Impact fees on new construction will increase by 50% over the next four years as the city looks to fund infrastructure needs for parks and public safety.
Cape Coral City Council approved the increase to be phased in with a 12.5% increase in each of the next four years with the money earmarked for police, fire, advanced life support, and recreational facilities.
Councilmember Keith Long was the lone vote against the enacting ordinances.
Assistant City Manager Mark Mason said development impact fees are a one-time fee that is assessed at the issuance of a building permit.
The recreational facilities impact fee was first implemented in 1987 and was last updated in 2002, while the fire rescue, police and advanced life support fees were first implemented in 2006 and never adjusted, he said.
The impact fee increases were first presented during the council’s winter budget workshop in January following an impact fee study was completed in April 2025.
The city retained a professional consulting firm, DTA Public Finance, Inc. to prepare a Development Impact Fee Justification Study.
Mason said with the approval the implementation date would be July 1, 2026, and then subsequent years on the same date. He said the city is allowed to increase the impact fee by a maximum of 50% over a four-year period, or 12.5% each year.
He said the overall adjustment change for a new single-family residence of less than 30,000 square feet gross area, including lot, is $290.21 more. Mason said when applying that on a thousand properties that would change the impact fee at $290,000 from one year to the next.
For commercial construction greater than 30,000 square feet gross area the difference is $2,567.50.
Impact fees are fees levied only on new construction. The money raised can only be used for new infrastructure that directly benefits those who pay the fees. The money cannot be used for operations.
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