Lakewood Developers Could Soon Be Required To Pay ‘Impact Fee’ For New Developments

Developers in Lakewood could soon be required to pay an ‘impact fee’ for all new developments they build, if the ordinance passes the Township Committee. The ordinance, which already passed its first reading, would require builders to pay a percentage-based fee for each development built, in order to help cover the costs of the infrastructure affected by the project.

Deputy Mayor Steven Langert explained, that when developers build a development, the infrastructure in the area requires certain upgrades, which currently place a burden on the Township. With the new ordinance in place, the upgrades to the infrastructure would become the responsibility of the developer.

The second reading is expected to take place at the next Township Committee meeting. TLS.

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57 COMMENTS

  1. Excellent idea?? Why?? You think that “cost” won’t carry over to the end user? Of course it will! So its just another way for us guys that r trying to buy a home to pay more and more!!

  2. To # 2

    It is an excellent idea! Why should all of the tax payers in this town bear the burden of connecting or upgrading utilities that only benefit your new home.

  3. Bravo! I didnt think Langert would be able to step up to the plate against the developers. Now lets see if this is just a way to look like they are doing something (i.e. percentage meaning .00001%) or if they are really trying to staunch growth for the benefit of the community at large.

  4. Finally. Many cities impose such fees, as when new people move into town, they impose many capital costs that are paid for by existing taxpayers. With this law, newer homes will pay for the costs that they impose.

    As for the argument that developers will pocket the money, that is untrue, as they already price their homes at the highest possible price. This law will just cut into their profit margins. Even if it does raise the home prices, it’s still fair, as why should existing homeowners pay for new infrastructure.

  5. What are you all saying????? More costs to the developers will mean more costs to your house. Developers are helping our community by building us houses to live in!! Why tax them? Its just another way for the town to make money!! Our taxes don’t get raised because of developments, our taxes are raised because there are a lot of houses.

  6. The fringe left has come to Lakewood, and it has power. Taxing production will only increase the cost on the consumer, abc of economics. Besides the premise is wrong, the costs are paid through property tax . And new infrastructure benefits everyone, so let’s tax all homeowners.

  7. The reason that the entire town should pay for it is because the town makes money in additional taxes for each new house put up. If developers make less money then they will build less houses which means that prices will go up because of the lower supply.

  8. Well… Thank you Deputy Mayor Steven Langert. The builders have made millions, and left infrastructure development to all Lakewood residents. It is about time that the builders pay for upgraded infrastructure that will support the homes and families for the new construction.

    Perhaps the additional cost will be passed on to the new homeowners, however they will have a better quality of life with infrastructure that supports the community needs.

  9. Probably the stupidest idea i’ve heard yet!! Most people simply don’t have the knowledge of whats really going on in town. The cost of real estate is going down, but the cost of building is rising (or stable) which means it simply doesn’t pay to develope anymore . The cost must pass on to the consumer, or else developing will stop

  10. it looks like number 16 is the only smart one. If all these taxes are being put on developers they will stop building. I personally know of a builder who said it is not worth it to build in lakewood anymore because houses dont go for a lot and it costs a lot of money. What do all you people want?????? Free houses??????? life costs money! stop putting taxes on other people and deal with it yourself.

  11. This is an excellent idea. Yes, the cost may be passed on to the homebuyer but since it’s his or her home that is causing the town to make the infrasatucture upgrade, it is only fair they (and not the rest of the town) pay for it. The property taxes collected on the house are not large enough to pay for the capital improvments to infrastructure that are required. Propery taxes generally only cover the cost of ongoing services (police, etc).

    Thanks Steve. You have always looked out for the average guy in town and we appreciate it.

  12. This idea is just going against developers- they are already suffering in the current economic climate- do you want them to stop building altogether so that no new taxes can be generated? Steve Langert thinks that most people don’t understand building nuances (which is quite obvious from the comments here) and will think it’s helping the community at large. This is not true- the buyers will have to pay more because the sellers simply cannot afford to make their prices lower! So new houses will not be bought, no new taxes generated & e/o loses!!!

  13. this may be the best idea i have ever heard , i love it , pass it on to the builders or the buyers , i dont care either way. we are destryoing the infrastructure of this town and it will cost money toupdate it. someone has to pay. should i a long time tax payer ????

  14. it seems no one has any idea about the real estate market in lakewood. houses are not going down at all and people are still in a buying frenzy. bravo mr. langert for finally seeing the light, although as #21 said, its definitely too little, too late…

  15. I wonder if all these negative comments are written by the builders…
    all the cheshbonos are very nice, but bottom line, why should I as a current homeowner pay for the upkeep of your new home?!

  16. number 26, are you a builder in lakewood???? Prices are still the same and people are still buying??????/ where exactly are u living? im guessing not in lakewood….

  17. maybe we should impose a fee for each new home to go to schools so we will have place for each child ex: a fee shal be imposed into a pot for each new family and will be divided to each school

  18. This idea is great.

    Here is why:

    1. Every time a developer puts up a few hundred succahs we all suffer with traffic and all kinds of crazy hock. In all fairness any hassle placed on the community created by the developers should be financed in full by the developers.

    2. If the developers will in turn flip the charge onto customers…guess what? Its a free market. If it gets too expensive people wont buy and they will need to lower their prices…free markets work.

    3. If as a result of the new charges to developers they can not (or claim they cant) afford to build anymore so then stop. Zero people told you to build. As it is, there is an over flow of people in this little town and no one will mind if people start thinking about living elsewhere.

    Also, even if it hurts developers who might then stop building (a good thing) house owners who rent out their basements will stand to gain. Because the more houses built….the more apartments….the less the demand. On the other hand, less succahs….less basements….more MONEY for stressed out home owner tax payers……

    Lets get this legislation passed.

  19. The Township benefits from from property tax on each new built up lot – money that was not there before – and that’s not enough, they still continue to burden the new homeowner even more. When does the township’s greed stop?

    (Large empty lot, property tax is $7,500 a year. Put 8 houses there, that becomes $70,000-$80,000 a year. That’s a profit of $70,000 year, $700,000 after 10.)

  20. The people commenting here and stating that the township gains when new houses are built because of the extra property tax revenue are wrong. There was a detailed analysis done by Rutgers University about 4 years ago and they determined that increasing “residential ratables” does not save a town money. This is because the extra tax revenues are more than eaten up by the extra services the new house and the people in it require (garbage, police, etc). Rutgers concluded that townships only gain if the new ratable is a commercial ratable because commercial properties require less township services.

    Lakewood Township is actually aware of this study and has concurred. That is why they (Menashe and others) were working hard on drawing new companies to industrial park. That helps lower the general tax burden. Residental developments don’t.

  21. The increased taxes of one additional home do not cover its costs – as a result the increased costs are spread to all taxpayers.

    There’s one solution – zero growth. Developers should only be allowed to replace existing housing units. Unchecked developement of new housing is overburdening the town; roads, water supply and the like can’t support the 250,000 residents some people are forecasting in the future.

    The township comittee should focus on the needs of it’s taxpayers not developers.

  22. What kind of a comment is, “too little, too late”?

    A little here & a little there adds up to quite a sum.

    People complain when nothing is done & again complain when something is done.

    Give credit where credit is due.

    Steve has been doing a great job on the township & should be thanked. Not criticized with comments like, “too little, too late”.

    This is the right thing to do & every little bit helps.

    As others have stated, the expense of new housing should be paid for by those building or purchasing the homes, not the entire township.

    I salute Mr. Langert & encourage him to continue advocating for the people & getting expenses under control.

  23. I was waiting for this day, when developers would pay for the increased cost like trafic lights, roads ect. It would also be a good idea not to allow eareas to get too dence, by giving ordenances freely.

  24. YES the cost will go over the potential buyer, but don’t forget that the developer will make sure that it costs as least as possible. The township does not care because they just force the cost down everyones pockets! and someone on the northside of the lake shoulnt have to pay for upgrading infrastucter on the south side.

  25. Great Idea. Why does our tax money have to go to developers. In all towns before bulding a development there are servays take before hand, which figure out how much extra costs will be on the town, and the bill is given to the developer.

  26. Let us tax car sellers because of the burdens they put on the township, more cars more traffic, more traffic more road repairs, more traffic more police work….. And they should also fund our gas stations and mechanics, because they increase the need.

  27. the developers already charge as much as they realistically can in order to sell the house. if they could charge more they would. thus, his tax will not be passed on to the buyer. it will only mean that the builders will have a little less profit.

  28. Maybe this will help Lakewood retain its name Lakewood, we are to crowded,Lets keep some of the woods in Lakewood. Used to be we had trees, now all we have is cement. Doesn’t the planning board ever look at what is going on in the town, cut down on the permits to build.

  29. @ Shtickel Herring. 2:16pm

    You say we should not impose an Impact fee “or else developing will stop”

    I say hooray!!!  Let the development stop. Genuk shoin. I know this is not so popular to say; but, it must be said: we are way overbuilt in Lakewood. 

    The infrastructure cannot keep up with the development. Therefore, instead of banning new development, our Mayor and Township committee did the right thing. 

    Yes, If you want to move into a new development, you must pay for it.  You write: “the cost must be passed on to the consumer” 
    Well, boo hoo, Of course the homeowner will pay!! Vus iz shlect.

    If you want to buy a new car, you pay more. Used is cheaper. 

    We shlumpy taxpayers of Lakewood don’t have to pay for it. 
    You do. You want to live like a shvitzer? Tzul. pay. 
    If somebody is in need of housing, and they cannot afford this fee, my advice would be buy a preowned house rather than a house in a new development and it will be cheaper.

    Kudos to all those on the committee that voted yea.  

    One more point Reb ” Shtickel herring” if I like matjas herring and you like pickled herring. When I go to the store I have to pay more for my ta’avos than you do, because pickled costs less than matjas. 

     Should the pickled herring guy subsidize the matjas guy. Of course NOT.   

    My choice. I pay more.  So should those individuals who like new housing. 

  30. to little to late , lakewood is already way to over built , but thats the plan we have been told “we want to be a city” so with that comes all the problems cities present . I find all the building very offensive to those who moved here years ago to get way from “city” environment

  31. Great Idea should have been done long ago.
    Yearly property taxes barely if at all cover the extra costs police,school transportation…
    The developers won’t lose . The only ones to lose are investment property owners. Developers have an idea about the maximum consumers will pay for a given house in a given location.
    Based on the potential selling price minus the developers expenses ,the developer comes up with a offering price on buildable land that is for sale. By passing along the above mentioned costs to developers they will simply bid less for existing land.
    So logic dictates that only existing landowners (and land already owned by the developer) will be hurt.

  32. Terrible idea.Why should only new people buying in Lakewood and those who built new houses in the past be exempt?Why only developers and not builders of private homes?And how does someone who lives in new construction themselves have the nerve to complain about overcrowding?

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