INDIAN RIVER COUNTY — In response to recent challenges to impact fee refund procedures, the County Commission today revised the cost of applying for refunds and made other changes responsive to issues raised at prior commission meetings.
Planning Division Director Bob Keating presented a proposal to lower the fee for an impact refund from $200 to $75 and take the money out of the refund, if one is found to be due, instead of requiring it as an upfront payment.
The changes only affect refunds given due to non-commencement of a construction project. If a developer or individual takes out a permit to build a house or subdivision and pays the associated impact fees but never starts the project, he or she is eligible for a fee refund.
Impact fees are fees charged to developers and typically passed on to the buyers to help offset the cost of “impact” to the community. The fees are often used to fund road construction and public facilities such as schools, libraries, fire stations, among other necessities.
Keating said the county has given more than 300 such refunds in recent years and has compiled a list of approximately 120 people who may still be due impact fee money. Under his proposal, the county will notify those people that they may have money coming, instead of waiting for them to figure it out on their own.
The commission approved the change requested by the planning department 4-0, with Commissioner Wesley Davis abstaining because he said he is involved in a potential business transaction that could be construed as a conflict of interest.
Not covered by the changes are procedures for seeking refunds for impact fees based on non-expenditure.
If the county collects impact fees and does not spend the money within six years, those who paid the fees have up to a year after the six-year period to request a refund. But determining whether the money has been spent is – apparently – complicated and open to some interpretation.
Charlie Wilson, president of Asset Research Recovery, believes the county owes hundreds of citizens more than $1 million in impact fee refunds.
However, county staff, including Keating and Budget Director Jason Brown, said the county has never paid and does not owe any refunds based on non-expenditure.
County Attorney Alan Polackwich said the situation is complicated because the law is unclear on a number points related to impact fee charges and refunds.
He said impact fees came into existence in the 1980s in an ad hoc fashion without clear legislative guidelines and that much of the law has developed through court decisions. In order to sort out what needs to be done in Indian River County, he said his office is systematically reviewing all impact fee court decisions and legislation in the State of Florida.
The commission tabled action on non-expenditure impact fee refunds until Polackwich finishes his review and gives legal guidance. Polackwich said the review process is about 60 percent complete.
