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HomeMy WebLinkAbout01/07/2014 Council Presentation - Impact fees2014 Development Fees Roads and Parks Jan 7, 2014 www.marana.com www.marana.com Development Fees Authorized under ARS 9-463.05 Can only be used (and credits given) for new construction , not maintenance Can NOT be used to improve existing deficiencies –only provide existing level of service Must be for a proportionate share Must credit other revenues Deadline of August 1, 2014 www.marana.com Current Development Fees Purpose Began Lower Santa Cruz Levee2/1999 South Transportation4/2001 NW Transportation7/2005 Parks7/2005 Water Infrastructure1/2006 Water Resource1/2006 NE Transportation7/2008 Wastewater1/2012 www.marana.com Fee Adoption Process Growth Assumptions Determine expected growth in the – next 10 years, used to perform traffic modeling; key to general plan Infrastructure Improvement Plan Listing and cost of proposed – infrastructure to be built in 10 years Define fee categories and factors – Development Fee Report Refine assumptions from previous – reports, determine fee tables www.marana.com Growth Assumptions 10-year population and employment forecasts Reviewed at subdivision level – Input from Town staff and PAG Allocated to fee service areas and transportation analysis zones Total 10-year growth estimate 7,177 new homes/19,388 people – 401 acres of commercial/industrial – 6,186 new jobs – www.marana.com Streets Improvement Plan Retains the current service areas Land use assumptions used in Travel Demand Model (PAG) Defined new road projects and their total capital costs Determined traffic increase on new roads Separated by land use categories – Forms basis for fee study – Excludes fee for use of existing – capacity (will be in fee study) www.marana.com Streets Fee Categories Single Family Retail (4 tiers) Residential High Traffic Retail Multi-Family Industrial Hotel/Motel Office Congregate Medical Care Institutional Recreational www.marana.com Streets Fee Service Areas www.marana.com Parks and Recreational Plan Uses single Townwideservice area IIP is based on “incremental expansion” method Detailed inventory of all facilities – Replacement cost of current facilities – Fee will be assessed using current level of service Fees for SFR; MFR at 67% SFR rate No fee currently proposed for non- residential development www.marana.com Parks Facilities Service Area www.marana.com Typical Projects in IIPs Tangerine Road Marana Main St Tangerine Farms Rd Marana Road Twin Peaks Rd Saguaro Bloom Park N Marana Soccer Field Tangerine District Park Shared Use Paths Hiking Trails www.marana.com Comments to Date Are cost estimates by qualified professionals? Should Parks fee be a single service area? Should existing park land be capped at 30 acres? What are the vehicle demand assumptions? Certain parks amenities have been questioned How have construction tax credits been calculated? What is the reasoning for 10% HURF credit? www.marana.com Parks Amenities Amenities Questioned Concession standsMaintenance buildings Sand Volleyball courts Paths Skate parks Trails Dog parks ARS 9-463.05 Prohibitions vehicles, equipment/areas for amusement parks, zoos, aquariums, aquatic centers, auditoriums, arenas, lakes, arts&culturalfacilities, bandstands/orchestra, bathhouses, boathouses, clubhouses, community centers >3000sf, env. edu. Centers, equestrian, golf, greenhouses, museums, theme parks, water reclamation/riparian, wetlands www.marana.com Construction Sales Tax Credits Example -SFR International Code Council Costing 2000 sf@ $107.08/sf+ 400 sf@ 40.62/sf= $230,408 – State Formula for Construction Sales Tax 65% of cost, takes into account all taxes, normal – sales tax, and construction sales tax in formula Net sales tax to Town is 2.44% = $5,621.49 – State Law requires amount above normal sales tax to be credited Normal sales tax 2%, Construction sales tax 4% – Therefore 50% of construction tax credited = $2,811 – Ultimately, the credit may be split between the parks and road fees www.marana.com Highway User Revenue Fund Credits Current draft reports state that traditionally no HURF is used for capital construction Reports from previous 3 fiscal years validate that no HURF monies has been spent on capital construction Current draft reports credit 10% of HURF revenue for 20 years per new residence ($332 for a single family residence) www.marana.com Changes/updates Error in current build-out of San Lucas development to be corrected Mobile home category to be eliminated Retail category to be expanded Industrial category to be condensed Construction tax credits reviewed in greater detail/expanded HURF credit reviewed Reduction in the size of Crossroads park Legacy roads will be addressed using outstanding credit balances/debt service www.marana.com Open Discussion www.marana.com www.marana.com