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Water impact fee rattles developers

The Tampa mayor is criticized for not consulting with builders or members of the City Council.

By JANET ZINK andMICHAEL VAN SICKLER
Published January 10, 2006

TAMPA - Last week, a top official with the Tampa Bay Builders Association met with Mayor Pam Iorio for a routine update on industry issues. Iorio told him there would soon be an announcement on water that might affect builders.

But Joseph Narkiewicz said he was stunned two days later when Iorio announced she had created a $1,500-per-unit impact fee to pay for a $48-million water distribution line for South Tampa.

"Most communities will provide notice of an increase in such fees," Narkiewicz said Monday. "As it is now, there's pure turmoil."

Critics say Iorio misstepped by not bringing builders into the process earlier. Others applaud her for taking a quick and decisive stance.

Some City Council members, who were briefed last week on the fee, agreed that steps need to be taken to provide water service to the massive influx of development in South Tampa, and developers should help pay for new water pipes.

But they say they should have been given a heads-up about the policy before hearing about it from newspaper reporters.

But Iorio, who has expressed frustration with the slow pace of government, defended the process.

"There are dozens and dozens of affected people," she said. Iorio added that engaging them all in the discussion would have been time-consuming and would have delayed construction projects or prevented the city from charging the fee on major projects now in the works.

Her decision was well researched, she said. Reiss Environmental Inc. spent nine months studying the city's water distribution system in South Tampa. A Tallahassee law firm with expertise on utility rates and fees helped determine the best way to pay for the pipe, said Steve Daignault, the city's administrator for public works and utilities.

But that nine months of study didn't include conversations with developers. Iorio and her staff will take care of that in the coming weeks.

"If any of the technical aspects are wrong, we'll revise accordingly," she said.

Still, council member Shawn Harrison said a courtesy call to developers, if not more, would have been prudent.

"I don't agree that we should be able to impose that kind of fee on any entity, citizen or group of individuals, without a public hearing," White said.

At least one politician hopes Iorio's action will catch on.

Hillsborough County Commissioner Kathy Castor, who represents South Tampa, has tried without success to get commissioners to raise impact fees on new homes to pay for new schools.

"This shows Hillsborough County that other jurisdictions are addressing growth," Castor said. Unlike Tampa, the St. Petersburg mayor can't create a water impact fee without the City Council's permission. The council also would require a public hearing before voting on any new fee, according to City Attorney John Wolfe.

Narkiewicz said some builders will have to reconfigure their projects now that a water impact fee is in place for most of Tampa south of Dr. Martin Luther King Jr. Boulevard.

"There are contracts that have been signed that have not taken into account the impact fees. There are people who got loans that didn't take into account impact fees," he said.

--Times staff writer Carrie Johnson contributed to this report.

[Last modified January 10, 2006, 01:51:15]