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Highlands Today

Impact Fees Are Not What's Hurting County's Economy

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By None Selected

Published: September 19, 2007

A lot of people are saying that impact fees are the cause of our area's economic woes. They are wrong of course, but that never stopped anyone from making incorrect claims about something they don't like.

The county's new impact fees have little or no bearing on the area's construction slow down. That was headed this way before they were enacted, but to beat the deadline last Jan. 1, many builders pulled building permits, which caused an artificial boom. Demand for these houses was not there in the first place.

All it takes is a drive down most any street in Highlands County to see all kinds of existing houses sitting on the market, begging for buyers. There are no impact fees associated with these houses. It's just that people are not buying right now.

Just a couple of years ago, sellers could just about name their price. The market was red hot and houses were sold in days and hours instead of weeks, months or years. This same phenomenon happened across the country. The market tanked just about everywhere at about the same time.

There's no doubt that an extra $5,000 on a typical house has some effect on a potential home buyer, but not as much as some people want to claim. What does matter is if he or she can sell their current house to buy a new one.

Another rumor swirling around is that the Olive Garden planned for The Shops at Shelby Crossing has been cancelled due to impact fees. That's not true. Olive Garden still has plans to build there in the next year. However, there have been some permitting issues but soon they expect to get under way.

The other fact that people are forgetting is that impact fees were enacted because the state will no approve more development unless money is available to build the infrastructure these developments use. This isn't about county officials trying to find a way to gouge developers.

Many people are reeling from tough economic times. Realtors, retailers and just about everyone else feels it in their pocketbooks. The reason isn't impact fees, though. It's a down real estate market. With time, this should turn around. This area has too much going for it for the market to remain depressed for long.

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