Agenda - 01-24-2017 - 6-a - Minutes

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16 1 Commissioner Rich said the public speakers were speaking about grandmothering, and 2 asked staff if there are loopholes in this proposal where the County is losing money for the 3 schools. 4 Craig Benedict said there is grandmothering in this year, and the ability to pay this year's 5 rates into next year; but those grandmothering in in late 2017 should know impact fees have 6 changed, and should have worked this into their business plan. 7 Commissioner Rich asked if there is an advantage to giving developers the option to 8 choose which fee to pay. 9 Craig Benedict said developers are being given the benefit of the doubt that their current 10 business plan can continue, with the current fees. 11 Commissioner Price asked Craig Benedict if he finds this proposal to be fair and 12 equitable. 13 Craig Benedict said the impact fees are based on methodology that is legally defensible, 14 and the legally defensible matrix is to evaluate the student generation rate that comes from 15 certain housing types, and certain bedroom counts. He said it is equitable because it has been 16 found that these certain housing types and bedroom counts generate more students, and there 17 is a direct linkage to the fee, and the impacts that come from these housing categories. 18 Commissioner Price asked if the study tracked trends. 19 Craig Benedict said two studies were completed, and one had to do with the last 10 20 years of growth (2004-2014), which showed trends of more multi-family homes being built in 21 Chapel Hill and Carrboro. He said when determining impact fees, the entire housing stock must 22 be reviewed because housing can be multi-family/student housing at one point, and then 23 become family housing 20 years down the road. 24 Commissioner Dorosin said he wanted to clarify the issues before the Board, so he can 25 see a path to a decision: 26 --recommendation choice: 75/25, 50/50 27 --three-year window incentive to get more accurate data and spacing 28 --whether or not to do something different about grandmothering 29 Commissioner Pelissier said she wanted to go with the 75/25 scenario; keep to 10% 30 acceleration rate; and grandmothering only once, at the beginning. 31 Commissioner Jacobs referred to the age specific units, and asked if a development 32 was to be in this category for 20 years, and this changed before the 20 years, does the entire 33 impact fee get paid, or just the remainder. 34 Craig Benedict said the difference between what was paid originally, and what the new 35 rate is, will be paid. 36 Commissioner Jacobs said the Board has very few options under the law to fund school 37 construction, and this is one of their few tools. 38 Commissioner Jacobs said he is in favor of the 75/25, but would consider a 7.5% 39 increase per year, over a 4-year period. He said he does not want to extend the capacity to 40 revert back to lower impact fees. 41 Chair McKee asked if the lag time between the last adoption of impact fees and today 42 could be identified. 43 Craig Benedict said the study started in 2006, and they became effective in 2008. 44 Chair McKee said he will not be able to support this tonight, but knowing that the 45 majority of the Board does support it, he suggested doing a 4-5 year implementation schedule, 46 starting at lowest level. 47 Commissioner Jacobs said his suggestion of the 7.5%, over 4 years, was a 48 compromise. He referred to the article at their places on impact fees, and said if some of the 49 hurt can be reduced for the residents, it should be.