Chapter 22.100
TRANSPORTATION IMPACT FEES
Sections:
22.100.010 Findings and authority.
22.100.040 Assessment of transportation impact fees.
22.100.080 Independent fee calculations.
22.100.100 Creation of impact fee fund.
22.100.130 Interlocal agreements.
22.100.140 Existing authority unimpaired.
22.100.010 Findings and authority.
A. The city council hereby finds and determines that new growth and development, including but not limited to new residential, commercial, retail, office, cultural, educational, and industrial development, in the City will create additional demand and need for public transportation facilities, including but not limited to public streets, roadways, multimodal, and related improvements within the City, and the city council finds that new growth and development should pay a proportionate share of the cost of new facilities needed to serve the new growth and development.
B. The City has conducted extensive studies documenting the procedures for measuring the impact of new developments on transportation facilities, has prepared certain transportation impact fee rate studies, including the South Barker Corridor Study, dated February, 2020, and South Barker Corridor Transportation Impact Fee Rate Study, dated September, 2020. All such studies are hereby adopted and incorporated into this title by reference. Based on the foregoing, the City has prepared a formula and method of calculating transportation impact fees to serve new development that provides a balance between transportation impact fees, public funds, and other sources of funds. The data and method of calculating contained in the transportation impact fee rate studies are consistent with the data collected as part of the development of the Comprehensive Plan, the traffic impact analyses completed for projects, and data and models developed by Spokane Regional Transportation Council and other jurisdictions. The transportation impact fee rate studies utilize a methodology for calculating transportation impact fees that fulfills all of the requirements of RCW 82.02.060(1). Copies of all studies shall be kept on file with the city clerk and shall be available to the public for review.
C. Pursuant to Chapter 82.02 RCW, the city council adopts this chapter to adopt and assess transportation impact fees.
D. The provisions of Chapter 22.100 SVMC shall be liberally construed in order to carry out the purposes of the city council in establishing the transportation impact fee program. (Ord. 20-026 § 3 (Exh. A), 2020).
22.100.020 Definitions.
As used in Chapter 22.100 SVMC, the following words and terms shall have the following meanings unless the context clearly requires otherwise. Terms otherwise not defined herein shall be defined pursuant to Appendix A of this code or RCW 82.02.090.
A. “Applicant” means a person who applies for a development activity permit and who is the owner of the subject property according to the records of Spokane County, or the owner’s authorized agent. For purposes of transportation impact fee deferral requests pursuant to SVMC 22.100.050, “applicant” includes an entity that controls the applicant, is controlled by the applicant, or is under common control with the applicant.
B. “Building permit” means the official document or certification that is issued by the City and that authorizes the construction, alteration, enlargement, conversion, reconstruction, remodeling, rehabilitation, erection, tenant improvement, demolition, moving or repair of a building or structure, as required and issued pursuant to SVMC Title 24.
C. “Development activity” means any construction or expansion of a building, structure, or use, or any change in use of a building or structure, or any changes in the use of land, that creates additional demand and need for public facilities. It does not include buildings or structures constructed by a regional transit authority or buildings or structures constructed as shelters that provide emergency housing for people experiencing homelessness, or emergency shelters for victims of domestic violence.
D. “Development approval” means any written authorization from the City that authorizes the commencement of development activity.
E. “Feepayer” is a person, corporation, partnership, an incorporated association, or any other similar entity, or department or bureau of any governmental entity or municipal corporation commencing a land development activity that creates the demand for additional public facilities, and which requires the issuance of a building permit. “Feepayer” includes an applicant for a transportation impact fee credit.
F. “Impact fee” means a payment of money imposed upon development as a condition of development approval to pay for public facilities needed to serve new growth and development, and that is reasonably related to the new development that creates additional demand and need for public facilities, that is a proportionate share of the cost of the public facilities, and that is used for facilities that reasonably benefit the new development. “Impact fee” does not include a reasonable permit fee, an application fee, or the cost for reviewing independent fee calculations or other traffic studies prepared for safety, SEPA, or other purposes defined in the Spokane Valley Street Standards or in this code.
G. “Impact fee account” or “account” means the account(s) established for each service area for the system improvements for which impact fees are collected. The accounts shall be established pursuant to Chapter 22.100 SVMC, and shall comply with the requirements of RCW 82.02.070.
H. “Independent fee calculation” means the impact fee calculation and/or economic documentation prepared by a feepayer to support the assessment of an impact fee other than by the use of schedule set forth in the transportation impact fee rate study, or the calculations prepared by the City where none of the fee categories or fee amounts in the schedules in Chapter 22.100 SVMC accurately describe or capture the impacts of the new development on public facilities.
I. “Interest” means the interest rate earned by local jurisdictions in the state of Washington local government investment pool, if not otherwise defined.
J. “ITE manual” means the current version of the Institute of Transportation Engineers (ITE) Trip Generation Manual, as amended from time to time, and the most current version of the ITE Trip Generation Handbook as referenced therein.
K. “Pass-by trip rates” means those pass-by rates set forth in the transportation impact fee rate studies, as amended from time to time.
L. “Project improvements” means site improvements and facilities that are planned and designed to provide service for a particular development and that are necessary for the use and convenience of the occupants or users of the project, and are not system improvements. An improvement or facility included in the City’s capital facilities plan is not considered a project improvement.
M. “Public facilities” means publicly owned streets and roads, including related sidewalk, bike lanes, adjacent multi-use trails, and streetscape improvements required by the City’s comprehensive plan and related development regulations, including adopted Street Standards, within the public rights-of-way.
N. “Rate study” or “transportation impact fee rate study” means the set of transportation impact fee rate studies adopted by city council that define the methodologies, service standards, projects, costs, deficiencies, fair-shares, and rate tables.
O. “Rate table” refers to schedule(s) containing the transportation impact fee rate per p.m. peak hour trip or unit of land use (e.g., single-family dwelling unit, square footage of leasable retail space, etc.) as defined by the Transportation Impact Fee Rate Study, and as may be amended from time to time. The rate table shall be incorporated into the City’s adopted master fee schedule, and shall be maintained by the city clerk and shall be available for public inspection during regular business hours and/or electronically on the City’s website.
P. “Service area” means a geographic area defined by the City in which a defined set of public facilities provide service to development within the identified area. The City has identified the service areas, based on sound planning and engineering principles, but these service areas may change based on the nature of development and the public facilities needs identified to support development across the City. The service areas are defined in the transportation impact fee rate studies. Maps depicting the service areas are set forth in the rate studies and shall also be maintained by the city clerk and shall be available for public inspection during regular business hours and/or electronically on the City’s website.
Q. “System improvements” means public facilities included in the capital facilities plan and which are designed to provide service to service areas within the community at large, in contrast to project improvements. (Ord. 20-026 § 3 (Exh. A), 2020).
22.100.030 Applicability.
Except as may otherwise be provided herein, all development activity within the geographical services areas established in the transportation impact fee rate studies shall be assessed the transportation impact fee applicable to the type of development in the amounts set forth in the current rate table as adopted by the city council. (Ord. 20-026 § 3 (Exh. A), 2020).
22.100.040 Assessment of transportation impact fees.
A. Transportation impact fees shall be assessed at the issuance of a building permit for each unit in a development, using either the current rate set forth in the adopted transportation impact fee rate table or an independent fee calculation as approved by the City. The transportation impact fee rate table is incorporated into the City’s master fee schedule, and is adopted and incorporated by reference herein as if set forth in full.
B. Transportation impact fees shall be paid at the issuance of a building permit, except as otherwise provided pursuant to SVMC 22.100.050.
C. For commercial development involving multiple users, transportation impact fees shall be assessed and collected prior to issuance of building permits that authorize completion of tenant improvements for each use.
D. Applicants that have been awarded credits prior to the submittal of the complete building permit application pursuant to SVMC 22.100.070 shall submit, along with the complete building permit application, a copy of the letter or certificate prepared by the City pursuant to SMVC 22.100.070 setting forth the dollar amount of the credit awarded. Transportation impact fees, as determined after the application of appropriate credits, shall be collected from the applicant prior to issuance of the building permit for each unit in the development unless deferred per SVMC 22.100.050.
E. For mixed use buildings or development, transportation impact fees shall be imposed based on the total p.m. peak hour trip generation from each individual use, as defined in the rate table. Where internal trip capture is expected based on the ITE Trip Generation Manual or Handbook, manual calculations may be submitted for review and approval pursuant to SVMC 22.100.080.
F. The City shall establish the transportation impact fee rate for a land use that is not listed in the rate table based on (1) the most similar land use category identified in the rate table, or (2) the base rate and the most similar land use category identified in ITE Trip Generation Manual, as documented by a trip generation and distribution letter in accordance with Section 3.2 of the Spokane Valley Street Standards, all pursuant to SVMC 22.100.080. The applicant shall submit all information requested by the City for purposes of determining the impact fee rate pursuant to SVMC 22.100.080.
G. The City shall place a hold on permits for development approval and no permits shall be issued unless and until the transportation impact fees required by Chapter 22.100 SVMC, less any permitted exemptions, credits or deductions, have been paid or lien recorded.
H. An applicant may request that the transportation impact fee be calculated in advance of building permit issuance, but any such advance calculation shall not be binding on the City and should only be used as guidance by the applicant, except as otherwise provided pursuant to SVMC 22.100.050. There is no vested right to pay a particular transportation impact fee in advance of building permit issuance. If the city council revises the transportation impact fee formula or the transportation impact fees themselves prior to the time that a building permit is issued for a particular development, the formula or fee amount in effect at the time of building permit issuance shall apply to the development. (Ord. 20-026 § 3 (Exh. A), 2020).
22.100.050 Deferral.
A. An applicant for single-family detached and attached residential construction may request deferral of collection of transportation impact fees until certificate of occupancy or 18 months from the date of the original building permit issuance, whichever occurs first. The following requirements shall apply to any application for deferral of transportation impact fees:
1. The request for deferral must be made in writing prior to the building permit issuance, and consistent with the requirements of SVMC 22.100.050, to defer payment of the transportation impact fee until certificate of occupancy or equivalent certification.
2. To receive a deferral, an applicant must:
a. Submit a deferred impact fee application and acknowledgment form for each single-family attached or detached residence for which the applicant wishes to defer payment of the transportation impact fees;
b. Pay the applicable deferral application fee;
c. Grant and record at the applicant’s expense a deferred transportation impact fee lien in a form approved by the City against the property in favor of the City in the amount of the deferred impact fee that:
i. Includes the legal description, tax account number, and address of the property;
ii. Requires payment of the impact fees to the City prior to certificate of occupancy or equivalent certification, or 18 months from the date of the original building permit issuance, whichever occurs first;
iii. Is signed by all owners of the property, with all signatures acknowledged as required for a deed, and is recorded in Spokane County;
iv. Binds all successors in title after the recordation; and
v. Is junior and subordinate to one mortgage for the purpose of construction upon the same real property granted by the person who applied for the deferral of transportation impact fees.
B. The amount of transportation impact fees deferred shall be determined by the fees in effect at the time the applicant applies for a deferral.
C. Prior to any required dates for payment, the applicant may pay the deferred amount in installments, with no penalty for early payment. The City may set a minimum installment amount.
D. If closing of the first sale of the property for which transportation impact fees were deferred occurs within 18 months of the building permit issuance, payment of all deferred impact fees is required to take place prior to or upon closing, and the seller shall be strictly liable for payment of all deferred impact fees to the City at that time. The City bears no responsibility for determining whether the seller and the buyer have contractually agreed for the buyer to pay the deferred fees, and the City reserves the right to institute legal proceedings against the seller, if necessary, to collect any deferred impact fees that remain unpaid after closing. In addition, the City may withhold issuance of a certificate of occupancy, final inspection approval, or equivalent certification required for occupancy of the residence until all impact fees have been paid in full.
E. If closing of the first sale of the property for which transportation impact fees were deferred does not occur within 18 months of the building permit issuance, then all deferred impact fees shall become immediately due and owing to the City, and the applicant shall be strictly liable for payment of all deferred impact fees to the City at that time. If the applicant fails, upon request by the City, to immediately pay all deferred impact fees pursuant to Chapter 22.100 SVMC, then the City may foreclose on the lien in the manner provided for in Chapter 61.12 RCW. In addition, the City may withhold issuance of a certificate of occupancy, final inspection approval, or equivalent certification required for occupancy of the residence until all impact fees have been paid in full.
F. Upon receipt of final payment of impact fees deferred under this section, the City shall execute a release of deferred impact fee lien for each single-family attached or detached residence for which the transportation impact fees have been received. The applicant, or property owner at the time of release, shall be responsible for recording the lien release at his or her expense.
G. The extinguishment of a deferred impact fee lien by the foreclosure of a lien having priority does not affect the obligation to pay the transportation impact fees as a condition of certificate of occupancy or equivalent certification, or at the time of closing of the first sale.
H. Each applicant for a single-family attached or detached residential construction permit, in accordance with his or her contractor registration number or other unique identification number, is entitled to annually receive deferrals under SVMC 22.100.050 for the first 20 single-family residential construction building permits on an annual basis. (Ord. 20-026 § 3 (Exh. A), 2020).
22.100.060 Exemptions.
For the purposes of Chapter 22.100 SVMC only, the following are exempt from the payment of transportation impact fees:
A. Replacement of a commercial structure with a new structure of the same size and use or a residential structure with the same number of residential dwelling units, both at the same site or lot, where demolition of the prior commercial or residential structure occurred within the prior two years. Replacement of a commercial structure with a new commercial structure of the same size shall be interpreted to include any structure for which the gross square footage of the building will not be increased by more than 100 square feet and the primary use of the commercial space is the same. It shall be the feepayer’s responsibility and burden to establish the existence of a qualifying prior use.
B. Expansions of existing residential structures that do not add residential dwelling units.
C. Alteration of an existing nonresidential structure that does not expand the usable space, add any residential units, or result in a change in use.
D. Miscellaneous improvements that do not create additional demand and need for public facilities, including, but not limited to, fences, walls, swimming pools, and signs.
E. Demolition or moving of a structure.
F. Re-use or change in use of an existing structure that does not create additional demand and need for public facilities. It shall be the feepayer’s responsibility and burden to establish that no additional demand is created by the re-use or change in use. For a change in use of an existing structure that does create additional demand and need for public facilities, the City shall collect transportation impact fees for the new use based on the schedules in the rate table, less the fees that would have been payable as a result of the prior use. (Ord. 20-026 § 3 (Exh. A), 2020).
22.100.070 Credits.
A. An applicant may request a credit for the total value of dedicated land for, improvement to, or new construction of any system improvements provided by the applicant. Credits will only be given if the land, improvements, and/or facility constructed are for one or more of the transportation projects listed in the rate study as the basis for calculating the transportation impact fee.
B. Credits shall be based on appraised value made by an appraiser approved of by the City. The appraiser must be a Washington State certified appraiser or must possess other equivalent certification and shall not have a fiduciary or personal interest in the property being appraised. A description of the appraiser’s certification shall be included with the appraisal, and the appraiser shall certify that he/she does not have a fiduciary or personal interest in the property being appraised. The applicant shall be responsible for payment of the cost of the appraisal and all associated or related costs.
C. After receiving the appraisal, and where consistent with the requirements of SVMC 22.100.070, the City shall provide the applicant with a letter or certificate setting forth the dollar amount of the credit, the reason for the credit, the legal description of the site donated where applicable, and the legal description or other adequate description of the project or development to which the credit may be applied. The applicant must sign and date a duplicate copy of such letter or certificate indicating the applicant’s agreement to the terms of the letter or certificate, and return such signed document to the City before the impact fee credit will be awarded. The failure of the applicant to sign, date, and return such document within 60 calendar days shall nullify the credit. The credit must be used within 72 months of the award of the credit.
D. Any claim for credit must be made prior to issuance of a building permit, provided any claim for credit submitted later than 20 calendar days after the submission of an application for a building permit shall constitute a waiver and suspension of timelines established by state and/or local law for processing of permit applications.
E. In no event shall the credit exceed the amount of the impact fees that would have been due for the proposed development activity.
F. No credit shall be given for project improvements or right-of-way dedications for direct access improvements to and/or within the subject development above and beyond what is proposed in the capital facilities plan. (Ord. 20-026 § 3 (Exh. A), 2020).
22.100.080 Independent fee calculations.
A. If in the judgment of the city manager, none of the land uses, fee categories or fee amounts set forth in the rate tables accurately describe or capture the impacts of a new development on transportation facilities, the City may prepare independent fee calculations and the city manager may impose alternative fees on a specific development based on those calculations. The default method for calculating such independent fee calculations shall be based on the base rate and the most similar land use category identified in the ITE Trip Generation Manual, as documented by a trip generation and distribution letter in accordance with Section 3.2 of the Spokane Valley Street Standards; provided, however, other methods may be used as determined to be necessary to accurately capture the impact from development. The alternative fees and the calculations shall be set forth in writing and shall be mailed to the applicant.
B. Alternatively, if an applicant believes that the applicant’s proposed development activity does not fall under one of the fee categories set forth in the rate table, the applicant may, at the applicant’s option, prepare and submit to the City an independent fee calculation for the development activity for which a development permit is being sought. The documentation submitted shall be prepared by a licensed professional engineer and shall identify a development activity or land use code in the ITE manual that most closely resembles the applicant’s proposed development activity and calculate the applicant’s fees based on the number of trips assigned to that development activity by the ITE manual. The applicant may also choose to prepare an independent trip generation rate/impact fee study to document why no ITE land use category is appropriate as it relates to Chapter 22.100 SVMC. In calculating such fees, the applicant may choose to incorporate applicable pass-by trip rates or mixed-use internalization factors that are supported by evidence and/or transportation engineering best practices. For any independent fee calculation prepared by the applicant, documentation in the form of a report or memo is required to be submitted to the City that explains the methodology, data sources, and calculations. Independent fee calculations shall use the same impact fee rate per p.m. peak hour trip generated as documented in the rate table. The independent rate study shall be limited to documenting the project’s net p.m. peak hour trip generation rate and subsequent impact fee and therefore shall not include travel demand forecasts, trip distribution, project cost, or fare-share cost allocation results.
C. Any applicant electing an independent fee calculation pursuant to SVMC 22.100.080(B) shall pay the City a fee to cover the cost of reviewing the independent fee calculation. No such fee shall apply to calculations performed under SVMC 22.100.080(A). The applicant shall remit all remaining actual costs of the City’s review of the independent fee calculation prior to and as a precondition of the City’s issuance of the building permit.
D. There is a rebuttable presumption that the calculations set forth in the transportation impact fee rate studies and the adopted fees in the rate tables are valid. The city manager shall consider the documentation submitted by an applicant pursuant to SVMC 22.100.080(B), but is not required to accept such documentation or analysis which the city manager reasonably deems to be inapplicable, inaccurate, or not reliable. The city manager may modify or deny the request, or, in the alternative, require the applicant to submit additional or different documentation for consideration. The city manager is authorized to adjust the impact fees on a case-by-case basis based on the independent fee calculation, the specific characteristics of the development, and/or principles of fairness. The City’s decision shall be set forth in writing and shall be mailed to the applicant. (Ord. 20-026 § 3 (Exh. A), 2020).
22.100.090 Adjustments.
Pursuant to and consistent with the requirements of RCW 82.02.060, the transportation impact fee rate study has included and accounted for adjustments for future taxes to be paid by the new development which are earmarked or proratable to the same new public facilities which will serve the new development. The transportation impact fee rate study has included committed and probable external funding in calculating the impact fees. (Ord. 20-026 § 3 (Exh. A), 2020).
22.100.100 Creation of impact fee fund.
A. There is created a special revenue fund in the treasury of the City termed the “transportation impact fee fund” into which all transportation impact fees collected pursuant to Chapter 22.100 SVMC shall be placed and used solely for the purposes identified herein and in conformance with applicable state law. Interest earned on the fees shall be retained in the fund and expended for the purposes for which the transportation impact fees were collected.
B. On an annual basis, the City shall provide a report on the transportation impact fee fund showing the source and amount of all moneys collected, earned, or received, and system improvements that were financed in whole or in part by the transportation impact fees.
C. Transportation impact fees shall be expended or encumbered for a permissible use within 10 years of receipt, unless there exists an extraordinary and compelling reason for fees to be held longer than 10 years. The city council shall adopt findings identifying the extraordinary and compelling reasons in the event any impact fees are held for longer than 10 years and the additional time period fees shall be held. (Ord. 20-026 § 3 (Exh. A), 2020).
22.100.110 Appeals.
A. Applicants or feepayers may appeal an impact fee pursuant to the provisions of SVMC 22.100.110.
B. Any applicant or feepayer may pay the impact fees imposed by Chapter 22.100 SVMC under protest in order to obtain a building permit or certificate of occupancy. Any appeal filed prior to the payment of impact fees shall constitute a waiver and suspension of timelines established by state and/or local law for the processing of permit applications.
C. Appeals regarding the impact fees imposed on any development activity may only be filed by the applicant or feepayer of the property where such development activity will occur.
D. The applicant or feepayer must file a request for review regarding impact fees with the city manager and receive such determination, as provided herein, prior to filing an appeal of the impact fees.
1. The request shall be in writing on the form provided by the City and shall outline the legal and factual bases for why the impact fee at issue should not be required or should be modified. The applicant or feepayer requesting review shall bear the burden of demonstrating the fee is inappropriate or should be modified;
2. The request for review shall be filed no later than 14 calendar days after the feepayer pays the impact fees at issue. The failure to timely file such a request shall constitute a final bar to later seek such review;
3. No administrative fee will be imposed for the request for review; and
4. The city manager shall issue a determination in writing and may uphold the impact fee, modify the impact fee, or determine the impact fee is inappropriate and dismiss the impact fee. Any amount of an impact fee paid in protest that is determined to be inappropriate shall be refunded.
E. Determinations of the city manager with respect to the applicability of the impact fees to a given development activity, the availability or value of a credit, or the city manager’s decision concerning the independent fee calculation, or any other determination which the city manager is authorized to make pursuant to Chapter 22.100 SVMC, may be appealed to the hearing examiner subject to Chapter 17.90 SVMC.
F. Appeals of impact fees shall be heard concurrently with any underlying appeal of the permit as applicable. (Ord. 20-026 § 3 (Exh. A), 2020).
22.100.120 Refunds.
A. If the City fails to expend or encumber the impact fees within 10 years of receipt or such other time set by city council as allowed by law, the current owner of the property for which impact fees have been paid may receive a refund of such fees, provided a refund is not required where extraordinary or compelling reasons exist for holding the fees longer than 10 years, as identified in written findings by the city council. In determining whether impact fees have been expended or encumbered, impact fees shall be considered expended or encumbered on a first-in, first-out basis.
B. 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. A potential claimant or claimants must be the owner of record of the real property against which the impact fee was assessed.
C. Property owners seeking a refund of impact fees must submit a written request for a refund of the fees to the city manager within one year of the date the right to claim the refund arises or the date that notice is given, whichever is later.
D. Any impact fees for which no application for a refund has been made within the one-year period shall be retained by the City and expended on the appropriate public facilities.
E. Refunds of impact fees under Chapter 22.100 SVMC shall include any interest earned on the impact fees by the City.
F. A feepayer may request and shall receive a refund, including interest earned on the impact fees, when the feepayer and/or the feepayer’s successors and assigns do not proceed with the development activity and there has been no impact to the City’s transportation system. A request for a refund pursuant to SVMC 22.100.120 must be accompanied by an acknowledgment that the feepayer’s underlying development approval, including any associated permits, has expired and that any application to reinstate the development approval shall be subject to the payment of impact fees pursuant to Chapter 22.100 SVMC. (Ord. 20-026 § 3 (Exh. A), 2020).
22.100.130 Interlocal agreements.
Consistent with other terms of Chapter 22.100 SVMC and state law, interlocal agreements by and between the City and other government agencies are permissible. (Ord. 20-026 § 3 (Exh. A), 2020).
22.100.140 Existing authority unimpaired.
Nothing in Chapter 22.100 SVMC shall preclude the City from requiring the applicant for development approval to mitigate adverse environmental impacts of a specific development pursuant to the State Environmental Policy Act, Chapter 43.21C RCW, based on the environmental documents accompanying the underlying development approval process, and/or Chapter 58.17 RCW, governing plats and subdivisions; provided, that the exercise of this authority is consistent with the provisions of Chapters 43.21C and 82.02 RCW. (Ord. 20-026 § 3 (Exh. A), 2020).
22.100.150 Review.
The impact fee rate table set forth in the Master Fee Schedule shall be reviewed by the city council from time to time, as it deems necessary and appropriate in conjunction with review of the City’s transportation improvement plan and as necessary to address changes to travel demands, growth forecasts, or the project list. (Ord. 20-026 § 3 (Exh. A), 2020).