Haines City Commissioners voted unanimously to hike their transportation impact fees last week for the first time since 2004.
The new fees, which go into effect on Aug. 1, will add thousands to the cost of new homes. For single-family homes, the rates will increase based on their square footage. For homes less than 1,200 square feet, the fee rose from $1,625.95 to $3,182. For homes between 1,200 and 2,500 square feet, the fee increased from $1,625 to $5,856. Lastly, for homes larger than 2,500 square feet, the fee went up from $1,625 to $7,933.
“These fees were out of date and what we were collecting was only a percentage of that fee,” said Ted Adkins, Deputy Development Services Director. “The new fees are based on current data and will be 100% of the fee, not a percentage.”
Because the fees are jumping by more than 50%, the city is required by state law to declare “extraordinary circumstances” and approve the measure by a two-thirds super-majority. The vote wasn’t met with any pushback or comments from the public.
Haines City’s multi-modal transportation impact fees are one-time charges for new development to help pay for road improvements, public transit, sidewalks and trails. Those costs will be added to the impact fee the city collects on behalf of Polk County, which adopted an updated ordinance in 2023 that phased the increases over four years. The county’s impact fee for new homes is going up $270 each year until June 30, 2026, when it will reach $3,460.
On the commercial side, some fees saw increases of over 100%, while others experienced minimal changes. For instance, the cost of establishing a new convenience store rose dramatically by 286%, going from the current rate of $35,108.02 to $135,754. In contrast, the fee for setting up a new school decreased from $2,190.04 to $1,437.
The city of Dundee has recently raised its fees as well, and Adkins expects others will follow.
“It is just the growth in this area. This is direct result of the growth we have been seeing,” Adkins added. “I don’t think these increases will affect development going forward, developers will pass this on to the consumers like they have been.”
Haines City is trying to keep up with the demand and the need for improved transportation.
“Mobility strategies in Haines City are shifting from those of a small town to a busier, suburban and even urban environment. The transportation system needed to serve an urban/suburban environment includes the need to develop a network of facilities for vehicular circulation, sidewalks, bicycle facilities, parking, and features to support public transportation. While transit and rail are not part of the current adopted transportation plan, the community is also anticipating the possible future extension of SunRail from Poinciana,” according to the 2024 impact fee study by consultant W.E. Oliver.
Adkins added, “The city is excited for SunRail to come this direction. We believe it will take some pressure off the road system. We are encouraging other forms of travel.”
The city plans to add 198.1 lane-miles of new County and City roadways with walking and biking facilities over 21 years, averaging 9.4 lane-miles per year. It also aims to reconstruct 34.6 lane-miles of existing roads to enhance walking and biking options for suburban travel.
“Our main arteries(roadways) are really busy,” Adkins said. “The city is happy to be growing. With growth, there are growing pains. Transportation is one of them. We want more cross-connectivity to alleviate traffic from the major roads.”
An increase in commercial interest in Haines City will also help reduce travel distances and alleviate traffic. A Supertarget was recently announced to be anchoring a $180 million Crossroads Village Center on the corner of U.S. 27 and U.S. 17-92.
“More shopping within the city and county helps and more jobs as well,” Adkins said. “The city and county are working on both of those.”
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