Items 3a, 3b, 3c — original pdf

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Street Impact Fees Impact Fee Advisory Committee: 3-4-2020 Austin Transportation Department Overview • Item 3a – Action on Report • Item 3b – Discussion of Policy Options • Brief Recap of 1-28 Meeting • Draft Ordinance Updates • Activities • Effective Date • Effective Rate • Discounts • IFAC Recommended Policy (or policy options) • Item 3c – Schedule 2 Item 3a – Action on Report • Published February 26, 2020 • Updated Foreword • Updated LUVMET Table for Housing Types (Pages 116-119) • Different descriptions to reflect LDC, no changes to rates or ITE code 3 Item 3b – Discussion of Policy Options 1-28 IFAC Recap Draft Ordinance Updates Activities (Policy Options) IFAC Recommended Policy 4 1 – Inside “the Loop” – Residential Trip Length = 2.9 mi 2 – Outside “the Loop” – Residential Trip Length = 4.3 mi Impact Fee Results Service Area Post-Finance/Credit Max $ / vehicle-mile Final Draft Service Area Post-Finance/Credit Max $ / vehicle-mile Final Draft A2 B2 C2 D2 E2 F1 G2 H2 $1,472 $4,479 $3,642 $2,218 $2,043 $1,604 $3,071 $1,543 5 I1 J1 K2 L1 M2 N2 O2 P2 DT1 $1,712 $3,724 $5,752 $2,520 $2,415 $1,507 $3,921 $3,011 $1,361 Calculating the 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 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 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 6 Service Area G is outside the loop. Service Area I is inside the loop. + TDF = # of trips * trip length Collected Fee Options Options previously discussed Example Collection Options Description Maximum Estimated maximum fee per service area for each land use Current Process Mirror Rough Proportionality Calculation Smoothing Option Adopt 50% of the Citywide Average Rate ($1,035 per vehicle-mile) Percent Option Adopt a percentage across the City (50% of the maximum in each Service Area) 7 7 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 pre-credit report. * Assumes ITE Code 220 (Most Intense Trip Generation) for Apartments () 5% Internal Capture Reduction 8 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 pre-credit report. * Assumes ITE Code 220 (Most Intense Trip Generation) for Apartments () 5% Internal Capture Reduction 9 Service Area I is inside the loop. Draft Ordinance Elements - Discounts • Internal Capture / Mixed Use Discount. The amount of street impacts fees shall be reduced under Schedule 23-8H-2020(A) up to 20% 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 23-8H-2020(A) up to 40% 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. 10 Draft Ordinance Elements - Discounts • 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 (Division 23-4E-1040) 11 Draft Ordinance Elements - Discounts • Preservation Incentive. An applicant who qualifies for the preservation incentive as defined in the Land Development code may request an impact fee discount to reduce the impact fee collected rate for the additional units or square footage of non-residential space as allowed under this incentive by 50 percent. • Downtown Density Bonus Program. An applicant who qualifies for the downtown density bonus incentive as defined in the Land Development code may request an impact fee discount to reduce the impact fee collected rate for the additional units or square footage of non-residential space as allowed under this incentive by 50 percent. Above reductions are anticipated for additional units from incentive, not whole site 12 Draft Ordinance Elements - Discounts • Discounts cumulative. Discounts identified are cumulative so that a development that qualifies for the maximum discount under each provision may reduce impact fees otherwise due up to 60%, with the exception of developments where Sec. 23-8H-2030(B)(1)(c) applies, where the maximum discount may reduce impact fees otherwise due up to 100%. • Burden of proof. The applicant for a discount provided for in this Section has the burden of proof to show that the development qualifies for the discount. Sec 23-8H-2030(B)(1)(c) is when more than 50% affordable housing, matches LDC 13 Effective Date (Activity on Board) • 1-year grace period required by state law – from effective date • Set one rate • Phased-In approach 14 Effective Rate (Activity on Board) • Different rates inside and outside “the loop”? • Should there be a flat rate?* • Should there be a flat percentage? • If yes, should there be a cap on effective rate ($ amount)? • Different rates for residential and non-residential? • If yes, what how should they compare (as %)? • Residential Unit – Low and High Fee Amounts • Single Family • Multi-Family 15 *Limited by lowest maximum fee rate of other service areas Discounts (Activity on Board) • Technical discounts (applies to whole site) • Cap on internal capture (% of effective rate) • Cap on Transportation Demand Management (% of effective rate) • Policy discounts (applies to specific land uses / units) • Affordable housing (no activity, matching LDC) • Preservation Incentive cap (% of effective rate) • Downtown Density Bonus Incentive cap (% of effective rate) • Maximum discount (% of effective rate)* *Affordable housing with more than 50% affordable units gets 100% discount on effective rate 16 Collected Fees Options Collection Option Description Effective Date Notes: Discounts Notes: 17 Item 3c - Schedule 18 Schedule • Next IFAC Meeting(s) • April • May • Review of Draft Ordinance • Discuss results of policy recommendation(s) • Approval of policy recommendations • Next Steps for Public Engagement & Approval • Public meetings and information on draft ordinance and policy considerations • Council briefings • Public hearing • Ordinance approval 19 Questions 20