The Lancaster County School District will review its fee on new home construction to see if it’s high enough, and if it should spread beyond the Indian Land panhandle.
The school board voted last week to study impact fees, a charge on new home or apartment construction to create revenue for school capital projects. Four years ago, Lancaster County Council approved a fee that’s now about $9,000 per home and nearly $10,000 per apartment.
It applies to properties north of S.C. 5, the highway that crosses the panhandle near Van Wyck.
Those fees are lower than similar ones in neighboring communities, they exclude many homes under construction and they don’t apply where a new wave of residential growth is expected.
“We are still reacting to growth in the panhandle,” school board Chairman Melvin Stroble said Thursday at a joint meeting with his board and the county council. “Our goal is to get ahead of growth as it is sprawling toward Lancaster and into Kershaw.”
The council would make the final decision on any changes, including the fee amount or what parts of the county would require fees.
The school board is thankful for the $900,000 collected so far in impact fees, Stroble said, but that amount only goes so far. A failed $588 million bond referendum last November included a new elementary school in Indian Land costing $93 million.
“Impact fees are like a Band-Aid on a gaping wound,” said Council Chairman Brian Carnes. “It’s going to help a little bit, but it’s not going to do what needs to be done. It’s just a small part of that process.”
The school board wants to see if impact fees can become a bigger part.
In Fort Mill, schools got more than $18,000 per new home in 2018, and recently applied to York County Council for a nearly $30,000 per home fee. There’s also concern in Lancaster County that the fee doesn’t apply in enough places.
The county exempted new homes from the fees if developers submitted a site plan prior to the 2021 vote to create school impact fees. Other county land use changes that year and saturation in the panhandle have largely stopped new residential projects in Indian Land.
So now, most of the homes under construction in Indian Land are from earlier agreements, and aren’t required to pay impact fees. School board member Revery Johnson said thousands of houses are being built within 5 miles of his Indian Land home.
“So those houses are being built, even though we’ve shut down new ones,” he said. “That’s fine. The houses are being built. They will have children. We have to deal with them.”
Councilman Jose Luis questioned whether the county could amend its impact fee rule so that it would apply to all developments under construction in Indian Land. Changing the approved exemption would be tricky. It’s hard to get a legal opinion from the state on whether the county could to it, said County Administrator Dennis Marstall.
“It’s untested,” he said.
For the school board, a new impact fee study would consider countywide collection since areas like Catawba Ridge, Edgewater and the city of Lancaster have tens of thousands of homes coming.
There are more than 26,000 lots countywide — more than half the number of residences that exist today — that are approved for home construction but don’t have one built there yet.
The South Carolina Revenue and Fiscal Affairs Office estimates Lancaster County will grow at a faster pace in the 15 years after 2020 than in the record-setting 20 years before it.
Still, school impact fees south of the panhandle are a nonstarter for some decision-makers.
“From talking to my constituents, no,” said Councilwoman Charlene McGriff, a former school board member whose council district covers downtown Lancaster. “North of (Hwy.) 5, is a different story.”
Councilman Steve Harper’s district surrounds the city, and touches rural areas in the westernmost and southernmost parts of the county. He could see impact fees if they target high-construction areas like Edgewater, but not if they cover more remote parts of the county to do it.
“There’s no way I’ll support approving impact fees below (Hwy.) 5,” Harper said. “Adding $10,000 to $15,000 will make houses unaffordable in my part of the world.”
Impact fees are an imperfect option but the school district doesn’t have many others, said Councilman Stuart Graham. He asked council to be receptive to whatever a study might find. There’s also the prospect that more rural areas could see increased growth pressures like Indian Land has, if the county does nothing.
Decisions limiting residential growth in the panhandle already are pushing construction south. Development won’t stop, Carnes said, but it could move.
The school district operates on a $182 million annual budget. The impact fee study will cost about $75,000. At more than 15,000 students and growing, the district continues to look for answers. All of them are expensive.
The board plans to set up a citizen commission and host public input sessions ahead of another school bond vote next spring. Total cost and project lists haven’t been developed.
The panhandle already has 53 mobile classroom units, or trailers, added onto school properties to meet capacity needs. That’s the most of any section of the county, Stroble said, and each new mobile classroom costs about $1 million.
The district has had discussions about the likely unpopular options of shifting attendance boundaries to better fit capacity needs.
“When you talk about attendance zones, parents love their schools,” said district Superintendent Raashad Fitzpatrick. “Communities love their schools. And so that is a sensitive topic.”
Impact fees won’t solve all growth and capacity problems, officials say. School bonds are still necessary. But impact fees at the right amounts and in the right places, they say, can help.
“We need to learn from our past mistakes and try to cut them off in the future,” Carnes said.
The Herald
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John Marks graduated from Furman University in 2004 and joined the Herald in 2005. He covers community growth, municipalities, transportation and education mainly in York County and Lancaster County. The Fort Mill native earned dozens of South Carolina Press Association awards and multiple McClatchy President’s Awards for news coverage in Fort Mill and Lake Wylie.