By Fallan Patterson
Staff Writer

As a way to attract new businesses to the city, the St. Cloud City Council unanimously approved a resolution Thursday night to implement a payment plan for transportation impact fees.

The installment plan would allow new businesses to pay their transportation impact fees, which can rise as high as $25,558 per square foot depending on the type of business, over five years. The resolution will take effect Wednesday.

“It’s another effort for us as a city to work with new businesses to offer the opportunity for them to open in our city,” Mayor Rebecca Borders said. “It breaks it down; they can open faster.”

The city uses transportation impact fees to construct exits and entrances to plazas or new businesses, and to build roads and other transportation infrastructure.

For example, if a 24,000-square-foot bowling alley were to be built in St. Cloud, for every 1,000 square feet of building, the transportation impact fee would be $10,178, according to examples the city provided. The total transportation impact fees for the bowling alley would be $249,000.

The City Council will approve each payment plans. The resolution also establishes other related fees, including a $50 processing fee as well as charges and conditions for repayment of the debt. Businesses under this plan must make a minimum payment of $150 per month, which would be added to their utility bills and due at the same time.

If payment is not made within 10 days of the due date, all utility services for the property may be disconnected and the payment plan would be voided, thus forcing all balances to become due.

The businesses do have to meet some requirements, including setting up an account for the property with the Orlando Utility Commission and full payment of the debt before any transfer of ownership or a change in the property could occur that would increase the transportation impact fee.

Any fees owed over the duration of the payment plant would be subject to a 7 percent interest charge.

Business owners also would have to complete a promissory note and lien agreement with the city, stipulating the terms of the payment plan.

However, City Manager Tom Hurt could, on a case-by-case basis, review a business for “hardship” and waive or reduce the interest rate.

Previously, impact fees were lowered in the city to entice businesses to open there. Businesses are currently offered a reduced rate of 25 percent off the impact fees until Dec. 31. In 2012, the discount will be dropped to 15 percent off the full price and in 2013, the city will offer a 5 percent discount. Impact fees will return to full price in 2014.

Despite these measures, some business owners are opposed to impact fees altogether, seeing them as extra taxes municipalities impose on a select group of people who bring money to the city.

“They need to look at different ways at taxation,” Jeff Rinehart, who owns Soldier City Saloon in downtown St. Cloud, said, adding he wants the city to remove all impact fees and raise taxes “but nobody wants it.”

Rinehart challenged the city last year when he was slammed with what he called “unfair” impact fees on an outdoor bar he built behind his saloon.

“They’re going to have to find another way to make their money or cut services,” he said.

Rinehart said he would “definitely” run for City Council but he currently lives on 20 acres in unincorporated Osceola County. He said he hopes to move into the city limits before the cutoff for candidate qualifying for the 2012 election.

Mickey Hopper and Jarom Fertic are the two council members up for re-election next year.