Backup Documents 10/27/2015 Item #11A I viA0_01 �-
F`-
- GIA-
Good Morning Commissioners. I am Terry Kelly, president of Surety
Construction and current president of the Collier Building Industry
Association.
The current Tindale-Oliver study of school impact fees is suggesting an
increase from the current rate of $5,378 for a single-family home to
$11 ,164. On behalf of the members of CBIA, we ask that you consider the
impact this will have on the economic stability of our community in far
reaching ways including the following:
• The economic recovery is still fragile in Southwest Florida; in fact,
current market data indicates a slowing of homebuilding activity, with
a downward trend expected to follow in the near term.
• Current new construction permit activity is on par with activity in the
late 1990s and early 2000s, when the school impact fee was $1 ,778.
It jumped to a high of $10,755 by 2009. Today's proposed fee of
$11 ,164 is even higher, while our rate of new home permits is
drastically lower. This creates an unsustainable scenario.
• Due to limited available inventory, new home prices are rising
significantly and steadily. Slowing of new construction will continue to
force prices upward, driving many potential homebuyers out of the
market.
• Those affected most significantly by rising home prices are those who
are considering homes in the lower to moderate prices ranges. These
purchasers are often our teachers, first responders, hospitality staff
and public service workers, who already can't keep up with rising
costs.
• Access to affordable housing is a primary consideration for
businesses looking to relocate to Collier County. The proposed
increase in school impact fees will wipe — out the potential for
affordable housing in our county.
1144
On behalf of CBIA representing over 380 companies and 4000+ workers,
we ask your consider of the following in determining the rate for school
impact fees:
1) The average land value included in the most recent School Impact
Fees study indicated a cost of $85,000. The reality is that new
schools will be built to the east where land values are at $50,000. Not
85,000. It is also important to note that the School District currently
has no new school construction in its plans for the next five years.
2) The study used a construction cost of $198 per square foot for new
schools. In fact, this cost is significantly higher than the weighted
average of other counties in the state which is $151 . to 181 . per
square foot.
Given these more realistic estimates, the calculation is $8,517 not $11 ,164.
for a single-family home. CBIA would like to request your consideration in
adopting an impact fee at $8517. with a three year phase in of equal
amounts each year. CBIA would further request that commissioners
review the proposed increment each year based on current market data
and economic conditions, prior to implementing each phase of the
increase.
While we have serious concerns about the chilling effect of any impact fee
increase in the current economic environment, we support these
recommendations. CBIA asks your consideration for an increase in school
impact fees to $8,517, phased in equally over three years pending an
annual review of market conditions.
Thank you for your service to our community and consideration of our
request.
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