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Panel: Raise Raleigh impact fees slowly

Posted May 13, 2008

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— The city Planning Commission voted Tuesday to phase in higher impact fees for new development over four years.

The City Council will review the recommendation at an upcoming meeting.

Mayor Charles Meeker has pushed for doubling impact fees to generate revenue for growth-related needs. He has said higher fees could provide the city with an extra $8 million to $10 million for roads and parks.

Developers pay a flat fee of $1,200 for each single-family home they build in Raleigh, but a city proposal would split the fee into two segments – one for thoroughfares and one for open space – and devised a formula that would increase the fees for an average-size home to about $2,500.

A sliding scale for the fees would require developers of larger homes to pay more, while those building smaller homes would pay less.

The Planning Commission voted to phase in the increases, with half of it going into effect in July and the rest evenly divided over the next three years.

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  • wrx44 May 13, 2008

    Steve, better the new home buyers pay for it, then a property tax increase for all.

  • Steve Crisp May 13, 2008

    And I love the way our city so-called leaders keep trying to pass this off as a cost those evil developers will have to pay. No, the new homeowners will have to pay it. But it is far less palatable for them to say that they want to stick it to all new residents or those who want to upgrade their homes.

  • chfdcpt May 13, 2008

    I have said before, and I will say it again....

    To those of you that have been screaming for impact fees, to raise $8 million dollars by doubling the impact fee, that means they have to build and sell 3,200 new homes. Now, if each home is sold to a family with 1 kid, that means 3,200 new kids eventually in the school system.

    Now, do you think that the city is going to give any of that money for schools? Of course not. Considering it takes $5-8 million to build just one school.

  • jsanders May 13, 2008

    The impact fees nonsense amounts to a tacit admission on the part of city leaders that Raleigh's tax burdens is too great on current residents, and the only way they can raise taxes now is to stick it to the new guys via higher home costs. And you know they won't admit that growth is an overall positive for Raleigh (something that every city planner and civic booster from time immemorial has known):
    http://triangle.johnlocke.org/blog/?p=2062