Chapter 21.06
PARK AND RECREATION FACILITIES IMPACT FEE AND MITIGATION PROGRAM
Sections:
21.06.010 Authority and purpose.
21.06.040 Imposition of impact fees.
21.06.050 Approval of development.
21.06.060 Fee schedules and establishment of service area.
21.06.070 Calculation of impact fees.
21.06.080 Impact fee account funds established.
21.06.100 Assessment and collection.
21.06.110 Adjustments – Independent calculations.
21.06.140 Appeals and payments under protest.
21.06.160 Administrative fees.
21.06.170 Exemption or reductions.
21.06.180 Relationship to environmental impact mitigation.
21.06.010 Authority and purpose.
(A) This section is enacted pursuant to the city’s police powers, Chapters 43.21C, 58.17 and 82.02 RCW. The purpose of this chapter is to:
(1) Maintain a program for financing park and recreation facilities capital improvements necessitated in whole or in part by development within the city consistent with the goals and policies of the comprehensive plan;
(2) Ensure adequate levels of service within the city;
(3) Establish means to charge and collect impact fees to ensure that all new development bears its proportionate share of the capital costs of off-site facilities reasonably necessary to accommodate the growth and maintain adopted level of service standards;
(4) Ensure that the city pays its fair share of the capital cost of park and recreation facilities necessitated by public uses unrelated to new growth; and
(5) Ensure fair collection and administration of park and recreation facilities impact fees.
(B) The provisions of this chapter shall be liberally construed to effectively carry out its purpose in the interests of public health, safety and welfare. [Ord. 907 § 1 (Att. A), 2016.]
21.06.020 Applicability.
(A) The requirements of this chapter shall apply to all development regulated by the GFMC unless otherwise exempted.
(B) Mitigation of impacts on parks located in jurisdictions outside the city will be required when:
(1) The other affected jurisdiction has reviewed the development’s impact(s) under its adopted impact fee regulations and has recommended to the city that there be a requirement to mitigate the impact; and
(2) There is an interlocal agreement between the city and the affected jurisdiction specifically addressing impact analysis and mitigation.
(C) The following are exempted from impact fees:
(1) Alteration, expansion, reconstruction, or replacement of existing single-family or multifamily dwelling units that does not result in additional dwelling units.
(2) Accessory dwelling units.
(3) Development which has impact mitigation provided through environmental review under the State Environmental Policy Act.
(4) Development for which park impacts have been mitigated by the payment of, or promise or obligation to pay, fees, dedicate land, or construct or improve park facilities as part of a permit approval process granted prior to the effective date of the ordinance codified in this chapter unless the terms of the agreement expressly provide otherwise. [Ord. 907 § 1 (Att. A), 2016.]
21.06.030 Geographic scope.
The boundaries within which park and recreation facilities impact fees shall be charged and collected are the same as the corporate city limits. All unincorporated areas annexed to the city on and after the effective date hereof shall be subject to the provisions of this chapter. After the adoption of interlocal agreements with other local, regional or state jurisdictions, the geographic boundaries may be expanded accordingly. [Ord. 907 § 1 (Att. A), 2016.]
21.06.040 Imposition of impact fees.
(A) Impact fees may be required pursuant to the fee schedule adopted through the process described herein, or mitigation may be provided through other means such as the purchase, installation and/or improvement of park and recreation facilities; or the dedication of land for park and recreation purposes.
(B) Impact fees shall:
(1) Only be imposed for park needs that are reasonably related to the impacts of development;
(2) Not exceed the proportionate share of the costs of park and recreation facilities that will reasonably benefit the new development;
(3) Be used for park and recreation facilities that will reasonably benefit the new development;
(4) Not be used to correct existing deficiencies;
(5) Not be imposed to mitigate impacts or meet facility needs that are being addressed through other laws or programs;
(6) Not be collected for improvements to other jurisdictions’ park and recreation facilities unless the city and the affected other jurisdiction have an interlocal agreement;
(7) Not be collected for projects vested prior to the adoption date hereof unless changes or modifications to the development proposal require an amendment to the previous city approval and result in greater impacts than previously addressed by the vested approval;
(8) Be collected only once for each development, unless changes or modifications to the development proposal require an amendment to the previous city approval and result in greater impacts than previously addressed by the vested approval;
(9) Be collected for system improvement costs previously incurred by the city, to the extent that said improvements are intended to serve new development and that additional fees shall not be collected for system deficiencies; and
(10) Be only collected on residential developments for park and recreation facilities impact mitigation. [Ord. 907 § 1 (Att. A), 2016.]
21.06.050 Approval of development.
Approvals and permits granted by the city shall include findings and conclusions pertaining to impact mitigation fees consistent with this chapter. [Ord. 907 § 1 (Att. A), 2016.]
21.06.060 Fee schedules and establishment of service area.
(A) Impact fees shall be established by city council ordinance no more frequently than annually.
(B) The entire city within the corporate limits is the service area. [Ord. 907 § 1 (Att. A), 2016.]
21.06.070 Calculation of impact fees.
(A) Park impact fees are based on the level of service standards for parks and recreation facilities established in the comprehensive plan.
(1) It is the city’s intent to maintain the ratio of park land to population established in the comprehensive plan land use element. Dedication of land and facilities for public parks and recreation facilities is the preferred method for mitigating impacts on such facilities caused by the development of new households.
(2) When creation of a new household (in the form of a subdivision, short plat, planned residential development (PRD), manufactured housing park, or residential building permit on a lot for which a parks impact fee has not been collected) is proposed, the city shall require dedication of land necessary to meet the park land to population ratio level of service standards for parks and recreation facilities. In the event that land dedication is determined by the city to be unfeasible, a mitigation fee in accordance with Table 2 shall be assessed. The amount of land to be dedicated for each dwelling unit shall be as shown in Table 1.
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Park land area per household: 2 x 43,560/400 = 220 square feet/HH (rounded) |
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Given the following variables: |
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a) Comprehensive plan park land to population ratio = two acres per 1,000 |
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b) Average household size = 2.6 persons per household |
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c) Households per 1,000 = 1,000/2.6 = 385 |
(B) The fee value of land to be dedicated may be determined by either of the following methods:
(1) The applicant may provide a fair market appraisal of the improved property value. The appraisal shall be prepared by a member of the Appraisal Institute (MAI).
(2) The city may calculate the average improved land value using Snohomish County assessor’s data for all new dwelling units constructed in the previous calendar year.
(C) Park impact fee (PIF) assessments in lieu of land dedication shall be collected based on Table 2 and specified by city council resolution.
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Given the following variables: |
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A |
Adjustment in accordance with RCW 82.02.050 and 82.02.060 to provide a balance between impact fees and other sources of public funds to meet park and recreation facilities capital facility’s needs. This adjustment is 50 percent, so that A = 0.5. |
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HS |
Average household size of 2.6 persons. |
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PLOS |
Adopted park land level of service standard of two acres per 1,000 population. |
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PLR |
Proportionate land requirement per new household (0.0052) acre calculated as PLOS ÷ 1,000 x HS. |
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PV |
Park land value of $10,000 per acre and park improvement value of $70,000 per acre. |
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TLOS |
Adopted trails level of service standard of one mile per 1,000 population. |
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TV |
Trails land and improvement value of $30,000 per mile. |
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PTR |
Proportionate trail requirement per new household (0.0026) calculated as TLOS ÷ 1,000 x HS. |
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Therefore: PIF = A x [(PLR x PV) + (PTR x TV)] |
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PIF = 0.5 x [0.0052 x $80,000 + 0.0026 x $30,000] = $247.00 per new household (unless amended by city council resolution1) |
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1 City council fee resolution No. 2015-02 sets the current park impact fee at $230.00 per new household.
[Ord. 907 § 1 (Att. A), 2016.]
21.06.080 Impact fee account funds established.
(A) Park Impact Fee Fund. There is hereby created and established a special purpose park and recreation facilities impact fee fund to receive park impact fees. All park impact fees and investment income received pursuant to this chapter shall be deposited into the park impact fee fund.
(B) Procedures. Procedures for administration of the funds shall be established by the designated official. Expenditures from these funds shall be made in accordance with the city’s normal budget procedures. Annually, the city shall prepare a report on each impact fee account showing the source and amount of all monies collected, interest earned, and capital or system improvements that were financed in whole or in part by impact fees. [Ord. 907 § 1 (Att. A), 2016.]
21.06.090 Use of funds.
(A) Impact fees shall be used for park and recreation facility improvements that will reasonably benefit the new development; shall not be imposed to make up for deficiencies in the park facilities serving existing developments; and shall not be used for maintenance or operation.
(B) Impact fees may be spent for improvements, including, but not limited to, facility planning, land acquisition, site improvements, necessary off-site improvements, construction, engineering, architectural, permitting, financing, grant matching funds and administrative expenses, applicable impact fees or mitigation costs, capital equipment pertaining to park and recreation facilities, and any other expenses which can be capitalized and are consistent with the comprehensive plan.
(1) Impact fees may also be used to recoup park and recreation facility improvement costs previously incurred to the extent that new growth and development will be served by the previously constructed improvements or incurred costs.
(2) In the event that bonds or similar debt instruments are or have been issued for the construction of park facility or system improvements for which impact fees may be expended, impact fees may be used to pay debt service on such bonds or similar debt instruments to the extent that the facilities or improvements provided are consistent with the requirements of this chapter and are used to serve the new development. Capital facilities plans using impact fees for the purpose of assisting in the provision of capital facilities or facility systems must clearly differentiate between funds used for new improvement and those funds used to correct existing deficiencies. [Ord. 907 § 1 (Att. A), 2016.]
21.06.100 Assessment and collection.
(A) Fee Determination. For all development activity subject to this chapter, the city shall determine the total impact fee at the time of application for a building permit or for installation of a mobile/manufactured home, based on the parks, recreation and open space element of the Granite Falls comprehensive plan and the resulting fee schedule in effect at the time of the application adopted by resolution.
(B) Collection Time. Collection shall occur prior to the time of building permit issuance. [Ord. 907 § 1 (Att. A), 2016.]
21.06.110 Adjustments – Independent calculations.
(A) A fee payer may request an adjustment to the impact fees set forth in this chapter by preparing and submitting to the city an independent fee calculation for the development activity for which a building permit is sought. The documentation submitted shall show the basis upon which the independent fee calculation was made.
(1) If the city agrees with the independent fee calculation, a written agreement shall be transmitted to the fee payer for recording.
(2) If the city does not agree with the independent fee proposal, the fee payer may request a third party review. The third party reviewer will be selected by the city.
(a) The fee payer shall pay the third party reviewer for services and the city for analysis of the independent fee calculation.
(b) While there is a presumption that the calculations set forth in the parks, recreation and open space element of the comprehensive plan are valid, the third party reviewer shall consider the documentation submitted by a fee payer and the analysis prepared by the city.
(c) The third party review may result in the city acceptance, rejection, or revision of the independent fee calculation after consideration of documentation submitted in support of or in opposition to the independent fee calculation, the specific characteristics of the development, principles of fairness, and/or other relevant information. The fees or alternative fees and the calculations shall be set forth in writing and shall be mailed to the fee payer.
(B) Determinations made pursuant to this section may be appealed to the hearing examiner subject to the procedures set forth in the UDC. [Ord. 907 § 1 (Att. A), 2016.]
21.06.120 Credits.
(A) The fee payer shall be entitled to a credit against the applicable impact fee component for the value of any dedication of land for, improvement to, or new construction of any system improvements provided by the fee payer, to facilities that are identified in the parks, recreation and open space element of the comprehensive plan and that are required by the city as a condition of approving the development activity.
(B) The amount of the credit shall be the higher of either the value of the land or improvements established in the adopted comprehensive parks, recreation and open space element or by an appraisal conducted by an independent professional appraiser mutually agreeable to the city and the fee payer. Either the fee payer or the city may request an appraisal, in which event the cost of the appraisal shall be borne by the requesting party. Determinations made pursuant to this section may be appealed to the hearing examiner subject to the procedures set forth in the UDC.
(C) After the effective date of the ordinance codified in this chapter, whenever a development is granted approval subject to a condition that the developer provide capital facilities and utilities park, open space, or linear trail park facilities that are identified in the comprehensive plan parks, recreation and open space element, or whenever the developer has agreed, pursuant to the terms of a voluntary agreement with the city, to provide land for parks, open space, or linear trails that are identified in the comprehensive plan capital facilities and utilities parks, recreation and open space element, or make improvements to existing facilities, the developer shall be entitled to a credit for the value of the land or actual costs of capital facility construction against the fee that would be chargeable under the formula provided by this chapter. The land value or costs of construction shall be determined pursuant to subsection (B) of this section.
(D) When a subdivision or other type of development is conditioned upon the dedication of land, or purchase, installation or improvement of park or recreation facility, a final plat, final PRD, or short plat shall not be recorded, nor a building permit issued until:
(1) The city has determined in writing that any land to be dedicated is shown on the face of the final plat, final PRD, or short plat, or a deed conveying the land to the city has been recorded with the Snohomish County auditor; and
(2) The city has determined in writing, after consultation with the designated public owner responsible for permanent, continuing maintenance and operation of the facilities, that the developer has satisfactorily undertaken, or guaranteed to undertake in a manner acceptable to the city, any required purchase, installation or improvement of the required park or recreation facility. [Ord. 907 § 1 (Att. A), 2016.]
21.06.130 Refunds.
(A) The current owner of property on which impact fees have been paid may receive a refund of such fees if the impact fees have not been expended or encumbered within 10 years of their receipt. In determining whether impact fees have been encumbered, impact fees shall be considered encumbered on a first-in, first-out basis.
(B) Any impact fees that are not expended or encumbered within these time limitations, and for which no application for a refund has been made within this one-year period, shall be retained and expended consistent with the provisions of this section.
(C) Refunds of impact fees shall include any interest earned on the impact fees.
(D) Should the city seek to terminate any or all impact fee requirements, all unexpended or unencumbered funds, including interest earned, shall be refunded to the current owner of the property for which an impact fee was paid. Upon the finding that any or all fee requirements are to be terminated, the city shall place notice of such termination and the availability of refunds in a newspaper of general circulation at least two times and shall notify all potential claimants by first class mail addressed to the owner of the property as shown in the county tax records. All funds available for refund shall be retained for a period of one year. At the end of one year, any remaining funds shall be retained by the city, but must be expended for the original purposes, consistent with the provisions of this section. The notice requirement set forth above shall not apply if there are no unexpended or unencumbered balances within the account or accounts being terminated.
(E) An owner/applicant may request and shall receive a refund, including interest earned on the impact fees, when:
(1) The owner/applicant does not proceed to finalize the development activity as required by statute or city code or the International Building Code; and
(2) The city has not expended or encumbered the impact fees in good faith prior to the application for a refund. In the event that the city has expended or encumbered the fees in good faith, no refund shall be forthcoming. However, if within a period of three years, the same or subsequent owner of the property proceeds with the same or substantially similar development activity, the owner shall be eligible for a credit. The owner must petition the city in writing and provide receipts of impact fees paid by the owner for a development of the same or substantially similar nature on the same property or some portion thereof. The city shall determine whether to grant a credit, and such determinations may be appealed by following the procedures set forth in this chapter.
(F) The amount to be refunded shall include the interest earned by this portion of the account from the date that it was deposited into the impact fee fund. [Ord. 907 § 1 (Att. A), 2016.]
21.06.140 Appeals and payments under protest.
(A) An appeal of the decision of the city, the third party reviewer, or the hearing examiner with regard to the imposition of an impact fee or fee amounts may be filed by the fee payer. Any appeal shall follow the appeal process for the underlying permit and not be subject to a separate appeal process.
(B) Any fee payer may pay the impact fees imposed by this chapter under protest in order to obtain a building permit. No appeal shall be permitted until the impact fees at issue have been provided.
(C) Further appeals of a decision under this chapter shall be considered by the city according to procedures in this chapter.
(D) The hearing examiner is authorized to make findings of fact regarding the applicability of the impact fees to a given development activity, the availability or amount of credit, or the accuracy or applicability of an independent fee calculation. [Ord. 907 § 1 (Att. A), 2016.]
21.06.150 Council review.
(A) Computation and Schedules. The fee schedules set forth in this chapter shall be reviewed by the city council as it deems necessary and appropriate in conjunction with the update of the parks, recreation and open space element of the comprehensive plan. [Ord. 907 § 1 (Att. A), 2016.]
21.06.160 Administrative fees.
The cost of administering the impact fee system for park and recreation facilities impact fees shall be a one-time charge established by the city. This fee, in addition to the actual impact fees, shall be paid by the developer to the city at the time of building permit issuance. [Ord. 907 § 1 (Att. A), 2016.]
21.06.170 Exemption or reductions.
(A) Public housing agencies or private nonprofit housing developers participating in publicly sponsored or subsidized housing programs may apply for exemptions or reductions from the requirements of this chapter.
(B) Private for-profit developers may apply for exemptions or reductions from the requirements of this chapter when all or a portion of the project is designed to accommodate low income residents or special populations that will result in lower impacts on parks facilities.
(C) The determination of the amount of any requested exemptions or reductions shall be based on the procedures of this chapter.
(D) The amount of impact fees exempted or reduced for low income subsidized units shall be replaced by other public funds.
(E) Dwelling units qualifying for impact fee exemptions or reductions shall be occupied by low income or special population residents for a minimum of 15 years. [Ord. 907 § 1 (Att. A), 2016.]
21.06.180 Relationship to environmental impact mitigation.
(A) As provided by RCW 82.02.100, development required to mitigate environmental impacts pursuant to RCW 43.21C.060 shall not be required to pay impact fees under this chapter for the same system improvements.
(B) Nothing in this chapter shall be construed to limit the city’s authority to deny development permit applications when a proposal would result in significant adverse environmental impacts identified in environmental review under SEPA where reasonable mitigation measures are insufficient to address the identified impact. [Ord. 907 § 1 (Att. A), 2016.]
21.06.190 Severability.
If any provision of this chapter or its application to any person or circumstance is held invalid, the remainder of this regulation or the application of the provision to other persons or circumstances shall not be affected. [Ord. 907 § 1 (Att. A), 2016.]