3-11-002

Division 3-11-002
Procedures for Imposition, Calculation and Collection of Development Fees

Sections:

3-11-002-0001 In General

An applicant shall be notified by the City of the applicable development fee requirements at the time of application for a building permit. Development fees shall be calculated by the City at the time of application for a building permit and shall be paid by the applicant prior to the issuance of a building permit, unless provided for otherwise by development agreement in accordance with § 3-11-002-0004 of this Chapter.

3-11-002-0002 Calculation

A. Upon receipt of an application for a building permit, the City shall determine (a) whether it is a residential or non-residential use, (b) the specific category of residential or non-residential development, if applicable, (c) if residential, the number of new dwellings, and (d) if non-residential, the number of new or additional square feet of gross floor area or hotel rooms of the proposed use.

B. Upon receipt of an application for a building permit, the City shall determine whether the development proposed involves a change in use. In such cases, the development fee due shall be based only on the incremental increase in the fee for the additional public facilities needed for the change in use.

C. After making these determinations, the City shall calculate the demand for the Public Facility created by the new development for each Public Facility category for which a development fee is being imposed and shall calculate the applicable development fee by multiplying the demand added by the new development by the amount of the applicable development fee per unit of development, incorporating any applicable offset.

D. If the type of land use proposed for new development is not expressly listed in the particular development fee ordinance and schedule, the City shall:

1. identify the most similar land use type listed and calculate the development fee based on the development fee for the land use identified;

2. identify the broader land use category within which the specified land use would apply and calculate the development fee based on the development fee for that land use category; or

3. at the option of the applicant or Planning Director, determine the basis used to calculate the fee pursuant to an independent impact analysis for development fee calculation. Whether initiated by the applicant or the Planning Director, the following shall apply:

(a) The applicant shall be responsible, at its sole expense, for preparing the independent impact analysis, which shall be reviewed for approval by the Planning Director, and, if appropriate, the Director of Public Works or other City staff or officials, prior to payment of the fee.

(b) The independent impact analysis shall measure the impact that the proposed development will have on the particular Public Facility at issue, and shall be based on the same methodologies used in the Infrastructure Improvement Plan and Development Fee Study report, and shall be supported by professionally acceptable data and assumptions.

(c) After review of the independent impact analysis submitted by the applicant, the Planning Director shall accept or reject the analysis and provide written notice to the applicant of its decision. If the independent impact analysis is rejected, the written notice shall provide an explanation of the insufficiencies of the analysis.

(d) The final decision of the Planning Director may be appealed pursuant to Division 10-18-004 of this Chapter.

E. The calculation of development fees due from a multiple-use new development shall be based upon the aggregated demand for each Public Facility generated by each land use type in the new development.

F. The calculation of development fees due from a phased new development shall be based upon the demand generated by each specific land use within the phase of development for which a separate building permit is requested.

G. Development fees shall be calculated based on the development fee amount in effect at the time of application for a building permit.

3-11-002-0003 Offsets

A. Offsets against the amount of a development fee due from a new development shall be provided for the required dedication of public sites, improvements, and other necessary public services included within the first five years of the City’s Infrastructure Improvement Plan or for which the Mayor and City Council determine by resolution to include in the IIP during the immediately scheduled amendment thereto.

B. The amount of the offset to be given as a result of the dedication or construction of a public facility is to be calculated as the lower of the following:

1. The amount of the development fee due pursuant to this Chapter;

2. The actual verified costs of dedication or construction.

C. Actual verified costs shall be calculated as follows:

1. Construction of facilities and provision of equipment. The offset must be equal to the actual cost of construction or equipment, as evidenced by receipts and other sufficient documentation provided by the developer of the public facility and verified by the City.

2. Dedication of land. The offset is to be based on the fair market value of the land as determined by a certified property appraiser hired and paid for by the applicant. If the City rejects the applicant’s appraisal, the City may hire and pay for a second appraiser to appraise the property. If either party rejects the second appraisal, a third appraisal may be performed by an appraiser chosen by the first and second appraisers, the costs of which are to be shared equally by the City and the applicant. The third appraisal is binding on both parties. All appraisals must be consistent with generally-accepted appraisal techniques and the date of valuation must be the date of transfer to the City.

D. The amount of an excess contribution, if any, shall be determined by the City upon receipt of a request for an offset; provided, however, that (a) the City will grant no offset for excess contributions from development fee funds unless and until the particular development fee account has sufficient revenue to make the offset without jeopardizing the continuity of the City’s Infrastructure Improvement Plan and (b) the excess contribution may not be transferred or credited to any other category of Public Facility development fees calculated to be due from that development. However, nothing herein shall prohibit the City from contributing non-development fee funding to a developer’s excess contribution. The determination of the eligibility for and the amount of the offset shall be made by the City. If the applicant contends that any aspect of the City’s decision constitutes an abuse of discretion, the applicant shall be entitled to appeal pursuant to Division 10-18-004 of this Chapter.

E. Offsets for dedication of land or provision of public facilities shall be applicable only as to development fees imposed for the same types of Public Facilities that are proposed to be dedicated or provided. Even if the value of the dedication of land or provision of a Public Facility exceeds the development fee due for the type of Public Facility, the excess value may not be transferred to development fees calculated to be due from the applicant for other types of public facilities for which development fees may be imposed. Offsets may, however, be transferred to the same applicant or to other applicants for new development that are proposed within the final approved platted area of the same development and for the same type of Public Facility.

3-11-002-0004 Collection

A. Except as provided by § 3-11-002-0004(B), below, the City shall collect all applicable development fees at the time of issuance of a building permit and shall issue a receipt to the applicant for such payment unless:

1. the applicant is entitled to a full offset;

2. the applicant is not otherwise subject to the payment of a development fee; or

3. the applicant has filed an appeal and a bond, letter of credit, or other form of assurance approved by the City Attorney and Finance Director in the amount of the development fee, as calculated by the City.

B. As an alternative to collecting development fees at the time of issuance of a building permit, the City and a developer may enter into a development agreement authorizing the payment of development fees by developers of residential dwelling units at another time, except that in no case shall development fees be paid later than fifteen (15) days after the issuance of a certificate of occupancy. If a development agreement provides for the deferral of development fee payments, the agreement shall provide for the value of any deferred fees to be secured by bond, letter of credit, or other form of assurance approved by the City Attorney and Finance Director.