- April 18, 2024
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Flagler County could be adding more impact fees soon, in an effort to offset new construction’s projected impacts on the area.
The county currently only has two impact fees — to pay for roads and parks — and the roads impact fee is suspended. To pay for future growth, the county should add several more fees to pay for things such as fire rescue, law enforcement and public buildings, according to a presentation by Tindale-Oliver, a design firm that reported to the County Commission at the May 17 workshop.
If the roads fee is reinstated and all other recommendations by Tindale-Oliver are implemented, a 2,000-square-foot home in unincorporated Flagler County would be assessed a total of $6,587 for its impacts on the community — up from $1,706. In other words, a new home would cost about $5,000 more than it used to.
By comparison, the city of Palm Coast updated its impact fees in 2018, and the fees are adjusted yearly. For an infill lot in existing ITT neighborhoods, a new home pays $3,284 in park, road and fire impact fees. (That cost goes up to $4,705 for a home in a new neighborhood.)
All new homes in the county, whether in a city or not, also pay $3,600 to account for school capacity.
Moreover, some of the county's proposed impact fees, such as for fire and law enforcement, could impact Palm Coast’s fees, if agreements are reached between Flagler County and the city.
Fees paid by retail, office, bank and light industrial space would also increase, but the biggest change would be in drive-thru restaurants, based on Tindale-Oliver's recommendations. For every 1,000 square feet of space for something like a new McDonald’s, the impact fees would go up from $14,931 to $41,054.
Commissioner Joe Mullins favored increasing impact fees, although the numbers are still in the planning stage and need two public hearings before they could be voted on.
“I’ve never seen an area that didn’t have impact fees,” Mullins said. Developers are sure to “exploit” Flagler County if they're not required to pay. He likened the county to a real estate firm that doesn't charge for its services. “We are part of a business that’s saying, ‘We’re giving you this for free,’ and I think it’s far time to get this implemented.”
“We need to do this,” Commissioner Greg Hansen added.
County Administrator Jerry Cameron said Flagler should compare itself mostly to St. Johns County, which is where he used to work as an assistant administrator.
“Flagler County is exactly where St. Johns used to be about 15 years ago,” Cameron said, “... St. Johns is probably one of the highest in our area (for impact fees), but they have the highest quality of life to go along with that. And they stand in stark contrast to the arguments that say, ‘Impact fees discourage growth.’”
Mark Langello, who has been in the development business in Flagler County for 40 years, cautioned the County Commission about oversimplifying the matter. New home construction doesn’t only come from out-of-town residents. Rather, many people who are building new homes are already living in the county.
For example, he said, “I’m here, and I want more room for my family, so I’m going to be buying a new house — and I’m going to be paying an impact fee,” he said. “I think people who are coming in new should help — I’m not opposed. But the implementation has to be looked at correctly.”
The cost of drive-thru restaurants could also price out local entrepreneurs. “The people who can afford these fees are always going to be the conglomerates,” he said. “Please look at these numbers.”
Hansen agreed with regard to the drive-thru restaurant fees. “Those are big numbers,” he said.
Commissioner Dave Sullivan pointed out that even though the fees haven’t been decided on yet, developers are listening now.
“Once the word is out that we’re implementing new impact fees, it might change the way developers look at things for the next 12 months,” he said. “It’s one of those things that we need to push on.”
