By CARRIE JOHNSON and MICHAEL SANDLER
Published October 22, 2004
ST. PETERSBURG - City Council members, hoping to preserve a rule that exempts developers from paying for the traffic their projects create, offered a compromise to county leaders Thursday.
The city agreed to carve most of downtown out of the area included in the "no-fee zone," which means downtown developers would be subject to the same transportation impact fees paid elsewhere in the county.
The area offered up by the city includes most of the downtown waterfront, from Fourth Street to Tampa Bay, and from Fourth Avenue N to Seventh Avenue S.
But the city's proposal would preserve the impact fee exemption in Midtown, the most economically disadvantaged area of St. Petersburg. City officials say it is the area that most needs the no-fee zone.
"Downtown is an area that has largely accomplished its redevelopment goals," said Joe Kubicki, the city's transportation planning director. "By doing this, we're hoping the county will understand that the rest of the area, especially Midtown, hasn't undergone the renaissance" as other parts of the city.
Council members unanimously approved the compromise at their regular meeting Thursday.
The dispute between the county and city started earlier this month when the Pinellas County Commission voted to eliminate the no-fee zones. After city officials and others complained, commissioners agreed to reconsider the matter after a public hearing scheduled for Tuesday.
County officials said they thought eliminating the zones was a matter of fairness. City leaders say they hope that charging downtown developers the fee would satisfy the county's needs.
St. Petersburg is not the only locality with a no-fee zone. Safety Harbor and Pinellas Park have similar areas, and those too, would be eliminated.
Mayor Rick Baker said he was reluctant to offer the compromise because he thinks all of downtown fits the criteria for a no-fee zone.
The fee is intended to pay for the infrastructure needs created by new development. Because St. Petersburg is fully developed and doesn't need additional infrastructure, Baker said the fee was essentially a tax.
"I don't know how anyone could vote for a new tax on the businesses we're trying to bring to Midtown," he said.
The Metropolitan Planning Organization, a board of county commissioners and city officials, heard a similar compromise proposal last week, but voted it down.
Commissioner Bob Stewart, who serves on both the County Commission and MPO, led the task force that recommended the commission allow the no-fee zones to expire.
Stewart said no-fee zones threatened to eliminate an important source of revenue because other cities wanted them, too. He has been firm in his view, but said he would hear the city's full proposal before making a decision.
"Bring it on," Stewart said Thursday. "I'm anxious to hear what they have to say."
