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Impact Fee Cut Proposed

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By RAY REYES, The Tampa Tribune

Published: October 17, 2007

PLANT CITY - Commissioners are considering a new incentive program for residential homebuilders to help energize a stagnant housing market.

Their plan would use reserves from the city's general fund to pay for increases in transportation impact fees so developers do not have to.

Impact fees vary depending on the size and type of buildings. The impact fee for a medium-size home between 1,500 and 2,500 square feet - the most common house in the city, according to the planning department - was $2,627 before the increase went into effect Oct. 1.

The fee for that size home is now $3,503, or $876 higher. The incentives proposed at the Oct. 8 commission meeting by Commissioner Robert Brown would only cover the fee increases. Residential builders must still pay base impact fee costs. Commercial developers are not eligible for the proposed incentives.
Transportation impact fees are one-time payments residential and commercial developers must make to the city before receiving a building permit. The fees pay for road maintenance and improvements affected by new developments.

The commission will vote on capping how much the city pays in impact fee increases per home at its Monday meeting. A cap, Commissioner Dan Raulerson said, 'limits our risk.'

Commissioners are also expected to decide how long the incentives will last. Mayor Rick Lott suggested six months, but Commissioner Bill Dodson said he was uncomfortable about the program lasting longer than three months.

Dodson suggested a three-month trial. If the incentives prove successful during that time, the city could extend the program for another three months, Dodson said.

Assistant City Manager Greg Horwedel gave commissioners a caveat.

'If this is wildly successful,' Horwedel said, 'and 500 homes come in, that would be a massive hit to the general fund.'

Brown's proposal evolved from an idea Lott presented to commissioners at their Sept. 24 meeting. To stimulate the housing market, Lott suggested delaying the transportation impact fee increases until April 1. If Lott's proposal was approved, the delay would have affected residential and commercial development.

On Monday, the commission was set to vote on Lott's proposed ordinance when Brown introduced the incentive program.

Residential developers attending the Oct. 8 meeting urged the commission to delay implementing the impact fee increases - or finding any means to get the market moving again.

'Any increase right now would hurt the housing market,' said Hugh Joiner of Lakeland, who represented the developer building the Walden Woods subdivision. 'Current impact fee rates are 6 percent the selling price of a home.'

One permit for a single-family home was issued in September, according to city building department records. In September 2006, 60 permits for single-family homes were issued. During the height of the boom in 2005-06, about 30 permits were issued monthly, records show.

Reporter Ray Reyes can be reached at (813) 865-4433 or rreyes@tampatrib.com.

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