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<br />MEMORANDUM <br />TO: Chris Yuen, County of HawaiÓi Planning Department <br />FROM: Clancy Mullen, Duncan Associates <br />DATE: March 1, 2006 <br />RE: Infrastructure and Public Facility Needs Assessment Study Ï Ordi <br />The purpose of this memorandum is to present th e consultant teamÔs recommendations on major policy <br />issues that will be involved in implementing an impact fee ordinance for HawaiÓi County. A glossary <br />of impact fee terms is also attached as an appendix. <br />Impact fees are subject to specific re quirements that do not apply to ot her types of fees or taxes. The <br />courts have developed guidelines for constitutionally valid impact fees, based on a Ñrational nexusÒ that <br />must exist between the regulatory fee or exaction and the activi <br />I. SUMMARY OF RECOMMENDATIONS <br />A. Types of Fees. The proposed impact fees are for roads, parks, fire, police, s <br />wastewater facilities. <br />B. Treatment of Existing Lots. Instead of making a recommendation, we have laid out a number <br />of alternatives in the following discussion, which are briefly s <br />Option 1: Existing lots of record can build one dwelling unit without pay <br />Option 2: The County pays the fees for existing lots of record to build o <br />Option 3: Owners of existing lots of record ha ve 2-5 years after ordinance adoption during <br />which they could apply for a building permit for one dwelling unit without paying impact fees. <br />Option 4: Exclude the Puna and KaÓ u Districts, where most of the existing lots are located, <br />from the impact fee system, which means no impact fees would be <br />impact fee money would be spent there. <br />C. Time of Assessment/Collection. It is our recommendation that the impact fees should be <br />collected at the time the building permit is issue d. Impact fees could be assessed (meaning that <br />applicants for development approvals are given notice of the obligation to pay impact fees) at an earlier <br />time (e.g., subdivision approval). <br />D. Pre-Ordinance Credits. If developers have paid fair share assessments or made in-kind <br />contributions for projects that have not been comp leted, impact fees should be reduced or eliminated <br />for any remaining development in those projects. <br />13276 research blvd , ste 208 austin tx 78750 phone 512 258 7347 fax 512 258 9994 email clancy@duncanplan.com <br /># # # # <br /> <br />