Here's a Way To Stimulate Economic Growth in Naples Florida
We have been evaluating new home building opportunities over the past few months. A realtor we have known for many years suggested we look at waterfront property in Marco Island, Florida. Marco Island is a residential resort and retirement community that began development in the 1960s. The developers concept was to create affordable waterfront living. A highly successful marketing campaign enabled the developer, Deltona Corporation to sell thousands of lots. Half a century later, over l5% of the lots still remain vacant.
In order to build a new home one has the cost of acquiring the land along with the construction costs of the new home, pool and other special items such as a boat dock. It probably comes as no surprise that the building permit too requires a fee. However, most people are surprised to learn that in addition to the permit fees the city and county tack on “impact fees” to the building permit. The fees to build a new home of approximately 2500 square feet run a little more than $53,000. The median price for a 2500 s.f. home in Marco Island is $358,000. Therefore the fees paid to local government to build a new home represent l5% of the median home price. The impact fee costs exceed the cost of
the structural shell of the building.
In my opinion in addition to putting the stop to our potential venture, the impact fee is a significant impediment to future economic growth for the entire region. Lots of jobs are created when building a new home. The current governmental fee structure discourages building. Here’s a suggestion; cut impact fees, create jobs and stimulate economic growth.
In President Obama's January 27, 2010 State of The Union address he stated that job growth is the highest priority for our country. Do you agree?
Michael Stein, The Gentleman Builder, is a 28-year veteran of the residential construction industry.
His Certified to Sell Home Analysis is used by Collierand Lee County's top producing agents to realize the highest possible sales price for their buyers. Learn More »