News
May 21, 2008
City Council Increases Impact Fees
The Raleigh City Council voted 7-1 on Tuesday to increase impact fees in order to offset the cost of new development. The council rejected a recommendation from the City’s Planning Commission to phase in the higher fees over three years. The new fees take effect on June 1.
Funds generated by the City’s impact fees, also called thoroughfare and open-space facility fees, are used to help pay for new road construction and park development. The amount of each fee in the proposal approved by the council is proportional to the impacts created by the new development.
Under the plan approved by council members, the thoroughfare facility fees will be modified to consolidate several existing land-use categories. The changes also include a tiered fee for new single-family houses. The plan sets the new thoroughfare facility fees at 60 percent of the new maximum rate, increasing the fees by an average of 161 percent. For single-family houses, the new thoroughfare facility fees will 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 4,9999 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 will be imposed on other types of new housing and on new commercial, industrial and recreational properties.
The new open-space facility fees will be an increase of 75 percent over existing fees. A tiered system will not be used for these fees. However, the City Council has requested that additional study be done on the feasibility of having tiered open-space facility fees for single-family houses. 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 new open-space facility fees for new single-family homes will be between $924 and $1,129. The fees for new multi-family developments will be between $672 and $819 per unit.
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:
Eric Lamb
Transportation Services Manager
Public Works Department
P.O. Box 590
Raleigh, NC 27602
919-516-2161
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