A Guide to Impact Fees for Central Florida Developers

Impact fees play a significant role in the commercial development landscape. These fees, typically imposed by local governments, are designed to offset the costs of public infrastructure and services that new developments require, such as roads, schools, and emergency services. By understanding how impact fees are calculated and applied, developers can better navigate the financial aspects of their projects and make informed decisions that balance costs with long-term benefits. 

In Central Florida, particularly in counties like Orange, Lake, and Osceola, impact fees vary depending on several factors including the type of development, location, and size. For example, in Orange County, commercial developments are primarily assessed for transportation, fire, and law enforcement impact fees. These fees are calculated based on the specifics of each project, such as the square footage and anticipated use of the property. As of 2024, transportation impact fees for a hotel in a suburban area are approximately $3,762 per room, while a single-family residential unit larger than 3,500 square feet could be assessed up to $13,986 in urban areas (Orange County FL Impact Fees) (Orange County FL Commercial Impact Fees). 

For developers in Lake County, the impact fees are similarly structured but can differ slightly based on local ordinances. Lake County has a specific schedule for transportation and educational facility impact fees, with rates periodically adjusted to reflect inflation and local infrastructure needs. This ensures that new developments contribute fairly to the public services they will rely on, without placing undue financial burden on existing residents (Lake County FL). 

While impact fees can seem daunting, they are essential for maintaining the quality of life in growing communities. In Florida, the state requires that impact fees be directly connected to the new development’s impact on public services. This ensures that funds are allocated transparently and only used for necessary capital improvements (ImpactFees.org). 

For commercial developers, understanding these fees early in the planning process is crucial to managing costs effectively. At Park Lake Development, we help our clients navigate the intricacies of impact fees as part of our site selection and due diligence services, ensuring that the full financial implications of a project are considered from the outset. By doing so, we empower developers to make informed decisions that align with both their budget and the long-term growth of Central Florida communities. Contact us today to learn how we can help you with your next project and ensure a smooth development process from start to finish.