Record growth is rolling toward Chester County. Who will pay for it?
Among area communities delving into fees on growth, Chester County isn’t like the others.
Which is the whole point.
“It don’t take a rocket scientist to figure out that there’s more homes being built in York County, there’s more homes being built in Lancaster County, and growth is moving this way,” said Shane Stuart, supervisor for Chester County. “So we have to be able to address that concern.”
Throw a dart at a map of York County, and it’s likely to hit some place that’s studied, starting or collecting fees on growth, known as impact fees. Miss to the Lancaster side of the map and you’ll hit Indian Land, and it’s the same. Now Chester County is in the mix.
An impact fee is a charge on new construction; the money can be used for roads, schools and other public basic needs tied to growth in the area. Builders and developers pay the fees on new homes, apartments and businesses, but those costs can be passed on to buyers and renters.
Fort Mill has fees. They’re being studied in Tega Cay, Lake Wylie in unincorporated York County and Indian Land. Those areas are seeing record or near record residential growth.
Chester County is not seeing record growth. In fact, leaders there said in recent months, Chester County needs more homes.
So, why is Chester County joining the trend?
“We’re trying to be as proactive as we can,” Stuart said.
Population estimates don’t show much movement in Chester County, but the possibilities are there. This spring, the county voted against a zoning change that would have allowed LGI Homes to put about 840 homes on 250 acres near Richburg. Several other large projects have come up for vote in recent months, involving homes, mobile homes and apartments.
On July 24, moments after Chester County Council got its most detailed update on what it would take to start charging impact fees, a county agenda had several items related to commercial and industrial growth.
That growth, even now, is putting Chester County on the map.
“That Gateway, in my opinion, has paid for itself double by now,” said Councilman Joe Branham. “This is one of the greatest assets that Chester County has ever gone out and endeavored to get done.”
The county’s Gateway District began in 2010. It’s roughly the area of Chester County between I-77 exits 62 and 65. The district is a focal point for mixed-use, commercial and industrial projects. Giti Tire already is there. Of the county’s 14 fee agreements — negotiated fees rather than taxes that large companies often agree to as an economic incentive — half are in the Gateway District.
County economic development leaders say other rural counties are holding Chester County up as a model. Branham said the Gateway plan is a big reason they’re in a “banner period” for economic development.
“Historically, like never before,” said Councilman Alex Oliphant. “It’s past banner.”
One of many questions county leaders have on potential impact fees is, should they focus just on that Gateway area or on the county as a whole?
“The growth is in Richburg,” Stuart said. “That’s not rocket science. It sounds like that’s where we’re moving.”
Some leaders have concerns about charging impact fees on one area, figuring that move may just drive growth to other parts of the county.
It isn’t unprecedented targeting just part of a county. York County did it in raising a school impact fee just for the Fort Mill School District. Lancaster County only is looking at Indian Land with its potential fees.
“All their growth is happening in the Indian Land area,” said Robby Moody with Catawba Regional Council of Governments, who is helping both counties study impact fees. “That’s where the need is.”
Charging such fees in one area isn’t a problem, Moody said, because the funds raised would have to go to that same area.
“It was all for improvements within that district,” he said, referring to the Indian Land plan. “The concept is it’s serving the people who are generating the need.”
Moody said he is meeting with Lancaster County leaders in August to “see if they want to move forward” on impact fees. Lancaster County has been discussing them for about a year.
It could take a year for Chester County to get anything done, too. County leaders have to come up with a needs list and perform a study on what items they would fund. Fire service, law enforcement, medical service and more were discussed Tuesday. Schools aren’t likely, since the district could have its own fee.
“The big ones in my mind now are fire prevention and EMS, and maybe some government services,” Stuart said.
Councilman Archie Lucas has concerns about people going through rough spells. He doesn’t understand why a Habitat for Humanity home would be charged such a fee. Moody said those homes wouldn’t be exempt, though the county or another group could set up a fund to pay the fee for a nonprofit.
“We might have possibly one a year,” Lucas said about a Habitat home. “And they can’t waive the fees, and yet Habitat is going to build the person a home for no cost, no charge for materials? I disagree with it.”
Councilman Pete Wilson has concerns if impact fees cover too large an area. While it could cover large developments in Richburg, other parts of the county may have a single house going up at a time. A development agreement wouldn’t impact the single home.
“That’s not going to impact one person building a home,” Wilson said. “But impact fees cover everybody.”
As the county waits on impact fee work, the short-term solution is development agreements. A large project coming in could negotiate an agreement with the county to include land or money for public services. Impact fee proponents say development agreements are helpful, but provide piecemeal improvements compared to the fees.
York and Lancaster counties have used development agreements in the past to secure land and cash for services.
Chester County isn’t seeing what its neighboring counties are now, at least on the residential growth side, there is an expectation that more growth is on the way. It’s up to county leaders whether impact fees will be used to prepare for it.