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Tampa Considers Raising Cost Of Building Permits

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By ELLEN GEDALIUS, The Tampa Tribune

Published: October 13, 2007

TAMPA - For the first time in seven years, the city is poised to charge builders and developers more for shepherding their projects through the permitting process.

The city proposes raising commercial permit fees by 75 percent and residential permit fees by 10 percent. The increases are designed to make the construction services division self-sufficient within a few years.

That's a slightly different plan from one proposed in June, which would have doubled commercial permit fees. City officials decided to lower the fee increase to make it more palatable to the building industry and to account for the slowing real estate market.

'We understand we may need to phase in our fees a little more gradually,' said Cyndy Miller, director of growth management and development services.

The city council is scheduled to vote on the proposal Thursday.

Last year, the Tribune asked Mayor Pam Iorio why the division, which is supplemented by taxpayer dollars, isn't funded solely by fees. In many other governments, such as Hillsborough County, building permit fees generate all the revenue that pays for inspectors and other expenses.

At the time, Iorio said she didn't know why Tampa operated differently. She asked Miller to look into it.

If the council approves the fee increases, the division wouldn't be self-sufficient immediately but could become so in two or three years, Miller said.

The construction services division generates about $5.8 million annually, but expenses are about $10.7 million.

With the new plan, the division would generate about $8.3 million a year. That would mean taxpayers would be on the hook for a $2.4 million subsidy, rather than $4.9 million. Money from the city's general fund subsidizes the division, and much of the money in that fund is generated through property taxes.

Among the fees developers pay are for plan reviews, fire permits, electrical permits, site permits and site inspections.

The city issued about 26,800 residential permits in the fiscal year that ended last month. The city issued about 22,800 commercial permits in the same year.

People building a 2,800-square-foot house pay $1,096 in permit fees. Under the proposal, they would pay $1,206.

A convenience store with a carwash pays about $1,712 in fees. Under the proposal, the fee would be $2,996.

Developers building a 20-story high-rise condo pay about $22,436 in fees. Under the proposal, they would pay about $39,263.

Hillsborough County recently raised permitting fees by about 30 percent, said Peter Aluotto, director of planning and growth management. Before then, however, the department suffered as construction slowed, resulting in the furlough of building employees. Offices were closed every other Friday. That ended with the start of the new fiscal year on Oct. 1.

Joseph Narkiewicz, executive vice president of the Tampa Bay Builders Association, said he and his members are comfortable with the city's proposal. The city met with a group of builders and developers over the summer to gauge their reaction and get feedback.

Narkiewicz is pleased the city is enabling builders to do more permit work electronically.

'The city has done a good job of ramping up to smarter technology,' he said. 'Members seem to feel pretty comfortable with the level of service they have been getting.'

The city also plans to use money generated by the fee increase to hire a construction detective, another idea supported by developers, Narkiewicz said.

Sometimes unlicensed contractors do work on residential and commercial projects. That work often is not up to code, Miller said. To combat the problem, the city has had two civilian investigators from the Tampa Police Department dedicated to the problem. A detective would enable the department to make arrests.

The cost is about $100,000 a year.

City Councilman John Dingfelder said he supports the fee increase.

'Growth should pay for itself, and this is a good start,' Dingfelder said.

Councilman Tom Scott was a bit more cautious.

'How does that impact affordable housing?' Scott asked. 'It all gets passed on to the buyer.'

Reporter Ellen Gedalius can be reached at egedalius@tampatrib.com or (813) 259-7679.

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