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an island-wide assessment district is that it evens out the assessment value, and there are no gross inequities in its application. 7. Q: Any better basis from other jurisdiction for basing fees on square footage? Formula based on data collection from one date- Oct. 19, 2005 (peak of boom in market) other jurisdictions justified seems shaky. How have square footage basis for fee? A: Impact fees based on unit size is an accepted methodology of fee assessment, and has been used by other jurisdictions. Data collection is based on historic data prior to October 19, 2005 going back several years. 8. Q: How can HI County support position of fees being allocated to state DOE for provision of necessary schools to support new development? A: The County is not authorized to assess fees for State projects (including schools). If the DOE adopts its own impact fee system for schools, it is unclear at this point how that would be administered. 9. Q: Are projected impact fees going to be comparable to existing fair share assessment of roughly $10,000/unit? This would seem to be a key factor in deciding how to deal with existing lots-any way to exempt only those lots currently owned by Hawaii Island residents? A: At this time, it would be premature to make any comparisons between fair share assessments and possible impact fee assessments. This information will be developed in the next phase of the project. 10. Q: What are you projecting for per unit fee? A: We have not yet calculated proposed impact fees. That will happen in the next phase of the project, after we analyze data we are collecting from a number of County agencies. 11. Q: Any major drawbacks to two separate assessment districts and two benefit districts? A: It is more complicated to calculate multiple assessment districts, and we are not recommending this. At this time, we are trying to keep the methodology simple. Impact Fee Video Conference Page 3 Questions and Answers – January 17, 2006