Cash proffers: Difference between revisions

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The [[Board of Supervisors]] adopted a cash proffer policy in October 2007 that established a formula that calculated the cost each residential unit would create in terms of additional government services. For instance, each student in Albemarle schools costs about $12,000 a year to educate. That's one factor in the "Cost-Revenue Impact Model" formula that also involves the [[Albemarle County Capital Improvement Program|capital improvement program]].  
The [[Board of Supervisors]] adopted a cash proffer policy in October 2007 that established a formula that calculated the cost each residential unit would create in terms of additional government services. For instance, each student in Albemarle schools costs about $12,000 a year to educate. That's one factor in the "Cost-Revenue Impact Model" formula that also involves the [[Albemarle County Capital Improvement Program|capital improvement program]].  


In September 2014, the [[Board of Supervisors]] directed the [[Fiscal Impact Advisory Committee]] to study the policy in order to determine if any changes should be made given development trends. Some developers such as [[Southern Development]] opted to build by-right resulting in a lower density than called for in the county's [[Comprehensive Plan]].  <ref>{{cite web|title=Group begins process of reviewing Albemarle proffer policy|url=http://www.cvilletomorrow.org/news/article/19375-proffer-policy-review/|author=Sean Tubbs|work=|publisher=Charlottesville Tomorrow|location=|publishdate=October 29, 2014|accessdate=November 16, 2015}}</ref> Other developer had asked for and received credits and the group was to study whether that was appropriate and perhaps expandable.  
In September 2014, the [[Board of Supervisors]] directed the [[Fiscal Impact Advisory Committee]] to study the policy in order to determine if any changes should be made given development trends. Some developers such as [[Southern Development]] opted to build by-right resulting in a lower density than called for in the county's [[Comprehensive Plan]].  <ref name="fiac-directive">{{cite web|title=Group begins process of reviewing Albemarle proffer policy|url=http://www.cvilletomorrow.org/news/article/19375-proffer-policy-review/|author=Sean Tubbs|work=|publisher=Charlottesville Tomorrow|location=|publishdate=October 29, 2014|accessdate=November 16, 2015}}</ref> Other developer had asked for and received credits and the group was to study whether that was appropriate and perhaps expandable.  


The group held a total of 18 meetings and over the course of their work were told about changes in state law that affected the formula. Localities can no longer include maintenance projects included in the capital improvement program. <ref>{{cite web|title=Albemarle panel briefed on lower cash proffers, policy changes|url=http://www.cvilletomorrow.org/news/article/22099-planning-commission-cash-proffers/|author=Sean Tubbs|work=|publisher=Charlottesville Tomorrow|location=|publishdate=September 22, 2015|accessdate=November 16, 2015}}</ref>
The group held a total of 18 meetings and over the course of their work were told about changes in state law that affected the formula. Localities can no longer include maintenance projects included in the capital improvement program. <ref>{{cite web|title=Albemarle panel briefed on lower cash proffers, policy changes|url=http://www.cvilletomorrow.org/news/article/22099-planning-commission-cash-proffers/|author=Sean Tubbs|work=|publisher=Charlottesville Tomorrow|location=|publishdate=September 22, 2015|accessdate=November 16, 2015}}</ref>

Revision as of 12:24, 16 November 2015

Cash proffers are contributions that developers agree to pay per unit in exchange for a rezoning. They are part of a contract signed between government officials and developers and are binding. See also Proffers.


Albemarle County

The Board of Supervisors adopted a cash proffer policy in October 2007 that established a formula that calculated the cost each residential unit would create in terms of additional government services. For instance, each student in Albemarle schools costs about $12,000 a year to educate. That's one factor in the "Cost-Revenue Impact Model" formula that also involves the capital improvement program.

In September 2014, the Board of Supervisors directed the Fiscal Impact Advisory Committee to study the policy in order to determine if any changes should be made given development trends. Some developers such as Southern Development opted to build by-right resulting in a lower density than called for in the county's Comprehensive Plan. [1] Other developer had asked for and received credits and the group was to study whether that was appropriate and perhaps expandable.

The group held a total of 18 meetings and over the course of their work were told about changes in state law that affected the formula. Localities can no longer include maintenance projects included in the capital improvement program. [2]

For instance, the figures according to the formula in 2015 are $20,987 per single-family dwelling, $14,271 for each townhome and $14,871 for each unit in an apartment complex.

But dropping maintenance projects from the calculation means Albemarle could only charge $4,918 for each single-family unit, $3,845 for townhomes and $5,262 for each apartment unit.

Many Albemarle County developers are considering rezonings that would allow them to lower the amounts originally agreed to but the Board of Supervisors has not yet determined a process. [3] However, developers whose projects were rezoned prior to 2007 are already locked in to the lower rates. For instance, Great Eastern Management Company will only pay $515 for each unit in North Pointe. [1]


Charlottesville

Cash proffers are much rarer in the city of Charlottesville. There are no cash proffers associated with a special use permit.



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References

  1. 1.0 1.1 Web. Group begins process of reviewing Albemarle proffer policy, Sean Tubbs, Charlottesville Tomorrow, October 29, 2014, retrieved November 16, 2015.
  2. Web. Albemarle panel briefed on lower cash proffers, policy changes, Sean Tubbs, Charlottesville Tomorrow, September 22, 2015, retrieved November 16, 2015.
  3. Web. Supervisors to consider streamlining of rezoning amendments, Sean Tubbs, Charlottesville Tomorrow, November 14, 2015, retrieved November 16, 2015.