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2. Financing of Impact Fees on More Favorable Terms. <br /> The County currently provides financing for water & sewer impact fees for a period of five (5) <br /> years, with a hardship extension to ten (10 years. The interest rate charged is adjusted annually, <br /> and the current rate is 5.75%. The County does not typically finance the other impact fee types, <br /> although this has been done on a case by case basis for large new or expanding employers. The <br /> possible incentives include extending the term, reducing rate or both. Extending the term results <br /> in a short term cash flow impact, but it does not result in a significant additional expense. <br /> Reducing the interest rate would result in lower repayment amounts. There are challenges <br /> relating to securing payment with a lien which would survive foreclosure of a pre-existing <br /> mortgage. Additionally, the fee payer can typically finance the impact fees along with the <br /> construction costs. Lenders have had problems subordinating loans to County loans in such <br /> situations, and subordinating the County loan to the bank loans presents a security concern for <br /> collection of the County loan. <br /> Each of the proposed additional incentives was presented to the Enterprise Zone Development <br /> Agency (EZDA) on November 8, 2012. The EZDA did not appear to reach a consensus on <br /> making a recommendation for this incentive. It is difficult to estimate the countywide impact of <br /> this incentive whether implemented in the Enterprise Zone only or on a countywide basis. Please <br /> see the table below for the impact that this incentive would have generated for each of the three <br /> local jobs grant applicants. <br /> 2. Financing of Impact Fees on More <br /> Estimated <br /> Additional <br /> Company Name Incentive Comments/Notes <br /> Based upon $17,484 fees financed at <br /> INEOS New Planet BioEnergy LLC $4,714 5.75% for X10 years. This assumes 0% <br /> interest. 3% interest rate would be <br /> savings of$2,299. <br /> SpectorSoft Corporation $0 Company operates in leased office <br /> space, so no impact fees were paid <br /> Company continues to use existing <br /> Communications International Inc. $0 facilities. No building expansion, so no <br /> impact fees were due. <br /> Total $4,714 <br /> For illustrative purposes, the owner of a commercial development that required water & sewer <br /> impact fees totaling $10,000 would pay interest of $2,696 over a period of ten (10) years at <br /> 5.75% interest. <br /> 3. Waive or Subsidize (in whole or in part) Development Fees. <br /> This incentive considers waiving development fees and subsidizing building permit fees for <br /> businesses seeking to locate or expand in the Enterprise Zone. Development fees are funded <br /> from the M.S.T.U. Fund, so they could be waived. This would result in a subsidy of these fees <br /> from other M.S.T.U. Fund revenues. The building permit fee subsidy would need to be provided <br /> 115 <br />