HomeMy WebLinkAboutTransportation Impact FeeTOWN COUNCIL
MEETING
DCF0tLMATION
TOWN
OF
MARANA
DATE: Jarluary23, 2001
AGENDA ITEM: IX. A. 1
TO: Mayor and Council
FROM: James R. DeGrood, P.E., Development Services Administrator
SUBJECT: Ordinance No. 2001.02: Transportation Impact Fee for Marana South Transportation
Benefit Area
DISCUSSION:
On January 9, 2001 the Marana Town Council conducted a public hearing to consider
adoption of a new transportation Development Impact Fee for the southern portion of
Marana. Two individuals spoke to this item and expressed concerns. The first speaker
expressed that the existing residents of the community share in the cost of future roadways
that they benefit from. The second speaker asked that the Town be cognizant of the fact
that new fees on development increase the sales price of a home by more than the cost of
the new fees due to developer overhead.
The recommendation that this fee be adopted came from a Transportation Financing Needs
Assessment undertaken after the Town approved the Final Plat for the Continental Reserve
project. The study recommended implementation of a development impact fee for
transportation infrastructure improvements, as well as an increase in construction sales
taxes.
Development impact fees must be reasonably related to the impact that the new
development has on the infrastructure being funded with the fee. Any existing
deficiencies in the existing infrastructure must be met with funding other than
development impact fees. Funding for correcting these deficiencies cannot come from
sources that the new residents contribute to (such as general funds, sales taxes etc.)
without ~ving a credit to the new residents that have paid their share through impact fees.
What is lmown about the existing transportation system is that the existing deficiencies on
Cortaro Road will be addressed by the improvements the Town is about to commence.
Acceptable levels of service will be provided through the year 2004 as a result of this
improvement and anticipated growth. The Town has also identified regional funding for
the widening of Silverbell Road between Ina and Cortaro Road, as well as the widening of
Ina Road between Interstate 10 and Sitverbell. These roadway widenings will further
improve levels of service in the area, but will not be sufficient for the population expected
at buildout of the area.
The most significant expenses for transportation improvements the Town faces will be for
Interstate 10 access improvements. The most viable improvement that can be implemented
to benefit the southern part of Marana is a new interchange at Twin Peaks Road. The
overall cost for this improvement is $57 million dollars, which includes the interchange, a
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grade separated crossing xvith the Union Pacific Railroad, a 2000 foot tong bridge over the
Santa Cruz River and a new connection .to Linda Vista Road at Camino de la Manana. The
Arizona Department of Transportation (ADOT) and the Town of Marana are preparing to
initiate the design of this project, and could begin construction of elements of this project
as early as 2006. A reliable source of funding for this project must first be identified and
committed.
ADOT acknowledges that they have a responsibility for a portion of the project cost, but
this is limited to the interchange improvements (estimated to cost $29 million). ADOT
also maintains that they are not responsible for paying for growth related improvements
and that growth should pay for itself. The Town estimates that it will need to fund half the
cost of the interchange. Satisfaction of the Town's obligation to this interchange
improvement is the subject of the proposed Development Impact Fee. This Impact Fee
contemplates a $14.5 million dollar Town contribution to the cost of the interchange.
The improvements outside of the interstate access (estimated to cost $28 million) will need
to be funded by other sources, and the town will seek regional, federal and other sources of
funding for these other improvements, but will likely have to fund a substantial portion of
this cost as well.
The benefits of the Twin Peaks interchange will be observed throughout the region, as
some trips which would otherwise be taken at the Avra Valley, Orange Grove, Ina and
Cortaro Interchanges will occur at Twin Peaks. We estimate that if the Twin Peaks
interchange existed today, it would be carrying more traffic than the existing Cortaro
interchange. As the benefits of the new interchange will be observed well beyond the
immediate Continental Ranch area, a broader region is included within the Marana South
Transportation Benefit Area. The Marana South Transportation Benefit Area is bounded
to the North by the Avra Valley/Lambert Lane Alignments, and the Town limits to the
South, East and West. All new residential construction within the benefit area will be
subject to the impact fee.
The proposed impact fee amount is $2435 per "equivalent demand unit" or EDU. An
equivalent demand unit is equal to the traffic generated by a single family detached
residence. It has been proven that apartments and age-restricted developments generate
less traffic per dwelling due to the nature of the occupants, and therefore have a discounted
fee. Conversely, some projects may have a greater traffic impact, and will be subject to
higher rates. The project's Traffic Impact Analysis, required for all new development in
the Town, will be the basis for this determination.
State Statute requires that these fees are to be collected at the time of building permit
issuance, unless modified by a Development Agreement. By entering in to a Development
Agreement, a developer could defer collection of the Development Impact Fee from the
point of building permit to the point of closing on a home sale. This would partially be
able to reduce the builder overhead associated with a Developer Impact Fee, and would
allow the itemization of this fee for the buyer in the closing statement. This would allow
for the avoidance of financing costs (or loss of use of these funds) associated with the
earlier payment of the Development Impact Fee. Making this payment option available to
the development community partially addresses the concern raised at the public hearing
about the increased cost to the home buyer associated with this new fee.
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Statutes require that any proposed Dev.elopment Impact Fee be advertised for a minimum
of 30 days prior to any public hearing on a Development Impact Fee. This requirement has
been met. Statutes also require a minimum of 14 days lapse between the date of the public
hearing, and the adoption of a Development Impact Fee Ordinance. Should the Council
adopt this Ordinance at this meeting, the statutory waiting period will also have been
complied with.
Should Council adopt this Development Impact Fee Ordinance at this meeting, the
collection of this fee will commence Monday, April 23, 2001.
RECOMMENDATION: Staff recommends adoption of the Development Impact Fee Ordinance.
SUGGESTED MOTION: I move to adopt Ordinance No. 2001.02.
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