By Kate Kimmel
The Nassau County Board of County Commissioners voted to increase impact fees by an average of 70.3% over the next four years, citing rapid growth, looming state tax cuts and the need to ensure that new development pays for the public services it requires.
Under state law, local governments may not raise impact fees by more than 50% unless they demonstrate “extraordinary circumstances” requiring additional capacity for public services. The law also limits changes to impact fees to once every four years.
A study conducted by TischlerBise projected the county’s population will grow by 7,700 residents by 2029, a level of growth county officials said would significantly strain infrastructure, parks, roads and emergency services without additional revenue.
The county initially planned to phase in the increases over two years, but Commissioner Jeff Gray suggested extending the rollout after hearing concerns during public comment. The board ultimately approved a four-year implementation schedule.
Commissioner John Martin attempted to participate remotely but was unable to vote due to technical difficulties and was recorded as abstaining.
The vote followed lengthy public comment, much of it critical of the board’s declaration of extraordinary circumstances. Representatives from the Northeast Florida Builders Association, real estate professionals and independent developers warned that higher impact fees would discourage development and drive up housing costs.
Commissioners countered that impact fees are intended to protect existing taxpayers by requiring growth to fund the infrastructure it demands. Several commissioners also expressed concern that the Florida Legislature may adopt significant tax cuts during its upcoming session, which they said could reduce county revenues and make it difficult to maintain current levels of service as the population grows.
Two primary concerns dominated public comment: that impact fees are ultimately passed on to homebuyers, worsening housing affordability, and that higher fees could deter small businesses from locating to or expanding in Nassau County.
Independent homebuilder Elizabeth Buchanan said the increases could push workers to live outside the county. She pointed to neighboring St. Johns County as an example, describing it as a “bedroom community” where essential workers can no longer afford to live.
Realtor Seth Baldwin cited national data showing first-time homeownership at historic lows and said the average age of a first-time homebuyer has risen to 40. He warned that developers could shift investment to counties with lower fees.
At the board’s request, Assistant County Manager Marshall Eyerman outlined tools the county uses to support affordable housing, including participation in the State Housing Initiatives Partnership program and its accessory dwelling unit program.
Commissioner Alyson McCullough responded that while she understands affordability concerns, she does not believe the government should regulate housing prices, calling them a matter for the free market.
Heather Hagan, a realtor who owns a 41-acre property where she plans to develop a water park, skating rink and indoor mini-golf facility, said the fee increases would harm small businesses. She said Duval County has expressed interest in similar projects but that she wants to build in Nassau County to meet local demand.
Bryan Kinser, representing NEFBA, disputed the county’s findings, noting projections show population growth of less than 2% annually over the next four years. He argued that such growth does not meet the state’s threshold for extraordinary circumstances.
Eyerman said the county is exploring incentives to support small businesses, including ad valorem tax refunds and funding for a business-specific grant program.
Throughout multiple workshops and meetings leading up to the vote, commissioners and staff repeatedly emphasized a central principle: new development should pay for itself. Commissioners said shifting the cost of growth onto existing residents through higher taxes would be unfair.
To illustrate the impact, the current fee to build a single-family home between 2,000 and 2,499 square feet is $3,721. Under the four-year phase-in plan approved by the board, that fee would increase by about $900 per year.
Before being disconnected from the meeting, Martin said decisions made by previous boards contributed to the current situation. He cited the elimination of impact fees in 2013 and their reinstatement four years later, which he said resulted in lost revenue and limited the county’s ability to increase fees incrementally.
McCullough said the increases are a key component of long-term fiscal planning. While acknowledging the challenges facing residents trying to afford housing, she reiterated that she does not believe local government should influence housing prices.
Gray and Commissioner A.M. Huppman said the board chose to act now rather than risk future shortfalls. They said they would rather “aim correctly now” and adjust later than face reduced revenues from state tax cuts without sufficient funding to provide adequate services to county residents.
kkimmel@nassaunewsline.net
