- April 18, 2024
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Since the city of Palm Coast established a 90% reduction on all building permit fees in June 2009, permit-pullers have saved a combined $1,992,474 on construction projects. But that discount is set to expire, at the end of October.
“From 2003 to 2005, the city over-collected (permit fees),” Palm Coast City Councilman and Flagler Home Builder Association Government Affairs Director Jason DeLorenzo explained.
With $7 million amassed in its building department account — funds that could only be spent on the building inspections and other operations — the reduction was put in place in an effort to balance out, while passing savings onto the community.
But now, DeLorenzo added, those reserves are down to about $2.4 million and, he said, “Permit activity at its current level cannot fund the building department (and maintain an emergency reserve).”
Building permits must be obtained for any project, residential or commercial, from erecting a fence or digging a pool to constructing a house or shopping plaza. Although permits for fence building, DeLorenzo said, are smaller (a $50 full price cost), home-building and commercial permits are pricier (a full-price permit for Panera Bread would have cost the company almost $9,000).
And those are the sectors that could really feel the hit of increased charges.
“It’s a little concerning because on a house, you’re saving around $1,200 (with the discount),” he said. “And that is a fairly significant amount.”
So DeLorenzo expects homeowners and other applicants will use the next few months to save upfront costs on renovation projects while they still have the chance.
“My guess is that we will have a run-up in permits until the end (of October),” he said. “There actually could be a spike, as people try to save those dollars before it goes away.”
And the Councilman not the only one anticipating that sort of rush. The Palm Coast Business Assistance Center recently issued an announcement encouraging business owners to renovate and expand while costs are low.
In the week of July 19-25, permit applicants saved $24,291 through the reduction. Since 2009, the total value of construction in the city is $235,394,296.
“If (the building department’s budget) was going to be self-sustaining next year … I would’ve suggested that we keep some kind of discount, or tier the discounting over the next 12 months,” DeLorenzo added.
But that’s not the case. And, looking forward, DeLorenzo expects fees will have less drastic adjustments as time goes on, as long as officials keep an eye on their intake.
“They needed to reduce the fees back in 2003, ‘4, ‘5 … so the department would have been revenue-neutral. But they never did,” he said. “People realize better now how it was supposed to work.”
Permit pricing: Now and later
According to Barbara Bembry, of Palm Coast’s building department, prices for miscellaneous building permits are listed as follows (including state, zoning and other fees not included in the local reduction):
Single Family residence (2,164 square-foot home, valued at $186,000)
Total cost: $1,089.40
90% discount: $886.86
Total paid: $202.54
Single Family residence (3,500 square-foot home, valued at $291,000)
Total: $1,526.46
90% discount: $1,279.98
Total paid: $246.48
Panera Bread (4,111 square-foot store, valued $992,086)
Total $8,717.87
90% discount: 7767.77
Total paid: $950.10
Florida Hospital Flagler new medical building (34,000 square-foot plaza, valued at $6 million)
Total: $51,452.82
90% discount: $45,846
Total paid: $5,605.82
Aluminum enclosure
Total: $204
90% discount: $126
Total paid: $78
Above-ground pool
Total: $79
90% discount: $58.50
Total paid: $20.50
Fence
Total: $50
90% discount: $36
Total paid: $14
Hurricane Shutters
Total: $109
90% discount: $76.50
Total paid: $32.50
Mechanical change-out
Total : $86.59
90% discount: $74.33
Total paid: $12.26
Patio/slab
Total: $84
90% discount: $54
Total paid: $30
Swimming Pool
Total: $324
90% discount: $198
Total paid: $126
Reroofing (valued at $7,800)
Total: $114
90% discount: $90
Total paid: $14
