Supervisors Oppose Bill That Would End Proffers

Fuller looked at fiscal 2004 through 2007 and concluded that more revenue would have been generated through flat fees, mainly because the fees would have applied not only to rezoned properties but also to by-right developments, which do not require rezonings and therefore are not subject to proffer negotiations.

But the study examined just Prince William and Chesterfield counties. Prince William would have collected an additional $70 million with impact fees over the four years, Toalson said. In Chesterfield, the difference was $39.3 million.

Critics say the study was not broad enough and did not take into account the particular needs of Loudoun, the fastest-growing county in the state.

"I don't think that Loudoun would benefit from an $8,000 number charged on by-right [development] as well as the rezonings," said Supervisor Lori L. Waters (R-Broad Run). "I think the number would have to be much higher."

Waters also said that if the bill becomes law, the board would be justified in denying more rezoning applications.

"One of the criteria that we take into consideration when we look at rezonings is whether or not they mitigate the fiscal impact [of development]. And if the number is set at $8,000, that is not going to come anywhere close to paying for a high school or . . . a library," she said. "I think we would have greater justification for rejecting the rezoning."

Fuller, the study's author -- who is not taking a stand on the legislation, said critics make a valid point that figures culled from two counties are not definitive evidence that counties everywhere would collect more revenue under the new system. For the policy to work, he said, the fee probably would need to be set differently from one locality to another.

"One size doesn't fit all, I think, would be a legitimate observation," Fuller said, adding that the general concept of applying impact fees across the board to match the revenue previously generated by proffers is sound. "Clearly, by broadening the base, you can lower the number [per house] and still come up with the same total."

The bill offers two caps for impact fees on single-family houses: $8,000 for those in the area covered by the Northern Virginia Transportation Authority and $5,000 for the rest of the state.

The bill's sponsor, Sen. John C. Watkins (R-Chesterfield), has said that the legislation would benefit home buyers most because developers typically pass along the cost of proffers to buyers. Toalson agreed.

"Every single penny of that $47,000 goes into the cost of that house," Toalson said of the average fee charged in Loudoun.

But the legislation has been opposed by slow-growth advocates, who have complained that the complicated and far-reaching bill was introduced without adequate time for review, a criticism echoed by several Loudoun supervisors.

The bill would "obliterate what we have worked [on] for 30 years with respect to the proffer system, only to destroy it in about 30 minutes' worth of work," York said.

"The impact to this county could be tremendously dramatic," said Supervisor Kelly Burk (D-Leesburg), "and I am shocked at how this bill has gone through with no study and no regard to what impact it will have on the Northern Virginia communities."