Items 2a, 2b, 2c — original pdf

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Street Impact Fees Impact Fee Advisory Committee: 4-14-2020 Austin Transportation Department Overview • Item 2a – Presentation of Policy Options • Recap of March 4, 2020 Meeting • Item 2b – IFAC discussion and approval of comments on recommended policy (or policy options) • Activities • Effective Date (revisit) • Effective Rate (finish) • Reductions • Approval of comments • Item 2c – Future meeting schedule 2 Item 2a – Presentation of Policy Options Recap March 4, 2020 IFAC Meeting 3 Effective Date • Effective Date should be date ordinance is adopted (unless staff or Council deems otherwise for administrative reasons) • Grace period should remain 1 year • *Clarification from 3/4/2020 meeting – grace period is only for properties platted prior to effective date of ordinance pulling building permit in grace period • Not in favor of phased-in approach 4 Note: All items above were unanimous among present members at 3/4/2020 IFAC meeting. Effective Rate – Options discussed at March 4 meeting • 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 %)? 5 *Limited by lowest maximum fee rate of other service areas Effective Rate (Results from 3/4/2020) 6 Collected Fees Options Option # Collection Option Description 1 2 Flat Percentage, with Cap on Rate, with Residential at lower % This option reflects a flat percentage (50% of maximum). Residential is decreased to be 30% lower than non- residential. Cap on rate per vehicle-mile is based on average residential $ per veh-mi inside the loop, including residential reduction ($947 per vehicle-mile). Flat $ per veh-mi (trip length varies inside / outside), no cap and Residential at lower % This option reflects a flat fee per vehicle-mile of $1,215 (50% of average $ per veh-mi citywide). Residential is decreased to be 30% lower than non-residential ($850.50 / veh-mi). Reductions Notes: • (Discuss Today) Effective Date Notes (3/4 IFAC): • Set effective date as ordinance adoption date • One rate – no phasing • No grace period extension for platted properties 7 Comparison of Options 8 9 10 Maximums 11 12 13 14 15 Option 1 50% of Maximum 30% Residential Reduction Capped at $947 / veh-mi (city average residential $/veh-mi) 16 17 ITE 220 “Cap” Outside Loop 18 19 20 21 Option 2 Fixed $1,215 per veh-mi 30% Residential Reduction Collection rate varies because of trip lengths inside and outside the loop 22 23 24 25 26 27 Item 2b – IFAC discussion and approval of comments on recommended policy (or policy options) Activities Effective Date (revisit) Effective Rate (finish) Reductions Approval of Comments 28 Effective Date • Any changes to what was agreed at the March 4 meeting? • Policy option to have nobody pay in the first year (even if platted after effective date of ordinance) – thoughts? 29 Effective Date Examples • Example 1: November 2050 • Example 2: October 2051 • Example 3: • Plat June 2050, Ordinance Effective August 2050, Building Permit Pulled in • Building Permit was pulled during 1 year grace period – no fee due • Plat June 2050, Ordinance Effective August 2050, Building Permit Pulled in • Impact Fee assessed at effective date, fee due at building permit • Ordinance Effective August 2050, Plat November 2050, Building Permit Pulled in March 2051 • Impact Fee assessed at plat, fee due at building permit 30 DISCLAIMER: All dates are for illustrative purposes only and are not meant to construe anticipated ordinance effective months or years. Effective Rate • Any changes to what was agreed at the March 4 meeting? • Thoughts on Option 1 vs Option 2? • Thoughts on residential reduction percentage? • Thoughts on using a “cap” on effective rate per vehicle mile? 31 Effective Rate Options Option # Collection Option Description 1 2 Flat Percentage, with Cap on Rate, with Residential at lower % This option reflects a flat percentage (50% of maximum). Residential is decreased to be 30% lower than non- residential. Cap on rate per vehicle-mile is based on average residential $ per veh-mi inside the loop, including residential reduction ($947 per vehicle-mile). Flat $ per veh-mi (trip length varies inside / outside), no cap and Residential at lower % This option reflects a flat fee per vehicle-mile of $1,215 (50% of average $ per veh-mi citywide). Residential is decreased to be 30% lower than non-residential ($850.50 / veh-mi). Reductions Notes: • (To be filled in) Effective Date Notes: • Set effective date as ordinance adoption date • One rate – no phasing • No grace period extension for platted properties 32 33 34 Reductions • Technical reductions (applies to whole site) • Cap on internal capture (% of effective rate) • Cap on Transportation Demand Management (% of effective rate) • Policy reductions (applies to specific land uses / units) • Affordable housing • Maximum reduction (% of effective rate) 35 Draft Ordinance Elements - Reductions • Internal Capture / Mixed Use Reductions. The amount of street impacts fees shall be reduced under Schedule 25-6-664 (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 Reductions. The amount of street impacts fees shall be reduced under Schedule 25-6-664 (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. 36 Draft Ordinance Elements - Reductions • Affordable Housing. An applicant who sets aside 5% of the total units in a development as income-restricted affordable units, as verified by the Housing Director, may request an impact fee reduction resulting in the impact fee collected rate being reduced by 75 percent 37 Draft Ordinance Elements - Reductions • Reductions cumulative. Reductions identified are cumulative so that a development that qualifies for the maximum reduction under each provision may reduce impact fees otherwise due up to 60%, with the exception of developments where the affordable housing reduction applies, where the maximum reduction may reduce impact fees otherwise due up to 100%. • Burden of proof. The applicant for a reduction provided for in this Section has the burden of proof to show that the development qualifies for the reduction. 38 Approval of Comments Recommendation Policy Topic Effective Rate Reduction – Internal Capture Reduction – Transportation Demand Management Reduction – Affordable Housing Reductions cumulative Effective Date 39 Item 2c – Future IFAC meeting schedule 40 • Next Steps for Public Engagement & Approval • Public meetings and information on draft ordinance and policy SIF Schedule considerations • Council briefings • Public hearing • Ordinance approval • Additional IFAC meeting? 41 Questions? • For more information, please visit the project website at: austintexas.gov/streetimpactfee 42