Panama City delays adoption of transportation impact fees, sets July 8 target after stakeholder workshops

The Panama City Commission on April 24 delayed final adoption of a transportation impact fee ordinance and set a target adoption date of July 8, directing staff to hold at least one additional public workshop in June and to work with stakeholders on implementation details.

The ordinance would establish a citywide transportation impact fee to pay for capacity improvements tied to growth and would take effect Oct. 1 if adopted, city staff said. Staff summarized changes made after a series of public workshops and stakeholder roundtables: a delayed effective date of Oct. 1, 2025; a 10-year sunset set to Sept. 30, 2035; a phased implementation with a 50% reduction in years one and two and full implementation Oct. 1, 2027; exemptions for single-family homes under 2,400 square feet and accessory dwelling units under 1,200 square feet; exemptions for state-defined affordable housing; credits for previously paid fees when rebuilding; and a process for owners or developers to propose alternate fee calculations or credits for on-site improvements.

Why it matters: City officials said the fees are designed to make growth pay for the roadway capacity it creates rather than shifting costs entirely to existing taxpayers. Commissioners and speakers highlighted Panama City North as an area likely to generate major new traffic and said projects such as widening Star Avenue will require dedicated funding to proceed.

Among members of the public, the Bay Building Industries Association voiced concerns about timing, a lack of an implementation plan and disproportionate effects on day cares, medical clinics and smaller homes. "We were looking for some type of implementation plan — where the money's going — and it's still not there," said Kurt Hartog of the Bay Building Industries Association. Resident Josh Shaw urged delay of final reading until the newly elected commission is seated. Patrick Jones, a resident, said the current draft remains unfinished and could create "deal-killing" fees for some businesses.

City Manager-level staff described the ordinance's legal constraints and offered a narrower set of policy choices the commission could use as incentives, including temporary waivers for targeted uses such as day cares. Staff also emphasized that state law limits fee increases during the first four years after adoption and requires strong procedural steps for future increases.

After discussion, the commission voted unanimously to set the ordinance for final action July 8, 2025, and to hold a workshop in June that will include builders, other stakeholders and newly elected commissioners so they can be briefed before final adoption. Staff confirmed the ordinance will allow geographic-specific collections to be spent within the area where they are collected.

The ordinance was previously the subject of a first reading and multiple public workshops and roundtables beginning February 2025; staff said they will return with any technical adjustments discussed during the June workshop prior to the July 8 vote.

The commission’s actions were procedural — the body did not adopt the ordinance on April 24 but set the schedule and parameters and asked staff to continue stakeholder engagement.

Ending: The July 8 vote will be the commission’s opportunity to adopt the fee with the phased schedule and exemptions described by staff or to change the structure based on further public input and legal review.