Economic Incentive Plan and Impact Fee Update Board of County Commissioners Work Session February 7, 2012

Purpose Economic Incentive Plan Background Economic Incentive Plan Recommendation Next Steps Impact Fee Update Presentation Outline

Provide an overview of 2009/2011 Economic Incentive Plan Status Report on various Impact Fee Reviews Purpose

Economic Incentive Plan and Impact Fee Update

Background Challenging Economic Conditions Required measures to allow continued development activity and support local businesses Extending permits and concurrency accounts would promote economic activity, help grow the tax base and create jobs Promoting Infill and Redevelopment minimizes sprawl and optimizes the use of existing infrastructure

Background BCC Adopted Economic Incentive Ordinance in 2009 and 2011 to support development activity and maintain revenues Benefits –Keep existing development projects active –Decrease refund requests of prepaid impact fees –Promote Redevelopment –Customer Service

Economic Incentive Plan 2009 Ordinance Extended Building Permits existing as of January 6, 2009 through December 31, 2010 Suspended Automatic Impact Fee Indexing –Fire 3.5%March 2011 –Law 2.5%March 2011 –Parks 7.4%March 2011 –Road 3.0%June 2011

Economic Incentive Plan 2009 Ordinance (cont.) Waived Increased Impact Fees (Roads, Law and Fire) for Changes in Use –Existing Buildings –Same Building Footprint –Located in Urban Service Area (USA) –Required to be consistent with Comprehensive Plan and Existing Zoning Currently evaluating impact of this provision

Economic Incentive Plan 2009 Ordinance (cont.) Modified Concurrency Provisions Capacity Encumbrance Letters –Extended for one year (from 180 days) Capacity Reservation Certificates –Extended for 5 years (from 3 years) –Allowed for Incremented Payments over extended period of time Ordinance Provision expired December 31, 2010

Economic Incentive Plan 2011 Ordinance Extended 2009 provisions for one year (retroactive to January 1, 2011) –Suspended Impact Fee Indexing until fees are updated –All Impact Fees will be updated this year Ordinance expires on March 31, 2012

Recommendation Amend Ordinance to extend provisions until March 31, 2013 Benefits -Keeps development projects alive -Fosters infill and redevelopment -Protects revenues -Continued customer service

Next Steps Public Hearings LPA Public Hearing (February 16, 2012) BCC Public Hearing (March 6, 2012) Staff will bring back recommendations related to Change of Use No Action Requested at this time

Economic Incentive Plan and Impact Fee Update

Impact Fee Update Background Definition: Impact Fees are one-time assessments charged by local governments to new development to fund a proportionate share of capital improvements attributed to that development.

Impact Fee Update Background Impact Fees –Fire/Rescue Services –Law Enforcement –Roads –Parks and Recreation –Schools For Capital expenditures only

Impact Fee Update Background Require periodic review In May 2011, BCC approved 25% reduction School Impact Fee updated in June 2011 Consultants finalizing or completed updates

Impact Fee Update Review Process Development Advisory Board (DAB) LPA Work Session LPA Public Hearing BCC Public Hearing

Impact Fee Update Review Status Transportation Impact Fee LPA (February 16, 2012 & March 15, 2012) BCC (TBD) Parks and Recreation DAB (February 15, 2012 & March 7, 2012) LPA (March 15, 2012 and April 19, 2012) BCC (TBD) Law Enforcement and Fire/Rescue Drafts under final review

Economic Incentive Plan and Impact Fee Update Board of County Commissioners Work Session February 7, 2012