Magnolia Green could pay higher taxes
Would raise $43.7 million for roads
By Greg Pearson STAFF WRITER

The Chesterfield Board of Supervisors will hold a public hearing on Mar. 14 before voting on whether to create a transportation district at Magnolia Green that would increase the community's property tax rate by 25 percent. The higher tax rate would be used to extend the Powhite Parkway through what could become the largest planned community in metro Richmond.

Currently, the county is proposing a property tax rate of 99 cents per $100 of assessed value countywide. Based on that amount, residents of Magnolia Green would pay a rate of $1.24.

State law allows transportation districts to be created for large developments. The higher rate would be effective for an

undetermined number of years and earmarked for extending the Powhite Parkway through the community. Chesterfield is currently discussing the extension with highway construction companies. The project would lengthen the Powhite nine miles west from its current end at Charter Colony Parkway to Route 360 near Grange Hall Elementary School.

Located on Route 360 five miles west of Route 288, the 3,892-acre planned community of Magnolia Green could potentially have 4,886 homes. The developer is expected to break ground later this year on phase one of the development, which will include 686 single-family homes situated on 315 acres. Phase one will be built by Lifestyle Homes of Norfolk, operating as Magnolia Green Development, LLC.

Future residents of Magnolia Green could pay higher property taxes if the county board of supervisors approves a new transportation district for the community.

Build-out of the community, which includes considerable commercial development, will take about 20 years.

The property was rezoned in late 1991 just ahead of a proffer system enacted by the county, though the developer did make cash proffers of $2,800 per home and donate land for roads and public facilities. The current maximum proffer is $15,600 per home.

Chesterfield supervisors talked openly last year about initiating a transportation district specifically for Magnolia Green to pay for road needs there. The Chesterfield transportation department believes it would be too costly to improve Route 360 west of Hampton Park, and this move by the board signals that the long-term transportation needs of the 360 corridor will require adding the toll road extension.

The Magnolia Green transportation district issue wasn't even on the board's agenda last week, but the supervisors voted unanimously and quickly without discussion. Magnolia Green officials are not pleased the proposal impacts only them. Last November during a county Transportation Summit, other neighborhoods along Woolridge Road including Foxcroft had been mentioned as candidates for a higher tax rate.

"We are very surprised that the board of supervisors would take this unprecedented action without discussion with the owners of the affected property, and that it would elect to impose such a requirement on a single project in this manner," wrote Ray Zimmerman, Magnolia Green's manager in a prepared statement. "The zoning conditions for this property include cash proffers, land dedications for schools and roads, and offsite infrastructure requirements with a substantial total value. We will be meeting with county officials to discuss the action taken by the board and prefer to make no further comment until that occurs."

Deputy County Administrator Jay Stegmaier said how long the higher rates would be in effect and other details have yet to be worked out. That could mean the county is open to negotiation. Matoaca Supervisor Renny Humphrey has repeatedly pushed for less multifamily development in Magnolia Green.

"We'll develop some models for revenue generation between now and the public hearing," Stegmaier explained. "The concept is to be in the neighborhood of what the current cash proffer today for transportation would generate. We have a lot of homework to do to nail down the financial results."

The current maximum proffer is $8,942 for roads per home. With 4,886 units already approved, that could generate $43.7 million to help pay for the $300 million Powhite extension.