Understanding Impact Fees in Our Coastal Communities
As our coastal cities—Madeira Beach, Treasure Island, St. Pete Beach, and Gulfport—continue to grow, the arrival of new homes, condominiums, and businesses brings fresh energy and economic opportunity. However, this very growth places added demands on roads, parks, utilities, and other essential services. To help communities keep pace, local governments rely on impact fees: one-time charges levied on new development projects that fund infrastructure such as roads, sidewalks, bike lanes, and parks.
At Citizen Beach, we advocate for commercial impact fees so that businesses share responsibility for the public services they depend on. However, we have concerns that applying these fees to residential projects could unintentionally increase housing costs and reduce year-round affordability for local residents. Here’s what you need to know about how impact fees work and where they currently stand in our coastal communities.
What Are Impact Fees?
Impact fees are charges imposed on developers when they construct or substantially redevelop a property. The intent is to ensure that new development covers its fair share of infrastructure costs, whether for transportation, recreation, or utilities.
Under Florida’s Impact Fee Act (Chapter 163.31801, Florida Statutes), local governments are required to calculate fees based on the proportional impact of each development. This approach is designed to prevent existing residents from subsidizing infrastructure demanded by growth.
In our unique coastal settings—where both tourism and rapid development intensify pressures on roads, public spaces, and public services—impact fees are a vital financial tool for supporting sustainable progress.
Why Are Impact Fees Helpful?
When applied thoughtfully—especially to commercial development—impact fees offer important benefits:
Protecting Taxpayers: Commercial impact fees ensure that businesses that draw visitors and increase demand on services also help cover infrastructure costs, lessening the burden on local taxpayers.
Enhancing Walkability: Some cities are considering multimodal fees, which support improvements in sidewalks, bike lanes, and transit systems. These projects reduce car dependence, boost safety, and create more accessible communities.
Preserving Quality of Life: Impact fees help fund parks, beaches, and other public spaces that define the character of our neighborhoods.
However, expanding impact fees to residential development can make housing less affordable for families and long-term residents. Citizen Beach believes the key is balance: focus on commercial fees to encourage both economic vibrancy and residential affordability.
Impact Fees and Local Businesses
For commercial property owners—such as hotels, shops, and restaurants—impact fees become a significant item when planning expansions or redevelopments. These costs help ensure the necessary infrastructure, but may also impact future investment or property values.
For instance, buyers aiming to modernize or redevelop a beachfront property could face unexpected expenses. Sometimes, this may affect the property’s market appeal or pricing.
Transparency is essential: under Florida law (Chapter 112, Florida Statutes), any elected official with a financial interest in a property affected by fee decisions must disclose it and abstain from voting on relevant matters. These transparency rules strengthen public trust in local policy-making.
Where Do Our Cities Stand?
Here’s a look at current impact fee policies in our coastal communities:
Links from the July 1, 2025 Treasure Island City Commission meeting on Impact Fees:
What’s Next for Our Communities?
Impact fees are among the most effective tools cities have for managing growth and maintaining public assets. Their success depends on wise implementation. At Citizen Beach, we believe that commercial impact fees are a necessary and equitable way to support infrastructure for tourism and economic growth, without unduly burdening residents.
The upcoming August 2025 decision in Treasure Island represents a significant opportunity for our region. A well-designed multimodal fee could make the city safer, more walkable, and better equipped for both residents and visitors.
We encourage everyone to stay vigilant and engaged. Visit your city’s official website (for Treasure Island, see the city’s homepage) or participate in commission meetings to remain informed and make your voice heard.
Let’s shape a future where growth lifts everyone—residents, businesses, and visitors alike. Please share your perspective with Citizen Beach and help keep our coastal communities thriving and resilient.
Keeping Our Small Town Environment
Share this newsletter with your friends and neighbors. Sign up for the Citizen Beach group on Facebook, where we’ll be holding Facebook Live events, and email me (Carlos Miro at [email protected]) with your thoughts.
At Treasure Island, we established an initial group to initiate the process of preserving our small-town environment. This week, 10 of us met at the TI City Hall to begin laying the groundwork for a citizen-led effort to encourage appropriately scaled development in our communities. More to come soon!
Please share your thoughts or consider volunteering for local efforts to maintain our height limit. Together, we can protect the small-town soul of Treasure Island, ensuring it remains a beacon of togetherness for generations to come.
