Manatee County School Board says impact fees make sense

EAST COUNTY — Concerned about an expected boom in population growth, the Manatee County School Board voted to reinstate school impact fees so it has the funds to build new schools or additions to existing ones.

That was the case from 2002 through 2009, the last year impact fees were collected by the Manatee County School District, when $60 million was generated according to the district's Capital Projects Department.

Those dollars helped fund nine projects, including the construction of two East County schools, Braden River High and Robert E. Willis Elementary. Aside from new school construction, impact fees collected over those seven years helped fund land acquisitions and additions at other schools throughout the county.

"This fee matters for projects we need in our county," school board member John Colon said.

At its meeting Nov. 10, the board unanimously voted in favor of bringing back the fees, which are paid by developers who build in the county.

After "sunsetting" impact fees, the decision to reinstate them must first be approved by Manatee County commissioners. That feat could be accomplished at their Dec. 1 or Dec. 15 meeting.

The fees, which are one-time payments, have specific regulations on how they can be used.

"These fees are for new growth, new schools," board member Karen Carpenter said. "The area where the developer is building is where the fees will be used. If Pat Neal is building something in Parrish, we couldn’t use the fees to build new facilities in my neighborhood in southwest Bradenton."

Carpenter said the fees can't be used for maintenance, repair of structures, roads or other community projects already in existence.

The proposed agreement would increase the fees to 50% more than what developers paid in 2009, the last year school impact fees were collected. In 2017, the school impact fee would be 75% higher than 2009 and in 2018 would be about double from 2009.

The district is open to postponing or not implementing the 75% and 100% increases, should the Half-Cent Sales Tax be renewed in 2017.

The proposed impact fees would be collected when the certificate of occupancy is issued.

Compared to Sarasota County, Manatee is charging developers more for new home construction. 

If Sarasota County commissioners approve its school board's suggestion, new single-family homes will cost developers a $2,032 fee. Other school impact fees include a $561 fee for multi-family homes, and mobile homes will have a $188 fee attached.

New residents could translate to more students in classrooms. More students in a school already close to its capacity, such as Lakewood Ranch High School, which already has more than 1,500 students, could present a need for a new school.

A report generated by TischlerBise, a fiscal, economic and planning consultant, cited that new residential development will generate a need for 3,039 additional elementary school seats, 1,270 middle school seats, and 1,571 high school seats over the next decade.

"We have a capacity problem in our schools, here and now," school board member David Miner said. "And growth should pay for growth."

The decision to recommend bringing back impact fees received mixed reviews.

School board members said the county is experiencing a "housing boom," that will continue to attract out-of-town and out-of-state families.

"The building industry is a real economic driver in our county," Carpenter said. 

Britt Williams, of Bruce Williams Homes, disagreed on the demographic of homebuyers in the county.

"The majority of home buyers aren't people moving from out of state," Williams said. "Most are people who already live here, empty nesters, renters who became buyers or families moving to a better home."

He said for every new home, six to eight already-built homes are purchased.

Developers paying more will translate to higher costs for homebuyers, Williams said.

"There's no question that we’re going to have to raise our prices," Williams said. "That higher cost does end up going to the end user, the homebuyer. Higher prices will really make it tough on entry-level buyers."

Pat Neal, of Neal Communities, said there isn't as great a need to build new schools as board members portrayed.

He cited that 11% of classroom space is open and not every school has capacity issues.

"The fees proposed just aren't justified at this time," Neal said. "I don't know how the board could justify doing this."

His company has 14,000 fewer employees than it had in 2005, he said.

School board members said they tried to reach a middle ground.

"This issue isn't us saying developers are greedy and should pay more," Carpenter said. "But we live in this county together. We care about our children and out school district, and we need to work together as we grow."

County impact

The impact fee discussion is also taking place at the county level.

Commissioners met Nov. 10 to consider their options for raising money to meet growth needs.

Unlike the school district, the county charges impact fees for residential and non-residential construction, based on the needs of public safety, parks, transportation and law enforcement.

They haven't decided the amount they will raise or lower the fees, yet, and commissioners are divided on the issue.

Commissioners considered raising impact fees by 90%, which could generate $14 million, County Administrator Ed Hunzeker said.

The group also brainstormed possibly charging an increase in 80%, 85% and 90% phases over a three-year period.

"Right now impact fees can’t go down," at-large commissioner Carol Whitmore said. "We have to be fair to citizens and we told them we'd look at these fees. I understand higher fees will hurt developers and builders, and this could affect economic development. But until we get our act together with finding other revenue sources, we're in a pickle."

District 5 Commissioner Vanessa Baugh believes raising fees 90% will make Manatee County a community that's too expensive for homebuyers.

"We need to stay competitive," Baugh said. "We'll jump from being one of the cheapest counties to live in in Florida to one of the most expensive."