Agenda - 04-04-2017 - 6-d - Petition Requesting Adjustment to Resolution Regarding Grandfathering of Projects for School Impact Fee Collection Purposes

Browse Search

2 petition, two bills were filed in the North Carolina House of Representatives (House) that potentially severely impact Orange County's ability to fund school capital needs. On March 20, 2017 House Bill 406 was filed in the House. If it passes, House Bill 406, which specifically targets Orange County, will strip the County of its authority to levy impact fees. On March 22, 2017 House Bill 436 was filed in the House. House Bill 436 is similar to House Bill 406 in that it would strip the County of its impact fee levying authority. Unlike House Bill 406, House Bill 436 targets numerous jurisdictions throughout the state and eliminates all regulatory fees on new construction unless the fee is specifically authorized by general law. Should either bill pass Orange County will lose millions of dollars annually that is used to assist in school capital projects. This will leave a deficit that ultimately must be filled with a tax increase that requires all property owners in Orange County to pay for the costs of new development. Staff has analyzed the submitted petition and suggests revising the dates in the current resolution to allow for a longer grandfathering period for projects 90-units or greater in size rather than adopting the language suggested by the petitioner which is tailored for a specific project. Other projects that are currently in various planning phases could potentially take advantage of the longer grandfathering period if submittal deadlines are met. Staff shared the staff recommendation with the petitioner. The petitioner provided the following suggestions: • Move the staff-recommended Zoning Compliance Permit (ZCP) issuance date of July 31, 2017 out to December 31, 2017; alternatively, require only submission of the ZCP application by May 15, 2017. o Staff notes an alternative exists where the ZCP submission is in May and the issuance is in December. Petitioner's position on this alternative was unclear at the time of publication. • Move the Building Permit application date from January 1, 2019 to January 31, 2019. • Move the fee paid-by date from June 30, 2019 to June 30, 2020 (to be more in-line with the Certificate of Compliance date of December 31, 2020). In accord with the attached resolution, the BOCC intends that any additional grandfathering requests for projects 90-units in size or greater must be submitted prior to July 31, 2017. FINANCIAL IMPACT: Allowing for a longer grandfathering period is likely to result in a lesser amount of school impact fee collections than might otherwise be collected. SOCIAL JUSTICE IMPACT: The following Orange County Social Justice Goal is applicable to this agenda item: • GOAL: ESTABLISH SUSTAINABLE AND EQUITABLE LAND-USE AND ENVIRONMENTAL POLICIES The fair treatment and meaningful involvement of people of all races, cultures, incomes and educational levels with respect to the development and enforcement of environmental laws, regulations, policies, and decisions. Fair treatment means that no group of people should bear a disproportionate share of the negative environmental consequences resulting from industrial, governmental and commercial operations or policies. RECOMMENDATION(S): The Manager recommends that the Board adopt the revised Resolution in Attachment 3.