Chapter 3.35 IMPACT FEES

(2) Promote orderly growth and development by requiring that development pay a proportionate share of the cost of new facilities needed to serve growth; and

(3) Ensure that impact fees are imposed through established procedures and criteria so that specific developments do not pay arbitrary fees or duplicate fees for the same impact. [Ord. 2007-07 § 1, 2007.]

3.35.030 Findings.

The La Center city council finds and declares that:

(1) New residential development causes increased demands on city public facilities, including streets, parks and recreation facilities;

(2) Projections indicate that such development will continue and will place ever-increasing demands on the city to provide necessary public facilities;

(3) To the extent that new development places demands on the public facility infrastructure, those demands should be partially satisfied by shifting a proportionate share of the responsibility for financing the provisions of such new facilities from the public at large to the developments actually creating the demands; and

(4) The imposition of impact fees upon residential development in order to finance specified public facilities, the demand for which is created by such development, is in the best interest of the general welfare of the city and its residents, is equitable, and does not impose an unfair burden on such development by requiring new development to pay more than its fair or proportionate share of the cost, and is reasonably necessary in order to provide the necessary public facility infrastructure to serve new development as planned for in the La Center comprehensive growth management plan (CGMP). [Ord. 2007-07 § 1, 2007.]

3.35.035 Authority.

The city has authorized the use of impact fees for allowable public purposes by adoption of the La Center CGMP and the La Center capital facilities plan (CFP). The La Center CFP identifies each of the city’s major capital facilities and services; establishes levels of service (LOS) standards for each capital facility; and identifies specific capital facilities construction or enhancement projects for which impact fees may be used. Those capital facilities projects identified in the current and amended La Center CFP may be fulfilled by use of impact fees authorized in this chapter. [Ord. 2007-07 § 1, 2007.]

3.35.040 Definitions.

As used in this chapter:

(1) “Capital facilities plan” means the La Center capital facilities plan, as amended.

(2) “City” means the city council of La Center, Washington.

(3) “Development” means any subdivision or short platting of the land, including division of land into five-acre lots, the construction or reconstruction of residential, commercial, industrial, public or any other building or building space, or the change in use of a building or land if approval thereof is required pursuant to the La Center design review or development review process.

(4) “Development approval authority” means the city official having statutory or code authority to approve a development.

(5) “Development review” means the La Center design review process for single-family or multifamily residential development. Development review approval is required for new construction, additions to existing buildings and mobile home placement. The term “development review,” as used in this chapter, shall not be deemed to include:

(a) Permits required for the remodeling, rehabilitation, or other improvements to an existing structure, including accessory dwellings, fences or hedges; provided, that there is no increase in the applicable unit of measure (for nonresidential construction) or number of dwelling units (for residential construction) resulting therefrom; and

(b) Permits required for temporary dwellings.

(6) “Impact fee” means the fee levied pursuant to this chapter as a condition of issuance of development approval.

(7) “Low-income housing” means a single-family or multifamily rental housing development, the construction of which is either undertaken by a housing authority operating pursuant to Chapter 35.82 RCW or financially assisted pursuant to a federal, state, or local governmental low-income housing program; provided, that the term shall apply only to the number of units within such housing development as are required to be rented to low-income tenants.

(8) “Project improvement” means site improvement and facilities that are planned and designed to provide service for a particular development project and that are necessary for the use and convenience of the occupants or users of the project, and are not system improvements. No improvement or facility included in the capital facilities plan shall be considered a project improvement.

(9) “Public facilities” means the following capital facilities owned or operated by government entities:

(a) Public streets and roads; and

(b) Parks, open space, trails, and recreation facilities.

(10) “Service area” means the corporate limits of the city of La Center or a geographic area described in the city capital facilities plan in which a defined set of public facilities provides service to development within the area. Service areas may be separately described in the La Center capital facilities plan for each type of public facility.

(11) “System improvements” means public facilities that are included in the capital facilities plan and are designed to provide service to service areas within the community at large, in contrast to project improvements.

(12) “Unit of measure” is either one single-family residential unit or one multifamily residential dwelling unit. [Ord. 2007-07 § 1, 2007.]

3.35.060 Applicability of impact fees.

This chapter shall be uniformly applicable to development that occurs within the city limits or within a designated service area. [Ord. 2007-07 § 1, 2007.]

3.35.070 Imposition of fees.

(1) No development review approval shall be granted for development in a designated service area as defined in this chapter unless the impact fee is calculated and imposed pursuant to this chapter. Except if otherwise exempt, the city shall not issue a required development review approval unless and until all impact fees have been paid prior to issuance of the development review approval.

(2) For single-family residential subdivisions and short subdivisions hereinafter approved, the per lot impact fee shall be calculated at the time of preliminary plat or short plat approval, noted on the face of the final plat, and imposed on a per lot basis at the time of final development review approval. For new multifamily development hereafter approved, the impact fee shall be calculated at the time of site plan approval unless deferred to development review approval, because the nature of the development is then not sufficiently defined to permit such calculation, thereafter the impact fee shall be imposed at the time of final development review approval. Notwithstanding the foregoing, the fee shall be recalculated for development review approvals filed more than three years following the date of the applicable preliminary plat, preliminary short plat, or site plan approval.

(3) For development not necessitating or having been previously granted preliminary plat, preliminary short plat or site plan approval, including mobile home park approval, the impact fee shall be calculated and imposed at the time of development review approval. [Ord. 2007-07 § 1, 2007.]

3.35.080 Establishment of development service areas.

Service areas may vary by type of public facility and, when established, are shown on the La Center CGMP or the La Center CFP.

(1) Service areas provide a nexus between those paying the fees and receiving the benefits and ensure that those developments paying impact fees receive substantial benefits.

(2) Overlay service areas may be established for identified system improvements designed to serve geographic areas whose boundaries are not generally contiguous with established service areas.

(3) Additional or revised service areas may be designated by the city council through amendment to the facilities plan upon consideration of the following factors:

(a) The La Center CGMP;

(b) Standards for adequate public facilities incorporated in the La Center CFP;

(d) The need for and cost of unprogrammed capital improvements necessary to support projected development; and

(e) Such other factors as the council may deem relevant.

(4) After consideration of the criteria for establishing service areas as found in this section, the city council finds that the one service area for the La Center streets, parks and trail system is the city limits. [Ord. 2007-07 § 1, 2007.]

3.35.090 Traffic impact fee formula.

The impact fee component for streets and roads shall be calculated using the following formula:

TIF = BF x T – C

(1) “TIF” means the traffic impact component of the total development impact fee.

(2) “BF” means the “base fee,” that is, the per trip fee, in dollar amounts, for each unit of measure, for each service area, as described in the current La Center impact fee schedule. Such rate shall be established in the capital facilities plan by estimating the cost of anticipated growth-related roadway projects divided by the projected number of growth-related trips within a service area.

(3) “T” means “trips,” that is, the average rate of trips generated per unit of measure on a weekday by a land use as identified in the Trip Generation Manual, Institute of Transportation Engineers, Fifth Edition. Trips generated by a type of land use are calculated and identified in the La Center impact fee schedule attached to the ordinance codified in this chapter and incorporated herein by this reference. The city shall calculate the average number of trips generated by a proposed development either by a traffic study provided by the applicant and approved by the city, or by selecting the appropriate land use code from the La Center impact fee schedule and applying the applicable trip equation for the selected land use code. In the absence of a land use code precisely fitting the development proposal, the mayor or his/her designee shall select the most similar code and may make appropriate adjustments to the trip equation applicable thereto. In selecting the appropriate land use code and in making adjustments thereto, the mayor or his/her designee shall be guided by the Trip Generation Manual, Institute of Transportation Engineers, Fifth Edition.

(4) “C” means a “credit” for the developer’s contributions, in the form of easements, dedications or payments in lieu of fees, toward traffic system improvement projects identified in the La Center CFP. Credits may be approved by the city if the review authority finds that the value of the land or improvements for which a credit is sought is accurately documented and that the contribution substantially furthers the completion of a street improvement identified in the La Center CFP. [Ord. 2007-07 § 1, 2007.]

3.35.100 Park impact fee formula.

The impact fee component for parks, recreational facilities, and trails shall be calculated using the following formula:

PIF = (BF x PPU) x DU – A

(1) “PIF” means the park, recreation, and trails component of the total development impact fee.

(2) “BF” means “base fee,” that is, the adjusted cost per person in dollars for all land appraisal, acquisition, and development for parks, recreation or trail facilities identified in the La Center CFP. The base fee equals: the total La Center CFP cost estimates for parks, recreations and trail acquisition and development; minus the estimated public capital facility costs necessary to satisfy existing deficiencies in services based upon the adopted level of service; divided by the projected growth in population during the planning period. The base fee shall be adjusted periodically, but not more often than once every year.

(3) “PPU” means “persons per dwelling unit,” that is, the adopted average number of people per dwelling unit. The adopted average number of persons per dwelling unit in La Center is 2.9 people per single-family residential unit and 2.3 people per multifamily dwelling unit.

(4) “DU” means “dwelling units,” that is, the number of dwelling units proposed by a specific proposal subject to the design review approval process.

(5) “A” means an “adjustment,” that is, a reduction in the impact fee charged per unit as a result of a developer’s contributions, in the form of easements, dedications or payments in lieu of fees, toward parks, recreation, and trail system improvement projects identified in the La Center CFP; and the city discount factor. Credits may be approved by the city if the review authority finds that the value of the land or improvements for which a credit is sought is accurately documented and that the contribution substantially furthers the completion of a park and recreation improvement project identified in the La Center CFP. [Ord. 2007-07 § 1, 2007.]

3.35.110 Impact fee revision.

Impact fee rates shall be adjusted periodically to reflect changes in costs of land acquisition and construction, facility plan projects, and anticipated growth. Such adjustments shall only become effective upon adoption by the city council of a modification to the La Center CFP; provided, however, that a capital facilities plan may contain a provision for automatic revision of an impact fee rate no more often than annually to reflect the change in a generally recognized and applicable inflation/deflation index. [Ord. 2007-07 § 1, 2007.]

3.35.120 Impact fee schedule.

The mayor or his/her designee shall maintain and update as necessary a schedule of current impact fee rates, the La Center impact fee schedule. [Ord. 2007-07 § 1, 2007.]

3.35.130 Calculation of impact fee.

(1) The impact fee for a residential development shall be computed by applying the traffic impact fee and parks and recreation impact fee, formulae set out in LCMC 3.35.090 and 3.35.100, and combining the results.

(2) If the development for which approval is sought contains a mix of uses, the impact fee must be separately calculated for each type of use.

(3) The development approval authority setting the impact fee upon application by the development supported by studies and date may reduce or eliminate such fee if it is shown that:

(a) The formulae contained in LCMC 3.35.090 and/or 3.35.100 do not accurately reflect traffic or park and recreation capital facilities project costs; or

(b) Due to unusual circumstances:

(i) Facility improvements identified for the applicable service area are not reasonably related to the proposed development; or

(ii) Such facility improvements will not reasonably benefit the proposed development; or

(iii) The current development proposal implements a concomitant rezone agreement or other development approval pursuant to which public facilities were dedicated or constructed prior to April 1, 1997, which are of benefit to the community at large and which otherwise would likely have been designated as system improvements.

(4) Prior to making an application for development review approval or site plan approval, an applicant may request an estimated impact fee determination from the city, and said determination shall be based upon information supplied by the applicant sufficient to permit calculation of the impact fee. The estimated impact fee determination shall not be binding upon the city. [Ord. 2007-07 § 1, 2007.]

3.35.140 Collection of impact fees.

Impact fees imposed under this chapter shall be due and payable at the time of building permit issuance. The public works director may authorize the deferral of payment of impact fees until such time as the development actually imposes an increased demand on public systems and facilities. Any deferral in the payment of applicable impact fees allowed by the public works director shall be secured by a financial guarantee in a form acceptable to the finance director. [Ord. 2009-06, 2009; Ord. 2007-07 § 1, 2007.]

3.35.150 Impact fee exemptions.

(1) The city council may grant an impact fee exemption to low-income housing, as defined in LCMC 3.35.040(7); provided, any exemption shall be paid into the impact fee fund established under LCMC 3.35.180 by the city out of general funds.

(2) The city may grant a total or partial exemption from impact fees for housing developments not qualifying as low-income housing as defined in LCMC 3.35.040(7), but to be owned and occupied by, or leased to, low-income persons; provided, any such exemption shall be subject to:

(a) Provision being made for payment of the impact fee from public funds other than impact fee accounts; and

(b) Adequate documentation that the housing meets appropriate standards regarding household income, rent levels, sales price, location, and number of units; and

(c) In the case of rental dwellings, adequate documentation that such housing will remain exclusively available to low-income households at affordable rents for a minimum period of 15 years; and

(d) In the case of owner-occupied dwellings, adequate documentation that such housing will only be sold or leased at affordable rents to another low-income household for a minimum period of 10 years; and

(e) Adequate documentation that in the event that use of the property during the prescribed period is no longer for low-income housing, the owner shall pay the impact fee plus interest from which the owner or any prior owner was exempt.

(3) The impact fee for an exempt development shall be calculated as provided for in this chapter and paid with public funds. Such payment may be made by including such amount(s) in the public share of system improvements undertaken within the applicable service area. [Ord. 2007-07 § 1, 2007.]

3.35.160 Impact fee credits.

(1) The developer shall be entitled to a credit against the applicable impact fee component for any dedication of land for, improvement to, or new construction of any system improvements provided by the developer (or the developer’s predecessor in interest) to facilities that are/were identified in the La Center CFP and that either (a) are required by the city as a condition of approval for the immediate development proposal, or (b) were undertaken subsequent to April 1, 1997, pursuant to a contract with the city or a condition of development approval if such prior dedication, improvement or construction is located within the same service area as the immediate development proposal and application for credit recognition is submitted no later than January 1, 1998.

(2) Additionally, the developer may be provided a credit against the impact fee in an amount up to 10 percent of the traffic component thereof for the value of mass transit facilities that are approved by the city and made a condition of approval for the development.

(3) The amount of the credit shall be based upon appraised property value at the time of dedication and actual and reasonable construction costs of any system improvement. The feepayer shall be responsible for supplying an independent appraisal based upon objective standards which indicates the fair market value of dedicated land, improvements and/or facilities. Where impact fees are owing prior to completion of a system improvement undertaken by the developer, the impact fee shall be paid subject to a refund reflecting actual and reasonable construction costs.

(4) In the event the amount of the credit is calculated to be greater than the amount of the impact fee due, the developer may apply such excess credit toward impact fees imposed on other developments within the same service area. [Ord. 2007-07 § 1, 2007.]

3.35.170 Appeals.

The determination of the development approval authority as to the applicability and amount of any credit against an impact fee shall be appealable as provided for in this section.

(1) Any feepayer may pay an impact fee imposed by this chapter under protest in order to obtain development review approval. No appeal shall be permitted unless and until impact fees at issue have been paid.

(2) Impact fees set pursuant to residential subdivision, residential short subdivision, planned unit development (PUD) or site plan approval shall be filed in conjunction with, and within the limitation applicable to, the available administrative appeal from such approval.

(3) In the case of impact fees first imposed or recalculated or credits determined in conjunction with a development review approval not involving subdivision, short subdivision, PUD or site plan approval, the appeal shall be filed within 15 calendar days of the issuance of the determination of the impact fee or credit, and shall be heard and decided by the La Center city council. [Ord. 2007-07 § 1, 2007.]

3.35.180 Impact fee fund.

There is created and established a special purpose, nonlapse impact fee fund. The city clerk/treasurer shall establish separate accounts within such fund and maintain records for each such account whereby impact fees collected can be segregated by type of facility and by service area.

(1) All interest shall be retained in the account and expended for the purpose for which the impact fees were imposed.

(2) By April of each year, the city clerk/treasurer shall provide a report for the previous calendar year on each impact fee account showing the source and amount of moneys collected, earned or received and system improvements that were financed in whole or part by impact fees. [Ord. 2007-07 § 1, 2007.]

3.35.190 Interlocal agreement.

The mayor or his/her designee, subject to review by the city attorney, shall negotiate an interlocal governmental agreement with Clark County, the purpose of which is to govern the collection, management and distribution of impact fees within the La Center urban growth area. Such agreement shall be ratified by a vote of the city council prior to becoming effective. [Ord. 2007-07 § 1, 2007.]

3.35.200 Expenditures.

(1) Impact fees for system improvements shall be expended only in conformance with the La Center CFP. Impact fees shall not be used to make up for deficiencies in facilities serving existing developments, nor shall they be used for facility maintenance or operation.

(2) Impact fees may be spent for public improvements, including but not limited to public facilities planning, land acquisition, site improvements, necessary off-site improvements, construction, engineering, architectural, permitting, financing, and administrative expenses, applicable impact fees or mitigation costs, capital equipment pertaining to a capital facility identified in the La Center CFP and any other expenses which may be capitalized.

(3) In the event that bonds or similar debt instruments are or have been issued for the advanced provision of public improvements for which impact fees may be expended, impact fees may be used to pay for the principal 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.

(4) Impact fees shall be expended or encumbered for a permissible use within six years of receipt, unless there exists an extraordinary and compelling reason for fees to be held longer than six years. Such extraordinary or compelling reasons shall be identified in written findings by the city council. [Ord. 2007-07 § 1, 2007.]

3.35.210 Refund.

(1) The current owner of property on which an impact fee has been paid may receive a refund of such fee if the city fails to expend or encumber the impact fees within six years of when the fees were paid, or such other period of time established pursuant to LCMC 3.35.200, on public facilities intended to benefit the development activity for which the impact fees were paid. The current owner likewise may receive a proportionate refund where the public funding of applicable service area projects by the end of such six-year period has been insufficient to satisfy the ratio of public-to-private funding for such service area as established in the capital facilities plan. The city shall notify potential claimants by first class mail deposited with the United States Postal Service at the last known address of the claimants.

(2) The request for refund money must be submitted to the city council in writing, within one year of the date the right to claim the refund arises, or the date the notice is given, whichever is later. Any impact fees that are not expended within these time limitations, and for which no application for refund has been made within this one-year period, shall be retained and expended on the indicated capital facilities. Refunds of impact fees under this subsection shall include interest earned on the impact fees.

(3) A developer may request and shall receive a refund, including interest earned on the impact fees, when the development review approval for which the impact fee has been paid has lapsed for noncommencement of construction. A partial refund shall be provided where the project for which a development review approval has been granted has been altered resulting in a decrease in the amount of the impact fee due. [Ord. 2007-07 § 1, 2007.]

3.35.220 Impact fee as additional and supplemental requirement.

The impact fee is additional and supplemental to, and not in substitution of, any requirements imposed by the city on the development of land or the issuance of development review approval; provided, that any other such city development regulation which would require the developer to undertake dedication or construction of a facility plan shall be imposed only if the developer is given a credit against impact fees as provided for in LCMC 3.35.160. [Ord. 2007-07 § 1, 2007.]