Georgia County Mulls Implementation of Impact Fees, Taxes

The Jonesboro (Ga.) News-Daily reports today about impact fees, which are touted as a source of financial support for communities’ infrastructure demands generated by high growth.

Starting Monday, a series of public hearings will commence to gauge the sentiments of Clayton County residents on whether to adopt such an impact fee system and how they ought to be implemented.

The Clayton County Board of Commissioners is moving closer to rewriting zoning laws that will most likely include impact fees.

The firm researching the pros and cons associated with instituting impact fees in Clayton County will present its findings in June or July. Then, the commission will make a decision.

In the Atlanta housing market and surrounding counties, impact fees are one-time assessments levied against real estate developers, either before or shortly after they purchase a permit to build on a property.

In theory, the fees offset the financial strain that new development will have on services - such as providing new roads, schools, water, sewage, and public safety - making Georgia mortgage costs and property taxes lower.

Neighboring Henry County began impact fees during a building boom in the early 1990s. It was the seventh fastest growing county in the nation from 2000-2005. In one year alone, impact fees netted $11.4 million.

Impact fees, while desired by some, face a tough sell.

Clayton County Commissioner Wole Ralph believes Clayton County has missed a great opportunity to improve the infrastructure by not having them sooner.

“Clayton County hasn’t managed it’s growth wisely,” said Ralph.

“[This mismanagement] has “created a proliferation of low-value, low-cost housing, which has caused a strain on the infrastructure on the county. Higher-value houses are skipping us and going over to Henry, Ralph said.

Ralph, who supports impact fees, said the absence of fees in Clayton County has kept property values so low the county must charge the citizens higher property tax rates to provide basic services.

“We don’t have the benefits of higher-value housing to absorb some of the costs of those services,” he said. “The county budget is currently being generated from low-income housing. What you don’t want to become is the low-cost, low-value housing market.”

“You want property that will raise values and keep property taxes low.”

Ralph said many of the houses in Clayton are $150,000 or less, making them affordable for the average home mortgage loan seeker.

That’s all well and good, but he believes impact fees would encourage area home builders to also build new homes in the $250,000-450,000 range, making Clayton County more attractive to potential developers and retailers - thus raising the property values of every piece of real estate.

He said even if home loan costs rise, an increase in home values would bring better services to the county as well as encourage leaders and intellectuals to stay in the county, raising quality of life across the board.

In February, Clayton County Fire Chief Alex Cohilas gave a very detailed presentation to the commission on the benefits of impact fees.

He argued that the fees have been widely used in Georgia since 1990 and they would have a positive affect on job growth, property values, and quality development.

Follow the link to continue reading in the Jonesboro News-Daily …