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Last Updated: Sep 10, 2009 - 12:28:52 PM |
After a lengthy debate between supervisors Dan Gecker and Marleen Durfee, the Chesterfield County Board of Supervisors last week voted 3–2 in favor of increasing cash proffers on new home construction by $886 to $18,966. The five-percent increase, according to the county’s budget and finance director, Alan Carmody, reflects calculations relating to losses due to the county’s lower property assessments, reductions in state funding for roads, and loss in value of county properties based on the Marshall Swift index.
Carmody said the county’s break-even point to cover the cost of services required by new homes is currently $25,511.
“Keep in mind that the numbers used [by budget and finance] are not inflated,” said Durfee. “So we’re still behind the eight-ball.” She said the county’s cost per lot is still significantly higher than the $18,966 the board voted to accept.
Chesterfield is the fourth-fastest-growing county in Virginia. Counties that are growing quicker than Chesterfield are collecting much higher proffers. Loudon County asks $48,819, Stafford County $43,145, and Prince William County $37,719 per new residence.
But Gecker, who represents the Midlothian District, said that the county’s timing is off for an increase. “The adjustment is really meaningless in the grand scheme of things,” he said. “The state bears responsibility for a large portion of these costs. Maybe we should be looking to the [state] legislature.”
Bermuda District Supervisor Dorothy Jaeckle agreed. “It would be a morale downer [for builders] with this as an anti-business message,” she said. “This is especially true with the dramatic downturn we are experiencing.”
Warren Wakeland, Director of Government Affairs for the Home Builders Association of Richmond (HBAR), said the proffer increase may not bring the additional revenue the county is pursuing.
“The county is projecting that 70 percent fewer new homes will be built in the county in 2009 than just two years ago,” Wakeland said. “That means the county will collect tens of millions of dollars less in property tax revenue in 2009 than just two years ago. Knowing that housing production has slowed to a crawl and property tax revenue has plummeted, three commissioners voted to further decrease tax revenues by further slowing the most profitable tax generation instrument they have.”
Wakeland believes that economic development in Chesterfield will suffer because of the board’s decision.
“Each commissioner who voted to increase the cash proffer has stated publicly that the county needs more economic development. Business follows rooftops, and if homes aren’t being built, few businesses will look to Chesterfield County as a business location. The cash proffer vote told the business community it’s not needed in Chesterfield County. It sent the wrong message; it sent a bad message.”
County Administrator James J.L. “Jay” Stegmaier announced during the board meeting that the supervisors had instructed him to proceed with what he called a “fee holiday” for commercial development. In essence, for a period of time, the county would waive planning and zoning fees for certain types of commercial development. The board approved sending the proposal to the planning commission for review. Stegmaier said he hopes the proposal would be back before the board in August.
“I think this sends a signal of support to the business community,” Stegmaier said.
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