City Council sunsets one permit fee discount; will take another look at discount for inspections
Builders will lose one type of fee discount while another is pending more discussion by Cape Coral City Council.
The elected board approved the sunset of a 25% permit fee discount for new construction Wednesday while holding a decision on a separate and new 15% discount for projects that employ private inspectors.
The 25% discount applies to the Miscellaneous and New Construction building permit fee schedules, approved in 2009. Also establishes a flood plan fee of $55 and the 15% private provider discount.
Action on a second fee discount is pending.
City Manager Michael Ilczyszyn said about 30 to 45 minutes before the 4 p.m. meeting began he had discussions with the Cape Coral Construction Industry Association executive director and board, who shared some concerns about the proposed 15% private provider discount. The current discount is 33%.
According to the resolution, the discount is offered to property owners and builders who use a “private provider for inspection and/or plan review services for building permit fees.”
He recommended that the council approve the resolution without the changed private provider discount, which will come back for consideration.
Mayor John Gunter said the now sun-setted 25% discount was implemented in 2020 because a state statute states that government entities were not allowed to have in reserves and building funds an excess of one-year’s budget averaged out over a four-year period. He said they city was not in compliance for a few years.
Gunter said the previous city manager did two things — recommended a reduction and set aside $10 million outside of the building fund for a future capital improvement project to relocate the city’s building department.
“Looking back, statutorily we had to invest that $10 million within a four-year period of time. This past September, staff added $8.2 million of that $10 million because some was expended back into the building fund,” he said.
Gunter said documentation showed that presently the building fund expense average out over the last four years at $15,284,207 and a balance of $11,252,500.
“We are at this time in compliance with the statutory requirements that we have less-than-average operating expenses over the last four years,” he said. “It is important for me to be able to support the repeal of the 25% discount knowing that is why we put it into place.”
Gunter said they are no longer building a new facility, as the city purchased a building on Santa Barbara Boulevard and in the near future the building department will move to the new facility.
“We know we are going to bear some expenses there in remodeling that building. It could be a $2-3 million dollar endeavor,” he said. “It is far less than building a new structure.”
Gunter said he is also glad to see further discussion is being held for the discount for private providers.
With the approval, the rates will go back to the 2009 building permit rates.
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