As Lee County grows, questions rise as impact fee collections fall short of full cost

ALVA, Fla. (WINK) — As new homes continue to rise across Lee County, so do questions about how the roads to support that growth are being paid for.

After reviewing county documents and ordinances spanning nearly two decades, WINK News found Lee County is collecting just over half of what its own data says new development should contribute to road infrastructure.

Under Florida law, impact fees are designed to help cover the cost of growth, including roads, public safety and other infrastructure needed as communities expand.

In Lee County, a single-family home is estimated to create about $9,996 in road impact. But the county currently collects about $5,248 per home, roughly 52.5% of that cost. That adds up.

According to county data, road impact fees generated $42,090,812 in the most recent fiscal year, but that total reflects collection at just over half the full rate. Records show impact fees were significantly reduced during the last housing downturn.

In 2013, Lee County lowered its collection rate to as little as 20% for a two-year period, citing economic conditions and a need to support development and housing affordability. The county later approved increases,  raising the rate to 45% in 2015 and gradually phasing it up to about 52.5% by 2022.

Still, fees have not returned to 100%.

Lee County’s Attorney’s Office told WINK News the reductions were intentional and part of a broader effort to respond to the economic climate at the time.

The attorney’s office says its ability to raise those fees now is restricted. State law passed in 2021 limits how much and how often local governments can increase impact fees. In most cases, increases cannot exceed 50% at a time and must follow a phased schedule. Additional restrictions were put in place after Hurricane Ian.

According to the county, state legislation passed in 2023 prohibits local governments within 100 miles of Ian’s landfall from adopting more restrictive or burdensome regulations,  including increasing impact fees, through at least October 2026. That date could be extended.

At the same time, county commissioners are stepping back from another potential funding source. During an April 21 meeting, commissioners canceled a planned workshop to discuss a possible 1% sales tax for roads. Some commissioners criticized media coverage and public reaction as a factor in the decision.

Instead, the board is looking at other options. During that same meeting, commissioners moved forward with interviewing firms as part of the process to hire a federal lobbying group to help secure funding for large-scale infrastructure projects, including the Cape Coral Bridge.

The county also emphasized that while impact fees are assessed at the time of building permits, the cost is typically passed along.

“Impact fees and building permit fees are added to the cost of construction of a home or commercial building,” the Lee County Attorney’s Office said in a statement. “That cost is passed along to residents and business owners in the cost of purchasing the home or building.”

For longtime residents, the impact of growth is already visible on the roads. John Hodgin, who has lived in Lee County for 13 years, says traffic has noticeably increased, especially along key east-west corridors.

“I do think they should,” Hodgin said when asked whether new development should help pay for road improvements. “The people who’ve been here have paid their fair share… and the new people coming in should pay their fair share.”

He says if roads don’t keep up, it could affect more than just commute times.

“Eventually, people will stop seeing this as a desirable place to live,” Hodgin said.

With growth continuing and key funding tools either limited or off the table for now, the question of how to pay for roads remains a question for neighbors.