Economic Incentive Plan

and Impact Fee Update

Board of County CommissionersWork 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 CommissionersWork Session

February 7, 2012