Land Vs. Cash

LAKE PLACID - Should the town take the money and run or is land better?
At last week's meeting, town attorney Bert Harris III asked the town council to consider whether impact fees negotiated with builders should be extracted in cash or land.

During typical negotiations during the development process with a prospective builder, municipalities often assess impact fees.

Builders often "pay" for those impact fees with cash for public projects, including traffic improvements, such as installation of a red light or widening of an affected roadway.

Other times a builder will "donate," or set aside, acreage for an ambulance station, police station, elementary school or parks and recreation areas.

Several large residential developments are being planned for properties within and outside the town's borders. Development of the Grigsby property might add more than 900 new homes, with separate plans to construct up to 4,600 homes for a recently proposed development, just the north of town limits.

Arleen Tuck, town clerk, favored taking land rather than money, when collecting impact fees. She noted that land prices have likely doubled since acreage for much of the 50-acre Lake June Park was purchased.

"We'd rather have the land," said Tuck. "Take the land. It's more valuable and there's no telling what (earlier land purchases) would be worth now."

Councilman Bill Brantley said the town should be careful not to become "land-locked" when considering purchase of additional areas for recreational use adjacent to Lake June Park.

"We'll never get the land once it's developed," said Brantley. "If the builder is willing to sell, we should buy."

Purchases of 20 to 30 acres at other sites are not as valuable as four or five acre purchases, by the township, adjacent to the existing park, according to Brantley.

Mayor Tom Katsanis favored taking land from developers when warranted, but said he expects no "quick development" or growth higher than the current 3 percent per year.

"Land keeps going up and will never be as cheap," said Katsanis. "The ideal thing is to get land now, even if it takes 10 years to develop, and you'll have the land."

Councilwoman Debra Worley is a real estate broker.

"You have to look at the total picture," said Worley. "You have to consider whether to take cash for the town and that the land won't be appraised higher and become more expensive in the future.
"The best answer: we're planning - just like a master plan. It takes a lot of guesswork."

Worley noted that the four major area developments of Leisure Lakes, Highlands Park Estates, Sun 'n Lakes and Placid Lakes public uses were not planned - or were "after thoughts."

"We have to prepare for all the development and the schools," said Worley. "You just have to be careful ... especially when children are in the mix. It's a little bit different from roads."

C.B. Shirey, Avon Park city manager, said no mega-developers have yet approached the city, though Sebring Councilman Jeff Carlson talked about working with builders.

"We have no set policy, but we've negotiated development agreements," said Carlson. "It's deal specific."