IMPACT FEES

Cape Coral Impact Funds (also referred to as development impact fee funds) are dedicated special revenue funds maintained by the City of Cape Coral, Florida. They account for revenues collected as one-time impact fees (or the newer mobility fees for transportation) from new residential and commercial construction.

These funds operate under Florida law (e.g., F.S. 163.31801) and ensure that new development pays its proportional share of the capital costs for public infrastructure and services it creates—often summarized as “growth pays for growth.” The money is restricted by law: it can only be used for eligible capital improvements and related costs that directly benefit the paying development. It cannot be used for day-to-day operations, maintenance, or existing residents’ services.

All the Impact Funds (as shown in the City’s official budget documents)

The City maintains the following five dedicated Impact Fee Funds (with their fund numbers):

• Road Impact Fund (Fund 110) — Now transitioning to Mobility Fee revenues.
• Park Impact Fee Funds (Fund 112)
• Police Protection Impact Fees (Fund 113)
• ALS Impact Fees (Fund 114) — Advanced Life Support / EMS
• Fire Impact Capital Improvement Fee Fund (Fund 115)

(Note: Utility-related impact/connection fees for water, wastewater/sewer, and irrigation exist separately and are typically handled through the City’s utility enterprise funds, not these “Impact Funds.”)

How the Funds Are Raised

Impact fees (and the replacement mobility fee) are one-time charges assessed only on new construction or major redevelopment at the time a building permit is issued.

• Fees are calculated based on development type and size (e.g., single-family home, multi-family unit, commercial square footage) and, for mobility fees, location within one of the City’s benefit districts.
• The City recently approved phased increases (approximately 12.5% annually for four years, starting July 1, 2025) for the public-safety and park impact fees to better match infrastructure needs.
• The Road Impact Fee has been replaced by the Mobility Fee (effective via recent ordinances), which follows the same one-time, development-driven collection method but uses an updated 2045 Mobility Plan for calculation.
• Revenues are deposited directly into the specific Impact Fee Fund that matches the fee category.

What the Impact Funds Are Used For

Each fund is legally restricted to capital expenditures that mitigate the exact impact of the new development. Typical uses include:

Fund	Primary Uses
Road Impact / Mobility Fee (Fund 110)	Transportation and mobility projects: new/expanded roads, sidewalks, bike lanes, bridges, and related infrastructure per the City’s 2045 Mobility Plan.
Park Impact Fee Funds (Fund 112)	New or expanded parks, recreation facilities, and related capital improvements.
Police Protection Impact Fees (Fund 113)	Police facilities, stations, equipment, and capital improvements needed due to growth.
ALS Impact Fees (Fund 114)	Advanced Life Support / EMS vehicles, stations, and capital equipment.
Fire Impact Capital Improvement Fee Fund (Fund 115)	Fire stations, rescue vehicles, training facilities, and other fire-protection capital projects.

All expenditures must demonstrate a “rational nexus” (reasonable connection) between the fee paid and the benefit received by the new development. Unused balances stay in the respective funds and can be refunded under certain conditions if not spent within the required timeframe.

For the most current fee schedules, exact amounts, or project lists, check the City’s Development Services permit calculators or the latest adopted budget on capecoral.gov. Fees and rules can change through City Council ordinances.

Mobility Fee in Cape Coral

The Mobility Fee in Cape Coral, Florida, is a one-time development fee that replaced the City’s longstanding Road Impact Fee (RIF). It was adopted via Ordinance 42-25 in 2025 (effective in 2026) to better address the transportation and multimodal infrastructure needs of new growth under the City’s 2045 Mobility Plan.

Purpose and Legal Basis

The Mobility Fee ensures that new development pays its fair share (“growth pays for growth”) for the increased travel demand it generates. It funds a broader range of multimodal improvements than the old road-only impact fee, including:

• Roadway capacity expansions, intersections, roundabouts, and bridges
• Complete streets, sidewalks, bike lanes, shared-use paths, and pedestrian crossings
• Mobility hubs, transit infrastructure, potential ferry/water taxi services, and related studies/programs

Funds are deposited into dedicated special revenue accounts (replacing the former Road Impact Fund, Fund 110) and can only be spent on eligible mobility projects identified in the 2045 Mobility Plan. They cannot be used for operations, maintenance, or existing development. Expenditures must occur within defined benefit districts and demonstrate a “rational nexus” (reasonable connection) between the fee paid and the benefit received.

This system complies with Florida Statutes (e.g., §§ 163.3180, 163.31801) governing impact/mobility fees.

How It Replaces the Old Road Impact Fee

• Previous RIF: A flat or simpler per-unit fee (e.g., approximately $3,347 per single-family dwelling unit) that had not been meaningfully updated in nearly 20 years.
• New Mobility Fee: Location-based, land-use-specific, and tied directly to projected impacts in the 2045 Mobility Plan. It is generally higher to reflect updated costs and broader multimodal needs, with phased increases allowed.

The fee applies to new construction, major redevelopment, changes of use, or any activity that increases person/vehicle travel demand. It is collected at the building permit stage.

Assessment Areas and Benefit Districts

The City is divided into four Assessment Areas (where fees are calculated based on location):

• South Cape Core (highest intensity/urban core area)
• South Cape
• Central Cape
• North Cape (generally lower rates in some proposals)

There are two Benefit Districts (where collected funds must be spent on projects benefiting that area):

• South Cape Benefit District
• North Cape Benefit District

Benefit districts can extend beyond current city limits to support regional projects (e.g., county or state roads) that improve mobility for Cape Coral developments. Fees collected in one district stay in that district.

Fee Calculation and Schedules

Fees are calculated using data from the August 2025 Mobility Fee Technical Report, based on:

• Land use type and intensity (e.g., residential dwelling units or square footage, commercial categories)
• Location within an assessment area
• Projected increase in vehicle miles traveled (VMT) or person miles traveled (PMT) from new development

Example proposed/early rates (from 2025 discussions; actual adopted schedules may vary slightly and are detailed in city ordinances/exhibits):

• Single-family residential: Often calculated per 1,000 sq ft or per dwelling unit, ranging roughly $3,395 – $7,489 per 1,000 sq ft depending on the assessment area (South Cape Core typically highest).
• Commercial/retail: Per 1,000 sq ft, with subcategories (local retail, multi-tenant, free-standing) ranging from about $4,952 – $40,367, plus possible additive fees for certain uses.
• Other categories include institutional, office, industrial, recreational, lodging, etc.

The City set fees at or near maximum justified levels but with phased increases of 12.5% annually over four years (2026–2029) to ease the transition while complying with state limits on impact fee hikes (generally no more than 50% total increase in a cycle, adjustable every 4 years). For context, some projections targeted around $9,995+ per new single-family dwelling at full implementation (a significant jump from the old $3,347 flat rate). Exact current rates depend on the specific development type, size, and location—developers should use the City’s permit calculator or consult Development Services for precise quotes.

Developers may have options for credits (e.g., if they construct eligible public mobility improvements themselves) or enter agreements for alternative mitigation. Extraordinary circumstances studies can sometimes adjust fees for unique projects.

How Funds Are Raised and Administered

• Raised: One-time payment by new developers at permitting. Not a tax on existing residents or properties.
• Administration: Handled through the City’s Development Services and Public Works (Transportation Division). An administrative manual outlines procedures, and annual reports track collections and expenditures.
• Refunds: If fees are not spent within a required period (often 7 years) on benefiting projects, unused portions may be refunded.
• Exemptions: Limited (e.g., certain public or low-impact uses); details are in the ordinance.

Key Differences from Traditional Impact Fees

Mobility fees offer more flexibility for multimodal projects (bikes, pedestrians, transit) versus road capacity only. They support the City’s growth projections (significant population and employment increases through 2045) while aiming to reduce congestion and improve safety.

For the most accurate and up-to-date fee schedules, benefit district maps, project lists from the 2045 Mobility Plan, or to calculate a specific project’s fee, visit the City of Cape Coral website (capecoral.gov), contact the Transportation Division or Building Division, or review the adopted ordinance and technical reports. Fees and rules can be updated periodically per state law. Since you are in Cape Coral, local staff can provide tailored information for any development plans.

A side-by-side comparison of the Road Impact Fee (RIF) and the Mobility Fee

Here is a clear, side-by-side comparison of the Road Impact Fee (RIF) and the Mobility Fee in Cape Coral, Florida:

Aspect	Road Impact Fee (Old System)	Mobility Fee (New System – Effective 2026)
Legal/Regulatory Basis	Traditional impact fee under Florida law; focused on road capacity.	Alternative transportation system under F.S. 163.3180; replaces road impact fees and transportation concurrency/proportionate share.
What it Funds	Primarily road capacity improvements (new/widened roads, turn lanes, intersections).	Broader multimodal improvements: roads + sidewalks, bike lanes, shared-use paths, pedestrian crossings, complete streets, mobility hubs, transit facilities, bridges, roundabouts, signals, and related projects per the 2045 Mobility Plan.
Calculation Method	Relatively simple, mostly flat or basic per-unit/per-sq-ft rates; not updated for ~19–20 years.	More sophisticated, plan-based methodology tied to the 2045 Mobility Plan and Mobility Fee Technical Report. Based on projected person miles traveled (PMT), land use type, intensity, and location-specific assessment areas.
Fee Structure	Uniform city-wide rates (not location-based in a nuanced way).	Location-based across four assessment areas (e.g., South Cape Core highest, North Cape generally lower) and spent within defined benefit districts (North Cape and South Cape).
Example Rate – Single-Family Residential	$3,347 per dwelling unit (flat rate, same for many years).	Significantly higher overall. Phased increases starting in 2026 (typically ~12.5% annually for four years). Full implementation could reach approximately $9,997+ per unit by ~2029 (varies by exact home size, location, and final adopted schedule). Early 2026 rates were reported around $3,700 for many single-family homes.
Other Development Types	Fixed rates (e.g., higher for duplexes, hotels, certain commercial uses per 1,000 sq ft).	Variable by land use category, size, and location; commercial/retail fees can range from several thousand to tens of thousands per 1,000 sq ft depending on type (local retail, free-standing, etc.).
When Collected	One-time at building permit issuance.	One-time at building permit issuance (same).
Who Pays	Only new construction or major redevelopment.	Only new construction or major redevelopment (same “growth pays for growth” principle).
Expenditures	Restricted to eligible road projects with rational nexus.	Restricted to mobility projects in the 2045 Mobility Plan within the applicable benefit district; must demonstrate benefit to the paying development. Unused funds may be refunded after a set period (often 7 years).
Credits & Alternatives	Limited credits for prior contributions.	Similar credits available; developers can request agreements to construct/advance eligible mobility projects in lieu of (or partial offset for) paying the fee.
Administration	Handled via old Road Impact Fund (Fund 110).	Dedicated mobility fee special revenue accounts; annual reporting required; more detailed administrative manual.
Purpose & Flexibility	Narrow focus on vehicle capacity to maintain level of service.	Broader goal of improving overall mobility and multimodal options to reduce congestion, enhance safety, and support complete streets/transit-friendly growth.

Key Takeaways

• The Mobility Fee replaces the Road Impact Fee entirely (via Ordinance 42-25 and related actions in 2025). It is not an additional fee.
• The main drivers for the change were: outdated fees (unchanged for nearly 20 years), rapid growth, worsening traffic, aging bridges/infrastructure, and the desire for a more comprehensive multimodal approach aligned with the city’s 2045 Mobility Plan.
• Fee levels are generally higher under the new system because they reflect current construction costs, updated demand projections, and a wider range of eligible projects. The City implemented phased increases (roughly 12.5% per year over four years) to ease the transition while complying with state limits on impact fee hikes.
• Both systems are one-time developer-paid fees and cannot be used for ongoing maintenance or operations — only capital improvements that serve new growth.
• The Mobility Fee gives the City more flexibility to fund sidewalks, bike infrastructure, and other non-car options, which traditional road impact fees typically could not.

For the most precise current rates (which can vary by exact project details and location), developers should use the City’s permitting calculator or contact Cape Coral Development Services / Transportation Division. Schedules and the full 2045 Mobility Plan are available on capecoral.gov. Fees and rules can be reviewed/updated periodically per state law.

Since you’re in Cape Coral, local staff can provide project-specific calculations if you have a development in mind.

Cape Coral 2045 Mobility Plan

The Cape Coral 2045 Mobility Plan is the City’s official long-range (approximately 20-year) transportation and mobility strategy, dated August 2025. It serves as the foundational document for the new Mobility Fee system, replacing the outdated Road Impact Fee approach.

Purpose and Goals

The plan creates a framework to accommodate projected growth while providing more transportation choices and improving overall mobility for residents, visitors, and goods. It shifts from a traditional car-focused “level of service” model to a multimodal system that emphasizes safety, connectivity, reduced congestion, and complete streets.

Key drivers include:

• Rapid population and employment growth in Cape Coral.
• Aging infrastructure (e.g., bridges built decades ago).
• Increasing vehicle and person miles traveled.
• The need for “growth to pay for growth” through developer-funded improvements.

Projected Growth (2025–2045):

• Population: From ~219,821 to ~297,046 (increase of ~77,225).
• Employees: From ~48,863 to ~76,196 (increase of ~27,333).

The plan was developed with public input (workshops in 2025), data from travel demand modeling, and coordination with the Lee County MPO’s broader 2045 Long Range Transportation Plan. It complies with Florida Statutes (e.g., §§ 163.3180, 163.31801) governing mobility fees and transportation planning.

Structure of the Plan

The 2045 Mobility Plan consists of three distinct plans plus supporting programs:

1. Roadways & Intersections Plan
   Focuses on capacity and operational improvements for vehicles, including:

• New or widened roadways
• Intersection upgrades (signals, turn lanes, roundabouts)
• Bridge improvements or replacements
• Access management (e.g., medians to reduce conflicts)

1. Multimodal Plan
   Emphasizes non-car options and “complete streets”:

• Sidewalks and pedestrian crossings (mid-block crossings)
• Bike lanes, shared-use paths, bike boulevards, and separated facilities
• Multimodal lanes and street retrofits for safer walking/biking

1. Transit & Waterways Plan
   Explores alternatives to driving:

• Transit infrastructure and circulators
• Potential ferry/water taxi services or stops
• Mobility hubs (integrated transfer points for different modes)

Complementary Mobility Programs: These include studies, services, safety initiatives, and operational improvements (e.g., access management retrofits on corridors like Chiquita Blvd).

The plan includes maps showing project locations and tables listing specific projects with estimated costs and details. Total identified needs exceed $1 billion in some discussions, though the Mobility Fee funds a portion tied directly to new development’s impacts (with “rational nexus” requirements).

How It Relates to the Mobility Fee

• The plan identifies eligible mobility projects that new development’s impacts help fund.
• Fees collected are restricted to projects within defined benefit districts (North Cape and South Cape) that benefit the paying development.
• This replaces transportation concurrency and proportionate share requirements in many areas, streamlining permitting while ensuring infrastructure keeps pace with growth.
• Developers can sometimes receive credits by constructing eligible projects themselves instead of (or in addition to) paying the fee.

Key Features and Innovations

• Multimodal focus: Moves beyond roads-only improvements to include bikes, pedestrians, and transit — a departure from Cape Coral’s historically auto-centric layout.
• Benefit districts and assessment areas: Projects and fees are geographically targeted (e.g., higher-intensity areas like South Cape Core often have higher needs and fees).
• Phased and flexible: Includes short-, medium-, and long-term projects; some are already partially funded or aligned with regional plans.
• Examples of project types:
• Road widening and intersection improvements.
• Sidewalk and bike path additions along key corridors.
• Access management on busy roads (e.g., medians and turn lanes).
• Potential water-based transit options.

Implementation and Next Steps

• The plan was tied to Ordinance 42-25 (Mobility Plan and Fee adoption process in 2025).
• It requires updates to the City’s Comprehensive Plan (e.g., removing old concurrency policies).
• Annual reporting on fee collections and expenditures is required.
• Projects are prioritized based on growth impacts, safety, and connectivity needs.
• Funding comes primarily from Mobility Fees for growth-related portions, supplemented by other grants, bonds, or city resources where appropriate. Fees cannot fund maintenance or operations.

The full 2045 Mobility Plan PDF (with maps and project tables) is available on the City of Cape Coral website under Public Works / Transportation Division. The companion Mobility Fee Technical Report (August 2025) provides the detailed methodology and data behind fee calculations.

For residents or developers in Cape Coral, the plan aims to make the city safer and more livable as it grows toward ~300,000 people by 2045. Check capecoral.gov for the latest documents, project maps, or to see how specific neighborhoods may be affected. Public Works / Transportation staff can provide more tailored details on planned improvements near your area.

Projects Cape Coral 2045 Mobility Plan

The Cape Coral 2045 Mobility Plan (adopted in 2025) identifies a comprehensive set of multimodal transportation projects to address projected growth through 2045. It includes new roadways, capacity expansions, intersection upgrades, access management, sidewalks, bike facilities, shared-use paths, mid-block crossings, mobility hubs, ferry stops, and supporting programs.

Projects are Grouped into Three Main Plans plus Programs.

Funds from the Mobility Fee (collected only from new development) are restricted to eligible projects in the plan that demonstrate a “rational nexus” benefit to the paying development, primarily within the North Cape and South Cape Benefit Districts.

Overall Scale of Improvements

• Roads & Intersections: 13 roundabouts, 57 access management improvements, 113 intersection improvements, 23 miles of roadway capacity additions, 5 miles of new roadways, 1 interchange, plus corridor/PD&E studies.
• Multimodal: 99 miles of shared-use paths, 64 miles of sidewalks, 12 miles of separated bike lanes, 12 miles of multimodal lanes, 10 miles of bike boulevards, 85 mid-block crossings, and more.
• Transit & Waterways: 8 ferry stops, 8 mobility hubs, 3 Mobility on Demand zones.

These improvements aim to enhance safety, reduce congestion, and provide more travel choices (driving, walking, biking, transit, water-based).

Roads & Intersections Plan

This component focuses on vehicle capacity, safety, and operations through new/extended roads, widenings, access management (medians and turn lanes to reduce conflicts), and intersection upgrades (roundabouts preferred in many cases, signals, etc.). Many projects incorporate “complete streets” elements.

Representative Projects (with ID, location, type, and description):

• ID 5: Andalusia Blvd Extension — Jacaranda Pkwy to Kismet Pkwy. New roadway & intersection improvement. Extend as a new four-lane divided road with complete street improvements; roundabout at Jacaranda Pkwy and traffic signal at Kismet Pkwy (currently under design; example of transitioning from old road impact fees).
• ID 10: Andalusia Blvd — Kismet Pkwy to NE Pine Island Rd. Access management & intersection improvements. Add medians and turn lanes with intersection work at Tropicana Pkwy.
• ID 15: Beach Pkwy — Agualinda Blvd to Chiquita Blvd. Access management & intersection improvements. Medians/turn lanes; roundabout preferred at Agualinda Blvd.
• ID 20: Caloosa Pkwy — Old Burnt Store Rd to Burnt Store Rd. New roadway & intersection improvement. Upgrade existing segments and fill gaps with two-lane undivided roadway plus intersection work.
• ID 25: Cape Coral Pkwy — Agualinda Blvd to Coronado Pkwy. Access management & intersection improvements. Medians/turn lanes at multiple crossings (e.g., Chiquita Blvd, Skyline Blvd); ties into corridor resilience planning and complete streets.
• ID 30: Cape Coral Pkwy — Coronado Pkwy to Del Prado Blvd. Roadway capacity & intersection improvements. Optimize capacity with Safe Streets for All (SS4A) treatments, signal improvements, ADA compliance, and bike/ped facilities.
• ID 35: Chiquita Blvd — Wilmington Pkwy to NW 23rd St. Roadway capacity & intersection improvements. Widen to four lanes; roundabout preferred at Wilmington Pkwy.
• ID 40/45/50: Chiquita Blvd (multiple segments) — Various segments (e.g., Kismet Pkwy to Tropicana Pkwy; Tropicana to SW Pine Island Rd; to SW 58th Ln). Access management & intersection improvements. Extensive medians/turn lanes (up to 4+ miles in one segment) plus new signals and upgrades at crossings like Embers Pkwy, El Dorado Pkwy, and others. Some segments partially funded or in progress.
• ID 55: Coronado Pkwy — Del Prado Blvd to Lucerne Pkwy. Access management & intersection improvements. Medians/turn lanes with upgrades at multiple points and roundabouts at select terraces/streets.

Other common themes include upgrades on Diplomat Pkwy, Gleason Pkwy, Trafalgar Pkwy, and major corridors like Cape Coral Pkwy and Chiquita Blvd.

Multimodal Plan

This builds on the city’s earlier Multimodal Transportation Master Plan, adding sidewalks, bike infrastructure, shared-use paths, and pedestrian safety features for “complete streets” and connectivity.

Representative Projects:

• ID 315/316: Academy Blvd — Nicolas Pkwy to SE 32nd St. Multimodal lane conversion and new 6′ sidewalk.
• ID 320/325: Agualinda Blvd — Various segments (e.g., SW 32nd St to Savona Pkwy; Savona to El Dorado Pkwy). Convert sidewalks to 10′ shared-use paths with lighting and drainage.
• ID 330: Andalusia Blvd — NE 32nd Ln to Jacaranda Pkwy. Bike boulevard with traffic calming, signage, and markings.
• ID 335: Andalusia Blvd — Kismet Pkwy to NE Pine Island Rd. New 10′ shared-use path (one segment) and 7′ separated bike lanes (another).
• ID 355/360: Cape Coral Pkwy — Segments from Sands Blvd to Del Prado Blvd. 8′ separated bike lanes with intersection treatments.
• ID 375/380: Chiquita Blvd — Segments from Jacaranda Pkwy to Pine Island Rd. New 10′ shared-use paths with drainage and lighting.

Additional elements include mid-block pedestrian crossings (85 planned), traffic calming, and boardwalks in select areas.

Transit & Waterways Plan

This supports expanded transit options, including LeeTran bus service, potential ferry/water taxi services leveraging Cape Coral’s extensive canal system, and integrated hubs.

Key Projects (ferry stops and mobility hubs):

• Ferry Stops (8 total, with planning/design/construction of docking facilities; maintenance often by City or partners):
• Downtown River District (Fort Myers side).
• Jaycee Park, Bernice Braden Park, Yacht Club Park, Tarpon Point, Crystal Lake Park, Seven Islands Development, and Four Freedoms Park (all in Cape Coral).
• Mobility Hubs (8 total; examples):
• SE 47th Ter and SE 8th Ct: Connect city/county bus routes.
• SE 21st Ln and Del Prado Blvd (at Coralwood Shopping Center): Bus route connections.
• Mobility on Demand Zones: 3 zones to support flexible, on-demand transit services.

Mobility Programs

These include corridor studies, PD&E (Project Development & Environment) studies, safety initiatives, access management retrofits, micromobility pilots, and ongoing planning to adapt to changing needs. They complement the capital projects and help prioritize implementation.

Implementation Notes

• Projects are mapped in the plan (Roads & Intersections Map, Multimodal Map, Transit & Waterways Map) and detailed in project tables.
• Not all projects are funded solely by mobility fees; some may leverage grants, bonds, or other sources. Mobility fees target the growth-related portion.
• Prioritization considers safety (e.g., high-injury networks), connectivity, and growth impacts.
• Some projects (like certain Chiquita Blvd segments or Andalusia extensions) are already partially funded or in design.

The full plan document (including detailed maps and complete project tables) is available on the City of Cape Coral website under Public Works / Transportation Division. For the latest status on any specific project, contact the City’s Transportation Division or check the Capital Improvement Program (CIP). Since you’re in Cape Coral, local staff can provide details on projects near your area or how they tie into permitting and fees. The plan is designed to evolve with updates as growth and needs change.

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