1. Orange County Economic Development Plan January 6, 2009 Board of County Commissioners

2. Outline • Economic Environment • Existing Impact Fees • Other Jurisdictions • Mayor’s Economic Development Plan • Impact on CIP • Comparisons • Next Steps

3. Outline • Economic Environment • Existing Impact Fees • Other Jurisdictions • Mayor’s Economic Development Plan • Impact on CIP • Comparisons • Next Steps

4. Economic Environment Residential Permitting Activity Data

5. Economic Environment Commercial Permitting Activity Data

6. Economic Environment Residential & Commercial Valuation

7. Economic Environment Preliminary Subdivision Plan Approvals

8. Economic Environment Development Review Committee Cases

9. Economic Environment Recorded Plats

10. Economic Environment Concurrency Application Reviews

11. Outline • Economic Environment • Existing Impact Fees • Other Jurisdictions • Mayor’s Economic Development Plan • Impact on CIP • Comparisons • Next Steps

12. Existing Impact Fees • Effective Dates • Law enforcement November 1983 • Fire rescue January 1985 • Road January 1986 • School* January 1993 • Parks & recreation* March 2006 • * School and parks impact fees are not charged for non-residential development

13. Existing Impact Fees • Residential • Single Family Home – $17,255 • Road impact fee – $3,713 • School, Parks, Law & Fire – $13,542 • Multi-family Unit – $10,436 • Road impact fee – $2,603 • School, Parks, Law & Fire– $7,833 • Mobile Home – $9,531 • Road impact fee – $1,937 • School, Parks, Law & Fire – $7,594

14. Existing Impact Fees • Non-Residential • Bank (5,000 sq ft) – $127,884 • Road impact fee – $126,500 • Law & fire impact fee – $1,384 • Medical Office (5,000 sq ft) – $79,689 • Road impact fee – $78,305 • Law & fire impact fee – $1,384 • Restaurant, Fast food (5,000 sq ft) – $144,364 • Road impact fee – $141,550 • Law & fire impact fee – $2,814

15. Existing Impact Fees • Fee Updates • Annual adjustment to impact fees per ordinance (indexing) • Road 3.0% July • Law 2.5% March • Fire 3.5% March • Parks 7.4% March • School 5.0% January • Mandatory impact fee updates

16. Outline • Economic Environment • Existing Impact Fees • Other Jurisdictions • Mayor’s Economic Development Plan • Impact on CIP • Comparisons • Next Steps

17. Other Jurisdictions • Actions Taken • Reduced fees temporarily (Charlotte and Marion Counties) • Suspended fee collections (Desoto, Hendry, and Wakulla Counties) • Not increasing fees despite fee studies (Flagler, Lake, Palm Beach, Volusia, and Sarasota Counties; City of Kissimmee)

18. Other Jurisdictions • Under Review • Reducing fees temporarily (Citrus and Collier Counties) • Suspending fee collections (Brevard and Sarasota Counties) • Considering reductions targeted to key industries, CRA (City of Winter Garden) • Discussing Task Force recommendations for fee changes (Lake County)

19. Outline • Economic Environment • Existing Impact Fees • Other Jurisdictions • Mayor’s Economic Development Plan • Impact on CIP • Comparisons • Next Steps

20. Mayor’s Economic Development Plan • Challenging economic conditions require measures to allow continued development activity and support local businesses • Reducing current impact fees and delaying scheduled fee updates has the potential to grow the tax base and create jobs • Directing growth into urban areas remains a growth management priority

21. Mayor’s Economic Development Plan • Extend building permits to 12 months • Reduce road impact fees 25% until 2011 for approved growth areas • Defer impact fee payment until certificate of occupancy • Suspend all automatic impact fee increases • Delay scheduled updates on impact fees • Extend concurrency encumbrances and reservations

22. Mayor’s Economic Development Plan • Extend building permits to 12 months • Currently permits last for 6 months • There is $800 million in projects pending • Extension will encourage project completion

23. Mayor’s Economic Development Plan • 2. Reduce road impact fees 25% until 2011 • Reduction offers average savings of $4-7 per sq ft • Stimulates commercial development • Applicable to all types of development within approved growth areas

24. Mayor’s Economic Development Plan Impact Fee Reduction Target Area

25. Mayor’s Economic Development Plan • 3. Defer impact fee payment until certificate of occupancy (C.O.) • Fees currently paid at building permit • Commercial projects over $1M already deferred • Average payment delayed up to 1 year • Deferral allows customer to maintain financing

26. Mayor’s Economic Development Plan • 4. Suspend all automatic impact fee increases • Indexing increases fees annually to account for inflation on costs for road construction • Average customer savings of 3% annually • Example: 50,000 sq ft supermarket project could save up to $20,000

27. Mayor’s Economic Development Plan • 5. Delay scheduled updates on fees • Current study underway to adjust transportation fees • Implementation of study results temporarily delayed

28. Mayor’s Economic Development Plan • 6. Extend concurrency encumbrances and reservations • Extend concurrency encumbrances to 1 year instead of 180 days • Extend capacity reservations to 5 years instead of 3 years • Allows existing approved projects additional time to begin construction

29. Mayor’s Economic Development Plan • Plan Sunset • Provisions end March 2011 • Optional extension by BCC

30. Outline • Economic Environment • Existing Impact Fees • Other Jurisdictions • Mayor’s Economic Development Plan • Impact on CIP • Comparisons • Next Steps

31. Impact on CIP • Purpose is to promote development activity while maintaining revenues • If revenues do not materialize, Capital Improvements Program may be affected • Federal economic stimulus plan may provide additional revenues for CIP

32. Impact on CIP • Future projects potentially impacted • Boggy Creek Road R/W Acquisition • Taft Vineland Road R/W Acquisition • Holden Avenue R/W Acquisition • East West Road Construction • Clarcona Ocoee Road (West) Construction • Boggy Creek Road Construction • Holden Avenue Construction • Econ Trail R/W Acquisition • Lake Underhill Road Construction • Alafaya Trail Construction • Innovation Way Construction

33. Outline • Economic Environment • Existing Impact Fees • Other Jurisdictions • Mayor’s Economic DevelopmentPlan • Impact on CIP • Comparisons • Next Steps

34. Comparisons Single-Family Residence (per unit)

35. Comparisons Typical Bank with Drive-through (per sq ft)

36. Comparisons Typical Medical Office (per sq ft)

37. Comparisons Typical Fast Food Restaurant (per sq ft)

38. Outline • Economic Environment • Existing Impact Fees • Other Jurisdictions • Mayor’s Economic DevelopmentPlan • Impact on CIP • Comparisons • Next Steps

39. Next Steps • Update ordinance to reflect changes (February 2009) • Hold public hearing (March/April 2009) • Plan effective dates (March/April 2009 – March/April 2011)

40. Orange County Economic Development Plan January 6, 2009 Board of County Commissioners