By Brian McBride
Associate Editor

In a move designed to lure new business and development to Kissimmee, the City Commission Tuesday passed the first reading of an amendment that would lower transportation impact fees by almost 30 percent.

City staff presented a Florida Department of Transportation study to the commission showing that between 2007 and 2010 road construction costs had decreased 27 percent. So the city decided to use that to its advantage. It could market the decrease to new business without negatively affecting the city’s public works and engineering department to enhance the city’s road system because of the lower construction costs, City Principal Planner Amy Carbajal said.

“That’s the beauty of the plan,” she added.

The commission unanimously passed the first reading without discussion.

Transportation impact fees, which must be paid before a building permit is even pulled, are based on how that housing development or retail business would affect local roads factoring in deterioration and traffic flow. The fees also are determined by a Transportation Department guide on how many vehicle trips it would cause. For example, one single-family home in a subdivision would bring 10 trips per day, according to the guide.

Currently, a 10,000-square-foot building,  standard for an average drug or dollar store, Carbajal said, would have to pay $192,130 in transportation impact fees. With the 27 percent reduction, that would be cut to $140,000.

“Perhaps a reduction will encourage somebody to move forward,” Carbajal said.

The city is currently trying to revitalize Vine Street. A key component to that plan is luring new business. The fee decrease could spur commerce traffic that’s been lacking, city officials said.

“There is just nothing going on,” Carbajal said.

The city has had some business bites, but a fee decrease could help seal deals, Carbajal said.

“We’ve talked to a lot of people who have a plan financially, but just can’t make it happen right now,” she said.

If the amendment were approved by the commission, the city would advertise the fee decrease through its economic development department. Department Director Belinda Ortiz said the city could spread the word through its website, the media and conferences. It’s about educating the local business community and then spreading the news outward, Ortiz said.

Would lowering fees be a selling point to potential business?

“It is for individuals interested in doing business in one particular area,” Ortiz said. “It makes us more competitive.”

The commission will vote on the second and final reading Nov. 16.