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New Raleigh Council Could Mean Higher Impact Fees


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New Raleigh Council Could Mean Higher Impact Fees
Home Construction, Impact Fees

Mayor Charles Meeker said Raleigh's new City Council could help him double the fees that developers pay to build homes, which would generate money the city could use to deal with growth.

The city raised its impact fees in April 2006 to about $1,200 for each new home. The 72 percent increase was the first change to Raleigh's impact fees since 1988, but it didn't satisfy Meeker.

The mayor said he would like to see the city charge about $2,500 per house, similar to what Cary and Apex charge. A tiered rate structure would charge more for larger houses and less for smaller ones, he said.

"What the new council will look at is trying to have a reasonable fee that spreads the cost of roads and parks to builders as well as to homeowners," Meeker said. "(Existing) fees aren't anywhere near the costs that have been incurred because of new development."

He is banking on the new make-up of the City Council to support his push for higher fees.

Incumbent council members Tommy Craven and Jessie Taliaferro lost their re-election bids in October, and Councilwoman Joyce Kekas didn't run for a new term. They have been replaced by Nancy McFarlane, Rodger Koopman and Mary-Ann Baldwin, respectively.

"Each candidate who talked about raising fees (during the campaign) was successful. It really is time to address this issue," Meeker said.

The impact fee discussion will begin at the next council meeting, and Meeker said he hopes to have a decision before the 2008 budget is set next July.

Even opponents acknowledged that the question is now when and how much impact fees will increase, not whether they will.

"The mayor has enough votes to accomplish his agenda that he sets out to accomplish," Councilman Philip Isley said.

Isley said he thinks people don't want additional costs associated with home-buying, citing the recent rejection of property-transfer tax proposals in 16 counties across the state.

"There's a fine line of what the citizens want," he said. "The last thing we want to do is put these at a level of that will decrease people wanting to build homes for various reasons."

Permits for new construction in Raleigh have dropped with the national housing slump, according to Tim Minton, executive vice president of the Home Builders Association of Raleigh-Wake County. About 2,700 permits have been issued this year, down from more than 3,000 permits last year, he said.

"Any additional fees added to the cost of the homes clearly will have less people out there building homes," Minton said. "It could have a severe impact. Clearly, the housing market is not running at the same pace it was running before."

The homebuilders association also wants some accountability in the city to ensure that the extra money is going into new roads and amenities that benefit new developments, he said.

Elsewhere, Chatham County recently increased impact fees by $600 per single-family home and $150 per multiple-family unit. The move followed the defeat of a property-transfer tax proposal on the Nov. 6 ballot.

RELATED TOPICS: Charles Meeker, Mary-Ann Baldwin, Nancy McFarlane, Chatham County, Apex, Cary

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flashlight

Ah we just got bored with the whole impact fee thing. At least give us credit for having a civil discussion.

According some posters, increasing these fees will slow the housing market in Raleigh. Can someone out there show that Apex and Cary's housing market has slumped as a result of their fees being as high as what Raleigh is aiming for? ...and FYI wikipedia isn't that reliable.

Sorry if someone has brought this up earlier, but I got lost in the argument between the Bush Economy v. the Clinton Economy, which is totally relevant to impact fees. Six degrees of tangent conversation?

Yes, let's do everything we can as a government to kill the only industry that has kept RDU from feeling the full effect of the current pull back in the economy. Good thinking.

I'm all for controlling government waste. Just pointing out that its a myth to assume that tax cuts always creates sustainable economic growth. If that were true we could cut taxes every year forever which would create extra revenue forever. Common sense tells us that at some point taxes cannot be cut anymore.

When JFK cut the taxes, the upper rates were in the 70% range, he cut it to 50% (Not sure of the exact figures) but obviously rates were much higher then, than they are now.

Keep in mind that when people are taxed that the money doesn't just disappear, it's spent right back into the economy. Of course we should always demand that our government spend that money wisely with little waste.

wildervb

9/11 of course was a huge economic hit to New York City. Also remember the huge fallout in the travel and hospitality industry, both here and overseas. Also remember the billions congress flushed down the drain for the airlines. (remember Midway Airlines). In addition to the direct industries, you have all the supporting business for the travel and hospitality industries: travel agencies, foodservice groups, rental cars, on and on. All of that fallout stemmed directly from 9/11. Yes the low interest rates did spur the housing bubble, that is now bursting as all such bubbles do. I sometimes wonder if we are able to learn from these events, or if simple greed will always override common sense. As to tax policies, I fall on the side of wanting to keep more of my money and giving government less, if for no other reason than that it is the best way to control government growth and waste.

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