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Street Impact Fees Impact Fee Advisory Committee: 1-28-2020 Austin Transportation Department Overview • Discussion and possible action on Final Draft Report • Rate Considerations • Ordinance Elements • Schedule & Next Steps 2 Final Draft Report • Foreword • Final Maximum Fees • Credit Description 3 Impact Fee Results • Study Determines Maximum Fee • Council Determines Effective Rate • End result looks like a table as follows: Service Area G I Final Draft Max Impact Fee ($/vehicle-mile) Study Determines Effective Rate Impact Fee ($/vehicle-mile) Council Determines $3,071 $1,712 $X,XXX $Y,YYY 4 Service Area G is outside the loop. Service Area I is inside the loop. Impact Fee Results Service Area Post-Finance/Credit Max $ / vehicle-mile Final Draft Service Area G is outside the loop. Service Area I is inside the loop. Service Area Post-Finance/Credit Max $ / vehicle-mile Final Draft A B C D E F G H $1,472 $4,479 $3,642 $2,218 $2,043 $1,604 $3,071 $1,543 5 I J K L M N O P DT $1,712 $3,724 $5,752 $2,520 $2,415 $1,507 $3,921 $3,011 $1,361 Calculate Max Fee Determine the maximum assessable fee per land use for Service Area G and I: 𝐍𝐮𝐦𝐛𝐞𝐫 𝐨𝐟 𝐔𝐧𝐢𝐭𝐬 ∗ 𝐈𝐦𝐩𝐚𝐜𝐭 𝐅𝐞𝐞 𝐏𝐞𝐫 𝐒𝐞𝐫𝐯𝐢𝐜𝐞 𝐔𝐧𝐢𝐭 ∗ 𝐓𝐫𝐚𝐧𝐬𝐩𝐨𝐫𝐭𝐚𝐭𝐢𝐨𝐧 𝐃𝐞𝐦𝐚𝐧𝐝 𝐅𝐚𝐜𝐭𝐨𝐫 (𝐓𝐃𝐅) = 𝐌𝐚𝐱 𝐈mpact Fee Per Land Use LAND USE DEVELOPMENT UNITS NUMBER OF UNITS FEE PER FEE PER SERVICE UNIT SERVICE UNIT MAX IMPACT MAX IMPACT G $3,071 $3,071 $3,071 $3,071 $3,071 I $1,712 $1,712 $1,712 $1,712 $1,712 TDF G 4.26 2.41 3.89 7.98 TDF I 2.87 1.62 4.27 7.30 MAX FEE PER LAND MAX FEE PER LAND USE G USE I $13,082 $4,913 $7,401 $2,773 $119,462 $73,102 $1,225,329 $624,880 15.09 15.04 $139,024 $77,245 Single-Family Detached Housing Multi-Family (Mid-Rise) Housing (ITE #210) (ITE #221) Dwelling Units Dwelling Units High-Turnover (Sit-Down) Restaurant (ITE #932) 1,000 Square Feet General Office Building (ITE #710) 1,000 Square Feet Shopping Center (ITE #820) 1,000 Square Feet 1 1 3 10 50 6 Service Area G is outside the loop. Service Area I is inside the loop. Collected Fee Options Collection Option Maximum Current Rough Proportionality Description Estimated maximum fee per service area for each land use Mirror Rough Proportionality Worksheet (Option 1) Smoothing Option Adopt a Citywide Average Rate ($1,035 per vehicle-mile) (Option 2) Percent Option Adopt a Percentage Across the City (e.g use 50% across the City) (Option 3) 7 Service Area G is outside the loop. Service Area I is inside the loop. Collected Fees by Land Use Collection Option G I SF Home SF Home 10K SQ Ft 10K SQ Ft MF Dwelling MF Dwelling G I Office Office G Unit I Unit G I High-Turnover High-Turnover Restaurant Restaurant 3K SQ Ft 3K SQ Ft G Shopping Center 50K SQ Ft I Shopping Center 50K SQ Ft Maximum $13,082 $4,913 $119,462 $73,102 $7,401 $2,773 $139,024 $77,245 $1,225,329 $624,880 Current Rough Proportionality Smoothing Option ($1,035 / vehicle mile) Percent Option (50%) $3,413 $3,413 $50,859 $50,859 $2,116 $2,116 $57,458 $57,458 $418,136 $418,136 $4,409 $2,970 $40,260 $44,190 2,494 $1,670 $46,854 $46,698 $412,950 $377,080 $6,541 $2,456 $59,731 $36,511 $3,700 $1,386 $69,512 $38,622 $612,664 $312,440 8 Service Area G is outside the loop. Service Area I is inside the loop. Collected Fees – Single Family Land Use G I Maximum $13,082 $4,913 Current Rough Proportionality $3,413 $3,413 Single Family (Dwelling Unit) Smoothing Option ($1,035 / vehicle mile) $4,409 $2,970 Percent Option (50%) $6,541 $2,456 9 Service Area G is outside the loop. Service Area I is inside the loop. Collected Fees – 10,000 sq. ft. Office Land Use G I Maximum $119,462 $73,102 Current Rough Proportionality $50,859 $50,859 Office (10,000 SF) Smoothing Option ($1,035 / vehicle mile) $40,260 $44,190 Percent Option (50%) $59,731 $36,511 10 Service Area G is outside the loop. Service Area I is inside the loop. Collected Fees – Multi Family Land Use G I Maximum $7,401 $2,773 Current Rough Proportionality $2,116 $2,116 Multi Family (Dwelling Unit) Smoothing Option ($1,035 / vehicle mile) 2,494 $1,670 Percent Option (50%) $3,700 $1,386 11 Service Area G is outside the loop. Service Area I is inside the loop. Collected Fees – 3,000 sq. ft. Restaurant Land Use G I Maximum $139,024 $77,245 Current Rough Proportionality $57,458 $57,458 High-Turnover Restaurant (3,000 SF) Smoothing Option ($1,035 / vehicle mile) $46,854 $46,698 Percent Option (50%) $69,512 $38,622 12 Service Area G is outside the loop. Service Area I is inside the loop. Collected Fees – 50,000 sq. ft. Shopping Center Land Use G I Maximum $1,225,329 $624,880 Current Rough Proportionality $418,136 $418,136 Shopping Center (50,000 SF) Smoothing Option ($1,035 / vehicle mile) $412,950 $377,080 Percent Option (50%) $612,664 $312,440 13 Service Area G is outside the loop. Service Area I is inside the loop. Sample Developments: Collection Rate Options DEVELOPMENT UNITS Multi-Family Office Mixed Use Single Family 14 Residential: 298 Apartments Office: 55,000 ft2 Office Office: 397,000 ft2 Restaurant: 46,700 ft2 Residential: 250 Apartments Hotel: 100 Rooms Single Family: 153 dwelling units Office: 7,700 ft2 Retail: 7,700 ft2 Collection Rate Comparison to Maximum Assessable Fee Austin Development 298 Apartments* 55,000 ft2 Office 397,000 ft2 Office 46,700 ft2 Restaurant 250 Apartments 100 Room Hotel Single Family: 153 dwelling units Office: 7,700 ft2 Retail: 7,700 ft2 Austin Mitigation/TIA Contribution $86,288 $317,388 $561,325 Service Area G Draft (Outside Loop) Service Area I Draft (Inside Loop) $2,205,531 $657,040 $8,791,530 ($8,351,953) $826,485 $402,063 $4,816,284 ($4,575,470) $260,000 $2,282,234 $904,210 * Assumes ITE Code 220 for Apartments (Highest Trip Gen) () 5% Internal Capture Reduction 15 Collection Rate Comparisons Austin Service Area Austin Mitigation/ Development TIA Contribution G Draft (Outside Loop) Service Area I Draft (Inside Round Rock (Not Effective Loop) yet)+ Frisco+ (Lowest SA) Fort Worth+ (Flat Rate all SA’s) Prosper+ (Lower SA) Frisco+ (Highest SA) Prosper+ (Higher SA) 298 Apartments* $86,288 $2,205,531 $826,485 $424,104 $365,3488 $631,164 $1,059,688 $803,408 $1,397,620 55,000 ft2 Office $317,388 $657,040 $402,063 $107,402 $216,315 $177,870 $214,005 $475,915 $282,260 $561,325 $8,791,530 ($8,351,953) $3,068,225 ($2,914,814) $1,566,632 $2,395,819 $2,274,362 $2,785,632 $5,270,671 $3,674,050 $260,000 $2,282,234 $904,210 $1,051,057 $375,130 $624,023 $761,045 $785,925 $1,003,832 + Note: Comparison cities are collection rate, whereas Service Area Drafts are maximum fee allowable from final draft report. * Assumes ITE Code 220 (Most Intense Trip Generation) for Apartments () 5% Internal Capture Reduction 16 397,000 ft2 Office 46,700 ft2 Restaurant 250 Apartment 100 Room Hotel Single Family: 153 D.U. Office: 7,700 ft2 Retail: 7,700 ft2 Collection Rate Comparisons – SA G Mitigation/ Maximum 50% Option Frisco+ Prosper+ Current Smoothing RP Option Round Rock+ Fort Worth+ Austin TIA $86,288 $2,205,531 $630,652 $743,212 $1,102,765 $424,104 55,000 ft2 Office $317,388 $657,040 $279,736 $221,430 $328,520 $107,402 $365,3488 - $803,408 $216,315 - $475,915 $631,164 $177,870 $1,059,688 - $1,397,620 $214,005 - $282,260 $561,325 $8,791,530 ($8,351,953) $3,674,240 ($3,490,528) $3,119,882 ($2,963,888) $4,395,765 ($4,176,926) $1,566,632 $2,395,819 - $5,270,671 $2,274,362 $2,785,632 - $3,674,050 Austin Development 298 Apartments* 397,000 ft2 Office 46,700 ft2 Restaurant 250 Apartment 100 Room Hotel Single Family: 153 D.U. Office: 7,700 ft2 Retail: 7,700 ft2 $260,000 $2,282,234 $625,806 $769,171 $1,141,113 $1,051,057 $624,023 $375,130 - $785,925 $761,045- $1,003,832 + Note: Comparison cities are collection rate, whereas Service Area Drafts are maximum fee allowable from final draft report. * Assumes ITE Code 220 (Most Intense Trip Generation) for Apartments () 5% Internal Capture Reduction 17 Service Area G is outside the loop. Collection Rate Comparisons – SA I Mitigation Maximum 50% Option Frisco+ Prosper+ Current Smoothing RP Option Round Rock+ Fort Worth+ Austin / TIA $86,288 $826,485 $630,652 $497,660 $413,242 $424,104 55,000 ft2 Office $317,388 $402,063 $279,736 $243,045 $201,031 $107,402 $365,3488 - $803,408 $216,315 - $475,915 $631,164 $177,870 $1,059,688 - $1,397,620 $214,005 - $282,260 $561,325 $4,816,284 ($4,575,470 $3,674,240 ($3,490,528) $3,068,225 (2,914,813) $2,197,882 ($2,087,988) $1,566,632 $2,395,819 - $5,270,671 $2,274,362 $2,785,632 - $3,674,050 Austin Development 298 Apartments* 397,000 ft2 Office 46,700 ft2 Restaurant 250 Apartment 100 Room Hotel Single Family: 153 D.U Office: 7,700 ft2 Retail: 7,700 ft2 $260,000 $904,210 $625,806 $769,171 $452,182 $1,051,057 $375,130 - $785,925 $624,023 $761,045- $1,003,832 + Note: Comparison cities are collection rate, whereas Service Area Drafts are maximum fee allowable from final draft report. * Assumes ITE Code 220 (Most Intense Trip Generation) for Apartments () 5% Internal Capture Reduction 18 Service Area I is inside the loop. Collected Fees – Other Considerations Council can consider the following additional factors: • Vary by Service Area: Use a different collection option by Service Area • Vary by Land Use: Use a different rate or percentage for residential and non- residential • Phased-In Approach: Start with one option in year 1 and transition to another option in the future (e.g. Round Rock) • Offsets: In all options, fees would be offset by system improvements that are built by development • Discounts: Additional discounts for different development types that further other City objectives, such as affordable housing and transit-oriented development 19 Ordinance Elements • Internal Capture / Mixed Use Discount. The amount of street impacts fees shall be reduced under Schedule 25-6-664 (a) up to 25% for any new development where an accepted transportation impact analysis demonstrates that the internal capture of a development will reduce vehicle trips from those contained in the adopted land use equivalency table (LUVMET). • Transportation Demand Management Discount. The amount of street impacts fees shall be reduced under Schedule 25-6-664 (a) up to 15% for any new development where an accepted traffic impact analysis utilizes approved transportation demand management techniques. The percent reduction for the transportation demand management techniques are include in the City’s Transportation Criteria Manual. 20 References to code sections and percentages are draft and are subject to change. Ordinance Elements • Affordable Housing. An applicant who sets aside 10% of the total units in a development as income-restricted affordable units, as verified by the Housing Director, may request an impact fee discount: (a) If at least 10 percent, but less than 20 percent, of the dwelling units are affordable, the impact fee collected rate is reduced by the percentage of affordable units; (b) If at least 20 percent, but less than 50 percent, of the dwelling units are affordable, the impact fee collected rate is reduced by 50 percent; and (c) If at least 50 percent of the dwelling units are affordable, the impact fee collected rate is reduced by 100 percent. Above reductions are based on latest Draft LDC 21 Schedule 22 Prior Meetings & Actions Council Actions: • June 9, 2016: ATD authorized to procure consultant to develop Street Impact Fees (SIF) • October 19, 2017: City Council Public Hearing on Land Use Assumptions • April 11, 2019: Austin Strategic Mobility Plan adopted, calling for implementation of SIF policy and program to fund roadway capacity improvements necessitated by growth • August 8, 2019: City Council Public Hearing on SIF study assumptions • August 22, 2019: City Council approval of SIF study assumptions (Land Use Assumptions & Roadway Capacity Plan) Council Committee, Boards & Commissions: • June 21, 2017: Council Mobility Committee • July 25, 2017: Impact Fee Advisory Committee • Recommended approval of Land Use Assumptions for 10-year growth & Service Areas • October 10, 2017: Urban Transportation Commission • August 16, 2018: Council Mobility Committee • June 13, 2019: Council Mobility Committee • June 13, 2019: Impact Fee Advisory Committee • Recommended approval of Roadway Capacity Plan • August 21, 2019: Council Mobility Committee • September 23, 2019: Design Commission 23 Next Steps • Next IFAC Meetings • February • Draft Ordinance Review • Approve Report (if not in January) • March • April • Final Review of Ordinance • Approval of Policy Recommendations • Next Steps for Public Engagement & Approval • Develop public engagement materials, publish final report • Public meetings and information on draft ordinance and policy considerations • Council briefings • Public hearing • Ordinance approval 24 Questions 25