CFPUA Further Revises Vesting for Commercial Buildings

As you may recall, BASE worked for a number of months on vesting issues regarding commercial buildings which were permitted under the old New Hanover County water and sewer fee structure and were finishing their upfits under the new CFPUA fees. These buildings were permitted prior to July 1, 2008 when CFPUA became “live” and spanned the old and new methods of impact fee calculation. At issue was the situation where a building owner or developer was caught in the middle of the two ways to calculate fees and was being forced to pay the new CFPUA structure based on water meter size.

In late 2010, at the request of BASE, the CFPUA board voted unanimously to amend its policy and enable vesting for those projects caught in between. In February 2011, the CFPUA Board further amended its policy to expand the provisions and more fully encompass apartment and multifamily projects that may be caught. Specifically, for projects that were permitted prior to July 1, 2008, the owner can elect to use the old impact fee calculation method based on use OR the new CFPUA method based on water meter size. The choice is binding, but credit will be given should the meter have to be switched out at a later date for a larger size. All in all, it is an equitable solution to a complex issue and should positively impact commercial building owners pursuing upfits and tenants.