GUEST POST BY VAL GOULD:
On December 10th, New Castle County Council passed Substitute 1 for Ordinance 24-008, which calls for an update to the county’s impact fees for the first time since 1999. On December 26th, outgoing County Executive Matt Meyer vetoed the bill, drawing criticism from some council members. Impact fees are charged to developers and help the county pay for services such as fire, police, EMS, parks, and libraries.
Concerns over the higher fees stem from the typical practice of developers passing any increased costs on to home-buyers, increasing the cost of homes. For this reason, the newly proposed ordinance exempts affordable housing, moderately priced dwelling units (MPDUs), and non-profit housing from the fees, exemptions the County Code does not currently include.
The ordinance’s prime sponsor, Councilwoman Dee Durham (District 2), brought the bill forward for numerous reasons, including lagging emergency services near new construction in the southern part of the county and undue financial burdens on existing Delaware residents. According to Durham, existing New Castle County residents are currently paying to cover gaps in those services through their taxes as new developments continue to explode below the C & D Canal. “People coming from out of state are demanding services because they’re used to paying more taxes and having more services,” said Durham. “Right now, existing residents are paying for those gaps in service with their taxes.”
“The proposed ordinance is enabling legislation,” said Durham. “It sets the stage for the new [County Executive] administration to come back to Council by July 1st with a proposal to phase in cost-of-living adjustments to the impact fees, which are 25 years overdue and required bylaw.”
Councilman Kevin Caneco (District 12) echoed Durham’s sentiments, stating that the county “is facing a budget crisis and loss of COVID money,” the latter of which has helped provide effective and reliable services over the past several years.
After issuing his veto, Matt Meyer issued a statement regarding his decision. “Now is not the time to increase the cost of housing in New Castle County,” stated Meyer “The county is facing an unprecedented housing crisis, not only for the most vulnerable around us, but also for many working families across our community.”
Councilman Jea Street (District 10) agrees with Meyer and voted against the measure. “We have a housing crisis, and raising impact fees places an undue burden on homeowners,” stated Street.
However, with most new construction in the county going for over $400,000, Caneco argues that these homes are not affordable for the working class, and that any increased impact fees on these properties would be
“negligible considering the potential mortgage size and term length.”
“Affordability is a red herring,” said Durham. “Affordable housing and MPDUs are exempted from the fees.”
Another concern some councilmembers had was that, with Meyer on his way to the governorship, the ordinance should wait until the new County Executive , Marcus Henry, takes office later in January. “It isn’t fair to burden the incoming County Executive with a decision made this late in the prior administration,” said Councilman Penrose Hollins (District 4), who also voted against the ordinance
Councilman Brandon Toole (District 1) voted in favor of the bill and believes that, while council may not have given the incoming Executive a chance to weigh in, “neither did Matt Meyer.” (Editor’s Note: I LIKE this guy.)
“Someone purchasing a newly constructed home in New Castle County should understand that funding infrastructure to support their new community is expected. If they don’t want to pay impact fees, they should consider purchasing from our existing housing stock,” added Toole.
Councilwoman Durham stated she spoke with Marcus Henry and believes he supports the ordinance . Additionally, she said, County Code requires the council to regularly update the impact fees. “Those who voted against it are ignoring what our current code demands” she said.
Durham stated that she intends to present the legislation for a veto override vote at the council’s next meeting on January 14th . If the override attempt isn’t successful, she intends to bring it forward again the following week, once incoming County Executive Marcus Henry takes office.