TITLE
The Mayor and City Council shall hear public comment regarding the DRAFT - Land Use Assumptions, Infrastructure Improvements Plan, and Development Fee report which, serves as the basis for development impact fees proposed to be effective February 2020. This item will be presented by Brenda Hasler.
AGENDA ITEM DESCRIPTION
In order to continue collecting Development Impact Fees, the City must comply with Arizona Revised Statute (ARS) §9-463.05, by updating the Land Use Assumptions (LUA) and Infrastructure Improvement Plan (IIP) prepared in 2014 by TischlerBise. TischlerBise was selected to prepare this update. The LUA section of the report incorporates information provided by City staff to establish current land use and projected land use in 10 years. Single-family, multi-family, commercial/retail, office, industrial and institutional uses of land have been projected to establish the need for growth-related infrastructure. The IIP section of the report is incorporated into the discussion of each fee category (Parks & Recreation, Libraries, Police, Fire and Streets).
The following three components must be included as part of adopting and collecting development impact fees. These components must be updated at least every five years.
1. Land Use Assumptions - Projections of changes in land uses, densities, intensities, and population for a specified service area over a period of at least ten years and pursuant to the general plan of the municipality.
2. Infrastructure Improvement Plan - A written plan that identifies each necessary public service or facility expansion that is proposed to be the subject of a development fee that complies with the requirements of ARS §9-463.05. This is based on the City's Capital Improvements Plan.
3. Development Fees - The fees to fund the infrastructure made necessary due to development.
Although the DRAFT - Land Use Assumptions, Infrastructure Improvements Plan, and Development Fee report contains all three elements, the Land Use Assumptions and Infrastructure Improvement Plan (1 and 2, above) must be approved prior to the adoption of the Development Fees. Adoption of the Land Use Assumptions and Infrastructure Improvements Plan is anticipated to be September 3, 2019.
The DRAFT - Land Use Assumptions, Infrastructure Improvements Plan, and Development Fee report was posted on the City's website on May 1, 2019, to provide interested parties with a minimum of 60 days notice of the planned Public Hearing. An email was sent to stakeholders with a link to where the DRAFT - Land Use Assumptions, Infrastructure Improvements Plan, and Development Fee report could be obtained as well as City staff contact information for additional questions.
Two stakeholders reached out to City staff with concerns. One stakeholder had questions regarding the timing of the new fees in relation to projects they anticipate starting in the near future and how that would impact their budgeting of the fees. The second stakeholder (Home Builders Association of Central Arizona, HBACA) sent a letter to the City detailing several concerns. City staff met with TischlerBise to discuss the concerns in the letter. A City/Consultant response was drafted and provided to HBACA. After reviewing the responses and revisions, HBACA did not believe it was necessary to set up a conference call for further discussion of these issues and Jackson Moll, representing the HBACA was comfortable with the City numbers.
Brenda Hasler, Senior Financial Analyst will present this item. Carson Bise, President, TischlerBise will be available for questions.
STAFF RECOMMENDATION
Staff recommends Mayor and City Council hear public comment regarding the DRAFT - Land Use Assumptions, Infrastructure Improvements Plan, and Development Fee report, which serves as the basis for development impact fees proposed to be effective February 2020.