Sarasota County leaders approve impact fee increase

Starting April 1, builders will pay higher fees on most new development after the Sarasota County Commission approved an update to impact fees today.

Commissioners went against a staff recommendation to phase in the larger levies, which pay for libraries, parks and other government-related projects, over the next three years. On average, builders will spend about 31% more on impact fees to build a new single-family home and 35% more per multi-family unit.

As for commercial construction, the new Whole Foods under construction at the intersection of University Parkway and Honore Avenue would generate $86,960 under current rates, and $123,760 if the building permit is processed after April 1.

“I’m not making any friends with this motion, I suspect,” said Chairman Alan Maio, who received major financial support during his 2014 run for office from the construction and real estate industries.

Representatives from the Manatee-Sarasota Building Industry Association protested intricacies in the method for calculating the fees, such as assuming new government facilities would be green buildings. Further, consultant Duncan Associates assumed a cost of $360 per square foot to build a variety of government facilities, from libraries to fire stations.

“Sarasota County does have to update those fees from time to time, but we’re very concerned about those numbers being accurate,” said Michael Neal, land development manager with Neal Communities and Building Industry Association board member.

The County Commission hasn’t updated the fees in nearly a decade, and lowered some of them following the onset of the Great Recession considering the downturn’s effect on the building industry. 

“I understand how hard this hit the community during the recession,” said Commissioner Christine Robinson. “I had always told the construction industry and the homebuilders that I understood the timing of it, but now is the time we need to fix this and be on our way on this issue.” 

County staff had recommended collected only 80% of the proposed impact fees starting April 1, then increasing that number to 90% beginning the same day the following year. Finally, the county would have started collecting the full levies beginning April 1, 2019.

County Impact Fee Administrator Tom Polk said the County Commission could direct staff to lower impact fees in the event of another economic downtown, but it would take up to six months.