1. Reduction and Deferral of Impact Fees Board of County Commissioners Discussion Item March 29, 2011

2. Purpose Impact Fee Reduction Deferral of Impact Fees Overall Presentation Outline

3. Discuss Commissioner Edwards’ Impact Fee Proposal Reduce all Impact Fees by 20% Allow Deferral of Impact Fees Beyond Certificate of Occupancy (CO) Purpose

4. Impact Fee Reduction Proposal Background Impact Fee Collections CIP Impact Survey of Other Jurisdictions Issues Requested Action

5. Impact Fee Reduction Proposal Reduce Impact Fees by 20% For eighteen months -Or until Ordinances are updated

6. Impact Fee Reduction 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.

7. Impact Fee Reduction Background (cont.) Impact Fees - Fire/Rescue Services -Law Enforcement -Roads -Parks and Recreation* -Schools* Payment due at building permit * Charged to residential uses only

8. Impact Fee Reduction Background (cont.) Indexed 2007-2009 Impact Fees Require Periodic Review -Updates for all Impact Fees due 2011 -Consultant Contracts Issued for Schools and Roads -RFP for Parks, Law, and Fire underway

9. Impact Fee Reduction Background (cont.) Review Process - Consultant Updates Technical Study -Technical Review - Development Advisory Board (DAB) - School Impact Fee Study Advisory Group - OCPS Accepts School Impact Fee Study -LPA/P&Z Worksession -LPA/P&Z Public Hearing -BCC Public Hearing -Six to Nine Month Process

10. Impact Fee Reduction Background (cont.) Key Factors -Land Acquisition Costs -Design and Construction Costs -Equipment Costs -Credits -Methodology Changes -Service Levels/Generation Rates

11. Impact Fee Reduction Impact Fee Collection

12. Impact Fee Reduction Impact Fee Collection

13. Impact Fee Reduction Impact Fee Collection

14. Impact Fee Reduction Impact Fee Collection

15. Impact Fee Reduction Impact Fee Collection

16. Impact Fee Reduction Three Year Average*20% Reduction Law$366,803$73,361 Fire$532,389$106,479 Parks$1,586,428$317,285 Schools$18,670,344$3,734,069 Roads$6,358,237$1,271,647 Totals$27,514,201$5,502,841 CIP Impact * 08-09, 09-10, 10-11 Projections

17. Impact Fee Reduction CIP Impact (cont.) Public Works Funding Sources - Impact Fees -Gas Taxes -Grants -Invest in Orange County -Pay-as-you-go/Prop share -International Drive CRA

18. Impact Fee Reduction CIP Impact (cont.) Impact Fee Fund Revenues Current Projections $57.0M $6.7M Actual Projected

19. Impact Fee Reduction CIP Impact (cont.) Projected Impact Fee Revenue 2011 - 2015 5-Year Total $56M $4.6M $19.7M $13.1M $18.6M

20. CIP Impact (cont.) Road Project Impacts Delay Lighting and Landscaping Further –Currently in FY 16 –Delayed Minimum of One Year Delay Start of Future Project Phases No New Studies (RCA’s) or Designs Impact Fee Reduction

21. CIP Impact (cont.) Future Project Impacts Obligations Under Existing Agreements Funding for Regional Developments (Horizon West; Innovation Way) Impact Fee Reduction

22. CIP Impact (cont.) Law Enforcement20% Reduction $73,361 Costs* - Vehicle and Equipment:$29,700 - Basic Officer’s Equipment:$ 3,900 *Cost to equip single officer

23. Impact Fee Reduction CIP Impact (cont.) Fire/Rescue20% Reduction $106,479 Costs - Fire Station Construction:$4.0M* - Fire Truck/Rescue Unit:$560,000 - Equipment for Apparatus:$190,000 *Excludes Land Costs

24. Impact Fee Reduction CIP Impact (cont.) Parks and Recreation20% Reduction $317,285 Costs -Two Baseball Fields$760,000 - Four lighted Soccer Fields$820,000 - Land Costs (per acre)$ 40,000 - Playground System$ 80,000 - Restroom Facility$300,000

25. Impact Fee Reduction CIP Impact (cont.) Schools 20% Reduction $3,734,069 Costs* - Elementary School$16M - Middle School$26M - High School$72M *Excludes Land Costs

26. Impact Fee Reduction Survey of Other Jurisdictions JurisdictionSuspended BrevardTransportation LakeTransportation SeminoleN/A PolkAll (Except Schools) OsceolaTransportation (non- residential) Potential 10% Reduction VolusiaN/A

27. Impact Fee Reduction Survey of Other Jurisdictions (cont.) JurisdictionSuspended OrlandoDeferred Update Change of Use HillsboroughN/A (Except for No Fee Zones) Palm BeachN/A (2005 Rates) PinellasN/A SarasotaTransportation 50% Schools

28. Impact Fee Reduction Survey of Other Jurisdictions (cont.) JurisdictionSuspended CharlotteAll Except Transportation Indian RiverFire, Law, Corrections, Public Buildings, Solid Waste LeeStudy Update 2011 Change of Use PascoFire, Parks, Library, Hurricane Preparedness St. Johns25% Reduction of Recently Revised Rates

29. Impact Fee Reduction Issues Adverse Impact on CIP Recently Suspended Indexing Many variables impact Development Decisions School Board must make recommendations on School Impact Fee Requires Ordinance changes May require refunds for Concurrency Reservation Fees

30. Action Requested Board Action on how to proceed?

31. Proposal Existing County Programs Issues Action Requested Deferral of Impact Fees

32. Proposal For Nonresidential Projects Valued Over One Million Dollars –Pay 25% of Impact Fees prior to CO – Pay 75% equally over years 2-4 – Require First Lien – 3% Interest on Deferred Fees – Equity Analysis Requirement Eighteen Month Duration Deferral of Impact Fees

33. Existing Programs Chapter 23 Certified Affordable Housing Projects Commercial Projects with Building Permit Values of at least One Million Dollars Defer Payment to CO or Pre-power of first building Requires Lien Allows one to two year savings to Developer Deferral of Impact Fees

34. Existing Programs (cont.) Chapter 23-141 (Schools) Multi-Family Projects Defer to CO Not to exceed eighteen months from building permit Letter of Credit required Deferral of Impact Fees

35. Existing Programs (cont.) Workforce Housing Pilot Program Public Purpose Allows Deferral of Impact/Capital Charges beyond CO Approved in 2009 Expires July 1, 2011 One Application has been received to date (District #4) Deferral of Impact Fees

36. Existing Programs (cont.) Certified Workforce Housing –40% of units rented to households with incomes not exceeding 80% of AMI –For 15 Year Period One per Commission District Urban Service Area Between 100 to 400 Units Deferral of Impact Fees

37. Existing Programs (cont.) Required Developer’s Agreement Construction must commence twelve (12) months from Effective Date of Developer’s Agreement Time certain for Impact Fee payment (54 months maximum) School Board Approval –For School Impact Fees –Capacity Enhancement Agreement (CEA) Modification Deferral of Impact Fees

38. Existing Programs (cont.) Criteria Financial Security - Letter of Credit (LOC) -U.S. Treasuries Lien on the Property Interest on Deferred Fees Deferral of Impact Fees

39. Issues Currently Allow Deferral to CO Adverse impact on CIP Revenue Stream Security not required Large Projects typically have stable financing Deferral of Impact Fees

40. Issues (cont.) Lien may be subordinate Potential Bankruptcy Issues Other Liabilities and Remedies Legal Issues Administrative Costs Deferral of Impact Fees

41. Action Requested Board Action on how to proceed?

42. Reduction and Deferral of Impact Fees Board of County Commissioners Discussion Item March 29, 2011