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Panama City delays vote on transportation impact fees to April 24; staff to produce work program and hold stakeholder roundtable
Summary
After extended testimony from builders, the Chamber and residents, the commission voted 5-0 to move the second reading of the proposed transportation impact fees ordinance to April 24 and asked staff to return with a work‑program update on April 8 and to hold a stakeholder workshop before the final hearing.
The Panama City City Commission voted unanimously on March 18 to defer the second reading of a proposed transportation impact fees ordinance until the commission’s second meeting in April and directed staff to return with a work program and timeline.
City staff summarized a series of stakeholder workshops and edits to the draft ordinance, including exemptions and reductions intended to protect small, infill and affordable homes. Jonathan (city manager) said staff had met with industry groups and had revised provisions for residential units under 2,400 square feet and for accessory dwelling units. “I would recommend tabling it to actually the second meeting in April, which would be the 24th,” Jonathan said, noting staff would return earlier with a status update and an aspirational spending plan.
Builders, the Bay Building Industries Association and the Bay County Chamber of Commerce urged additional time to assess changes and coordinate with legislative activity in Tallahassee. Kurt Hartog of the Bay Building Industries Association told commissioners he would prefer the final reading be delayed so builders could gather more information while they were in the state capital. “We’re here today … to ask if we could have the ordinance tabled at least into April so we have more time to discuss this with the commission,” Hartog said.
Staff described major policy elements the ordinance would create: (1) fees charged at building permit issuance rather than at development order; (2) exemptions and fee reductions for certain small‑footprint infill and housing that meets Florida affordable‑housing criteria; and (3) an appeals process (initial review by the planning director or director’s designee, planning board appeal and judicial review to circuit court). The consultant and staff also noted impact fees must meet a “rational nexus” test and tie fees to anticipated transportation improvements.
Commissioners asked staff to produce a geographically specific “work program” identifying where impact‑fee revenues would be spent inside Panama City proper (for example, pedestrian and sidewalk priorities) and in Panama City North (where arterial capacity and lane expansion are the dominant needs). Commissioners discussed staged implementation: staff said a phased rollout is legally defensible and that an initial percentage of the full fee (staff said 25% as a defensible phased start) could be used if the commission chose to phase-in the ordinance.
A motion to set the second reading for April 24 and to have staff return with a timeline and an aspirational work program at the April 8 meeting passed by roll call: Commissioner Street — yes; Commissioner Halligas — yes; Commissioner Lucas — yes; Commissioner Granger — yes; Mayor Rowan — yes. Staff also agreed to continue roundtable sessions with industry leaders and to host a workshop with the commission and public before final action if commissioners request it.
The ordinance remains under consideration; staff and consultants will prepare further materials describing how fee receipts would be programmed and the anticipated effect on different building types and locations within the city.
