Bill 324 Impact Fees Letter from Planning Director

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Honorable Pete Hoffmann Chair and Presiding Officer and Members of the County Council COUNTY COUNCIL Page 8 September 9, 2008 Because Bill 324 sets the impact fee at 0% of the maximum, it is only $6,387, so some developments which have "fair share" conditions will pay less if Bill 324 is adopted than under their current requirements. This is not the case, however, for those developments that are building roads and dedicating park land in excess of the "fair share ", because they would offset the fair share in any case. 7. The County may not have road projects planned to benefit some areas. Impact fees for roads should be spent on major collector or arterial roads that are used by a lame number of people, not on roads with a strictly local function. In Puna and Ka'u, the major roads used by most residents are state highways. The impact fee law allows the counties to give their impact fees to the state for highway projects, but we have little control over the timing and implementation of state projects. In Puna, the county is considering a Puna Makai Alternate Route "PMA " as a county project, but this is in the planning stages. In Ka'u, about % of the new homes have been built in the Hawaiian Ocean View Estates area, and there are no County road projects planned in Ka'u which really serve HOVE. More Information More relevant information is contained in "Infrastructure and Public Facilities Needs Assessment: Impact Pee Study" September 2006, prepared for the Planning Department by Duncan Associates in association with Helbert Hastert & Fee. This study and other related information on impact fees are posted on the Planning Department website- www.co.hawaii.hi.us/planning/lpfna. Also, the Duncan Associates website, f mpactF es.corn, is a great source of information about impact fees. Sincer , CHRISTOPHER . YUEN Planning Director CJY:pa Wpwin60/Chris 0 — Hoffmann —Bill 324 - Impact Fee Summary