Council adopts updated impact fees; members raise concerns that marina charges may be impractical

The Palm Bay City Council approved updated impact-fee schedules for fiscal years 2025–26 through 2028, covering police, fire and transportation facilities. The resolution adopting impact fees passed unanimously.

Council discussion focused on whether the underlying study addressed marinas and how fees would apply to a potential marina project on city land. A councilor raised that he had not seen marinas specifically addressed in the Stantec impact-fee study and said an initial per-slip transportation impact calculation could impose costs “over $600,000” for a marina development, a figure he said might render a project economically infeasible. Staff said it could not locate a prior study that specifically modeled marinas and that historically Palm Bay has not had marinas in large numbers; staff noted the fee structure contemplates trips generated by recreational uses such as marinas, golf courses and tennis courts.

City Manager Morton suggested a path forward: when a credible developer demonstrates performance, the city could negotiate an impact-fee agreement on a case-by-case basis to address development feasibility. Council members expressed support for retaining the fee schedule while preserving discretion to negotiate agreements for individual projects.

Council voted 5-0 to approve the impact-fee resolution. Council asked staff to research whether the Stantec analysis included marina-specific modeling and to report back with comparative data on how neighboring municipalities set similar fees.

The discussion combined policy review and an attempt to preserve local leverage: councilors said they did not want to price out desired waterfront development but also wanted fees that reflect the city’s infrastructure needs.