Sections:
3-11-001-0001 Purpose and Intent
3-11-001-0002 Definitions
3-11-001-0003 General Provisions; Applicability
3-11-001-0001 Purpose and Intent
The purposes and intent of these development fee procedures are:
A. To establish uniform procedures for the imposition, calculation, collection, expenditure and administration of development fees imposed on new development;
B. To assure that new development contributes its fair share towards the costs of public facilities reasonably necessitated by such new development;
C. To ensure that new development reasonably benefits from the provision of the public facilities provided with the proceeds of development fees;
D. To ensure that all applicable legal standards and criteria are properly incorporated in these procedures.
E. To ensure that all applicable procedures and requirements of Arizona Revised Statutes § 9-463.05 have been met.
3-11-001-0002 Definitions
Except as otherwise indicated herein, the words or phrases used herein shall have the meaning prescribed in Chapter 10-80:
A. Applicant: any person who files an application with the City for a building permit.
B. Appropriation or to appropriate: an action by the City to provide specific public facilities funded by development fees. Appropriation shall include, but shall not necessarily be limited to: execution of a contract or other legal instrument for construction of a capacity-enhancing public facility using development fee funds in whole or in part; and/or actual expenditure of development fee funds through payments made from a development fee account.
C. Development Fee: a fee adopted pursuant to Arizona Revised Statutes § 9-463.05 which is imposed on new development on a pro rata basis in connection with and as a condition of the issuance of a building permit and which is calculated to defray all or a portion of the costs of the public facilities required to accommodate new development at City-designated level of service ("LOS") standards and which reasonably benefits the new development.
D. Infrastructure Improvement Plan and Development Fee Study ("IIP and Fee Study"): a report prepared in support of the ordinance adopting a development fee, which sets forth the methodology and basis for the calculation of the impact of new development and the proper and proportional amount of the development fee to be assessed against new development as required by A.R.S Section 9-463.05(C).
E. Fire Protection Development Fee: a development fee imposed on new residential and non-residential development to fund the proportionate share of the Public Facility costs of buildings and apparatus, including vehicles, trucks, pumpers, water tenders, and other fire protection services, facilities, and equipment, created by new development.
F. Infrastructure Improvement Plan ("IIP"): a plan, included in the Infrastructure Improvement Plan and Development Fee Study, which estimates future necessary public services and facilities required as a result of new development and forecasts the capital costs to the City of providing the Public Facility improvements needed to meet those needs. The IIP includes Public Facilities and Public Facility Expenditures on the City’s Capital Improvement Plan ("CIP").
G. Multifamily Residential: a minimum of three (3) residential dwelling units permitted under the same building permit application.
H. New Development: any new construction, reconstruction, redevelopment, rehabilitation, structural alteration, structural enlargement, structural extension, or new use which requires a building permit or any change in use of an existing building, structure, or lot requiring any form of City approval, which increases the demand for one (1) or more public facilities, except as otherwise provided in Section 3-11-001-0003.
I. Offset: a waiver, reimbursement, or credit of certain required development fees, pursuant to Section 3-11-002-0003, in exchange for the provision by the applicant of, among other things, monetary contributions, dedication of land, or actual construction of all or part of a public facility included within the first five (5) years of the City’s IIP.
J. Police Protection Development Fee: a development fee imposed on new residential and non-residential development to fund the proportionate share of the Public Facility costs created by new development for law enforcement buildings, vehicles, and equipment created by new development.
K. Public Facility Expenditures: amounts appropriated in connection with the provision of Public Facilities, including capital infrastructure, improvements, real property, engineering and architectural services, financing, other capital costs and associated appurtenances, equipment, vehicles, furnishings, and other personalty.
L. Single-Family Detached Dwelling Residential: a maximum of two (2) attached or detached dwellings under individual building permit applications.
M. Workforce Housing Project: means a residential development that is restricted to residents, or potential residents, who earn up to 150% of the Area Median Income for their family size, when they are spending no more than 35% of their gross income on housing. (Ord. 2020-25, Amended, 11/03/2020)
3-11-001-0003 General Provisions; Applicability
A. Term. This Chapter and the procedures established herein shall remain in effect unless and until repealed, amended or modified by the Mayor and City Council in accordance with applicable state law and the City Code, ordinances and resolutions.
B. Affected Area. Development fees shall be imposed on all new development within the municipal limits of the City of Flagstaff.
C. Type of Development Affected. This Chapter shall apply to all new development.
D. Type of Development Not Affected. This Chapter shall not apply to:
1. Existing Building Permit Applications. No development fee shall be imposed on new development for which a building permit application has been submitted prior to the effective date of Ordinance No. 2008-28.
2. No Net Increase in Dwellings or Bedrooms. No development fee shall be imposed on any new residential development that does not result in the creation of a new dwelling or increase in number of bedrooms.
3. No Net Increase in Non-Residential Square Footage. No development fee shall be imposed on any new non-residential development that does not result in the creation of new square footage or hotel room, unless the new non-residential development increases the demand for public facilities for which development fees are being imposed.
4. Other Uses. No development fee shall be imposed on a use, development, project, structure, building, fence, sign or other activity, whether or not a building permit is required, which does not result in an increase in the demand for public facilities.
5. Development Agreements. Development projects that are the subject of a development agreement containing provisions in conflict with this Article, but only to the extent of the conflict or inconsistency.
6. Development by Other Governmental Entities. Pursuant to Arizona Revised Statutes § 9-500.18, no development fee, other than fees assessed or collected for streets and water and sewer utility functions, shall be collected from a State of Arizona school district or a charter school.
E. Effect of Payment of Development Fees on Other Applicable City Land Use, Zoning, Platting, Subdivision or Development Regulations.
1. The payment of development fees shall not entitle the applicant to a building permit unless all other applicable land use, zoning, planning, platting, subdivision or other related requirements, standards and conditions have been met. Such other requirements, standards and conditions are independent of the requirement for payment of a development fee.
2. This chapter shall not affect, in any manner, the permissible use of property, density/intensity of development, design and improvement standards or other applicable standards or requirements of the Flagstaff Zoning Code, which shall be operative and remain in full force and effect without limitation.
F. Amendments. This Chapter may be amended from time to time by the City Council, provided that updates to the Infrastructure Improvement Plan and Development Fee Study are completed, as required by law, and the requirements for public notice and hearings are met as set forth herein and in Arizona Revised Statutes § 9-463.05.
G. Effect of Imposition of Development Fees in a Community Facilities District. In calculating and imposing a development fee applicable to land in a community facilities district established under Arizona Revised Statutes, Title 48, Chapter 4, Article 6, the City shall take into account all public infrastructure provided by the district and capital costs paid by the district for necessary Public Facilities and services and shall not assess a portion of the development fee based on the infrastructure or costs. (Ord. 2020-25, Amended, 11/03/2020)