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HomeMy WebLinkAboutORD 5957 CITY OF RENTON, WASHINGTON ORDINANCE NO. 5957 AN ORDINANCE OF THE CITY OF RENTON, WASHINGTON, AMENDING SUBSECTION 4-1-190.G OF THE RENTON MUNICIPAL CODE,AMENDING IMPACT FEE REGULATIONS, PROVIDING FOR SEVERABILITY, AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, new growth and development in the City create additional demand and need for public facilities and the City has adopted impact fees in order to keep pace with such growth; and WHEREAS, the City charges impact fees for changes in use or tenancy that create more impact than the previous use; and WHEREAS, it is reasonable to consider a new use in a building that has been vacant for a long period of time as not a change of use, but as a new use that will have new impacts on the City's parks, transportation infrastructure, and fire facilities, for which it is reasonable to charge impact fees; and WHEREAS, the City Council finds that the impacts of establishing a new use in a vacant building increase over the length of vacancy such that it is reasonable to amortize any impact fee credit over the length of vacancy; and WHEREAS, this matter was duly referred to the Planning Commission for investigation and study, and the matter was considered by the Planning Commission; and WHEREAS, pursuant to RCW 36.70A.106, on July 23, 2019, the City notified the State of Washington of its intent to adopt amendments to its development regulations; and 1 ORDINANCE NO. 5957 WHEREAS, the Planning Commission held a public hearing on September 4, 2019, considered all relevant matters, and heard all parties in support or opposition, and subsequently forwarded a recommendation to the City Council; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON, DO ORDAIN AS FOLLOWS: SECTION I. All portions of the Renton Municipal Code in this ordinance not shown in strikethrough and underline edits remain in effect and unchanged. SECTION II. Subsection 4-1-190.G of the Renton Municipal Code is amended as shown below. All other provisions in 4-9-190 remain in effect and unchanged. G. COLLECTION OF IMPACT FEES: 1. Transportation, Parks, and Fire Impact Fees: a. Applicability: The City shall collect impact fees, based on the rates in the City of Renton Fee Schedule, from any applicant seeking development approval from the City for any development activity within the City, when such development activity requires the issuance of a building permit or a permit for a change in use, and creates a demand for additional public facilities. b. Transportation and Parks Basis and Amount: Maximum allowable impact fees for transportation and parks are established by the applicable Rate Study. The rates to be charged by the City are listed in the City of Renton Fee Schedule. c. Fire Impact Fee Basis and Amount: The maximum allowable fees shall be based on the fire capital facilities plan and the rate study developed by 2 ORDINANCE NO. 5957 the RRFA, approved by its Board, and adopted by the City as part of the capital facilities element of the City's Comprehensive Plan and as a fire impact fee Rate Study. The rates to be charged are listed in the City of Renton Fee Schedule. 2. School Impact Fees: a. Applicability: The City shall collect impact fees, based on the rates in the City of Renton Fee Schedule, from all applicants seeking development approval from the City for any residential development activity in that portion of the City located within each respective school district's boundaries. b. Basis and Amount: The maximum allowable fees shall be based on a school capital facilities plan developed by the appropriate school district and approved by the School Board, and adopted by reference by the City as part of the capital facilities element of the City's Comprehensive Plan.The rates to be charged are listed in the City of Renton Fee Schedule. c. Adjustment by Council: The City Council may adjust the fees, as it sees fit, to take into account local conditions such as, but not limited to, price differentials throughout each respective school district in the cost of new housing, school occupancy levels, and the percent of each school district's capital facilities budget, which will be expended locally. d.Classification by Dwelling Type:Separate fees shall be calculated for single family and multi-family dwellings, and separate student generation rates must be determined by each school district for each type of dwelling. For purposes 3 ORDINANCE NO. 5957 of this Section, mobile homes shall be treated as single family dwellings; duplexes and accessory dwelling units shall be treated as multi-family dwellings. e. Credit for Tax Contributions: The formula in Attachment A to Ordinance 4808 provides a credit for the anticipated tax contributions that would be made by the development based on historical levels of voter support for bond issues in a school district. 3. Changes in Use or Tenancy: When an impact fee applies to a change of use permit, the impact fee shall be the applicable impact fee for the land use category of the new use, less any impact fee previously paid for the land use category of the prior use. If the prior use paid impact fees based on an Independent Fee Calculation that was approved by the City,the new use shall pay based on the new land use category, less the impact fee paid by the prior use identified in the Independent Fee Calculation. For purposes of this provision, a change of use should be reviewed based on the land use category provided in the Rate Study that best captures the broader use of the property under development. Changes in use or tenancy, if consistent with the general character of the building or building aggregations (i.e., "industrial park," or"specialty retail") should not be considered a change in use that is subject to an impact fee. Further, minor changes in tenancies that are consistent with the general character of the included structure, building, or previous use should not be considered changes in use subject to an impact fee. If no impact fee was paid for the prior use, the impact fee for the new use shall be reduced by an amount equal to the current impact 4 ORDINANCE NO. 5957 fee rate for the prior use.Vacant buildings shall be assessed as if in the most recent legally established use as shown on a locally owned business license or development permit documents. 4.Vacant Structures or Buildings:There is not a limit on the number of years a single family dwelling unit is vacant to be eligible to use an impact fee deduction. After December 31, 2020, the following applies: a. When an existing structure or building or portion thereof has been vacant for less than two (2) years and six (6) months, the impact fee shall be the applicable impact fee for the land use category of the new use, less any impact fee previously paid for the land use category of the prior use. i. If no impact fee was paid for the prior use, the impact fee for the new use shall be reduced by an amount equal to the current impact fee rate for the prior use. b. When an existing structure or building or portion thereof has been vacant for more than two (2) years and six (6) months, but less than five (5) years, the impact fee shall be the applicable impact fee of the new use, less fifty percent (50%) of the amount paid for the land use category of the prior use. i. If no impact fee was paid for the prior use, the impact fee for the new use shall be reduced by an amount equal to fifty percent (50%) of the current impact fee rate for the prior use. c. When an existing structure or building or portion thereof has been vacant for a period of five (5) years, the impact fee shall be the applicable impact 5 ORDINANCE NO. 5957 fee for the land use of the new category; there shall not be a deduction of the impact fee that was or was not previously paid for the land use category of the prior use. 45. Mixed Use: For mixed use developments, impact fees shall be imposed for the proportionate share of each land use, based on the applicable measurement in the impact fee rates in the City of Renton Fee Schedule. 66.Timing of Assessment and Collection: Impact fees shall be determined at the time the complete application for a building permit or a permit for a change in use is submitted using the impact fees then in effect. Impact fees shall be due and payable before the building permit or permit for a change of use is issued by the City. 67. Documentation of Credit Required: Feepayers allowed credits prior to the submittal of the complete building permit application or an application for a permit for a change of use shall submit, along with the complete application, a copy of the letter prepared by the Administrator, school district superintendent, or RRFA official setting forth the dollar amount of the credit allowed. Impact fees, as determined after the application of any credits, shall be collected from the feepayer no later than the time a building permit or permit for a change of use is issued. 7-8. Deferral for Subdivisions, Short Subdivisions, and Planned Unit Developments: An applicant for residential subdivision, short subdivision, or planned unit development may defer payment of impact fees for all of the 6 ORDINANCE NO. 5957 dwelling units to be created in the development until the earlier of the time of closing of the first sale of a single detached dwelling unit, condominium unit, or a multi-family residential building or eighteen (18) months after the issuance of the original building permit, but only if before recording the subdivision or short subdivision, the applicant: a.Submits to the Administrator a signed and notarized deferred impact fee application and acknowledgement form, which includes the legal description, tax account number, and address of each individual in the development; b. Records at the applicant's expense a covenant and lien that complies with the requirements of subsections G89bi through vii of this Section; and c. Pays the applicable nonrefundable administrative fee. 89.Deferral for Single Family,Condominium,and Multi-Family Dwellings: A building permit applicant may defer payment of impact fees for a single detached dwelling unit, condominium unit, or all of the dwelling units in a multi- family residential building until the earlier of the time of closing of the first sale of a single detached dwelling unit, a condominium unit or a multi-family residential building or eighteen (18) months after issuance of the original building permit, but only if before issuance of the building permit, the applicant: a.Submits to the Administrator a signed and notarized deferred impact fee application and acknowledgement form for each single detached dwelling unit, condominium unit or all of the dwelling units in a multi-family residential building for which the applicant wishes to defer payment of the impact fees; and 7 ORDINANCE NO. 5957 b. Records at the applicant's expense a covenant and lien in the amount of the deferred impact fee(s) and that includes the legal description, tax account number, and address of the property that: i. Requires payment of the impact fees to the City at the earlier of the time of closing of the first sale or eighteen (18) months after issuance of the original building permit; and ii. Provides that if the impact fees are paid through escrow at closing of sale, in the absence of an agreement between the buyer and the seller to the contrary, the impact fees shall be paid from the seller's proceeds; and iii. Provides that the seller bears strict liability for the payment of the impact fees; and iv. Requires the seller or seller's agent of property subject to the covenant and lien to provide written disclosure of the covenant and lien to a purchaser or prospective purchaser. Disclosure of the covenant must include the amount of impact fees payable and that the fees are to be paid to the City no later than the closing date; and v. Makes the applicant legally liable for payment of the impact fees if the fees are not paid by the earlier of the time of closing of the first sale or eighteen (18) months after the building permit has been issued; and vi. Is signed by all owners of the property as listed on a current title report, with all signatures acknowledged as required for a deed; and 8 ORDINANCE NO. 5957 vii. Is junior and subordinate to one mortgage for the purpose of construction upon the same real property granted by the person who applied for the deferral of impact fees. 910. Payment Methods: Payment of impact fees deferred under this subsection shall be made by cash, escrow company check, cashier's check or certified check. 4011. Lien Release: Upon receipt of payment of impact fees deferred under this subsection,the City shall execute a lien release for each single detached dwelling unit, condominium unit, or multi-family residential building for which the impact fees have been received. The property owner at the time of the release shall be responsible for recording the lien release. 1412. Foreclosure by City: If impact fees are not paid, in accordance with the provisions of this subsection,the City may institute foreclosure proceedings in accordance with chapter 61.12 RCW. 1413. Foreclosure by a School District: If the City does not institute foreclosure proceedings for unpaid school impact fees within forty five (45) days after receiving notice from a school district requesting that it do so, the district may institute foreclosure proceedings with respect to unpaid impact fees. 13.14. Required Prior to Building Permit Issuance: The Department shall not issue the required building permit or the permit for the change of use until the impact fees have been paid or the signed and notarized deferred impact fee 9 ORDINANCE NO. 5957 application and acknowledgement form and deferral fee have been received and accepted by the City. 4415. Number of Deferrals Limited: Each applicant for a single family building permit, in accordance with his or her contractor registration number or other unique identification number, is entitled to annually receive deferrals under this subsection for the first twenty(20) single family building permits issued by the City to that applicant. SECTION III. If any section, subsection, sentence, clause, phrase or work of this ordinance should be held to be invalid or unconstitutional by a court or competent jurisdiction, such invalidity or unconstitutionality thereof shall not affect the constitutionality of any other section, subsection, sentence, clause, phrase or word of this ordinance. SECTION IV. This ordinance shall be in full force and effect five (5) days after publication of a summary of this ordinance in the City's official newspaper. The summary shall consist of this ordinance's title. PASSED BY THE CITY COUNCIL this 9th day of December, 2019. Jason A. eth, C Clerk APPROVED BY THE MAYOR this 9th day of December, 2019. Denis Law, Mayor 10 ORDINANCE NO. 5957 Approved as to form: Shane Moloney, City Attorney c C.i ,s I%44 Date of Publication: 12/13/2019 (Summary) = �` E SEAL _ '� % Z %s car ? o ORD:2097:11/15/19 %,c°'PA'",II�II,�����"ss 6:��� ,'/,,, °RATED1SEQ;••\'iiiiiiiiim 11