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Proposed Fees for land acquisition by Mayor Pro Tem Murray Nelson 5/2/2003

 

MEMBERS OF THE WORKING COMMITTEE

Representative Sorensen has a bill in this year's session called the Residential Property Acquisition Act.  This bill would have produced approximately $10 million per year based on last year's property values.

Unfortunately, Representative Sorensen was requested to strip off the portion of the bill that addressed affordable housing and environmentally sensitive lands.  Without this reoccurring source of funds, we are back to square one for funds to purchase land for affordable housing and sensitive lands.

The Land Authority spent $8 million last year with the majority going to purchase sensitive lands.  The Land Authority is currently down to a very low budget and I have asked Mark Rosch to apply for additional money from the state through the Florida Communities Trust.

The state has $66 million this year and each county could be allocated 10% of the total.  These funds are subject to the state agency and are not enough to fund the purchase of the Tier 1 lands.

I have an idea that popped into my head while I was in Tallahassee that would provide the funding that we need and would be reoccurring each year until all of the Tier 1 lands are purchased.

This plan requires that each applicant for a building permit pay a fee of  $5.00 per square foot of enclosed space and $2.50 per square foot of lot space.  Homes of 1,200 square feet and lots of 6,000 square feet would be exempt under the affordable housing umbrella and would be required to be built on a dry lot.  This fee would be utilized at 80% for sensitive lands and 20% for affordable housing property.

All monies collected would go to these two uses only.  A multiplier for Tier 2 would be 1.5 times Tier 3 and the multiplier for Tier 1 lands would be 3 times that of Tier 3.

All permits would be called in order received by date.  Applicants would be required to pay the fee up front before getting into the lottery for that year.  Permits exceeding the DCA quota for that year would be in the next year's lottery.  All applicants in the lottery would be drawn that year in four equal drawings.  Applicants not picking up a permit or starting construction within 90 days would go to the back of the list and be refunded their deposit less 10% for handling.

 

This will ensure that no one speculates or holds up a person wanting to build.

ESTIMATED REVENUE

150 houses @2394 sq. ft x $5.00 sq. ft  =       $1,795,500.

200 houses @2394 sq. ft x $5.00 sq. ft  =       $2,394,000.

 

 150 houses x 10 yr. x $1,795,500. =       $17,950,000.

200 houses x 10 yr. x $2,394,000. =       $23,940,000.

 

150 lots @8933 sq. ft x $2.50 sq. ft        =       $ 3,349,875.

200 lots @8933 sq. ft x $2.50 sq. ft        =       $ 4,466,500.

 

Total for 150 lots and houses                =       $ 5,145,375.

Total for 200 lots and houses                =       $ 6,860,500.

 

 Average cost for home and lot        -        Tier 3

2394 sq. ft @ $5.00                                  =       $11,970.

8933 sq. ft @ $2.50                                  =       $22,332.

                                                                               $34,302.

 

Average cost for home and lot        -        Tier 2

 2394 sq. ft @$5.00 x 1.5                         =       $17,955.

 8933 sq. ft @2.50 x 1.5                           =       $33,498.

 

                                                                             $50,453.

 

Average cost for home and lot        -        Tier 1

 2394 sq. ft @ $5.00 x 2.5                        =       $29,925.

 8933 sq. ft @$2.50 x 2.5                         =       $55,831.

                                                                             $85,756.

 

THIS FEE SCHEDULE WILL INSURE THAT:

 1. Affordable housing will not be impacted.

 

2. The average cost to a home builder is close to getting 21 points under the current system of ROGO.

3. The size of homes and lots will be kept at reasonable sizes.

4. Very little building will be done in Tier 1 lands while not creating a taking issue.

5. Tier 2 lots will generate more fees than Tier 3 but still be reasonable.

6.  Will eliminate the aggregation of lots in Tier 1 and stop the process of going to the front of the line.

7.  Buying and speculating on lots will be too expensive and tie up too much capital.

8. Everyone has an equal chance for a permit.

9. Will purchase all Tier 1 lands at today's prices by 2025 @150 homes per year.

10. Will purchase all Tier 1 lands at today's prices by 2019 @ 200 homes per year.

 

Murray E. Nelson

Mayor Pro Tem

May 2, 2003

 

 

 

 

 

 

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