HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 03/16/2010 - FIRST READING OF ORDINANCE NO. 029, 2010, AMENDING DATE: March 16, 2010 AGENDA ITEM SUMMAR
STAFF: Steve Dush, Mike Gebo • • •
SUBJECT
First Reading of Ordinance No. 029, 2010, Amending Sections 7.5-24 and 7.5-25 of the City Code Regarding the
Refunding of Capital Improvement Expansion Fees for Abandoned Development Projects.
EXECUTIVE SUMMARY
Municipal Code Section 7.5 Article II imposes certain fees,titled Capital Improvement Expansion Fees(CIEF)for the
purpose of funding the provisions of additional capital improvements as the City's population increases. The imposition
of CIEFs ensures that new growth and development in the City bear a proportionate share of the costs of capital
expenditures necessary to provide community park, library, police, fire and general government and transportation
capital improvements. There is no Code section that speaks to the refunding of collected CIEFs to an owner/developer
who has requested a refund due to the abandonment of the project and permit. The Code only provides that CIEFs
may be refunded if they are not appropriated within seven years or expended within ten years from the date collected.
This Ordinance establishes that CIEFs can be refunded to the owner of the property for which the fees were paid, in
the event of project and permit abandonment.
BACKGROUND / DISCUSSION
CIEFs are based on the:
• City's Capital Improvement Expansion Cost Study, dated May 21, 1996
• City's Street Oversizing Impact Fee Study, dated July 15, 1997
• Street Oversizing Impact Fee Study Update, dated November 28, 2000
• The ITE Trip Generation Manual, 6th Edition, 1997, published by the Institute of Traffic Engineers.
In general the Code establishes that:
1. Funds collected from said fees shall not exceed the cost of providing the capital improvements for which
they are imposed, and the fees shall be expended solely to provide the specified capital improvements.
2. Any fees not so appropriated within seven years or expended by the City for purposes approved within ten
years of the date of payment, shall be refunded.
Problem Statement
There is no Code section that speaks to the refunding of collected CIEFs to an owner/developer who has requested
a refund due to the abandonment of the project. The Code only provides that CIEFs may be refunded if they are not
appropriated within seven years or expended within ten years from the date collected.
Proposed Code Change
This proposed Code change establishes that CIEFs can be refunded to the owner of the property for which the fees
were paid, in the event of project and permit abandonment.
Priorto refunding of CIEFs for a project abandonment,the proposed code changes would specify thatthe construction
site shall meet certain standards such as:
• Construction hazards removed
• Foundation is capped and secured
• Partial structures are boarded and secured
• Dirt stockpiles have been removed and the site re-leveled
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• All exposed soils are to be re-seeded to,prevent wind erosion
• The property is adequately fenced meeting the standards contained in Division 3.8 of the Land Use Code
to provide for public safety and site security
• All public infrastructures which have been damaged by reason of the site development activities are to be
fully repaired, inspected and accepted by the City.
Staff has identified that City Code Sections 7.5-24 and 7.5-25 provide a narrow interpretation as to when refunds can
be granted.
This proposed Code change establishes that an owner/developer can request a refund of CIEFs in the event that their
permitted project has expired and is abandoned.
Prior to refunding of the CIEFs the construction site shall meet certain conditions designed to assure the health and
safety of the public while limiting on-going or unintended cost to the City.
FINANCIAL IMPACT
Currently, the financial impacts to the City related to any stalled construction project include on-going staff review of
the site, sending notices and follow-up with the owners as conditions that need correcting arise. Conditions that
typically require the owner's attention are security of the building by boarding up or replacing damaged windows and
doors, site clean-up of leftover construction debris and weed control efforts. These costs are minimal and can be
absorbed into the current Community Development and Neighborhood Services budget.
The proposed Code change establishes that,priorto receiving a CIEF refund,the owner/developer would have certain
financial obligations to assure that the construction site is left in a condition which provides for the safety of the public.
Additionally, the site condition requirements are intended to limit the City's cost of repairs and monitoring measures.
Essentially, the site is placed in a "mothballed" condition which could exist for an extended period of time.
SUSTAINABILITY: ECONOMIC, ENVIRONMENTAL AND SOCIAL IMPACTS
Economic Impacts
The proposed Code change requires owners of stalled construction projects, who have requested CIEF refunds, to
provide basic site improvement such as seeding disturbed soils and installing security fencing. Additionally, any City
infrastructure which was damaged due to the construction performed thus far would be required to be repaired,
inspected and approved by the City engineer. The cost to provide site security and soil seeding as well as
infrastructure repairs would be borne by the project owner and be in place prior to the City refunding of any CIEFs.
Environmental Impacts
An early step in any construction project involves earth works, the removing of top vegetation and stock piling of soils
for future use. During active construction the soil erosion can be limited by dampening and vehicle traffic. Stock piles
and exposed soils at abandoned construction sites tend to dry out excessively, giving rise to wind-borne erosion with
dust blowing off-site. Depending on the wind event, the dust levels can be significant and wide spread throughout the
surrounding area.
The proposed changes would require that the owner level the site, removing all stock piles of soil and properly seed
all exposed soils prior to receiving refunds of CIEFs.
Social Impacts
The economy in general and the management of a construction project will determine successor failure of the project.
Failed and abandoned construction projects are a reality and often times are left in a state of disrepair which can
become an eyesore to the neighbors and blight to the surrounding neighborhoods.
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Abandoned buildings and structures half completed without security measures installed can become an attractive
nuisance to children. Buildings left unattended can deteriorate and become"dangerous"if the structure degrades due
to uninstalled exterior surfaces and weather protective coatings.
The proposed changes require that the owner install a substantial security fence around the site to prevent unlawful
entry by children or others. Although this change does not address exterior surfaces of partially completed buildings,
should the structure degrade to a point that it becomes"dangerous",these issues can be addressed through the 2006
International Property Maintenance Code.
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinance on First Reading.
ORDINANCE NO. 029, 2010
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AMENDING SECTIONS 7 . 5 -24 AND 7 . 5 -25 OF THE CODE OF THE CITY
OF FORT COLLINS REGARDING THE REFUNDING OF CAPITAL IMPROVEMENT
EXPANSION FEES FOR ABANDONED DEVELOPMENT PROJECTS
WHEREAS , Section 7 . 5 -24 of the City Code contains certain provisions entitling persons
to refunds of capital improvement expansion fees if the funds collected pursuant to the fees have not
been appropriated for expenditure within seven years of the date of payment of such fees and
expended within ten years of the date of such payment; and
WHEREAS , Chapter 7 . 5 contains no provision for the refunding of capital improvement
expansion fees for abandoned development projects; and
WHEREAS , Section 2 .2 . 10(B) of the Land Use Code contains provisions allowing for the
abandonment of development projects but does not contain any provision for the refunding of capital
improvement expansion fees upon abandonment; and
WHEREAS , the City Council has determined that it is in the best interests of the City that
a procedure be established whereby capital improvement expansion fees can be refunded for
abandoned development projects as long any such refunds are conditioned upon the applicant having
first ensured that the physical condition of the development site does not endanger the public health,
safety and welfare of the public .
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT
COLLINS as follows :
Section 1 . That Section 7 . 5 -24 of the Code of the City of Fort Collins is hereby amended
to read as follows :
Sec. 7. 5-24 . Entitlement to refunds for nonappropriation/nonexpenditure.
(a) All fees collected pursuant to this Article shall be appropriated by the City
Council for expenditure within seven (7) years from the date of payment of such fees
and shall be expended by the City for purposes approved herein within ten ( 10) years
of the date of payment. Any fees not so appropriated or expended shall be refunded,
upon application, to the record owner of the property for which the impact fee was
paid or, if the impact fee was paid by another governmental entity, to such
governmental entity, together with interest calculated from the date of collection to
the date of refund; provided, however, that the City shall retain an additional two (2)
percent of the fee to offset the cost of refund.
(b) In determining whether fee revenues have been appropriated or expended
within the requisite periods of time specified in subparagraph (a), monies in the
applicable capital improvement expansion fee accounts shall be considered to be
appropriated and expended on a first in, first out basis ; that is, the first fees paid shall
be considered the first fees appropriated and expended.
(c) Any application for a refund under the provisions of this Section shall be
made within one hundred eighty ( 180) days of the expiration of the ten-year period
following the date of payment of such fee, according to the procedures described in
§ § 7 . 5 -23 and 7 . 5 -25 . If a refund is due hereunder, the amount of such refund shall
be divided proportionately among all applicants for refunds who have filed
applications during said one-hundred-eighty-day period; provided, however, that in
no event shall the amount of any refund exceed the amount of the fee paid on behalf
of the property for which the refund is sought, plus interest at the rate of five (5 )
percent per annum.
Section 2 . That Article II, Division 1 of the Section 7 . 5 of the Code of the City of Fort
Collins is hereby amended by the addition of a new Section 7 . 5 -24 . 1 which reads in its entirety as
follows :
Sec. 7. 5-24. 1 Entitlement to refund upon abandonment.
Fees collected pursuant to this Article may be refunded to the current owner of
the real property for which the fee was paid in the event that the right to develop the
property in accordance with the approved plan has been abandoned as provided in
Section 2 .2 . 10(B) of the Land Use Code . Any such refund shall be processed in
accordance with the procedures described in § 7 . 5 -25 . No such refund based upon
abandonment shall be made until the following conditions have been met:
( 1 ) the property which is the subject of the refund has been restored in such
manner that all stockpiles of fill material have been leveled, all exposed
soil is seeded with grass or other ground cover, which cover has been
adequately established to prevent wind and soil erosion;
(2) the property is adequately fenced in accordance with the standards
contained in Division 3 . 8 of the Land Use Code in such manner as to
adequately protect, in the judgment of the City Manager, public safety;
(3 ) all equipment and other construction hazards have been removed;
(4) any open foundations have been capped and open structures have been
boarded and secured;
(5 ) any damage that has been caused to public infrastructure by reason of the
development activities upon the property have been fully repaired; and
(6) such restoration measures have been inspected and approved by the City.
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Section 3 . That Section 7 . 5 -25 of the Code of the City of Fort Collins is hereby amended
to read as follows :
Sec. 7.5-25. Procedure to obtain refund.
(a) All applications for refund under this Article shall be submitted to the
Financial Officer. Each application shall be in a form established by the Financial
Officer, and shall contain the following :
( 1 ) A copy of the dated receipt issued for payment of the fee ;
(2) A notarized, sworn statement that the applicant is the current owner of the
real property for which the fee was paid and a certified copy of the current
deed to such property.
(3 ) For refunds based upon abandonment, a copy of the approval of
abandonment in accordance with Section 2 .2 . 10(B) of the Land Use Code.
(b) The Financial Officer shall determine if the application for a refund is
sufficient on its face within five (5) working days . If the Financial Officer determines
that the application is not sufficient, a written notice shall be mailed to the applicant
within said period of time specifying the deficiencies . No further action shall be
taken on the application until the deficiencies are remedied. Any such deficiencies
must be remedied within twenty (20) days of the date of mailing of the notice from
the Financial Officer, or prior to the expiration of the period of time for filing an
application for a refund under Subsection 7 . 5 -24(c) , whichever is later. If the
application is determined sufficient, the Financial Officer shall notify the applicant,
in writing, of the application's sufficiency and that the application is ready for review
pursuant to the procedures and standards of this Section.
(c) With respect to refunds based upon nonappropriation/expenditure, Wwithin
ten ( 10) working days after the application is determined sufficient, the Financial
Officer shall determine whether the City has appropriated and expended the fee(s)
paid by the feepayer within the periods of time required under Subsection 7 . 5 -24(a) .
If so, the application for refund shall be denied. If not, the applicant shall be entitled
to a refund, except that the City shall retain an additional two (2) percent of the
impact fee to offset the costs of administering the refund.
(d) With respect to refunds based upon abandonment, within ten ( 10) working
days after the application is determined sufficient and site restoration has been
completed as required pursuant to § 7 . 5 -24 . 1 , the applicant shall be entitled to a
refund, except that the City shall retain an additional two (2) percent of the impact
fee to offset the costs of administering the refund.
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(d) The decision of the Financial Officer with regard to any refund may be
appealed to the City Manager under the provisions of Subsection 7 . 5 -23 (b) and
Article VI of Chapter 2 of this Code.
Introduced, considered favorably on first reading, and ordered published this 16th day of
March, A.D . 2010, and to be presented for final passage on the 6th day of April, A.D . 2010 .
Mayor
ATTEST :
City Clerk
Passed and adopted on final reading on the 6th day of April, A.D . 2010 .
Mayor
ATTEST :
City Clerk
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