Planning commission rejects use of impact fees
By Greg Pearson STAFF WRITER

So far, only the county staff is recommending using impact fees to raise $45-$50 million to improve county roads. Last week, the Chesterfield Planning Commission unanimously recommended against enacting the fees after a committee set up by the county board also rejected them.

"We are under a board mandate, and we have to comply by state law," said Dan Gecker, chairman of the commission, in explaining why the commission was considering impact fees. "There's not much sentiment on the commission for this proposal."

If adopted, the fees would be levied against properties that were rezoned prior to the county's proffer system in 1992. Monies collected would be used to offset the costs of building and improving roads.

The issue of whether to institute impact fees now goes to the board of supervisors, which will hold another public hearing prior to accepting or rejecting them.

At the commission's meeting last week, the county meeting room was packed with affected landowners opposed to impact fees. Eighteen speakers uniformly called the fees "an unfair tax," particularly after paying taxes on the undeveloped land for years. Several seniors said they hoped to sell their land one day and use the proceeds for their retirement.

If the fees are enacted, the county will collect them when a building permit is filed. About 9,000 lots would be affected with property owners paying an average of $5,820 per lot.

County Attorney Steve Micas said his office received 700 phone calls about the proposed fees.

"The timing isn't good because of the current housing market," insisted Tyler Craddock, spokesperson for the Home Building Association of Richmond. "Everybody should pay for roads because everybody benefits."

Several speakers argued the fees could hurt homes priced less than $200,000 the most by driving up housing prices, making it more difficult for the working class to attain the dream of homeownership.

The Chesterfield County Impact Fee Advisory Committee voted late last month against imposing the fees. The committee's report said such fees were not "equitable" or "administratively feasible." It recommended the county study the impacts of residential and commercial development on the tax base, including housing affordability and attracting economic development.

The committee also recommended establishing a task force to develop a "comprehensive plan for transportation," including the study of financing roads by a sales tax, gas tax or meals tax. It suggested that current savings from business taxes and a portion of real estate taxes could be earmarked for roads.

For almost a year, Chesterfield has been discussing options on how to raise $300-$500 million to address the county's road needs. The county reportedly needs about $1 billion in road improvements.

Thus far, the county has inked an agreement with the Magnolia Green community to use $35 million from a Commercial Development Authority to improve Otterdale and Woolridge roads and is trying to interest road-builders in extending the Powhite Parkway as a toll road from its current end at Old Hundred Road to Route 360 near Grange Hall Elementary.

To reconstruct a two-lane road costs $8 million per mile. To widen a two-lane road to four lanes costs $10 million while widening a four-lane road to six lanes costs $13 million.

The General Assembly approved legislation earlier this year that allows counties to charge impact fees after study by a committee, a recommendation by the commission and final approval by the board of supervisors.

To see a list of property owners who could be affected if impact fees are enacted, go to www.chesterfieldobserver.com and click on "Special."