Why Should Delaware Care?
Impact fees are collected by the county to support funding services like fire departments, law enforcement, emergency medical services and other county services. An ordinance approved by the New Castle County Council would have updated those fees for the first time since 1999.
In his waning days as New Castle County executive, Matt Meyer vetoed an ordinance that would have raised the amount developers have to pay to support county services on new construction projects.
The ordinance, which was approved by the New Castle County Council on Dec. 10, would have updated the county’s impact fees for the first time since 1999.
Impact fees are collected by the county on new developments to offset the impact of a new community on services like fire departments, county facilities and emergency medical services.
The veto, which was shared with county council members the day after Christmas, points to the possible effect it would have on affordable housing. But members of the county council scoffed at the decision, saying it only benefits developers.
What was the ordinance?
Ordinance 24-008, which was sponsored by New Council County Council members Dee Durham, David Carter and Brandon Toole, was introduced nearly a year ago, but languished for months.
On Dec. 10, when the ordinance was discussed, members of the county council sparred over whether to push the bill forward. When it came time for a vote, the county passed it in a 7-2 vote with three members not voting.
Mike Oleck of the Home Builders Association of Delaware showed up to voice concerns about the bill, and the impact it would have on affordability in housing.
He argued that passing the ordinance would make it harder to address housing supply in the state.
“The affordability problem is the supply problem at its core, and until that problem is solved, we will continue to see affordability suffer,” Oleck said.
A few weeks following its approval, Meyer vetoed the ordinance in the midst of a major government transition. He will step down as county executive on Jan. 7 and be sworn in as governor on Jan. 21.
In his letter to council members, he said the implementation of impact fees could pass on additional costs to homebuyers, exacerbating an already expensive housing market.
“Now is not the time to increase the cost of housing in New Castle County,” Meyer wrote. “This county is facing an unprecedented housing crisis, not only for the most vulnerable among us, but also for so many working families across our community.”
Council sponsors decry veto
Following the veto, newly elected County Councilman Kevin Caneco, who was a co-sponsor to the bill, took to Facebook to decry Meyer’s decision. He wrote that the ordinance would have allowed for increased support to different county services and made developers pay “their fair share.”
“Outgoing [County Executive] Meyer siding with developers over hard-working people is saddening to me and quite the lump of coal to hard-working New Castle County residents,” Caneco wrote.
Durham, who has been one of the main proponents of the bill, said in an interview that she’s disappointed with the decision, and called affordable housing arguments by developers “a red herring.”
She pointed to different exemptions in the bill for affordable housing projects like moderately priced dwelling units and homes built using low-income housing tax credits.
Additionally, she said the denial of the ordinance doesn’t do much to help county residents already footing the bill with their taxes.
“It’s not really benefiting anyone except for the developers and the more wealthy people that are coming into the state and buying high-end houses,” Durham said.
Carter, another one of the bill’s main proponents, said the veto will put additional burdens on areas south of the C&D Canal, like his district near Middletown, as new developments come to the county’s rural areas.
“I felt like it is another prejudicial slap in the face to southern New Castle County by an outgoing county executive,” Carter said.
He noted whenever there is talk of regulation on development, it becomes a question about how it will impact affordable housing.
According to Carter, county code says the ordinance needs to be periodically updated. By rejecting the update, Carter said Meyer is “thumbing his nose at the law.”
“If you’re a governor-elect, you take the oath of office, you should follow the law,” Carter said. “Matt Meyer needs to follow the law or get the hell out of politics.”
What’s next?
Both Durham and Carter said they plan to move the ordinance forward, whether it be a veto override or reintroducing the ordinance once Meyer leaves county office. County Executive-elect Marcus Henry would then be tasked with weighing the proposal.
To override the veto, the council would need at least 10 votes to reach a supermajority. While it’s unclear which way those who didn’t vote would go, Durham said it’s an “uphill battle.”
Additionally, the council would have to introduce an override vote within 30 days of the veto. New Castle County council is set to meet again on Jan. 14, 2025.
Get Involved
The New Castle County Council will meet at 6:30 p.m. Tuesday, Jan. 14, in person at the Louis L. Redding City County Building at 800 N. French St. in Wilmington or on Zoom.
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