Chapter 15.45
TRAFFIC IMPACT FEE ADJUSTMENTS
Sections:
15.45.020 Traffic impact fee funding source adjustment established.
15.45.030 Application for traffic impact fee funding source adjustment.
15.45.040 Funding source adjustment criteria.
15.45.050 Administration of traffic impact fee funding source adjustment.
15.45.060 Payment to applicants that qualify for adjustment.
15.45.080 Requirement of applicant to stay in business.
15.45.090 Time limit of applications – Sunset provision.
15.45.010 Purpose.
A. The purpose of this chapter is to ensure that public health, safety and welfare will be preserved by having safe and efficient roads serving new and existing developments by creating an economic development incentive that will attract certain types of retail development to the City and using a portion of the sales tax generated by such development to provide additional citywide services.
B. The requirements of this chapter apply to all new commercial retail business developments meeting the definition of FMC 15.45.040(A). This chapter, if applicable, is intended to apply in addition to all other requirements imposed by state, local or federal law. (Ord. 1709 § 1, 2012)
15.45.020 Traffic impact fee funding source adjustment established.
There is hereby established a process for new retail establishments to achieve a funding source adjustment for the traffic impact fees paid for development activity which meets the criteria of FMC 15.45.040; provided, however, that the amount of transportation impact fees eligible for a funding source adjustment shall not exceed the total sales tax received by the City from the applicant during the three-year period commencing from the date of certificate of occupancy as defined in FMC 15.45.050. (Ord. 1709 § 1, 2012)
15.45.030 Application for traffic impact fee funding source adjustment.
Any applicant who meets the criteria set forth in FMC 15.45.040 may apply to the Finance Director or their designee for a funding source adjustment to the traffic impact fee requirement. Said application must be submitted on or before the time that the building permit is deemed complete, shall be on forms provided by the City, and shall be accompanied by all information and data the City deems necessary to process the application. To the extent authorized by law, the City shall endeavor to keep all proprietary information submitted with said application confidential; provided however, this chapter shall not create or establish a special duty to do so. (Ord. 2208 § 1 (Exh. 1), 2022; Ord. 1709 § 1, 2012)
15.45.040 Funding source adjustment criteria.
To be eligible for the traffic impact fee funding source adjustment established by this chapter, the applicant shall meet the following criteria:
A. The applicant must represent a new commercial retail business in the Ferndale city limits. For the purposes of this chapter “new commercial retail business” shall mean any business that (1) is not already located in the City at the time a building permit is applied for, (2) sells retail goods and services which are subject to the retail sales tax, (3) applies for a building permit, and (4) is subject to payment of traffic impact fees to the City. “Applicant” shall mean the legal entity or individual who pays the traffic impact fee and applies for the traffic impact fee funding source adjustment.
B. In the event that there is a single development proposal which contains multiple new commercial retail businesses, the City shall consider the total development to be a single applicant if there is a single traffic impact fee paid.
C. In the event that there is a phased development which contains one or more new commercial retail businesses, the City shall consider each phase’s payment of traffic impact fees and the included business(s) as a separate application. In no case shall the same new commercial retail business’s sales tax generation be used for more than one traffic impact fee qualifying calculation and it shall be tied to the traffic impact fee applicable to its development phase.
D. “Average annual sales tax” shall mean the total sales tax actually remitted to the City from the Department of Revenue during the initial three-year period divided by three and shall not include any transportation benefit district voter-approved sales tax.
E. “Not already located in the City” shall mean that the business is either opening their first store within the Ferndale city limits or are opening another outlet. Should the business already have one or more outlets in the City, the new outlet shall be considered “not already in the City” if all of the existing outlet(s) remain open for the three-year qualifying time period. If the new store is simply relocating to a new location and will no longer operate from its old location or an existing outlet is closed during the three-year qualifying time period, the sales tax generated by the “new” store would not be included in the qualifying calculations. (Ord. 1709 § 1, 2012)
15.45.050 Administration of traffic impact fee funding source adjustment.
A. Upon acceptance of an application for funding source adjustment pursuant to FMC 15.45.040, the applicant shall pay to the City the full amount of the traffic impact fee. The impact fees collected shall belong to the City and shall be available for use by the City upon receipt. At the expiration of a three-year period commencing from the date of issuance of certificate of occupancy and receipt by the City of their first monthly sales taxes, the Finance Director shall determine if the average annual City portion of sales tax revenue (as defined in FMC 15.45.040(D)) received by the City meets the minimum amount stated in subsection (B) of this section.
B. The initial three-year sales tax thresholds and applicable traffic impact fee funding source adjustments are as follows:
|
Average Amount of Annual Sales Tax Remitted to the City |
Traffic Impact Fee Funding Source Adjustment Percentage |
|---|---|
|
Over $100,000 but less than $199,999 |
10% |
|
Over $200,000 but less than $299,999 |
20% |
|
Over $300,000 but less than $399,999 |
30% |
|
Over $400,000 but less than $499,999 |
40% |
|
$500,000 or more |
50% |
C. In the event that there is a single development proposal which contains multiple new commercial retail businesses, the City shall use the combined retail sales taxes generated to the City by the development for qualification for the traffic impact fee funding source adjustment.
D. In the event the three-year average annual City of Ferndale portion of the sales tax has fully met the above thresholds, there shall be an adjustment of the funding source allowed for the corresponding percentage of the traffic impact fees actually paid. In such cases, an amount equal to the applicable percentage of the traffic impact fees previously paid to the City shall be returned to the applicant conditioned upon the requirement that the amount returned will be funded by the future sales tax revenue generated by the new retail business and further limited by FMC 15.45.080.
E. In cases where the Finance Director has determined that the applicant has not met the thresholds listed under subsection (B) of this section, the applicant shall not be entitled to any adjustment to the funding source of the traffic impact fees paid.
F. Should there be extenuating circumstances (fire or other natural disaster) that, in the estimation of the City, has prevented the applicant from generating their anticipated sales tax revenue during the initial three-year period, the City, following approval from the City Administrator, and the applicant may amend the application to establish a new three-year qualifying time period. In no case shall there be more than one revision to the three-year qualifying time period per applicant. (Ord. 1709 § 1, 2012)
15.45.060 Payment to applicants that qualify for adjustment.
All payments made to applicants that are entitled to a funding source adjustment shall be paid by the City in 12 equal quarterly payments from future sales tax revenue. The first payment shall be paid to the applicant within 90 calendar days after the three-year qualifying period and following certification by the Finance Director of the qualifying percentage of adjustment. Each subsequent payment will be made three months after the previous quarter’s payment. The total amount paid shall be equal to the qualifying funding source adjustment percentage and shall not include interest. (Ord. 1709 § 1, 2012)
15.45.070 Appeals.
Any applicant that is aggrieved by the determination of the Finance Director as to whether the sales tax threshold has been met may file a written appeal to the City’s Hearing Examiner. The Hearings Examiner is hereby specifically authorized to hear and decide such appeals and the decision of the Hearing Examiner shall be final action by the City. (Ord. 1709 § 1, 2012)
15.45.080 Requirement of applicant to stay in business.
Qualifying businesses receiving traffic impact fee funding source adjustment are required to stay in business a minimum of 10 years from the date of the certificate of occupancy. If the business closes the retail business within 10 years of the certificate of occupancy, an amount equal to 50 percent of the traffic impact fee paid back pursuant to a funding source adjustment shall be repaid to the City within 60 days of the retail business closing. If the closure occurs within the three-year (12 quarterly) payback period, any payments not yet made by the City shall not be required to be made, and the resulting net repayment owing to the City shall be made within 60 days of the retail business closing. (Ord. 1709 § 1, 2012)
15.45.090 Time limit of applications – Sunset provision.
The ordinance codified in this chapter will cease to be in effect exactly five years from its effective date and no further applications for traffic impact fee funding source adjustments shall be accepted after this date. All previous qualifying traffic impact fee funding source adjustments applications shall continue to be tracked and repaid after the sunset date of this chapter until paid in full according to the provisions of this chapter. (Ord. 1709 § 1, 2012)
15.45.100 Assignment.
The funding source adjustment payments made by the City to the qualifying applicant may be assigned with written notice to the City at least 30 calendar days prior to a quarterly payment date. (Ord. 1709 § 1, 2012)