Laserfiche WebLink
Exhibit D <br /> <br />FOCUS SESSION THREE: IMPACT FEES <br /> <br />What are impact fees and how do they work? <br /> <br /> "Impact fe'~ are a monetary charge imposed by local government on new <br />development to recoup or offset a proportionate share of public capital costs <br />required to accommodate such development with necessary public facilities" from A <br />Practitioner's Guide to Developtt~nt Impact Fees, Nicholas, et. al. Fees are collected at <br />the time of development and used to help provide the capital improvements needed <br />by the development - schools, roads, water & sewer facilities, etc. <br /> <br />Where are they used? Where in North Carolina? <br /> <br /> Extensively in Florida, California, Oregon and in growth spots of other <br />including Colorado, Texas and Georgia. In North Carolina, the only county using an <br />impact fee is Orange. Orange was authorized via sta~e statute to collect impact fees <br />for a wide variety of purposes but to date, has collected only for school purposes. <br />The fee, known as the "Public Educational Facilities Impact Fee," went into effect <br />July 1, 1993 within each of Orange County's two school districts. Initially, it was <br />$750 per new residence, collected with the issuance of a Certificate of Occupancy. In <br />July of 1995, one of the two districts, the Chapel Hill/Carboro School District, <br />increased its impact fee to $1500. This figure is currently under review based on a <br />new n~-~ls analysis with a new figure under diSCUssion at $3,000. <br /> Mobile home parks are also charged but one time only. Use is restricted to <br />capital expenditure only and must meet all the traditional judicial tests applied to <br />impact fees (rational nexus, proportionate share, etc.). Resistance initially came from <br />realtors, mobile home park operators and home builders. No htigation is pending to <br />date. Currently, reveue from impact fees in Orange County is underwriting 20% of <br />the jurisdic°don's annual capit~l outlay for schools. <br /> <br />What legal framework is required? <br /> <br /> Special enabling legislation of the Stale Assembly and both local resolution <br />and ordinance. <br /> <br />What would impact fees have generated in Cabai~-as County in 19957 <br /> <br /> At the Orange County rate of $1500 per uni~ $2,302,500 would have resulted <br />based on 1,535 dwelling units permitted in 1995. <br /> <br />What is theirpotential to meet future demands? <br /> <br /> Variable, dependent upon the amount of the fee, however, would likely be <br />considet~l a significant source of revenue. Revenue generat~ per year would <br /> <br />11 <br /> <br />2,1 <br /> <br /> <br />