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December 21, 2015Re: SUPPORT FOR BILL 111-15 – Public Works – Utilities – Allocation of Water and Wastewater Capacity, Charges and Fees for Properties Subject to Adequate Public Facilities, and Capital Facility Connection Charges?Dear Chairman Fink and Members of the Anne Arundel County Council:On behalf of the Anne Arundel County Chapter of the Maryland Building Industry Association (MBIA), I write in support of Bill 111-15. This bill cuts Capital Facilities Connection Charges by 25% and eliminates the 8% up-front deferral fee. Current fees, including the deferral fee, are set at $18,792 per dwelling unit. This legislation lowers those fees to 13,050 per dwelling unit with an expectation of a 2.5% yearly increase beginning in 2016, which will ensure both economic competitiveness and also a sustainable Capital Facility Projects fund balance.At a County Council work session on December 15, 2015, Economic Development head Robert Hannon stated that high fees, in particularly capital facility connection fees, are the most significant reason homebuilders and other commercial do not invest more heavily in the County. While Anne Arundel County’s home building market is generally strong due to high quality of life and strong public amenities, neighboring counties such as Howard and Baltimore boast similarly strong markets and amenities. Connection fees are $1,200 in Howard County and $1,450 in Baltimore County leaving Anne Arundel with a significant competitive disadvantage. This legislation is a significant step towards correcting that disadvantage and sending a message that “Anne Arundel County is open for business.”Given the $127 million surplus in the Capital Projects enterprise fund and the County’s desire to increase residential and commercial investment, now is the time to jump start the economy. A more competitive fee structure will lead to increased jobs, tax and non-tax revenues and better public and private amenities for Anne Arundel citizens. The MBIA urges the County Council to support this bill and thanks you for your continued support of the home building industry. If you have any questions about these comments and would like to discuss our position further, please do not hesitate to contact me at (410) 266-9700 or jkrapf@ or Josh Greenfeld at (443)515-0025.Best regards,Jim Krapf, Chair, MBIA of Anne Arundel CountyCc: County Executive Steve Schuh Councilmember John J. Grasso, Vice ChairmanCouncilmember Pete Smith, Councilmember Jerry Walker Councilmember Andrew C. Pruski Councilmember Michael Anthony Peroutka Councilmember Chris TrumbauerAmy TateBernie Marczyk ................
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