Proposed 400% Increase would have Slowed Commercial Development
In June 2007, the Prince William Board of County Supervisors voted not to increase proffers after Regional Chamber members spoke against proposed increases that would have slowed commercial and residential development.
Regional Chamber Chairman of the Board Rebecca Barnes of Bargain Boxes Moving & Storage and Chairman-Elect Jo Ann Bell of Virginia Commerce Bank led a dozen members in speaking before the Supervisors. Barnes and Bell described the negative impact high proffers have first on commercial and residential development and then all in the business community.
Barnes said, “Increased commercial proffers and the resulting slowdown in commercial building would adversely impact Prince William’s desires for economic development. And proffer increases in the residential building industry increase the cost of housing thus adding to our already-critical affordable housing crisis. And they deter the kind of commercial development – including high-end retail – that depends on a healthy housing footprint.”
Barnes and Bell were followed by representatives from the commercial development industry that included Burgess & Niple and the Peterson Companies, who said proffer increases could make Prince William County a less profitable place to build when compared with other jurisdictions outside the Capital Beltway. One testifier pointed out that commercial proffers in Loudoun County are less than 25 cents per square foot, but Prince William was considering taking its commercial proffers to $2.33 per square foot!
Several pastors next reminded Supervisors that places of worship are subject to commercial proffers, noting that the proposed proffer increase could add more than $100,000.00 to the cost of building a new church!
The residential building community then spoke, noting that residential developers are experiencing a serious slowdown and that the proposed proffer increases would further depress the housing industry, next affecting related sectors and finally all businesses in Prince William.
Bell summarized the concerns of Regional Chamber members, when she said, “Those taking a superficial look at proffers believe they are a quick way to way to obtain more revenue from the development or faith communities. The reality is that raising proffers – when an increase is not justified or when the economy makes it unwise to do so – can lead to serious negative consequences for Prince William’s economic vitality and quality of life.”
The proposal before the Board of County Supervisors would have increased commercial proffers from 61 cents to $2.33 per square foot. Residential proffers would also have been increased significantly, with proffers for single family homes rising from $37,000 to $51,000 per home.
Click to view Chamber testimony:
Prince William County Proffers
