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Given the amount of building permit activity that occurred in the suspension periods, one conclusion is that the impact fee suspension did not stimulate building activity. An alternative conclusion, however, is that the impact fee suspension may have stimulated enough construction to keep building activity from falling even more than it did. However, overall improvement in economic conditions has increased the number of single-family building permits. Comparison of Selected Impact Fee Rates The table below shows current impact fee rates for selected land uses with no fees suspended and with three fees suspended. Over the past few years, the suspended impact fees have resulted in lower impact fee payments for both residential and commercial projects. During the suspension periods however, commercial projects fared better, with an average impact fee reduction of 23% to 34%, compared to an average of 6% reduction for residential projects. The reason for the difference between commercial and residential is that only 6 of the 9 impact fees imposed by the county apply to commercial projects, while all nine apply to residential projects. Since the three suspended fees all apply to both residential and commercial projects, the suspension resulted in commercial projects paying only three impact fees (transportation, fire/EMS, and law enforcement), while residential projects paid six impact fees. * Public Buildings, Correctional Facilities, and Solid Waste Facilities Justification for Extending the Temporary Suspension The intent of the temporary impact fee suspension was to incentivize construction activity during the economic downturn. Although it is unclear whether the temporary impact fee suspension has stimulated construction activity since it has been in effect, there are valid reasons to extend the suspension. One reason is that the suspension does not cost the county a significant amount in unrealized impact fees during periods of slow building activity Mother reason is that the temporary suspension enhances the county's 'open for business' image. The third reason is that the updated impact fee schedule will be in place in several months and extending the suspension until that time will avoid a short-term change (increase) in impact fee rates that would run contrary to fee reduction alternatives currently being considered. For those reasons, the Board F:\Community Development\Impact Fee\2014- IF Study\BCC staff report for Authorization to extend Temp Susp IF feb 4, 2014 BCC.doc 3 175 Land use Impact Unit Impact Fee Rate Prior to Suspension (10/1/09) Impact Fee Rate with 3 Impact Fees Suspended* Difference Percentage Decreased Single-family less than 1500 sq. ft. DU $7,519 $7,100 $419 6% Multi -Family DU $4,817 $4,532 $285 6% Office 1000 sq. ft. $5,696 $4,366 $1,330 23% Retail Center 1000 sq. ft. $6,340 $4,209 $2,131 34% General Industrial 1000 sq. ft. t $3,539 $2,695 $844 24% * Public Buildings, Correctional Facilities, and Solid Waste Facilities Justification for Extending the Temporary Suspension The intent of the temporary impact fee suspension was to incentivize construction activity during the economic downturn. Although it is unclear whether the temporary impact fee suspension has stimulated construction activity since it has been in effect, there are valid reasons to extend the suspension. One reason is that the suspension does not cost the county a significant amount in unrealized impact fees during periods of slow building activity Mother reason is that the temporary suspension enhances the county's 'open for business' image. The third reason is that the updated impact fee schedule will be in place in several months and extending the suspension until that time will avoid a short-term change (increase) in impact fee rates that would run contrary to fee reduction alternatives currently being considered. For those reasons, the Board F:\Community Development\Impact Fee\2014- IF Study\BCC staff report for Authorization to extend Temp Susp IF feb 4, 2014 BCC.doc 3 175