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Impact Fees: After 2 Years, County Collects 12% Of Budget

By GARY PINNELL

Highlands Today

Published: February 13, 2009

SEBRING - By now, Highlands County commissioners thought they would have collected $17 million in impact fees.

Instead of that fat bank account, two years after they started collecting a tax on new homes and businesses, only $2.16 million has come into the coffers. The county paid Tindale Oliver & Associates about $415,000 in fees, traffic studies and models.

Opponents predicted impact fees - $5,070 for a 1,500 square-foot house, $15,280 for a 10,000 square-foot church - would be the death of the construction industry in Highlands County.

There's little disagreement that home and commercial builders are on life support these days. But, of course, there was also a housing bust, a mortgage crisis, a meltdown on Wall Street and a world-wide recession.

What Now?
Impact fees were debated hotly for months on end before they were finally passed in 2006, and implemented in January 2007.

At 3 p.m. Feb. 24, in the engineering conference room, 501 S. Commerce, Sebring, a review committee will recommend what the county commission should do now.

"The county is charged by the state to review impact fees every three years," said Jack Richie, who will chair the committee. Duncan & Associates has been hired by the county to assist the committee with research.

"Right now, we're just really wide open for suggestions," said Richie.

Jeff Gourley, owner of Advanced Air Systems, has an idea.

"To stimulate the economy, I'd suspend them for a year and a half," Gourley said. That would give buyers enough time to buy a lot and build a house.

"We've always lived in an area with lower housing costs," Gourley reasoned. "Now they've brought up the cost of living here comparable to the coasts. That's why we're dying."

Commissioner Guy Maxcy agrees. "Impact fees do inhibit people from building a home in Highlands County," he said. "We need to discuss the possibility of cutting them in half or postponing them. It's amazing the number of folks who have come to me and said that."
Lake Placid Clerk Arlene Tuck, Sheriff Susan Benton, and Maxcy said they haven't touched money collected.

"I haven't spent a penny," Benton said.

"It's just sitting there in an accounting, growing," Maxcy said. "I guess we're planning on using it, in the near future."

Mike Averyt, assistant superintendent of business and operations, said the Highlands County school board has purchased property for the future expansion at Lake Country Elementary and a two-story building at Avon Park High School.

Short-Term Solution

Although he's wide open to suggestions, Richie is not for suspending or reducing impact fees.

"Impact fees are a necessity in order to cover the growth we anticipate," Richie said. "In another five years, Highlands County is going to explode again. Once the economy clears itself, it's going to be back on a very fast track."
Impact fees could be reduced or rescinded, but the state has mandated that counties must have a way to pay for the growth in highways, schools, law enforcement, and community services like EMS, parks and solid waste.

The county is only collecting 30 percent of the impact fee imposed in 2006, and 50 percent for the schools.

"The longer we wait, the further behind we get," Richie said. "If you believe in no growth, then stop impact fees. That will kill growth."
Gourley isn't convinced. He's still working, because he's got a repair business in addition to installing air conditioners in new homes.

"I'm good right now, but I'm not real good," Gourley said. Other sub-contractors are desperate for work.

"At least (commissioners) could reduce fees to a few thousand dollars," Gourley asserted. "They followed the other counties into this mess, I like to see them lead them out."

Impact Fee Review Committee

Alan Wildstein, Retail

James Clinard, Banking

Jack Richie, Home owners

Jean Warren, Environment

Mike Secor, Builders

Chip Boring, Real estate

Mike Averyt, Education

Ray Royce, Agriculture

George Hall, Municipalities

Don Bates, Highlands County
Vacant Lodging-office

Commissioner Guy Maxcy is required to appoint a representative for lodging and offices.