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Gulfport council adopts ordinance offering permit-fee waivers to attract large developments
Summary
The Gulfport City Council approved an ordinance to waive building-inspection and permit fees for large projects — $10 million inside urban renewal districts and $40 million elsewhere — prompting debate over zoning exemptions, GRC authority and whether the policy amounted to a ‘blank check.’
The Gulfport City Council voted to adopt an ordinance amending Chapter 3, Article 2, Section 3-38 of the code of ordinances to create fee-waiver incentives for large private developments.
The ordinance, moved by Mr. Sellers, directs that building inspection and permit fees may be waived for projects with a total cost exceeding $10,000,000 inside designated urban renewal districts and for projects exceeding $40,000,000 outside those districts. City staff said the measure is designed to provide certainty to site-selection decisions and make Gulfport more competitive for large investments.
City attorney and staff presenters described the policy as a tool to attract grocery stores, large retailers and other capital projects. As one staff member explained, if a developer brings “a $40,000,000 project…we're gonna get the ad valorem, we're gonna get the sales tax,” and the waived fees would be a portion of the incentive package the city offers to secure long-term tax revenue and jobs.
Opponents on the council raised process and oversight concerns. Councilwoman Hines argued the ordinance could function like a “blank check” in areas where zoning is effectively exempt inside an urban renewal district, and she pressed for clearer policies, practices and a comprehensive plan to protect historic and low-to-moderate-income neighborhoods. Hines said she wanted urban-renewal rules and maps tied to a broader “2045 comprehensive plan” before granting broad waivers.
Supporters said predictable, written incentives help remove uncertainty developers cited in prior site-selection negotiations. Mr. Sellers told colleagues the change is a “small step” to make Gulfport more development-friendly while other members noted the Gulfport Redevelopment Commission (GRC) remains subject to council oversight and that any leases or bylaw changes still come to the council for approval.
The council adopted the ordinance on a voice vote with multiple ayes and one recorded nay. Officials said the policy would apply only if a development conforms to an approved urban renewal plan for a district, and council oversight would occur when the GRC brought leases or a district-specific urban-renewal plan to the council.
City staff estimated the foregone permit fees for a $40 million project would be on the order of $50,000 and emphasized that fees are only waived if a qualifying project actually arrives; no city funds are spent unless projects materialize.
The council directed staff to provide additional documentation on urban renewal plans and to circulate existing district maps and plans to members who requested them. The ordinance now becomes part of the city code; any future district-specific plans, tax abatement applications or developer leases will be considered by the council under existing oversight processes.
