Impact Fee Decision Put Off Until Aug. 5

County commissioners postponed taking action Tuesday on a proposed impact fee reduction until Aug. 5, allowing experts on both sides of the issue time to present testimony.

But that didn't stop about two dozen people, mostly Realtors, builders and business people, from expressing their opinions at the commission meeting. And some speakers did not hide their emotions.

Several railed against Commissioner Diane Rowden, who added fuel to the fire this week when she e-mailed her constituents warning that any impact fee reduction would harm the economy. She referred to builders and developers who support the measure as greedy and only out to increase their profits.

Robert Eaton, chairman of the government affairs committee for the HBA, read the letter aloud to the crowded chambers. Then he looked point blank at Rowden to verify the contents.

"Did you write this letter?" Eaton asked Rowden.

Rowden didn't respond.

Eaton was followed by business owner Anna Liisa Covell who said she is tired of the business community being thought of as the "evil empire."

With emotion in her voice, Covell reminded commissioners that business people are the ones that employ workers who live in the community. The audience applauded.

Not to be outdone was Dudley Hampton Jr., president of the Hernando Builders Association.

"I am continually amazed at the fervent angst directed toward the builders," Hampton said. "When (we) suggest something that stimulates our economy, we've been called greedy and carpetbaggers."

Hampton said if he is responsible for trying to keep his employees and subcontractors busy so they can feed their families, "then I'm guilty," he said.

"It's not about the builders, it's about the economy," he said.

Rowden waited until just prior to the vote to before voicing her comments. She vehemently expressed her aversion toward any impact fee reduction. She did not, however, retract her strong e-mail statements.

"Reducing impact fees isn't the solution, it's part of the problem," Rowden said.

Hernando County, she said, needs to start exploring new kinds of businesses, perhaps in the manufacturing sector. The construction industry is not a line of business that is going to continue to sustain the county, she said.

"If we reduce impact fees for construction, there won't be people running out there to build a house," she said. "They can't even get financing."

All this talk of jumpstarting the economy with lower impact fees is pure speculation, Rowden said.

"And that's what's gotten us into this situation - speculation," she said.

County Commissioner Jeff Stabins said he knew when this idea was broached that it had the potential of dividing the community.

Stabins said he is working on a separate stimulus package that he will present Aug. 5 that would allow the county to keep the current impact fee rate and still stimulate the economy.

Without being specific, Stabins said he is exploring the possibility of expanding the HUD-sponsored Community Development Block Grant program, which local governments use to help provide affordable housing.

Gov. Crist recently signed into law an appropriations bill that would set aside $20 million statewide in nonrecurring funds to provide down payment assistance to first-time homebuyers.

To qualify, Hernando County needs to reduce impact fees by at least 25 percent for a minimum of 18 months.

New homebuyers in Hernando County currently pay impact fees, which are imposed on developers and builders to fund schools, parks, roads and other capital improvements in the community.

The cost per house is about $9,238. A 25 percent reduction would drop the cost to about $6,200. The new rate would cover new homes and commercial/industrial development.

Business Development Director Michael McHugh said holding off on a decision until the Aug. 5 commission meeting would allow him time to gather more information on the county's workforce.

Also at that meeting will be Orlando-based economist Hank Fishkind, who will present local economic trends.

McHugh said it is important to get all the information on the table and make a reasoned decision.

"There are a lot of people out there hurting right now." McHugh said. "Figuring out the right thing to do, though, is going to take some consideration."

The builders also plan to have a representative at that Aug. 5 meeting. Kirk Sorenson, an economist with Government Solutions, will be there, according to Eaton.

County Commissioner Rose Rocco said the issue would have a huge impact on all sectors of the local economy and agreed that making a knee-jerk reaction without all the proper information is not in the best interests of the county.