IMPACT FEE DEFERRALS

Cape Coral Code of Ordinances ch. 2, art. II, div. 6

in effect

Cape Coral Code of Ordinances § 2-24.33 Purpose and intent.

§ 2-24.33 - Purpose and intent. It is the purpose of this article to encourage and support the development and growth of commercial and industrial enterprises within the city by establishing a means by which impact fees may be deferred for new businesses and expansions of existing businesses within the city.

Cape Coral Code of Ordinances § 2-24.34 Definitions.

§ 2-24.34 - Definitions. The following words, terms and phrases, when used in this division, shall have the meanings set forth herein, except where the context clearly indicates a different meaning. CITY. The City of Cape Coral, Florida. BUSINESS. Any sole proprietorship, corporation, partnership, association, organization, agency or other entity which operates a commercial or industrial enterprise of any kind. EXISTING BUSINESS. A business which is already operating an extant commercial or industrial enterprise within the city. FULL-TIME EMPLOYEE. A person employed by a business for at least 40 hours per week. This term shall not include persons who act as or serve as independent contractors to the business or persons who have an ownership interest in the business unless they are also employed by the business. FULL-TIME EQUIVALENT EMPLOYEES. Two or more employees of a business, neither of whom is employed by the business for at least 40 hours per week, but whose combined weekly work hours for the business total at least 40 hours per week. For example, for purposes of this article, two part-time employees of a business, each of whom work 20 hours per week for the business, would constitute one FULL-TIME EQUIVALENT EMPLOYEE for the business. This term shall not include persons who act as or serve as independent contractors to the business or persons who have an ownership interest in the business unless they are also employed by the business. NEW BUSINESS. A business which has newly located or is newly locating its commercial or industrial enterprise within the city. For purposes of this article, a business shall be considered a NEW BUSINESS for a period of not more than 12 months from the date of its location in the city or not more than 12 months from the date of imposition of the impact fee for which deferral is sought, whichever is less. Once the lesser of the aforesaid time periods has expired, the business shall hereafter be considered an "existing business" for purposes of this article. PERMANENT RESIDENCE. That place where a person has his or her true, fixed and permanent home and principal establishment to which, whenever absent, he or she has the intention of returning. A person may have only one PERMANENT RESIDENCE at a time; and, once a permanent residence is established outside the corporate limits of the city, it is presumed to continue until the person shows that a change has occurred. RETAIL SALES. The sale of commodities or goods in small quantities to the ultimate consumers or to the general public.

Cape Coral Code of Ordinances § 2-24.35 Eligibility criteria.

§ 2-24.35 - Eligibility criteria. (a) New businesses. In order to be eligible to apply for deferral of its impact fee obligation(s), a new business must fall within one of the following categories: (1) Category I. A business establishing ten or more new jobs to employ ten or more full-time employees (or a sufficient number of full-time equivalent employees so as to constitute ten or more full-time employees) in the city, which manufactures, processes, compounds, fabricates or produces for sale items of tangible personal property at a single fixed location within the city, and which comprises an industrial or manufacturing plant or facility. No business engaged in retail sales shall be considered to be included in this category; (2) Category II. A business establishing 25 or more new jobs to employ 25 or more full-time employees (or a sufficient number of full-time equivalent employees so as to constitute 25 or more full-time employees) in the city, which delivers, performs, offers or engages in mechanical, personal, professional or trade services at a single fixed location within the city, and which comprises an industrial, commercial, or professional facility. No business engaged in retail sales shall be considered to be included in this category; or (3) Category III. Any other business establishing 50 or more new jobs to employ 50 or more full-time employees (or a sufficient number of full-time equivalent employees so as to constitute 50 or more full-time employees) at a single fixed location in the city, and which comprises a commercial facility. Businesses engaged in retail sales shall be included within this category. (b) Existing businesses. In order to be eligible to apply for deferral of its impact fee obligation(s), an existing business must expand its business so as to fall within one of the following categories: (1) Category I. A business establishing ten or more additional new jobs to employ ten or more full-time employees (or a sufficient number of full-time equivalent employees so as to constitute ten or more full-time employees) in the city, which manufactures, processes, compounds, fabricates or produces for sale items of tangible personal property at a single fixed location within the city, and which comprises an industrial or manufacturing plant or facility. The increase in the operation of the business must be at a site co-located with an industrial, a commercial or a professional operation owned by the same business. No business engaged in retail sales shall be considered to be included in this category; (2) Category II. A business establishing 25 or more new jobs to employ 25 or more full-time employees (or a sufficient number of full-time equivalent employees so as to constitute 25 or more full-time employees) in the city, which delivers, performs, offers or engages in mechanical, personal, professional or trade services at a single fixed location within the city, and which comprises an industrial, commercial or professional facility. The increase in the operation of the business must be at a site co-located with an industrial, a commercial or a professional operation owned by the same business. No business engaged in retail sales shall be considered to be included in this category; or (3) Category III. Any other business establishing 50 or more new jobs to employ 50 or more full-time employees (or a sufficient number of full-time equivalent employees so as to constitute 50 or more full-time employees) at a single fixed location in the city, and which comprises a commercial facility. The increase in the operation of the business must be at a site co-located with an industrial, a commercial or a professional operation owned by the same business. Businesses engaged in retail sales shall be included within this category. (c) Initial eligibility. (1) Application. In order to be considered for eligibility to receive an impact fee deferral under this article, a business must first submit an application for impact fee deferral on a form supplied for this purpose by the city. (2) Determination of initial eligibility. For purposes of determining initial eligibility of new businesses and the expansion of existing businesses for impact fee deferrals under this article, the number of new jobs created will be based on the actual number of documented full-time employees or full-time equivalent employees the business, at the time of application for the impact fee deferral, either actually employs or pledges to employ within a reasonable period of time following the approval of the impact fee deferral. The number of new jobs created shall be calculated as follows: a. New businesses. For new businesses, the number of new jobs created shall be calculated by combining the number of jobs, if any, the new business has located in Cape Coral as of the date of imposition of the impact fee for which deferral is sought with the number of new jobs, if any, which the new business is pledging to employ within a 12 month period from the date of imposition of the impact fee. b. Existing businesses. For existing businesses, the number of new jobs created by the expansion of an existing business shall be calculated by combining the number of new jobs, if any, which the business created during the six months immediately preceding the date the business files its application for impact fee deferral with the number of new jobs, if any, which the existing business is pledging to employ within a 12 month period from the date it files its application for impact fee deferral. (d) Maintaining eligibility status. In order to maintain its eligibility status, a business which has received an impact fee deferral pursuant to this article must continue to maintain at least the minimum number of full-time employees or full-time equivalent employees in the new jobs or similar jobs throughout the impact fee deferral period. In the event the number of full-time or full-time equivalent employees of the business fall below the minimum necessary for initial eligibility, the City Council shall have the right to terminate the impact fee deferral for the business and to declare the entire impact fee(s) for the business to be immediately due and payable. In making its determination as to whether to terminate the impact fee deferral status for businesses whose employees fall below the minimum necessary for initial eligibility, the City Council shall take into consideration the size of the decrease in jobs since the initial eligibility period, whether the jobs have been eliminated or are merely vacant, the length of time the jobs have been vacant, the attempts, if any, that the business has made to fill the jobs, and any other factor(s) that the City Council may deem relevant to its decision. For businesses which have received a longer deferral period because of the number of city residents employed by the business, the City Council shall have the right to reduce the length of the deferral period in the event the number of employees who are city residents falls below the minimum necessary for the longer deferral period. In making its determination as to whether to so reduce the longer deferral period for the businesses, the City Council shall, in addition to the foregoing factors identified in this section, take into consideration the size of the decrease in the percentage of city residents employed by the business and the reason for the decrease. (e) Exemption. Any business which is exempt under applicable Florida law from paying ad valorem property taxes is ineligible for impact fee deferral(s) under this article regardless of whether the business might otherwise meet the eligibility criteria established herein.

Cape Coral Code of Ordinances § 2-24.36 Impact fees subject to deferral.

§ 2-24.36 - Impact fees subject to deferral. (a) Not all of the impact fees which may pertain or be applicable to a business shall be deferrable pursuant to this division. An eligible business may apply for deferral only of roads impact fees and/or utility capital expansion impact fees. (b) Neither fire public safety facilities impact fees nor recreational parks facilities impact fees are deferrable under this division. Provided that all other requirements of this division are met, an eligible business may apply for the deferral of an impact fee at any time after the impact fee is imposed on the business even if the business has made one or more installment payments on the impact fee prior to the time the business files for the deferral. (c) However, in the event a business has previously paid any portion of the impact fee for which it later seeks a deferral, only the unpaid portion of the impact fee shall be subject to deferral. (d) The deferral of an impact fee under this article shall not in any way result in a refund of previously paid impact fees or previously paid impact fee installment payments.

Cape Coral Code of Ordinances § 2-24.37 Calculation of impact fee deferrals.

§ 2-24.37 - Calculation of impact fee deferrals. The impact fee deferral period approved for an eligible business under this division shall be determined by both the total number of employees the business has and the number of employees who are residents of the city as well as other factors as follows: (a) Basic impact fee deferral. (1) Category I businesses (whether new or expanding) shall receive impact fee deferrals as follows: a. Category I businesses with ten to 24 full-time employees (or the requisite number of full time equivalent employees) shall receive a one year deferral of their impact fees. However, if 75 to 89% of a business's employees are city residents, then the business shall receive a two year deferral of its impact fees. If 90 to 100% of a business's employees are city residents, then the business shall receive a three year deferral of its impact fees. b. Category I businesses with 25 to 49 full time employees (or the requisite number of full time equivalent employees) shall receive a two year deferral of their impact fees. However, if 75 to 89% of a business's employees are city residents, then the business shall receive a three year deferral of its impact fees. If 90 to 100% of a business's employees are city residents, then the business shall receive a four year deferral of its impact fees. c. Category I businesses with 50 to 99 full time employees (or the requisite number of full time equivalent employees) shall receive a three year deferral of their impact fees. However, if 75 to 89% of a business's employees are city residents, then the business shall receive a four year deferral of its impact fees. If 90 to 100% of a business's employees are city residents, then the business shall receive a five year deferral of its impact fees. d. Category I businesses with 100 to 199 full time employees (or the requisite number of full time equivalent employees) shall receive a four year deferral of their impact fees. However, if 75 to 89% of a business's employees are city residents, then the business shall receive a five year deferral of its impact fees. If 90 to 100% of a business's employees are city residents, then the business shall receive a six year deferral of its impact fees. e. Category I businesses with 200 or more full time employees (or the requisite number of full time equivalent employees) may receive a deferral of their impact fees that is equal to or longer than those deferral periods stated above. The length of the deferral period shall be determined by the City Council. In making its determination as to the length of the deferral period for a Category I business, the City Council shall consider factors such as the total number of new jobs being created, the nature or type of new jobs, and the number of city residents who would be employed in the business as well as other factors that the City Council deems relevant to its decision. However, in no event shall the deferral period awarded a business under this article exceed ten years. (2) Category II businesses (whether new or expanding) shall receive impact fee deferrals as follows: a. Category II businesses with 25 to 49 full time employees (or the requisite number of full time equivalent employees) shall receive a one year deferral of their impact fees. However, if 75 to 89% of a business's employees are city residents, then the business shall receive a two year deferral of its impact fees. If 90 to 100% of a business's employees are city residents, then the business shall receive a three year deferral of its impact fees. b. Category II businesses with 50 to 99 full time employees (or the requisite number of full time equivalent employees) shall receive a two year deferral of their impact fees. However, if 75 to 89% of a business's employees are city residents, then the business shall receive a three year deferral of its impact fees. If 90 to 100% of a business's employees are city residents, then the business shall receive a four year deferral of its impact fees. c. Category II businesses with 100 to 199 full time employees (or the requisite number of full time equivalent employees) shall receive a three year deferral of their impact fees. However, if 75 to 89% of a business's employees are city residents, then the business shall receive a four year deferral of its impact fees. If 90 to 100% of a business's employees are city residents, then the business shall receive a five year deferral of its impact fees. d. Category II businesses with 200 or more full time employees (or the requisite number of full time equivalent employees) may receive a deferral of their impact fees that is equal to or longer than those deferral periods stated above. The length of the deferral period shall be determined by the City Council. In making its determination as to the length of the deferral period for a Category II business, the City Council shall consider factors such as the total number of new jobs being created, the nature or type of new jobs, and the number of city residents who would be employed in the business as well as other factors that the City Council deems relevant to its decision. However, in no event shall the deferral period awarded a business under this article exceed ten years. (3) Category III businesses (whether new or expanding) shall receive impact fee deferrals as follows: a. Category III businesses with 50 to 99 full time employees (or the requisite number of full time equivalent employees) shall receive a one year deferral of their impact fees. However, if 75 to 89% of a business's employees are city residents, then the business shall receive a two year deferral of its impact fees. If 90 to 100% of a business's employees are city residents, then the business shall receive a three year deferral of its impact fees. b. Category III businesses with 100 to 199 full time employees (or the requisite number of full time equivalent employees) shall receive a two year deferral of their impact fees. However, if 75 to 89% of a business's employees are city residents, then the business shall receive a three year deferral of its impact fees. If 90 to 100% of a business's employees are city residents, then the business shall receive a four year deferral of its impact fees. c. Category III businesses with 200 or more full time employees (or the requisite number of full time equivalent employees) may receive a deferral of their impact fees that is equal to or longer than those deferral periods stated above. The length of the deferral period shall be determined by the City Council. In making its determination as to the length of the deferral period for a Category III business, the City Council shall consider factors such as the total number of new jobs being created, the nature or type of new jobs and the number of city residents who would be employed in the business as well as other factors that the City Council deems relevant to its decision. However, in no event shall the deferral period awarded a business under this article exceed ten years. (b) Supplementary impact fee deferral. In addition to the basic impact fee deferral period, businesses which are eligible for impact fee deferrals under this article may also be granted an additional or "supplementary" impact fee deferral period. (1) Supplementary criteria. In determining whether to grant such a supplementary impact fee deferral period, the City Council shall consider the following supplementary criteria and award points on a scale of one to five for each of the following criteria: a. The added value to the community of the new or expanded business. Factors which may be considered by the City Council in determining the added value to the community of the new or expanded business include, but are not limited to, the nature of the business, the physical location of the business in terms of community redevelopment, and the need for a particular type of business in the community; b. The stability of the business. This includes factors such as whether the industry in which the business is engaged has a constant or cyclic rate of production and whether the business or industry has frequent periods of inactivity which tend to result in lay-offs or reductions in force; c. The type of new jobs being created and their pay scale. The higher the income or salary for the new jobs being created by the business, the higher the new or expanded business would rate in this area. For example, a business creating new jobs with a pay scale/income higher than the median income in Lee County would rate higher in this area than a business creating new jobs with a pay scale/income lower than the median income in Lee County; d. The number of new supplementary or support jobs indirectly being created by the business. This factor addresses the anticipated need of the new or expanded business for local products or for local services and the resulting anticipated effect of the new or expanded business on the regional job base; e. The financial stability of the business. Factors which may be considered by the City Council in determining the financial stability of the business include, but are not limited to, the financial condition of the business at the time of application for impact fee deferral, the business's economic history, its asset/debt ration, and the fiscal management structure established for the business; and f. The anticipated contribution of the business to the city ad valorem tax base. The greater the anticipated contribution of the new or expanded business to the city's ad valorem tax base, the higher the business would rate in this area. (2) Supplementary point scale. The city shall consider each of the above criteria for each eligible business which applies for impact fee deferral(s) under this article. For each of the above criteria, the city shall award points on a scale of one to five with one being the lowest and five being the highest number of points which may be awarded for each of the criteria so that 30 is the highest possible total number of supplementary points that may be awarded to a business under this article. (3) Calculation of supplementary deferral period. The length of the supplementary deferral period which may be awarded under this article shall be calculated utilizing the supplementary point scale as follows: a. Zero to 15 supplementary points: no supplementary deferral period; b. Sixteen to 24 supplementary points: supplementary deferral period of six months; and c. Twenty-five to 30 supplementary points: supplementary deferral period of 12 months. (4) Length of deferral period. Any supplementary deferral period granted to a business under this section shall be in addition to the basic impact fee deferral period granted under subsection (a) above. However, in no event shall the total impact fee deferral period (including both the basic deferral period and the supplementary deferral period, if any) granted to a business exceed ten years.

Cape Coral Code of Ordinances § 2-24.38 Employee and other business records.

§ 2-24.38 - Employee and other business records. (a) Determination of employee residence. The determination as to whether an employee of a new or expanding business that is applying for an impact fee deferral is or is not a city resident for purposes of this article is a factual determination to be made by the City Council. Although any one factor is not conclusive of the establishment or nonestablishment of residence within the corporate limits of the city, factors that may be considered by the city in making the determination as to whether an employee of a new or expanding business that is applying for an impact fee deferral under this article is or is not a resident of the city shall include, but not be limited to: (1) Formal declarations of the employee, including but not limited to declarations of domicile; (2) Informal statements of the employee; (3) The previous residency by the employee in a place other than the city and the date the other residency was terminated; (4) The place where the employee is registered to vote; (5) The place of residence stated on the employee's driver's license or State of Florida identification card; (6) The employee's address as listed on federal income tax returns filed by the employee; (7) The place of residence stated on the motor vehicle registration form for any vehicle registered in the employee's name; and (8) A lease, rental agreement or deed to real property located within the corporate limits of the city, together with utility bills or other documentation supporting the claim that the property which is the subject of the lease, rental agreement, or deed is the true residence of the employee. (b) Employee records. Any new or expanding business which is granted an impact fee deferral under the terms of this division shall maintain records concerning the number of employees employed by the business and their claimed place of residence. Those records shall be maintained at the business location until a time that the deferred impact fee(s) have been paid in full to the city. The records shall include, but not be limited to, the following: (1) Name and residence address of the employee; (2) Florida Driver's license or Florida Identification card (issued by the State of Florida Department of Highway Safety and Motor Vehicles) number of the employee; and (3) Other records as may be necessary to support an employee's claimed residence in the city pursuant to subsection (a) above. (c) Availability and inspection of employee and other records. In order to ensure compliance with the provisions of this division, the employee records of any new or expanding business which has applied for and/or been granted an impact fee deferral under this division shall be held open and available for reasonable inspection at the business location of the business, upon request and without court order to the City Manager of the city and representatives or employees of the city as he or she may designate to enforce the provisions of this division. In addition, any business which has applied for and/or been granted an impact fee deferral pursuant to the terms of this division shall provide other records and/or documentation as may be necessary for the city to determine either the initial or continuing eligibility of the business for an impact fee deferral under this division.

Cape Coral Code of Ordinances § 2-24.39 Effect of impact fee deferral.

§ 2-24.39 - Effect of impact fee deferral. Unless an extended payment period is approved pursuant to this article, any impact fee deferred under this division shall be paid to the city no later than seven days after the expiration of the deferral period approved by the city for the business. The amount of the impact fee(s) shall be the same as though the impact fee(s) had not been deferred but instead paid when originally due. Nothing in this division shall be construed to prohibit the payment of an impact fee which has been deferred under this article prior to the expiration of the deferral period. Further no penalty shall be assessed for the pre-payment.

Cape Coral Code of Ordinances § 2-24.40 Extended payment period for deferred impact fee.

§ 2-24.40 - Extended payment period for deferred impact fee. (a) Application. Any business which has been granted an impact fee deferral pursuant to the terms of this division and who desires to pay the impact fee(s) so deferred over an extended period of time rather than to pay them in a single lump-sum at the expiration of the deferral period may apply to the city for an extended payment period. The application shall be made in writing on a form available from the city and shall be filed with the city no later than 180 calendar days prior to the expiration of the deferral period. (b) Term. If the City Council approves the application for an extended payment period, the business shall be allowed an additional period of time during which to repay the previously deferred impact fee(s). The extended payment period may equal, but not exceed the length of the impact fee deferral period. However, in no event shall the combination of the extended payment period with the deferral period exceed ten years from the date when the deferred impact fee(s) were originally due. (c) Payment terms. Any business granted an extended period of time in which to pay the previously deferred impact fee(s) shall pay the impact fee(s) over the life of the extended payment period together with interest at a rate equal to 0.5% over the prevailing prime rate at the time the city approves the application for an extended payment period. Prepayments shall be accepted at any time and a business which chooses to prepay shall be charged interest only to the date of any prepayment together with any administrative costs authorized by the city.

Cape Coral Code of Ordinances § 2-24.41 Liens.

§ 2-24.41 - Liens. (a) All impact fees deferred under this article shall constitute a lien upon the property for which the impact fee(s) were originally imposed from the date when the impact fee(s) would originally have been due if not deferred until a time as the impact fee(s) are finally paid in full. The lien shall be of the same nature and to the same extent as a lien for general county and municipal taxes falling due in the same year or years as when the impact fee was originally due or, if an extended payment period is approved for business, then in the same year or years as when the payments fall due. The lien shall be superior in dignity to all other liens, titles and claims, until paid. Any impact fee not paid when due shall be collectible with the interest and with reasonable costs and expenses incurred by the city and its agents, including reasonable attorney's fees, in collecting the delinquent impact fees or as a result of the delinquent payments (including interest cost paid for any monies borrowed by the city as a result of the delinquency in payment). (b) The city shall have the right to appoint an agent, in addition to the City Attorney, to foreclose and collect all delinquent impact fee payments in the manner provided for by law for the collection of and foreclosure of a mortgage. If the owner of any lot or parcel of land made subject to a lien pursuant to this division for impact fee payments shall be delinquent in the payment of any impact fee payment for the period of 30 days, the city or its agents may declare the entire unpaid balance of the impact fee to be in default and cause the delinquent property to be foreclosed in the same method now or hereafter provided by law. All costs, fees and expenses, including a reasonable attorney's fee, related to any foreclosure action as described herein shall be borne by the delinquent property owner(s). (c) It shall be the duty of the city and its agents, if any, to enforce the prompt collection of impact fee payments by the means herein provided, and that duty may be enforced at the suit of any holder of bonds issued under any ordinance pledging the impact fees in a court of competent jurisdiction by mandamus or other appropriate proceedings or action. (d) The city may join in any one action the collection of impact fee payments against any or all property subject to lien(s) in accordance with the provisions of this division. All delinquent property owners whose property is foreclosed shall pay fees, costs and expenses incurred by the city and its agents, including reasonable attorney's fees, in the collection of the delinquent impact fees and any other costs incurred by the city as a result of the delinquent payments including costs paid for borrowing additional funds necessitated by the delinquency, and the same shall be collectible as a part of or in addition to, the costs of the action. (e) At the sale pursuant to decree in any like action, the city may be the purchaser to the same extent as an individual person or corporation. Property so acquired by the city may be sold or otherwise disposed of, the proceeds of the disposition to be placed in the trust funds for the applicable impact fee(s) and thereafter expended from the fund as directed by the City Council. (f) (1) Any informality or irregularity in the proceedings in connection with the levy of a lien for unpaid impact fees under the provisions of this division shall not affect the validity of the same after confirmation thereof, and any lien for the impact fee as finally approved and affirmed shall be competent and sufficient evidence that the impact fee lien was duly levied, that the impact fee lien was duly made an adopted, and that all other proceedings adequate to the impact fee lien were duly had, taken and performed as required by this division. (2) No variance from the directions hereunder shall be held material unless it be clearly shown that the party objecting was materially injured thereby. Notwithstanding the provisions of this section, any party objecting to an impact fee lien imposed pursuant to this article must file an objection with a court of competent jurisdiction within 20 days from the date the lien is recorded in the public records of Lee County.

Source: City of Cape Coral, Florida, Code of Ordinances, City Charter and Land Development Code (Municode Library, library.municode.com)URL: https://library.municode.com/fl/cape_coral/codes/code_of_ordinances?nodeId=CH2AD_ARTIIFE_DIV6IMFEDEFetched: 11/4/2026