Cocoa Beach city commissioners will vote Thursday on proposed impact fees that could stop a 220-unit apartment complex from being built along the Banana River Lagoon. The fees, which would charge developers $3,060 per single-family home and $2,144 per multifamily unit, are meant to fund police, fire, and infrastructure needs. The Drift, a mixed-use project planned for 7 acres near State Road 520 east of Cape Canaveral Hospital, is at risk if the fees pass. Developers have warned the project might not move forward without changes.
Cole Oliver, an attorney for The Drift’s investors, told the city in documents that the fees could force the developers to abandon the project. The proposed charges would generate about $475,000 from The Drift alone, but city officials say future property taxes on non-homestead properties may be more critical to funding local government. Commissioner Skip Williams raised concerns about the governor’s plan to eliminate property taxes on primary residences, which could create uncertainty for the city’s revenue streams.
Cocoa Beach currently has no impact fees, unlike other cities and counties in the region. The fees would apply to new construction projects, with the city citing a need to cover rising costs for public services. The Drift is the only development with a signed agreement and significant upfront investments, making it a key potential source of revenue. If the fees are approved, the project could become the first major casualty of the city’s new policy.