- April 19, 2024
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Home construction could create about 250 direct jobs and 50 indirect jobs, according to one city official.
If the city were to enact a moratorium on impact fees, one builder believes that approximately 30 to 50 new construction permits would be pulled within the next six months.
“(A moratorium would help) to create jobs and keep things rolling,” Tony Amaral Sr., of Tony Amaral Custom Homes, said Thursday.
Amaral said there is “no doubt” that growth would occur if a moratorium were put in place. “I won’t hesitate a minute,” he said.
The idea of cancelling the impact fees stems from a suggestion put forth at Tuesday’s City Council workshop by Palm Coast City Councilman Frank Meeker. Implementing a one-year moratorium on commercial impact fees throughout Palm Coast, Meeker said, could spur development and job growth.
“The argument is ... we’re running impact fees right now, and we’re complaining we’re not getting enough business into town,” Meeker said Wednesday in a follow-up interview. “How’s that working for us?”
If the moratorium doesn’t promote growth, Meeker said the fees can be put back into place.
While Meeker was specifically talking about a moratorium on commercial impact fees, City Councilman Jason DeLorenzo said a similar moratorium on residential construction could create jobs as well.
According to DeLorenzo, 100 houses being built creates the full-time equivalent of 300 jobs — 250 direct jobs and 50 indirect jobs.
“It’s pretty significant and right now, our permitting level is about 10 to 15 permits per month,” he said. “So if you could increase that, you’re going to put people to work quickly.”
DeLorenzo said Wednesday he’d be in favor of a moratorium.
“We’re not collecting a whole lot (in the city and county), so there’s not a ton of risk,” he said. In April 2012, the unemployment rate in Flagler County was 11.6%
Added DeLorenzo: “Our unemployment rate as a percentage is big. As a number, it’s not insurmountable.” Adding 300 to 600 jobs in construction could put a dent in the unemployment, DeLorenzo said.
But City Councilman Bill McGuire said he’s not sure there’s a legitimate demand for building homes in Palm Coast.
DeLorenzo said he thinks there is demand. “We are at a point with existing housing that it costs so much to bring a house to livable condition that new construction is a viable option,” he said. “But if I have to strike a check for $16,000 or $17,000 right off the top before I get anywhere — which in this market is almost 10% of the cost of the house — it’s cost-prohibitive.”
Amaral, who has been in Palm Coast for 29 years, said he could create at least 30 positions immediately if the impact fees were waived.
Mayor Jon Netts said he wants to see proof that a moratorium would work.
“The data ... to convince people this is a good thing ... might not be out there,” Meeker said. “You just have to make an intuitive argument.”
THE IMPACT OF IMPACT FEES
2009 P-section home
Water and sewer: $7,901.00
Transportation: $3,841.11
Parks: $1,229.60
Fire: $190.29
School Board: $3,600.00
Local Total: $16,761.40
State fees: $29.44
Permit fees: $1,318.60
Total fees: $18,109.44
2012 P-section home
Water and sewer: $8,181.00
Transportation: $2,827.56
Parks: $1,281.86
Fire: $198.38
School Board: $3,600.00
Local Total: $16,090.78
State fees: $4.00
Permit fees: $1,438.20
Total fees: $16,328.60
