Grimsley Bill Would Postpone Impact Fees

The red-hot housing market has gone so cold, State Rep. Denise Grimsley has introduced a House bill to impose a three-year moratorium on impact fees.

"The intent is to assist businesses in economic expansion and put Floridians back to work," said Grimsley, R-Lake Placid. "Some counties have voluntarily placed a moratorium already, and others have rolled impact fees back."

HB 1129 was introduced on Feb. 24, and was heard Monday by the Military & Local Affairs Policy Committee. A companion bill, SB 630, introduced by Mike Bennett, R-Bradenton, was referred to Senate committees on Community Affairs, Finance and Tax, Transportation and Economic Development Appropriations, and Ways and Means.

"I'm going to put her on my Christmas card list," said Jeff Gourley, owner of Advanced Air Systems. Builders have applied for only four permits this year to build new houses, he said.

"I don't think it could possibly hurt," Gourley said.

"I don't think it will pass," said Jack Richie, who will chair a committee to help Duncan & Associates to research whether impact fees should be raised, lowered or discontinued in Highlands County. "I don't think the larger counties will allow it to pass. I don't think they can build their infrastructure without a means to do it."

"I think it's a good idea," said Highlands County Commissioner Guy Maxcy, who proposed a countywide moratorium last year. "The length of time, I'm not sure about. We don't know when the economy is going back to normal."

Maxcy would prefer to sunset the legislation after 18 months. "We can take another look at it after that," he proposed.

Impact fees were debated hotly for months on end before they were finally passed in 2006, and implemented in January 2007.

By now, Highlands County commissioners thought they would have collected $17 million in impact fees. Instead of that fat bank account, two years after they started collecting a tax on new homes and businesses, only $2 million has come in.

Opponents predicted impact fees - $5,070 for a 1,500 square-foot house, $15,280 for a 10,000 square-foot church - would be the death of the construction industry in Highlands County.

There's little disagreement that home and commercial builders are on life support these days. But, of course, there was also a housing bust, a mortgage crisis, a meltdown on Wall Street and a worldwide recession.