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Tampa's new water fee surprises building industry

The city says the impact fee south of Martin Luther King Jr. Boulevard will pay for building a 10-mile pipeline to meet surging demand.

By JANET ZINK
Published January 7, 2006

TAMPA - In a move that stunned the local building industry, Tampa Mayor Pam Iorio has imposed a water impact fee on new homes and businesses in South and Central Tampa.

The fee will pay for a $48-million water pipeline to meet surging demand, which already has reached levels not expected until 2025.

City officials on Friday said they are imposing the impact fee for most of the area south of Martin Luther King Jr. Boulevard. It will add an average of about $1,500 to the cost of each new residence.

Massive growth in the city, including the Channel District, downtown and around Gandy and West Shore boulevards, has made it necessary to build the 10-mile water distribution line, said Steve Daignault, the city's administrator for public works and utilities.

The creation of the impact fee area, which the city calls a "contribution in aid of construction," does not require approval of the City Council or a public hearing.

Most local governments have an impact fee for water service, said Mayor Iorio.

"It's unusual that the city of Tampa hasn't had one of these in place for the last couple decades," she said.

People in the building industry, however, said Friday they were stunned by the decision.

"To pop it out with no notice is totally absurd. It's poor government," said Joseph Narkiewicz, executive vice president of the Tampa Bay Builders Association. "Perhaps the city of Tampa procedures need to be amended. That is just absurd to initiate a major increase in impact fees of that nature without any notice whatsoever.

"When such things occur, the building industry is usually involved in the front end of the process."

He said he understands that the city needs to build water distribution pipes to support new growth. And charging impact fees to pay for expansion of utilities is common, he said. But he wanted to review the city's proposal to make sure the numbers are fair.

Land use attorney Ron Weaver questioned the legality of the city's plan.

"You can only be charged for your own impacts," Weaver said.

Any project that hasn't already been approved by the city for water connections, which must be obtained before getting financing or a building permit, will be subject to the fee. That means a project like Westshore Yacht Club, which has been approved for water, will not have to pay the fee. But New Port Tampa Bay, just blocks away, will have to pay, even though the developer is far into the planning process.

Iorio said she didn't think creating the fee would discourage development in Tampa.

"Most developers understand this is the cost infrastructure," she said. "We have a desirable community. People want to build here."

The problem is not supply, Daignault said, but getting available water to customers. Already, the water department has received complaints about low water pressure in parts of South Tampa that could be caused by an overburdened system.

Construction of the 10-mile pipe from the David L. Tippin Water Treatment on 30th Street near the Hillsborough River through downtown to the Interbay area will start in 2007.

Janet Zink can be reached at 813 226-3401 or jzink@sptimes.com

[Last modified January 7, 2006, 01:12:01]