Impact Fee Debate Set For Tuesday

BROOKSVILLE - The business community, Realtors and builders are expected to show up at Tuesday's county commission meeting to pitch the merits of a 25 percent impact fee reduction to assist homebuyers, stimulate the economy and spur commercial development.

Commissioners decided to hold a public hearing on the issue after deciding last month they wanted more information.

There is a possibility that commissioners could delay formal discussion of the issue until a later date to give all stakeholders time to line up expert testimony.

Business Development Director Michael McHugh is planning a presentation on the county's workforce, but he won't be ready by Tuesday. Orlando-based economist Hank Fishkind is also planning a presentation on economic trends in Hernando County.

The business community has also lined up a representative for a future meeting.

County Planner Ron Pianta told commissioners a reduction could have a negative impact on the county's capital improvement program, and there is no certainty it would stimulate new home construction or increase access to home ownership.

County Administrator David Hamilton also spoke against the measure, saying the housing market should be given time to correct itself.

The oversupply of homes is creating lowered prices and making them more affordable to first-time buyers - which is the intended aim, Hamilton said.

But builders and the business community don't see it that way.

The 25 percent impact fee reduction would be for 18 months, meeting the requirements of the state's affordable housing appropriations act, passed into law June 11 by Gov. Charlie Crist.

The act sets aside $20 million in non-recurring funds for the next fiscal year -- beginning July 1, 2008 -- for a 12-month period.

Hernando Builders Association President Dudley Hampton Jr. said there is a misconception out there that reducing impact fees would benefit only builders.

While that may happen in the long term, the immediate effect would be to get people who have been sitting on the fence about homeownership to buy existing homes, Hampton said.

And when homeowners buy these existing homes, they may need the services of a plumber, electrician or other technician, thus spurring other trades, he said.

It would drive down the existing home inventory and when that gets to a certain level, spur new home construction, he said.

Cutting impact fees on new homes 25 percent would drop the price from the current $9,200 to $6,200.

The new rate would cover new homes and commercial/industrial development.

The county commission meeting begins at 9 a.m. Tuesday at the Hernando County Government Center, 20 North Main St. in downtown Brooksville.