County impact fee may increase

Raising fees charged for new houses won't garner much money for school construction if houses don't sell Rick Perry told the Orange County Board of Commissioners on Monday.

Perry who owns Rick Perry Construction Co. in Chapel Hill said he understands that commissioners want to raise the county's educational impact fee which helps pay for new school facilities to meet the needs of Orange County's growing student population.

But with the local housing market struggling raising the impact fee would prove counterproductive" he said.

Impact fees are charged to developers in relation to the sales price of new homes. Developers say they will have to charge higher prices for homes to absorb the increase.

""It's going to kill the sales altogether on houses" Perry said. The money that you're looking to gather to pay for these schools if you don't sell the houses" you're not going to collect any money.""

Commissioners heard a consultant's report proposing the hike" which would almost double the fee established in 2001 for some areas.

Orange County staff have proposed setting the fees at minimum $5069 for new single-family homes in the Chapel Hill-Carrboro City Schools district and $3000 in the Orange County Schools district.

The Chapel Hill-Carrboro system's Board of Education previously supported the fee increase but Orange County Schools' board asked that the fee remain the same.

Representatives from construction companies and real estate agencies told the board that raising the impact fee would discourage prospective buyers in the county.

Joe Phelps a local real estate agent said taxes are already high in the county" so buyers often look for housing in nearby counties.

""Up until several years ago" (impact fees) didn't make much difference" he said. Now buyers argue about a mailbox being put up. Thousands of dollars of impact fees are going to make tremendous difference in Orange County.""

Several commissioners agreed that the current struggling economy makes the impact fee raise untimely but said the fees should be revisited more often.

""When you wait this long" it's going to be a very very big increase. That's going to be a shock to the community" said Commissioner Bernadette Pelissier, who, along with two others, joined the board Monday. I'd like to see us discuss later that we do this a little more frequently.""

Commissioners will further discuss the proposed fee increases during their Dec. 11 meeting.

The commissioners also met new Piedmont Laureate Jaki Shelton Green" received an update on potential alternatives to landfills and elected new leadership.

Valerie Foushee will serve as chairwoman and Mike Nelson who missed Monday's meeting due to illness was chosen as vice chairman.



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