Gulf Coast Impact Fees Go Up, Up, Up

Gulf Coast Impact Fees Go Up, Up, Up

Impact fees are rising all along the Gulf Coast, sometimes at breathtaking rates.

Governments say the increases are needed to pay for rising land and construction costs for new roads, schools, libraries and other services. While local government leaders contend the fees help keep overall taxes down for current residents, they are also a politically palatable way to raise taxes as the fees are enacted theoretically on newcomers. The problem is that anyone who builds a new house must pay the tax.

Impact fees become a huge tax on new housing, new commercial businesses, new office buildings, new restaurants and so on. These expenses are added to the already high costs of doing business on the Gulf Coast - principally associated with high land costs, construction costs and property taxes - and could act as an impediment to future economic vitality.

Here is an update of impact fees and other recent government decisions from the Gulf Coast.

Collier County

Collier County impact fees are the highest on the Gulf Coast, totaling about $30,000 on a new house - depending on size. The fees were recently being increased from about $20,000 per house. School impact fees were jacked up 200% while road impact fees were increased 40%.

Lee County

The Lee County Commission voted unanimously to triple road impact fees, from $2,971 on a single-family home to $8,976. The fees also go up sharply on commercial construction in the county.

When the rest of the county's impact fees are included, the total amount on a new home will top $18,000. That will probably make it second only to Collier County, although growth counties everywhere in Florida are increasing the fees so quickly that it won't really be known until the new fee schedule takes effect Jan. 31.

Charlotte County

Charlotte County commissioners increased the county impact fee to $5,000 per house in September. While that is much less than in surrounding counties, the increase is still a substantial percentage because of the lower cost of land and homes in the county.

• In other news, the county voted to sell the 1,100-acre Murdock Village to Kitson & Partners, the developers of the sprawling Babcock Ranch.

Charlotte County borrowed $93 million to buy Murdock Village properties and Kitson has agreed in principle to pay $82 million for the land, on which the group plans to build 3,500 homes and 1.5 million square feet of retail and commercial space in conjunction with a campus of Florida Gulf Coast University.

Sarasota County

Sarasota County continues to study raising impact fees to more than $17,000 on a new house. The road impact fees on a single-family home would rise from $2,874 to $8,060, a $180% jump. Medical offices would triple to more than $29,000 per 1,000 square feet, while restaurants would more than double to $18,449 per 1,000 square feet.

A public hearing on Sarasota County's proposed impact fee increase is scheduled for Dec. 19.

• In other news, voters in fast-growing North Port will be asked Nov. 7 to approve issuing revenue bonds up to $50 million to pay for central water and sewer systems. Although North Port has nearly 50,000 residents, three out of four houses are on septic tanks and 85% of houses are on well water. City leaders see that as a problem that will only get worse as the city continues to build thousands of new houses.

Manatee County

The Manatee County Commission is considering an impact fee increase that would nearly double the current fee. This, after the commission more than doubled the fee just last year.

In 2005, the fee was increased from $2,100 per house to $5,400 per house. The proposed fee schedule, which includes impact fees for roads, parks, law enforcement and public safety, would increase from $5,400 to $9,005.

The new fees could generate an average of $43.2 million annually during the next five years. Final approval on the increase could come at the commission's Nov. 7 meeting.

Pasco County

The beat goes on in rapidly growing Pasco County, where commissioners are considering increasing just the road impact fees from $3,900 per house to between $8,800 and $13,000 - which would be higher than even Collier County for road fees.

The numbers are based on the recommendations of consultant Tindale-Oliver & Associates.

County officials say they are $177 million short of what is needed to build the roads in the county's current five-year plan.

- Rod Thomson

Data point

Statewide Impact Fee Revenue

1993: $176 million

2004: $1.07 billion

Number of counties with impact fees: 35