Note: The Osceola County Commission is scheduled to take up the topic of Mobility Fee increases at its Aug. 19 meeting at 5:30 p.m.
Nurses, teachers, firefighters, and law enforcement are the backbone of our community. However, a proposal by the Osceola County Commission and the St. Cloud City Council to significantly raise mobility fees threatens to price these essential workers out of living in the areas they serve.
The proposed increase, adding over $15,000 to the cost of a new home, exacerbates housing affordability challenges in an already high-cost area. This makes it harder for first-time homebuyers and renters to enter the housing market, leaving essential workers unable to live where they work. This financial strain will reduce disposable incomes, slowing economic growth as workers allocate more income to housing.
This measure would give Osceola County the highest mobility fees in Florida,—seven times the regional average. The county proposes raising the mobility fee for single-family homes from $9,999 to $25,012, a 150% increase, while St. Cloud’s rate would jump from $6,442 to $20,866, a 224% increase. These hikes will translate to higher prices and fewer jobs in construction and real estate.
High mobility fees will also deter commercial development. For instance, a new grocery store in St. Cloud would face fees surging from a couple hundred thousand dollars to over $2.5 million, with similar hikes in the county. Fast-food restaurants would see fees rise from about $15,000 to over $100,000, a 578% increase, dissuading businesses from investing in our area and slowing economic activity.
Small businesses and those operating on thin margins will be hit hardest. Mobility fees for businesses with drive-thru windows, such as restaurants, local banks, and drug stores, would more than double. This creates a massive disincentive for would-be residents who want easy access to essential goods and services in their neighborhoods. Current residents will see their central stores and businesses wither under this government cash grab.
Additionally, the proposed fee increases threaten affordable housing construction. With mobility fees for townhomes and apartments set to rise by an average of $10,000 per unit, many developers may find it financially unviable to pursue new projects. This is particularly concerning given the area’s high population growth and need for diverse housing options.
Beyond the inherent issues with the proposal, there are serious process concerns. Under Florida law, Osceola County and St. Cloud were required to conduct a study before considering raising mobility fees. However, the study contained numerous errors and proposed a vastly higher fee hike than justified. Independent experts found “significant issues with the [study’s] analysis, data, and methodology,” raising the possibility of legal challenges if the commission proceeds with the hike.
While the need for improved infrastructure and growth management is real, the proposed mobility fee hike is not the solution. It threatens Osceola County’s economic vitality, residents’ financial wellbeing, and future development prospects. Officials should reconsider this approach and explore alternative funding mechanisms that do not disproportionately burden businesses, workers, and developers. By doing so, they can foster a thriving community that balances growth with affordability and opportunity for all.
Art Otero is a former Kissimmee City Commissioner who served on community boards like the Kissimmee Housing Advisory and Osceola Housing Authority, and has worked in the real estate and mortgage industry for more than 27 years.
