Louisburg, N.C. — Louisburg leaders are using what they are calling capacity fees to help pay for infrastructure to keep up with the town's growth.

As of July 1, people planning to build a home or business in Louisburg will likely pay thousands of dollars that will eventually expand the town's water and wastewater treatment plants.

For example, a person wanting to build a restaurant that would seat 60 people would pay about $36,000 -- or $600 per seat.

"It's a buy-in for new development to offset some of the coast that current residents have put into our infrastructure," Assistant Town Administrator Tony King said.

Although the newcomer fee protects existing customers, some fear it will scare away new growth to the town.

"Everybody is competing for business -- and other towns are offering incentives for businesses to locate in their towns," Rosemary Champion, with the Franklin County Homebuilder's Association, said. "This sends the wrong message."

"I think developers understand it's a cost of doing business and that cities are kind of caught in a tough spot of providing the required utilities that the state of North Carolina requires us and at the quality level they require," King said.

Town managers also stress, if necessary, the capacity fees can be adjusted.