Developers Rejoice Over Impact Fees Decision (news note)

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Today I’m unveiling a new column here at Construction Law in North Carolina called “News Notes”. News notes will be postings of current news items relating to the design (and construction) community. [This means that sometimes I must be a tad drier than my usual festive self. Consider yourself warned.] If you have an idea for a News Note, drop me a line.

Much to the delight of developers and realtors across the state, the North Carolina Supreme Court recently affirmed a decision which struck down local school impact fees. The fees had been assessed to fund construction of new schools in the Cary portion of the Wake County schools to help with the Town of Cary’s rapid growth.

Impact fees are usually enacted by local boards and town councils as Adequate Public Facilities Ordinances (APFO). In 1999, the Town of Cary began assessing school impact fees on developers in certain portions of the town which faced overcrowding. The revenue brought in by the fees was earmarked to pay for expansion of existing school facilities. Notably, the Town of Cary has no separate school system from the rest of Wake County, and did not have the legal authority to control the provision of school facilities within the district.

Please see full article below for more information.

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