Oviedo business owners say surprise fees drive up development costs

Two Oviedo business owners say the city’s development process left them with bills they did not expect and requirements they say arrived too late to change course. Mike Lombardo, who owns Yard Fellas, and Greg Cordner, who recently opened Iron Gate Luxury RV Storage, say the surprise costs climbed into the tens of thousands of dollars after they had already committed money, demolished buildings, or bought land.

Lombardo said he invested his savings into land and equipment storage space, expecting a straightforward purchase, only to face a much larger bill once city requirements were added. Cordner described a similar experience, saying he had already torn down buildings and started construction before learning about obligations that had not been clearly laid out earlier in the process. The reported list of conditions included impact fees, a mobility strategy, signage, trees, sidewalk installation, a bus stop, stop signs and even a bicycle repair station.

The dispute goes beyond a single invoice. It raises the question of how much of the cost of growth is being passed to small business owners, and when those costs are disclosed. Oviedo Development Services says it handles building services, planning, development review, code enforcement and the processing of city and Seminole County business tax receipts for businesses inside city limits. The city’s Development Review Division says it monitors compliance with the Land Development Code and helps ensure adequate infrastructure and basic services for new development and redevelopment.

Oviedo has also built its growth policy around transportation infrastructure. The city says its 2045 Mobility Plan and Mobility Fee program work together to replace road impact fees, and that mobility fees are a primary way local governments require new development, redevelopment or expansion to mitigate transportation impacts. In September 2024, the Oviedo City Council approved new mobility fees on development to help pay for transportation needs over the next 22 years, replacing existing transportation impact fees and the Seminole County mobility fee within city limits.

City officials say the rules are not ad hoc. Development Services Director Teresa Correa said the fees are written into Oviedo’s land development code and approved by the city council, not created by staff in response to individual applicants. At the same time, Correa acknowledged the city can improve how it explains the process, especially to first-time applicants who may not understand what they are signing up for.

The city’s own fee structure adds another layer for local businesses. Oviedo requires city and county business tax receipts, with city fees set at $25 for non-regulated businesses and $45 for regulated businesses. Those receipts expire Sept. 30, renewals open July 1, and late fees begin Oct. 1 with a 10% penalty plus 5% each month afterward, up to 25%. In a city where development review, mobility fees and business tax compliance all run through the same department, the central question is whether Oviedo is making growth clear enough for the owners it says it wants to attract.