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1-24-23 - Item 6Parks and Recreation Impact Fee Frequently Asked Questions The City of Clearwater has had a form of Parks and Recreation Impact Fees going back to the early 1970's. It was a time of exponential growth in Clearwater as vacant land was available for new residential and non-residential development to occur. During this time and up to 1983 the City Council had a policy that new developments donate 10% of their land for Parks. This is how the city acquired much of the park land in neighborhoods like Countryside, Northwood, Valencia, Montclair etc. In 1983 impact fees were codified to include residential and non-residential developments based on the current conditions. Minor changes were made through the years, however, due to the shift from new development to redevelopment the city is updating the impact fees to meet the Cities current condition. The new Impact Fee Ordinance is proposed to take effect on September 1, 2023. What is an impact fee? Impact fees are charges paid by a homeowner or developer to fund the cost of providing new recreation facilities and land for the benefit of the new residents. This is a way to ensure that new development pays its fair share of new or improved parks and recreation costs and that the service level currently being provided to the city residents is not lessened by new development. For developers, having an established fee schedule based on dwelling units allows for them to know the cost prior to beginning a project rather than having to make a guess based on the value of land. Set fee schedules make for a more equitable system whereby everyone not only knows what they will be assessed but everyone is paying an equitable fee. This makes the process more efficient since projects are not having to be mitigated on a case-by-case basis. Where are impact fees? Impact fees are widely used throughout the United States and have been used in Clearwater since 1983. The State of Florida has provided legislation that not only allows for impact fees but also regulates them. Many if not most of Florida's major cities and counties have some form of Parks and Recreation impact fees. In Pinellas County most of the municipalities like Largo, Dunedin, Safety Harbor, St Pete Beach, Madeira Beach, Tarpon Springs etc. have impact fees. What are impact fees based on? For impact fees to be charged, a community must conduct an analysis that identifies the current conditions and future growth -related impacts to the parks and recreation department. This analysis is used to set appropriate fees to be charged per new residential dwelling unit (du) and overnight accommodations. This analysis was conducted between 2020 and 2022 by the firm of Bensch (formally Tindall Oliver). What will Clearwater Recreation Impact Fees pay for? The impact fees will pay for new recreation land to accommodate growth as well as those facilities and amenities to develop the park land into a neighborhood, community, or special facilities park. Fees may also be used to pay for improvements or additions to existing infrastructure if it benefits new residents and is not simply an improvement to meet current resident's needs. Who pays impact fees? Under the City's adopted ordinance, impact fees apply to any new residential development constructed in the city limits of Clearwater, or any residential property of eight (8) units or more annexed into the city. Any developer or homeowner that has applied for a building permit and not paid impact fees prior to September 1, 2023, will have the option to use either the existing ordinance or the new ordinance whichever is more beneficial for the developer. How Much are impact fees? Impact fees are reviewed every five years by city staff. The current rates adopted by the City Council per dwelling unit, beginning April 1, 2023, are as follows: Single Family (detached) less than 1,500 sf $3,021 Single Family (detached) 1,500 to 2,499 sf $3,358 Single Family (detached) 2,500 sf or greater $3,762 Multi -family (including duplex & triplex) $2,024 Affordable Multi -Family (including duplex & triplex) $1,012 Mobile Home $1,847 Age Restricted/Sr Housing (detached) $2,576 Age Restricted/Sr Housing (attached) $1,551 When are impact fees paid? Impact fees are a condition of obtaining a certificate of occupancy (CO) and can be paid at any time prior to receiving the CO. Are there any exemptions, credits, or reduction of fees? Yes, there are several types of development that are exempt from the impact fee ordinance. They are as follows: • alterations or expansion of existing dwelling unit • accessory buildings or structures to dwelling unit • replacement of destroyed dwelling unit • single family affordable housing dwelling unit • annexations of seven (7) dwelling units or less A credit is given for any previous dwelling unit that was previously constructed on the property on a one for one basis. Developer is responsible for documenting the existence of previous dwellings to receive credit. A discount of 50% is offered to affordable multi -family dwelling units including duplex & triplex.