News
February 5, 2008
Public Hearing On Proposed Increases In Impact Fees On March 18
The Raleigh City Council agreed today to hold a joint public hearing with the Raleigh Planning Commission on a plan that would increase the impact fees the City imposes on new development. The public hearing will be on March 18 at 6:30 p.m. in the council chamber of the Avery C. Upchurch Government Complex, 222 W. Hargett St.
The increases to the City’s impact fees, also called thoroughfare and open-space facility fees, are included in a proposed text change that City staff will present to council members. Funds generated by these fees are used by the City to help offset the costs of capital road construction and park development. The amount of each fee is proportional to the impacts created by the new development.
Under the proposal being considered by the council, the thoroughfare facility fees would be modified to consolidate several existing land-use categories. The proposed changes also include a tiered fee for new single-family houses. The proposal would set the new thoroughfare facility fees at 60 percent of the new maximum rate. This would double the existing fees. For single-family houses, the proposed thoroughfare facility fees would be:
- $1,051 for a single-family residence less than 1,000 square feet in size;
- $1,249 for a single-family residence between 1,000 and 1,999 square feet in size;
- $1,386 for a single-family residence between 2,000 and 2,999 square feet;
- $1,491 for a single-family residence between 3,000 and 3,999 square feet;
- $1,573 for a single-family residence between 4,000 and 4,999 square feet; and,
- $1,684 for a single-family residence 5,000 square feet or larger.
In addition to new single-family homes, thoroughfare facility fees also would be imposed on other types of new housing and on new commercial, industrial and recreational properties.
The proposed open-space facility fees would be increased by 75 percent. A tiered system is not being proposed for these fees. However, council members have requested that additional study be done on the feasibility of having tiered open-space facility fees. Unlike thoroughfare facility fees, the City’s open space facility fees are assessed exclusively on new residential development. The amount of the fee depends on the location of the new development within Raleigh. The proposed open-space facility fees for new single-family homes would be between $924 and $1,129. The fees for new multi-family developments would be between $672 and $819 per unit.
The higher impact fees would raise an additional $7 million to $8 million annually for the City.
Following the March 18 public hearing, the Planning Commission will study the proposed impact fee structure and make a recommendation to the City Council. Council members will make the final decision.
In 2006, the City Council voted to raise impact fees by 72 percent. The current council decided last December to revisit the issue.
Prepared by:
John Boyette
Public Affairs Specialist
Public Affairs Department
For More Information Contact:
Mitchell Silver
Director
Planning Department
One Exchange Plaza, Suite 304
Raleigh, NC 27602
919-516-2626
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