Impacted

SEBRING - When asked about impact fees, Wayne Gourley's response likely echoed the opinion of many in construction as well as some outside of the industry.

"If their purpose is to slow down growth they came up with a heck of a good plan," said Gourley, the owner of Gourley Plastering.

The Highlands County Commission began collecting impact fees - charges on new residential, industrial and commercial buildings for things such as roads and schools - this year. The commission voted last week to raise the fees at 30 percent of their recommended level in 2008 - a 5-percent increase from the 25 percent rate now in effect.

Gourley said in September 2006 he had four stucco crews going all the time. Gourley noted he needed more help at this time last year.

What a difference a year makes.

Gourley said he ran one stucco crew last week. He noted some crews have left the area and the hours have been cut for others.

"It has turned around in the opposite direction tremendously," Gourley said.

Highlands County Building Official S.Y. Moseley said construction has "slowed down" in the county but is "not at a standstill." Moseley said it is similar now to the period before the hurricanes in 2004, which he described as "slow, steady growth."

In August, the county issued 15 building permits for single-family homes and three duplexes. There were twice as many permits two years ago at the same time.

On a positive note, Moseley said people can get a subcontractor on the job a lot quicker now.

Danny Yarbrough is president of Yarbrough Tire and Service Inc. Yarbrough said in the nine years he has been president of the company this is the worst he has seen the business. Yarbrough said July, August and this month have been "miserable."

The company, which has been in business 39 years, has three locations in Highlands County. Yarbrough said he might have to consider downsizing the company.

"I can't say it is all (because of) construction, but construction is a big part of what is going on with the economy," he said.

He said between construction and citrus, his business is down between 15 and 20 percent.

As an example, Yarbrough said he had been selling new tires and recaps to independent haulers - guys who own one or trucks.

"They have disappeared," he said.

Yarbrough is also having to contend with higher costs. He said there used to two price increases a year per tire brand and now there are six. He added that he has had to increase the cost of balancing a tire with a lead balance weight because of the price of lead has gone up.

Jeff Gourley, president of Advanced Air Systems, is upset about the impact fees and said "it was totally uncalled for" to raise the fees another five percent as commissioners did.

"Thirty percent of nothing is the same as 25 percent of nothing," Gourley said. "The whole country is on the brink of going into a recession because of the housing market, and they want to raise our impact fees; what are they thinking?"

Gourley said the county is not getting anything now from impact fees.

Collections are running at about one-fourth of the county's budget estimate of $2.7 million for the current fiscal year ending Sept. 30. According to Tim Mechling, the county's budget manager, collections through the end of July totaled $596,600.

Gourley, who is not related to Wayne Gourley, said he has reduced his work force. He let three employees go in March.

He has also parked four of his trucks, citing "outrageous" gas prices as the reason.

Gourley, who noted that his sales are down 20 percent since 2006, said he was planning to build a building, but has delayed that project.

While businessmen are understandably concerned about now, the county commission is thinking about the future.

Development could be stalled or stopped - completely by the state Department of Community Affairs - if impact fees don't rise to cover the cost of new roads as well as other infrastructure needed for state approval of housing projects.

Both Yarbrough and Gourley believe county government needs to tighten its belt.

"It seems that they have an open check book," Yarbrough said.