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HomeMy WebLinkAbout56CITY OF RENTON DEVELOPMENT SERVICES DIVISION INTERPRETATION/POLICY DECISION MUNICIPAL CODE SECTION: 4-1-I80I System Development Charges SUBJECT: Partial Payment/Segregation for Fee Purposes Percentage for Developed Area Not to Exceed 100% BACKGROUND: City Code allows for the partial payment of System Development Charges (SDC) for large parcels of property when only a portion of the property is being developed. This allows for the phased payment of the SDC fees as the property development is phased. The intent of this phased payment includes the eventual payment of 100% of the SDC fees due for the entire original parcel. Recognizing that some types of projects do not completely cover the entire site when completed. the code uses a formula for the calculation of the partial payments based upon the assumption that a commercial or industrial site will be considered 100% developed for SDC fee purposes when the site construction covers 80% of the site. The code does not directly address the situation when the effective coverage exceeds 80%. The Fry's Electronic retail development is proposed on a'__ acre site at N 8' St and Garden Av N. The development will occur on the southerly 1'_.66 acres of the site. This 12.66 acres will effectively be 100 r developed. including landscaping setbacks. The application of a 80% factor in the partial payment formula would require a partial SDC fee payment for 15.83 acres. This does not appear to be the intent of the code. JUSTIFICATION: The code states in part: "Partial Payment: The ability exists for the partial payment of the system development charge based upon percentage of the property developed. The owner may apply for partial payment of the fee on a percentage -based prorated basis proportional to the percentage of the parcel which will be developed." It also states that "the system development charge shall be determined on the basis of the percentage of a property that is developed." An 80% factor is used in the calculation based upon the assumption that once a parcel was 80% covered, it was unlikely that any further development would occur. This insures that 100% of the total original SDC fees are collected for the completed site development. It was not the intent to charge portions of the site for a percentage of the SDC fees in excess of the percentage of the area of the site being developed. This same code section allows for fee interpretation as follows: 'The Administrator of the PlanningBuilding/Public Works Department shall make the final decision on interpretation of the partial payment of system development charges."