RALEIGH - The city's Planning Commission softened its stance on raising impact fees Tuesday, recommending that Raleigh increase the fees gradually over four years.

That approach is likely to face strong opposition next week when the City Council takes up impact fees. Mayor Charles Meeker has already said he thinks the fees, which the city charges on new development to help pay for roads and parks, need to be raised all at once.

The proposal that will go before the council calls 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.

Houses that are from 2,000 to 2,999 square feet, for example, would be charged $1,386 in transportation fees and from $924 to $1,129 in open space fees, depending on where in the city the homes are located.

A single-family home is assessed $528 in transportation impact fees under the current system.

Meeker has said the proposed fee increase could bring an additional $7 million to $8 million annually, though a down economy is certain to affect those figures.

Worries about impact

The Planning Commission expressed concerns about increasing impact fees that significantly, given the 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 30 percent increase would not result in additional revenue for the city, and given the new methodology some types of new development would actually pay less than they currently do.

A proposal to increase the fees by 10 percent a year for three years beginning July 1, 2009 failed during last week's work session.

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

Those concerns prompted her to reintroduce a motion to adopt the 30 percent increase beginning July 1, and then increase the fees by 10 percent annually over the next three years. That motion passed 6-4.

Raleigh last raised its impact fees in 2006, when the City Council approved a 72 percent increase.