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major components of the County's impact fee program and develop alternative strategies to reduce non- residential impact fees, while minimizing or avoiding increases to residential impact fees and while maintaining adequate levels of service. In a draft report issued in January 2014, the Consultant updated impact fee data and calculations, and developed updated impact fee schedules. In response to the directive to reduce non-residential impact fees, the Consultant applied its "Affordable Growth" methodology to the fee calculations, a methodology that considers the effects of various rates of growth on the County's ability to subsidize impact fees from other funding sources while adequately maintaining levels of service. The draft report and Affordable Growth methodology were presented by the Consultant at a Board public workshop held on January 22, 2014. At that workshop, staff discussed (and later developed) its own scenario (the "Staff Scenario") that builds upon the Affordable Growth methodology by further reducing a number of fees based on projected non -impact fee revenues and improvements necessary to adequately maintain levels of service over the next five years. At the workshop's conclusion, the Board indicated the Consultant's update and Affordable Growth methodology were generally acceptable and directed staff to conduct workshops with different interested groups and organizations regarding the impact fee update and Affordable Growth methodology. Since January, staff has conducted eight workshops with interested groups and organizations including two municipalities, and received considerable positive feedback with respect to the proposed Affordable Growth/Staff Scenario approach and resulting reductions in non-residential impact fees. On March 11, 2014, staff informed the Board of the results of the workshops and also reported that a number of commercial developers were awaiting the outcome of the impact fee update before proceeding with their projects. In response, the Board authorized staff to initiate the process of adopting the non-residential impact fee schedules in advance of the final impact fee rates for residential uses. Most recently, the Consultant revised the Draft Impact Fee Update Study Technical Report that was issued in January with a report dated April 14, 2014. The report was revised to include the final (recommended) non- residential fee schedules which are based on the Affordable Growth/Staff Scenario methodology. The Executive Summary of the latest report is attached to this staff report (Attachment 1). The full report can be accessed at http://www.irccdd.com/Applications/Impact Fee/index.html ANALYSIS In accordance with State Law, a public hearing must be conducted in order to update the Indian River County Impact Fee Ordinance and put the new Non -Residential Impact Fee Schedules for the unincorporated county and municipalities into effect. Staff has complied with the advertising requirements for the public hearing and also provided a 30 -day notice to each municipality as required by each county/municipality impact fee interlocal agreement. The Consultant has performed all tasks necessary to update the impact fee schedules for Non -Residential uses; has applied the "Affordable Growth" methodology to reduce Non -Residential Impact Fees; and has determined that the "Staff Scenario" based upon the Affordable Growth methodology is technically sound and warranted. Consequently, the Board has a reasonable basis for determining that the Consultant's update and Affordable Growth/Staff Scenario methodology utilized to reduce non-residential impact fees are acceptable. Furthermore, the Board has found that it is in the public interest to reduce non-residential impact fees to stimulate economic development. Therefore, staff has developed the attached Proposed Ordinance for Non -Residential Impact Fee Schedules for the Unincorporated County and Municipalities (Attachment 2). Said ordinance, if adopted, will establish new Impact Fee Schedules for the Unincorporated County and Municipalities for non-residential uses, based on the Consultant's report. Said ordinance and impact fee schedules will reduce impact fee rates for all except two non-residential categories. For all reduced impact fee rates, the proposed effective date will be 5/5/2014. For the Jail and Veterinary Clinic impact fee rates that will F:\Community Development\mpact Fee\20I4- IF Study\BCC staff report for adopting non-residential IFs April 22.doc 2 27