It’s beyond time to lose these high impact fees, get jobs

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It’s beyond time to lose these high impact fees, get jobs

Opinions

Friday, 10 December 2010 13:46

Mike Horner
Chamber president

To draw employers to Osceola we need to put an end to our exorbitant impact fees. Osceola County is still mired in recession, with 12-percent unemployment and a frighteningly high foreclosure rate. It is critical that our County Commission take dramatic steps to attract jobs.

Osceola County has the highest impact fees in Central Florida. That puts us at a distinct disadvantage when competing with our neighboring counties for business. If a company wanted to build a 50,000-square-foot medical office building in Osceola, they would be charged $1.2 million more than they would pay to locate it in Polk. To build a 25,000-square-foot manufacturing facility, they would pay $100,000 less if they chose to build in Lake County instead of here.
It is a fundamental law of economics that capital goes where it is treated best. In this difficult economy employers are watching every penny. Our location, workforce, regulatory environment, construction costs, land prices, and quality of life are not markedly different from our competitors. With the significantly higher fees, is there a compelling reason to come to Osceola County?
Perhaps when the economy was overheating in the midst of the housing boom there was a legitimate rationale for setting up our aggressive impact fee structure. Commercial and residential development sprang up as quickly as construction workers could build. County leaders could charge the legal maximum amount and the market could readily bear the cost. Unfortunately, in this difficult economy, employers can no longer afford these fees, particularly when they do not have to pay these fees in other counties. It is a buyers’ market and we are just too expensive to compete.
The city of Kissimmee has already taken action. Just last month, Kissimmee reduced its transportation impact fees by 27 percent and waived all transportation impact fees for Qualified Targeted Industries. Polk County has wisely put a two-year moratorium on all impact fees.
I believe our County Commission understands our desperate need to unshackle our economy and is willing to take bold action. The county should enact a one-year moratorium on transportation impact fees. The next year should be spent reworking our impact fee structure to make it more competitive and to examine ending all impact fees on high quality employers. Now is the time for decisive action to jump-start Osceola County’s economic recovery. When you’re in a hole, stop digging!
Mike Horner is president of the Kissimmee/Osceola County Chamber of Commerce.