News & Observer | newsobserver.com | Raleigh panel calls for phasing in fee hike

Published: May 13, 2008 10:34 AM
Modified: May 13, 2008 04:49 PM

Raleigh panel calls for phasing in fee hike

 

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RALEIGH - The city's Planning Commission today recommended increasing city impact fees in phases, reversing its decision of a week ago.

The action means that a proposal to double the fees on new development to pay for roads and parks will go before the City Council next week.

The city staff originally called for Raleigh to adopt a new method for calculating the fees and then to charge 60 percent of the amount allowed by state law.

Under the new methodology, the fees would be tiered, meaning larger homes would incur larger fees.

The Planning Commission has expressed concerns about increasing impact fees significantly, given the current state of the economy, particularly the housing market.

During its work session last week, the commission recommended adopting the new methodology and charging 30 percent of the allowable amount. A proposal to gradually increase the fees by 10 percent a year for three years beginning July 1, 2009, failed.

A 30 percent increase would not result in additional revenue for the city. And under the new methodology, some types of new development would actually pay less than they do currently.

Maha Chambliss, the commission's vice chairwoman, expressed concern this morning that a 30 percent increase would result in a reduction in road impact fees paid by retail development.

Those concerns prompted her to reintroduce a motion to increase the fees gradually over a three-year period beginning in 2009. That motion passed 6-4.

The planning commission's recommendation may end up being ignored by the full City Council.

Mayor Charles Meeker has said he is against gradually increasing the fees over a period of time, preferring to adopt the original proposal.

"They need to go up all at once," the mayor said last week. "The council has been debating this issue for five years. It really is time to move ahead."

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