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Clay County delays proposed development impact fees after hours-long public hearing

Clay County Board of County Commissioners · October 25, 2022
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Summary

After a multi-hour public hearing, the Clay County commissioners voted to continue consideration of a proposed package of development impact fees to Dec. 13 to allow workshops and additional stakeholder review. The study estimates nearly $333 million in facility needs and a possible $6,577 maximum justified fee on a 2,000 sq. ft. home.

Troy Nagle, assistant county manager, and Carlos Villarreal of Willdan Financial Services presented a development impact fee study estimating about $333 million in facility projects needed to serve growth through 2045 and a maximum-justified fee schedule for unincorporated Clay County.

Villarreal said the study uses a mix of methods depending on the category — "existing inventory" for parks, libraries and some government facilities and a "system plan" approach for fire/rescue and law enforcement — and that the county would be committed to funding a portion of the increase in service for existing residents. He said the proposed fees would generate about $153 million and that the county would need to find roughly $181 million from other sources to achieve the higher level of service the plan identifies.

The presentation noted, as an example, that the maximum justified fee for a 2,000-square-foot single-family home would be $6,577 under the study's assumptions. On process, Villarreal explained that impact fees are "a one-time charge, typically imposed at building permit," and that the county may adopt less than the maximum justified amount as a policy choice.

Developers, builders and community members — including representatives of the Northeast Florida Builders Association — urged staff and commissioners to delay the vote, citing concerns about the timing (rising interest rates and economic uncertainty), the study's cost assumptions for land and construction, outreach and the size of the projected county funding gap. T.R. Hainline of Rogers Towers and other speakers warned that the study sets county obligations that, once fees are collected, create expectations that identified facilities will be funded.

Commissioners debated trade-offs between addressing long-identified infrastructure shortfalls and the potential affordability impacts on new-home buyers. The board adopted a motion to continue the ordinance to the Dec. 13 board meeting and asked county staff to meet individually with commissioners and hold a public workshop in the interim.

Next steps: staff will schedule a workshop within the 30-day continuance window, meet individually with commissioners to address technical questions, and return the item to the board on Dec. 13 for further action.