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Business leaders oppose increasing development fees
County business leaders this week condemned Loudoun's plans to raise proffers on new developments.
The recommendation to raise these fees -- which pay for county infrastructure improvements needed because of development -- came from the county Fiscal Impact Committee. The panel of seven residents biennially reviews the future cost of new development in Loudoun and assesses options for impact fees on developers.
These fees, which would raise proffer costs in some areas by 25 percent, are a “significant threat” to Loudoun's economy, said county Chamber President Tony Howard at a June 8 public hearing.
“By itself, a 25 percent increase to proffers will drive up the cost of homes,” he said. The county's plan creates “a disincentive to all businesses to locate in Loudoun County.”
Regional economic analyst and George Mason University professor Stephen Fuller also spoke out June 8 against increasing fees.
“This is the wrong time to be raising fees,” he said. “It may be the time to consider whether these fees are too high.”
Fuller said higher fees will cause developers to look for less expensive land. This could mean more urban sprawl in western Loudoun, he said. Fuller added that developers may also look to cut costs by eliminating the affordable housing component of their projects.
Beckwith Bolle, who serves on the Dulles Area Association of Realtors Board of Directors, agreed.
The fees, she said, “will send future housing prices through the roof ... [and] makes by-right developments more attractive, leading to more urban sprawl.”
Hobie Mitchel, who serves on the Fiscal Impact Committee, originally voted for increasing the fees, along with the majority of his committee members.
During the hearing, however, Mitchel, a developer, said supervisors should “delay a decision on this until the committee has done a complete review.”
Supervisor Jim Burton (I-Blue Ridge), who supported the fee increase, said he was surprised at Mitchel's change of heart.
“We had a long discussion on this,” said Burton, that all three of the developers who serve on the committee voted in favor of the increase. “I believe it's time to make a decision on this issue.”
The supervisors voted 8-0-1, with Supervisor Susan Klimek Buckley (D-Sugarland Run) absent, to vote on the fees during their July 21 meeting.
Contact the reporter at hhobbs@timespapers.com
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