Live Oak reduces fees for developers

Live Oak is trying to attract developers with an agreement for lowered development impact fees in hopes it will spur growth.

The City Council approved a temporary fee reduction this week for eligible homebuilders within its redevelopment project area, which includes almost all of the city except for newer homes.

"We want to bring business back to Live Oak," said Mayor Diane Hodges. "Any time we can encourage people to build and bring more to Live Oak can only be great for the city."

The fees are set to 2004 rates, which range from $6,215 to $6,425 for residential units depending on the zone. The 2009 rates range from $17,422 to $18,873.

To be eligible, homebuilders must complete the usual process for building permits, pay all other planning, building and connection fees and start construction within 30 days of issuance of the building permits. Construction must be completed within one year.

The council already approved a temporary reduction in September that offered discounted development impact fees to any builder willing to build 30 or more single family homes in 2010. The program expires Dec. 31, 2010.

The new program offers the same discount to any builders able to build dwelling units within the boundaries of the city's redevelopment project area. There is no minimum number of units and it is not limited to single family dwellings. By allowing a smaller number of homes, this new program might solve infill issues within the city, Hodges said.

"My hope is that these smaller contractors, smaller homebuilders, can fill these empty lots and make it nicer," she said.

Development has steadily decreased in Live Oak since 2005, when 333 building permits were issued for single-family homes. Only eight were issued in 2008 and none have been issued this year, said City Manager Jim Goodwin.

KB Homes is the only developer who has expressed interest in the program, Goodwin said. KB Homes could not be reached for comment.

Development fees are crucial for a city the size of Live Oak, which does not have a large tax base, Hodges said. They fund almost everything, including traffic signals, parks and sidewalks.

Live Oak Councilman Malcolm Weston said in addition to funding city projects, new development can bring new residents which add to the tax base and community spending.

"And it's good for the community to see people at work," Weston said. "If everything remains the same, it's really going backwards. Growth and newness is important for any vitality in a community."

Live Oak continues to show that it is moving forward, with the new Tower Market, improvements on Highway 99 and the restoration of the railroad depot on Elm Street.

"There's a lot of positive movement that I think is really good for the city," Weston said. "We are moving forward in difficult times."

Contact Appeal-Democrat reporter Ashley Gebb at 749-4724 or agebb@appealdemocrat.com.