Agenda - 12-05-2016 - 6-a - Minutes

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17 1 Aaron Nelson said he is the Director of the Chapel Hill-Carrboro Chamber of 2 Commerce, and he just learned of this issue six days ago. He said he does not look at the 3 classified section to read the advertisements about meetings like this. He said there should be 4 a good conversation with all stakeholders to help Orange County create a reasonable impact 5 fee schedule. He highlighted some of the technical issues with the current proposal. 6 Holly Fraccaro said she is the Executive Officer of the Home Builders Association of 7 Orange County and Durham County. She said she is equally disappointed that they were not 8 contacted to be a part of the discussion on impact fees. She asked the Board to forego a vote, 9 and to have a discussion with the stakeholders before making a decision. 10 Aaron Nelson said they have been encouraging developers to build three bedroom 11 multi-family units, as housing is needed for families. He said developers will favor building two- 12 bedroom units as it is cheaper. 13 Commissioner Price said she would be in favor of postponing the vote. 14 Chair McKee said he does not question the numbers analysis, but some of these 15 columns have outrageous increases. He said these increases will have a cumulative effect 16 over three or four years. He asked if there is any timeframe, in this proposed plan that the 17 County comes up with less revenue than is currently being received. 18 Craig Benedict said if more single-family homes than multi-family homes are built, there 19 may not be as much revenue. He said the proposed mix of housing is an assumption based on 20 the trends of development. 21 Chair McKee asked if it also depends on what percentage of MSIF is set as the starting 22 point. 23 Craig Benedict said yes. He said the breakeven point is intended to be almost neutral in 24 year one and it would increase in the ensuing two years. 25 Chair McKee said even at 37%, it is only neutral in one year, and is not at all neutral in 26 other categories. 27 Craig Benedict said it is not neutral by any individual category. He said the idea of 28 starting different categories at different percentages of the MSIF was considered, but a similar 29 percentage across the board is needed to keep proportionality. 30 Commissioner Jacobs asked if the increase in school construction costs since 2008 is 31 known. 32 Craig Benedict said the percentage increase went from 12.5-24% in the 2000s on the 33 elementary school level. He said new numbers for building in tight urban settings can be even 34 higher. 35 Commissioner Jacobs said to John Roberts that he understands the rates have to be 36 statistically defensible to be legally defensible, and asked if there could be a negotiated/ad hoc 37 arrangement that could also be legally defensible. 38 John Roberts said no. He said the Supreme Court has determined there must be 39 proportionality between who pays the fee, what the fee is, and what the fee is paying for. He 40 said the County's authorizing legislation requires an apportionment between what the fee 41 payers are paying, and what cost the fee is off setting. He said a side agreement would not be 42 defensible. He said there is a fee agreement provision in the ordinance, but it involves a 43 dedication of land, and there must be an appraisal of the land completed to establish the value, 44 to ensure that the fee being waived is comparable to the value of the land. 45 Commissioner Rich asked if the number of three bedroom units being built is known. 46 Craig Benedict said the Special Use Permits for approvals do not specify bedroom 47 counts. He said it is at the discretion of the builder, but the one flat fee does not promote the 48 building of three bedroom units over one-bedroom units. 49 Commissioner Rich said the assumption that three-bedroom units will be built is 50 unrealistic. She added that those three bedroom units that are being built are not affordable.