Bay County builders criticize rising transportation impact fees at public hearing

A heated discussion erupted at the recent Panama City government meeting as local builders and developers voiced strong opposition to proposed transportation impact fees. The fees, which could reach up to $1.7 million for large commercial projects, have raised concerns that they may stifle development and exacerbate the housing crisis in the area.

Jim, a local developer, highlighted the staggering costs associated with the new fees, stating that a 125-unit hotel could face an additional $268,000 in fees, making such projects economically unfeasible. He emphasized that these fees act as a "moratorium on development," particularly detrimental in the wake of rising construction costs and interest rates.

Jeff Marzell, division president for D.R. Horton, the largest home builder in Bay County, echoed these sentiments, arguing that the burden of these fees would ultimately fall on consumers. He pointed out that the current economic climate is already challenging for homebuyers, with many unable to afford homes due to high interest rates. Marzell warned that the proposed fees would further limit affordable housing options, contradicting the city's goals for growth and development.

Brian Knox, a local contractor, raised concerns about the one-size-fits-all approach to the fees, arguing that smaller developments should not be subjected to the same costs as larger projects. He called for a more tailored approach that considers the unique challenges faced by local builders.

Maureen Johnson from Garden Street Communities also expressed frustration, noting that high impact fees could make projects like townhomes, which provide entry-level housing, financially unviable. She urged city officials to reconsider the fee structure to encourage rather than hinder development.

The meeting underscored a critical moment for Panama City as it grapples with balancing infrastructure needs and fostering a business-friendly environment. As local builders continue to voice their concerns, city officials will need to address these issues to ensure sustainable growth and affordable housing options for residents.