Palm Coast Residential Construction Moratorium Fails

A motion by Mayor Mike Norris to put a moratorium on residential construction died on the vine after no member of the City Council offered a second.

Norris had tried to tie the moratorium to a water and sewer rate increase, arguing the city’s infrastructure was “not in place to support residential construction at this time.” However, several comments from residents, a public protest organized by the Flagler Home Builders Association and no interest from the rest of the City Council decided the motion’s fate.

Among those speaking out against the idea of a moratorium at a City Council meeting earlier this month was Jared Halleck, a construction manager for a local builder.

Calling the idea “not only short-sighted but fundamentally damaging to our local economy, workforce and families,” Halleck said the idea of a moratorium on residential construction was “a knee-jerk reaction that creates more problems than it solves.”

Halleck said the economic impact of a moratorium would be bad for the city.

“A moratorium doesn’t just pause development, it chokes the local economy,” he said. “Growth isn’t the enemy, mismanagement is. A building moratorium is a lazy, destructive choice.”

In an interview with EVOLVE News, Annamaria Long, executive officer at the Flagler HBA, said a moratorium would not solve the issue of funding the utility plan.

“The funding for the utility plan is broken down into a few types, but much of it (including the city’s ability to obtain bonds) is predicated on impact fees,” she said. “If you do not have new construction, you do not have impact fees and your funding model is broken. This would put the full burden of the utility plan on current residents.”

Long also said a moratorium would have a “trickle-down effect on the city’s economy” including not only those in the construction industry directly, but other local businesses that serve the building trades, as well as other entities such as restaurants and retailers that would be affected by a rise in the city’s unemployment if construction projects were halted.

Long said the home builders group supports the city’s utility plan, including increasing fees charged to new construction.

“We did not disagree with the city’s decision to raise impact fees to the maximum amount allowed by state law and anticipate that to happen again at the next allowable review,” she said. “The real key here is education in what funding can be used for each part of the utility plan and what has been used thus far. We would gladly assist the city in their efforts.”