For the first time in its 26-year history, Palm Coast government faces a lawsuit challenging its recently adopted schedule of development impact fees, the one-time charge levied on builders or developers on new construction to defray the “impact” of new residents on roads, public safety parks and other services.
The Flagler County Home Builders Association (HBA), five local builders and an individual jointly filed the 69-page, four-count suit in Flagler County Circuit Court late Wednesday afternoon. The suit challenges the City Council’s unanimous adoption last June of sharply higher impact fees for fire services, parks and transportation.
The lawsuit is not seeking damages, monetary or otherwise. It is seeking the immediate and permanent invalidation of the ordinances that enacted the higher impact fees. It is an extraordinary challenge. It is neither unprecedented nor unheeded, though with extreme rarity.
The fee increased to $942 for a single-family house, a 117 percent increase. The parks fee increased to $3,164 (73 percent) and the transportation fee to $7,540 for a typical house, a 115 percent increase. The higher fees went into effect the same day HBA filed the lawsuit.
The size of the increase exceeded the limit allowed by law within a four-year period as Palm Coast invoked “extraordinary circumstances,” an exception to the law that permits higher fees as long as the city justifies them factually. A consultant’s studies justifying the higher fees found that the city’s population increase continues to outstrip the Florida average and construction costs continue to rise significantly.
The lawsuit challenges both the size of the impact fee increases and the city’s claim of extraordinary circumstances. HBA Executive Officer Annamaria Long had verbally challenged the increase on both grounds before the council voted on June 17. The challenge was repeated in late August in HBA’s notice of its intent to sue–the advance notice is required by law–in a 19-page brief by Daniel Webster, the Daytona Beach attorney representing HBA and the other parties, so today’s development was expected. Webster filed the lawsuit.
While there is never an opportune timing for a lawsuit, especially for the defendant, the filing is especially vexing to the city on several grounds: the Council is just now emerging from a year of turbulence and costly litigation, some of it self-inflicted, though the approval of new impact fees was–builders aside–not among the controversies; the Council continues to seek a new city manager as a previous attempt collapsed from the weight of the council’s own strife; and the off-year election season has already begun, with up to three seats on the council certain to tun over (though Council member Dave Sullivan, in a switch, has not entirely ruled out another run).
“This City Council recognizes that responsible growth and development are essential to maintaining our quality of life, infrastructure integrity, and sustainable economic prosperity for all residents,” Vice Mayor Therea Pontieri, a lawyer, said today in response to the filing. “To ensure new developments contribute their fair share towards the costs of necessary public facilities and services, we instituted impact fees we know are necessary to sustain future growth without sacrificing our quality of life. We engaged in lengthy deliberation and considered many different factors. I stand 100 percent by our decisions and am confident those decisions will be upheld.”
The lawsuit parallels and considerably amplifies the arguments outlined in the August notice. It charges four counts, the first focused on what’s commonly known as Senate Bill 180, the controversial law the legislature adopted last spring that eases regulations on numerous post-storm reconstruction and development activities, but that also bans changes to local government’s growth rules that are burdensome to developers.
The newly increased impact fees, the suit states, “are more burdensome amendments to the City’s land development regulations in that they prohibit issuance of a building permit for any construction without payment of the substantially increased impact fees.” The HBA is seeking a declaratory judgment that the city violated that section of law. A declaratory judgment is just a court order, not an award of damages or a halt to any activities.
The count is not the strongest in the lawsuit: the city did not change its land use regulations by adopting higher impact fees, and building permits aren’t issued even if builders don’t pay other, much smaller fees, like inspection fees: no builder would argue that those fee schedules change the land development code.
The second, third and fourth counts seek a temporary and permanent injunction against the three impact fees’ new schedule as “impermissible and unlawful.” One count claims William Barrick, the resident who joined the plaintiffs as an individual, “will be forced to forfeit contracts previously entered into, resulting in financial loss, which cannot be recouped.” Another claims the ordinances violate state law and the constitution for lacking proof that the higher fees are necessary: the HBA has consistently questioned the validity of the rationales in the studies justifying the city’s new fees.
The “rational nexus” between the fees and the ned was not shown, the suit charges–a contention the city disputes on its face: if one issue has consistently filled seats and jarred ears at the City Council for the past two years or more, it’s residents’ complaints of excessive growth. The lawsuit charges that the studies omitted from their analyses a series of legal precedents that undermined the city’s rationales.
One such case is the 2021 First District Court of Appeal ruling invalidating the Santa Rosa school district’s new countywide impact fees. The court ruled that “the school district had not geographically identified new growth and generalized the fact that the county was growing. The court also found that they did not analyze the ‘special benefit’ to a fee payor in either section of the county would receive relative to their payment.” The HBA is making a similar argument in Palm Coast, also claiming that localized data was lacking in the city’s studies (a claim the city would also dispute).
In short, the HBA is asking the court to “declare that the Ordinances are invalid, unconstitutional and illegal.”
The organization added a page to its website focused on the lawsuit, where the pleadings and the exhibits are listed and the organization’s arguments outlined in plainer English: “We support growth paying its way— lawfully, transparently, and with up-to-date data.”
Gary Kunnas says
These builders are nothing more than parasites !!!! We the tax payers shouldn’t be paying for their developments !!! What ever it costs them to build they pass along to the home buyers. A good recession would stop them. They want to build go to Texas, Hawaii or California . They need a lot of homes there from fires and storms. Oh wait they would not be able to get away with the things they do here . Like council members in their pockets .
t.o. Doug says
Even with the recently increased impact fees, the bulk of the cost for development has fallen on the existing residents and continues to. The fact that the builders will fight tooth and nail not to have to share that cost in any meaningful way is all you need to know about how much they actually care about this community.
James says
Greedy builders…what else can you say. Talking out of their mouth about the fees one way (we want to pay), but then suing the city for their money back. Isn’t Tony Amaral on the Board of the Home Builders and running for Pontieri’s seat? Wonder what he has to say. I’m sure he’s wanting lower fees…is that what we should expect if he’s elected? Never stops around here with the Greedy Home Builders Association. This group should not be trusted. Speaking of…I went to the website, and it literally says “The Nitty Gritty” at the bottom of the page. Super professional…I’m sure we can trust all the info there.
Mothersworry says
If you want to cut the strain on city service’s or pay for the added cost of those services I’d suggest this. Stop permitting building in wet lands, increase the buffer zone, increase the lot size requirements, increase the side front and rear setbacks, restrict the height of the buildings.
Jay Tomm says
Oh I’m sorry….Did we miss something???? You want to build in Palm Coast you better be paying for the increased costs of everything!
What a bunch of crooks!!!!
Dusty says
Well the city could stop rubber stamping the building projects before evaluating the impacts on local government, the roadways, schools, and recreation. I agree that the builders/developers should pay but the time to look at these things and budgeting for them is before they start ripping out all the surrounding forest and putting the local wildlife on the run.
Land of no turn signals says says
The city should raise impact fee’s as see fit.They had no problem giving themselves big raise’s with little discussion.The builders just pass the increase to the buyers soooo do want cheese with that wine?
Stolen funds says
The homebuilders have been paying impact fees for decades and where is the money when it’s needed for infrastructure?
Stolen by the political machine for pet projects ?
An increase will not help the infrastructure at all it will just be a bigger pot to dip into for political gain
Really annoyed says
These builders are going to pass the buck to the home buyer anyway, so stop your crying and eat it up! If you don’t want to cry go elsewhere and be greedy!
FLF says
I think the horse got out of the the barn many years ago. Development companies and builders bought these properties some 20-30 years ago, 2009 real-estate collapse put anyone in a cash position to scoop up even more properties. It’s real easy to find out who owns what on the property appraisers website. They are the property owners, free to do whatever they want within the confines of the zoning. We can’t discriminate against the builders because we don’t like what they do. They have just as much right to destroy a lot as we all did when we had our own lots bulldozed for our use. 25 years ago, when I built my home here, I thought I died and went to heaven. No neighbors, no traffic, wildlife everywhere. Very desirable place to live, Flagler Beach was quiet, easily accessed and very lay back. Fond memories. I don’t like what is happening here either. The ITT plan was something like 220,000 people living here. The chickens have come to roost. Now Bunnell has caught the development blight, the whole state has, I’ve been lucky and lived here almost 60 years, experienced the way Florida was and lived it. I’m retired now, we go out on the roads tactically for shopping and chores, choosing the right time of day, which is easy to navigate at the right time. This is enviable, adapt or hit the road, as my dad used to say. “what’s second choice?”
Dennis C Rathsam says
Get it through your heads folks! The city is not our friend! They dont give a ratts ass about us They all caught STUFFEM IN ALVIN syndrome…
Greed rules says
$5 says no one from the HBA actually lives in palm coast.
Greg says
Laugh my ass off. You kiss the asses of this group by letting them build everywhere, then the stuff you. Still laughing.
David M says
I blame the City first for letting it get out of control so far that this degree of adjustment needed to be made. City Hall quit being bought off! Builders you are greedy bottom feeding leeches that do not want to pay your fair share, and let’s face it you are just going to put these costs in the house price. Such greed knows no bounds you greedy parasites!
Paul says
That’s interesting for years they had a free-for-all down here the politicians didn’t even leave a tree yeah it’s an incredible fallacy psychopath and narcissist once again
Judith Redican says
We do not have enough water or sewage processing for new homes. Yet we issue building permits for new homes. I have trickle water in my home. We have another 230 million that is needed to cover these problems. House member Fine got us a whopping 10 million from the federal government, so all the town tax payers will be paying for their utilities for new homes. We should be charging even more.
Paul says
It’s all about generating a kickback I’m not sure how Mr Andy dance will get a kick back out of this mess but tomorrow Family 2 million for a few Acres when it was appraised at 900,000 why would you do that Andy if it was nothing in it for you you sure didn’t do it for the people it’s all about creating situations where you get a kick back like turning down the 6000 homes you turn them down and you wait for the envelope you get the envelope you approving this is basic narcissism look up narcissism and psychopathy you’ll see where the roads are destroyed no money to help the people and the nurses corrupt mine only thinks of scams to kick back for himself narcissist always run for these offices so they can Rob and get power normal people don’t do that we have a major mental illness problem in this country quite obviously the politicians are psychopaths and nurses and they’re driving people nuts with all these mass shootings people are snapping you took away the pensions and the TV is disrespectful for 20 years the kids have had 30 years of videos and you wonder what the f*** is wrong
WhereisDesantis says
Let’s think this through….
Builders are complaining about the increase…. Is it because they are trying to pocket as much as they can on a sale? Shoot they already made PC residents selling their home nearly impossible just so new buyers can pick up on their new construction selling pitch- zero to very low interest rates, incentives at closing costs. They already provide shitty materials. Soil levels above other lots leading neighbors property or lot to flood. I am sure they will put those fees on top of the buyer… the problem is empty houses are sitting around because there is just too much! Now what is PC doing with its money? Because all I see as a resident is increase on my end left and right. Infrastructure is begging for help, water backups in homes, our water quality is not its finest, and for folks who live near I95 there is no buffer , it’s getting loud all the trees gone it’s cruel. So yes charge but damn Palm coast how about using those funds towards the actual quality of life and do something about it that does not impact every single resident.