City of Alexandria, Virginia
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MEMORANDUM
DATE: APRIL 24, 2026
TO: THE HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL
THROUGH: JAMES F. PARAJON, CITY MANAGER
FROM: PAUL STODDARD, DIRECTOR, PLANNING AND ZONING
DOCKET TITLE:
TITLE
Consideration of a Resolution to Adopt a Department of Planning & Zoning Fee Increase for development and historic preservation fees under the Department of Planning & Zoning’s FY 2027 Fee Schedule
BODY
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ISSUE:
Consideration of a Resolution to adopt fee increases as part of the City’s Fiscal Year 2027 Operating Budget for the Department of Planning & Zoning’s (P&Z) Development Special Use Permit (DSUP), Development Site Plan (DSP), Final Site Plan (FSP), Coordinated Development District (CDD) and Historic Preservation land use application fees under the Department of Planning & Zoning’s FY 2027 Fee Schedule.
RECOMMENDATION:
That City Council adopt the attached Resolution (Attachment I) as part of the FY 2027 Operating Budget, effective July 1, 2026, to:
1. Increase by approximately 6 percent DSUP, DSP, FSP, and CDD fees;
2. Increase the current maximum of those fees from $80,000 to $120,000 per application;
3. Increase all Historic Preservation fees by approximately 15 percent; and
4. Establish a new Historic Preservation minor sign amendment fee of $207.
BACKGROUND:
Development Fees
Section 11-104, Establishment of Fees, of the Zoning Ordinance <https://library.municode.com/va/alexandria/codes/zoning?nodeId=ARTXIDEAPPR_DIVAADENORNOPUHE_11-104ESFE> authorizes the Director of the Department of Planning & Zoning, with the approval of the City Council, to establish a schedule of fees. The ’Department of Planning & Zonings FY 2026 Fee Schedule <https://www.alexandriava.gov/sites/default/files/2025-05/department_of_planning_and_zoning_fee_schedule_effective_july_1_0.pdf> reflects all fees currently charged by the Department of Planning & Zoning for land use reviews, namely development, non-development, historic preservation and zoning fees.
Development fees in the City of Alexandria have not increased for 8 years with their last increase in 2018. DSUP, DSP, FSP and CDD applications generally have higher fees than other land use application types which are typically not multi-entitlement layered and, consequently, are not as complicated as are many development type applications. Development reviews require substantial project management expertise, extensive knowledge of zoning and related regulatory processes and procedures, and wide experience in working with the development community, neighborhoods and other stakeholders. This proposed increase in development fees is reflective of inflationary impacts over the past 8 years, the volume of planned activity in the City, and the amount of associated staff time required to process the anticipated volume and to keep development projects on track. For each of the past three fiscal years, 7.98 (FY 2023), 2.68 (FY 2024) and 5.20 (FY 2025) million square feet of new development has been approved in the City.
In FY 2024, DSUPs, DSPs, FSPs, and CDD Concept reviews generated approximately $917,000 of the total $1.5 million in Planning & Zoning application fees that year. A 6 percent increase could approximately generate another $55,000 in FY 2027 in development fee-related revenue. While the increase does not match the total personnel costs associated with processing these types of cases, it helps in terms of increasing the level of cost recovery.
Historic Preservation Fees
Page 3 of the ’Department of Planning & Zonings FY 2026 Fee Schedule <https://www.alexandriava.gov/sites/default/files/2025-05/department_of_planning_and_zoning_fee_schedule_effective_july_1_0.pdf> shows approximately 40 fee types under 15 Historic Preservation land use application categories. Historic Preservation fees have not been increased in over 10 years. In FY 2024, the total Historic Preservation fees collected amounted to $64,878, and in FY 2025 the total fees collected amounted to $68,831.24.
Attachment II, which is the Department of Planning & Zoning’s proposed FY 2027 Fee Schedule, shows the Historic Preservation Fees under a proposed approximate 15 percent increase. Although it does not retrieve full cost recovery of services, the Department of Planning & Zoning believes this increase incrementally aligns the fee structure with inflationary costs and with the level of staff analysis and staff time associated with such reviews.
Additionally, staff recommends establishing a new Historic Preservation fee of $207 for a Minor Amendment to Sign Approvals. The Department of Planning & Zoning anticipates a small number of Sign Minor Amendments, based on past experience. Approximately two per fiscal year are anticipated. This part of the proposal is not intended to shore up revenue generation but, instead, it is because Historic Preservation Sign Minor Amendments do not currently have a separate application fee. Sign Minor Amendments are currently considered under Historic Preservation Commercial Minor Amendments. Historic Preservation Residential and Commercial Minor Amendments are processed administratively and their purpose is to seek minor tweaks to previous approvals by the Board of Architectural Review for a Residential Building Certificate of Appropriateness or a Commercial Building Certificate of Appropriateness entailing new construction, major alterations or encapsulation of buildings, under Sections 10-103 (A) and (B) of the Zoning Ordinance <https://library.municode.com/va/alexandria/codes/zoning?nodeId=ARTXHIDIBU_10-103CEPERE>, for a given property. Because Commercial alterations to an exterior of a building in a historic district could entail a number of changes, the fee is
$385. Changes to signage are generally much more limited in scope, having to do only with a sign change itself, but the applicant pays the full Commercial minor amendment fee. This distinction would set a fee for signage modifications, namely $207, that is much more aligned with the scope of the change proposed.
DISCUSSION:
Proposed Development Fee Increase: The 6 percent development fee increase, as proposed, would be applied as follows and is estimated to generate approximately $55,000 in additional fees per year:
• DSUPs and DSPs
o Existing: (DSUP) $3,300 flat fee plus $15/100sf; (DSP) $3,300 plus $15/100sf; (DSP) maximum $80,000.
o Plus an additional 5.2% of the total calculated fees for Code and Fire.
o Proposed: (DSUP) $3,500 plus $16/100 sf; (DSP) $3,500 plus $16/100 sf; (DSUP) maximum $120,000 and (DSP) maximum $120,000.
o Plus an additional 5.2% of the total calculated fees for Code and Fire.
• Final Site Plans (FSP):
o Existing: (FSP) $3,300 flat fee plus $15/100sf maximum $80,000.
o Plus an additional 5.2% of the total calculated fees for Code and Fire.
o Proposed: (FSP) $3,500 plus $16/100 sf maximum $120,000.
o Plus an additional 5.2% of the total calculated fees for Code and Fire.
• Coordinated Development District:
o Existing: (CDD) $3,300 flat fee plus $15/100sf maximum $80,000.
o Plus an additional 5.2% of the total calculated fees for Code and Fire.
o Proposed: (CDD) $3,500 plus $16/100 sf maximum $120,000.
o Plus an additional 5.2% of the total calculated fees for Code and Fire.
Proposed Historic Preservation Fee Increase: Historic Preservation fees have not been increased in over 10 years. As reflected in Attachment II, the Department of Planning & Zoning’s proposed FY 2027 Fee Schedule, pages 10 - 12, includes the proposed fee adjustments for Historic Preservation applications in FY 2027. There are approximately 40 fee types under 15 Historic Preservation land use application categories. In FY 2024, the total Historic Preservation fees collected amounted to $64,878, and in FY 2025 the total fees collected amounted to $68,831.24. The 15 percent proposed increase is expected to generate another $10,036 in FY 2027. Even with this proposed increase, it will not achieve the cost recovery level that is associated with the volume of work which the Department of Planning & Zoning’s Historic Preservation staff undertakes each year. For example, in FY 2024, the Historic Preservation staff of 6 processed 112 public hearing cases and 287 administrative cases for a total of 399 cases. In FY 2025, staff processed 152 public hearing cases and 257 administrative cases for a total of 409 cases.
FISCAL IMPACT:
The 6 percent Development Fee increase is expected to generate an additional $55,000 in new revenue.
The approximate 15 percent Historic Preservation Fee increase is expected to generate an additional $10,036 in new revenue.
ATTACHMENTS:
Attachment I - Resolution
Attachment II - FY 2027 P&Z Proposed Fee Schedule
STAFF:
Paul Stoddard, Director, P&Z
Morgan Routt, Director, Office of Management & Budget
Christina Brown, Deputy Director, City Attorney’s Office