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Harry K <br />Mayor <br />Tourtfij -of A <br />PLANNING DEPARTMENT <br />TMENT <br />101 Pauahj Stmet, Suite 3 & Hilo, Hawaii 9+6720 -4224 <br />(808) 961 -8288 o FAX (808) 961 -8742 <br />September 9, 2008 <br />Honorable Pete Hoffmann <br />Chair and Presiding officer <br />and Members of the County Council <br />COUNTY COUNCIL <br />333 Kilauea Avenue, Second Floor <br />Hilo,, HI 96720 <br />Dear Chair Hoffmann and Members of the County Council: <br />SUBJECT:, BILL 324 — IMPACT FEES <br />Christopher J. Yuen <br />Director <br />Brad Kurokaw , A LA <br />LD A <br />Deputy Director <br />Bill 324, to create a new Chap. 36, establishing impact fees in Havai'i County, is <br />currently pending before the Council. This is one of the most important legislative <br />decisions the County has considered in recent years. This memo tries to summarize the <br />pros and cons of adopting impact fees. <br />Basic Principles <br />An impact fee is a fee charged on new development to fund infrastructure and public <br />facility dem'ands that will be generated by that development. People moving into new <br />homes will use public parrs, highways, fire stations, and other facilities. Impact fees are <br />a one -time charge to create a fund to build new facilities to meet that demand. They are <br />generally imposed when a building permit is issued, although the draft bill allows them to <br />be unposed at final subdivision approval for residential subdivisions. <br />Impact fees must be assessed an d administered according to a state lave, H.R.S. sec. 46- <br />1 1 to 148. The law requires a needs assessment stud} that identifies the kinds of <br />facilities that the fee would pay for. The study also determines the maximum amount of <br />impact fee that can be charged for these facilities. It is based on the cost to duplicate the <br />current facilities that the county has, to accommodate the new development. <br />Haw i'i County Ls an Equal Opportunity Provider and employer. <br />Comm. No, q. <br />Ref. To: <br />Ref. Date $EP 10 Z4 08 Nompok <br />4 <br />.:; <br />4L <br />r <br />� <br />i <br />cor <br />Bill 324, to create a new Chap. 36, establishing impact fees in Havai'i County, is <br />currently pending before the Council. This is one of the most important legislative <br />decisions the County has considered in recent years. This memo tries to summarize the <br />pros and cons of adopting impact fees. <br />Basic Principles <br />An impact fee is a fee charged on new development to fund infrastructure and public <br />facility dem'ands that will be generated by that development. People moving into new <br />homes will use public parrs, highways, fire stations, and other facilities. Impact fees are <br />a one -time charge to create a fund to build new facilities to meet that demand. They are <br />generally imposed when a building permit is issued, although the draft bill allows them to <br />be unposed at final subdivision approval for residential subdivisions. <br />Impact fees must be assessed an d administered according to a state lave, H.R.S. sec. 46- <br />1 1 to 148. The law requires a needs assessment stud} that identifies the kinds of <br />facilities that the fee would pay for. The study also determines the maximum amount of <br />impact fee that can be charged for these facilities. It is based on the cost to duplicate the <br />current facilities that the county has, to accommodate the new development. <br />Haw i'i County Ls an Equal Opportunity Provider and employer. <br />Comm. No, q. <br />Ref. To: <br />Ref. Date $EP 10 Z4 08 Nompok <br />