Panama City discusses high proposed transportation impact fees; commissioners, builders push for phased approach

Panama City officials, consultants and local developers spent more than two hours at a workshop debating a proposed Transportation Impact Fees Ordinance that would charge new development for roadway capacity improvements. The hearing focused on how large the fees should be, which uses should be exempt, how fees interact with county and FDOT requirements, and whether the city should adopt the consultant study but delay or set fees to zero while officials refine exemptions and a work program.

The discussion matters because the proposed fees are among the highest in Northwest Florida and, if implemented as drafted, several speakers said the rates could make small commercial projects and lower-cost housing uneconomic. The commission heard technical background from Kimley‑Horn engineers, ordinance changes from city staff, and multiple public comments from builders and business groups warning that the fees would be passed to buyers and could halt projects.

Vincent Spahr of Kimley‑Horn, the consultant who led the study, told the commission that Florida law requires impact fees to be proportional to the capacity demand new development creates and that impact‑fee revenues “may not be used for operation, repair, and maintenance; strictly for capacity.” He summarized the methodology used to calculate fees (trip generation × capacity cost, with pass‑by credits and ad valorem credits applied) and listed allowable uses that include design,…