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HomeMy WebLinkAbout05/02/2006 Blue Sheet Impact Fees Ordinance TOWN COUNCIL MEETING INFORMATION MEETING DATE: TOWN OF MARANA May 2, 2006 AGENDA ITEM: J. 1 TO: MAYOR AND COUNCIL FROM: James R. DeGrood, P.E., Assistant Town Manager SUBJECT: Ordinance No. 2006.12: Relating to Development; accepting and approving the technical report recommending construction cost increases in impact fees; adopting revised development impact fees for the South Transportation Benefit Area, the Northwest Transportation Benefit Area and Parks Benefit Area; providing for the automatic revision of these impact fees on July 1 of each year based on the Engineering News Record 20 City Construction Cost Index; adopting an affordable housing impact fee waiver for areas designated as Colonias; declaring an emergency with respect to the affordable housing impact fee waiver provision; and providing an effective date. DISCUSSION On February 10, 2006 the Town of Marana released an impact fee report recommending the adoption of modifications to the existing impact fees for parks, northwest Marana arterial and collector roadways, and the Twin Peaks interchange project. The report recommended that these impact fees be indexed to the Engineer News Record 20-City Construction Cost Index, (ENR CCI) with future automatic fee adjustments using the ENR CCI on July 1, 2007 and on July 1 of each year thereafter. Based on the ENR CCI, staff recommends that the parks and northwest Marana transportation development impact fees be increased by 5% and that the development impact fee for the Twin Peaks interchange project be increased by 20.4% percent. The resulting fees will be: Twin Peaks interchange impact fee Northwest transportation impact fee Parks impact fee $2,932/EDU $6,238/EDU $3,028/EDU The technical report also recommends that impact fees be waived for new housing constructed in Colonias located in the Town as established by resolutions of the Marana Town Council and the Pima County Board of Supervisors. These are areas where affordable housing opportunities are most likely to occur. The proposed ordinance implements these recommendations and provides for the general fund deposits into the affected impact fee accounts to offset the anticipated impact fee waivers. {0000201 6. DOC /} These recommendations were presented to the Town Council on February ih. Copies of the technical report supporting these revisions to the impact fee programs have been available at Town Hall since then, and have been distributed to developers and builders working within the Town. A presentation on the new fee proposal was made at the Southern Arizona Home Builders Association (SAHBA) Land Subcommittee on January 9th. Town staff has received no comments on the proposed changes. A public hearing on the proposed ordinance was held at the April 18, 2006 Council meeting. No objections were raised to the implementation of the new fee rates, but one resident appeared to request that the impact fee waiver be available immediately for new housing in a Colonia. To address this comment, the proposed ordinance enacts the Colonia fee waiver immediately by declaration of emergency. If this Ordinance is enacted on May 2, the development impact fee increases will become effective on August 1, 2006. RECOMMENDATION Staff recommends adoption of Ordinance 2006.12. SUGGESTED MOTION I move to adopt Ordinance 2006.12. {000020/6.DOC /} -2- MARANA ORDINANCE NO. 2006.12 RELATING TO DEVELOPMENT; ACCEPTING AND APPROVING THE TECHNICAL REPORT RECOMMENDING CONSTRUCTION COST INCREASES IN IMP ACT FEES; ADOPTING REVISED DEVELOPMENT IMP ACT FEES FOR THE SOUTH TRANSPORTATION BENEFIT AREA, THE NORTHWEST TRANSPORTATION BENEFIT AREA AND PARKS BENEFIT AREA; PROVIDING FOR THE AUTOMATIC REVISION OF THESE IMP ACT FEES ON JULY 1 OF EACH YEAR BASED ON THE ENGINEERING NEWS RECORD 20 CITY CONSTRUCTION COST INDEX; ADOPTING AN AFFORDABLE HOUSING IMP ACT FEE WAIVER FOR AREAS DESIGNATED AS COLONIAS; DECLARING AN EMERGENCY WITH RESPECT TO THE AFFORDABLE HOUSING IMPACT FEE WAIVER PROVISION; AND PROVIDING AN EFFECTIVE DATE WHEREAS, the Town is authorized by A.R.S. S 9-463.05 to assess and collect development impact fees to offset costs to the Town associated with providing necessary public services to a development; and WHEREAS, the technical report entitled "Annual Report and Recommendations for Impact Fees in Marana; South Transportation Benefit Area, Northwest Marana Transportation Benefit Area, Parks" ("the Technical Report") recommends indexing the Town's Development Impact Fess to the Engineering News Record 20 City Construction Cost Index (ENR CCI); and WHEREAS, the technical report recommends a 20.4% increase of the existing South Transportation Benefit Area development impact fee based upon changes in the ENR CCI since the 2001 adoption ofthe impact fee; and WHEREAS, the technical report recommends a 5.0% increase of the existing Northwest Transportation Benefit Area development impact fee based upon changes in the ENR CCI since the 2005 adoption of the impact fee; and WHEREAS, the technical report recommends a 5.0% increase of the existing Park development impact fee based upon changes in the ENR CCI since the 2005 adoption of the impact fee; and WHEREAS, waiving development impact fees for new home construction within existing, established neighborhoods designated as "Colonias" will provide affordable housing opportunities and is in the best interests of the citizens of Marana; and WHEREAS, the Technical Report was released to the public and at least sixty days' advance notice of intention to assess the increase of the impact fees has been provided; and WHEREAS, a public hearing on the proposed fee increase was held on April 18, 2006, in accordance with A.R.S. S 9-463.05. {00002015.DOC /} - 1 - ORDINANCE No. 2006.12 NOW, THEREFORE, BE IT ORDAINED by the Mayor and Council of the Town of Marana, Arizona, as follows: Section 1. The South Transportation Benefit Area Development Impact Fee adopted by Marana Ordinance No. 2001.02 is hereby increased to $2,932 per EDU. Section 2. The Northwest Transportation Benefit Area Development Impact Fee adopted by Marana Ordinance No. 2005.12 is hereby increased to $6,238 per EDU. Section 3. The Park Development Impact Fee adopted by Marana Ordinance No. 2005.11 is hereby increased to $3,028 per EDU. Section 4. The development impact fees as modified by Sections 1 through 3 of this Ordinance shall be automatically modified on July 1, 2007 and on July 1 of each year thereafter to reflect changes in the ENR CCI during the applicable period. Section 5. Impact fee collection is waived for residential construction within the Colonias established in the Town of Marana by Marana Resolution No. 1998-76 and Pima County Resolution 2000-232. General fund revenues in the amount of $130,702 (the estimated cumulative total Northwest Transportation Benefit Area Development Impact Fees waived by this Section) are hereby ordered to be deposited in the Northwest Transportation Benefit Area Development Impact Fee account, and general fund revenues in the amount of $63,448 (the estimated cumulative total Park Development Impact Fees waived by this Section) are hereby ordered to be deposited in the Park Development Impact Fee account to offset the waiver established by this Section. (No Colonias are located in the South Transportation Benefit Area.) Section 6. Sections 1 through 4 of this Ordinance shall be effective 90 days after formal adoption of this Ordinance by the Mayor and Council of the Town of Marana. Section 7. IT IS FURTHER ORDAINED that, since it is necessary for the preservation of the peace, health and safety of the Town of Marana that Section 5 of this Ordinance become immediately effective, an emergency is hereby declared to exist, and Section 5 of this Ordinance shall be effective immediately upon its passage and adoption. PASSED AND ADOPTED by the Mayor and Council of the Town of Marana, Arizona this 2nd day of May, 2006. Ed Honea, Mayor APPROVED AS TO FORM: ATTEST: Frank Cassidy, Town Attorney Jocelyn C. Bronson, Town Clerk {OOO02015.DOC I} - 2 - ORDINANCE No. 2006.12