THE VIRGINIAN-PILOT 
              Copyright (c) 1995, Landmark Communications, Inc.

DATE: Saturday, February 4, 1995             TAG: 9502040356
SECTION: LOCAL                    PAGE: B3   EDITION: FINAL 
SOURCE: BY FRANCIE LATOUR, STAFF WRITER 
DATELINE: CHESAPEAKE                         LENGTH: Medium:   62 lines

IMPACT FEES, A STAPLE IN MANY CITIES, FAIL IN CHESAPEAKE THE $3,000 FEE WOULD HAVE BEEN CHARGED ON EVERY NEW HOME IN THE CITY.

A bill that would have allowed Virginia's fastest-growing city to demand fees from developers was shot down unanimously Friday by a legislative committee.

The bill would have given City Council members the power to impose $3,000 in fees for every new home built in the city; that money would offset the impact that those new homes have on schools, roads, utility lines and other services provided by the city.

But the House Committee on Counties, Cities and Towns voted against the bill, preventing it from returning to the House floor for further debate next week.

The defeat leaves Chesapeake with one fewer tool to ease pressure on a city that many local officials say is bursting at the seams.

``We thought impact fees would be the most effective means to address growth pressures, especially overcrowded schools and traffic congestion,'' said Chesapeake Planning Director Brent R. Nielson.

Based on the 2,700 permits for homes issued by the city last year, Nielson said, the law would have generated $8 million for various school and road projects.

``More than half the states in the country have impact fees,'' Nielson said. ``In every case, they are a proven revenue-generator.''

The city now has a system in which builders offer cash or other improvements in an effort to have their property zoned for homes. But that system is voluntary and doesn't apply to developers planning to build on land that is already residentially zoned.

``The proffers can vary from $300 to $6,000,'' Nielson said. ``But with impact fees, it would allow for certainty on how much would be paid for every home. It would not be negotiated.''

Nielson said the city would continue to explore other avenues of generating revenue for the city's strapped services.

Del. J. Randy Forbes, who sponsored the bill, said he was not surprised by the outcome: He had said it would be an uphill battle when he introduced it two weeks ago.

``It really started its demise this week in subcommittee, when it went down 5-0,'' Forbes said. ``From then on, we knew it was pretty much downhill.''

But Forbes said the bill served its purpose: to let legislators hear the extent of the problem caused by growth, and to get all interested parties around the table and talking.

``One of the things we're already setting up to do is continue talks to come up with other alternatives to help Chesapeake with its growth problems,'' Forbes said.

One of those alternatives, Forbes said, is a bill that would create a state grant program to fund school construction in areas of rapid growth.

Virginia is one of a handful of states that does not pay to build schools. Localities must pay for building their schools.

There is still no money in the pot for the grant program, which passed the House this week 100-0. Forbes said appropriating that money will be the next step. by CNB