Palm Coast Fine Tunes Impact Fees

City homebuilders and their customers can save up to $1,306 on the construction of a new home under the Impact Fee ordinance changes approved yesterday by City Council

Palm Coast, FL – May 18, 2011 –Yesterday the Palm Coast City Council passed revisions to its Impact Fee ordinances for transportation, fire, and parks. Builders and their customers can save as much as $1,306.13 on the construction of a new home in the city. School impact fees, and water and sewer hookup fees remain unaffected.
Grouping several use types into one category
Transportation impact fees were simplified by grouping similar building uses into the same category. On a "per dwelling unit" basis, duplexes, single-family homes, mobile homes, apartments, condominiums, and townhouses are now charged the same fee; $2,686.65. Single-family homes were previously charged $3,668.39.
A similar grouping of commercial Transportation Impact Fees will make it easier for developers and their customers to cope with impact fees. The previous ordinance was often difficult to understand and seemed to be enforced in an arbitrary manner at times. General Office and Retail are now in a single classification. Industrial and automotive use now share the same fee.
Two payment options
Additionally, builders can save 3% on Transportation, Fire, and Parks impact fees if they pay the fee at the time they pull the building permit. Otherwise the fee is due when the Certificate of Occupancy (CO) is issued. Previously all impact fees were due at permit issuance.
An April 27th article Impact Fees: "The Hidden Tax on Business and Homeownership" explains the broader ramifications of impact fees and water/sewer hookup fees. A recently built single-family home was used as an illustration. Assuming the builder pays the new fees at permit issuance, the total impact fees plus water/sewer hookup for the home drops 7.57% under the revised ordinances from $17,254.65 to $15,948.52.
Reductions by other jurisdictions
Other jurisdictions have modified their impact fees to spur new construction. The City of Bunnell, also in Flagler County, placed a 4-year moratorium on fees (except School Impact Fees). Orange County, home of Orlando, is the latest of more than 20 local governments around the state to freeze or lower its impact fees on new homes. Effective May 13, 2011, school impact fees on single-family homes were reduced by 50 percent to $6,525. Law, fire, road, and parks impact fees on new homes were each reduced by 25 percent. Cumulatively, the reductions resulted in a 42 percent decrease, leaving impact fees on single-family homes at $10,760. Impact fees on multi-family units were reduced 46 percent to $3,921.

2 replies
  1. Jeff
    Jeff says:

    Nice try!

    This will do NOTHING to promote new home construction. When will politicians learn, $15,000 in impact fees when there is no building happening. Get rid of theses fees and promote it…if you want to attract builders, buyers and investors to take some chances. You will get your increased tax dollars in the end, jobs will grow and business’s will benefit!
    Quit playing games and do something that will actually make a difference.

  2. M. Mahon
    M. Mahon says:

    Impact Fees

    Reduced fees sound great, but one question…how much is a typical lot selling for today? The impact fees exceed the value of lots. Tough sell. Toby, can you ressurect the historical cost of this tax (read "fee")so we can easily compare the cost versus the impact? My recollection is that the fee more than doubled over the past several years. Thanks for all of your effort. MTM

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