Transportation Impact Fee Update

Work Session

Transportation Planning Division

September 11, 2018

Presentation Outline

Background Impact Fee Collections Previous Update Current Update Next Steps and Schedule

Presentation Outline

Background Impact Fee Collections Previous Update Current Update Next Steps and Schedule

Background

Impact Fees –Schools (update underway) –Fire Protection –Law Enforcement –Parks –Transportation (update underway) Chapter 23 Orange

County Code

Background

General Requirements –Growth related –Proportional to impacts –Fund major roads –Demonstrated need –Rational nexus

Background

Prior Ordinance Updates –1985 – Established –1990 – Updated –1998 – Updated –2004 – Updated –2009 – Update Postponed –2012 – Updated –2017 – Update Underway

Background

1

2 4

3

Transportation Impact Fee Benefit Zones

Funds must be used in the zone where they are collected

Background

Consumption-based approach –New development charged on proportion of VMT that

new development consumes on the roadway network Impact fee components

–Demand –Cost –Credit

Impact Fee Equation: [Demand x Cost – Credit = Fee]

Presentation Outline

Background Impact Fee Collections Previous Update Current Update Next Steps and Schedule

Impact Fee Collections

Insert Bar Chart

* Does not reflect assessments associated with public-private partnerships

0

10

20

30

40

50

60

YR2001

YR2002

YR2003

YR2004

YR2005

YR2006

YR2007

YR2008

YR2009

YR2010

YR2011

YR2012

YR2013

YR2014

YR2015

YR2016

YR2017

YR2018

Mill

ions

Countywide

Countywide

Impact Fee Collections

1 4

3

2

* Does not reflect assessments associated with public-private partnerships

Transportation Needs

Last 5 years of CIP - $108M

* Does not include about $30M in roads delivered via public-private partnerships

Funding Sources Amount*

Impact Fees $30,639,864

I-Drive CRA $23,277,635

Legacy/Non Legacy $18,513,840

Gas Taxes $13,858,313

INVEST $13,316,973

Other $8,661,446

Total $108,268,071

Transportation Needs

Overall transportation needs of $1.6B –Projects underway: $400M –Backlogged projects: $320M –Future projects: $950M Impact fees are critical to our public-private

partnership agreements

Presentation Outline

Background Impact Fee Collections Previous Update Current Update Next Steps and Schedule

Previous Update

Updated demand component for each land use – Trip generation and trip length – Percent new trips – Limited Access Discount Factor

Updated improvement costs – Cost for construction – Clarified cost calculation is per added lane mile

Updated credit components – Gas tax credit – Fuel efficiency

Previous Update

Established new benefit area –Alternative Mobility Area (AMA) –Objective to encourage infill and redevelopment –Transportation concurrency exception area –Lower fee due to multi-modal calculation

Previous Update

Previous Update

Previous Update

Transportation Impact Fee History - Study

Land Use Unit

Orange County AMA

Orange County

Non-AMA Orange County

Orange County

Study Update - 2012 2012 2009 2004

Single Family du $6,716 $6,961 $4,804 $3,299

Apartments du $4,441 $4,614 $3,334 $2,313

Retail (under 50,000sf)

1,000 sf $9,741 $10,178 $23,060 $11,923

Office (under 50,000sf)

1,000 sf $9,596 $9,953 $10,297 $6,029

Previous Update

Transportation Impact Fee History - Assessment

Land Use Unit

Orange County

Non-AMA

Orange County

Non-AMA Orange County

Orange County

Study Update - 2012 2012 2004 2004

Effective Date - 12/1/2014 5/20/2013 5/13/2011 7/1/2009

Adoption Percentage - 56% 42% 75% 100%*

Single Family du $3,898 $2,924 $2,869 $3,825

Apartments du $2,584 $1,938 $2,011 $2,681

Retail (under 50,000sf)

1,000 sf $5,700 $4,275 $10,366 $11,125

Office (under 50,000sf)

1,000 sf $5,574 $4,180 $5,242 $13,821

* 2009 fee reflects indexing from 2004 study

Presentation Outline

Background Impact Fee Collections Previous Update Current Update Next Steps and Schedule

Current Update

Update impact fee components Evaluate methodology

–Assessment of AMA –Alternative benefit structure Resultant fee tables Update ordinance

– Indexing

Current Update

Updated demand component for each land use – Trip generation and percent new trips – Trip length increase – Limited Access Discount Factor up 29%

Updated improvement costs – Costs for all production phases – Construction costs up 22%

Updated credit components – Gas tax credit, INVEST, and fuel efficiency changes – Credit component up 7%

Effect on Fee

Assessment of AMA

Technical approach – Utilized person trips – Transit capital costs were higher – Impact fee differential was about 5% – Allowed impact fees to be spent on

multi-modal projects

Findings – Revenues within AMA sub-zone were not a large

percentage (5-20%) – County completed few stand-alone multi-modal projects – Fee differential was not a significant incentive

Study Recommendations

Option 1: Traditional Update –Keep AMA/Non-AMA areas and methodology –Fee schedule based on technical demand, cost, and

credit components –Won’t result in significant fee differential between

AMA/Non-AMA areas

Study Recommendations

Option 2: Alternative Benefit Tier –Expand AMA into Urban Tier –Suburban Tier rest of the County except rural East –Rural Tier is east Orange County outside USA –Adjust ‘added capacity’ of cost component correlated

to a V/C ratio adjustment –Proposed V/C Adjustment

• Urban: V/C = 1.0 • Suburban: V/C = 0.90 • Rural: V/C = 0.80

AMA

Non-AMA

Non-AMA

Non-AMA

Option 1 – Traditional Update

Rural

Suburban

Suburban

Urban

Option 2 – Alternative Benefit Tier

Current Update

Land Use Unit Orange

County AMA

Orange County

Non-AMA Orange

County AMA

Orange County

Non-AMA

Study Update - 2018 2018 2012 2012

Single Family du $4,501 $4,877 $3,761 $3,898

Apartments (low rise)

du $3,238 $3,510 $2,435 $2,584

Retail (under 50,000sf)

1,000 sf $5,452 $6,020 $5,455 $5,700

Office (under 50,000sf)

1,000 sf $4,448 $4,824 $5,374 $5,574

Transportation Impact Fees – Regular Update (at 56%*)

*Presented at 56% of the full fee from the 2012 and 2018 Study

Current Update

Land Use Unit

Orange County Urban

Orange County

Suburban

Orange County

Rural

Orange County

AMA

Orange County Non-AMA

Study Update - 2018 2018 2018 2012 2012

Single Family du $4,501 $5,511 $6,304 $3,761 $3,898

Apartments (low rise)

du $3,238 $3,968 $4,540 $2,435 $2,584

Retail (under 50,000sf)

1,000 sf $5,452 $6,828 $7,838 $5,455 $5,700

Office (under 50,000sf)

1,000 sf $4,448 $3,773 $6,240 $5,374 $5,574

Transportation Impact Fees – Tiered Update (at 56%*)

*Presented at 56% of the full fee from the 2012 and 2018 Study

Current Update

Land Use Unit

Orange County Urban

Orange County

Suburban

Orange County

Rural Seminole

County Osceola County

Lake County

Study Update - 2018 (56%)

2018 (56%)

2018 (56%)

1992 (100%)

2017 (100%)

2013 (70%)

Single Family du $4,501 $5,511 $6,304 $1,271 $8,701 $2,706

Apartments (low rise)

du $3,238 $3,968 $4,540 $849 $6,083 $1,240

Retail (under 50,000sf)

1,000 sf $5,452 $6,828 $7,838 $4,496 $12,904 $3,080

Office (under 50,000sf)

1,000 sf $4,448 $3,773 $6,240 $2,785 $5,458 $2,623

Fee Comparison - Counties

Current Update

Fee Comparison - Cities

Land Use Unit

Orange County Urban

Orange County

Suburban

Orange County

Rural City of

Orlando

City of Winter Garden

City of Ocoee

Study Update - 2018 (56%)

2018 (56%)

2018 (56%)

2012 (50%)

2004 (100%)

2015 (100%)

Single Family du $4,501 $5,511 $6,304 $4,123 $3,517 $3,944

Apartments (low rise)

du $3,238 $3,968 $4,540 $2,729 $2,470 $2,655

Retail (under 50,000sf)

1,000 sf $5,452 $6,828 $7,838 $6,766 $12,716 $4,598

Office (under 50,000sf)

1,000 sf $4,448 $3,773 $6,240 $4,576 $5,748 $4,753

Current Update

Total Impact Fees Assessed (Urban Tier at 56%)

Fee

Single Family

1 du

Retail (40,000sf center)

Schools $8,784 NA

Fire $319 $11,560

Law Enforcement $478 $30,000

Parks $1,544 NA

Transportation $4,501 $218,064

Total $15,626 $259,624

Impact fees can represent a significant cost for affordable housing projects.

Current Update

Ordinance revisions –Update fee tables, minor other changes – Indexing

• Time between updates can potentially cause a large increase in fees

• Indexing provides for gradual increase • Proposed index is 3.5% annually

Other considerations –Option 2 will require a Comp. Plan amendment – Increases in fees can’t go into effect for 90 days after

adoption public hearing

Presentation Outline

Background Impact Fee Collections Previous Update Current Update Next Steps and Schedule

Next Steps and Schedule

Impact fee update process involves worksessions and public hearings with: –Board of County Commissioners –Local Planning Agency –Development Advisory Board (meeting only) Schedule would likely extend beyond December,

with new fees going into effect in 2019

Next Steps and Schedule

Significant policy issues associated with ordinance update: – Impact Fee Zones

• Maintain AMA / Multi-modal calculations • Tiered structure (Urban/Suburban/Rural)

–Adoption percentage – Implementation schedule – Indexing –Affordable housing

Next Steps and Schedule

OC Code requires regular updates (every 5 years) to the technical study to ensure fees charged do not exceed development’s pro-rata share Consultant’s Technical Report and ordinance

update can be separate –Adopted study is dated September 5, 2012, as

amended on December 27, 2012 –Ordinance last amended on September 23, 2014

Next Steps and Schedule

Finalize DAB comments Bring back the study to the Board in November

2018 for acceptance Get policy direction from the Board in 2019 for

update to the ordinance