Chapter 20.10
IMPACT FEES
Sections:
20.10.030 Applicability of impact fee.
20.10.040 Identification of development impacts.
20.10.050 Mitigation review – Alternatives.
20.10.060 Imposition of impact fee.
20.10.070 Establishment of development service areas.
20.10.080 Calculation of impact fee.
20.10.090 Impact fee exemptions.
20.10.120 Impact mitigation fee fund.
20.10.150 Impact fee as additional and supplemental requirement.
20.10.160 Administrative guidelines.
20.10.010 Purpose.
It is the purpose of this chapter to:
A. Ensure that adequate facilities are available to serve new growth and development;
B. 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
C. 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. 1286 § 3, 1997).
20.10.020 Definitions.
A. “Applicant” means the person, firm or corporation proposing a development in the city.
B. “Building permit” means the permit required for new construction and additions pursuant to FMC Title 15. The term “building permit,” as used herein, shall not be deemed to include:
1. Permits required for the remodeling, rehabilitation or other improvements to an existing structure or rebuilding a damaged or destroyed structure, provided there is no increase in the square footage space (for nonresidential construction) or number of dwelling units (for residential construction) resulting therefrom;
2. Permits required for temporary dwellings;
3. Permits required for the replacement of a mobile home on an approved mobile home park space within an approved mobile home park.
C. “Capital improvement plan” means the capital facilities plan element contained in the city of Fife comprehensive plan adopted by Ordinance No. 1236, and any subsequent legislative enactment that amends or otherwise updates said plan.
D. “City” means the city of Fife.
E. “Development” means any proposed land use, zoning or rezoning, comprehensive plan amendment, annexation, subdivision, short subdivision, planned unit development, planned area development, building permit, binding site plan or any other action permitted or regulated by the Fife Municipal Code that creates additional demand and need for public facilities.
F. “Director” means the community development director or his/her designee.
G. “Feepayer” is the person, corporation, partnership, or other legal entity who applies for a building permit and is assessed an impact fee under this title.
H. “Impact” means any additional demand and need for public facilities or services that is reasonably related to the proposed development.
I. “Impact fee” means a payment of money imposed upon development levied pursuant to this title as a condition of development approval to pay for public facilities needed to serve new growth and development, and that is reasonably related to the new development that creates additional demand and need for public facilities, that is a proportionate share of the cost of the public facilities, and that is used for facilities that reasonably benefit the new development. “Impact fee” does not include a reasonable permit or application fee.
J. “Low income housing” means single-family or multifamily housing, the construction of which is either undertaken by a housing authority operating pursuant to Chapter 35.82 RCW or financially assisted pursuant to a federal, state or local government low income housing program, or a not-for-profit charitable organization that follows the same or similar guidelines; provided, that the terms shall apply only to the number of units within a multifamily housing development as are required to be rented to low income tenants.
K. “Mitigation” or “mitigate” means an action which avoids any negative or adverse impact, or which ameliorates any such impact.
L. “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. No improvement or facility included in the capital improvement plan shall be considered a project improvement.
M. “Public facilities” means the following capital facilities owned or operated by the city or other government entities: (1) public streets and roads; (2) publicly owned parks, open space, and recreation facilities; (3) school facilities.
N. “Service area” means a geographical area in which a defined set of public facilities provides services to developments within the area. Service areas may be separately described for each type of public facility.
O. “System improvements” means public facilities that are included in the capital improvement plan and are designed to provide service to service areas within the community at large, in contrast to project improvements. (Ord. 1873 § 1, 2014; Ord. 1736 § 1, 2010; Ord. 1619-07 §§ 1, 2, 2007; Ord. 1286 § 4, 1997).
20.10.030 Applicability of impact fee.
A. This chapter shall be applied as part of and integrated into the city’s land use and development approval procedures, so that mitigation decisions under this chapter are incorporated into development approval and permitting decisions at the earliest stage, thus permitting public review and comment.
B. This chapter shall be uniformly applicable to development that occurs within a designated service area.
C. Mitigation conditions imposed pursuant to this chapter shall be deemed conditions of the development permit and may be enforced by any suitable means. (Ord. 1286 § 5, 1997).
20.10.040 Identification of development impacts.
A. Impact Identification Required. Before a development is given approval or is allowed to proceed, the city shall identify all impacts of the development, if any.
B. Impact Criteria. The city shall consider but not be limited to the following items in identifying or quantifying an impact, to the extent the items applicable are to the development:
1. The provisions of the Fife Municipal Code, the capital improvement plan, or any other adopted city plan.
2. Technical documents which discuss or analyze public facilities or services or adopted city plans.
3. Pre-development versus post-development demands upon public facilities and services.
4. Impact of the development on the size, number, capacity, condition, availability, proximity or other characteristics of public facilities and services.
5. Likelihood that an impact from a development, when aggregated with impacts of future development in the immediate vicinity, will require mitigation due to its cumulative effect.
6. Nature, quantity, cost, identified completion date, if any, and pro rata share if applicable, of contributions, improvements or dedications to public facilities and services, including those offered or suggested by the applicant.
7. Likelihood that the development will benefit from or use public facilities and services.
8. Existing or planned alternatives for financing capital improvements.
9. Whether the development furthers the public health, safety and general welfare.
10. Likelihood of city growth through annexation of areas adjacent to the development.
11. Whether impacts have been previously mitigated, in whole or in part.
12. Any other criteria useful for identifying and quantifying impacts deemed relevant by the city.
C. Identification Cost. The cost of any special investigation, analysis or report necessary for an identification of impacts related to any development shall be borne by the applicant. (Ord. 1286 § 6, 1997).
20.10.050 Mitigation review – Alternatives.
A. Mitigation of Impacts Required. The city shall not give a development approval unless satisfactory provisions have been made to mitigate identified impacts and such provisions meet the policies and goals of this chapter and of the city’s development regulations.
B. Review. The city shall review the identified impacts and any proposed alternatives for mitigating such impacts to determine whether the policies and goals of this chapter and of the city’s development regulations can be met.
C. Mitigation Alternatives. The following alternatives or any combination, either on-site or off-site, may be used as necessary to mitigate or avoid identified impacts. The list is not exhaustive and does not purport to describe all available and viable alternatives. Other alternatives may be used as necessary to achieve the policies and goals of this chapter and of the city’s development regulations.
1. Modification of the development so that identified impacts are avoided.
2. Dedication of land to the city for public purposes.
3. Contributions or payments offered by the applicant for use in mitigating on-site or off-site impacts as authorized under RCW 82.02.020. Contributions pursuant to RCW 82.02.020 shall not be required as a condition of development approval and shall be subject to the limitations of RCW 82.02.020 as now existing or hereafter amended; provided, however, that persons entitled to a refund and/or payment of interest may voluntarily and in writing waive their right to such refund or payment in whole, in part, or for a specified time period to facilitate completion of the designated improvement. No such waiver shall be required as a condition of development approval, but when made shall be recorded with the Pierce County auditor and shall be binding upon subsequent owners.
4. Environmental mitigation agreements under the authority of Chapter 43.21C RCW and FMC Title 17. Such agreements shall not fall within the purview of RCW 82.02.020 and shall be distinct from voluntary contribution agreements.
5. Impact fees assessed pursuant to this chapter. Such fees, if assessed, shall be used only to fund system improvements. Formulas for determining the amount of such fees will be adopted, from time to time, by ordinance of the city council.
6. Contractual arrangements between the applicant and the city permitting use by the general public of facilities or services within the development.
7. Contractual arrangements between the applicant and the city whereby the applicant constructs, funds, or commits to construct or fund public facilities and services which mitigate identified impacts.
8. Any contractual agreement, including but not limited to latecomer’s agreement, no protest agreement, maintenance agreement, or funding agreement which mitigates any identified impact.
9. Any alternative offered by the applicant which is satisfactory to the city and has the effect of mitigating identified impacts.
10. If the city determines that identified impacts would be best mitigated on a regional basis, the city may independently or in conjunction with any other jurisdiction prepare or have prepared a cost estimate and define a benefit area for the regional improvement. The fair share of the total costs to be allocated to the proposed development shall then be determined. (Ord. 1286 § 7, 1997).
20.10.060 Imposition of impact fee.
A. Except as provided in subsection (C) of this section, no building permit shall be issued for a development in a designated service area as herein defined unless the impact fee is calculated, imposed and collected pursuant to this chapter.
B. Impact fees shall be calculated and assessed at the time a building permit application is deemed complete, and except as provided in subsection (C) of this section, collected prior to building permit issuance.
C. Impact fee payments may be deferred until prior to the city conducting a final building occupancy inspection. All applicants and/or legal owners of the property upon which the development activity allowed by the building permit is to occur must sign an impact fee deferral agreement in a form acceptable by the director. The applicant shall pay an application fee as set forth in the current fee schedule.
D. In the event that the fees are not paid within the time provided in this section, the city may institute foreclosure proceedings under the process set forth in Chapter 61.12 RCW, except as revised herein. The then-present owner shall also pay the city’s reasonable attorney fees and costs incurred in the foreclosure process. Notwithstanding the foregoing, the city shall not commence foreclosure proceedings less than 45 calendar days prior to providing written notification to the then-present owner of the property via certified mail with return receipt requested advising of its intent to commence foreclosure proceedings. If the then-present owner cures the default within the 45-day cure period, no attorney fees and/or costs will be owed. In addition, the city retains its full authority to withhold inspections and to suspend, revoke or refuse to issue occupancy and other building permits and to commence enforcement actions due to nonpayment of impact fees. (Ord. 1944 § 1, 2016; Ord. 1873 § 2, 2014; Ord. 1286 § 8, 1997).
20.10.070 Establishment of development service areas.
Service areas, which may vary by type of public facility, are to be established.
A. Such areas will provide a nexus between those paying the fees and receiving the benefits to ensure that those developments paying impact fees receive substantial benefits.
B. Service areas may be designated by the city council, by ordinance or through amendment to the capital improvement plan upon consideration of the following factors:
1. The comprehensive plan.
2. Standards for adequate public facilities incorporated in the capital improvement plan.
3. The projections for full development as permitted by land use ordinances and timing of development.
4. The need for funding unprogrammed capital improvements necessary to support projected development.
5. Such other factors as the city may deem relevant. (Ord. 1286 § 9, 1997).
20.10.080 Calculation of impact fee.
A. Formulas for determining the amount of the impact fees assessed under this chapter will be adopted, from time to time, by ordinance of the city council. The city council shall hold a public hearing before adopting or amending impact fee formulas.
B. If the development for which approval is sought contains a mix of use, the impact fee must be separately calculated for each type of use.
C. Upon application by the developer supported by studies and data, the impact fee may be reduced or eliminated if it is shown that either:
1. The formulae adopted by the city council do not accurately reflect the impact; or
2. Due to unusual circumstances:
a. Facility improvements identified for the applicable service are not reasonably related to the proposed development; or
b. Such facility improvements will not reasonably benefit the proposed development.
The current fee schedule relating to this section of the Fife Municipal Code can be found at Fife City Hall and at the city of Fife’s website: www.cityoffife.org. (Ord. 1873 § 3, 2014; Ord. 1783 § 1 (Exh. A), 2012; Ord. 1286 § 10, 1997).
20.10.090 Impact fee exemptions.
Developments owned or operated, in whole or in part, by the city shall be exempt from the requirement for payment of impact fees; provided, however, the impact fee for an exempt development shall be calculated as provided for herein and paid with public funds by including such amounts in the public share system improvements undertaken within the applicable service area. (Ord. 1286 § 11, 1997).
20.10.100 Impact fee credits.
A. The feepayer shall be entitled to a credit against the applicable impact fee for the value of any dedication of land for, improvement to, or new construction of any system improvements provided by the development to facilities for which such impact fee is imposed that are identified in the capital improvement plan and that are required by the city as a condition of approval for the immediate development proposal, if such dedication, improvement or construction is located within the same service area as the immediate development proposal.
B. The amount of the credit shall be determined at the time of building permit issuance. In the event the amount of the credit is calculated to be greater than the amount of the impact fee due, the feepayer may apply such excess credit toward impact fees imposed on other developments within the same service area; provided, however, if the improvement is one for which a latecomer’s agreement would be authorized, then the feepayer shall only be entitled to a latecomer’s agreement. (Ord. 1873 § 4, 2014; Ord. 1736 § 2, 2010; Ord. 1286 § 12, 1997).
20.10.110 Appeals.
The determination of the director as to the applicability and amount of an impact fee, credit against an impact fee, and/or discount against an impact fee shall be appealable as provided for in this section.
A. The determination of the director shall be appealable to the hearing examiner. Such appeal may be perfected by the proponent or any aggrieved party by giving notice to the director within 10 days of the decision being appealed. Review by the hearing examiner shall be on a de novo basis.
B. The notice of appeal shall be made upon a form to be supplied by the director. A nonrefundable fee shall be paid at the time the notice of appeal is submitted. A hearing shall then be scheduled before the hearing examiner within 30 calendar days of the filing of the notice of appeal and appeal fee.
The current fee schedule relating to this section of the Fife Municipal Code is available at Fife City Hall and at the city of Fife’s website: www.cityoffife.org.
C. The decision of the hearing examiner shall be in writing and shall include findings of fact and conclusions to support the decision.
D. The decision of the hearing examiner shall be final unless, within 21 calendar days, a party of record files and serves upon the city and all affected parties a petition for review under the Land Use Petition Act with the Pierce County superior court. (Ord. 1873 § 5, 2014; Ord. 1783 § 1 (Exh. A), 2012; Ord. 1635-07 § 1, 2007; Ord. 1619-07 § 3, 2007; Ord. 1398 § 1, 2000; Ord. 1286 § 13, 1997).
20.10.120 Impact mitigation fee fund.
A. There is hereby created a fund to be known as the impact mitigation fee fund. The city treasurer shall establish separate accounts within such fund and maintain records for each such account whereby impact fees collected can be segregated by type of facility and by service area. All interest shall be retained in the account and expended for the purposes for which the impact fees were imposed.
B. By April of each year, the city treasurer shall provide a report for the previous calendar year on each impact fee account showing the source and amount of moneys collected, earned, or received and system improvements that were financed in whole or in part by impact fees. (Ord. 1286 § 14, 1997).
20.10.130 Expenditures.
Impact fees for system improvements shall be expended only in conformance with the capital improvement. 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 council. (Ord. 1771 § 1, 2012; Ord. 1286 § 15, 1997).
20.10.140 Refunds.
A. The current owner of property in 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 when the fees were paid or such other period of time established pursuant to this section on public facilities intended to benefit the development activity for which the impact fees were paid. In determining whether impact fees have been encumbered, impact fees shall be considered encumbered on a first in, first out basis. The current owner likewise may receive a proportionate refund where 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 for such service area as established in the capital improvement plan. The city shall notify potential claimants by first class mail deposited with the United States Postal Service addressed to the last known address of claimants.
B. The request for refund money must be submitted to the city council in writing within one year of the date the right to claim a refund arises or the date the 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 within this one-year period, shall be retained and expended on the indicated capital improvements. Refunds of impact fees under this subsection shall include interest earned on the impact fees.
C. A developer may request and shall receive a refund, including interest earned on the impact fees, when the building permit for which the impact fee has been paid has lapsed for noncommencement of construction. (Ord. 1771 § 2, 2012; Ord. 1286 § 16, 1997).
20.10.150 Impact fee as additional and supplemental requirement.
The impact fee is additional and supplemental to, and not in substitution of, 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 improvement plan shall be imposed only if the developer is given a credit against impact fees as provided for in FMC 20.10.100. (Ord. 1286 § 17, 1997).
20.10.160 Administrative guidelines.
The director shall be authorized to adopt forms, applications, brochures, and guidelines for the implementation of this title which may include the adoption of a procedures guide for impact fees. (Ord. 1944 § 2, 2016).