Cocoa Beach city commissioners passed an ordinance to collect impact fees on new construction, some worry could jeopardize major city real estate projects in the city.
The item passed in a 4-1 vote at the commission’s meeting Thursday, March 19.
Impact fees for new construction are designed to raise money to pay for police, fire and infrastructure needs in the city of Cocoa Beach.
The city does not currently have impact fees like other cities and the county. Collecting them would be a way to to reduce the tax burden on current residents over time by shifting some costs of public services to new development.
Thew newly passed impact fees under the plan would mean developers pay $3,060 per single-family residence and $2,144 for each multifamily development built.
The vote on Thursday came even after developers at a major apartment project being planned for the city expressed concerns that it could disrupt their project.
The Drift is a 220-unit mixed-use apartment building planned for around 7 acres of land along the Banana River Lagoon on State Road 520 just east of Cape Canaveral Hospital.
Cole Oliver, an attorney representing investors behind the development, previously said the adoption of new fees “could potentially prevent the project from moving forward, stating that the developer had contacted him and indicated they may back out,” according to city documents.
Mayor Keith Capizzi said the impact fees may not be the best possible way to raise funds for the city anyway as much of the land in town is already built out.
“We’re pretty much built out. We’re talking about five possible lots we could actually get paid for,” Capizzi said. “It’s not a huge add to our coffers, but it is an extra coffers.”
Commissioner Joshua Jackson said the impact fees would be a major way to staunch the rising costs in property tax rates for current residents.
“We’re drastically out of line with other communities and current residents foot the bill,” Jackson said. “There are other places that have drastically more in impact fees and it hasn’t slowed growth.”
Tyler Vazquez is the Growth and Development Reporter at FLORIDA TODAY. Contact Vazquez at 321-480-0854 or tvazquez@floridatoday.com. Twitter: @tyler_vazquez.
This article originally appeared on Florida Today: New Cocoa Beach impact fees could stop major apartment project
Reporting by Tyler Vazquez, Florida Today / Florida Today
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