The Delaware Healthcare Association speaks out against proposed impact fees proposed by Dover City Council.
Earlier this summer, City Council proposed charging $1 per square-foot of building space on tax-exempt properties larger than 50,000 square feet, netting the city $12.9 million in revenue.
Among the entities affected would be Bayhealth Hospital and the Delaware Healthcare Association is joining other nonprofits to oppose the plan, raising legal and policy questions. DHA president and CEO Brian Frazee.
“We understand the financial pressures that the city is facing and appreciate the challenge of developing a balanced budget while continuing to provide critical services to residents because that’s what our hospitals face every day.” he said.
Frazee adds the new impact fee would negatively impact city healthcare providers.
“We’re being asked to do more with less at both the federal and the state levels, and we’re facing a lot of major headwinds that will impact our members now and into the future.” he said.
Proponents say that tax-exempt properties are not paying their fair share for using city services.
Frazee argues healthcare providers contribute to the community in many other ways.
"And they do that through providing robust community benefits- examples include hospital charity care, free health screening, mobile health units, school-based health centers, free vaccine clinics and more. These benefits keep communities healthy and allow for our residents to thrive, really meeting folks where they are." he said.
Introducing an impact fee requires a change to Dover’s city charter, which needs approval from the General Assembly..
Dover’s state Senator Trey Paradee previously called that “politically impossible,’ and questioned if creating such a fee is constitutional in Delaware.
