HomeMy WebLinkAboutResolution 2014-044 Declaring a Public Record Town Code Title 1711 Title 17. Land Development=
CHAPTER 17 -17. DEVELOPMENT IMPACT FEE ORDINANCE
Sections:
17 -17 -1
Title ............................................................. ..............................1
17 -17 -2
Legislative intent and purpose ............... ..............................1
17 -17 -3
Definitions ................................................ ............................... 2
17 -17 -4
Applicability ............................................. ............................... 8
17 -17 -5
Authority for development impact fees ..............................9
17 -17 -6
Administration of development impact fees ....................10
17 -17 -7
Land use assumptions ............................ .............................11
17 -17 -8
Infrastructure improvements plan ........ .............................11
17 -17 -9
Adoption and modification procedures ............................15
17 -17 -10
Timing for the renewal and updating of the
infrastructure improvements plan and the land use
assumptions.............................................. .............................16
17 -17 -11
Collection of development impact fees .............................17
17 -17 -12
Development impact fee credits and credit agreements. 20
17 -17 -13
Development agreements ..................... ............................... 24
17 -17 -14
Appeals ..................................................... .............................25
17 -17 -15
Refunds of development impact fees .... .............................26
17 -17 -16
Oversight of development impact fee program ...............28
17 -17 -1 Title
This chapter shall be known and may be cited as the "Marana
development impact fee ordinance."
17 -17 -2 Legislative intent and purpose
A. This chapter is adopted for the purpose of promoting the health,
safety and general welfare of the residents of the town by:
1. Requiring new development to pay its proportionate share of
the costs incurred by the town that are associated with
providing necessary public services to new development.
2. Setting forth standards and procedures for creating and
assessing development impact fees consistent with the
requirements of A.R.S. § 9- 463.05, including requirements
pursuant to A.R.S. § 9- 463.05, subsection K that, on or before
August 1, 2014, the town replace its development impact fees
that were adopted prior to January 1, 2012 with development
impact fees adopted pursuant to the requirements of A.R.S.
§ 9- 463.05 as amended by the state legislature in SB 1525,
fiftieth legislature, first regular session.
3. Providing for the temporary continuation of certain
development impact fees adopted prior to January 1, 2012 until
otherwise replaced pursuant to this chapter.
4. Setting forth procedures for administering the development
impact fee program, including mandatory offsets, credits, and
refunds of development impact fees. All development impact
fee assessments, offsets, credits, or refunds shall be
administered in accordance with the provisions of this chapter.
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B. This chapter shall not affect the towns zoning authority or its
authority to adopt or amend its general plan, provided that
planning and zoning activities by the town may require
amendments to development impact fees as provided in section
17 -17 -7 below.
17 -17 -3 Definitions
When used in this chapter, the terms listed below shall have the
following meanings unless the context requires otherwise. Singular
terms shall include their plural.
1. Age restricted multi - family residential land use subcategory:
Development where more than a single residential unit occurs
on a single lot in a community that restricts residents to 55-
years or older with no one in the household under age 18. See
ITE land use category 252.
2. Age restricted single family residential land use subcategory:
Detached and attached residential structures characteristic of a
primary residence, even if the residence is subsequently rented,
in a community that restricts residents to 55 -years or older with
no one in the household under age 18. See ITE land use
category 251.
3. Applicant: A person who applies to the town for a building
permit.
4. Appurtenance: Any fixed machinery or equipment, structure
or other fixture, including integrated hardware, software or
other components, associated with a capital facility that are
necessary or convenient to the operation, use, or maintenance
of a capital facility, but excluding replacement of the same after
initial installation.
5. Aquatic center: A facility primarily designed to host non -
recreational competitive functions generally occurring within
water, including, but not limited to, water polo games,
swimming meets, and diving events. The facility may be
indoors, outdoors, or any combination thereof, and includes all
necessary supporting amenities, including but not limited to,
locker rooms, offices, snack bars, bleacher seating, and shade
structures.
6. Building permit: Any permit issued by the town that
authorizes vertical construction, increases square footage,
authorizes changes to land use, or provides for the addition of
a residential or non - residential point of demand to a water or
wastewater system.
7. Capital facility: An asset having a useful life of three or more
years that is a component of one or more categories of
necessary public service provided by the town. A capital
facility may include any associated purchase of real property,
architectural and engineering services leading to the design
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and construction of buildings and facilities, improvements to
existing facilities, improvements to or expansions of existing
facilities, and associated financing and professional services.
"Infrastructure" shall have the same meaning as "capital
facilities."
8. Category of necessary public service: A category of necessary
public services for which the town is authorized to assess
development impact fees, as further defined in subsection 17-
17-8A.1 below.
9. Category of development: A specific land use category against
which a development impact fee is calculated and assessed.
The town assesses development impact fees against residential,
retail, high traffic retail, industrial, general office, medical
facilities, institutional, and recreational land use categories,
each of which is defined in this list of definitions.
10. Congregate care land use subcategory: Group housing with a
central eating facility, smaller rooms, and care for its tenants.
This includes nursing homes, group homes, prisons, and
similar uses as determined by the town engineer. See ITE land
use categories 253, 254, 255, 571, and 620.
11. Credit: A reduction in an assessed development impact fee
resulting from developer contributions to, payments for,
construction of, or dedications for capital facilities included in
an infrastructure improvements plan pursuant to section 17 -17-
12 below (or as otherwise permitted by this chapter).
12. Credit agreement: A written agreement between the town and
a developer or landowner that allocates credits to the
development pursuant to section 17 -17 -12 below. A credit
agreement may be included as part of a development
agreement pursuant to section 17 -17 -13 below.
13. Credit allocation: A term used to describe when credits are
distributed to a particular development or parcel of land after
execution of a credit agreement, but are not yet issued.
14. Credit issuance: A term used to describe when the amount of
an assessed development impact fee attributable to a particular
development or parcel of land is reduced by applying a credit
allocation.
15. Developer: An individual, group of individuals, partnership,
corporation, limited liability company, association, municipal
corporation, state agency, or other person or entity undertaking
land development activity, and their respective successors and
assigns.
16. Development agreement: An agreement prepared in
accordance with the requirements of section 17 -17 -13 below,
A.R.S. § 9- 500.05, and any applicable requirements of the town
code.
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17. Direct benefit: A benefit to an EDU resulting from a capital
facility that: (a) addresses the need for a necessary public
service created in whole or in part by the EDU; and that
(b) meets either of the following criteria: (i) the capital facility is
located in the immediate area of the EDU and is needed in the
immediate area of the EDU to maintain the level of service; or
(ii) the capital facility substitutes for, or eliminates the need for
a capital facility that would have otherwise have been needed
in the immediate area of the EDU to maintain the town's level
of service.
18. Dwelling unit: A house, apartment, mobile home or trailer,
group of rooms, or single room occupied as separate living
quarters or, if vacant, intended for occupancy as separate living
quarters.
19. Equipment: Machinery, tools, materials, and other supplies, not
including vehicles, that a capital facility needs to provide the
level of service specified by the infrastructure improvement
plan, but excluding replacement of the same after initial
development of the capital facility.
20. Equivalent demand unit (EDU): A unit of development within
a particular category of development, defined in terms of a
standardized measure of the demand that a unit of
development in that category of development generates for
necessary public services in relation to the demand generated
by a detached single- family dwelling unit. For all categories of
necessary public services, the EDU factor for a detached single-
family dwelling unit is one, while the EDU factor for a unit of
development within another category of development is
represented as a ratio of the demand for each category of
necessary public services typically generated by that unit as
compared to the demand for such services typically generated
by a detached single- family dwelling unit. An EDU shall be a
"service unit" for purposes of A.R.S. § 9- 463.05 (T) (10).
21. Excluded library facility: Library facilities for which
development impact fees may not be charged pursuant to
A.R.S. § 9- 463.05, including that portion of any library facility
that exceeds 10,000 square feet, and equipment, vehicles or
appurtenances associated with library operations.
22. Excluded park facility: Park and recreational facilities for
which development impact fees may not be charged pursuant
to A.R.S. § 9- 463.05, including amusement parks, aquariums,
aquatic centers, auditoriums, arenas, arts and cultural facilities,
bandstand and orchestra facilities, bathhouses, boathouses,
clubhouses, community centers greater than three thousand
square feet in floor area, environmental education centers,
equestrian facilities, golf course facilities, greenhouses, lakes,
museums, theme parks, water reclamation or riparian areas,
wetlands, or zoo facilities.
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23. Fee report: A written report developed pursuant to section 17-
17-12 below that identifies the methodology for calculating the
amount of each development impact fee, explains the
relationship between the development impact fee to be
assessed and the plan -based cost per EDU calculated in the
infrastructure improvements plan, and which meets other
requirements set forth in A.R.S. § 9- 463.05.
24. Financing or debt: Any debt, bond, note, loan, interfund loan,
fund transfer, or other debt service obligation used to finance
the development or expansion of a capital facility.
25. General office land use category: Office uses, office parks,
corporate headquarters, governmental offices, business parks,
research and development parks, and similar uses as
determined by the town engineer. Doctor, dentist, and
veterinary offices fall under this category instead of medical
facilities. See ITE land use categories 700 -799.
26. General plan: The most recently adopted Marana general plan.
27. Gross impact fee: The total development impact fee to be
assessed against a subject development on a per unit basis,
prior to subtraction of any credits.
28. High traffic retail land use category: Fast food restaurants,
service stations, convenience stores, high- turnover restaurants,
and similar uses as determined by the town engineer. See ITE
land use categories 900 -999.
29. Hotel/ motel land use subcategory: Temporary lodging
facilities such as hotels, motels, time shares/ fractional shares,
recreational vehicle parks, and similar uses as determined by
the town engineer. See ITE land use categories 310 and 320.
30. Industrial land use category: Light and heavy industry,
industrial parks, manufacturing, warehousing, mini - storage,
utilities, and similar uses as determined by the town engineer.
See ITE land use categories 100 -199.
31. Infrastructure improvements plan: A document or series of
documents that meet the requirements set forth in A.R.S.
§ 9- 463.05, including those adopted pursuant to section 17 -17 -9
below to cover any category or combination of categories of
necessary public services.
32. Institutional land use category: Churches, schools, colleges,
universities, cemeteries, libraries, fraternal lodges, day care
centers, and similar uses as determined by the town engineer.
See ITE Land Use Categories 500 -599.
33. Interim fee schedule: The Marana development impact fee
schedule as established prior to January 1, 2012 in accordance
with then - applicable law, and which shall expire not later than
August 1, 2014.
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34. ITE land use categories: Land use categories found in the
Institute of Transportation Engineers' Trip Generation Manual
(9th Edition, 2012).
35. Land use assumptions: Projections of changes in land uses,
densities, intensities and population for a service area over a
period of at least ten years as specified in section 17 -17 -7 below.
36. Level of service: A quantitative and /or qualitative measure of a
necessary public service that is to be provided by the town to
development in a particular service area, defined in terms of
the relationship between service capacity and service demand,
accessibility, response times, comfort or convenience of use, or
other similar measures or combinations of measures. Level of
service may be measured differently for different categories of
necessary public services, as identified in the applicable
infrastructure improvements plan.
37. Medical facilities land use category: Hospitals, urgent care
facilities, clinics, veterinary hospitals and clinics, and similar
uses as determined by the town engineer. See ITE land use
categories 600 -699.
38. Multifamily residential land use subcategory: Predominantly
rental multi -unit development such as apartments, student
housing, mobile home parks, and similar uses as determined
by the town engineer. See also ITE land use category 220.
39. Necessary public services: Has the meaning prescribed in
A.R.S. 9- 463.05 (T) (5).
40. Offset: An amount which is subtracted from the overall costs of
providing necessary public services to account for those capital
components of infrastructure or associated debt that have been
or will be paid for by a development through taxes, fees (except
for development impact fees), and other revenue sources, as
determined by the town pursuant to section 17 -17 -8 below.
41. Parks and recreational facilities: A category of necessary public
services including but not limited to parks, swimming pools
and related facilities and equipment located on real property
not larger than 30 acres in area, as well as park facilities larger
than 30 acres where such facilities provide a direct benefit.
Parks and recreational facilities do not include excluded park
facilities, although parks and recreational facilities may
contain, provide access to, or otherwise support an excluded
park facility.
42. Plan -based cost per EDU: The total future capital costs listed in
the infrastructure improvements plan for a category of
necessary public services divided by the total new equivalent
demand units projected in a particular service area for that
category of necessary public services over the same time
period.
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43. Qualified professional: A professional engineer, surveyor,
financial analyst, or planner providing services within the
scope of his or her license, education or experience.
44. Recreational land use category: Parks, camp grounds, golf
courses, bowling alleys, movie theaters, racetracks, skating
rinks, tennis courts, health /fitness clubs, community
recreational centers, and similar uses as determined by the
town engineer. See ITE land use categories 400 -499.
45. Residential land use category: Includes all uses in the single
family residential, multifamily, hotel/ motel, congregate care,
age restricted single family residential, and age restricted
multifamily residential land use subcategories.
46. Retail land use category: Land uses providing retail sales,
discount sales, and similar uses as determined by the town
engineer. See ITE land use categories 800 -899.
47. Service area: Any specified area within the boundaries of the
town within which: (a) the town will provide a category of
necessary public services to development at a planned level of
service; and (b) within which (i) a substantial nexus exists
between the capital facilities to be provided and the
development to be served, or (ii) in the case of a park facility
larger than 30 acres, a direct benefit exists between the park
facilities and the development to be served, each as prescribed
in the infrastructure improvements plan. Some or all of the
capital facilities providing service to a service area may be
physically located outside of that service area provided that the
required substantial nexus or direct benefit is demonstrated to
exist.
48. Single family residential land use subcategory: Detached and
attached residential structures characteristic of a primary
residence, even if the residence is subsequently rented. Mobile
homes and manufactured homes on individual parcels, and
duplexes, triplexes, condominiums, and townhomes are
assessed at the single family residential land use rate. See also
ITE land use category 210.
49. Street facilities: A category of necessary public services
including arterial or collector streets or roads that have been
designated on an officially adopted plan of the town, traffic
signals and rights -of -way and improvements thereon.
50. Storm drainage: A category of necessary public services
including but not limited to storm sewers constructed in sizes
needed to provide for stormwater management for areas
beyond major street projects and stormwater
detention/ retention basins, tanks, pump stations and channels
necessary to provide for proper stormwater management,
including any appurtenances for those facilities.
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51. Subject development: A land area linked by a unified plan of
development, which must be contiguous unless the land area is
part of a development agreement executed in accordance with
section 17 -17 -13 below.
52. Substantial nexus: A substantial nexus exists where the
demand for necessary public services that will be generated by
an EDU can be reasonably quantified in terms of the burden it
will impose on the available capacity of existing capital
facilities, the need it will create for new or expanded capital
facilities, and/or the benefit to the development from those
capital facilities.
53. Swimming pool: A public facility primarily designed and/or
utilized for recreational non - competitive functions generally
occurring within water, including, but not limited to,
swimming classes, open public swimming sessions, and
recreational league swimming/ diving events. The facility may
be indoors, outdoors, or any combination thereof, and includes
all necessary supporting amenities.
54. Useful life: The period of time in which an asset can reasonably
be expected to be used under normal conditions, whether or
not the asset will continue to be owned and operated by the
town over the entirety of such period.
55. Vehicle: Any device, structure, or conveyance utilized for
transportation in the course of providing a particular category
of necessary public services at a specified level of service,
excluding helicopters and other aircraft.
56. Wastewater: A category of necessary public services including
but not limited to sewers, lift stations, reclamation plants,
wastewater treatment plants, and all other facilities for the
collection, interception, transportation, treatment and disposal
of wastewater, and any appurtenances for those facilities.
57. Water: A category of necessary public services including but
not limited to those facilities necessary to provide for water
services to development, including the acquisition, supply,
transportation, treatment, purification and distribution of
water, and any appurtenances to those facilities.
17 -17-4 Applicability
A. Except as otherwise provided in this chapter, this chapter shall
apply to all new development within any service area, except for
the development of any town facility.
B. The provisions of this chapter shall apply to all of the territory
within the corporate limits of the town and within the town's
water and wastewater service areas.
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C. The town manager or the town manager's designee is authorized
to make determinations regarding the application, administration
and enforcement of the provisions of this chapter.
17 -17 -5 Authority for development impact fees
A. Fee report and implementation. The town may assess and collect a
development impact fee for costs of necessary public services,
including all professional services required for the preparation or
revision of an infrastructure improvements plan, fee report,
development impact fee, and required reports or audits conducted
pursuant to this chapter. Development impact fees shall be subject
to the following requirements:
1. The town shall develop and adopt a fee report that analyzes
and defines the development impact fees to be charged in each
service area for each capital facility category, based on the
infrastructure improvements plan and the plan -based cost per
EDU calculated pursuant to section 17- 17 -8A.13 below.
2. Development impact fees shall be assessed against all new
commercial, residential, and industrial developments,
provided that the town may assess different amounts of
development impact fees against specific categories of
development based on the actual burdens and costs that are
associated with providing necessary public services to that
category of development. No development impact fee shall
exceed the plan -based cost per EDU for any category of
development.
3. No development impact fees shall be charged, or credits
issued, for any capital facility that does not fall within one of
the categories of necessary public services for which
development impact fees may be assessed as identified in
section 17- 17 -8A.1 below.
4. Costs for necessary public services made necessary by new
development shall be based on the same level of service
provided to existing development in the same service area.
Development impact fees may not be used to provide a higher
level of service to existing development or to meet stricter
safety, efficiency, environmental, or other regulatory standards
to the extent that these are applied to existing capital facilities
that are serving existing development.
5. Development impact fees may not be used to pay the town's
administrative, maintenance, or other operating costs.
6. Projected interest charges and financing costs can only be
included in development impact fees to the extent they
represent principal and/or interest on the portion of any
financing or debt used to finance the construction or expansion
of a capital facility identified in the infrastructure
improvements plan.
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7. Except for any fees included on interim fee schedules, all
development impact fees charged by the town must be
included in a "fee schedule" prepared pursuant to this chapter
and included in the fee report.
8. All development impact fees shall meet the requirements of
A.R.S. § 9- 463.05.
B. Costs per EDU. The fee report shall summarize the costs of capital
facilities necessary to serve new development on a per EDU basis
as defined and calculated in the infrastructure improvements plan,
including all required offsets, and shall recommend a development
impact fee structure for adoption by the town. The actual impact
fees to be assessed shall be disclosed and adopted in the form of
impact fee schedules.
C. Carry -over of previously- established development impact fees and
grandf athered facilities. Notwithstanding the requirements of this
chapter, certain development impact fees adopted by the town
prior to the effective date of this chapter shall continue in effect as
follows:
1. The lower Santa Cruz levee fee adopted by Marana ordinance
number 99.02 shall remain in effect until the full $1,875,000
indebtedness covered by the fee is paid.
2. The Marana south transportation development impact fee
adopted by Marana ordinance number 2001.02 and modified
by Marana ordinance number 2006.12 shall remain in effect
until the full Twin Peaks/1-10 Interchange indebtedness is
paid.
3. Defined terms in any previously established fee schedule shall
be interpreted according to the ordinance in effect at the time of
their adoption.
17 -17 -6 Administration of development impact fees
A. Separate accounts. Development impact fees collected pursuant to
this chapter shall be placed in separate, interest - bearing accounts
for each capital facility category within each service area.
B. Limitations on use of fees. Development impact fees and any
interest on them collected pursuant to this chapter shall be spent to
provide capital facilities associated with the same category of
necessary public services in the same service area for which they
were collected, including costs of financing or debt used by the
town to finance those capital facilities and other costs authorized
by this chapter that are included in the infrastructure
improvements plan.
C. Time limit. Development impact fees collected after July 31, 2014
shall be used within ten years of the date upon which they were
collected for all categories of necessary public services except for
water and wastewater facilities. For water facilities or wastewater
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facilities collected after July 31, 2014, development impact fees
shall be used within 15 years of the date upon which they were
collected.
17 -17 -7 Land use assumptions
A. Consistency. The infrastructure improvements plan shall be
consistent with the town's current land use assumptions for each
service area and each category of necessary public services as
adopted by the town pursuant to A.R.S. § 463.05.
B. Reviewing the land use assumptions. Prior to the adoption or
amendment of an infrastructure improvements plan, the town
shall review and evaluate the land use assumptions on which the
infrastructure improvements plan is to be based to ensure that the
land use assumptions within each service area conform with the
general plan.
C. Evaluating necessary changes. If the land use assumptions upon
which an infrastructure improvements plan is based have not been
updated within the last five years, the town shall evaluate the land
use assumptions to determine whether changes are necessary. If,
after general evaluation, the town determines that the land use
assumptions are still valid, the town shall issue the report required
in section 17 -17 -10 below.
D. Required modifications to land use assumptions. If the town
determines that changes to the land use assumptions are necessary
in order to adopt or amend an infrastructure improvements plan, it
shall make such changes as necessary to the land use assumptions
prior to or in conjunction with the review and approval of the
infrastructure improvements plan pursuant to section 17 -17 -10
below.
17 -17 -8 Infrastructure improvements plan
A. Infrastructure improvements plan contents. The infrastructure
improvements plan shall be developed by qualified professionals
and may be based upon or incorporated within the town's capital
improvements plan. The infrastructure improvements plan shall:
1. Specify the categories of necessary public services for which
the town will impose a development impact fee, which may
include any or all of the following:
a. Water
b. Wastewater
c. Stormwater, drainage, and flood control
d. Street facilities
e. Parks
f. Police
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2. Define and provide a map of one or more service areas within
which the town will provide each category of necessary public
services for which development impact fees will be charged.
Each service area must be defined in a manner that
demonstrates a substantial nexus between the capital facilities
to be provided in the service area and the EDUs to be served by
those capital facilities. For parks larger than 30 acres, each
service area must be defined in a manner that demonstrates a
direct benefit between the capital facilities and the EDUs to be
served by those capital facilities. The town may cover more
than one category of capital facilities in the same service area
provided that there is an independent substantial nexus or
direct benefit, as applicable, between each category of
necessary public services and the EDUs to be served.
3. Identify and describe the land use assumptions upon which the
infrastructure improvements plan is based in each service area.
4. Analyze and identify the existing level of service provided by
the town to existing EDUs for each category of necessary public
services in each service area.
5. Identify the level of service to be provided by the town for each
category of necessary public services in each service area based
on the relevant land use assumptions and any established town
standards or policies related to required levels of service. If the
town provides the same category of necessary public services
in more than one service area, the infrastructure improvements
plan shall include a comparison of the levels of service to be
provided in each service area.
6. For each category of necessary public services, analyze and
identify the existing capacity of the capital facilities in each
service area, the utilization of those capital facilities by existing
EDUs, and the available excess capacity of those capital
facilities to serve new EDUs including any existing or planned
commitments or agreements for the usage of such capacity. The
infrastructure improvements plan shall additionally identify
any changes or upgrades to existing capital facilities that will
be needed to achieve or maintain the planned level of service to
existing EDUs, or to meet new safety, efficiency,
environmental, or other regulatory requirements for services
provided to existing EDUs.
7. Estimate the total number of existing and future EDUs within
each service area based on the town's land use assumptions
and projected new EDUs in each service area.
8. Based on the analysis in subparagraphs 17- 17 -8A.3 through 6
above, provide a summary table or tables describing the level
of service for each category of necessary public services by
relating the required capital facilities to EDUs in each service
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area, and identifying the applicable EDU factor associated with
each category of development.
9. For each category of necessary public services, analyze and
identify the projected utilization of any available excess
capacity in existing capital facilities, and all new or expanded
capital facilities that will be required to provide and maintain
the planned level of service in each service area as a result of
the new projected EDUs in that service area, for a period not to
exceed ten years. Nothing in this subsection shall prohibit the
town from additionally including in its infrastructure
improvements plan projected utilization of, or needs for,
capital facilities for a period longer than ten years, provided
that the costs of such capital facilities are excluded from the
calculation of the plan -based cost per EDU.
10. For each category of necessary public services, estimate the
total cost of any available excess capacity and/or new or
expanded capital facilities that will be required to serve new
EDUs, including costs of land acquisition, improvements,
engineering and architectural services, studies leading to
design, design, construction, financing, and administrative
costs, as well as projected costs of inflation. Such total costs
shall not include costs for ongoing operation and maintenance
of capital facilities, nor for replacement of capital facilities to
the extent that such replacement is necessary to serve existing
EDUs. If the infrastructure improvements plan includes
changes or upgrades to existing capital facilities that will be
needed to achieve or maintain the planned level of service to
existing EDUs, or to meet new regulatory requirements for
services provided to existing EDUs, such costs shall be
identified and distinguished in the infrastructure
improvements plan.
11. Forecast the revenues from taxes, fees, assessments or other
sources that will be available to fund the new or expanded
capital facilities identified in the infrastructure improvements
plan, which shall include estimated state - shared revenue,
highway users revenue, federal revenue, ad valorem property
taxes, construction contracting or similar excise taxes and the
capital recovery portion of utility fees attributable to
development based on the approved land use assumptions.
The infrastructure improvements plan shall additionally
estimate the time required to finance, construct and implement
the new or expanded capital facilities.
12. Calculate required offsets as follows:
a. From the forecasted revenues in subparagraph 17 -17 -8 A.
11, identify those sources of revenue that: (i) are
attributable to new development, and (ii) will contribute to
paying for the capital costs of necessary public services.
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b. For each source and amount of revenue identified pursuant
to subparagraph 17 -17 -8 A. 12. a, calculate the relative
contribution of each category of development to paying for
the capital costs of necessary public services in each service
area.
c. Based on the relative contributions identified pursuant to
subparagraph 17 -17 -8 A. 12. b, for each category of
necessary public services, calculate the total offset to be
provided to each category of development in each service
area.
d. For each category of necessary public services, convert the
total offset to be provided to each category of development
in each service area into an offset amount per EDU by
dividing the total offset for each category of development
by the number of EDUs associated with that category of
development.
e. Beginning August 1, 2014, for purposes of calculating the
required offset, if the town imposes a construction,
contracting, or similar excise tax rate in excess of the
percentage amount of the transaction privilege tax rate that
is imposed on the majority of other transaction privilege tax
classifications in the town, the entire excess portion of the
construction, contracting, or similar excise tax shall be
treated as a contribution to the capital costs of necessary
public services provided to new development unless the
excess portion is already utilized for such purpose pursuant
to this section.
f. In determining the amount of required offset for land
included in a community facilities district established
under A.R.S. title 48, chapter 4, article 6, the town shall take
into account any capital facilities provided by the district
that are included in the infrastructure improvements plan
and the capital costs paid by the district for such capital
facilities, and shall offset impact fees assessed within the
community facilities district proportionally.
13. Calculate the plan -based cost per EDU by:
a. Dividing the total projected costs to provide capital
facilities to new EDUs for each category of necessary public
services in each service area as determined pursuant to
subsection 17 -17 -8 A. 8 above into the number of new EDUs
projected for that service area over a period not to exceed
ten years, considering the specific EDU factors associated
with those EDUs for each category of necessary public
services.
b. Subtracting the required offset per EDU calculated
pursuant to subsection 17 -17 -8 A.12 above.
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B. Multiple plans. An infrastructure improvements plan adopted
pursuant to this section may address one or more of the town's
categories of necessary public services in any or all of the town's
service areas. Each capital facility shall be subject to no more than
one infrastructure improvements plan at any given time.
C. Reserved capacity. The town may reserve capacity in an
infrastructure improvements plan to serve one or more planned
future developments, including capacity reserved through a
development agreement pursuant to section 17 -17 -13 below. All
reservations of existing capacity must be disclosed in the
infrastructure improvements plan at the time it is adopted.
17 -17 -9 Adoption and modification procedures
A. Adopting or amending the infrastructure improvements plan. The
infrastructure improvements plan shall be adopted or amended
subject to the following procedures:
1. Major amendments to the infrastructure improvements plan.
Except as provided in subparagraph 17 -17 -9 A. 2 below, the
adoption or amendment of an infrastructure improvement plan
shall occur at one or more public hearings according to the
following schedule, and may occur concurrently with the
adoption of an update of the town's land use assumptions as
provided in section 17 -17 -7 above:
a. Sixty days before the first public hearing regarding a new
or updated infrastructure improvements plan, the town
shall provide public notice of the hearing and post the
infrastructure improvements plan and the underlying land
use assumptions on its website; the town shall additionally
make available to the public the documents used to prepare
the infrastructure improvements plan and underlying land
use assumptions and the amount of any proposed changes
to the plan -based cost per EDU.
b. The town shall conduct a public hearing on the
infrastructure improvements plan and underlying land use
assumptions at least 30 days, but no more than 60 days,
before approving or disapproving the infrastructure
improvements plan.
2. Minor amendments to the infrastructure improvements plan.
Notwithstanding the other requirements of this section, the
town may update the Infrastructure Improvements Plan
and /or its underlying Land Use Assumptions without a public
hearing if all of the following apply:
a. The changes in the infrastructure improvements plan
and /or the underlying land use assumptions will not add
any new category of necessary public services to any
service area.
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b. The changes in the infrastructure improvements plan
and/or the underlying land use assumptions will not
increase the level of service to be provided in any service
area.
c. Based on an analysis of the fee report and the town's
adopted development impact fee schedules, the changes in
the infrastructure improvements plan and/or the
underlying land use assumptions would not, individually
or cumulatively with other amendments undertaken
pursuant to this subsection, have caused a development
impact fee in any service area to have been increased by
more than 5% above the development impact fee that is
provided in the current development impact fee schedule.
d. At least 30 days prior to the date that the amendment
pursuant to this section is adopted, the town shall post the
proposed amendments on the town website.
B. Amendments to the fee report. Any adoption or amendment of a
fee report and fee schedule shall occur at one or more public
hearings according to the following schedule:
1. The first public hearing on the fee report must be held at least
30 days after the adoption or approval of and infrastructure
improvements plan as provided in subsection 17 -17 -9 A above.
The town must give at least 30 days' notice prior to the hearing,
provided that this notice may be given on the same day as the
approval or disapproval of the infrastructure improvements
plan.
2. The town shall make the infrastructure improvements plan and
underlying land use assumptions available to the public on the
town's website 30 days prior to the public hearing described in
subparagraph 17 -17 -9 B.1 above.
3. The fee report may be adopted by the town no sooner than 30
days, and no later than 60 days, after the hearing described in
subparagraph 17 -17 -9 B.1 above.
4. The development fee schedules in the fee report adopted
pursuant to this subsection shall become effective 75 days after
adoption of the fee report by the town.
17 -17 -10 Timing for the renewal and updating of the infrastructure
improvements plan and the land use assumptions
A. Renewing the infrastructure improvements plan. Except as
provided in subparagraph 17 -17 -10 B below, not later than every
five years the town shall update the applicable infrastructure
improvements plan and fee report related to each category of
necessary public services pursuant to section 17 -17 -9 above. Such
five -year period shall be calculated from the date of the adoption
of the infrastructure improvements plan or the date of the
adoption of the fee report, whichever occurs later.
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B. Determination of no changes. Notwithstanding subparagraph 17-
17-10 A above, if the town determines that no changes to an
infrastructure improvements plan, underlying land use
assumptions, or fee report are needed, the town may elect to
continue the existing infrastructure improvements plan and fee
report without amendment by providing notice as follows:
1. Notice of the determination shall be published at least 180 days
prior to the end of the five -year period described in
subparagraph 17 -17 -10 A above.
2. The notice shall identify the infrastructure improvements plan
and fee report that shall continue in force without amendment.
3. The notice shall provide a map and description of the service
area covered by the infrastructure improvements plan and fee
report.
4. The notice shall identify an address to which any resident of
the town may submit, within 60 days, a written request that the
town update the infrastructure improvements plan, underlying
land use assumptions, and/or fee report and the reasons and
basis for the request.
C. Response to comments. The town shall consider and respond
within 30 days to any timely requests submitted pursuant to
subparagraph 17 -17 -10 B. 4 above.
17 -17 -11 Collection of development impact fees
A. Collection. Development impact fees shall be calculated and
collected prior to issuance of permission to commence
development; specifically:
1. Unless otherwise specified pursuant to a development
agreement adopted pursuant to section 17 -17 -13 below,
development impact fees shall be paid prior to issuance of a
building permit according to the current development impact
fee schedule for the applicable service area as adopted
pursuant to this chapter, or according to any other
development impact fee schedule as authorized in this chapter.
2. If a building permit is not required for the development, but
water or wastewater connections are required, any and all
development impact fees due shall be paid at the time the
water service connection is purchased. If only a wastewater
connection is required, the development impact fees shall be
paid prior to approval of a connection to the sewer system.
Wastewater development impact fees shall be assessed if a
development connects to the public sewer, or as determined by
the town utilities director, is capable of discharging sewage to a
town public sewer.
3. If the development is located in a service area with a
stormwater, drainage, and flood control development impact
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fee, and neither a building permit, water, or sewer service
connection is required, the storm drainage development impact
fee due shall be paid at the time a civil or site permit is issued
for the development.
4. No building permit, water or sewer connection, or certificate of
occupancy shall be issued if a development impact fee is not
paid as directed in the previous paragraphs.
5. If the building permit is for a change in the type of building
use, an increase in square footage, a change to land use, or an
addition to a residential or non - residential point of demand to
the water or wastewater system, the development impact fee
shall be assessed on the additional service units resulting from
the expansion or change, and following the development
impact fee schedule applicable to any new use type.
6. For issued permits that expire or are voided, and the
development impact fees paid for such development have not
been refunded, the permittee shall pay the difference between
any development impact fees paid at the time the permit was
issued and those in the fee schedule at the time the permit is
reissued or renewed.
B. Exceptions. Development impact fees shall not be owed under
either of the following conditions:
1. Development impact fees have been paid for the development
and the permit that triggered the collection of the development
impact fees has not expired or been voided.
2. The approval that triggers the collection of development
impact fees involves modifications to existing residential or
non - residential development that do not: (a) add new EDUs,
(b) increase the impact of existing EDUs on existing or future
capital facilities, or (c) change the land -use type of the existing
development to a different category of development for which
a higher development impact fee would have been due. To the
extent that any modification does not meet the requirements of
this paragraph, the development impact fee due shall be the
difference between the development impact fee that was or
would have been due on the existing development and the
development impact fee that is due on the development as
modified.
C. Temporary exemptions from development impact fee schedules.
New developments in the town shall be temporarily exempt from
increases in development impact fees that result from the adoption
of new or modified development impact fee schedules as follows:
1. Residential uses (other than multifamily) . On or after the day
that the first building permit is issued for a residential
development (other than multifamily), the town shall, at the
permittee's request, provide the permittee with an applicable
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development impact fee schedule that shall be in force for a
period of 24 months beginning on the day that the first
building permit is issued, and which shall expire at the end of
the first business day of the 25th month after the first building
permit is issued. During the effective period of the applicable
development impact fee schedule, any building permit issued
for the same residential development shall not be subject to any
new or modified development impact fee schedule.
2. All other uses. On or after the town's approval of a
development plan or subdivision plat for a retail, high traffic
retail, industrial, general office, medical facilities, institutional,
recreational, or multifamily development, the town shall
provide an applicable development impact fee schedule that
shall be in force for a period of 24 months beginning on the day
the development plan or subdivision plat was approved, and
which shall expire at the end of the first business day of the
25th month after the development plan or subdivision plat was
approved. During the effective period of the applicable
development impact fee schedule, any building permit issued
for the same development shall not be subject to any new or
modified development impact fee schedule.
3. Changes to development plans and subdivision plats. During
the 24 -month period referred to in subsection 17 -17 -11 C.1 or 2
above, if changes are made to a development's final
development plan or subdivision plat that will increase the
number of service units, the town may assess any new or
modified development impact fees against the additional
service units. If the town reduces the amount of an applicable
development impact fee during the 24 -month period referred
to in subsection 17 -17 -11 C. 1 or 2 above, the town shall assess
the lower development impact fee.
D. Option to pursue special fee determination. Where a development
is of a type that does not closely fit within a particular category of
development appearing on an adopted development impact fee
schedule, or where a development has unique characteristics such
that the actual burdens and costs associated with providing
necessary public services to that development will differ
substantially from that associated with other developments in a
specified category of development, the town may require the
applicant to provide the town engineer with an alternative
development impact fee analysis. Based on a projection of the
actual burdens and costs that will be associated with the
development, the alternative development impact fee analysis may
propose a unique fee for the development based on the application
of an appropriate EDU factor to the applicable plan -based cost per
EDU, or may propose that the development be covered under the
development impact fee schedule governing a different and more
analogous category of development. The town engineer shall
r t a imp act f ee a a s h a ll m ake a
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determination as to the development impact fee to be charged. The
decision shall be appealable pursuant to section 17 -17 -14 below.
The town engineer may require the applicant to pay an
administrative fee to cover the actual costs of reviewing the special
fee determination application.
17 -17 -12 Development impact fee credits and credit agreements
A. Eli of capital facility. All development impact fee credits
must meet the following requirements:
1. One of the following is true:
a. The capital facility, or the financial contribution toward a
capital facility that will be provided by the developer and
for which a credit will be issued, must be identified in an
adopted Infrastructure improvements plan and fee report
as a capital facility for which a development impact fee was
assessed; or
b. The applicant must demonstrate to the satisfaction of the
town that, given the class and type of improvement, the
subject capital facility should have been included in the
infrastructure improvements plan in lieu of a different
capital facility that was included in the infrastructure
improvements plan and for which a development impact
fee was assessed. If the subject capital facility is determined
to be eligible for a credit in this manner, the town shall
amend the infrastructure improvements plan to (i) include
the subject replacement facility and (ii) delete the capital
facility that will be replaced.
2. Credits shall not be available for any infrastructure provided
by a developer if the cost of the infrastructure will be repaid to
the developer by the town through another agreement or
mechanism. To the extent that the developer will be paid or
reimbursed by the town for any contribution, payment,
construction, or dedication from any town funding source
including an agreement to reimburse the developer with future
collected development impact fees pursuant to section 17 -17 -13
below, any credits claimed by the developer shall be (a)
deducted from any amounts to be paid or reimbursed by the
town or (b) reduced by the amount of the payment or
reimbursement.
B. Eligibility of subject development. To be eligible for a credit, the
subject development must be located within the service area of the
eligible capital facility.
C. Calculation of credits. Credits will be based on that portion of the
costs for an eligible capital facility identified in the adopted
infrastructure improvements plan for which a development fee
was assessed pursuant to the fee report. If the gross impact fee for
a particular category of necessary public service is adopted at an
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amount lower than the plan -based cost per EDU, the amount of
any credit shall be reduced in proportion to the difference between
the plan -based cost per EDU and the gross impact fee adopted. A
credit shall not exceed the actual costs the applicant incurred in
providing the eligible capital facility.
D. Allocation of credits. Before credits can be issued to a subject
development (or portion of it), credits must be allocated to that
development as follows:
1. The developer and the town must execute a credit agreement
including all of the following:
a. The total amount of the credits resulting from provision of
an eligible capital facility.
b. The estimated number of EDUs to be served within the
subject development.
c. The method by which the credit values will be distributed
within the subject development.
2. It is the responsibility of the developer to request allocation of
development impact fee credits through an application for a
credit agreement (which may be part of a development
agreement entered into pursuant to section 17 -17 -13 below) .
3. If a building permit is issued or a water/ sewer connection is
purchased, and a development impact fee is paid prior to
execution of a credit agreement for the subject development, no
credits may be allocated retroactively to that permit or
connection. Credits may be allocated to any remaining permits
for the subject development in accordance with this chapter.
4. If the entity that provides an eligible capital facility sells or
relinquishes a development (or portion of it) that it owns or
controls prior to execution of a credit agreement or
development agreement, credits resulting from the eligible
capital facility will only be allocated to the development if the
entity legally assigns such rights and responsibilities to its
successor in interest for the subject development.
5. If multiple entities jointly provide an eligible capital facility,
both entities must enter into a single credit agreement with the
town, and any request for the allocation of credit within the
subject development must be made jointly by the entities that
provided the eligible capital facility.
6. Credits may only be reallocated from or within a subject
development with the town's approval of an amendment to an
executed credit agreement, subject to the following conditions:
a. The entity that executed the original agreement with the
town, or its legal successor in interest and the entity that
currently controls the subject development are parties to
the request for reallocation.
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b. The reallocation proposal does not change the value of any
credits already issued for the subject development.
7. A credit agreement may authorize the allocation of credits to a
non - contiguous parcel only if all of the following conditions
are met:
a. The entity that executed the original agreement with the
town or its legal successor in interest, the entity that
currently controls the subject development, and the entity
that controls the non - contiguous parcel are parties to the
request for reallocation.
b. The reallocation proposal does not change the value of any
credits already issued for the subject development.
c. The non - contiguous parcel is in the same service area as
that served by the eligible capital facility.
d. The non - contiguous parcel receives a necessary public
service from the eligible capital facility.
e. The credit agreement specifically states the value of the
credits to be allocated to each parcel and/or EDU, or
establishes a mechanism for future determination of the
value of the credits.
f. The credit agreement does not involve the transfer of
credits to or from any property subject to a development
agreement.
E. Credit agreement. Credits shall only be issued pursuant to a credit
agreement that conforms to the requirements set forth in
paragraph 17- 17 -12D above. The town manager or authorized
designee is authorized by this chapter to enter into a credit
agreement with the controlling entity of a subject development,
subject to the following:
1. The developer requesting the credit agreement shall provide all
information requested by the town to allow it to determine the
value of the credit to be applied.
2. An application for a credit agreement shall be submitted to the
town by the developer within one year of the date on which
ownership or control of the capital facility passes to the town.
3. The developer shall submit a draft credit agreement to the
town manager or authorized designee for review in the form
provided to the applicant by the town. The draft credit
agreement shall include, at a minimum, all of the following
information and supporting documentation:
a. A legal description and map depicting the location of the
subject development for which the credits are being
applied. The map shall depict the location of the capital
facilities that have been or will be provided.
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b. An estimate of the total EDUs that will be developed within
the subject development depicted on the map and
described in the legal description.
c. A list of the capital facilities, associated physical attributes,
and the related costs as stated in the infrastructure
improvements plan.
d. Documentation showing the date of acceptance by the
town, if the capital facilities have already been provided.
e. The total amount of the credits to be applied within the
subject development and the calculations leading to the
total amount of the credits.
f. The credits to be applied to each EDU within the subject
development for each category of necessary public services.
4. The town's determination of the credits to be allocated is final.
5. Upon execution of the credit agreement by the town and the
applicant, credits shall be deemed allocated to the subject
development.
6. Any amendment to a previously approved credit agreement
must be initiated within two years of the town's final
acceptance of the eligible capital facility for which the
amendment is requested.
7. Any credit agreement approved as part of a development
agreement shall be amended in accordance with the terms of
the development agreement and section 17 -17 -13 below.
F. Issuance of credits. Credits allocated pursuant to subparagraph 17-
17-12D above may be issued and applied toward the gross impact
fees due from a development, subject to the following conditions:
1. Credits issued for an eligible capital facility may only be
applied to the development impact fee due for the applicable
category of necessary public services, and may not be applied
to any fee due for another category of necessary public
services.
2. Credits shall only be issued when the eligible capital facility
from which the credits were derived has been accepted by the
town or when adequate security for the completion of the
eligible capital facility has been provided in accordance with all
terms of an executed development agreement.
3. Where credits have been issued pursuant to subparagraph 17-
17-12 F. 2 above, an impact fee due at the time a building
permit is issued shall be reduced by the credits stated in or
calculated from the executed credit agreement. Where credits
have not yet been issued, the gross impact fee shall be paid in
full, and a refund of the credits shall be due when the
developer demonstrates compliance with subparagraph 17 -17-
12 F. 2 above in a written request to the town.
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4. Credits, once issued, may not be rescinded or reallocated to
another permit or parcel, except that credits may be released
for reuse on the same subject development if a building permit
for which the credits were issued has expired or been voided
and is otherwise eligible for a refund under subparagraph 17-
17-15 A. 2. a.
5. Notwithstanding the other provisions of this section 17- 17 -12,
credits issued prior to January 1, 2012 may only be used for the
subject development for which they were issued. The credits
may be transferred to a new owner of all or part of the subject
development in proportion to the percentage of ownership in
the subject development to be held by the new owner.
17 -17 -13 Development agreements
A. General. Development agreements containing provisions
regarding development impact fees, development impact fee
credits, and /or disbursement of revenues from development
impact fee accounts shall comply with the requirements of this
section.
B. Development agreement required. A development agreement is
required to authorize any of the following:
1. To issue credits prior to the town's acceptance of an eligible
capital facility.
2. To allocate credits to a parcel that is not contiguous with the
subject development and that does not meet the requirements
of subparagraph 17- 17 -12D.7 above.
3. To reimburse the developer of an eligible capital facility using
funds from development impact fee accounts.
4. To allocate different credit amounts per EDU to different
parcels within a subject development.
5. For a single family residential dwelling unit, to allow
development impact fees to be paid at a later time than the
issuance of a building permit as provided in subparagraph 17-
17-13 H below.
C. General requirements. All development agreements shall be
prepared and executed in accordance with A.R.S. § 9- 500.05 and
any applicable requirements of the town code. Except where
specifically modified by this section, all provisions of section 17 -17-
12 shall apply to any credit agreement that is authorized as part of
a development agreement.
D. Early issuance of credits. A development agreement may authorize
the issuance of credits prior to acceptance of an eligible capital
facility by the town when the development agreement specifically
states the form and value of the security (i.e. bond, letter of credit,
etc.) to be provided to the town prior to issuance of any credits.
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The town shall determine the acceptable form and value of the
security to be provided.
E. Non - contiguous allocation of credits. A development agreement
may authorize the allocation of credits to a non - contiguous parcel
only if all of the following conditions are met:
1. The non - contiguous parcel is in the same service area as that
served by the eligible capital facility.
2. The non - contiguous parcel receives a necessary public service
from the eligible capital facility.
3. The development agreement specifically states the value of the
credits to be allocated to each parcel and/or EDU, or
establishes a mechanism for future determination of the credits.
F. Uneven allocation of credits. The development agreement must
specify how credits will be allocated amongst different parcels on a
per -EDU basis, if the credits are not to be allocated evenly. If the
development agreement is silent on this topic, all credits will be
allocated evenly amongst all parcels on a per -EDU basis.
G. Use of reimbursements. Funds reimbursed to developers from
impact fee accounts for construction of an eligible capital facility
must be utilized in accordance with applicable law for the use of
town funds in construction or acquisition of capital facilities,
including A.R.S. § 34 -201, et seq.
H. Deferral of fees. A development agreement may provide for the
deferral of payment of development impact fees for a residential
development beyond the issuance of a building permit; provided
that a development impact fee may not be paid later than 15 days
after the issuance of the certificate of occupancy for that dwelling
unit. The development agreement shall provide for the value of
any deferred development impact fees to be supported by
appropriate security, including a surety bond, letter of credit, or
cash bond.
I. Waiver of fees. If the town agrees to waive any development
impact fees assessed on development in a development agreement,
the town shall reimburse the appropriate development impact fee
account for the amount that was waived.
J. No obligation. Nothing in this section obligates the town to enter
into any development agreement or to authorize any type of credit
agreement permitted by this section.
17 -17 -14 Appeals
A. General. A development impact fee determination by town staff
may be appealed in accordance with the procedures set forth in
this section.
B. Limited scope. An appeal shall be limited to disputes regarding the
calculation of the development impact fees for a specific
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development and /or permit and calculation of EDU's for the
development.
C. Form of appeal. An appeal shall be initiated in a format prescribed
by the town, and shall be submitted to the town engineer.
D. Department action. The town engineer shall act upon the appeal
within 30 calendar days of the filing of the appeal, and the
applicant shall be notified of the town engineer's decision in
writing.
E. Appeal to council. The applicant may appeal the decision of the
town engineer to the council by submitting an appeal to the town
clerk within 14 calendar days of the town engineer's written
decision.
F. Action by council. The council shall hear and act upon the appeal
within 45 calendar days of receipt of the appeal, and the applicant
shall be notified of the council's decision in writing.
G. Final decision. The council's decision regarding the appeal is final.
H. Fees during pendency. Building permits may be issued during the
pendency of an appeal if the applicant (1) pays the full impact fee
calculated by the town at the time the appeal is filed or
(2) provides the town with financial assurances in the form
acceptable to the town manager or authorized designee equal to
the full amount of the impact fee. Upon final disposition of an
appeal, the fee shall be adjusted in accordance with the decision
rendered, and a refund paid if warranted. If the appeal is denied
by the council, and the applicant has provided the town with
financial assurances as set forth in clause (2) above, the applicant
shall deliver the full amount of the impact fee to the town within
ten days of the council's final decision on the appeal. If the
applicant fails to deliver the full amount of the impact fees when
required by this subsection, the town may draw upon such
financial assurance instruments as necessary to recover the full
amount of the impact fees due from the applicant.
17 -17 -15 Refunds of development impact fees
A. Refunds. A refund (or partial refund) will be paid to any current
owner of property within the town who submits a written request
to the town and demonstrates that:
1. The permit that triggered the collection of the development
impact fee has expired or been voided prior to the
commencement of the development for which the permit was
issued and the development impact fees collected have not
been expended, encumbered, or pledged for the repayment of
financing or debt; or
2. The owner of the subject real property or its predecessor in
interest paid a development impact fee for the applicable
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capital facility on or after August 1, 2014, and one of the
following conditions exists:
a. The capital facility designed to serve the subject real
property has been constructed, has the capacity to serve the
subject real property and any development for which there
is reserved capacity, and the service which was to be
provided by that capital facility has not been provided to
the subject real property from that capital facility or from
any other infrastructure.
b. After collecting the fee to construct a capital facility the
town fails to complete construction of the capital facility
within the time period identified in the infrastructure
improvements plan, as it may be amended, and the
corresponding service is otherwise unavailable to the
subject real property from that capital facility or any other
infrastructure.
c. For a category of necessary public services other than water
or wastewater facilities, any part of a development impact
fee is not spent within ten years of the town's receipt of the
development impact fee.
d. Any part of a development impact fee for water or
wastewater facilities is not spent within 15 years of the
town's receipt of the development impact fee.
e. The development impact fee was calculated and collected
for the construction cost to provide all or a portion of a
specific capital facility serving the subject real property and
the actual construction costs for the capital facility are less
than the construction costs projected in the infrastructure
improvements plan by a factor of 10% or more. In such
event, the current owner of the subject real property shall,
upon request as set forth in this section, be entitled to a
refund for the difference between the amounts of the
development impact fee charged for and attributable to
such construction cost and the amount the development
impact fee would have been calculated to be if the actual
construction cost had been included in the fee report. The
refund contemplated by this subsection shall relate only to
the costs specific to the construction of the applicable
capital facility and shall not include any related design,
administrative, or other costs not directly incurred for
construction of the capital facility that are included in the
development impact fee as permitted by A.R.S. § 9- 463.05.
B. Earned interest. A refund of a development impact fee shall
include any interest actually earned on the refunded portion of the
development impact fee by the town from the date of collection to
the date of refund. All refunds shall be made to the record owner
of the property at the time the refund is paid.
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C. Refund to government. If a development impact fee was paid by a
governmental entity, any refund shall be paid to that
governmental entity.
17 -17 -16 Oversight of development impact fee program
A. Annual report. Within 90 days of the end of each fiscal year, the
town shall file with the town clerk an unaudited annual report
accounting for the collection and use of the fees for each service
area and shall post the report on its website in accordance with
A.R.S. § 9- 463.05 (N) and (0), as amended.
B. Biennial audit. In addition to the annual report described in
paragraph A of this section, the town shall provide for a biennial,
certified audit of the town's land use assumptions, infrastructure
improvements plan and development impact fees.
1. An audit pursuant to this subsection shall be conducted by one
or more qualified professionals who are not employees or
officials of the town and who did not prepare the infrastructure
improvements plan.
2. The audit shall review the collection and expenditures of
development fees for each project in the plan and provide
written comments describing the amount of development
impact fees assessed, collected, and spent on capital facilities.
3. The audit shall describe the level of service in each service area,
and evaluate any inequities in implementing the infrastructure
improvements plan or imposing the development impact fee.
4. The town shall post the findings of the audit on the town's
website and shall conduct a public hearing on the audit within
60 days of the release of the audit to the public.
5. For purposes of this section a certified audit shall mean any
audit authenticated by one or more of the qualified
professionals conducting the audit pursuant to subparagraph
17 -17 -16 B. 1 above.
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