M' p� (919)96$-1714 FAX 919.967.8406 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 L con! cern that were raised: Impact on Affordability of Housin¢: 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. I 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. Regre sive Nature of. a Fee.: Several members pointed out that a fee system is a regressive way to raise revenue for school construction -- the game fee is paid on a $6009000 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, Revisin 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 thei 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.