Chapter 13.40
IMPACT FEES
Sections:
13.40.010 Findings and authority.
13.40.030 Assessment of impact fees.
13.40.040 Independent fee calculations.
13.40.050 Credits and adjustments.
13.40.080 Establishment of impact fee account for fire protection.
13.40.090 Establishment of impact fee account for parks.
13.40.120 Review and update of impact fees.
13.40.130 Miscellaneous provisions.
Code reviser’s note: Ord. 1224 included two sections numbered 13.40.050. The chapter has been editorially renumbered to read sequentially and avoid duplication of numbering.
13.40.010 Findings and authority.
The council of the town of La Conner (the “council”) hereby finds and determines that new growth and development, including but not limited to new residential, commercial, retail, office, and industrial development, in the town of La Conner will create additional demand and need for fire protection and park facilities in the town of La Conner, and the council finds that new growth and development should pay a proportionate share of the cost of fire protection and park facilities needed to serve that new growth and development. The town of La Conner has conducted a study documenting the procedures for measuring the impact of new developments on fire protection and park facilities. This study has contributed to the rates as established in the fee schedule of the town of La Conner. Therefore, pursuant to Chapter 82.02 RCW, the council adopts this chapter to assess impact fees for fire protection and park facilities. The provisions of this chapter shall be liberally construed in order to carry out the purposes of the council in establishing the impact fee program. [Ord. 1224 § 2, 2023; Ord. 1219 § 2, 2022.]
13.40.020 Definitions.
The following words and terms shall have the following meanings for the purposes of this chapter unless the context clearly requires otherwise. Terms otherwise not defined herein shall be defined pursuant to RCW 82.02.090 or given their usual and customary meaning.
(1) “Act” means the Growth Management Act, Chapter 36.70A RCW, as now in existence or as hereafter amended.
(2) “Building permit,” for the purposes of this chapter only, means an official document or certification which is issued by Skagit County and which authorizes the construction, alteration, enlargement, conversion, reconstruction, remodeling, rehabilitation, erection, demolition, moving or repair of a building or structure. In the case of increased impacts on fire protection facilities caused by a change in use or occupancy of an existing building or structure, and where no building permit is required, the term “building permit” shall specifically include business registrations.
(3) “Capital facilities plan” means the capital facilities plan element of the town’s comprehensive plan adopted pursuant to Chapter 36.70A RCW, and such plan as amended.
(4) “Council” means the town council of the town of La Conner.
(5) “Department” means the department of planning.
(6) “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, that creates additional demand and need for fire protection facilities.
(7) “Director” means the director of the department of planning or the director’s designee.
(8) “Dwelling unit” means a building, or portion thereof, designed for residential occupancy consisting of one or more rooms which are arranged, designed or used as living quarters for one family only.
(9) “Encumbered” means to reserve, set aside or otherwise earmark the impact fees in order to pay for commitments, contractual obligations or other liabilities incurred for fire protection or park facilities.
(10) “Fee payer” is a person, corporation, partnership, an incorporated association, or any other similar entity, or department or bureau of any governmental entity commencing a land development activity which creates the demand for additional fire protection or park facilities, and which requires the issuance of a building permit. “Fee payer” includes an applicant for an impact fee credit.
(11) “Fire protection facilities” means fire trucks and apparatus, and fire stations, and any furnishings and equipment that are used with fire trucks and apparatus or fire stations, and which can be capitalized.
(12) “Fire protection project improvements” means site improvements and facilities that are planned and designed to provide service for a particular development, or users of the project and are not fire protection system improvements. No fire protection improvement or facility included in a capital facilities plan approved by the council shall be considered a fire protection project improvement.
(13) “Fire protection system improvements” means fire protection facilities that are included in the town of La Conner’s capital facilities plan and are designed to provide service to service areas within the community at large, in contrast to fire protection project improvements.
(14) “Hearing examiner” means the examiner who acts on behalf of the council in considering and applying land use regulatory codes as provided under Chapter 15.12 LCMC. Where appropriate, “hearing examiner” also refers to the office of the hearing examiner.
(15) “Impact fee” means a payment of money imposed by the town of La Conner on development activity pursuant to this chapter as a condition of granting development approval in order to pay for the fire protection or park facilities needed to serve new growth and development.
(16) “Impact fee account” or “account” means the accounts established for the fire protection facilities’ impact fees collected, and for park impact fees collected. The accounts shall be established pursuant to LCMC 2.09.020 and comply with the requirements of RCW 82.02.070.
(17) “Independent fee calculation” means the fire protection or park impact calculation prepared by a fee payer to support the assessment of an impact fee other than by the use of the fee schedule.
(18) “Interest” means the interest rate earned by local jurisdictions in the State of Washington Local Government Investment Pool, if not otherwise defined.
(19) “Low-income housing” means housing provided to families whose annual income is 80 percent or less than Skagit County’s median family income.
(20) “Owner” means the owner of record of real property; provided, that if the real property is being purchased under a recorded real estate contract, the purchaser shall be considered the owner of the real property.
(21) “State” means the state of Washington.
(22) “Town” means the town of La Conner. [Ord. 1224 § 2, 2023; Ord. 1219 § 2, 2022.]
13.40.030 Assessment of impact fees.
(1) Effective February 1, 2023, the town shall collect impact fees, based on the fee schedule of the town of La Conner, from any applicant seeking development approval from the town for any development activity within the town.
(2) Except when fees are deferred, the fire impact fee and/or the park impact fee shall be imposed based on the fee schedule that is in effect at the time the submitted building permit application is determined to be complete and shall be payable prior to issuance of the permit, or pursuant to an independent fee calculation accepted by the director, and adjusted for any credits. When fees are deferred, the assessment will be based on the fees in effect at the time of payment.
(3) The amount to be paid shall not be increased for any applicant that submitted a complete application for the building permit before the city established the impact fee rates.
(4) Applicants that have been awarded credits prior to the submittal of the complete building permit application shall submit, along with the complete building permit application, a copy of the letter or certificate prepared by the director setting forth the dollar amount of the credit awarded. Impact fees, as determined after the application of appropriate credits, shall be collected from the fee payer at the time the building permit is issued.
(5) The town shall not approve the issuance of a building permit by Skagit County unless and until the impact fees have been paid or credit(s) awarded. [Ord. 1224 § 2, 2023; Ord. 1219 § 2, 2022.]
13.40.040 Independent fee calculations.
(1) If, in the judgment of the director, none of the fee categories or fee amounts set forth in the fee schedule accurately describes or captures the impacts of the new development, the applicant shall conduct an independent fee calculation and the director may impose alternative fees on a specific development based on those calculations, once accepted by the town.
(2) Fee payers may opt to not have the impact fees determined according to the fee schedule. Such fee payers shall prepare and submit to the director an independent fee calculation for the development activity for which a building permit is sought. The documentation submitted shall show the basis upon which the independent fee calculation was made.
(3) A nonreimbursable administrative fee shall be charged for each independent fee calculation. The fee shall be deposited with the town to pay for town’s review of the independent fee calculation upon submittal of the documented independent fee study.
(4) After the town completes its review, the actual fees and expenses will be determined and the cash deposit shall be adjusted to provide for a refund by the town or additional payment by the fee payer.
(5) While there is a presumption that the calculations set forth in the fee schedule are valid, the director shall consider the documentation submitted by the fee payer, but is not required to accept such documentation which the director reasonably deems to be inaccurate or not reliable, and may, in the alternative, require the fee payer to submit additional or different documentation for consideration. The director is authorized to adjust the impact fees on a case-by-case basis based on the independent fee calculation, the specific characteristics of the development, and/or where adjustment is deemed by the director to be appropriate based on principles of fairness under the circumstances of the case.
(6) Determinations made by the director pursuant to this section may be appealed to the hearing examiner subject to the procedures set forth in LCMC 15.12.130. [Ord. 1224 § 2, 2023; Ord. 1219 § 2, 2022.]
13.40.050 Credits and adjustments.
(1) A fee payer can request that a credit or credits for fire protection impact fees be awarded to them for fire protection system improvement projects provided by the fee payer in excess of the standard requirements for the fee payer’s development if the land, improvements, and/or the facility constructed are identified as fire protection system improvements that provide capacity to serve new growth in the capital facilities plan, or the director, at their discretion, makes the finding that such land, improvements, and/or facilities would serve the fire protection goals and objectives of the capital facilities plan.
(2) A fee payer can request that a credit or credits for park impact fees be awarded to them for park system improvement projects provided by the fee payer in excess of the standard requirements for the fee payer’s development if the land, improvements, and/or the facility constructed are identified as park system improvements that provide capacity to serve new growth in the capital facilities plan, or the director, at their discretion, makes the finding that such land, improvements, and/or facilities would serve the goals and objectives of the capital facilities plan.
(3) For each request for a credit or credits, the director shall determine the value of dedicated land by using available documentation or selecting an appraiser to determine the value of the land being dedicated. The value of improvements will be determined through documentation submitted by the fee payer.
(4) The fee payer shall pay the cost of the appraisal and shall deposit on account the estimated cost of the appraisal as determined by the city at the time the fee payer requests consideration for a credit.
(5) After receiving the appraisal, the director shall provide the applicant with a letter or certificate setting forth the dollar amount of the credit, the reason for the credit, where applicable, the legal description of the site donated, and the legal description or other adequate 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 the impact fee credit will be awarded. The failure of the applicant to sign, date, and return such document within 60 days shall nullify the credit.
(6) Any claim for credit must be made no later than the time of application for a building permit. Any claim not so made shall be deemed waived.
(7) Determinations made by the director pursuant to this section shall be subject to the appeals procedures set forth in Chapter 15.135 LCMC.
(8) Pursuant to and consistent with the requirements of RCW 82.02.060, the fee rate in the fee schedule has been reasonably adjusted for other revenue sources which are earmarked for, or pro ratable to, funding fire protection or park facilities.
(9) The impact fee paid by developers of low-income housing shall be reduced to not more than 50 percent of the total of any impact fee assessed; provided, that said developer provides written, permanent guarantees that the property will not be used for any purpose other than low-income housing. The town council may, upon written agreement with the applicant, further reduce the required impact fee based on a further reduction in the size and values of the buildings to be constructed. [Ord. 1224 § 2, 2023; Ord. 1219 § 2, 2022.]
13.40.060 Exemptions.
(1) The following shall be exempted from the payment of fire protection or park impact fees:
(a) Replacement of a structure with a new structure of the same size and use at the same site or lot when such replacement occurs within 12 months of the demolition or destruction of the prior structure.
(b) Alterations or expansion or enlargement or remodeling or rehabilitation or conversion of an existing dwelling unit where no additional units are created and the use is not changed.
(c) Alterations of an existing nonresidential structure that does not expand the useable space and that does not involve a change in use.
(d) Miscellaneous improvements, including but not limited to fences, walls, swimming pools, and signs.
(e) Demolition or moving of a structure.
(f) Any building permit application that has been submitted to the department before 4:00 p.m. the business day before the first effective date of the fire protection or park impact fee rate schedule and subsequently determined to be a complete application by the city.
(g) All nonresidential development shall be exempt from the requirement to pay a park impact fee.
(2) The director shall be authorized to determine whether a particular development activity falls within an exemption identified in this section. Determinations of the director shall be subject to the appeals procedures set forth in LCMC 15.12.130. [Ord. 1224 § 2, 2023; Ord. 1219 § 2, 2022.]
13.40.070 Appeals.
(1) Any fee payer may pay the impact fees imposed by this chapter under protest in order to obtain a building permit. Appeals regarding the impact fees imposed on any development activity may only be made by the fee payer of the property where such development activity will occur. No appeal submitted under protest shall be permitted unless and until the impact fees at issue have been paid. Alternatively, any fee payer may appeal the impact fees determined by the director without first paying the fees, providing the applicant is willing to provide a satisfactory security of the appealed fee amount prior to issuance of the building permit. Alternatively, any fee payer may appeal the impact fees determined by the director without first paying the fees, provided the applicant is willing to postpone issuance of the building permit until after the appeal process when the revised final fee is known.
(2) Determinations of the director with respect to the applicability of the impact fees to a given development activity, the availability or value of a credit, or the director’s decision with respect to the independent fee calculation, or any other determination which the director is authorized to make pursuant to this chapter, can be appealed to the hearing examiner.
(3) Appeals shall be taken within 10 days of the director’s issuance of a written determination by filing with the office of the hearing examiner a notice of appeal specifying the grounds thereof and depositing the necessary fee, which is set forth in the existing fee schedules for appeals of administrative decisions. The director shall transmit to the hearing examiner all papers constituting the record for the determination, including, where appropriate, the independent fee calculation.
(4) The hearing examiner shall fix a time for the hearing of the appeal, give notice to the parties in interest, and decide the same as provided in LCMC 15.12.090. At the hearing, any party may appear in person or by agent or attorney.
(5) The hearing examiner is authorized to make findings of fact regarding the applicability of the impact fees to a given development activity, the availability or amount of the credit, or the accuracy or applicability of an independent fee calculation. The decision of the hearing examiner shall be final, except as provided in LCMC 15.12.140.
(6) The hearing examiner may, so long as such action is in conformance with the provisions of this chapter, reverse or affirm, in whole or in part, or may modify the determinations of the director with respect to the amount of the impact fees imposed or the credit awarded upon a determination that it is proper to do so based on principles of fairness, and may make such order, requirements, decision or determination as ought to be made, and to that end shall have the powers which have been granted to the director by this chapter.
(7) Any fee payer aggrieved by any decision of the office of the hearing examiner may appeal the examiner’s final decision as provided in LCMC 15.12.140. [Ord. 1224 § 2, 2023; Ord. 1219 § 2, 2022.]
13.40.080 Establishment of impact fee account for fire protection.
(1) Impact fee receipts shall be earmarked specifically and deposited in special interest-bearing accounts. The fees received shall be prudently invested in a manner consistent with the investment policies of the town.
(2) There is hereby established a separate impact fee account for the fees collected pursuant to this chapter: the fire protection facilities impact fee account. Funds withdrawn from these accounts must be used in accordance with the provisions of LCMC 13.40.110. Interest earned on the fees shall be retained in the account and expended for the purposes for which the impact fees were collected. These funds will be collected from any new development of any type within the town.
(3) On an annual basis, the finance director shall provide a report to the council on the fire protection impact fee account showing the source and amount of all moneys collected, earned, or received, and the fire protection system improvements that were financed in whole or in part by impact fees.
(4) Impact fees shall be expended or encumbered within 10 years of receipt, unless the council identifies in written findings an extraordinary and compelling reason or reasons for the delay. [Ord. 1224 § 2, 2023; Ord. 1219 § 2, 2022.]
13.40.090 Establishment of impact fee account for parks.
(1) Impact fee receipts shall be earmarked specifically and deposited in special interest-bearing accounts. The fees received shall be prudently invested in a manner consistent with the investment policies of the town.
(2) There is hereby established a separate impact fee account for the fees collected pursuant to this chapter: the parks impact fee account. Funds withdrawn from these accounts must be used in accordance with the provisions of LCMC 13.40.110. Interest earned on the fees shall be retained in the account and expended for the purposes for which the impact fees were collected. These funds will be collected from any new residential development within the town. For the purposes of this chapter, residential uses shall also include short-term residential uses such as hotels, motels, and vacation rental properties.
(3) On an annual basis, the finance director shall provide a report to the council on the parks impact fee account showing the source and amount of all moneys collected, earned, or received, and the park acquisitions or improvements that were financed in whole or in part by impact fees.
(4) Impact fees shall be expended or encumbered within 10 years of receipt, unless the council identifies in written findings an extraordinary and compelling reason or reasons for the delay. [Ord. 1224 § 2, 2023; Ord. 1219 § 2, 2022.]
13.40.100 Refunds.
(1) If the town fails to expend or encumber the impact fees within ten years of when the fees were paid or, where extraordinary or compelling reasons exist, such other time periods as established, the current owner of the property on which impact fees have been paid may receive a refund of such fees. In determining whether impact fees have been expended or encumbered, impact fees shall be considered expended or encumbered on a first-in, first-out basis; provided, that any party that voluntarily elects to use the alternative fee payment method specified in LCMC 13.40.040 shall sign as a condition of use of the alternative fee payment method a waiver of right on a form prepared and provided by the town to recovery of impact fees not spent within the statutory six-year timeframe.
(2) The town shall notify potential claimants by first class mail deposited with the United States Postal Service at the last known address of such claimants. A potential claimant or claimant must be the owner of the property.
(3) Owners seeking a refund of impact fees must submit a written request for a refund of the fees to the director within one year of the date the right to claim the refund arises or the date that notice is given, whichever is later.
(4) Any impact fees for which no application for a refund has been made within this one-year period shall be retained by the town and expended on the appropriate fire protection or park facilities.
(5) Refunds of impact fees under this section shall include any interest earned on the impact fees by the town.
(6) If and when the town seeks to terminate any or all components of the fire protection or park impact fee programs, all unexpended or unencumbered funds from any terminated component or components, including interest earned, shall be refunded pursuant to this section. Upon the finding that any or all fee requirements are to be terminated, the town shall place notice of such termination and the availability of refunds in a newspaper of general circulation at least two times and shall notify all potential claimants by first class mail to the last known address of the claimants. All funds available for refund shall be retained for a period of one year. At the end of one year, any remaining funds shall be retained by the town, but must be expended for the appropriate fire protection or park facilities. This notice requirement shall not apply if there are no unexpended or unencumbered balances within an account or accounts being terminated.
(7) The town shall also refund to the developer of property for which impact fees have been paid all impact fees paid, including interest earned on the impact fees, if the development activity for which the impact fees were imposed did not occur. [Ord. 1224 § 2, 2023; Ord. 1219 § 2, 2022.]
13.40.110 Use of funds.
(1) Pursuant to this chapter, impact fees:
(a) Shall be used for fire protection or park system improvements that will reasonably benefit the new development; and
(b) Shall not be imposed to make up for deficiencies in existing fire protection or park facilities serving existing developments; and
(c) Shall not be used for maintenance or operations.
(2) As a general guideline, fire protection impact fees may be used for any fire protection system improvements which could otherwise be funded by a bond issue of the town. Similarly, park impact fees may be used for the acquisition or improvement of any park or recreation facility which could otherwise be funded by such bond issue.
(3) Fire protection facilities impact fees may be spent for fire protection system improvements, including but not limited to fire trucks, boats, apparatus, and fire stations, including planning, land acquisition, site improvements, necessary off-site improvements including mitigation, construction, engineering, architectural, permitting, financing, and administrative expenses, applicable impact fees or mitigation costs, and any other expenses which can be capitalized.
(4) Park impact fees may be spent for park improvements including but not limited to land acquisition, facility improvements, and recreational equipment, including planning, site improvements, necessary off-site improvements including mitigation, construction, engineering, architectural, permitting, financing, and administrative expenses, applicable impact fees or mitigation costs, and any other expenses which can be capitalized.
(5) Impact fees may be used to recoup system improvement costs previously incurred by the town to the extent that new growth and development will be served by the previously constructed improvements or incurred costs.
(6) In the event that bonds or similar debt instruments are or have been issued for the advanced provision of system improvements for which 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 or improvements provided are consistent with the requirements of this section and are used to serve the new development. [Ord. 1224 § 2, 2023; Ord. 1219 § 2, 2022.]
13.40.120 Review and update of impact fees.
(1) The fee rate schedules set forth in the fee schedule of the town of La Conner shall be reviewed by the council no later than two years after the effective date of the attached fee rate schedule, and no more than every two years thereafter.
(2) The fee schedules set forth in the fee schedule of the town of La Conner shall be reviewed by the council as it may deem necessary and appropriate in conjunction with the annual update of the capital facilities plan element of the city’s comprehensive plan. [Ord. 1224 § 2, 2023; Ord. 1219 § 2, 2022.]
13.40.130 Miscellaneous provisions.
(1) Existing Authority Unimpaired. Nothing in this chapter shall preclude the town from requiring the fee payer or the proponent of a development activity to mitigate adverse environmental impacts of a specific development pursuant to the State Environmental Policy Act, Chapter 43.21C RCW, based on the environmental documents accompanying the underlying development approval process, and/or Chapter 58.17 RCW, governing plats and subdivisions; provided, that the exercise of this authority is consistent with the provisions of RCW 82.02.050(1)(c).
(2) Captions. The chapter and section captions used in this chapter are for convenience only and shall not control or affect the meaning or construction of any of the provisions of this chapter.
(3) Severability. If any portion of this chapter is found to be invalid or unenforceable for any reason, such finding shall not affect the validity or enforceability of any other section of this chapter. [Ord. 1224 § 2, 2023; Ord. 1219 § 2, 2022.]