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Wednesday, January 15, 2014

Virginia Supreme Court ruling costly for James City

James City County
“The Virginia Supreme Court ruled Friday that the county has to return proffer money to five developers and pay their attorney and court costs, settling a case that has spanned more than two years. In the end, the county will refund $270,000 in proffer cash to the developers of Windmill Meadows, White Hall, Liberty Crossing, Williamsburg Landing and Stonehouse, Deputy County Attorney Adam Kinsman said Monday. It will also have to pay interest, likely 6 percent.

The case involves the timing of when proffers are paid to the county. In 2010, the General Assembly limited localities' ability to collect cash proffers early in the development process. Instead, new legislation prohibited localities to collect them until just before a certificate of occupancy was issued.

At the time, James City had proffer agreements outstanding that predated the legislation, so the county continued to collect proffers early, in accordance with its agreements. Windmill Meadows developer Lawrence Beamer said he raised the issue back in 2011, and the county attorney advised him to send a memo to the county. He did so, with the help of the Peninsula Housing & Builders Association, and the county responded by filing suit against him and other affected developers, he said.

The county suit asked the Circuit Court to sort out whether the legislation should apply to proffer agreements retroactively. The legislation did not specifically say whether it should have been, only that it applies to ‘any’ proffers. In early 2012, Judge Robert W. Curran ruled in favor of the developers.”
~Writes Cortney Langley of the The Virginia Gazette

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