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Thursday, September 9, 2010

City of Palm Coast increases Impact Fees by 8.5%

City of Palm Coast has announced an increase for the transportation impact fees (aka "impact fees"). Permits applied for on or after October 1, 2010 will be assessed an increase in transportation impact fees by 8.5%.

The new fee for a Single Family detached home or a Mobile Home on an individual lot will be $3,868.39.  For multi-family homes or apartments the fee is $2,239.26.

By statute, an increase in transportation impact fees is expected to be annually adjusted:
Annual adjustments.  On October 1, 2005, and each October 1st thereafter, the City of Palm Coast shall adjust all transportation impact fees assessed by the City. Adjustment shall be determined by comparing the U.S. Department of Labor (USDL) Highway and Street Construction Index for March of the year of adjustment, to the USDL Highway and Street Construction Index for March of the previous year.

What exactly is Impact Fees?
Let's turn to who else but Wikipedia for that:
"An impact fee is a fee that is implemented by a local government on a new or proposed development to help assist or pay for a portion of the costs that the new development may cause with public services to the new development.  They are considered to be a charge on new development to help fund and pay for the construction or needed expansion of offsite capital improvements.   These fees are usually implemented to help reduce the economic burden on local jurisdictions that are trying to deal with population growth within the area."

Any Advice?
Cyd Weeks, the owner of and a Flagler County Realtor® says:
" Talk to your builder, and if you can, pay for it before October 1, 2010."

Charles Rinek, CEO of Rinek Homes and the current President of Flagler HBA (Flagler County Home Builders Association) says:
" The timing is unfortunate in that anything that increases the cost of building continues to discourage much needed growth in our community. 
This limits potential increase in the overall ad valorem tax base income for the City
Since the city has a right to adjust the impact fees every year, we hope they agree to lower the impact fees next year. "

How about the Permit Fees?
In 2009, Palm Coast City Council voted to reduce permitting fees by 90% with hopes to stimulate the local economy and reduce a surplus in the Building Department.  Administrative, Plan Review and Inspection fees assessed by the Building Department are currently reduced by 90%.

The reduction in permit fees will be in place for all permits subject to these fees issued through January 1, 2012.

Additional fees to include revisions, re-inspections, subcontractor change, contractor registration, impact fees, etc. and other departmental fees including Fire, Stormwater, Engineering, and Zoning are not eligible for the discount.

For more information on Permits and Impact Fees, contact:
City of Palm Coast
Building Division
160 Cypress Point Parkway
Suite B-106
Palm Coast, FL 32164
Phone : (386) 986-3780

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