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Anne Arundel group to devise fee increase for area developers
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BALTIMORE (Map, News) - An advisory group with a broad spectrum of viewpoints is expected to determine an increase in fees paid by developers in Anne Arundel.
The assignment for the group created by the Anne Arundel County Council is to review a report supporting County Executive John R. Leopold’s proposal to raise impact fees — money developers pay to expand roads and schools for new houses — from $4,000 to between $20,000 and $40,000 per new house.
“We came to the realization that we needed a different type of input on this bill,” said Council Chairwoman Cathy Vitale, R-District 5.
The group would likely include developers, business leaders, educators, residents, environmentalists and nonprofits, she said. The names are expected to be announced by the end of the week.
The group, which will devise numbers that officials hope will find support from Leopold and the council, will have a tough task, as the council has all but rejected Leopold’s proposal.
Leopold has called for a steep increase in fees because the cost of construction has far outpaced the revenue from the fees, forcing taxpayers to pay for school and road expansion. Smart-growth groups and educators spoke in favor of the bill during Tuesday’s council meeting.
“It is time for a change. ... This is an outdated system that is not adequately addressing school needs,” Board of Education member Eugene Peterson said.
However, the council has said the figures are too high, as well as inaccurate, and could stifle the county’s economic growth and affordable housing opportunities.
“I’m concerned that [teachers] are going to suffer if we do not work on this bill,” said Councilman Jamie Benoit, D-District 4, an ardent opponent of Leopold’s bill.
To accommodate the group’s work, the council decided to delay a vote and public comment on the bill until March 17.
The group will take the place of a consultant, who the council had said would offer objective analysis of a report.
During the two public hearings, many people offered their support for an advisory group, though a majority were either developers or anti-growth advocates.
The last time the county increased its impact fees, a special advisory group was formed and took six months to hammer out an agreeable increase, which was less than initially proposed.
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
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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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