Daytona Beach adopts reduced linkage fees to seed affordable housing trust fund

The Daytona Beach City Commission voted 5-2 on April 16 to adopt workforce housing linkage fees for new and expanded commercial development, approving a package of fees reduced by 25% from the staff-recommended amounts and directing staff to return with a proposal for a recurring funding source tied to growth.

The vote followed a consolidated public hearing on an ordinance that would adopt findings of a “workforce housing linkage fee nexus study” and create a dedicated Affordable Housing Trust Fund. Commissioners approved the motion to proceed with linkage fees as amended; Commissioners Reid, Strickland, May, Henry and Mayor Derek L. Henry voted yes; Commissioners Perez and Cantu voted no.

Supporters of the ordinance came primarily from a faith‑based coalition that urged immediate action. Pastor Eddie Lake, a Faith coalition representative, said the coalition was “very excited” about a dedicated funding source and urged passage. Jackie Moll, another Faith organizer, quoted Dr. Martin Luther King Jr., saying the repeated delay had a human cost: “justice too long delayed is justice denied.” Representatives of Halifax Health and other large local institutions urged caution, saying the proposed fee schedule would hit hospitals, colleges and major employers; Kelly Parsons, chief legal officer at Halifax Health, said “We agree on the what, but we don't agree on the how.”

The business community — represented by the Daytona Regional Chamber and local developers — offered an alternative funding plan that would set aside a percentage of the annual increase in nonresidential ad valorem revenue as a recurring source for the trust fund. Chamber presenters said that approach could produce a larger, more-stable revenue stream and could be used for repairs and resilience work that linkage fees cannot fund. Chamber spokesperson Jessica Gao told the commission the alternative could produce more funding than the linkage fees in a typical year and gives flexibility to use money for maintenance and storm repairs.

Commissioners said they supported the goal of creating a dedicated affordable housing revenue stream but differed on how best to raise it. Several commissioners urged combining approaches. Commissioner Henry urged compromise and asked staff to return with numbers to evaluate a contribution percentage tied to the city’s budget growth. The commission directed staff to prepare a follow-up proposal on a recurring percentage set‑aside and to schedule the statutory public workshops and ordinance readings required for adopting linkage or impact fees.

The ordinance as amended applies to new commercial development and to commercial expansions that require permits; residential linkage fees were included in the study but will not be collected under the approved motion. Staff and presenters repeatedly noted that the linkage fee methodology rests on a nexus study prepared for the city; staff said the fees are intended to fund new affordable housing capacity, not repair existing units.

What happens next: staff will return with the mechanics and recommended percentage for the chamber’s recurring funding proposal and will prepare final ordinance language and public workshops required by law. Commissioners also requested that staff evaluate legal risks and make the statutory and administrative record available before final readings.

Votes at a glance

- Motion: “Move that we move forward with linkage fees with the reduction of 25% in all the linkage fees across the board.” — Mover: not specified in the public record; Second: not specified. Outcome: approved 5–2. Vote tally recorded in meeting minutes: Commissioner Reid — yes; Commissioner Perez — no; Commissioner Strickland — yes; Commissioner May — yes; Commissioner Cantu — no; Commissioner Henry — yes; Mayor Derek L. Henry — yes.

Key context and caveats

- The ordinance adopts findings from a workforce housing nexus study prepared for the city (referred to in the hearing as the “linkage fee nexus study”). Staff said residential linkage fees were retained in the study but will not be collected under the adopted motion. Presenters agreed that linkage fees can only be used for adding new housing units or capacity and generally cannot be used to repair or rehabilitate existing private housing stock. - The business coalition’s alternate proposal would use a percentage set‑aside of annual nonresidential property tax growth to seed the same trust fund; that option can be used for repairs or resilience work but would require separate budget approvals and annual commitment by the commission.

Quotes

- “This wait has almost always meant never,” Jackie Moll said, quoting Dr. Martin Luther King Jr., to emphasize urgency. - “We agree on the what, but we don't agree on the how,” Kelly Parsons, Halifax Health chief legal officer, said during public comment.

Proper names and authorities cited

- Strategic Planning Group Inc., Workforce Housing Linkage Fee Nexus Study (referenced by staff). - Florida Statute section 166.04151 (referenced in the ordinance text provided at the hearing).

Speakers

- Jackie Moll — co‑chair, FAITH (faith coalition); (public comment, quoted). - Eddie Lake — pastor, Allen Chapel; FAITH board member (public comment). - Father Philip Jeter — Our Lady of Lourdes Catholic Church; FAITH (public comment). - Michael Schnapps Tyler — Daytona Regional Chamber (presentation). - Jessica Gao — Cob Cole / Chamber presenter (presentation). - Kelly Parsons — Chief Legal Officer, Halifax Health (public comment). - Mayor Derek L. Henry — Mayor, City of Daytona Beach (chairing the hearing). - Commissioners present and recorded in the vote: Paula Reid; (first name not specified) Perez; Ken Strickland; Quanita May; (first name not specified) Cantu; (first name not specified) Henry (recorded separately); Derek L. Henry (Mayor). - Staff: Natalia (CFO) (introduced the item); Ken Thomas (Redevelopment Director); Assistant City Attorney Kira Hans (legal advisement).

Clarifying details

- The ordinance uses the city’s nexus study to compute per‑square‑foot linkage fees for commercial/industrial/office/hotel categories; staff read recommended figures for each category in the packet but the commission approved a uniform 25% reduction from those staff numbers. - Staff and presenters noted linkage fees apply at the time of permit issuance and would also apply to expansions of existing commercial uses that increase square footage. - The Chamber’s alternative modeled a recurring set‑aside from the annual increase in nonresidential ad valorem revenue; staff said that approach can produce a predictable, multi‑year funding stream and can be used for repairs, resiliency and other eligible trust‑fund uses.

Proper_names

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Discussion vs decision

- Discussion: lengthy public comment from faith leaders, business representatives, health system and residents; debate among commissioners about legal risk, allocation, and whether to adopt recurring ad‑valorem set‑aside. - Direction: staff directed to return with a proposal for a percentage set‑aside from nonresidential property tax growth and to schedule required statutory workshops and provide legal analysis. - Decision: motion to adopt linkage fees with a 25% reduction carried, 5–2.

Provenance

- topicintro: transcript block beginning with the introduction of item 9a (secondary public hearing on linkage fees). Evidence excerpt: “Item 9 a is the redevelopment of neighborhood services essential housing linkage fees. This is an ordinance on secondary public hearing… adopting findings of the workforce housing linkage fee nexus study prepared by strategic planning group inc…” (meeting transcript, item 9a introduction). - topfinish: transcript block at the recorded roll call and vote on the motion to proceed with linkage fees reduced 25% (meeting transcript, vote recorded as passing 5–2).