Senate Bill 768 – Conditional Zoning

Currently, Senate Bill 768: Conditional zoning; replaces cash proffer system with system of impact fees is being reviewed at the Virginia General Assembly. If Senate Bill 768 were to pass the General Assembly it would eliminate Virginia’s proffer system in favor of impact fees with a capped rate.

Development Impact Fee – a monetary fee that is applied to all new forms of development. Development impact fees are instituted when an applicant files for a building permit.

Proffer – a form of conditional zoning in which the owner of a property makes a commitment to perform a specific task in exchange for a rezoning request. Proffers are instituted when an applicant files for a rezoning request.

Opponents of the bill believe that the proffer is not equitable because of the cap system. Advocates of the current proffer system like the existing system because proffers can be commitments to affordable housing, public infrastructure improvements, new facilities, or monetary funds. These also believe that proffers are more equitable than development impact fees.

However, opponents of the proffer system oppose proffers because proffers are only applied to developments that require rezoning. They believe that every new form of development should be subject to a fee.

The Albemarle County Board of Supervisors has officially decided to oppose the bill. According to Charlottesville Tomorrow, Albemarle County Supervisor Dennis Rooker said that “if this law had been in effect at the time the Biscuit Run rezoning was approved, the County would have received $25 million less in proffers. He said the total proffers from Biscuit Run were valued at about $41 million.”

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