Agenda - 11-15-2016 - 7-a - School Impact Fee Updates

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2 redeveloped into a project that contains 250 new units would pay impact fees only on the 50 additional units). The Board of County Commissioners has extensively discussed the results of the 2016 studies and possible fee updates at four meetings since September. Meeting materials and videos of the meetings are posted at: http://www.orangecountync.gov/departments/board of county commissioners/index.php Meeting dates were: • September 6, 2016 • September 29, 2016 • October 4, 2016 • October 18, 2016 In the interest of keeping this agenda item as short as possible, all available previous information is not included with this abstract but is available to interested persons who view the previous meeting materials and videos. Additionally, the full studies and other information are posted at: http://www.orangecountync.gov/departments/planning and inspections/current interest project s.php At the October 18 meeting, the Board voted (5-2) on the preference for charging school impact fees based on bedroom counts, when applicable. The Board also deferred an adoption decision to give staff time to meet with representatives of three interested groups (the Homebuilders Association of Durham, Orange, and Chatham Counties; the Triangle Apartment Association; and the Chapel Hill-Carrboro Chamber of Commerce) who spoke at the meeting and also to conduct an additional breakeven analysis based on different assumptions from the analysis that was completed for the October 18 meeting. County staff met with representatives of various organizations on October 26 and the group sent an email with their comments on November 1. The e-mail and staff responses are included in Attachment 4. Some of the ideas presented by the stakeholders have been incorporated into the potential ordinances in Attachments 2 and 3. Details of the breakeven analyses are included in Attachment 1. The analyses differ in the multi-family bedroom split projections as follows: • A 50/50 multi-family bedroom split (0-2 bedrooms/3+ bedrooms) yields a breakeven point of 37% of the MSIF. Note that some stakeholders who attended the meeting on October 26 have indicated this bedroom split is not likely, particularly in the Chapel Hill — Carrboro district; expectation that more 0-2 bedroom units will be constructed than 3+ bedroom units. • A 75/25 multi-family bedroom split (0-2 bedrooms/3+ bedrooms) yields a breakeven point of 43% of the MSIF. Note that some stakeholders have indicated this bedroom split may still be on the high side for 3+ bedroom units. Staff notes that if this indication is correct, the starting point of the MSIF would need to be higher if the County wishes to "breakeven" on school impact fee collections the first year. The breakeven analyses are based on the construction assumptions included in Attachment 1. If actual construction differs significantly from assumptions, actual impact fee amounts collected would be different (either higher or lower, depending on actual construction activity).