- December 13, 2025
The Flagler Home Builder's Association has served Palm Coast a 14-day violation notice, the first step in legal action over Palm Coast's recent increase to impact fees.
In June, the Palm Coast City Council increased its impact fees dramatically, arguing the extraordinary circumstances of recent extreme growth and increased inflation costs over the last six years. . Though the impact fees vary for type of development, for a single-family home, the impact fees increased by $5,881 across all three fees: impact, fire and transportation.
"The Flagler HBA alleges that the City unlawfully adopted three separate impact fee increases which more than double the impact fees on homes and businesses," a FHBA press release said.
Typically, Florida state law prohibits municipalities from increasing impact fees by more than 50% of the current rate and any increase must also be phased in over a two- to four-year period and the fees can not be increased but once every four years.
However, Florida Statutes allow exception in the case of extraordinary circumstances. The lawsuit will argue "that the city’s fee increases lack the required nexus to new development and violate state law, creating an unnecessary burden on residents, businesses, and potential homeowners," the press release said.
Attorney Daniel Webster of Daytona Beach is representing the FHBA, Intracoastal Construction, LLC, Integrity Homes USA, LLC, Thomas Consulting and Construction, LLC, 1621 Building and Remodeling, LLC and Florida Green Building Construction, Inc., contractors and real estate developers that do business in Palm Coast. Palm Coast residents William R. Barrick and Brad M. Thomas are also listed as his clients in the legal notice.
"My clients are prepared to file a civil action to contest all three (3) Ordinances if the City does not repeal, or take affirmative action as required pursuant to the above- referenced statutes to repeal, within fourteen (14) days after receipt of this notice," the legal notice reads.
FHBA Executive Officer Annamaria Long said the notice accurately states he defects and deficiencies of the ordinances the city passed.
“We are committed to protecting citizens and ensuring a fair business environment in our community,” she said.
