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Anne Arundel Council divided over impact fees for developers
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“I think impact fees do need to go up. However, I think the proposal goes too far, too quickly,” said Councilman Ronald Dillon Jr., R-District 3.
County Executive John R. Leopold introduced changes Thursday to impact fees — charges levied on new construction for new roads, schools and public safety workers — that would make it more expensive to build new houses, offices and hotels in the county.
In some cases, developers would pay four times more.
The current fees only cover a small percentage of the cost to build roads and schools for new developments. “By shifting the cost where it belongs, the average taxpayer will no longer bear the costs of the impact of new development,” Leopold said.
But several council members said the higher fees could hinder development.
“I think the county executive is shooting for the stars,” said Councilman Jamie Benoit, D-District 4.
“He must have known that number will be reduced. The question is, to what number?”
The increased fees also affect commercial development. Dillon said significantly higher fees may deter potential commercial growth from the Base Realignment and Closure expansion at Fort Meade.
Others have yet to voice their opinion on the proposal but agree that new fees must happen soon.
“Whenever a new home is built there is a financial impact on county services. That cost is paid by someone,” said Councilman Josh Cohen, D-District 6. “I believe that new construction needs to pay its own way.”
The council is expected to question James Nicholaus, the consultant whose data was used by the county to arrive at the proposed figures.
“We need the opportunity to ask the consultant his reasoning that a new five-bedroom house would pay close to $40,000,” said Council Chairwoman Cathy Vitale, R-District 5.
Upcoming meetings
» What: Planning Advisory Board to discuss proposed impact fee increases
» When: 6 p.m. Jan. 14
» Where: Office of Planning and Zoning, 2664 Riva Road, Annapolis
» What: County Council work session on the proposal
» When: 9 a.m. Jan. 15
» Where: Arundel Center, 44 Calvert St., Annapolis
jflanagan@baltimoreexaminer.com
Comments from Examiner Readers
9:10 AM MST on Tue., Feb. 19, 2008 re: "Public comment missing from fee debate in Anne Arundel"
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8:32 AM MST on Tue., Feb. 19, 2008
re: "Public comment missing from fee debate in Anne Arundel"
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9:24 AM MST on Wed., Jan. 16, 2008
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5:17 PM MST on Mon., Jan. 7, 2008
re: "Anne Arundel Council divided over impact fees for developers"
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Ditto said:
Well, thanks for debate 101. Of course affordable housing is the answer. Yes, time is money. The rocket scientist plan only benifits whom?? The housing market pick up in the spring, regardless of recesion.
82 agree | 84 disagree
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Examiner Reader said:
It is misleading to describe these fees as imposed on developers. They do not punish developers, they do not diminish the amount of land developed, they raise the prices of homes, the end user pays them. And because they are part of the cost of doing business, because profit is calculated on cost, developers and builders actually make money on these fees--and they must, if you understand how profit works. Builders and developers oppose these fees because they raise the price of homes, which reduces the market in size--fewer people have the money or appetite to buy the homes, which means the homes stay on the market longer and thus prices go up further--time = money. How sad that all of this is going on.
77 agree | 78 disagree
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Examiner Reader said:
How much can everyone pay to Maryland. I believe this will slow everything down even more. Which hurts contractors in the building industry. We already pay enough for permits. Which we can't even get in a timely matter.
89 agree | 89 disagree
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Jen W said:
Another reason I LOVE Leopold. Developers are slime balls who could care less about the environment or anything else besides making money. It is about time they have to pay. Why should the tax payers bear the burden of more congestion and traffic while the developers keep getting richer?
100 agree | 109 disagree
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