A study commissioned by Collier County officials has recommended raising
road impact fees by an average of 228 percent.
The study has shocked the local development industry and even some county
officials. The Collier Building Industry Association (CBIA) has hired its own
consultant to examine the study and look for flaws in how it was done.
URS Consultants of Tampa conducted the study.
"It's a significant increase," said Phil Tindall, the county's impact fee
coordinator. "The biggest factor in the increase is that the cost of right of
way is going up."
Right of way costs are going up because land prices have increased.
"We don't have much flexibility when it comes to purchasing right of way
because it has to be the land by the road (when the road is widened)," Tindall
said. "The cost of land also tends to go up when people find out we're looking
to purchase it."
The study's purpose was to increase the impact fees as much as lawfully
possible, Tindall said.
"This increase is based on thoroughly vetted figures," Tindall said. "It's
all legally defensible."
The county probably could have tweaked the numbers up even more if it had
wanted to, Tindall said.
CBIA officials are reviewing the study to see if it really is legally
defensible. Director David Ellis said the large increase was a surprise.
"We were expecting an increase of 30 to 40 percent," Ellis said. "We wouldn't
have liked that, but we could have accepted it. I don't think anyone expected
this."
Ellis said Lincks & Associates of Tampa will examine the study for CBIA
and see if anything was done incorrectly.
"I understand the results but I can't tell you how the results were
calculated," Ellis said. "We want someone independent to come in and look at
this who understands what was done and tell us why the costs are so high.
"We don't mind paying our fair share but we want to make sure this is our
fair share," Ellis said.
Even if the study is done correctly, commissioners should still be reluctant
to raise impact fees so much because it would negatively impact the community,
Ellis said.
Collier County Commissioner Fred Coyle said he was surprised by the findings.
"I'm actually shocked," Coyle said. "I know the reason. It's because our
consultants failed to factor in right of way cost in the past. That's why I
don't want the county to use consultants anymore."
He would prefer it if the county stopped hiring consultants and just agreed
on a percentage amount to escalate impact fees each year.
Coyle said he didn't know if the county would reduce the amounts the
consultants had recommended.
"It's really going to depend on the data," Coyle said. "We'll have to
evaluate how it will impact people. I feel very strongly that growth should pay
for growth, but I am very concerned about the data we are using."
Impact fees are assessed for each new home and business built in the county
and aren't limited to transportation. The fees initially are paid by developers,
who typically pass them on to consumers in the form of higher prices.
Other fees are assessed for building public schools, libraries, emergency
services and parks. Those fees weren't included in this study.
Tindall said the county has to raise impact fees as much as possible because
it is one of the few sources of revenue that can be increased for road
construction.
Commissioners have previously expressed opposition to raising property taxes
for roads and voters rejected a half-percent sales tax hike that was on the
ballot in November 2001. The tax, which would have gone toward road
construction, was rejected by 71 percent of voters.
The study will be discussed at a public presentation on July 16 at the North
Naples Regional Library. Ellis is urging CBIA members to attend.
The County Commission is expected to consider adopting the new impact fees at
its July 30 meeting. County staff is recommending the commission adopt the study
and have the new impact fees begin Sept. 1.
The CBIA will lobby commissioners for a lower impact fee increase and also
wants the commission to wait until September before making any decisions.
"This is a major decision and there are a lot of questions that still need to
be answered," Ellis said. "It just makes sense to wait until we can gather more
information."
Road impact fees were increased in 2000, but previously hadn't been raised
since 1992. The county has the option of raising impact fees every two years.
Before the impact fees were raised, the county collected $11.6 million in
fees in 1999. In 2000, the county collected $13.2 million. Six months of that
fiscal year occurred after the fees were raised.
In 2001, the county collected $17.7 million in road impact fee money and
during the first seven months of fiscal 2002, the county has collected $10.4
million in impact fees.
