News & Observer | newsobserver.com | Paying for impacts

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Published: May 09, 2008 12:30 AM
Modified: May 09, 2008 06:28 AM

Paying for impacts

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It's unfortunate that the Raleigh Planning Commission has opposed the idea of doubling impact fees on new development in the city. It's true that the economy and housing market are strained, but as Mayor Charles Meeker points out, the increases wouldn't take effect for another year or two. By then economic conditions could well have changed.

Developers oppose higher impact fees as deterrents to home buyers. But they also may fear that in a competitive market, they might have to absorb some of the fees themselves.

The truth is, the taxes and fees paid on new homes don't cover the costs to the city of providing parks and roads and fulfilling other quality-of-life expectations. Raleigh's fees have been low for too long compared to other communities, says Meeker, and he rightly plans to support raising the fees with or without the Planning Commission's support.

The mayor also knows his constituency. Two incumbent members of the City Council were beaten in the last election by candidates who favored higher impact fees.

The increases as envisioned by the council are tiered, meaning that fees would be higher on larger homes. Smaller homes (and Raleigh needs more affordable housing) would not feel the crunch of big increases. On an average, new single-family home, the fees for roads and parks (open space) would go from about $1,200 to $2,500, and those are one-time fees. That just doesn't seem unreasonable.

Developers, particularly those who focus on high-end properties, have pulled up to a feast in the Triangle for a long, long time. And the neighborhoods they have created have enjoyed a multitude of city services and conveniences. It's time that development paid more of the expenses associated with it. Council members who support raising impact fees with a tiered rate system should stick to their position.

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