Local News

Raleigh impact fees to jump in June

Posted May 20, 2008 2:19 p.m. EDT
Updated May 20, 2008 5:02 p.m. EDT

— The City Council voted Tuesday to double the amount developers pay to build an average-size home in Raleigh, beginning next month.

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 the guidelines that will go into effect June 1 split the fee into two segments – one for thoroughfares and one for open space – and increase the fees for an average-size home to about $2,300.

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

Raleigh's Planning Commission last week recommended that the city phase in the higher fees for new development over four years, citing the sluggish economy.

Councilman Philip Isley agreed with the commission Tuesday, casting the lone vote against the higher fees. The city should maintain its existing fee structure because of poor economic conditions, he said.

Raleigh has had some of the lowest impact fees in the Triangle, and Meeker has said the higher charges would bring the city more into line with those charged in Cary and Apex.