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Ad blasts proposed impact fee hike

As a vote approaches on raising the fee, the Realtors association warns the increase will drive up housing costs.

By JUSTIN GEORGE
Published March 16, 2005


Think A Rise In Impact Fees Won't Affect You. Think Again!

So say big bold letters in a full-page ad the Realtors Association of Citrus County Inc. took out on the back page of the Citrus Times on Tuesday.

The ad was an unusual step for opponents of proposed impact fee increases who have never appealed directly to the public for lowered building fees. And it proves how contentious the issue is becoming as Tuesday approaches and county commissioners are set to double the fees.

The ad urges residents to contact their county commissioners about the proposed increase and lists telephone numbers for each one.

Builders pay impact fees that make up for the strain that occupants of new buildings and homes put on county services such as libraries, roads, schools and public buildings.

The county's consultant, Tindale-Oliver & Associates of Tampa, is recommending increases that would push the total from $3,131 to $6,644 per average home. Now impact fees raise about $30-million over five years. With the increase, they would generate $74-million for county infrastructure.

But home builders and real estate agents warn that such increases, which are inevitably passed on to new home buyers, would doom their industries and drive buyers to more affordable counties. They also say the fees, which will drastically boost the costs of new commercial buildings, would also affect all residents in the form of higher prices for goods and services.

"Impact fees drive up the price of housing, all housing," the Realtors' ad said. "If you or anyone you know plans on buying a home, they will pay much more for it because of high impact fees. Business owners will pass on the cost of impact fees to their clients. You can bet the cost of food, supplies and services will rise if business owners have to pay thousands more for their new buildings."

Gene Wade, the Realtors association president, said people might think this message runs counter to a real estate agent's job: Bigger home sales mean bigger profits.

"If the price goes up, we make more money," Wade said. "But that's not our concern."

The 700-member organization is concerned that the fees will put the future home market out of reach of those growing up here, he said. Instead of relying on impact fees, he said, commissioners should wait to see what kind of windfall that rising property taxes will bring the county next year.

Commissioners viewed this as another delay tactic by the home industry. But the ad caused a bit more of a stir at the county because it was the first to seek the public's help in the cause.

"I've never seen this concerted effort to defeat impact fees," Commission Chairwoman Vicki Phillips said.

Many of the claims raised in the ad have been challenged by the county's consultant and a professor who studies impact fees, and who was hired by the consultant.

"I was sort of surprised that they would go to that extreme and that expense, and I was a little concerned about misinformation that might be absorbed by citizens," Commissioner Gary Bartell said. "But having said that, everyone's entitled to their rights."

A full-page ad in the Citrus Times costs business associations about $900.

-- Justin George can be reached at 352 860-7309 or jgeorge@sptimes.com

[Last modified March 16, 2005, 01:31:14]


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