Agenda - 05-26-1992 - Laserfiche WebLink

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1 1 DRAFT MINUTES FROM THE 5/4/92 REGULAR BOCC MEETING 2 3 C. PROPOSED SCHOOL IMPACT FEES 4 Planning Director Marvin Collins stated that this is the first of 5 two public hearings on impact fees to help assist in financing construction 6 of new school facilities necessitated by growth in Orange County. He stated 7 that impact fees are fees that will be paid by those moving into the county 8 because they create the need for the services. The purpose of these fees and 9 the schedule is to finance school capital cost which has been identified over 10 the next six years. He presented two options. Option #1 showed the impact 11 fee that would be necessary to raise $2 million and Option 2 showed the 12 impact fee that would be necessary to raise $3 million. The fees will apply 13 to new construction only and not existing housing. There are several 14 alternatives for when the fee may be collected. He said that one concern is 15 that this fee adds to the cost of low and moderate income housing and the 16 major concern is the regressive nature of the fee. 17 18 The Public Hearing was open for public comments. 19 20 VIC KNIGHT stated that he knows it is a difficult task to fund the 21 needs of the schools. He does not feel this is the way to pay for school 22 needs. This will impact on the sale of real estate. People will view this 23 as a tax. The Board of County' Commissioners has indicated that affordable 24 housing is a key issue. This impact fee is not a benefit to the majority in 25 this county and he is against the implementation of these fees. 26 27 JIM GRAY made reference to the News of Oran a and the article about 28 impact fees. He stated that usually fees are due at the time the plat is 29 submitted. Waivers are given but very few. When they were issued alternate 30 funds they had to find the money to pay these fees up front. These are set 31 up in a county ordinance. He made reference to how fees are levied in an 32 urban county adjacent to Washington, DC. The fee for a single family 33 dwelling is $2,096 - flat across the board. They allow no waivers even for 34 Habitat. Only the areas where development is occurring were included in this 35 program. Also the money was used in this specific area. The fee is added 36 to the mortgage which means that interest is paid on this fee. The price for 37 existing homes automatically goes up and they must pay more. It also 38 reduces the opportunity for first -time home buyers. It does raise the county 39 tax base because it raises the evaluation. He feels that there must be a 40 better way to raise money and that a lot more time is required to set up this 41 program. 42 43 JOHNNY KENNEDY spoke in opposition of this fee. 44 45 CONNIE SHUPING spoke as a member of the Chapel Hill Board of 46 Realtors. She stated that no one is against more or better schools but that 47 they should be paid for by all the people because it benefits all the people. 48 She opposes the fee. She referred to a city where these fees were 49 implemented and stated that housing starts fell drastically. This fee will 50 have an impact on affordable housing. Both existing and new home owners pay 51 property taxes. She asked that the Board of County Commissioners think about 52 this issue and provide enough time to study it thoroughly.