Impact Fees and Development Costs

Summary

Tampa’s impact fees for new development haven’t been updated since 1989, leading to situations where existing residents subsidize infrastructure costs for new construction. The city approved the first major increase in 36 years, phasing in new rates over 4 years starting June 2026. The fees will fund multimodal transportation improvements including traffic signals, bike lanes, and pedestrian infrastructure. While some residents support making development pay its fair share, the development community has expressed concerns about market impacts.

Timeline

2025-11-20 — [[Tampa/Meetings/2025-11-20-2646.md|Meeting 2646]]

Speakers: Carroll Ann Bennett, Adam Purcell, Kathrin Tellez, Alan Clendenin

Major discussion of first impact fee increase in 36 years, with fees rising dramatically for new development. Public commenters argued that current low fees subsidize developers at taxpayers’ expense. Council approved phased 4-year implementation starting June 2026 to soften economic impact. Development community expressed concerns about market disruption.

“We should not be subsidizing profits. We should not be subsidizing people moving here” “Santa Claus is not going to deliver paving and sidewalks”

Sentiment: mixed - public supportive, development community concerned