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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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