Amendment to Road Impact Fee Agreement for Hilton Garden Inn

and Homewood Suites,Application #08-002

Board of County Commissioners

October 8, 2013

Owner Dinesh Kalidas, trustee for DK Land Trust

2 Hotels / 1 Parcel 267 rooms total Shared amenities and

driveway

Hilton Garden Inn/Homewood Suites11400 Marbella Palms Court

© Google 2013

Background

Background

Monitoring study conducted in July 2012, resulted in additional road impact fees due plus interest

Appellant disagreed with additional amount due, filed appeal, denied by Impact Fee Committee (IFC) and DRC

Public hearing on September 10, 2013

Background

Public hearing on September 10, 2013–Appeal withdrawn–Case remanded back to IFC to

1) consider trip length issue, and2) prepare amendment to agreement

regarding interest start date and payment plan–Outstanding issue of interest accrual from date of

demand

Impact Fee Committee Actions

Review contested trip lengths–Monitoring study = 8.76 miles–Revised result = 8.39 miles

Resultant assessed fees–Demand letter (August 2012)–Revised amount due

$1,267 per unit$1,214 per unit

$159,399$145,248

Reduction $14,151

Impact Fee Committee Actions

Amendment to Road Impact Fee Agreement–Revise interest start date from date of agreement

to date of initial Certificate of Occupancy• Interest from 3/18/08 to 8/20/12• Interest from 6/17/09 to 8/20/12

–Payment Plan – 3 equal payments, due on Oct. 30, Nov. 30, and Dec. 30, 2013

$33,430.13$21,914.43

Reduction $11,515.70

BCC Considerations

Outstanding issue– interest accrual since date of demand: $6,723.84

State of Florida Comptroller ( 4.75%) per agreement

BCC Considerations

As a matter of practice, Orange County does charge interest, but usually not a penalty or attorney fees

Interest is the cost of carrying moneyEqual treatment argumentA waiver would set a bad precedent– Would encourage appeals, whether legitimate or not

BCC Considerations

BCC Options– Charge interest consistent with OC Code 23-91 and

practice– Waive interest from date of demand per request– Waive some portion of interest or reduce interest

rate from date of demand

Summary

From Sept. 10, 2013 BCC Appeal Public Hearing–County Demand amount–Appellant's request

Revised Demand amount

OC Code does not provide for tolling interest

$200,193.69$154,275.02

Difference $45,918.67

$173,886.27Savings $26,307.42 (57%)

Interest amount $6,723.84

Requested Action

Approval of Amendment to Road Impact Fee Agreement Regarding an Alternative Traffic Impact Fee Calculation for Hilton Garden Inn and Homewood Suites by and between Dinesh Kalidas, Trustee for DK Land Trust, and Orange County Florida, and

Board direction regarding the interest accrual since date of demand.