Palm Coast City Council approves updated transportation impact fees amid local builder opposition

In the heart of Palm Coast, city officials gathered on July 1, 2025, to deliberate on a pivotal ordinance that could reshape the landscape of transportation impact fees. The atmosphere was charged with anticipation as the City Council reviewed Ordinance 2025-X, which aims to amend Chapter 29 of the city’s code regarding transportation impact fees. This second reading followed a comprehensive study that highlighted the need for adjustments based on extraordinary circumstances.

Senior Planner Fong Wing, alongside Deputy Director Katie Dearing from LTG Engineering and Planning, presented the findings that led to the proposed fee adjustments. The council had previously directed staff to consider specific improvements along US Highway 100 and to revise the fee structure to reflect current economic realities. The proposed changes included the removal of certain exemptions for single-family and duplex platted lots, as well as updates to the appeals process, ensuring that any appeals regarding transportation impact fees would be reviewed solely by the City Council.

The discussion revealed a stark contrast between the city’s projected growth and the realities of recent population trends. Wing outlined seven findings that justified the proposed fee increases, including significant inflation in transportation costs and a projected growth rate that exceeds state averages. However, the council faced pushback from community stakeholders, particularly from the Flagler Home Builders Association. A representative voiced concerns that the proposed increases were excessive and not truly reflective of extraordinary circumstances, arguing that rising construction costs were a widespread issue rather than a local crisis.

As the council members weighed the implications of the proposed ordinance, they acknowledged the need for a balanced approach that would allow for necessary infrastructure improvements while also considering the economic impact on local builders. The council ultimately moved to approve the ordinance, with an effective date set for October 1, 2025, pending final adjustments to the language regarding the appeals process.

This meeting underscored the ongoing challenge of managing growth in Palm Coast, as officials strive to ensure that new developments contribute fairly to the city’s transportation infrastructure. As the council prepares to implement these changes, the community watches closely, aware that the decisions made today will shape the city’s future for years to come.