City of Cape Coral and Lee County, Florida Anticipating New Land Use and Development Regulations to be More Developer Friendly

developer hard hat.jpgThe News-Press recently reported that the City of Cape Coral and Lee County are proposing changes to their land use and development regulations in order to be more flexible in how property is developed and redeveloped.

In the City of Cape Coral, new land use and development regulations concerning South Cape Coral were unanimously passed by the City's planning and zoning committee in June. The new regulations are part of the 2030 Vision Plan and will remove obstacles, such as committee hearings and unpredictable requirements, to developers obtaining approval of their projects in hopes of saving months from the development and permitting timeline.

John Jacobsen, Executive Director of the Cape Coral Community Redevelopment Agency, stated there have been times when owners/developers have spent hundreds of thousands to millions of dollars on design and related fees, which could prove worthless if a committee rejects a developer at the last stage in the review process. The new regulations should eliminate unpredictable requirements and therefore, save developers time and money.

The Cape Coral City Council held a public hearing on the new regulations on August 20, 2012. A final public hearing is scheduled for September 10, 2012, when the Council will vote on the new regulations.

In Lee County, the Lee County Department of Community Development has been working on revisions to parking requirements for new developments in order to provide more flexibility to developers. The News-Press reported that Lisa Sands, advisor for Fort Myers-based VIP Realty-Commercial, stated "I'm pleased with the county working with the commercial real estate community and recognizing the need to change with the times." The proposed changes will not only save developers money and provide them with more flexibility, but will also benefit the environment by decreasing the amount of impervious pavement required and therefore allow more water to seep into the ground.

A public hearing to approve the changes will be held on September 11 by the Lee County Board of Commissioners.

In our representation of developers and owners with development applications and due diligence matters, we have encountered situations where parking and development regulations have prevented the developer from pursuing the desired use of the property. I am hopeful the changes will facilitate more development in Cape Coral and Lee County, as development is needed for this area to continue to recover from the real estate downturn.

Our firm is available to assist property owners and developers with development and  due diligence matters, including development applications and permitting approvals.

There's A Rainbow for Permit Holders After Tropical Storm Debby

iStock_000000854455XSmall.jpgTropical Storm Debby may have wreaked havoc for most Floridians, but there may be a rainbow after the storm that some permit holders can appreciate. When Governor Scott declared a state of emergency because of the storm by Executive Order, it triggered the permit extension provisions adopted by the Florida Legislature in its 2011 session, codified in F.S. 252.363.

This statute provides that the declaration of a state of emergency by the Governor tolls the period remaining for a permit or certain other authorizations for the duration of the emergency declaration (here, until August 24, 2012). Further, the emergency declaration extends the period for an additional 6 months on top of tolled period for the following:

  • The expiration of a development order issued by a local government.
  • The expiration of a building permit.
  • The expiration of a permit issued by the Department of Environmental Protection or a water management district pursuant to part IV of chapter 373.
  • The buildout date of a development of regional impact, including any extension of a buildout date that was previously granted pursuant to s. 380.06(19)(c).

The permit holder must provide written notification to the permitting agency within 90 days after the termination of the state of emergency of its intent to exercise the tolling period and identify the specific permit(s) subject to the extension. In this instance, the notification period will expire November 21, 2012.

It is important to note that this extension does not apply to:

  • A permit or other authorization for a building, improvement, or development located outside the geographic area for which the declaration of a state of emergency applies.
  • A permit issued by the Army Corps of Engineers.
  • A permit or other authorization determined by the authorizing agency to be in significant noncompliance with the conditions of the permit through the issuance of a warning letter or notice of violation, the initiation of formal enforcement, or an equivalent action.
  • A permit or other authorization that is subject to a court order specifying an expiration date or buildout date that would be in conflict with the extensions granted in this section.

New Lee County Code Re-Writes Hearing Examiner Rules

In recent years, procedures for hearings before Lee County Hearing Examiners have evolved formally and informally, sometimes resulting in confusion and frustration for the parties, the public, and the hearing examiners themselves. A recent amendment to Lee County Administrative Code Section 2-6, aims to eliminate uncertainty in special exceptions, variances, zoning cases, and other matters like administrative appeals. Some are simple changes (for example, the "24-hour pre-hearing memo" is now the "48-hour pre-hearing memo"), while others are more complex and require a greater understanding of legal procedure than ever before.

The following is an attempt to highlight some of the more significant changes found in Lee County Administrative Code Section 2-6, however it is not intended to provide a comprehensive summary or analysis of all changes. 

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Sweeping Changes to Florida's Growth Management System are Here

As promised, the Florida Legislature recently adopted House Bill 7207 which drastically changes the landscape of Florida's Growth Management procedures. The bill itself comprises 349 pages (the majority of which deals with matters unrelated to growth management) and the drastic changes it proposes are too numerous to cover in a blog entry. A sampling of some of the major provisions include:

  • Eliminates the state concurrency mandate relating to transportation, schools and parks (though local governments may retain their local concurrency requirements);
  • Increases certain development of regional impact ("DRI") thresholds (including office and commercial uses) and eliminates other uses from DRI review (including motel/hotel and industrial uses);
  • Provides a four-year extension to commencement, phase, build-out and expiration dates of DRIs regardless of any prior extensions;
  • Grants a two-year permit extension to any permit that was eligible under Senate Bill 360 but ineligible under Senate Bill 1752;
  • Provides a new two-year extension for certain permits with expiration dates falling between January 1, 2012 and January 1, 2014;
  • Removes the limitation of only twice-per-year comprehensive plan amendment cycles;
  • Allows for expedited review of most comprehensive plan amendments, with some exceptions;
  • Adjusts standards of review for challenged amendments - if the Department of Community Affairs ("DCA") challenges a local government's in-compliance determination, the local government's determination is presumptively correct; the DCA can only overcome this presumption by a preponderance of the evidence standard; and
  • If a third party challenges a local government's in-compliance finding, DCA cannot intervene in the action, and the local government's determination must be upheld if it satisfies the more relaxed fairly debatable standard.
Of course, this bill isn't law just yet - the Governor has 15 days after presentation of the bill to take action (sign or veto). If he signs the bill, it becomes law upon his signature. If he takes no action, the bill would become law on July 5th. As I mentioned, there is a lot more in this bill and its companion legislation of HB 7001- look for much more to come on this important piece of legislation!

 

 

Road Impact Fees May Decrease in Lee County

caterpillar_front_loader_283346_l.jpgIn light of the significant reduction in property values and construction costs across Lee County, a recent study conducted by Duncan Associates (a consulting firm based out of Texas) concluded that the Board of County Commissioners should consider similarly significant reductions in its road impact fees.

Road impact fees are generally assessed on new construction projects to mitigate the growth impacts associated with that development. Most notably, if your project is going to result in an increase in the usage of existing roads, or require that new roads be built, the idea is that the new project should pay for that impact. This "pay as you grow" fee is common across Florida, but the actual amount imposed for the fee varies greatly by jurisdiction. Typically, this impact fee is based upon such things as the construction costs in widening or creating roadways, or the purchase price for acquiring right-of-way if needed to improve the road. Since the costs of both have dropped, it naturally follows that this fee should drop as well.

On average, Duncan Associates is proposing a 27% reduction in the county's road impact fees. In addition to this reduction, the study also proposes to roll medical office into general office use. Traditionally, medical office uses have borne a higher road impact fee, so this would even further reduce development costs for potential medical uses, if adopted.

Specific proposed fee changes include:

  • Single family detached: Drop 25% from $8,976 to $6,701
  • Hotel/Motel: Drop 25% from $5,172 to $3,861
  • Shopping Center/General Retail: Drop 28% from $10,983 to $7,933
  • Banks: Drop 32% from $25,134 to $17,187
  • Office: Drop 27% from $7,305 to $5,355

These proposals will be reviewed by various Advisory Committees before going before the Board of County Commissioners in June. You can obtain a complete copy of the 2011 Road Impact Fee Update here and find a listing of the Advisory Committee meetings here.

 

Top 10 Growth Management, Land Use & Property Bills Proposed for the 2011 Florida State Legislative Session

Spring is in the air, which means our elected state officials are in Tallahassee diligently considering, debating, and hopefully, actually reading thousands of proposed bills. The 60-day regular session began on Tuesday, March 8, and there are several draft bills that may have an effect on developers, property owners, and professionals involved in real estate and land development. Jay Brady, who covers state and local government issues for Gulf Coast Business Review, recently wrote an informative article regarding some of these bills, entitled "Business Bills to Watch." It's an excellent collection of proposed bills that deserve attention from the business community.

 

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