By Kate Kimmel
Nassau County commissioners on Monday signaled support for raising impact fees by more than 50% over the next two years, a move officials say is needed to keep pace with rapid growth—and one that could increase housing costs for future residents and renters.
The board held its third and final “extraordinary circumstances” workshop, a process required under Florida law when counties seek impact-fee increases above 50%. State statute allows local governments to adjust fees every four years, but larger increases must be justified by significant population growth, rising service demands or higher construction costs.
Assistant County Manager Marshall Eyerman said Nassau County meets those standards. Since 2020, home prices have risen 60% and the county’s population has grown by 15%—surpassing state growth projections. “Recent studies show we will need to expand services to keep pace,” Eyerman said.
Impact fees are one-time charges on new residential and commercial development intended to fund the added demand on roads, public safety, parks and other infrastructure. Officials describe them as a way to cover growth-related costs without raising tax rates on existing residents. But impact fees are commonly added to the price of new homes, apartments and commercial leases—costs that ultimately fall on buyers, renters and consumers.
“When you have population growth and need to expand services like fire stations, the choice is to either raise ad valorem taxes or use impact fees, and using those fees is a way for new development to pay for itself,” Commissioner Alyson McCullough said.
Deputy County Manager Robert Companion said the county’s current fee schedule will not support the transportation improvements needed to maintain acceptable road conditions.
Companion presented updated projections showing 46 mobility projects with a combined price tag of roughly $500 million. “Many roadway segments in the east are projected to fall below adopted levels of service,” he said. “Growth impacts will be seen across the entire network.”
After accounting for grants, completed segments and the county’s typical transportation spending levels, staff estimate Nassau would face a funding gap of between $9 million and $10 million without a 50% or greater fee increase. Companion said his team applied “every discount that is reasonably able to be applied” before recommending the new rate structure.
The mobility analysis divides the county into east and west zones based on projected vehicle miles traveled (VMT). In the east, the cost per VMT comes to $108.67; staff recommend setting the fee at $106.64. In the west, where infrastructure needs are lower, the cost calculates to $124.54 per VMT, but staff recommend $79.55.
Julie Herlands, vice president of the national consulting firm TischlerBise, told commissioners that the county’s approach aligns with industry standards. “Impact fees ensure that new development pays for its fair share of the costs associated with growth without putting the full burden on existing residents,” she said.
Still, officials acknowledged the county’s plan will make development more expensive. The phase-in approach under consideration would implement gradually increasing fees in 2026 and 2027, with the largest jump occurring in the second year. Higher development costs are typically passed through to homebuyers and renters, a dynamic that can compound existing affordability pressures as property values rise across the county.
Commissioners stopped short of endorsing a final proposal but indicated they expect to move forward after hearing public testimony. County Manager Taco Pope encouraged residents to weigh in. “Citizens have between now and the public hearing to address any concerns they may have,” he said.
A public hearing on the proposed impact-fee increases is scheduled for Dec. 17 at 9 a.m., when commissioners are expected to take formal action.
kkimmel@nassaunewsline.net
