North Port raises impact fees on new construction; new rates already in effect

NORTH PORT — Impact fees are rising in North Port, and while the higher rate charged could bring in an estimated $3.5 million more from new construction, some people worry the expense could push commercial developers to build elsewhere — specifically neighboring Charlotte County.

The bold step by city commissioners on a 4-1 vote at a special meeting Tuesday night involved enacting impact fees similar to those suggested after a study by Tindale-Oliver & Associates back in 2011.

The new fees took effect Wednesday.

Before June 2019, the city charged only 42.5% of the rate recommended by Tindale-Oliver. But three years ago, the city bumped the fees to 75% of the recommended rate.

The city charges impact fees for transportation, fire and rescue, law enforcement, general government, parks and solid waste to offset the impact of growth on local infrastructure.

It is in the process of changing the transportation fee to a "mobility fee," in line with what Sarasota County and other municipalities assess.

A 2020 study was conducted by Willdan Financial Services, a California consultant who recommended significantly higher fees rejected as flawed by the commission.

The City Commission’s earlier efforts to finally raise the fees to 100% of the 2011 study was blocked by a recent state law, which required report justifying the increase to be submitted to the state.

More coverage: Is North Port the next ‘it’ city?

Previously: North Port to establish impact fee incentives to attract targeted businesses

Willdan conducted the new study that came up with fees similar to the Tindale-Oliver study.

Under the new schedule, for each single-family home between 1,500 and 1,999 square feet in size, developers would pay a combined $4,348 in city fees for parks, fire rescue, law enforcement, general government and solid waste impacts.

That does not include a new mobility fee structure that has not yet been established, or a 1.5% administration fee.

For each multi-family home they would pay $3,096; while for each home in a senior complex they would pay $1,972.

In addition to those, developers also pay Sarasota County and Sarasota School Board impact fees.

Commercial and office impact fees are figured via a matrix that factors in square footage and use.

The commission is also considering an ordinance that would reduce impact fees up to 50% for targeted businesses that the city hopes to attract. That plan passed on a 4-1 vote in January, with City Commissioner Debbie McDowell in dissent, because it did not include incentives for construction of affordable housing.

McDowell voted against both the first reading of the current ordinance in April and the final reading Tuesday, because she feared the city’s higher fee on commercial and office development would have those developers opt for Sarasota County or Charlotte County – especially as the economy continues to sour because of high inflation.

What are impact fees? How impact fees work in Florida and what changes under the new law

By the way: North Port commissioners to examine 2022-23 budget built on 24.5% property value increase

She favored either delaying the implementation of the new fees by six months or reducing the increase in commercial and office impact fees.

Either of those options sat well with Mary Dougherty, executive director of the Gulf Coast Builders Exchange.

“I wish when we say commercial development we’d say commercial development/jobs because that’s what we’re talking about," Dougherty said during public comment.

She added that exchange members are hearing about a slowdown in the capital markets and a changing economy.

“Again, commercial development means jobs,” she added. “We need jobs in North Port.”

Before the vote, Commissioner Alice White pointed to “unrealized revenue of almost $9 million from not imposing 100% of the rates suggested by 2011 study as a major factor.

“If impact fees are not being paid by development – who should be paying it – that means the rest of us are making up that difference,” she said.

Commissioner Jill Luke, agreed adding, “We’re missing money, we are missing money for a long time.”

Vice Mayor Barbara Langdon – who chaired the meeting because Mayor Pete Emrich was ill and attended electronically – said she dislikes large increases but conceded it was time to bump the fees up after a decade of previous commissions deferring “with good intentions.”

“We are always in an environment of change but one thing will not change and that is the money the city has not collected to do its business and deliver public safety and a healthy infrastructure for a very long time,” Langdon said. “We need to step up and give the revenue it needs.”

In other action

Also on Tuesday, the City Commission:

• Agreed the city will not raise fees for fire protection. North Port Fire Chief Scott Titus said that while the department had asked for a 3.5% fee increase, the increase in property values would raise more revenue than anticipated. Titus added that the rate may yet decrease after final revenue projections are developed.

• Approved, on a 4-1 vote with Emrich in dissent, a 3% increase in road and drainage district fees. North Port Public Works Director Chuck Speake stressed that the fees are not based on property values and the district actually loses funding when lots are combined. The 3% increase on a typical single-family lot would be $5.20 and bring the assessment to $78.48 a year. Emrich said he thought the district – which is responsible for among other things, maintenance and replacement of the city’s water control structures – could tighten its belt more.

• Agreed not to increase the solid waste district fee. Speake noted that an increase may be proposed for the 2023-24 fiscal year, once the city receives the results of a rate study.

Earle Kimel primarily covers south Sarasota County for the Herald-Tribune and can be reached at earle.kimel@heraldtribune.com. Support local journalism with a digital subscription to the Herald-Tribune.

This article originally appeared on Sarasota Herald-Tribune: North Port raises impact fees to reflect 100% rates from new fee study