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A. Fee report and implementation. The city may assess and collect a development impact fee for costs of necessary public services, including all professional services required for the preparation or revision of an infrastructure improvements plan, fee report, development impact fee, and required reports or audits conducted pursuant to this article. Development impact fees shall be subject to the following requirements:
1. The city shall develop and adopt a fee report that analyzes and defines the development impact fees to be charged in each service area for each capital facility category, based on the infrastructure improvements plan and the plan-based cost per SU.
2. Development impact fees shall be assessed against all new commercial, residential, and industrial developments, provided that the city may assess different amounts of development impact fees against specific categories of development based on the actual burdens and costs that are associated with providing necessary public services to that category of development. No development impact fee shall exceed the plan-based cost per SU for any category of development.
3. No development impact fees shall be charged, or credits issued, for any capital facility that does not fall within one of the categories of necessary public services for which development impact fees may be assessed.
4. Costs for necessary public services made necessary by new development shall be based on the same level of service provided to existing development in the same service area. Development impact fees may not be used to provide a higher level of service to existing development or to meet stricter safety, efficiency, environmental, or other regulatory standards to the extent that these are applied to existing capital facilities that are serving existing development.
5. Development impact fees may not be used to pay the city's administrative, maintenance, or other operating costs.
6. Projected interest charges and financing costs can only be included in development impact fees to the extent they represent principal and/or interest on the portion of any financing or debt used to finance the construction or expansion of a capital facility identified in the infrastructure improvements plan.
7. Except for any fees included on interim fee schedules, all development impact fees charged by the city must be included in a "fee schedule" prepared pursuant to this article and included in the fee report.
8. All development impact fees shall meet the requirements of A.R.S. § 9-463.05.
B. Costs per SU. The fee report shall summarize the costs of capital facilities necessary to serve new development on a per SU basis as defined and calculated in the infrastructure improvements plan. The fee report shall also include all required offsets and shall recommend a development impact fee structure for adoption by the city. The actual impact fees to be assessed shall be disclosed and adopted in the form of impact fee schedules.
(Ord. No. 11203, § 1, 10-9-14, eff. 12-23-14)
A. Separate accounts. Development impact fees collected pursuant to this article shall be placed in separate, interest-bearing accounts for each capital facility category within each service area.
B. Limitations on use of fees. Development impact fees and any interest on them collected pursuant to this article shall be spent to provide capital facilities associated with the same category of necessary public services in the same service area for which they were collected, including costs of financing or debt used by the city to finance those capital facilities and other costs authorized by this article that are included in the infrastructure improvements plan.
C. Time limit. Development impact fees collected after July 31, 2014 shall be used within ten (10) years of the date upon which they were collected for all categories of necessary public services.
(Ord. No. 11203, § 1, 10-9-14, eff. 12-23-14)
A. Consistency. The infrastructure improvements plan shall be consistent with the city's current land use assumptions for each service area and each category of necessary public services as adopted by the city pursuant to A.R.S. § 9-463.05.
B. Reviewing the land use assumptions. Prior to the adoption or amendment of an infrastructure improvements plan, the city shall review and evaluate the land use assumptions on which the plan is to be based to ensure that the assumptions within each service area conform to the General Plan.
C. Evaluating necessary changes. If the land use assumptions upon which an infrastructure improvements plan is based have not been updated within the last five (5) years, the city shall evaluate the land use assumptions to determine whether changes are necessary. If, after general evaluation, the city determines that the land use assumptions are still valid, the city shall issue the report required in section 23A-80.
D. Required modifications to land use assumptions. If the city determines that changes to the land use assumptions are necessary in order to adopt or amend an infrastructure improvements plan, it shall make such changes as necessary to the land use assumptions prior to or in conjunction with the review and approval of the infrastructure improvements plan pursuant to section 23A-80.
(Ord. No. 11203, § 1, 10-9-14, eff. 12-23-14)
A. Infrastructure improvements plan contents. The infrastructure improvements plan shall be developed by qualified professionals and may be based upon or incorporated within the city's capital improvements plan. The infrastructure improvements plan shall specify the categories of necessary public services for which the city will impose a development impact fee, and shall comply with all statutory requirements of A.R.S. § 9-463.05, including those in A.R.S. §§ 9-463.05(E)(1) through (7).
B. Multiple plans. An infrastructure improvements plan adopted pursuant to this section may address one (1) or more of the city's categories of necessary public services in any or all of the city's service areas. Each capital facility shall be subject to no more than one (1) infrastructure improvements plan at any given time.
C. Reserved capacity. The city may reserve capacity in an infrastructure improvements plan to serve one (1) or more planned future developments, including capacity reserved through a development agreement pursuant to section 23A-83. All reservations of existing capacity must be disclosed in the infrastructure improvements plan at the time it is adopted.
(Ord. No. 11203, § 1, 10-9-14, eff. 12-23-14)
A. Adopting or amending the infrastructure improvements plan. The infrastructure improvements plan shall be adopted or amended subject to the following procedures:
1. Major amendments to the infrastructure improvements plan. Except as provided in section 23A-79(A)(2), the adoption or amendment of an infrastructure improvement plan shall occur after one (1) or more public hearings according to the following schedule, and may occur concurrently with the adoption of an update of the city's land use assumptions as provided in section 23A-77:
a. Sixty (60) days before the first public hearing regarding a new or updated infrastructure improvements plan, the city shall provide public notice of the hearing and post the infrastructure improvements plan and the underlying land use assumptions on its website; the city shall additionally make available to the public the documents used to prepare the infrastructure improvements plan and underlying land use assumptions and the amount of any proposed changes to the plan-based cost per SU.
b. The city shall conduct a public hearing on the infrastructure improvements plan and underlying land use assumptions at least thirty (30) days, but no more than sixty (60) days, before approving or disapproving the infrastructure improvements plan.
2. Minor amendments to the infrastructure improvements plan. Notwithstanding the other requirements of this section, the city may update the infrastructure improvements plan and/or its underlying land use assumptions without a public hearing if all of the following apply:
a. The changes in the infrastructure improvements plan and/or the underlying land use assumptions will not add any new category of necessary public services to any service area.
b. The changes in the infrastructure improvements plan and/or the underlying land use assumptions will not increase the level of service to be provided in any service area.
c. Based on an analysis of the fee report and the city's adopted development impact fee schedules, the changes in the infrastructure improvements plan and/or the underlying land use assumptions would not, individually or cumulatively with other amendments undertaken pursuant to this subsection, have caused a development impact fee in any service area to have been increased by more than five percent (5%) above the development impact fee that is provided in the current development impact fee schedule.
d. At least thirty (30) days prior to the date that the amendment pursuant to this section is adopted, the city shall post the proposed amendments on the city website.
B. Amendments to the fee report. Any adoption or amendment of a fee report and fee schedule shall occur according to the following schedule:
1. The first public hearing on the fee report must be held at least thirty (30) days after the adoption or approval of and infrastructure improvements plan as provided in section 23A-79(A). The city must give at least thirty (30) days' notice prior to the hearing, provided that this notice may be given on the same day as the approval or disapproval of the infrastructure improvements plan.
2. The city shall make the infrastructure improvements plan and underlying land use assumptions available to the public on the city's website thirty (30) days prior to the public hearing described in section 23A-79(B)(1).
3. The fee report may be adopted by the city no sooner than thirty (30) days, and no later than sixty (60) days, after the hearing described in subparagraph section 23A-79(B)(1).
4. The development fee schedules in the fee report adopted pursuant to this subsection shall become effective seventy-five (75) days after adoption of the fee report by the city.
(Ord. No. 11203, § 1, 10-9-14, eff. 12-23-14)
A. Renewing the infrastructure improvements plan. Except as provided in section 23A-80(B), not later than every five (5) years the city shall update the applicable infrastructure improvements plan and fee report related to each category of necessary public services pursuant to section 23A-79
. The initial five (5) year period begins on the day the infrastructure improvements plan is adopted. Subsequent five (5) year periods shall be calculated from the date of the adoption of the infrastructure improvements plan or the date of the adoption of the fee report, whichever occurs later.
B. Determination of no changes. Notwithstanding section 23A-80(A), if the city determines that no changes to an infrastructure improvements plan, underlying land use assumptions, or fee report are needed, the city may elect to continue the existing infrastructure improvements plan and fee report without amendment by providing notice as follows:
1. Notice of the determination shall be published at least one hundred eighty (180) days prior to the end of the five (5) year period described in section 23A-80(A).
2. The notice shall identify the infrastructure improvements plan and fee report that shall continue in force without amendment.
3. The notice shall provide a map and description of the service areas covered by the infrastructure improvements plan and fee report.
4. The notice shall identify an address to which any resident of the city may submit, within sixty (60) days, a written request that the city update the infrastructure improvements plan, underlying land use assumptions, and/or fee report and the reasons and basis for the request.
C. Response to comments. The city shall consider and respond within thirty (30) days to any timely requests submitted pursuant to section 23A-80(B)(4).
(Ord. No. 11203, § 1, 10-9-14, eff. 12-23-14)
A. Collection. Development impact fees, together with administrative charges assessed pursuant to section 23A-81(A)(4), shall be calculated and collected prior to and as a condition of the issuance of permission to commence development; specifically:
1. Unless otherwise specified pursuant to a development agreement adopted pursuant to section 23A-83, development impact fees shall be paid prior to and as a condition of the issuance of a building permit according to the current development impact fee schedule for the applicable service area(s) as adopted pursuant to this article, or according to any other development impact fee schedule as authorized in this article.
2. No building permit or certificate of occupancy shall be issued if a development impact fee is not paid as directed in the previous paragraphs.
3. If the building permit is for a change in the type of building use, an increase in square footage, or a change to land use, the development impact fee shall be assessed on the additional service units resulting from the expansion or change, and following the development impact fee schedule applicable to any new use type.
4. For issued permits that expire or are voided, development impact fees and administrative charges shall be as follows:
a. If the original permittee is seeking to renew an expired or voided permit, and the development impact fees paid for such development have not been refunded, the permittee shall pay the difference between any development impact fees paid at the time the permit was issued and those in the fee schedule at the time the permit is reissued or renewed.
b. If a new or renewed permit for the same development is being sought by someone other than the original permittee, the new permit applicant shall pay the full development impact fees specified in the fee schedule in effect at the time that the permits are reissued or renewed. If the original permittee has assigned its rights under the permits to the new permit applicant, the new permit applicant shall pay development impact fees as if it were the original permittee.
5. Administrative charges. The city shall initially assess a $50 administrative charge to cover administrative expenses. The administrative charge may not be paid with development impact fee credits. The administrative charge shall be in addition to the amount of the development impact fee that is due and shall be paid at the same time as the fee. The administrative charge may be amended to reflect the actual administrative costs by the development impact fee administrator. Any amendment shall be adopted as a development standard with the approval of the mayor and council.
B. Exceptions. Development impact fees shall not be owed under any of the following conditions:
1. Development impact fees have been paid for the development and the permit that triggered the collection of the development impact fees has not expired or been voided.
2. The approval that triggers the collection of development impact fees involves modifications to existing residential or non-residential development that do not:
a. add new SUs,
b. add square footage to existing residential development in existence for at least ten (10) years and which does not constitute a new dwelling unit or,
c. increase the impact of existing SUs on existing or future capital facilities or,
d. change the land-use type of the existing development to a different category of development for which a higher development impact fee would have been due.
To the extent that any modification does not meet the requirements of this paragraph, the development impact fee due shall be the difference between the development impact fee that was or would have been due on the existing development and the development impact fee that is due on the development as modified.
3. The approval that triggers the collection of development impact fees involves construction of residential or nonresidential development on a site with a previously approved demolition permit in final status within five (5) years prior to application. The development impact fee due shall be the difference between the development impact fee that was or would have been due on the demolished structures and the development fee that is due on the new or modified development.
4. A governmental entity controls and directs the development for a governmental purpose on property owned by a governmental entity.
C. Temporary exemptions from development impact fee schedules. New developments in the city shall be temporarily exempt from increases in development impact fees that result from the adoption of new or modified development impact fee schedules as follows:
1. Residential uses (other than multifamily). On or after the day that the first building permit is issued for a residential development (other than multifamily), the city shall, at the permittee's request, provide the permittee with an applicable development impact fee schedule, as established by the prior adoption of the fee schedule by the mayor and council, that shall be in force for a period of twenty-four (24) months beginning on the day that the first building permit is issued, and which shall expire at the end of the first business day of the 25th month after the first building permit is issued. During the effective period of the applicable development impact fee schedule, any building permit issued for the same residential development shall not be subject to any new or modified development impact fee schedule.
2. All other uses. On or after the city's approval of a site plan or final subdivision plat for an industrial: light industrial, industrial: warehousing, industrial: manufacturing, commercial/retail: general, commercial/retail: free standing discount store, general office, institutional: schools, institutional: religious facilities, institutional: medical (nursing home/assisted living), institutional: medical (clinic, hospital), hotel or multifamily development, the city shall, at the permittee's request, provide the permittee with an applicable development impact fee schedule, as established by the prior adoption of the fee schedule by the mayor and council, that shall be in force for a period of twenty-four (24) months beginning on the day the site plan or final subdivision plat was approved, and which shall expire at the end of the first business day of the 25th month after the site plan or final subdivision plat was approved. During the effective period of the applicable development impact fee schedule, any building permit issued for the same development shall not be subject to any new or modified development impact fee schedule.
3. Changes to development plans and final subdivision plats. During the twenty-four (24) month period referred to in section 23A-81(C)(1) or (2), if changes are made to a development's site plan or final subdivision plat that will increase the number of service units, the city may assess any new or modified development impact fees against the additional service units. If the city reduces the amount of an applicable development impact fee during the twenty-four (24) month period referred to in section 23A-81(C)(1) or (2), the city shall assess the lower development impact fee.
D. Option to pursue special fee determination. Where a development is of a type that does not closely fit within a particular category of development appearing on an adopted development impact fee schedule, or where a development has unique characteristics such that the actual burdens and costs associated with providing necessary public services to that development will differ substantially from that associated with other developments in a specified category of development, the city may require the applicant to provide the development impact fee administrator with an alternative development impact fee analysis. Based on a projection of the actual burdens and costs that will be associated with the development, the alternative development impact fee analysis may propose a unique fee for the development based on the application of an appropriate SU factor to the applicable plan-based cost per SU, or may propose that the development be covered under the development impact fee schedule governing a different and more analogous category of development. The development impact fee administrator shall review the alternative impact fee analysis and shall make a determination as to the development impact fee to be charged. The decision shall be appealable pursuant to section 23A-84. The development impact fee administrator may require the applicant to pay an administrative fee to cover the actual costs of reviewing the special fee determination application.
E. Waivers. Development impact fees shall not be waived except in accordance with the provisions set forth in section 23A-81(E)(1) and (2) below. When development impact fees are waived, the city shall transmit non-development impact fee funds to cover the waivers into the appropriate development impact fee account.
1. Affordable housing: Any waiver of development impact fees for eligible affordable housing providers, including any waiver pursuant to an affordable housing program approved by the Mayor and Council under which the city provides a subsidy for eligible affordable housing projects, requires the prior approval of the Mayor and Council.
2. Development agreements: Through a development agreement between the city and the developer of a property, partial or full development impact fee waivers may be granted for projects that provide a public benefit to the city and result in a net financial benefit to the city. Development agreements entered into under this section shall comply with the requirements of section 23A-83.
F. Mixed use incentive. New developments in the city shall be eligible for reduced streets facilities development impact fees if in compliance with the criteria below, as determined by the Impact Fee Administrator or their designee during the development package review process. Developments which utilize this incentive shall be subject to the fees in Section 23A-91 Table 3 - "Mixed Use Incentive Fee" Rates. The purpose of this incentive is to encourage development that increases commuting by transit, bicycle, and walking. This incentive applies to development that meets the criteria below, which will result in fewer vehicle trips and less demand on the street facilities system.
1. Transit access (required): Development must be located close to transit. The development boundary must be within one-quarter mile walking distance to a transit stop.
2. Residential proximity (one of the following two is required):
a. Development must contain a mix of uses, including both residential and nonresidential. A minimum ratio of one (1) dwelling unit per 500 square feet of nonresidential development must be provided.
b. Development must be located close to high-density residential. A minimum of 2,000 units must be located within one-half mile of the development boundary.
3. Multimodal options (one of the following two is required):
a. Development must be located close to planned or constructed publicly-designated bicycle boulevard or multi-use path. The development boundary must be within one-quarter mile walking distance to said boulevard or path.
b. Development must provide additional bicycle parking spaces, bicycle connections and car share facilities. Bicycle parking must be provided at three (3) times the standard rate. Internal bicycle circulation connections must be provided from every public street to the buildings and bicycle parking areas on the development site. Car share spaces must be provided at the following rates:
Number of Residential Units | Number of Required Car Share Spaces |
0-24 | 0 |
25-99 | 1 |
100+ | 2, plus 1 for every 100 dwelling units over 100 |
Number of Parking Spaces for Nonresidential Uses | Number of Required Car Share Spaces |
0-49 | 0 |
50-99 | 1 |
100+ | 2, plus 1 for every 100 parking spaces over 100 |
(Ord. No. 11203, § 1, 10-9-14, eff. 12-23-14; Ord. No. 11624, § 1, 2-20-19, eff. 3-22-19; Ord. No. 11759, § 1, 6-9-20, eff. 8-23-20; Ord. No. 11919, § 1, 3-22-22, eff. 4-21-22)
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