Developers increase impact fees in bid to save bill

WASHINGTON (Map, News) - Homebuilders trying to overhaul the system by which they reimburse local governments for new growth boosted their offer to $12,500 per home in a last-minute gambit to win over numerous Northern Virginia critics.

Supporters say the bill would greatly lower the cost of buying a new home, but critics contend the measure would leave local governments without the resources they need to build more classrooms and roads.

The proposed impact fees, which originally were set at $8,000, remain far less than the cash contributions some localities require of at least $35,000 per house, called “proffers,” and it is not clear if the bill will win enough support to pass the Senate today.

“This is an extraordinarily comprehensive piece of legislation that will change the manner in which development indeed pays for the infrastructure needs that it creates,” said Sen. John Watkins, R-Powhatan, the sponsor of the bill.

But critics in local governments are pushing to have the measure blocked for further study, saying such a major overhaul needs more independent analysis.

“The fees are still way too low,” said Stewart Schwartz, executive director of the Coalition for Smarter Growth. “The fact that they’re throwing out numbers suggests that we need to study this more.”

Sen. George Barker, whose Northern Virginia district straddles the border between Prince William and Fairfax counties, said the changes have not satisfied all of his concerns.

“Prince William would receive far less under this measure than it currently does, and somebody else would have to pick that up,” said Barker, D-Fairfax. With the county considering a 28 percent increase in the property tax rate, he says taxpayers cannot afford to shoulder additional costs.

But the bill’s advocates say the fee would be paid by developers of more houses to spread out the cost.

“What we’re trying to do is spread the infrastructure funding over a larger base of units, which will lower the cost,” said Mark Granville-Smith, of the Prince William County Chapter of the Northern Virginia Building Association. “It’s a compromise meant to get governments on board.”

dgenz@dcexaminer.com

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