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Put Orange County Back to Work

An Economic Stimulus Pilot Project. Put Orange County Back to Work. Goals of Stimulus Program. Creation of construction jobs and permanent employment in the Orange County marketplace Acceleration of ad valorem and sales tax revenues by about 3 years

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Put Orange County Back to Work

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  1. An Economic Stimulus Pilot Project Put Orange County Back to Work

  2. Goals of Stimulus Program • Creation of construction jobs and permanent employment in the Orange County marketplace • Acceleration of ad valorem and sales tax revenues by about 3 years • Pilot Project limits financial exposure for County to allow for evaluation and appraisal before extending program

  3. Mixed Use Project Example

  4. Impact Fees and Capital Chargesfor Mixed Use Project School Impact Fee $1, 744, 750 Road Impact Fee Law Enforcement Fee Fire Impact Fee Parks & Rec Impact Fee Water/ Sewer Capital Chrg Permitting Fee TOTAL $4, 264, 150 $107, 635 $130, 973 $250, 688 $2, 176, 975 Not Available _______________ $6, 930, 421

  5. Taxable Land & Improvement Value

  6. Projections on Increased Ad Valorem Tax Revenue OCPS-44.7% Annual Ad Valorem Tax Revenue

  7. 3 Years of Additional Tax Revenues • Ad Valorem Tax Revenue • Half Cent Local Government Sales Tax • Public Service Tax on Electricity ____________________ Total Projected Tax Revenue to Orange County and OCPS • $2, 677, 296 • $480, 360 • $191, 250 ___________________ $ 3, 348, 906

  8. JOB CREATION IN ORANGE COUNTY • Construction Jobs – 176 people employed • Estimated Payroll- $2, 677, 296 • Permanent Jobs – 1123 people employed • Estimated Payroll- $42, 564, 800

  9. The Impact Fee Myth • Common assumption is that waiver or reduction of impact fees is “developer friendly” which is politically sensitive • THE TRUTH is that the user pays the impact fees. It is either incorporated into the cost of housing or the cost of rent • Moreover, the user pays for the cost of financing those fees from the date that the building permit is issued

  10. Will it Work? • The proof is in the pudding. Pilot program closes December 31, 2009 unless County determines it is beneficial and extends the program • Current financing underwriting now commonly requires 25% to 35% equity infusion at the front end of a project. • Reducing impact fees and delaying payment to CO reduces the equity requirement for financing

  11. Proposed Economic Stimulus Pilot Program • Reduce ALL Orange County impact fees, capital charges (water and sewer) and permitting fees by 50% ASAP • Delay payment of impact fees and capital charges to CO • Open only to projects that have completed building permit approvals by December 31, 2009 • Project must be in urban service area and meet all concurrency requirements

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