Flagler County IDA adopts lower, capped fee schedule to attract bond-backed projects
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Summary
The Flagler County Industrial Development Authority voted to keep a $1,000 application fee and set financing fees at a reduced percentage with a $30,000 cap to make industrial revenue bonds more attractive to prospective companies, the board said.
The Flagler County Industrial Development Authority on Tuesday voted to set a lower, more business-friendly fee schedule for industrial development revenue bonds, keeping the application fee at $1,000 and capping financing fees to encourage local investment.
Staff member (S2) told the board the IDA currently charges a 0.5% financing fee and compared Flagler’s structure with nearby counties, noting Orange County’s tiered rates and Pinellas County’s lower cap as examples. Committee member (S4), speaking from a banking perspective, said banks often charge about a quarter-point for deals this size.
“Whether the application is approved or not, they pay a $1,000 fee,” Staff member (S2) said in explaining administrative costs. Committee member (S5) moved that the authority “establish an application fee of $1,000, a financing fee for industrial development revenue bonds of 1 half of 1 percent for bonds under $10,000,000, 1 quarter of 1% for bonds over $10,000,000 with total financing fees not to exceed $30,000,” and the motion was seconded and approved by voice vote.
Board members discussed options including raising the application fee to $1,500, tiered percentage rates and reducing the maximum cap to make Flagler more competitive. Committee member (S6) and others argued a lower cap would better attract applicants; Committee member (S4) suggested starting at a quarter-point and capping at $30,000 as a fair compromise.
The board asked staff to highlight the new fee structure in outreach materials so prospective developers can see Flagler County’s more competitive stance. Staff (S2) said the authority would revise the application and brochure and return to the board for final review at the May 19 meeting.
The vote to adopt the fee schedule passed by voice vote with the members present approving the motion. The board recorded no public comments on the item.
