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Plant City To Consider Impact Fee Delay

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By RAY REYES | The Tampa Tribune

Published: September 26, 2007

PLANT CITY - The housing market is sluggish if not downright disastrous, commissioners said at their meeting Monday.

"The housing market right now is one huge guessing game," City Manager David Sollenberger told commissioners.

According to city building department records, four residential permits were issued in August. During the height of the boom in 2005-06, about 30 permits were issued monthly, records show.

With the downturn in mind, Mayor Rick Lott proposed delaying increases in transportation impact fees until April 1, a move he said would help stimulate residential building permit activity.

"I don't think it will be a loss to the city," Lott told commissioners on Monday. "It's a good gesture to the community."

Transportation impact fees are one-time payments residential and commercial developers must make to the city before receiving a building permit. The fees help pay for the improvement and maintenance of roads affected by new developments.

Fees depend on the size and usage of the proposed buildings and are scheduled to increase when the 2007-08 fiscal year begins on Monday.

The impact fee for a medium-size house — 1,500 to 2,500 square feet, the most common home size in Plant City, Lott said — is $2,627.

The fee for a medium-size home is expected to go up by $876 starting Monday, Lott said.

"We pulled four permits last month," Lott said on Tuesday. "That tells you there's a lot of [business owners] and subcontractors out there trying to keep their families alive. I would hate to see people lose their jobs right now."

Lott said delaying the fee increase would help builders hold the line on housing prices, stimulating construction.

Lott's suggestion of postponing the impact fee increase could have been implemented immediately if at least four commissioners approved it with an emergency vote, City Attorney Ken Buchman said.

Commissioner Bill Dodson said he did not feel comfortable with an emergency vote and "denying the public a chance" to speak on the issue.

The commission instead set a public hearing for Oct. 8 by a vote of 4-1. If the ordinance passes, developers will receive refunds because the public hearing will have occurred seven days past the original Oct. 1 deadline for raising impact fees, Buchman said.

Commissioner Robert Brown cast the dissenting vote. When Sollenberger told commissioners that the fee increase postponement would affect commercial as well as residential development, Brown expressed opposition.

Commercial developers may take advantage of lower fee rates during the proposed six-month delay, Brown said. If the postponement affected just residential impact fees, Brown would approve of the ordinance, he said.

"I'll listen, and I might be swayed," Brown said of the vote set for Oct. 8. "But I'm just worried about the potential exposure to our city coffers."

Sollenberger said delaying fee increases would not greatly affect the city's finances. "Development is pretty slow right now. I'm not sure it's going to be a big hit to the city. I don't think there's a huge risk involved."

The public hearing will be held during the city commission's next meeting, which will start at 7:30 p.m. Oct. 8 at city hall, 302 W. Reynolds St.

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

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