County to consider raising impact fees

County to consider raising impact fees

Published in Cape Coral Daily Breeze Feb. 27, 2015 issue

The Lee County Board of County Commissioners will begin its discussions about a possible impact fee increase this Tuesday during a public hearing.

“I can only hope that it goes well,” Commissioner Frank Mann said of the public hearing. “I’m nervous to say the least.”

The current fees are set at 20 percent of the estimated cost of constructing such things as roads, parks and schools necessitated by growth.

Building Industry Association Executive Vice President Brenda Thomas said they would love the impact fees to remain at 20 percent because they feel the market is still emerging.

“People who have been struggling for more than five years to find a job are now going to be threatened. That is hard to take,” she said.

The biggest issue the Building Industry Association is having right now is the uncertainty of where the impact fee rate will fall.

“Builders are in contracts with homeowners right now and they don’t know what to put in the contract,” Thomas said of impact fees.

The fees were reduced 80 percent two years ago when the commission agreed to a temporary reduction to spur the economy.

“The reason we changed it (was) while the building industry was on its back, but those days are gone,” Mann said. “Permits for construction are flying off the shelves. The industry is very healthy and alive and the impact fees need to be restored.”

The starting point for Tuesday’s hearing would bring the charges on new construction up to 45 percent of cost or more than double the current amount charged.

While commissioners will start their conversation at the 45 percent rate, county staff is recommending that the commission provide a 15 percent discount, or 85 percent of cost, which would bring the fee from $2,900 to $11,000 on a new home.

If the county commissioners approve 45 percent impact fees, Thomas said it will have a very negative impact on the building industry at this point.

“At 45 percent, you are looking at almost a $3,200 increase for a single family home, depending on which is the basis point for 45 percent,” she said.

Mann said he is in favor of restoring back to 100 percent because Lee County desperately needs revenue for new infrastructure because thousands of people are moving into the area and permits for new homes are up again.

Thomas, on the other hand, said although they are seeing an increase, they are not on “fire yet” regarding the number of permits pulled. She said a lot of the permits have been for multi-family apartments and commercial properties.

Mann said where ever he goes, he has 100 percent support on his position from the residents of Lee County.

“I knew it was the right thing to do from the beginning,” Mann said, adding that overwhelming support from the community it only reaffirms his belief.

Mann voted against the one-year reduction with the option for a second year in March 2013.

At 100 percent, including a cost adjustment, the fee would be $12,985 to build a new home. At 85 percent the fee would be $11,116 for a single family home. Currently, at 20 percent, the fee is $2,942.

“It worked very well for 20 years, so why would we change that?” Mann asked. “It needs to be a part of our revenue stream now. Impact fees have never kept anyone from moving here. The 20 years we have had them was the fastest expansion period in the history of the county.”

Mann said he does not see how it is fair to ask residents of Lee County to subsidize its growth requirements when there is a perfect example of a program that works – impact fees.

“It’s only fair that growth pays for growth, and the new people coming here pay for the roads and school classrooms they are demanding,” he said.

School Board member Steve Teuber said the school board voted unanimously to support 100 percent restoration.

“We had three things happen over the last five years, which was kind of the perfect storm,” he said.

Property values declined over those five years, the school district’s capital millage was cut from 2.0 mills to 1.5 mills and the County Commission reduced impact fees, including those for schools, by 80 percent.

Teuber said $640 million was lost in potential income. He said the district is carrying a $450 million capital debt with an annual debt service of $42 million.

“We need money from any source possible,” Teuber said.

He said if the school district gets $9 million from impact fees, they still need $300 million more.

“Nine million isn’t going to make the road,” Teuber said. “We need about $40 million a year.”

Even with an increase in impact fees, the school board’s needs still are not met.

“I certainly know that whatever the Board of County Commissioners do is not going to be the answer,” he said.

With that said, Teuber expressed that the school board wants the county commission to do what they feel is right based on their collaborative work.

“If they give us 55 percent, we are going to say thank you very much,” he said.

Thomas said the biggest issue is the commissioners have a big infrastructure need in Lee County and Southwest Florida. She said impact fees are just a small portion of solving that problem.

The impact fee covers only the new infrastructure that would have to be built to accommodate additional population.

By law, the money collected from impact fees cannot be used for maintenance or regular government operations. The money can only be used to add capacity. In other words, the funds can be used to add a lane to a road, but not to repave a road. They can be used to construct a new bridge but not repair an old bridge.

Thomas said the amount of money that it would take to fix road congestion could not be solved with impact fees. She said the traffic congestion on 41 or on the way to the beach could not be fixed with impact fees.

“Many issues we are facing cannot be solved with one solution,” Thomas said. “You don’t want to solve a problem by hurting someone else. A true community solves the problem together.”

Thomas said another issue with raising impact fees is the effect it will have on the valuation of all properties in Lee County.

She said the issue at hand is how do they manage growth in a productive way that leads to a better, more user friendly community without taking the No. 1 economic drivers and throwing them under the bus.

“Raising impact fees to the maximum will not fix the problem,” Thomas said.

The board will meet at 9:30 a.m. in the Commission Chambers, 2120 Main St,. Fort Myers.

 

 

County eyes impact fee hike

County eyes impact fee hike

Published in Cape Coral Daily Breeze Feb. 5, 2015 issue

The Lee County Board of County Commissioners will begin its discussions about a possible impact fee increase during a public hearing scheduled for March 3.

The current fee is set at 20 percent of the estimated cost of constructing such things as roads, parks and schools necessitated by growth. The starting point for next month’s hearing would bring the charge on new construction up to 45 percent of cost or more than double the current amount charged.

District 4 Commissioner Brian Hamman said the analogy he uses for impact fees is it is a “set up charge,” or an “activation fee” for joining a community when building a new home. The impact fee covers the new infrastructure they would possibly have to build to accommodate additional population.

By law, the money collected from impact fees cannot be used for maintenance or regular government operations. The money can only be used to add capacity.

In other words, the funds can be used to add a lane to a road, but not to repave a road. They can be used to construct a new bridge but not repair an old bridge.

“These are supposed to be fees that cover the impact of growth and not regular maintenance,” Hamman said.

The dollars collected from impact fees also have to be expended in the same district where the money was collected.

“If you are going to collect fees in Estero, you have to spend that impact fee in Estero,” he explained. “It is the most volatile of funds because they rely strictly on the economy and construction being good.”

Hamman said there does not need to be high impact fees to generate a lot of revenue.

“You will encourage more growth and more building with lower fees and more revenue to build infrastructure with,” he said.

The impact fees collection rate has the potential of going from 20 percent to 100 percent of cost on March 13 if the Lee County Board of County Commissioners does not take further action as that is when the reduction to 20 percent of cost is set to “sunset.”

At 100 percent, including a cost adjustment, it would add a fee of $12,985 to build a new home and $11,116 for a single family home at the 85 percent rate. Currently, at 20 percent, the fee is $2,942.

“If you were to let the reduction expire and let the fee jump up to $13,000, you are adding $10,000 worth of cost to the house,” Hamman said. “The builder is going to pass it onto the consumer. That cost is going to hurt a middle class home. I am trying to think of how we can keep housing affordable for families that want to build a house.”

While commissioners will start their conversation at the 45 percent rate, county staff is recommending that the commission provide a 15 percent discount, or 85 percent of cost. He said at 85 percent, the fee would go from $2,900 to $11,000 on a new home.

“I think you would slow down the market with that kind of increase,” Hamman said. “My position is that a 55 percent reduction actually means a $7,000 saving to a middle class family. That could mean a difference for families of whether or not they continue to build a home.”

Brian Rist, immediate past president of the Cape Coral Construction Industry Association said it is obvious that Lee County needs money, but he does not think impact fees are the correct way of going about generating the funds.

“There are other ways of generating revenue that seem to me to be more logical,” he said. “Like if you are going to build roads, why not add a few cents to the gas tax?”

Rist said the problem with impact fees is the charge is only assessed to new construction. Currently, 80 percent of the homes being built are $200,000 or less.

In regard to impact fees to build schools, Rist said the majority of people buying new homes in Lee County are moving from up north after their kids are grown and out of the house.

“Impact fees don’t affect people going to school,” Rist said. “But when real estate changes hands, that is everybody.”

Rist believes the commission is going to set the impact fees anywhere from 45 percent to 85 percent of cost.

“At this time new construction is just starting to return to a good level. It is definitely improving,” he said. “But it is just starting to recover and things like this could set us back again.”

One solution Rist believes would help would be through a real estate transfer fee. He said if a smaller amount of money is paid when real estate changes hands it would make more sense.

“When real estate goes down, when the economy goes down, people don’t buy new houses, but real estate constantly changes hands,” he said.

In March 2013, Hamman said the county commission decided to temporarily reduce the impact fee rate by 80 percent to help jumpstart the local economy.

“That is really largely because our economy in Lee County is driven by growth and new construction,” he said. “Since 2007, we really saw no new growth. Permitting was dead. People were out of work. Long-time businesses were closing down.”

Hamman said the commissioners really could not find a way to climb out of the recession.

Single family permits pulled went from more than 9,000 per year at the peak of the construction boom to 373 permits in 2011.

Lee County is starting to see the rise in permits pulled with 933 last year.

Although the growth is starting to appear, Hamman said they are only about a third of where they were before 2000. He said they were at a sustainable growth rate they could handle at about 2,600 permits a year.

His patience, his love

Every road I traveled,

eventually led me back to you. 

In the ten years we spent apart, you crossed my mind from time to time. Your face filled my thoughts at the rarest moments, as I wondered where you ended up and how you were doing.

Unfortunately because how things ended when we were younger, a void I did not know needed filling, stayed that way for way too many years. That void was the friendship we built in high school, a foundation that I now know never could be broken even during the years we did not speak.

At the young age of 16, you left an everlasting imprint on my heart. You showed my heart the power of love, the impact a friendship could have on someone. You were my high school sweetheart, the first boy I let into my world.

Still to this day when I hear Metallica playing on the radio, it brings me back to you and the times we spent playing cards on the patio. And to think, that is just one beautiful memory that often times leaves me smiling.

Fast forward to 2009, as a man, you have changed my world completely. I have grown leaps and bounds because of you.

A breakup that I once thought was the end of the world turned into the biggest blessing. That breakup brought me back to you. That foundation we started a decade earlier, quickly resumed as we filled each other in on the time we spent apart.

The healing began. You let me lean on you through a very trying time. Because of you and your patience, the old me resurfaced again. The old me that went into hiding for almost a decade gained her confidence.

I will never forget the embrace you gave me when we finally parted ways the day we went out to lunch. That hug sent me on a journey back to my teen years in a matter of seconds. That hug reassured me that everything was going to be okay.

Jason you are the best thing that has ever happened to me. You have shown me unconditional love. A love that has opened my eyes. A love that continues to guide me as we ride this journey of life together.

One of the many reasons why I love this man, his attention to detail.

Sometimes he can sense how I’m feeling before it hits me by knowing and understanding how I react to situations, the shift in my mood, the looks I give without realizing, my demeanor and the tone in my voice.

Because Jason know’s me so well, I always feel safe when I’m with him.

He knows how to calm me down. He knows just what to say to make whatever I’m feeling in that moment disappear. The patience he showcases in those situations is why the calmness takes hold of me. I can feel the love radiating from him when I hear his calming words, or his touch.

Last night was just another example of how in-tuned Jason is to my world, my experiences, my overall well-being.

Jason and I went to an acoustic Nonpoint concert at Capone’s in Johnson City. It was an amazing show for so many reasons.

When we started dating again in 2009, Jason introduced me to Nonpoint for the first time. A month after we began dating we went to a concert in Cape Coral after I got free tickets. We still talk about that night. Most of the time all we have to say is that Nonpoint concert and we both start shaking our heads and laughing.

Although Jason took me to my first concert while we were in high school, that Nonpoint concert was the first concert I really felt. The sounds of the drums and guitars really grabbed a hold of me, as the lyrics spoke to me.

Last night’s show was amazing. Usually Nonpoint puts on a high energy concert, but last night it was low key as they transformed their music into an acoustic version. I heard every lyric as I watched fingers strum the guitar creating a sound that triggered my feet to begin moving and my hips swaying to the beat.

There truly is no better feeling then listening to music live. I love watching a band translate the songs meaning during a live show.

After the concert ended, the band made a presence near the front door of Capone’s. A line quickly formed as the band posed with one fan after another for a picture. Yep, Jason took my picture with the band, which was awesome. I had the opportunity to tell them that I loved their music and it is great motivation while I run!

It was a great night with Jason. Another night we will talk about for years to come. Another memory I will hold close to my heart.

I will forever be grateful that I was blessed with such a caring, loving, funny man who fully enjoys life.