|Florida Fees Frustration|
|Subject||External Costs and Benefits|
|Topic||Government and the Economy|
|Key Words||Fees, Costs, Jobs, Incentive|
In Florida, in Pinellas County, fees are levied on residential and business construction in order to pay for transportation improvements such as roads and sidewalks, and to cover the costs of congestion. For example, a small convenience store locating near downtown St. Petersburg is charged $21,391 because of the traffic it is expected to generate. Building a new house in the older part of St. Petersburg requires payment of $1,209, regardless of the size of the house.
The effect is that business development is being stifled in an area that is trying to grow and provide more jobs in the wake of race riots. Further, the city is not congested and does not need to repair the roads or sidewalks.
City officials would like to be able to eliminate the fees for businesses, as part of an incentive package for businesses, especially if they are providing quality jobs.
(Updated January 1, 1999)
|Source||David K. Rogers, "Fee stalls business expansion", St. Petersburg Times, November 28, 1998.|
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