County balks at fees increase for development

PORT CHARLOTTE — Officials say they want to dramatically increase the fees charged to new home builders, but fear they could be sued by developers.

So the Charlotte County Board of Commissioners decided unanimously Tuesday to postpone that decision until October 2027 when a state law expires.

Commissioners adopted a consultant study that will serve as an indicator to area builders where fees may be going in the near future.

Several state laws hinder the county’s ability to raise impact fees on single family homes. Commissioners have complained in the past about the Legislature usurping local control over development.

A 2021 state law limits impact fee increases to 50%, and at that, they must be phased in over four years.

Consultants advised the County Commission that it needs to raise single family home fees by 242%, but that is no longer legal without claiming extraordinary circumstances.

That is an option for the county, a consultant advised commissioners.

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The board could have adopted a 50% increase in single-family home fees Tuesday, with fees nearly doubling, from $7,804 to $14,388.

Several current lawsuits led county attorney Thomas David to advise against that. Large developers in Palm City and in Manatee County have successfully sued commissioners over their large increases in impact fees.

The developers cited a different law passed after hurricanes devastated Florida in recent years. A 2025 law states that municipalities may not introduce restrictive land use regulations in wake of a disaster. The verbiage in the law has allowed developers to persuade local judges to block impact fee increases until at least October 2027.

One of the lawsuits is being appealed to a higher court, David noted. Manatee County has been required to put $14,000 in collected impact fees into an escrow account while the case plays out.

Other counties, however, are going ahead with fee increases, he said.

“There’s a potential that we could lose everything if we adopt (fees) today,” Commissioner Ken Doherty said. “I think it’s too risky to adopt the fees today.”

Commissioner Stephen R. Deutsch lamented the recent moves by the Legislature.

“I remember the good old days before the state decided to take control of local communities,” he said.

Commissioner Christopher Constance noted how far behind the county is in raising fees.

“We are way behind with regard with how many new people are moving in and how far behind we are with upgrading and expanding our transportation infrastructure,” he said.

WHAT ARE FEES FOR?

Impact fees are used to address needs that a new development places on a community. They apply at different rates to multi-family and commercial properties. Transportation updates are usually the largest part of the fees.

Charlotte County added parks and libraries for the first time this year, given the voters’ decision to restrict property taxes through Amendment 3.

Some Florida counties are charging much higher single-family home impact fees, according to the consultant study.

Charlotte County is in the middle of the pack, but many counties are trying to increase fees, the consultant noted. Single-family home fees in Manatee County are approaching $35,000.

Charlotte County would like to charge $26,675, but must make a case for “extraordinary circumstances” as it did in 2021. Rapid, concentrated development was the argument used then, along with infrastructure requirements.

Commissioners Joe Tiseo and Doherty noted commissioners should work with area legislators to clarify the language in the law limiting land use regulations post disaster.

If that happens, the fees could go up even sooner, Doherty noted, without risk of a lawsuit.

Once the Legislature enacts Amendment 3, Tiseo said, the county will need to raise funds in a manner that only affects new residents, not existing.

“That’s another revenue stream we can charge new growth, not the people that are here,” he said of impact fees.