Tavares, FL - July 20, 2009 - Sometimes we win, sometimes we lose.
Here is a Channel 9 report by Bernt Petersen on the issue of the value of waiving impact fees by local Lake County Governments.
They got me questioning the value of the waivers, and they have quotes from local officials and staff supporting the waivers.
http://www.wftv.com/news/28601741/detail.html
What this all comes down to is whether you believe developers of new homes and business buildings should contribute impact fees EARLY towards the roads, schools and other infrastructure growth needs caused by that construction. Or should there be no impact fees attached to new construction, and ALL existing taxpayers keep getting taxed via sales taxes, property taxes and fuel taxes to pay for additional infrastructure needed by residents of the newly constructed buildings. Keep in mind that "new Infrastructure" is not the same as maintenance costs on existing roads, etc. which SHOULD be paid by property taxes, fuel taxes and sales taxes. Developers don't want to pay for any of those upfront costs, they want you to pay for it.
Read it and post a comment. The video clip would not work on my computer, but the text is there and at the bottom of this document.
Comment
One problem with TV news reports is that they do not have enough time to clarify complex issues, which is the case here.
They mix up waivers of commercial impact fees, which ARE onerous and excessive , and new home construction impact fees, which are the current method to fund some of the county infrastructure, including roads and schools. They don't mention that the commercial waivers are highly variable and excessive for some businesses, like banks, and much lower for others. They don't mention that the former Impact fee committee had recommendations to drastically reduce the number of commercial business waiver categories, AND reduce the excessive category fees to a much more reasonable level, which would eliminate the problem with high impact fees for specific businesses. They also don't mention that the recommended changes in commercial fees and categories have NOT been brought to the Board by Chair Jennifer Hill or current committee liasion Sean Parks. So any griping about excessive fees for new business buildings like banks or doctor offices is not valid, since the Commission has not demanded a discussion on those 18 month old recommendations. If they modified the commercial impact fee rates to the recommended reasonable rates, much of the pressure they cause on businesses would go away.
I would really like to see the evidence of where the claimed "630 jobs" came from. If you look at the permits filed for Lake County, they are very low.
As for Tavares, their success may be elimination of their own CITY impact fees, including formerly excessive fees for "change of use". Those types of fees were charged if you changed a commercial building's use from one category like office, to that of a restaurant. Those waivers, PLUS the aggressive marketing of Tavares by Tavares officials and staff have to be the reason for their improved businesses.
Actually, since some old Tavares buildings ARE falling apart, there SHOULD be a waiver on impact fees.
I didn't see any clear evidence cited that showed a direct correlation between specific fee waivers and "increased valuations".
This is a very complex issue, and the report didn't really talk about how the waived fees would be replaced, so it will be interesting to see when the former impact fee committee (which meets tomorrow in Eustis) will start formulating OTHER and NEW taxes to replace to lost impact fee revenues. Thus when I say impact fee waivers are "builder welfare", I mean that their selling costs are reduced, but the funding need for infrastructure is still needed, so there is an effort to shift that funding requirement to ALL taxpayers with possible increases in fuel taxes, property taxes, or sales taxes (the School District is looking at that one).
Vance Jochim
Here is the Channel 9 report text:
http://www.wftv.com/news/28601741/detail.html
Local Governments Suspend Impact Fees
Posted: 6:54 pm EDT July 19, 2011Updated: 7:21 pm EDT July 19, 2011
TAVARES, Fla. -- Local governments are giving up millions of dollars they used to collect from developers and they suspended impact fees to encourage new construction. But WFTV learned on Tuesday why critics call it "builder welfare."John Drury's City Hall office is a room with a view ."I see eight new restaurants,” said Drury.It’s part of the business boom in Tavares. In 2009, there was $11 million worth of new construction."After we passed the impact fee waiver ordinance, that tripled,” said Drury.The impact fees pay for new roads and services required by growth, but cities and counties across Central Florida have stopped collecting the fees. Government watchdog Vance Jochim said he doesn't like it."It was pushed through by the builders. It does benefit them,” said Jochim.Jochim, and other conservatives like him, said they love tax cuts, but he said this is different.
It’s nothing more than builder welfare."How would you respond to that kind of criticism?” asked WFTV reporter Berndt Peterson."It's really up to the consumer,” said Andrew Knutt, Homebuilders Association President.Knutt insists the buyer saves the money, not the builder. He said suspending impact fees has led to more work."And with that work there are jobs,” said Knutt.Six-hundred-thirty new jobs, according to Lake County Commissioner Jimmy Conner, who said impact fees were standing in the way. They can add thousands of dollars to the cost of a new home and tens of thousands to a business."When you charge a doctor $90,000 of transportation impact fees, they don't build the office,” said Conner.Critics said local governments will miss out on millions.
The Lake County School Board is giving up $4 million that was supposed to pay for more classrooms."And so the question is, where are the taxes coming from to pay for what they used to pay for?" asked Jochim.
For Tavares, it was a loss of $1.8 million, but Drury said they're getting it back."For every buck that we waived in impact fees, we had $17 in new construction,” said Drury. Also, a better view from Drury's City Hall office. Lake County officials said they've seen a $10 million increase in taxable property value, since they suspended the fees. Some local municipalities have waived impact fees through the end of 2012.
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