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Fair Fees. Real Growth. Honest Accountability.
The Flagler Home Builders Association supports lawful impact fee increases—but opposes unjustified claims of “extraordinary circumstances.”
The Flagler HBA supports increasing impact fees up to the legal 50% limit to fund parks, fire, and transportation—but challenges the City’s unsupported claim of "extraordinary circumstances" used to exceed that cap. Learn the facts.
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No Extraordinary Circumstances Exist: Weakened Nexus: Inconsistent with Proportionality Requirements: Signals Overcollection for Capital Improvements:
Construction Cost Trends: Spike and Stabilization |
| Why Rising Construction Costs Don’t Qualify as Extraordinary Circumstances Florida law only allows impact fees to rise beyond 50% in the presence of extraordinary circumstances. Rising construction costs—especially national trends—do not meet that threshold. ✅ Cost spikes were temporaryCosts surged in 2021–2022 due to supply chain disruptions—but have since stabilized. ✅ Costs have returned to normal growthBy 2024, construction cost increases have slowed dramatically. These are not ongoing, unforeseen, or locally specific. ✅ Florida law requires moreState statute demands that extraordinary circumstances be severe, unforeseen, and local. ✅ The City's own data contradicts its positionPalm Coast is now projecting less growth than in 2020, yet using outdated cost spikes to double impact fees. That’s not planning. That’s overreach. |
Why Rising Construction Costs Don’t Qualify as Extraordinary Circumstances
Florida law only allows impact fees to rise beyond 50% in the presence of extraordinary circumstances. Rising construction costs—especially national trends—do not meet that threshold.
✅ Cost spikes were temporary
Costs surged in 2021–2022 due to supply chain disruptions—but have since stabilized.
✅ Costs have returned to normal growth
By 2024, construction cost increases have slowed dramatically. These are not ongoing, unforeseen, or locally specific.
✅ Florida law requires more
State statute demands that extraordinary circumstances be severe, unforeseen, and local.
General inflation is expected, and already accounted for in normal fee increases.
✅ The City's own data contradicts its position
Palm Coast is now projecting less growth than in 2020, yet using outdated cost spikes to double impact fees. That’s not planning. That’s overreach.
Our Position on Impact Fee Increases
The Flagler Home Builders Association (FHBA) supports the City of Palm Coast in its efforts to responsibly plan for future growth and maintain essential public services. We recognize the need for updated infrastructure and agree that increasing impact fees—within the limits established by state law—is a reasonable and appropriate course of action.
Specifically, FHBA supports raising impact fees for parks, transportation, and fire services up to the legally allowed maximum of 50% over a four-year period, as outlined in Florida Statutes. These increases can help the City address legitimate infrastructure needs while preserving economic stability and housing affordability for our residents.
However, we strongly oppose any increase beyond the 50% cap based on the claim of "extraordinary circumstances." This legal threshold was designed by the Florida Legislature to prevent excessive, unjustified burdens on new development and must be supported by clear, compelling, and extraordinary evidence—which we believe the current circumstances do not provide.
This page outlines our concerns in detail, including data inconsistencies, legal standards, and the broader implications for housing, jobs, and the local economy.
Comparable Cities to Palm Coast
It is common in the course of impact fee studies for other municipalities impact fee rates to be compared. Instead of only selecting the closest municipalities, we found the most similar municipalities across the state:
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Some additional information on the comparable municipalities fees:
Update Timing MattersImpact fees must be based on current data—but they must also be justified within the framework of state law. Palm Coast’s update is one of the most recent in the region, yet it proposes to double fees beyond the legal 50% cap.
This reinforces our position: Palm Coast can address infrastructure needs within the same legal framework followed by its peers. No available records or public meeting documents indicate that any of the listed cities have exceeded the 50% statutory limit on impact fees by claiming ‘extraordinary circumstances,’ even during recent updates. |
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