A move by Kent County Levy Court commissioners meant to encourage construction also will reduce funding the county provides to school districts.
The ordinance change to the Building Permit Fee Surcharge is to be introduced at Levy Court’s next business meeting, scheduled for March 9. It was removed from the Feb. 23 agenda when Commissioner Eric Buckson, who sponsored it, was unable to attend the meeting.
The change reduces by half the amount of education surcharge levied on nonresidential construction and eliminates the surcharge for residential construction if a mitigation payment has been made under the county’s Adequate Public Facilities Ordinance for schools.
In an email to the Dover Post, Buckson said he felt the current surcharge was “disproportionately high” when compared to other permit fees.
“This may be a hindrance to small businesses trying to start up in Kent County,” Buckson said.
Under the current ordinance, businesses looking to start up in unincorporated areas of the county pay a 1.25% surcharge calculated on the building’s value.
The money is set aside to provide financial assistance to the six school districts in the county and only may be used for capital improvements.
The county’s Adequate Facilities Ordinance for schools allows Levy Court to collect an impact fee meant to offset the effect of additional children coming into the district when new housing is approved.
Between 2006 and 2009, the county collected approximately $466,000 from the current Building Permit Fee surcharge, spread among its school districts. The Lake Forest district received the most cash, approximately $197,000, while the Woodbridge district, which has only a small presence in the county, received approximately $10,000.
Buckson feels the fee is “out of character” with the rest of the AFPO surcharges and “it is unfair that the county requires school surcharge fees and our sister municipalities do not.”
The proposal has the support of Jennifer Casey, executive vice president of the Homebuilder’s Association of Delaware.
“At a time when new construction starts should be driving job creation and the economic rebound, this industry is under attack from all sides,” Casey wrote in a letter to the commissioners. “This elimination of duplication in fees will offer some relief to the homebuilders in Kent County.”
Understandably, however school administrators are not in favor of the idea.
“I’m sure he’s looking at it as a way to bring other businesses into the community, but from my point of view, it will hurt the school district and the community,” said Dr. Kevin Fitzgerald, superintendent of the Caesar Rodney School District.
