Why Should Delaware Care?
Counties levy impact fees to support different services like sewer infrastructure, emergency services and county maintenance. New Castle County has not updated how much it charges developers on new construction projects since 1999, which some say is straining those services.
The New Castle County Council blocked an attempt to override a veto on higher impact fees on new development Tuesday night. Council members shut down the override in a 6-6 vote after more than an hour of discussion.
This vote was spurred by a veto from former New Castle County Executive and Governor-elect Matt Meyer, who denied an ordinance that would have updated the county’s development impact fees for the first time since 1999.
Sponsors of the ordinance introduced a veto override at the county’s first council meeting in the new year, which ultimately failed to reach the required 10 council-member supermajority.
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.
At the time, Meyer based his decision on keeping the cost of housing down in New Castle County, but some council members saw it as acquiescing to developer wishes.
Councilwoman Dee Durham, one of the main sponsors on the ordinance, said she intends to work with new County Executive Marcus Henry to reintroduce it with some minor adjustments, which would restart it in the public hearing process.
‘Show some political courage’
Durham’s veto override was introduced toward the end of the council’s Tuesday meeting, following another failed veto override related to environmental building codes.
Members of council sparred over the efficacy of updating impact fees in the county, with some arguing an update would increase the cost of housing in the county.
Others argued that if it didn’t pass, it would lead to tax increases across the county, and strain county services like sewer, emergency services and park maintenance.
Durham opened the debate saying the change would bring the county into compliance with a requirement to periodically update how much developers have to pay on new construction.
She added that the costs of increased development on county services are being passed onto residents, and these fees would make it so those looking to build more homes in the county have to pay their fair share.
“I think this ordinance is aimed at a fairness to put the costs where they belong and update them as per a nationally recognized standard,” Durham said.
Councilman Kevin Caneco, another one of the ordinance’s sponsors, urged council members to override the veto and “show some political courage.”
He argued that many of those against the raising of impact fees are “banging on the table,” and ignoring the “thousands” of residents he said have reached out to call on developers to chip into these services.
Caneco also said that the county may need to pass a tax increase of at least 10% on all of its residents, and argued now is not the time to shut down a proposal that would give more money to the county to fund its services.
“There was an opportunity to bring in extra resources to our parks, to our libraries, and we didn’t want to do that because we didn’t have the political courage or the will to do it,” Caneco said.
Not all of the members of council were in favor of passing an override though. Councilman Penrose Hollins said the council should wait until the new county executive is settled to address this fee.
He also voted against an override, and believes the current ordinance is targeted at residents below the C&D Canal, and doesn’t address the full scope of the impact in the county.
“I prefer to focus on all of New Castle County residents, as opposed to one area, one way or the other,” Hollins said.
Additionally, Councilman Jea Street Sr. added that the cost of new housing in New Castle County – where homes commonly cost $400,000 or more – is already pricing many residents out of ownership.
Street said he believes implementing a new fee that could increase the cost of housing is the wrong move for the county at a time when people struggle to afford homes at their current price.
“It’s unfair, and we’re already in a situation where certain people with certain income levels are automatically going to be locked out of purchasing new homes in the southern part of the county,” Street said.
Builders, activists spar in public comment
Dale Swain, co-founder Residents Against Delaware’s Arbitrary Rezoning (RADAR), a New Castle County land use advocacy group, went to Tuesday night’s meeting to support the override.
He said that by not passing the ordinance now, it opens up the door to further delaying some kind of change on the issue.
“We need to pass this,” he said. “We need to make the right people pay.”
Swain also argued that the impact fee is not going to stop people from buying houses in New Castle County, and if the effect of an impact fee is passed onto the resident, it’s fair since they’re the ones living in the house.
Katie Gillis, the executive officer of the Home Builders Association of Delaware (HBA), voiced her concerns with the ordinance and opposed the override.
During her public comment, Gillis said that ultimately any additional fees or expenses to the builders are passed onto buyers.
“Significant fees spread out over 30 years are still significant fees,” she said.
Gillis said the HBA of Delaware believes the county needs to do more analysis on the effect of the fees countywide before passing the ordinance to find “a comprehensive solution.”
Governor-elect Meyer vetoed the initial ordinance one day after Christmas, citing already unattainable housing prices for people living in Delaware. He would also later discuss the same issue at Spotlight Delaware’s inaugural Legislative Summit.
During the interview, he said he didn’t support raising the fees just to do it, and raising the impact fee across the board “doesn’t make sense.”
In an emailed statement from Meyer’s transition team, he said he hopes to build housing that’s more affordable and work with all three of Delaware’s counties to get there.
“The rent is too damn high, and now is not the time to make it even higher,” Meyer said.
The post New Castle County upholds Meyer veto on developer impact fees appeared first on Spotlight Delaware.