Builders will lose one type of fee discount while another is pending more discussion by Cape Coral City Council.<\/p>\n
The elected board approved the sunset of a\u00a025% permit fee discount for new construction Wednesday while holding a decision on a separate and new 15% discount for projects that employ private inspectors.<\/p>\n
The 25% discount applies to the Miscellaneous and New Construction building permit fee schedules, approved in 2009. Also establishes a flood plan fee of $55 and the 15% private provider discount.<\/p>\n
Action on a second fee discount is pending.<\/p>\n
City Manager Michael Ilczyszyn said about 30 to 45 minutes before the 4 p.m. meeting began he had discussions with the Cape Coral Construction Industry Association executive director and board, who shared some concerns about the proposed 15% private provider discount. The current discount is 33%.<\/p>\n
According to the resolution, the discount is offered to property owners and builders who use a \u201cprivate provider for inspection and\/or plan review services for building permit fees.\u201d<\/p>\n
He recommended that the council approve the resolution without the changed private provider discount, which will come back for consideration.<\/p>\n
Mayor John Gunter said the now sun-setted 25% discount was implemented in 2020 because a state statute states that government entities were not allowed to have in reserves and building funds an excess of one-year\u2019s budget averaged out over a four-year period. He said they city was not in compliance for a few years.<\/p>\n
Gunter said the previous city manager did two things \u2014 recommended a reduction and set aside $10 million outside of the building fund for a future capital improvement project to relocate the city\u2019s building department.<\/p>\n
\u201cLooking back, statutorily we had to invest that $10 million within a four-year period of time. This past September, staff added $8.2 million of that $10 million because some was expended back into the building fund,\u201d he said. <\/p>\n
Gunter said documentation showed that presently the building fund expense average out over the last four years at $15,284,207 and a balance of $11,252,500.<\/p>\n
\u201cWe are at this time in compliance with the statutory requirements that we have less-than-average operating expenses over the last four years,\u201d he said. \u201cIt is important for me to be able to support the repeal of the 25% discount knowing that is why we put it into place.\u201d<\/p>\n
Gunter said they are no longer building a new facility, as the city purchased a building on Santa Barbara Boulevard and in the near future the building department will move to the new facility.<\/p>\n
\u201cWe know we are going to bear some expenses there in remodeling that building. It could be a $2-3 million dollar endeavor,\u201d he said. \u201cIt is far less than building a new structure.\u201d<\/p>\n
Gunter said he is also glad to see further discussion is being held for the discount for private providers.<\/p>\n
With the approval, the rates will go back to the 2009 building permit rates.<\/p>\n