Mobility fee discussions to continue
Special meeting called after Cape Council fails to reach agreement on levy on new construction projects
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Cape Coral City Council's wrangle over how to fund transportation infrastructure will continue later this month after the elected board again could not come to a successful vote on how to proceed Wednesday.
Its discussion concerning the imposition of a mobility fee on new construction will continue at a special meeting to be held at 3 p.m. on Sept. 25 in City Council chambers.
Wednesday's lengthy discussion went through motions that failed before the question was called for continuation.
The discussion remained the same - a mobility fee should replace the city’s impact fee that has remained the same for almost two decades, but at what percentage of an increase and at what discount to reach the projected amount of $9,995 for a new single-family dwelling.
A mobility fee is a one-time fee paid by new development, new growth, to mitigate the traffic impact from that growth. The current road impact fee for a single-family home is $3,347 at the time of construction.
Both types of fees are also are assessed on other types of new construction.
Councilmember Rachel Kaduk said the mobility fee issue is the hardest vote she had and is glad she voted no, so she can be on the reconsideration side when the matter comes back before the board. After much thought, consideration, seeing interest rates cut Wednesday and lots of praying, she said this council should not be tying the hands of future councils.
"It still is what the county is at - set to slowly increase at 12.5%. I do feel comfortable with that. I don't want to see any more studies to study what needs to be studied. I want to see actual projects come to fruition on schedule and on budget and the project moving. It's not an easy vote. It makes me sick to my stomach, but we should move forward with extraordinary circumstance," she said.
A finding of extraordinary circumstance allows a local government to bypass standard fee limitations.
Wednesday's discussion was brought back from a Sept. 3 meeting that resulted in a tied 4-2 vote.
"This is a monumental decision and as Councilmember (Joe) Kilraine said, this will establish a legacy for councils in the future to deal with. We can tie their hands, or allow further review in the future. I believe what I have heard from Kilraine is to establish the top end to give that flexibility over time, but only increase next year by 12.5% based on the discount that is applied," Councilmember Bill Steinke said.
Mayor John Gunter said a 12.5% increase each year for the next four years that does not exceed a 50% calculation is what he can support.
"I won't change from my previous vote as long as we are meeting the 12.5% increase and not exceed 50% over a four-year period," he said.
With many agreeing that the amount should stay at a 12.5% increase over the next four years, Steinke again said the longer they take to make up for the years the city stayed stagnant in its impact fees, the bigger the number becomes.
"We are chasing a moving target," he said. "That number was the number in 2018. We are already way behind the eight ball. If $9,996 is the number - that is a dart because that is the number the county came up with seven years ago."
The last motion that was made by Steinke before the continuation was approved, was to switch to a schedule that offers discounts over the first four years. He said the first year would be a 62% discount, the second year a 57% discount, third year a 52% discount followed by a 46% discount in 2029. It would be a 12.5% increase each year.
Many shared they could not support it because they did not have the numbers in front of them as to what the fees would be, and what those fees would be beyond four years.
"I can't vote on something I don't' see those numbers and what it will look like," Councilmember Jennifer Nelson-Lastra said.
Kaduk said they all agree the city needs to switch from an impact fee to a mobility fee and that fee needs to increase.
"It's unfortunate we have the weight of 19 years of not being touched," she said. "I am hoping we can get this passed for the future of Cape Coral. The interest was cut today and we are going to see the market moving. We have a huge deficit, something has to give. We need more road capacity."
The city has received pushback on the issue centered around the amount of the increase as well as its implementation.
The Cape Coral Construction Industry outlined its position in a release issued before Wednesday’s meeting.
“The CCCIA supports a 12.5% increase over four years, capped at 50% of the original fee amount.This phased approach ensures predictability while balancing the city's infrastructure needs with housing affordability and economic growth,” the release states.
“In addition, the CCCIA will request confirmation that existing deficiencies are not included in current mobility plan.
“Further, the CCCIA's position is that once the mobility fee has been paid for on a residential unit, no additional fees should be imposed for remodels, rehabs, or rebuilding of that same unit. This ensures fairness and avoids double-charging homeowners or builders.”
The release was signed by Wade Kundinger, the CCIA’s executive director.