This subchapter is enacted pursuant to the authority of the Rhode Island Development Impact Fee Act R.I.G.L. 45-22.4-1 et seq.
(A) Generally. All applicants for new residential development shall be assessed Development Impact Fees (hereafter known as "Fees"). Five types of assessments shall be imposed: Parks and Recreation Facilities Fee, Police Facilities Fee, Fire Facilities Fee, General Government facilities, and Sewer Facilities fee, unless otherwise provided herein. All applicants for new commercial development shall be assessed for the same facilities, with the exception of General Government, and Parks and Recreation Facilities. All owners of property owned by the state or federal government which is converted to private ownership or control shall also be assessed Development Impact Fees.
(B) Report: Adoption of findings. The findings set forth in the Middletown Impact Fee Study report, dated January 24, 2023, as amended (hereafter referred to as "Report") and the Middletown Sanitary Sewer Impact Fee Study report, dated August, 2020 (hereinafter referred to as "Sanitary Sewer Report") are adopted herewith. The Reports assess Town facilities and provides the data sources and methodology upon which the following fees are based. The Reports are on file at the Town Clerk's office and are available for examination by the public upon request.
(C) Calculation of fees. The fees shall be calculated according to the formulas set forth in the Report. Over time, the variables in the formulas may change, causing the fees to change. For residential uses, the fees, including Sanitary Sewer fees, shall be calculated on the basis of each new residential dwelling unit. For commercial/nonresidential uses, the fees shall be calculated on the basis of 1,000 gross square feet of new building space, provided that Sanitary Sewer fees for such uses shall be calculated based on the displacement of the water meter servicing the facility, as hereinafter set forth. The following sets forth the adopted fees per new residential dwelling unit and new commercial space, as outlined in the Report.
(1) Impact Fees.
Residential (per housing unit) | Recreation Facilities | Fire Facilities | Police Facilities | General Government Facilities | Total |
Single Family | $498 | $1,099 | $736 | $3,639 | $5,972 |
Multifamily | $396 | $873 | $585 | $2,890 | $4,744 |
Mobile Home | $384 | $846 | $567 | $2,802 | $4,599 |
Commercial (1,000 sq, ft.) | |||||
Retail | $0 | $1,467 | $984 | $0 | $2,451 |
Office | $0 | $651 | $437 | $0 | $1,088 |
Industrial/Flex | $0 | $286 | $192 | $0 | $478 |
(2) Sanitary Sewer Impact Fees.
Residential (per housing unit) | Sanitary Sewer |
Residential (per housing unit) | Sanitary Sewer |
Single Family | $1,433 |
Multifamily | $1,132 |
Mobile Home | $733 |
Nonresidential (per size/type meter) | Sanitary Sewer |
0.75" Displacement | $1,433 |
1.0" Displacement | $2,393 |
1.5" Displacement/Turbine | $4,771 |
2.0" Displacement/Turbine | $7,637 |
3.0" Compound | $15,288 |
(3) Credits. An adjustment shall be made to any impact fee for facilities that were funded by the issuance of bonds. The annual debt service for the bonds apportioned to the facilities expansion shall be subtracted from the impact fee as presented within the calculations in the report, and will be reviewed accordingly on an annual basis. The applicable credits shall be deducted from the fees set forth in the preceding subsections.
(D) Exemptions.
(1) Low and moderate income housing. Low and moderate income housing units shall be exempt from the requirements of this subchapter. "Low and moderate income housing units" shall mean dwelling units that are subsidized by the federal or state government under a program to assist in the construction of permanent low or moderate income housing, as defined by the Rhode Island Housing and Mortgage Finance Corporation (RIHMFC), whether built or operated by a public agency or a nonprofit organization. Only the subsidized units in a low and moderate income housing project are exempt from the requirements of this section. All other units in a low and moderate income housing project are subject to the fees.
(2) Renovation and repair. Development Impact fees shall not be imposed for remodeling, rehabilitation, or other improvements to an existing structure or rebuilding a damaged structure unless there is an increase in the number of dwelling units or any other measurable unit for which an impact fee is collected. Impact fees may be imposed when property which is owned or controlled by federal or state government is converted to private ownership or control.
(3) Lots of record. One residential dwelling unit per lot of record is exempt from the requirements of this subchapter. For the purposes of this subchapter, a "lot of record" is a lot which legally exists as of August 16, 2004, as shown by the Middletown Tax Assessor's certified tax roll of assessments as of December 31, 2003, and/or duly recorded land evidence records, or can otherwise be proven to have existed as distinct lot separate and apart from surrounding property as of August 16, 2004.
(E) Administration of fees.
(1) Assessment. All impact fees imposed pursuant to the authority granted in this chapter shall be assessed upon the issuance of a building permit or other appropriate permission to proceed with the development of, or change in use to, a residential dwelling unit or commercial unit. As part of the building permit process, the Town Planner shall review the building permit application and assess the appropriate fees according to division (C) above prior to the Building Inspector issuing a building permit. For property which is converted from state or federal ownership or control to private ownership or control, the Town Planner shall assess the appropriate fee upon the effective date of transfer of ownership or control.
(2) Collection. All impact fees imposed pursuant to the authority granted in this chapter shall be collected in full upon the issuance of the certificate of occupancy or other final action authorizing the intended use of a structure. All fees collected shall be kept in a restricted interest-bearing account.
(3) Expenditure. Town Council shall approve expenditure of the fees. The fees shall only be expended for the intended purpose of providing and/or making capital improvements that reasonably relate to the service demands and needs of new development and shall not be used in lieu of regular capital improvement funds. Interest earned by the account shall be credited to the account and shall be solely for the purposes specified above for the account.
(4) Refunds. Within eight years of the date of collection, impact fees shall be expended or encumbered for the construction of public facilities’ capital improvements, however, if the expenditure or encumbrance is not feasible within eight years, the town may retain impact fees for a period of 10 years if there are compelling reasons for such a longer period. The governing body shall identify, in writing, the compelling reasons for retaining impact fees for a longer period of time over eight years. If impact fees are not expended or encumbered within this period, the town shall refund to the applicant or his or her successors the amount of fee paid and accrued interest. The town shall send the refund to the applicant at the last known address by certified mail within one-year of the date on which the right to claim the refund arises. Should the mailing of the fee be returned, the municipality shall make every effort to obtain a new address for the fee payer, including a search of the public records, the Secretary of State’s database, and the database for the contractors’ registration and licensing board. All refunds due and not claimed within one year shall be forwarded to the State Treasurer’s office for inclusion in the unclaimed property fund.
(5) Impact fee termination. Should the town terminate any or all impact fee requirements, all unexpended or unencumbered funds shall be refunded as provided above. Upon the finding that any or all impact fee requirements are to be terminated, the town shall place a notice of termination and availability of refunds in a newspaper of general circulation in the community at least two times. All funds available for refund shall be retained for a period of one year. All refunds not claimed within one year shall be forwarded to the State Treasurer’s office for inclusion in the unclaimed property fund.
(F) Notice to future homeowners.
(1) In the instance of a subdivision or land development project, notice of the fees shall be provided on the record plan (i.e. the plan that is recorded in the land evidence records).
(2) In all instances where a parcel of real property (vacant or developed) is sold to a new owner prior to the issuance of a building permit, the seller of the real property shall provide written notice of the fees to the new owner on or before the date in which the parties enter into a purchase and sales agreement. The seller shall maintain said written notice for his or her records.
(G) Alternative means of satisfying assessments for subdivisions and land development projects. The town may accept the dedication of land, the construction of public facilities in lieu of payment of impact fees provided that:
(1) The need for the dedication or construction is clearly documented in the town's capital improvement program and comprehensive plan;
(2) The land proposed for dedication for the facilities to be constructed are determined to be appropriate for the proposed use by the town;
(3) Formulas and/or procedures for determining the worth of proposed dedications or constructions are established; and
(4) The total value of the applicant's contribution shall not be less than the amount of the particular projected fee involved. The value of the applicant's contribution and scope of work shall be determined by the Planning Board, upon the recommendation of the Town Engineer or other appropriate professional pursuant to procedures established by the Planning Board. The Planning Board shall document the value of the applicant's contribution. A copy thereof shall be placed and maintained in the Planning Department's file for the particular subdivision or land development project.
(H) Construction services performed by applicant. In the event construction services areperformed by applicant or on its behalf, applicant shall adhere to town specifications for construction and development. Inspections by town staff shall be conducted at key points in the construction and development process. In no case shall said inspection be less than those required for road construction as outlined elsewhere in the Subdivision and Land Development regulations. A schedule for inspections shall be agreed to between town staff and applicant.
(I) Relationship to Comprehensive Plan. No fees or dedication of land to the public shall be required unless the need for such is documented in the adopted plans of the town, i.e. the Comprehensive Community Plan, or the Capital Improvement Program (CIP). The requirement for dedication of land or fees shall be based upon the policies and standards set forth in the above plans and shall reflect the character defined by the Comprehensive Community Plan for the neighborhood or district in which the subdivision or development is located. The nature of the land dedication must reflect the character of the land being subdivided and must be suitable for the intended use. Land which is not otherwise developable, i.e. wetlands, slope too steep, etc. shall not be acceptable for this purpose.
(J) Annual review. The Town Planner with the assistance of the Department of Public Works, and others as appropriate, shall present an annual report to the Town Council on the status of any fees collected pursuant to this subchapter. The report shall be presented annually to the Town Council before the adoption of the Capital Improvement Plan. The report shall specify the amount of fees collected, how the monies were expended, and whether there are anticipated expenditures in the future.
(Ord. passed 8-16-04; Am. Ord. passed 10-4-04; Am. Ord. 2016-15, passed 10-3-16; Am. Ord. 2018-6, passed 3-19-18; Am. Ord. 2020-8, passed 9-21-20; Am. Ord. 2023-3, passed 2-21-23)