Anne Arundel building fees could multiply – up to four times

Developer fees used to expand schools and roads in Anne Arundel are expected to multiply this year, but questions remain as to how much and when the fees will increase.

Three County Council members and County Executive John R. Leopold are sponsoring a bill aimed at increasing impact fees — money a developer pays for expanding roads, school and public safety to accommodate their new project — as high as four times the current amount, depending on the size of the new house.

“This is a significant step forward to securing the revenue that is much needed for our infrastructure,” Leopold said.

The current flat $4,000 fee per housing unit, for example, would change based on square footage — the bigger the house, the higher the fee — a model similar to what neighboring Howard County uses.

The fee would be phased in over two years.

If housing and commercial development remains robust, more money would come into the county’s coffers to improve roads and public safety as well as help solve the $1 billion school construction backlog.

Of course, that’s the proposal as of today, and even the bill’s sponsors believe those figures and dates will change before passage. The impact fee debate has been rumbling since January, and Leopold has pulled one version of the bill. The bill “will be amended several times,” said Councilman Ed Reilly, R-Crofton. “The devil’s in the details, as they say.”

Council Chairwoman Cathy Vitale, R-Severna Park, and Councilman Josh Cohen, D-Annapolis, are the other co-sponsors.

But developers have said higher fees could mean higher housing costs for buyers.

However, the county expects to see 20,000 new jobs in the next five years thanks to expansions at Fort Meade and the National Security Agency. Anne Arundel officials say the county will not be in short supply of eager developers, despite the higher costs.

“We need to collect more money to cover the cost of services, and with a phase-in, it makes it more doable for all parties,” said Councilman Ron Dillon Jr., R-Pasadena.

Reilly said he wants to allow impact fee revenue to be available throughout the county where schools and roads need improvement despite a lack of new development as opposed to being restricted near the new project.

In fact, the county is challenging a ruling that could have Anne Arundel returning $2 million in unspent impact fee revenue.

“We have a single school system and money should flow to where the need generates,” Reilly said.

By the numbers

Some of the proposed fee increases for housing units in Bill 71-08 are: