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Home My WebLink AboutOrdinance 5523 ORDINANCE NO. 5523 AN ORDINANCE AMENDING SUBSECTION 166.04(1)(ii)(g) OF CHAPTER 166 DEVELOPMENT OF THE UNIFIED DEVELOPMENT CODE TO CHANGE THE FEE-IN-LIEU FORMULAS RELATED TO PARKLAND DEDICATIONS BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE,ARKANSAS: Section 1. That the City Council of the City of Fayetteville, Arkansas hereby amends Subsection 166.04(1)(ii)(g) of Chapter 166 Development of the Unified Development Code so that, after amendment,the subsection shall read as follows: "g. Fee-in-lieu formulas. A contribution in lieu of land dedication shall be made according to the following formula: $920.00 for each single-family unit $560.00 for each multi-family unit based upon actual density. The Parks Department shall review the contribution formula every two (2) years and make recommendations to the City Council following such review." PASSED and APPROVED this 4t' day of September, 2012. APPROVED: ATTEST: By: By: :��Q& 014ELD J N, Mayor SONDRA E. SMITH, City Clerk/, �aearm�tr,,�� TRE ^O;FAYETTEVILLE; ,4 y C-, , �'�9••.'QkANSP•Jam.`' w� City of Fayetteville Staff Review Form City Council Agenda Items and Contracts, Leases or Agreements 9/4/2012 City Council Meeting Date Agenda Items Only Alison Jumper. A Park Planning Parks and Recreation Submitted By Division Department Action Required: Approval of an ordinance amending Chapter 166.04(1)(ii)(g) Fee-in-lieu formulas. Cost of this request Category/Project Budget Program Category/Project Name Account Number Funds Used to Date Program/Project Category Name Project Number Remaining Balance Fund Name Budgeted Item Budget Adjustment Attached Previous Ordinance or Resolution# epartmen-01rectTr bate Original Contract Date: f-1 �^-/Z-- Original Contract Number: ity Attorney Date - tZ 03— 14- i'Ui ::+ RCVD Finance and Internal Services Director Date Received in City 10 qq �� Clerk's Office qr .1ofo—i, 1� Chief of St Date /14TEREEIN Received in �z Mayor's Office (((.-y._._ 8 .i J'* 102 or Date Comments: Revised January 15,2009 0 V THE CITY OF FAYETTEVILLE,ARKANSAS T DEPARTMENT CORRESPONDENCE ARKANSAS CITY COUNCIL AGENDA MEMO To: Mayor Lioneld Jordan, City Council Thru: Don Marr, Chief of Staff Connie Edmonston, Parks and Recreation Director . From: Alison Jumper, Park Planning Superintendent X) Date: August 13, 2012 Subject: Park Land Dedication Ordinance Update PROPOSAL: Chapter 166.04 (1)(ii)(g)of the Unified Development Code (UDC) requires the Parks Department to review the park land dedication contribution formula every two years and make recommendations to the City Council. The last major change to the formula occurred in 2006 when the cost per acre of land was increased from$23,125 to$40,000 per acre. Current Park Land Dedication Formula Updated 2006 Housing Type Persons/unit Acres/1,000 Pop. Acres/unit Cost/acre Fee in lieu/unit Single Family 2.39 10 .024 $40,000. $960 Multi-Family 1.7 10 .017 $40,000 $680 In February, Park Staff analyzed data received from the Washington County Assessor's office and Northwest Arkansas Regional Planning Commission and recommended the following updates to Parks and Recreation Advisory Board(PRAB), 1) Update the cost per acre of land from$40,000 to$42,800. 2) Update the persons per unit to 2.3 for single family units and 1.4 for multi-family units. PRAB forwarded their recommendation of approval of the above changes to the Planning Commission. Planning Commission also recommended approving the changes to the City Council (7-1-0). However, questions were raised at the Planning Commission meeting that warranted further research. Chief of Staff and Park Staff met with the County Assessor, discussed options for determining the most accurate cost of land per acre and ultimately decided for the Assessor to directly submit his calculation since he is more familiar with determining land values than Park Staff.The Assessor's official value was$37,481/acre of non-subdivided land. Since the cost was so close to the current fee of$40,000/acre, staff reconsidered updating the formula at this point and reviewed the findings with PRAB again in June. Additionally, Kit Williams recommended in his memo dated July 31 (see attached)for the persons per unit to be updated to accurately affect the current population distribution between single and multi-family housing units. THE CITY OF FAYETTEVILLE,ARKANSAS RECOMMENDATION: Staff recommends keeping the cost per acre at$40,000 and updating the persons per unit figure as provided by Northwest Arkansas Planning Commission from 2.39 for Single Family and 1.7 for Multi-family to 2.32 for Single Family and 1.39 for Multi-family. See current and proposed charts below. Proposed Park Land Dedication Formula Housing Type Persons/unit Acres/1,000 Pop. Acres/unit Cost/acre Fee in lieu/unit Single Family 2.32 10 .023 $40,000 $920 Multi-Family 1.39 10 .014 $40,000 $560 This would decrease the single family cost by$40 per unit and the multi-family cost by$120. Park Staff will review the cost of land again next year as the Parks and Recreation Advisory Board recommended. BUDGETIMPACT: This will decrease the per unit requirements of the Park Land Dedication Fund for both the fee-in-lieu and the acres of land. The exact impact can not be determined since it is unknown when the developments are coming into the system. Attachments: Staff Review Form Memo from Kit Williams 7-31-12 2 ORDINANCE NO. AN ORDINANCE AMENDING SUBSECTION 166.04(1)(ii)(g) OF CHAPTER 166 DEVELOPMENT OF THE UNIFIED DEVELOPMENT CODE TO CHANGE THE FEE-IN-LIEU FORMULAS RELATED TO PARKLAND DEDICATIONS BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE,ARKANSAS: Section 1 That the City Council of the City of Fayetteville, Arkansas hereby amends Subsection 166.04(1)(ii)(g) of Chapter 166 Development of the Unified Development Code so that, after amendment, the subsection shall read as follows: "g. Fee-in-lieu formulas. A contribution in lieu of land dedication shall be made according to the following formula: $920.00 for each single-family unit $560.00 for each multi-family unit based upon actual density. The Parks Department shall review the contribution formula every two (2) years and make recommendations to the City Council following such review." PASSED and APPROVED this 4th day of September, 2012. APPROVED: ATTEST: By: By: LIONELD JORDAN, Mayor SONDRA E. SMITH, City Clerk/Treasurer 111Cev- Departmental Correspondence ARKANSASLEGAL • • DEPARTMENT Kit Williams City Attorney TO: Mayor Jordan Jason B.Kelley City Council Assistant City Attorney Don Marr, Chief of Staff Connie Edmonston, Parks & Recreation Director Alison Jumper, Park Planning Superintendent FROM: Kit Williams, City Attorney DATE: July 31, 2012 RE: Parkland Dedication Ordinance Our Parkland Dedication Ordinance is an impact fee ordinance that was specifically grandfathered in the Impact Fee Statute. We need to ensure it remains consistent with the statutory and constitutional requirements for such impact fees. The most important of these factors is that it does not charge more than what the City Council long ago decided was a fair and reasonable amount needed to offset new residential demands for parkland. The City can safely undercharge for the Parkland Dedication, but it cannot overcharge without risking the impact fee becoming a tax which cannot be imposed by the City Council, but must be approved by a public vote. Harris v. Little Rock, 344 Ark. 95, 40 S.W. 3d 214, 221 (2001). It is clear from Alison Jumper's excellent memo that all of our analysis shows that the multifamily rate is currently higher than it should be. Using the City's original analysis of raw land values, the apartment rate is $81 too high (12% too much). Using the County Assessor's analysis of land values of $37,481 per acre, the apartment rate would be $525. This is $155 per unit too high (23% too much). I do not believe this is legally acceptable. If the City is unsure whether to use its increased figure for land values ($42,800) or the County Assessor's valuation ($37,481), it is probably okay to keep the $40,000 land value figure (which basically splits the difference between these two figures) and review it next year as the Parks and Recreation Advisory Board recommended. However, unless we doubt the per person rate for single family homes and apartments supplied by the Northwest Arkansas Regional Planning Commission, these new persons per unit rates should be applied which will result in slightly smaller money in lieu of parkland dedication rates: $920 per unit for single family, housing and $560 per unit for multifamily housing. I recommend these figures be used to ensure the City of Fayetteville does not charge more than is fair, reasonable and legally supportable.in Court. 2 NORTHWEST ARKANSAS DEMOCRAT-GAZETTE NORTHWESTARKANSAS THE MORNING NEWS OF SPRINGDALE THE MORNING NEWS OF ROGERS NEWSPAPE16LLC NORTHWEST ARKANSAS TIMES BENTON COUNTY DAILY RECORD 212 NORTH EAST AVENUE,FAYETTEVILLE,ARKANSAS 72701 1 P.O.BOX 1607,72702 1 479-442.1700 1 WWWAWANEWS.COM AFFIDAVIT OF PUBLICATION I, Karen Caler, do solemnly swear that I am the Legal Clerk of the RECEIVED Northwest Arkansas Newspapers, LLC,printed and published in Washington and Benton County, Arkansas, bona fide circulation, OCT 0 3 2012 that from my own personal knowledge and reference to the files CITY OF FAYETTEVILLE of said publication, the advertisement of- CITY CLERKS OFFICE City of Fayetteville- Ordinance 5523 Was inserted in the Regular Editions on: September 20, 2012 DINAINCE,NO.552i,- AN ORDINANCE AMENDING SUBSECTION 166 04(1)(i)(9) OF CHAPTER` 168- DEVELOPMENT OF THE ,UNIFIED VVV AVpsANsns Publication Charges: 90.79 DEVL�NT CODE TO CHANSE THE g FEE 1N 11EFORMULAS RELATED CO PARKLANR DEDICATIONS Section 1 Tlfat the City Council of the City of Fayetteville Arkansas hereby amer)ds Subsection 166 04(I)(u)(g)of Chapter 166 Development of the Unified�euelopment , Codesohat after amendment;the`"subsection shall read`as follows i, "g -Fee-in lieu formulas A contribution m heu of lantl tletlict�on shall.b1. e according to,I ie following formula: Karen Caler '$920:00 for each dingle family unit r< i $66b00 for each multi famtly unit basedupon actual density x�� x , The Parks Department shall review the contribution formula every,two Subscribed and sworn to before me s(2>yeaand make'recoMrrienaatioris to the cityCounoil following such This , day of 2012. review's �PftSSED and PROVED this 4th day of September,2012. APPROVED ATTEST., By �By. LIONELD JORDAN,Mayor,,: SONDRA E SMITH City Clerk/Treasurer Notary Public My Commission Expires: J2_,,,(+ �,,\pW f", e,1aTW J.W4LES V�T� a6ntan CaunMy + vuxuc my C®n1missIon EXpplres mm�iM February 20,2[(4) 4 **NOTE* Please do not pay from Affidavit. Invoice will be sent.