Publication Date: 09/27/09
The St. Johns County Commission, fresh from raising property taxes last week to cover essential community services, on Tuesday confronts the next single most important financial revenue issue -- impact fees.
Impact fees -- the money paid by property owners on new construction impacts -- are a hot topic because of the downturn in the economy, especially on the construction industry.
Builders want the County Commission to put a two-year moratorium on impact fees retroactive to Jan. 1. The builders say the county has to be more competitive with neighboring counties that don't have impact fees in attracting new development.
We see their point. Why should someone who wants to build a 100,000 square foot office complex come to St. Johns County and pay a six-figure impact fee when they can build the same building without an impact fee in Putnam or Clay counties?
County government is enjoying the ability to spend impact fees on quality of life, such as for parks and recreation and for public safety, road construction. County staff don't want to see impact fees ended or changed because the budget would take an $11 million- $12 million hit annually if they were eliminated.
Who can blame county staff wanting to keep such a source of revenue, because even in the downturn in the economy, some people are building and thus paying for their impacts?
Residents have weighed in on both sides. The ones who cannot build their dream homes complain that the gap between building and not is the impact fee required. Still others don't want builders and developers to be able to run rampant with construction, clogging roads and other public infrastructure, which they see as the outcome of no impact fees.
We understand the views of both camps, but our questions go beyond the fees themselves.
How much longer do we want St. Johns County to be a bedroom community?
How will the county ensure that the commercial tax base will grow to relieve residential from being the major driver of property taxes: 89 percent residential compared to 11 percent commercial?
Won't the long-term benefit of future tax collections from commercial developments outweigh the short-term benefit of the impact fees?
The County Commission will hold a special commission meeting at 9 a.m. Tuesday to discuss the requested two-year moratorium and impact fees in general. Because it is a special meeting, the commission can vote and take action.
This impact fee discussion is timely. The latest impact fee version was adopted in 2005 when the economy was on the upswing. Changes in the economy and property tax reform statewide have caused the county's tax base to erode.
St. Johns County has to be as competitive as possible with its neighboring counties for commercial growth. Our residents shouldn't have to commute outside our county for good-paying jobs. They don't need to spend their money daily in another county's stores, restaurants and gas stations, because they are more convenient to where they work.
Be forward thinkers, County Commissioners.
Should St. Johns County be a bedroom community, or should it make an effort to bring in more jobs?
The answer is clear. It's time to end the bedroom community mentality.
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