Chapter 12.120
TRAFFIC IMPACT FEE FUNDING SOURCE ADJUSTMENT

Sections:

12.120.010    Purpose.

12.120.020    Traffic impact fee funding source adjustment established.

12.120.030    Application for traffic impact fee funding source adjustment.

12.120.040    Funding source adjustment criteria.

12.120.050    Administration of traffic impact fee funding source adjustment.

12.120.060    Payments to applicants that qualify for adjustment.

12.120.070    Appeals.

12.120.080    Requirement of applicant to stay in business.

12.120.090    Limit on applications.

12.120.010 Purpose.

(1) The purpose of this chapter is to ensure that public health, safety and welfare will be preserved by having safe and efficient roads serving new and existing developments by creating an economic development incentive that will attract certain types of retail development to the City and using a portion of the sales tax revenues generated by such development to provide additional Citywide services.

(2) The requirements of this chapter apply to all new, large, commercial retail business developments meeting the definitions of CMC 12.120.040(1). This chapter, if applicable, is intended to apply in addition to all other requirements imposed by state, local or federal law. (Ord. 09-07 § 1)

12.120.020 Traffic impact fee funding source adjustment established.

There is hereby established a process for new, large, retail establishments to achieve a funding source adjustment for up to 50 percent of the traffic impact fees paid pursuant to CMC Title 19 for development activity which meets the criteria of CMC 12.120.040; provided, however, that the amount of impact fees eligible for a funding source adjustment shall not exceed the total sales tax received by the City from the applicant during the three-year period commencing from the date of certificate of occupancy. (Ord. 16-16 § 2; Ord. 09-07 § 1)

12.120.030 Application for traffic impact fee funding source adjustment.

Any developer applying for a building permit for a new, large, commercial retail business which meets the criteria set forth in CMC 12.120.040 may apply to the Director of Finance or his/her designee for a funding source adjustment of the traffic impact fee requirement established pursuant to CMC Title 19. Said application must be submitted at the time the building permit is applied for, shall be on forms provided by the City, and shall be accompanied by all information and data the City deems necessary to process the application. To the extent it is authorized by law, the City shall endeavor to keep all proprietary information submitted with said application confidential; provided, however, this chapter shall not create or establish a special duty to do so. (Ord. 16-16 § 2; Ord. 09-07 § 1)

12.120.040 Funding source adjustment criteria.

To be eligible for the traffic impact fee funding source adjustment established by this chapter, the applicant shall meet each of the following criteria:

(1) The applicant must be a new, large, commercial retail business in the Covington City limits. For purposes of this chapter, “new, large, commercial retail business” shall mean any business that (a) is not already located in the City of Covington at the time a building permit is applied for, (b) will be contained in at least one building exceeding 150,000 square feet, (c) sells retail goods and services which are subject to the retail sales tax provisions of Chapter 3.10 CMC, (d) applies for a building permit, and (e) is subject to payment of traffic impact fees pursuant to CMC Title 19.

(2) Based on similar store sales, or other reliable data, as determined by the City, the applicant must demonstrate that it is likely to generate to the City of Covington average annual City of Covington portion of sales and use tax revenue of at least $500,000 based upon the three-year period commencing from the date of certificate of occupancy.

(3) The applicant must be a new, large, retail business located within one of the following prescribed land use zones: downtown commercial 3 (DN 3); downtown commercial 4 (DN 4); downtown commercial 5 (DN 5); and downtown commercial 6 (DN 6). (Ord. 16-16 § 2; Ord. 09-07 § 1)

12.120.050 Administration of traffic impact fee funding source adjustment.

(1) Upon acceptance of an application for a funding source adjustment pursuant to CMC 12.120.040, the applicant shall pay to the City the full amount of the traffic impact fees required pursuant to CMC Title 19. The impact fees collected shall belong to the City and shall be available for use by the City upon receipt of the traffic impact fees. At the expiration of a three-year period commencing from the date of issuance of the certificate of occupancy, the Finance Director shall determine if the average annual City of Covington portion of sales and use tax revenue received by the City meets the minimum amount stated in CMC 12.120.040(2). The determination shall be based upon the sales tax reporting requirements of Chapter 3.10 CMC as it now reads or is hereafter amended.

(2) In the event the three-year average annual City of Covington portion of sales and use tax revenue criteria of CMC 12.120.040(2) has been met as determined by the Finance Director, there shall be an adjustment of the funding source allowed for up to 50 percent of the traffic impact fees paid pursuant to CMC Title 19. In such case, an amount equal to 50 percent of the impact fees previously paid to the City shall be returned to the applicant conditioned upon the requirement that the amount returned will be funded by the sales tax revenue generated by the new retail business.

(3) In the event that the three-year average annual City of Covington portion sales and use tax revenue criteria of CMC 12.120.040(2) has not been met as determined by the Finance Director, a funding source adjustment will not be granted, and the City shall not be required to pay an amount equal to 50 percent of the traffic impact fee collected; provided, however, in cases where the applicant has met at least 75 percent of the amount set forth in CMC 12.120.040(2), the applicant shall be allowed to adjust the funding source for a smaller portion of the impact fees paid, which shall result in the City paying back an amount equal to 25 percent of the impact fees collected conditioned upon the requirement that the amount returned will be funded by the sales tax generated by the new retail business.

(4) In cases where the Finance Director has determined that the applicant has not met either the three-year annual sales and use tax revenue criteria of CMC 12.120.040(2) or 75 percent thereof, the applicant shall not be entitled to any adjustment to the funding source of the traffic impact fees paid pursuant to CMC Title 19. (Ord. 16-16 § 2; Ord. 09-07 § 1)

12.120.060 Payments to applicants that qualify for adjustment.

All payments made to applicants that are entitled to a funding source adjustment shall be paid by the City in 16 equal quarterly payments. The first payment shall be paid to the applicant within 90 days following the three-year period following the issuance of a certificate of occupancy. Each subsequent payment will be made three months after the previous quarter’s payment. (Ord. 09-07 § 1)

12.120.070 Appeals.

Any developer that has applied for this funding source adjustment and is aggrieved by the determination of the Director of Finance as to whether the criteria of CMC 12.120.040(2) have been met; the eligibility for a funding source adjustment for the fees required by CMC Title 19 pursuant to CMC 12.120.040(1); or the amount of fees that are eligible for the funding source adjustment to which an applicant is entitled pursuant to CMC 12.120.040 may file a written appeal to the City’s Hearing Examiner as established in Chapter 14.45 CMC. The City Examiner is hereby specifically authorized to hear and decide such appeals and the decision of the Hearing Examiner shall be final action of the City and subject to appeal pursuant to Chapter 14.45 CMC. (Ord. 16-16 § 2; Ord. 01-09 § 9; Ord. 09-07 § 1)

12.120.080 Requirement of applicant to stay in business.

Any new, large, retail development applying for and receiving a traffic impact fee funding source adjustment pursuant to this chapter is required to stay in business a minimum of 10 years from the date of the certificate of occupancy. If the applicant closes the retail business within 10 years of the certificate of occupancy, an amount equal to 50 percent of the traffic impact fees paid back pursuant to a funding source adjustment made pursuant to this chapter must be repaid to the City within 60 days of the retail business closing. If the closure occurs within the four-year pay back period, any payment not yet made by the City will not be required to be made, and any payments made must be repaid to the City within 60 days of the retail business closing. (Ord. 09-07 § 1)

12.120.090 Limit on applications.

Applications for a traffic impact fee funding source adjustment pursuant to this chapter must be received within three years from the effective date of the ordinance codified in this chapter. (Ord. 09-07 § 1)