Chapter 16.72
DEVELOPMENT IMPACT FEES – PARKS AND TRAFFIC
Sections:
16.72.060 Impact fee calculation.
16.72.070 Calculation of park impact fee.
16.72.080 Calculation of traffic impact fee.
16.72.090 Impact fee schedules.
16.72.100 Assessment of impact fees.
16.72.110 Independent fee calculations.
16.72.130 Adjustments, waivers, and appeals.
16.72.160 Refunds – Parks and traffic.
16.72.170 Impact fee as additional and supplemental requirement.
16.72.010 Purpose.
This chapter is enacted in accordance with RCW 82.02.050 and with the provisions of the Growth Management Act, Chapter 36.70A RCW.
It is the purpose of this chapter to:
A. To assess impact fees for parks and traffic within the city of Sultan;
B. Ensure that adequate facilities are available to serve new growth and development;
C. Promote orderly growth and development by requiring that new development pay a proportionate share of the cost of new facilities needed to serve growth; and
D. 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. 1328-20 § 7 (Exh. A); Ord. 1244-16 § 3 (Exh. A))
16.72.020 Scope.
A. The city shall collect impact fees as set forth in this chapter from any applicant seeking development approval from the city, for any development activity within the city where such development activity requires the issuance of a building permit or approval of site plan, development agreement, or long or short subdivision, except that nonresidential development shall not be assessed park impact fees.
B. Impact fees shall be collected from the applicant as set forth in SMC 16.72.100. (Ord. 1328-20 § 7 (Exh. A))
16.72.030 Definitions.
The following definitions apply to this chapter:
A. “Act” means the Growth Management Act, Chapter 17, Chapter 36.70A.
B. “Applicant” means the named applicant on a development or building permit application and includes an entity that controls the named applicant, is controlled by the named applicant, or is under common control with the named applicant.
C. “Building permit” means an official document of certification which is issued by the building official and which authorizes the construction, alteration, enlargement, conversion, reconstruction, remodeling, erection, demolition, moving or repair of a building or structure, as specified in the Uniform Building Code.
D. “Capital facilities” means the facilities or improvements included in a capital budget.
E. “Designated city official” shall be the public works director or his or her designee.
F. “Director” means the city of Sultan community development director.
G. “Fee payer” is the responsible party for a land use or construction permit for residential development.
H. “Frontage” means that portion of the development property adjacent to an existing or future roadway where access to the site or individual properties is permitted by the city.
I. “Frontage improvements” shall include all improvements as designed in the city comprehensive plan, city standards, or other adopted plan that can include roadway surfacing, curb and gutter, sidewalk, drainage, lighting, landscaping, and signs.
J. “Impact fee” means payment of money imposed by the city of Sultan on the development of all residential improvements pursuant to this chapter as a condition of granting a land use permit and/or a building permit in order to pay for the park and transportation facilities and improvements needed to serve new residential growth and development. “Impact fee” does not include any permit fees, an application fee, the administrative fee for collecting and handling school impact fees, the cost of reviewing independent fee calculations, or the administrative fee required for an appeal pursuant to this chapter.
K. “Impact fee account” means the account established for parks and traffic for which impact fees are collected.
L. “Independent fee calculation” means the school impact calculation, and/or economic documentation prepared by a fee payer to support the assessment of an impact fee other than the adopted fee schedule as adopted by city council.
M. “Interest” means the average interest rate earned by the city in the last fiscal year, if not otherwise defined.
N. “Land use permit” is a consolidated development approval or permit issued pursuant to the zoning code.
O. “Local access classified roadway” means the designated roadway cross-section as included in the city’s adopted standards, comprehensive plan, or a city area master plan.
P. “Owner” means the owner of record of real property or the owner’s authorized agent.
Q. “Project improvements” means site improvements 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.
R. “Residential development” means a house, apartment, mobile home, manufactured home, modular home or other dwelling unit used as a permanent or temporary place of residence.
S. “System improvements” means transportation capital improvements that are identified in the city’s latest adopted 20-year comprehensive plan and are designed to provide services to the community at large. (Ord. 1347-21 § 24; Ord. 1328-20 § 7 (Exh. A); Ord. 1244-16 § 3 (Exh. A). Formerly 16.72.015)
16.72.040 Use of funds.
A. Impact fees collected for community parks and transportation shall only be used in accordance with RCW 82.02.050.
B. Impact fees collected for transportation projects are further subject to the provisions of Chapter 39.92 RCW. (Ord. 1328-20 § 7 (Exh. A))
16.72.050 Exemptions.
A. The following development activities shall be exempt from the payment of all impact fees:
1. The impact fees imposed by this chapter shall not apply to replacement of a residential structure within 12 months of the demolition or removal of the prior residence on the same site;
2. Alteration, expansion, enlargement, remodeling, rehabilitation or conversion of an existing dwelling unit where no additional units are created and the use is not changed;
3. Construction of accessory residential structures that will not create significant impacts on public facilities as determined by the public works director;
4. Alterations of an existing nonresidential structure that do not expand the usable space;
5. Miscellaneous improvements, including but not limited to fences, walls, swimming pools and signs;
6. Demolition or moving of a structure;
7. Nonresidential new development will not be charged a community park impact fee; provided, however, that a nonresidential development may still be required to dedicate land for parks under the State Environmental Policy Act (SEPA), Chapter 43.21C RCW;
8. Construction of municipal or district facilities (school, fire, library, etc.)
9. Any other development or construction activity which falls within an exemption identified in this section, or any other section, or under other applicable laws, as determined by the director. (Ord. 1328-20 § 7 (Exh. A); Ord. 1244-16 § 3 (Exh. A). Formerly 16.72.060)
16.72.060 Impact fee calculation.
Based on the information reviewed and discussed during the preapplication meeting, and as part of an application submittal, the applicant will provide requested information which may include:
A. An impact fee calculation in accordance with the fee schedule as approved by city council;
B. Where applicable, an independent fee calculation along with supporting traffic studies or other analytical requirements may be determined based on the results of the preapplication meeting;
C. If applicable, a development credit calculation which itemizes the estimated value of any dedicated lands or improvements which the applicant has or will make as a condition of a subdivision or site plan approval. Dedicated lands or improvements must be identified as system-wide improvements in the city’s comprehensive plan;
D. The city’s cost of administering the impact fee program shall be established by resolution. (Ord. 1328-20 § 7 (Exh. A))
16.72.070 Calculation of park impact fee.
A. Findings and Authority. The demand for parks and recreation facilities is proportionate to the size of the user population. The larger a population grows, the greater the demand for city parks and recreation facilities. In order to offset the impacts of new residential development on the city’s park system, the city has determined to adjust the current park impact fee consistent with city standards as new development occurs. Impact fees are authorized under the State Environmental Policy Act (SEPA) and the Growth Management Act (GMA) to help offset the cost of capital facilities brought about by new growth and development. Impact fees imposed will be used to acquire and/or develop parks, open space and recreation facilities that are consistent with the capital facilities and park and recreation elements of the Sultan comprehensive plan.
B. Calculation of Park Impact Fee. The impact fee for parks and recreation facilities shall be calculated using the following formula:
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Fee = (T/P x U) – A |
1. “Fee” means the park impact fee.
2. “T” means the total development cost of new facilities. Such costs shall be adjusted periodically, but not more than once every year.
3. “P” means the new population to be served.
4. “U” means the average number of occupants per dwelling unit.
5. “A” means an adjustment for the portion of anticipated additional tax revenues resulting from a development that is proratable to facility improvements contained in the capital facilities plan. (Ord. 1328-20 § 7 (Exh. A); Ord. 1244-16 § 3 (Exh. A). Formerly 16.72.030)
16.72.080 Calculation of traffic impact fee.
The impact fee for roads and traffic infrastructure shall be calculated using the following formula:
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TIF = F x T |
A. “TIF” means the traffic impact fee.
B. “F” means the traffic impact fee rate per trip in dollar amounts. Such rate shall be established by estimating the cost of anticipated growth-related roadway projects contained in the capital facilities plan divided by the projected number of growth-related trips, as adjusted for other anticipated sources of public funds. Such rates shall be adjusted periodically, but not more often than once every year, to reflect changes in the prevailing construction cost index, facility plan projects, and anticipated growth.
C. “T” means the trips generated by a proposed development. (Ord. 1328-20 § 7 (Exh. A); Ord. 1244-16 § 3 (Exh. A). Formerly 16.72.040)
16.72.090 Impact fee schedules.
A. Park and traffic impact fees will be based on the Sultan comprehensive plan and supporting documentation. Traffic impact fees for residential uses shall be based on the type of residential use, single-family, multifamily, or mobile home. Traffic impact fees for nonresidential uses will be based on the number of p.m. peak trips generated by the development.
B. The determination of the number of p.m. peak hour trips shall be made as follows: The City’s consultant shall determine traffic generation. If the applicant wishes to provide an alternative analysis for consideration, the applicant shall retain, at the applicant’s expense, a traffic consultant approved by the city to establish the p.m. peak trip generation for the development. The public works director shall review the consultant’s report, request such additional information as may be needed to establish the trip generation and make a determination as to the traffic impact fee for the project. The applicant shall be notified in writing of the impact fee.
C. Park and traffic impact fees shall be set by city resolution.
D. The impact fee schedule set out in accordance with this chapter and approved by resolution shall be reviewed by the city council as it may deem necessary and appropriate and/or in conjunction with the annual update of the capital facilities plan of the city’s comprehensive plan.
E. Where the hearing examiner determines that there is a flaw in the impact fee program or that a specific exemption or credit should be awarded on a consistent basis or that the principles of fairness require amendments to this chapter, the hearing examiner may advise the city council as to any question or questions that the hearing examiner believes should be reviewed as part of the council’s annual or other periodic review of the fee schedule as mandated by this chapter. (Ord. 1328-20 § 7 (Exh. A))
16.72.100 Assessment of impact fees.
A. Parks. The city shall collect impact fees for parks from any applicant seeking residential development approval from the city where such development activity requires final short or long plat approval, final binding site plan approval, or the issuance of a residential building permit or a mobile home permit. Nonresidential development shall not be assessed a park impact fee. Impact fees shall be collected from the applicant when the building permit is issued, using the fee schedule then in effect or as determined through a development agreement. There shall be no impact fees for accessory dwelling units.
B. Traffic. The city shall collect impact fees for roads from any applicant seeking residential or commercial development approval where such development activity requires a short or long subdivision, site plan, development agreement, conditional use permit or the issuance of a residential or commercial building permit or mobile home permit. Impact fees shall be collected from the applicant when the building permit is issued, using the fee schedule then in effect or as determined through a development agreement. There shall be no impact fees for accessory dwelling units.
C. Collection. Except as otherwise provided in Chapter 16.76 SMC, impact fees imposed by this chapter shall be due and payable at the time of issuance of a building permit, or in the case of manufactured homes at the time of issuance of an installation permit. (Ord. 1328-20 § 7 (Exh. A); Ord. 1244-16 § 3 (Exh. A). Formerly 16.72.050)
16.72.110 Independent fee calculations.
A. Parks and Traffic.
1. If the public works director determines that none of the fee categories set forth in this chapter accurately describe or capture the impacts of the new development, he or she may conduct independent fee calculations and impose alternative fees on a specific development based on those calculations. For example, with respect to group homes, the fees imposed may take into account the size and number of residents proposed to be housed in such group homes, and the public works director may determine the fees to be imposed based on this judgment of the approximate equivalent number of residents that would be generated compared to single-family dwellings.
2. If an applicant can demonstrate that none of the fee categories set forth in this chapter accurately capture the impacts of a new development, then the applicant may prepare and submit to the public works director 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.
3. While there is a presumption that the fees set forth by resolution by the city council are valid for each form of development, the public works director shall consider the independent fee calculation documentation submitted by the applicant. However, the public works director is not required to accept any documentation which he or she reasonably deems to be inaccurate or unreliable and may, in the alternative, require the applicant to submit additional or different documentation for consideration. Based on the information in the public works director’s possession, the public works director is authorized to adjust the impact fee calculation to the specific characteristics of the development activities, and/or according to principles of fairness. (Ord. 1328-20 § 7 (Exh. A))
16.72.120 Impact fee credits.
An applicant can request that a credit or credits be awarded for the value of required dedicated land for system improvements, or for construction of system improvements, if the land and/or improvements constructed are identified in the current city capital facilities plan. Applicants for projects for which roads or parks fees have been collected by voluntary agreement or pursuant to the city’s general platting authority, may request a credit for the amount of such fees paid.
A. Credits in General.
1. A credit shall be allowed only to the extent necessary to offset impact fees that would otherwise be charged to the development. The city is not liable to refund the developer any excess credit over impact fees.
2. Park impact credits may be applied only to park impact fees, and traffic impact credits applied only to traffic impact fees. Credits shall not be transferred from one property, project or development activity to another without approval of the director.
B. Park Impact Fee Credits.
1. Pursuant to RCW 82.02.060(3), a credit against the applicable impact fee component for the value of any dedication of land for, improvement to, or new construction of any park system improvements provided by the fee payer, to facilities that are identified in the parks, recreation and open space plan of the comprehensive plan and that are required by the city as a condition of approving the development activity.
2. All land proposed to be conveyed to the city in exchange for a credit against impact fees shall meet all of the following requirements:
a. The land must be conveyed free and clear of all liens and encumbrances;
b. The land must be readily accessible to the general public;
c. The land must have a site, size, and location consistent with a park system improvement described in the comprehensive plan; and
d. The land must be suitable for the proposed park uses and for inclusion in the city’s park system, as determined by the community development director.
The city may decide to accept land which does not meet all of these standards in unusual circumstances where the land to be conveyed provides a unique benefit, such as where the land has waterfront access, or provides significant open space or trail corridor.
3. The amount of the credit shall be the value of the land and improvements conveyed to the city; provided, that in no case shall the amount of the credit exceed the amount of the impact fee imposed on the development activity. If the value of the land and improvements exceeds the total park impact fees to be paid by the development, no impact fees shall be due. If the value of the land and improvements is less than the impact fees due, the developer will be required to pay the difference.
C. Traffic Impact Fee Credits.
1. An applicant may request a credit against the amount of impact fees otherwise applicable to a development activity for the total value of dedicated land, improvements, or construction provided by the applicant as a condition of development approval. Credits will apply only if and to the extent that the land dedicated, improvements provided, and/or facilities constructed are:
a. For transportation facilities constituting system improvements that are funded in whole or in part by impact fees; and
b. Located at suitable sites and constructed at an acceptable quality level as determined by the city.
2. The city engineer shall determine if a request for credits satisfies the criteria contained in subsection (C)(1) of this section.
3. The value of credits for structures, facilities or other improvements shall be established by documentation provided to the city engineer by the applicant.
4. The value of a credit for land, including but not limited to right-of-way and easements, shall be determined on a case-by-case basis by an appraiser selected by, or acceptable to, the city engineer.
5. The cost of any appraisal under this section shall in the city’s discretion either be (a) borne exclusively by the applicant, or (b) deducted from the otherwise applicable impact fee credit.
6. After receiving the appraisal and/or improvement cost documentation from the applicant, the city engineer shall provide the applicant with a written statement setting forth the dollar amount of the credit, the basis for the credit, the legal description of any dedicated real property, and a description of the development activity to which the credit shall be applied. The applicant shall sign and date a duplicate copy of said statement indicating his/her consent to the terms thereof and shall return the signed document to the city engineer prior to application of the impact fee credit. The applicant’s failure to sign, date, and return said statement within sixty calendar days may nullify the credit.
7. No credit shall be given for dedications for, contributions toward or construction of project improvements.
8. If the amount of the credit is less than the calculated fee amount, the difference remaining shall be chargeable as an impact fee and paid at the time of application for the building permit. In the event the amount of the credit is calculated to be greater than the amount of the impact fee due, the applicant shall forfeit such excess credit.
9. In the event that the city adopts impact fees that are less than the amount determined in the rate study; and provided, that the amount of the reduction is achieved by a discount or similar policy determination to reduce the fee without revising the underlying studies, data, or assumptions, then credits shall be given only in an amount by which the value of the credit exceeds the value of the discount used to adopt the impact fees.
10. Any request for a credit must be submitted in writing to the city engineer within 60 calendar days of the city’s receipt of the building permit application for the underlying development activity. An applicant’s failure to file a request by said deadline shall conclusively waive the applicant’s entitlement to any such credit.
11. Determinations made by the city engineer pursuant to this section shall be subject to appeal pursuant to SMC 16.72.130.
D. School impact fee credits shall be administered as codified in SMC 16.74.080. (Ord. 1328-20 § 7 (Exh. A); Ord. 1244-16 § 3 (Exh. A). Formerly 16.72.080)
16.72.130 Adjustments, waivers, and appeals.
A. Administrative Adjustment of Fee Amount.
1. An applicant for a building permit may, within 21 days of acceptance by the city of a complete building permit application, submit a letter to the city community development director requesting an adjustment to the impact fees imposed by this chapter. The director may adjust the amount or waive the entire fee, in consideration of studies and data submitted by the applicant and the district, if one of the following circumstances exists:
a. It can be demonstrated that the impact fee assessment was incorrectly calculated; and/or
b. Unusual circumstances of the development activity demonstrate that application of the impact fee to the development would be unlawful, unfair or unjust.
2. To avoid delay pending resolution of the adjustment or appeal, impact fees may be paid under protest in order to obtain a development approval.
3. Failure to exhaust this administrative remedy shall preclude appeals of the impact fee pursuant to subsection (B) of this section.
B. Appeals of Decisions – Procedure.
1. The community development director’s final impact fee determination and/or any mitigation requirements imposed pursuant to this chapter may be appealed in accordance with SMC 16.80.090.
2. At the hearing, the appellant shall have the burden of proof, which shall be met by a preponderance of the evidence. The impact fee may be modified upon a determination that it is proper to do so based on the application of the criteria contained in subsection (A) of this section. Appeals shall be limited to application of the impact fee provisions to the specific development activity and the provisions of this title shall be presumed valid. (Ord. 1347-21 § 25; Ord. 1328-20 § 7 (Exh. A); Ord. 1244-16 § 3 (Exh. A). Formerly 16.72.090)
16.72.140 Impact fee fund.
Impact fee funds will be created and established under SMC Title 3. The finance department will establish separate accounts and maintain records for each type of impact fee. (Ord. 1328-20 § 7 (Exh. A); Ord. 1244-16 § 3 (Exh. A). Formerly 16.72.100)
16.72.150 Expenditures.
Impact fees for system improvements shall be expended only in conformance with the capital facilities plan. 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. Such extraordinary and compelling reasons shall be identified in written findings by the city planning board. (Ord. 1328-20 § 7 (Exh. A); Ord. 1244-16 § 3 (Exh. A). Formerly 16.72.110)
16.72.160 Refunds – Parks and traffic.
A. 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 10 years of collection, or such greater time as may be established in written findings by the city planning commission documenting extraordinary or compelling reasons for extension beyond 10 years. In determining whether there has been an encumbrance, impact fees shall be considered encumbered on a first-in, first-out basis. The current owner likewise may receive a proportionate refund when the public funding of applicable service area projects by the end of such 10-year period has been insufficient to satisfy the ratio of public to private funding. The city shall notify potential claimants by certified mail (return receipt requested) deposited with the United States Postal Service at the last known address of each claimant.
B. The request for a refund must be submitted to the city council in writing within one year of the date the right to claim a refund arises or within one year of the date 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 as herein provided, shall be retained and expended on the indicated capital facilities. Refunds of impact fees under this subsection shall include any interest earned on the impact fees.
C. The current owner of property for which impact fees have been paid may request and shall receive a refund, including any interest earned on the impact fees, when the developer does not proceed with the development activity and no impact has resulted. City administrative costs to process the refund shall be deducted from the refund amount.
D. Schools. School impact fees shall be refunded as codified in Chapter 16.74 SMC and determined appropriate by the district. (Ord. 1328-20 § 7 (Exh. A); Ord. 1244-16 § 3 (Exh. A). Formerly 16.72.120)
16.72.170 Impact fee as additional and supplemental requirement.
The impact fee is additional and supplemental to, and not substitution for, any other requirements imposed by the city on the development of land or the issuance of building permits; provided, that any other such city development regulation which would require the developer to undertake dedication or construction of a facility contained within the city capital facility plan shall be imposed only if the developer is given a credit against impact fees as provided for herein. (Ord. 1328-20 § 7 (Exh. A); Ord. 1244-16 § 3 (Exh. A). Formerly 16.72.130)