TO: Honorable Mayor & Members of the North Port Commission
FROM: A. Jerome Fletcher II, ICMA-CM, MPA, City Manager
TITLE: An Ordinance of the City of North Port, Florida, Amending Chapter 58, of City Code, Creating the Targeted Industry Incentive Program and Amending the Impact Fee Deferral Program; Providing for Findings; Providing for Posting; Providing for Conflicts; Providing for Severability; and Providing an Effective Date.
Recommended Action
Continue Ordinance No. 2025-11 to second reading on May 27, 2025.
Recommended Action on Second Reading
Adopt Ordinance No. 2025-11.
Background Information
The Impact Fee Deferral Program allows for applicants to defer the payment of impact fees based on site characteristics and the Targeted Industry Incentive Program allows for applicants to receive grants to lower the total cost of Impact Fees paid to the City. This ordinance only provides the legislative framework for the program and does not authorize the spending of City funds.
Ø April 28, 2020: The Commission provided feedback at its Regular Meeting regarding Impact Fee deferrals.
Ø March 7, 2022: The Commission held a Workshop to discuss an Impact Fee Incentive Program.
Ø September 5, 2023: At a Commission Workshop, staff presented the current Impact Fee strategy and received direction, including combining the deferral and incentive programs into one ordinance and determining exemption levels for affordable housing developments. All other Commission directions are incorporated into this draft Ordinance.
Ø April 15, 2025: The Community Economic Development Advisory Board reviewed the proposed ordinance and voted to recommend its adoption by the City Commission.
Ordinance No. 2025-11 has been reviewed by the Interim City Attorney and is legally correct as to form.
Information for Second Reading
Ordinance No. 2025-11 was brought before Commission for first reading on May 13, 2025. During this meeting, a motion was made to continue Ordinance No. 2024-12 to second reading on May 27, 2025, and develop a plan for adding Activity Centers six and ten to the incentive program that passed 4-1.
The following provides responses to questions posed by the Commission during the first reading of Ordinance No. 2025-11 on May 13, 2025:
Ø Question 1: Can Commission add Activity Centers six and ten to the Targeted Industry Incentive Program, Sec.58.18(b)?
Response: The study was intended to inform the policy decisions of the Commission, not to dictate or mandate specific policy. It is recommended that a deviation be backed by a finding in the ordinance explaining the policy decision. Based on feedback from outside counsel, Activity Centers 6 and 10 can be included in the incentive program without an additional market feasibility study.
Ø Question 2: Can Commission adjust the Impact Fee Study time frame as outlined in Sec.58-9(a)?
Response: The time requirement for the rate study can be adjusted to five years.
Ø Question 3: Can Commission adjust the affordable housing Impact Fee reductions as outlined in Sec.58.7(f)?
Response: The percentages relating to impact fee reductions for affordable housing can be adjusted as a policy matter by Commission. It is recommended that the record reflect the discussion behind the policy that is to be set by Commission.
Ø Question 4: Must the City offset the reductions relating to affordable housing projects as outlined in Sec.58.7(f)?
Response: Per FS 163.31801(11) “If a county, municipality, or special district provides such an exception or waiver [for affordable housing], it is not required to use any revenues to offset the impact.”
Strategic Plan
Economic Development and Growth Management
Financial Impact
Ordinance No. 2025-11 does not create a financial commitment or fiscal impact. It only provides the legislative framework for the program.
Each incentive or deferral request would be considered on an individual basis, and any financial impact and necessary funding would be known and considered by the Commission at that time.
Procurement
Not applicable.
Attachments:
1. Ordinance 2025-11
2. Business Impact Statement
3. CEDAB April 15 Meeting Minutes
Prepared by: Randy Bowling, Planner II
Department Director: Alaina Ray, AICP, Development Services Director