Chapter 21.08
PARK IMPACT FEES

Sections:

21.08.010    Legislative findings.

21.08.020    Definitions.

21.08.030    Imposition.

21.08.040    Computation.

21.08.050    Payment.

21.08.060    Service areas.

21.08.070    Funds established.

21.08.080    Use of funds.

21.08.090    Refunds of fees paid.

21.08.100    Exemptions.

21.08.110    Credits.

21.08.120    Review.

21.08.130    Fee schedule.

21.08.140    Violation – Penalty.

21.08.150    Deferral of impact fees.

21.08.010 Legislative findings.

The council of Bothell finds, determines, and declares that:

A.    Bothell must expand its park system in order to maintain current park standards if new development is to be accommodated without decreasing current standards. This must be done in order to promote and protect the public health, safety, and welfare.

B.    The Washington State Legislature through the enactment of the Washington State Growth Management Act (Chapter 36.70A RCW) has authorized local jurisdictions to enact impact fees.

C.    The imposition of impact fees is one of the preferred methods of ensuring that new development bears a proportionate share of the cost of capital facilities necessary to accommodate new growth.

D.    Each type of land development described in BMC 21.08.040 will create demand for the acquisition or expansion of parks and the construction of recreational facilities and other park improvements.

E.    The fees established in BMC 21.08.040 are derived from, based upon, and do not exceed the costs of providing additional park and park improvements necessitated by the new land developments for which the fees are levied. (Ord. 2192 § 1, 2016; Ord. 1707 § 1, 1997).

21.08.020 Definitions.

A.    “Capital improvement” includes parks and open space planning, land acquisition, site improvements, buildings, and equipment but excludes maintenance, operation and normal repair.

B.    “Capital facilities program (CFP)” means a six-year plan that is annually updated and approved by the council to finance the development of capital facilities necessary to support the population projected within Bothell over the six-year projection period. As defined in the GMA, the capital improvement program will include:

1.    A forecast of future needs for park facilities;

2.    An identification of additional demands placed on existing public facilities by new development;

3.    The long-range construction and capital improvement projects of the city;

4.    The parks under construction or expansion;

5.    The proposed locations and capacities of expanded or new park facilities;

6.    An inventory of existing park facilities;

7.    At least a six-year financing component, updated as necessary to maintain at least a six-year forecast period, for financing needed for park facilities within projected funding levels, and identifying sources of financing for such purposes, including bond issues authorized by the voters; and

8.    An identification of deficiencies in park facilities and the means by which existing deficiencies will be eliminated within a reasonable period of time.

    In accordance with GMA requirements, the current six-year capital facilities program (CFP) will identify all projects that are eligible for funding in whole or part by growth impact fees for parks.

C.    “City” means the city of Bothell, Washington.

D.    “Developer” means the person or entity who owns or holds purchase options or other development control over property for which development activity is proposed.

E.    “Development activity” means any construction or expansion of a building, structure, or use, any change in use of a building or structure, or any change in the use of land, or the subdivision of land that creates additional demand for park and recreational facilities.

F.    “Development approval” means any written authorization from a county, city or other municipal jurisdiction which authorizes the commencement of development activity.

G.    “Encumbered” means impact fees identified by the city as being committed as part of the funding for a park facility for which the publicly funded share has been assured or building permits sought or construction contracts let.

H.    “Growth impact fee” means a payment of money imposed upon development as a condition of development approval:

1.    To pay for public facilities needed to serve new growth and development;

2.    That is reasonably related to the new development that creates additional demand for public facilities;

3.    That is a proportionate share of the cost of the public facilities; and

4.    That is used for facilities that reasonably benefit the new development.

    Park impact fees will be a proportionate amount (less than 100 percent) of the land acquisition and facility development value or cost required to sustain the existing level of service as a result of new development.

    Park growth impact fees do not include reasonable permit or application fees or charges.

I.    “Growth impact fee schedule” means the table of park impact fees to be charged per unit of development as computed in the rate study and adopted under this chapter, indicating the standard fee amount per unit of development to be paid as a condition of development within the city.

J.    “Improvements, project” means site improvements and facilities planned and designed to provide service for a particular development project. Project improvements are necessary for the use and convenience of the occupants or users of the project, and are not system improvements. Project improvement examples include the construction of water and sewer lines or interior roads that serve only the structures and occupants located within the development.

    No improvement or facility included in a capital facilities program (CFP) approved by the city council shall be considered a project improvement. Project improvements are normally paid for by the developer as a condition of development approval. Project improvements are not financed with public funds nor included within the city’s capital facilities program and development impact fees.

K.    “Improvements, system” means public facilities designed to serve areas within the community at large, in contrast to project improvements designed to service occupants of a particular development project or site. System improvement examples include collector or arterial roads, schools, and parks.

    Systems improvements are financed with public funds in accordance with the city’s capital facilities program (CFP). An impact fee may be imposed for a system improvement only if the improvement is included within Bothell’s capital facilities program (CFP).

L.    “Level of service” for growth impact fees means the value of park, open space and recreation land and facilities per person.

    Growth impact fees are to be imposed on new developments in order to finance the development of additional facilities necessary to maintain the existing level of service (ELOS) as a result of the additional population requirements created by new development.

M.    “Owner” means the owner of record of real property, although when real property is being purchased under a real estate contract, the purchaser shall be considered the owner of the real property if the contract is recorded.

N.    “Prior system deficiencies” means improvements that are necessary to expand the existing system to meet current level of service (LOS) requirements. Impact fees may not be used for prior system deficiencies or for improvements that do not benefit or serve new growth.

O.    “Proportionate share” means that portion of the cost of public facility improvements that are reasonably related to the service demands and needs of new development.

P.    “Public facility” means the following capital facilities owned or operated by government entities:

1.    Public streets and roads;

2.    Publicly owned parks, open space, and recreation facilities;

3.    School facilities; and

4.    Fire protection facilities.

Q.    “Rate study” means the most recent report of the methodology and calculations of growth impact fees for parks, open space and recreation facilities.

R.    “Service areas” means a geographic area in which a defined set of public facilities provide service to the population within the area. (Ord. 2192 § 1, 2016; Ord. 1707 § 2, 1997).

21.08.030 Imposition.

A.    Any person or entity who, after the effective date of the ordinance codified in this chapter, seeks to develop land within Bothell by applying for a permit for development activity is hereby required to pay a park growth impact fee in the manner and amount set forth in this chapter.

B.    No new building permit or new permit for any activity requiring payment of an impact fee pursuant to this chapter shall be issued unless and until the park growth impact fee hereby required has been paid.

C.    No extension of a building permit issued prior to the effective date of the ordinance codified in this chapter for any activity requiring payment of an impact fee pursuant to this chapter shall be granted unless and until the park impact fee hereby required has been paid. (Ord. 2192 § 1, 2016; Ord. 1707 § 3, 1997).

21.08.040 Computation.

A.    Schedule. The park growth impact fees as determined in the rate study and adopted in accordance with this chapter are set forth in the table in BMC 21.08.130.

1.    If development approval is requested for mixed uses, then the fee shall be determined using the above schedule by apportioning the space committed to uses specified on the schedule.

2.    If the type of development activity that development approval is applied for is not specified on the above fee schedule, the director of community development (director) shall use the fee applicable to the most comparable type of land use on the above fee schedule. If the director determines that there is not a comparable type of land use on the above fee schedule then the director shall determine the fee by considering demographic or other documentation that is available from state, local, and regional authorities that is consistent with the documentation in the rate study.

3.    In the case of change of use, redevelopment, or expansion or modification of an existing use that requires development approval, the impact fee shall be based upon the net positive increase in the impact fee for the new use as compared to the previous use.

B.    Calculation. If a developer elects not to have the impact fee determined according to subsection A of this section, then:

1.    The developer shall prepare and submit to the director an independent fee calculation study for the development activity for which a development approval is sought. The documentation submitted shall show the basis upon which the independent fee calculation was made.

2.    The director shall consider the documentation submitted by the developer but is not required to accept such documentation as he/she shall reasonably deem to be inaccurate or not reliable and may, in the alternative, require the developer to submit additional or different documentation for consideration.

3.    If an acceptable independent fee calculation study is not presented, the developer shall pay park impact fees based upon the schedule shown in subsection A of this section.

4.    If an acceptable independent fee calculation study is presented, the director may adjust the fee to that appropriate to the particular development.

5.    In cases where the developer requests an independent fee calculation, the costs of such calculation shall be borne by the developer.

C.    Appeals.

1.    Determinations made by the director pursuant to this section may be appealed to the council by filing a written request with the director within 10 days of the official’s determination.

2.    Any appeal of the decision of the city with regard to fee amounts shall follow the process for the appeal of the underlying development activity, as set forth in the Bothell Municipal Code.

3.    Impact fees may be paid under protest in order to obtain a permit or other approval of development activity. (Ord. 2192 § 1, 2016; Ord. 1707 § 4, 1997).

21.08.050 Payment.

A.    Impact fees shall be imposed upon development activity in the city, based upon the schedule set forth in this chapter, and shall be collected by the city from any applicant where such development activity requires development approval for the lot or unit has not been previously paid.

B.    For a plat or PUD applied for on or after the effective date of the ordinance codified in this chapter, the impact fees due on the plat or the PUD shall be assessed when building permits are issued, using the impact fee schedule then in effect. The fee shall be allocated to the dwelling units in the project, and shall be collected prior to issuance of a certificate of occupancy, or prior to a final inspection and occupancy when a certificate of occupancy is not required by city codes or conditions of development. Residential development proposed for short plats shall not be governed by this section, but shall be governed by subsection D of this section.

C.    If on the effective date of the ordinance codified in this chapter a plat or PUD has already received preliminary approval or an applicant has applied for preliminary plat or PUD approval but has not yet received such approval, impact fees shall be assessed and collected following the same procedures set forth in subsection B of this section.

D.    For existing lots or lots not covered by subsection B of this section, application for single-family and multifamily residential building permits, mobile home permits, and site plan approval for mobile home parks proposed, the total amount of the impact fees shall be assessed when the building permit is issued, using the impact fee schedules then in effect, and collected from the applicant prior to issuance of a certificate of occupancy, or prior to a final inspection and occupancy when a certificate of occupancy is not required by city codes or conditions of occupancy.

E.    Any application for preliminary plat or PUD approval or multifamily zoning which has been approved subject to conditions requiring the payment of impact fees established pursuant to this chapter shall be required to pay the fee in accordance with the conditions of approval.

F.    Arrangement may be made for later payment of the impact fee with the approval of the city only if the city determines that it will be unable to use or will not need the payment until a later time; provided, that sufficient security, as defined by the city, is provided to assure payment. Security shall be made to and held by the city, which will be responsible for tracking and documenting the security interest. (Ord. 2192 § 1, 2016; Ord. 1707 § 5, 1997).

21.08.060 Service areas.

Park, open space and recreational lands, facilities, and services will be provided in a single city-wide service area. (Ord. 2192 § 1, 2016; Ord. 1707 § 6, 1997).

21.08.070 Funds established.

A.    All park impact fees collected shall be promptly transferred for deposit in a park impact fee fund to be held in a separate account as determined by this section and used solely for the purposes specified in this chapter.

1.    A separate park impact fee account is hereby created for parks and recreational facilities.

2.    A separate impact fee account will also be created for open space.

B.    Funds withdrawn from these accounts must be used in accordance with the provisions of BMC 21.08.080. (Ord. 2192 § 1, 2016; Ord. 1707 § 7, 1997).

21.08.080 Use of funds.

A.    Funds collected from park growth impact fees shall be used solely for the purpose of making capital improvements to parks, open space and recreational facilities under the jurisdiction of Bothell.

B.    Funds shall be used exclusively for capital improvements within the park growth impact fee service areas. Funds shall be expended on the basis of a “first in/first out” accounting basis.

C.    In the event that bonds or similar debt instruments are issued for advanced provision of capital facilities for which park impact fees may be expended, impact fees may be used to pay debt service on such bonds or similar debt instruments to the extent that the facilities provided are of the type described in subsection A of this section and are located within the appropriate impact fee service areas created by BMC 21.08.060 or as provided in subsection B of this section.

D.    Impact fees for system improvements shall be expended by the city only in conformance with the capital facilities program (CFP).

E.    Impact fees shall be expended or encumbered by the city for a permissible use within 10 years of receipt by the city, unless there exists an extraordinary or compelling reason for fees to be held longer than 10 years. The city council shall identify the city’s extraordinary and compelling reasons for the fees to be held longer than 10 years in the council’s own written findings.

F.    At least once each fiscal period the director shall present to the council a proposed capital facility program (CFP) for parks, assigning funds, including any accrued interest from the several park impact fee funds to specific park improvement projects and related expenses. Moneys, including any accrued interest, not assigned in any fiscal period shall be retained in the same park impact fee funds until the next fiscal period, except as provided by the refund provisions of this chapter.

G.    Funds may be used to provide refunds as described in BMC 21.08.090. (Ord. 2192 § 1, 2016; Ord. 2165 § 1, 2015; Ord. 1707 § 8, 1997).

21.08.090 Refunds of fees paid.

A.    If development approval expires without commencement of construction, then the developer shall be entitled to a refund, with interest, of the impact fee paid as a condition for its issuance except that Bothell shall retain a percent of the fee to offset a portion of the costs of collection and refund. The developer must submit an application for such a refund to the director within 30 days of the expiration of the permit.

B.    Any funds not expended or encumbered by the end of the calendar quarter immediately following 10 years from the date the park impact fee was paid shall, upon application by the current landowner, be returned to such landowner with interest at the interest rate accrued in the fund account; provided, that the landowner submits an application for a refund to the city of Bothell within one year of the expiration of the 10-year period.

C.    Any impact fees that are not expended or encumbered by the city in conformance with the capital facilities program (CFP) within these time limitations, and for which no application for a refund has been made within this one-year period, shall be retained and expended consistent with the provisions of this section.

D.    Interest due upon the refund of impact fees required by this section shall be calculated according to the average rate received by the city on invested funds throughout the period during which the fees were retained. (Ord. 2192 § 1, 2016; Ord. 2113 § 2, 2013; Ord. 1707 § 9, 1997).

21.08.100 Exemptions.

The following development activities shall be exempted from payment of impact fees:

A.    Reconstruction, remodeling or construction of the following facilities, subject to the recording of a covenant or recorded declaration of restrictions precluding use of the property for other than the exempt purpose; provided, that if the property is used for a nonexempt purpose, then the park impact fees then in effect shall be paid:

1.    Shelters or dwelling units for temporary placement which provide housing to persons on a temporary basis for not more than four weeks.

2.    Construction or remodeling of transitional housing facilities or dwelling units that provide housing to persons on a temporary basis for not more than 24 months, in connection with job training, self-sufficiency training and human services counseling the purpose of which is to help persons make the transition from homelessness to placement in permanent housing.

B.    Rebuilding or replacement of a legally established dwelling unit(s) destroyed or damaged by fire, flood, explosion, act of God or other accident or catastrophe; provided, that such rebuilding takes place within a period of one year after destruction with a new building or structure of the same size and use.

C.    Alteration or expansion:

1.    Of an existing building where less than 100 square feet are added and where the use is not changed; and/or

2.    The construction of accessory buildings or structures of less than 100 square feet.

D.    Mobile home where the installation of a replacement mobile home on a lot or other such site when a park impact fee for such mobile home site has previously been paid pursuant to this chapter or where a mobile home legally existed on such site on or prior to the effective date of the ordinance codified in this chapter.

    Any claim or exemption must be made no later than the time of application for a building permit or permit for mobile home installation. Any claim not so made shall be deemed waived.

E.    Condominium projects in which existing dwelling units are converted into condominium ownership where no new dwelling units are created and the size of each dwelling unit is not increased by more than 100 square feet.

F.    Previous mitigations where:

1.    The development activity is exempt from the payment of an impact fee pursuant to RCW 82.02.100, due to mitigation of the same system improvement under the State Environmental Policy Act (SEPA).

2.    The development activity for which park impacts have been mitigated pursuant to a condition of plat or PUD approval to pay fees, dedicate land or construct or improve park facilities, unless the condition of the plat or PUD approval provides otherwise; provided, that the condition of the plat or PUD approval predates the effective date of fee imposition as provided herein.

3.    Any development activity for which park impacts have been mitigated pursuant to a voluntary agreement entered into with the city to pay fees, dedicate land or construct or improve park facilities, unless the terms of the voluntary agreement provide otherwise; provided, that the agreement predates the effective date of fee imposition as provided herein. (Ord. 2192 § 1, 2016; Ord. 1707 § 10, 1997).

21.08.110 Credits.

Park or open space land and/or park capital improvements may be offered by the developer as total or partial payment of the required impact fee. The offer must specifically request or provide for a park impact fee credit. If the director accepts such an offer, whether the acceptance is before or after the effective date of the ordinance codified in this chapter, the credit shall be determined and provided in the following manner:

A.    Credit for the dedication of land shall be valued at 100 percent of the most recent assessed value by the King or Snohomish County property appraiser, by such other appropriate method as the council may have accepted prior to the effective date of the ordinance codified in this chapter for particular park improvements, or by fair market value established by private appraisers acceptable to Bothell. Credit for the dedication of park land shall be provided when the property has been conveyed at no charge to, and accepted by, the city in a manner satisfactory to the council.

B.    Applicants for credit for construction of park improvements shall submit acceptable engineering drawings and specifications, and construction cost estimates to the director. The director shall determine credit for construction based upon either these cost estimates or upon alternative engineering criteria and construction cost estimates if the director determines that such estimates submitted by the applicant are either unreliable or inaccurate. The director shall provide the applicant with a letter or certificate setting forth the dollar amount of the credit, the reason for the credit, and the legal 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 their agreement to the terms of the letter or certificate and return such signed document to the director before credit will be given. The failure of the applicant to sign, date, and return such document within 60 days shall nullify the credit.

C.    Except as provided in subsection D of this section, credit against impact fees otherwise due will not be provided until:

1.    The construction is completed and accepted by the city;

2.    A suitable maintenance and warrant bond is received and approved by the city, when applicable.

D.    Credit may be provided before completion of specified park improvements if adequate assurances are given by the applicant that the standards set out in subsection C of this section will be met and if the developer posts security as provided below for the costs of such construction. Security in the form of a performance bond, irrevocable letter of credit, or escrow agreement shall be posted with and approved by the director. If the park construction project will not be constructed within one year of the acceptance of the offer by the director, the amount of the security shall be increased by 10 percent compounded for each year of the life of the security. If the park construction project is not to be completed within five years of the date of the developer’s offer, the council must approve the park construction project and its scheduled completion date prior to the acceptance of the offer by the director.

E.    Any claim for a credit must be made no later than the time of application for a building permit or permit for mobile home installation. Any claim not so made shall be deemed waived.

F.    Credits shall not be transferable from one project or development to another without the approval of the council and may only be transferred to a different development upon a finding by the council that the dedication for which the credit was given benefits the different impact fee service area.

G.    Determinations made by the director pursuant to this section may be appealed to the council by filing a written request with the director within 10 days of the official’s determination. (Ord. 2192 § 1, 2016; Ord. 1707 § 11, 1997).

21.08.120 Review.

The fee schedule contained in the table in BMC 21.08.130 shall be reviewed by the council at least once each fiscal year. The review shall occur in conjunction with any update of the capital facilities program (CFP) element of the city’s comprehensive plan; provided, that failure to conduct this review shall not invalidate the fee schedule previously adopted. As part of the annual review, the fees shall be adjusted by the same percentage change as in the most recent annual change of the Construction Cost Index published in the Engineering News-Record. (Ord. 2192 § 1, 2016; Ord. 1707 § 12, 1997).

21.08.130 Fee schedule.

TYPE OF DEVELOPMENT

UNIT

PARK IMPACT FEE PER UNIT

OPEN SPACE IMPACT FEE PER UNIT

COMBINED TOTAL IMPACT FEE PER UNIT

Residential by size

 

 

 

 

Less than 500 sq. ft.

Dwelling unit

$1,478.80

$78.35

$1,557.15

500 – 999 sq. ft.

Dwelling unit

$2,193.04

$116.19

$2,309.24

1,000 – 1,999 sq. ft.

Dwelling unit

$3,119.91

$165.30

$3,285.20

2,000 or more sq. ft.

Dwelling unit

$3,808.09

$201.76

$4,009.85

Nonresidential

Sq. ft.

$1.04

$0.05

$1.09

The city of Bothell divides their park system into two major categories: (A) parks and recreation facilities, and (B) open space assets.

(Ord. 2192 § 1, 2016; Ord. 1957 § 1 (Exh. B), 2006; Ord. 1707 Att. A, 1997).

21.08.140 Violation – Penalty.

A violation of this chapter shall be prosecuted in the same manner as misdemeanors are prosecuted and upon conviction the violator shall be punishable according to law; however, in addition to or in lieu of any criminal prosecution Bothell shall have the power to sue in civil court to enforce the provisions of this chapter. (Ord. 2192 § 1, 2016; Ord. 1707 § 13, 1997).

21.08.150 Deferral of impact fees.

Impact fees may be deferred, consistent with Chapter 21.06 BMC. (Ord. 2197 § 3, 2016).