Item 2C - Street Impact Fee - staff presentation — original pdf

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Street Impact Fee Briefing: Study Results & Draft Policy Recommendation Urban Transportation Commission June 12, 2020 Austin Transportation Department Overview • Work to Date & Prior Actions • Maximum Impact Fee & Draft Policy Recommendation • Revenue Projections • Community Feedback • Next Steps 2 What are Street Impact Fees? • One-time fee for new development • Study determines the costs of street infrastructure to meet the needs of new development • Governed by Chapter 395 of the Texas Local Government Code 3 How do we calculate the costs of needed street infrastructure to serve new growth? • Project new growth for the next 10 years • Establish Service Areas within which a maximum impact fee is determined • Develop Land Use Assumptions and corresponding growth projections within each Service Area • Project corresponding roadway capacity needs (Roadway Capacity Plan) to accommodate that growth within each Service Area 4 Why Street Impact Fees? • Determining a method for growth to pay for necessary infrastructure in a way that is: • Equitable – the same type and intensity development pays equal fee within a Service Area • Predictable – can determine the fee without doing an intensive study • Transparent – a worksheet to calculate the fee would be publicly available • Flexible – fees collected can be spent within a Service Area on any projects identified in the study within 10 years of being collected • Ultimate purpose is to develop a fair and reasonable fee development should pay for vehicle capacity improvements 5 Street Impact Fee Study 2016 2017 2018 2019 Data Collection Service Areas and Land Use Assumptions Roadway Capacity Plan Development (in coordination with ASMP) Phase 1 Phase 2 Establish Advisory Committee Mobility Committee Council comments on Service Areas, Land Use Assumptions 6 2020 Policy and Ordinance Review Phase 3 Council action on Study Assumptions Council action on Policy 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 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 • March 4, 2020: Impact Fee Advisory Committee • Recommended approval of Street Impact Fee Study Report • August 22, 2019: City Council approval of SIF study assumptions (Land Use Assumptions & Roadway Capacity Plan) • April 14, 2020: Impact Fee Advisory Committee • Recommended fee collection rates and policy • April 30, 2020: Council Mobility Committee 7 Approved Study Assumptions August 22, 2019 • 17 Service Areas (6-mi. diameter) • Land Use Assumptions • Basis for residential and employment growth projections over 10-year period (2017-2027) • Roadway Capacity Plan (defined by Austin Strategic Mobility Plan) • New roadways • Roadway expansions • Access management • Intersection improvements 8 Street Design based on • Street Network Table → ROW • Transportation Criteria Manual → Cross-sections 9 Impact Fee Calculation 𝑴𝒂𝒙𝒊𝒎𝒖𝒎 𝑰𝒎𝒑𝒂𝒄𝒕 𝑭𝒆𝒆 𝑷𝒆𝒓 𝑺𝒆𝒓𝒗𝒊𝒄𝒆 𝑼𝒏𝒊𝒕 = 𝑹𝒆𝒄𝒐𝒗𝒆𝒓𝒂𝒃𝒍𝒆 𝑪𝒐𝒔𝒕 𝒐𝒇 𝑹𝑪𝑷 ($) 𝑵𝒆𝒘 𝑺𝒆𝒓𝒗𝒊𝒄𝒆 𝑼𝒏𝒊𝒕𝒔 𝒐𝒇 𝑫𝒆𝒎𝒂𝒏𝒅 • Developed Land Use and Population Projections (Demand) • Developed 10-Year Impact Fee CIP (RCP) • Removed costs associated with existing demand and growth at 10+ years • Accounted for prior developer contributions • Conducted Credit Calculation = Maximum Impact Fee 10 11 Collected Fees – Considerations Council can consider the following factors in establishing policy/equity: • 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 by development • 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 • Reductions: Additional reductions for different development types that further other City objectives, such as affordable housing and transit-oriented development 12 Maximum Impact Fees & Draft Recommended Rates • IFAC process to recommend Collected Rate • IFAC initially agreed on the following: • Flat percentage of maximum across City, not a flat rate • Different rates for residential and non-residential • 50% of maximum for non-residential uses • 35% of maximum for residential uses 13 *Highest rate in Service Area K **Lowest rate in Service Area DT DU = Dwelling Unit s.f. = square foot Housing Fees 14 Grey represents maximum fees, Blue/Orange represent IFAC recommended collection rate (35% of maximum) $- $5,000.00 $10,000.00 $15,000.00 $20,000.00 $25,000.00 $30,000.00SA ASA BSA CSA DSA ESA FSA GSA HSA ISA JSA KSA LSA MSA NSA OSA PSA DTHousing FeesSingle Family (ITE 210)Townhomes / Duplexes / ADU's (ITE 220) $- $5,000.00 $10,000.00 $15,000.00 $20,000.00 $25,000.00 $30,000.00SA ASA BSA CSA DSA ESA FSA GSA HSA ISA JSA KSA LSA MSA NSA OSA PSA DTHousing FeesSingle Family (ITE 210)Townhomes / Duplexes / ADU's (ITE 220)Single Family (ITE 210) Collection Rate Service Area Single Family (ITE 210) Collection Rate DT A B C D E F G H I J K L M N O P $2,194.75 $6,678.19 $5,430.22 $3,307.04 $1,367.12 $3,046.11 $1,611.22 $4,578.86 $2,300.61 $1,719.70 $3,740.76 $8,576.23 $2,531.34 $3,600.77 $2,246.94 $5,846.21 $4,489.40 15 Note: $ values shown reflect 35% of maximum for residential land uses as recommended by the Impact Fee Advisory Committee $2,194.75 $6,678.19 $3,046.11 $5,430.22 $2,300.61 $8,756.23 $1,611.22 $1,719.70 $3,307.04 $4,578.86 $1,367.12 $3,740.76 $3,600.77 $2,531.34 $2,246.94 $5,846.21 $4,489.40 Service Area Townhome / Duplex, ADUs or 1-2 Story Multi-Family (ITE 220) Collection Rate $1,241.63 $3,778.04 Duplex / ADU / 1-2 Story Multi- Family (ITE 220) Collection Rate DT A B C D E F G H I J K L M N O P $1,241.63 $3,778.04 $3,072.03 $1,870.88 $771.69 $1,723.27 $909.47 $2,590.39 $1,301.52 $970.70 $2,111.51 $4,851.81 $1,428.84 $2,037.05 $1,271.15 $3,307.36 $2,539.78 16 Note: $ values shown reflect 35% of maximum for residential land uses as recommended by the Impact Fee Advisory Committee $1,723.27 $3,072.03 $1,301.52 $4,851.51 $909.47 $970.70 $1,870.88 $2,590.39 $771.69 $2,111.51 $2,037.05 $1,428.84 $1,271.15 $3,307.36 $2,539.78 Service Area Mid-Rise Apts & Condominiums 3 – 10 Stories (ITE 221) Collection Rate $973.73 $2,962.86 Mid-Rise Apartments & Condos 3-10 Stories (ITE 221) Collection Rate DT A B C D E F G H I J K L M N O P $973.73 $2,962.86 $2,409.18 $1,467.21 $609.73 $1,351.44 $718.59 $2,031.47 $1,020.69 $766.98 $1,668.35 $3,804.95 $1,128.96 $1,597.52 $996.88 $2,593.74 $1,991.78 17 Note: $ values shown reflect 35% of maximum for residential land uses as recommended by the Impact Fee Advisory Committee $1,351.44 $2,409.18 $1,020.69 $3,804.95 $718.59 $766.98 $1,467.21 $2,031.47 $1,367.12 $1,668.35 $1,597.52 $1,128.96 $996.88 $2,593.74 $1,991.78 Service Area Single Family (ITE 210) Collection Rate Townhome / Duplex, ADUs or 1-2 Story Multi-Family (ITE 220) Collection Rate Mid-Rise Apts & Condominiums 3 – 10 Stories (ITE 221) Collection Rate DT A B C D E F G H I J K L M N O P 18 $2,194.75 $6,678.19 $5,430.22 $3,307.04 $1,367.12 $3,046.11 $1,611.22 $4,578.86 $2,300.61 $1,719.70 $3,740.76 $8,576.23 $2,531.34 $3,600.77 $2,246.94 $5,846.21 $4,489.40 $1,241.63 $3,778.04 $3,072.03 $1,870.88 $771.69 $1,723.27 $909.47 $2,590.39 $1,301.52 $970.70 $2,111.51 $4,851.81 $1,428.84 $2,037.05 $1,271.15 $3,307.36 $2,539.78 $973.73 $2,962.86 $2,409.18 $1,467.21 $609.73 $1,351.44 $718.59 $2,031.47 $1,020.69 $766.98 $1,668.35 $3,804.95 $1,128.96 $1,597.52 $996.88 $2,593.74 $1,991.78 Note: $ values shown reflect 35% of maximum for residential land uses as recommended by the Impact Fee Advisory Committee 3,000 s.f. Restaurant 19 Grey represents maximum fees, Green represents IFAC recommended collection rate (50% of maximum) $- $50,000.00 $100,000.00 $150,000.00 $200,000.00 $250,000.00 $300,000.00SA ASA BSA CSA DSA ESA FSA GSA HSA ISA JSA KSA LSA MSA NSA OSA PSA DT3,000 s.f. Restaurant3,000 s.f. Restaurant $- $50,000.00 $100,000.00 $150,000.00 $200,000.00 $250,000.00 $300,000.00SA ASA BSA CSA DSA ESA FSA GSA HSA ISA JSA KSA LSA MSA NSA OSA PSA DT3,000 s.f. Restaurant3,000 s.f. Restaurant10,000 s.f. Office 20 Grey represents maximum fees, Purple represents IFAC recommended collection rate (50% of maximum) $- $50,000.00 $100,000.00 $150,000.00 $200,000.00 $250,000.00SA ASA BSA CSA DSA ESA FSA GSA HSA ISA JSA KSA LSA MSA NSA OSA PSA DT10,000 s.f. Office10,000 s.f. Office $- $50,000.00 $100,000.00 $150,000.00 $200,000.00 $250,000.00SA ASA BSA CSA DSA ESA FSA GSA HSA ISA JSA KSA LSA MSA NSA OSA PSA DT10,000 s.f. Office10,000 s.f. Office50,000 s.f. Retail 21 Grey represents maximum fees, Yellow represents IFAC recommended collection rate (50% of maximum) $- $500,000.00 $1,000,000.00 $1,500,000.00 $2,000,000.00 $2,500,000.00SA ASA BSA CSA DSA ESA FSA GSA HSA ISA JSA KSA LSA MSA NSA OSA PSA DT50,000 s.f. Retail50,000 s.f. Retail $- $500,000.00 $1,000,000.00 $1,500,000.00 $2,000,000.00 $2,500,000.00SA ASA BSA CSA DSA ESA FSA GSA HSA ISA JSA KSA LSA MSA NSA OSA PSA DT50,000 s.f. Retail50,000 s.f. RetailFee Reductions • Technical reductions (applies to whole site) • Internal capture (cap of 20% reduction from effective rate) • Transportation Demand Management (cap of 40% reduction from effective • Policy reductions (applies to specific land uses / units) rate) • Affordable housing • Maximum cumulative reduction (60% of effective rate) 22 Collection Rate Comparisons – SA G Austin Development Mitigation/ Maximum IFAC Recommendation Round Rock+ Frisco+ Prosper+ Austin TIA 298 Apartments $86,288 $1,729,648 $605,778 $424,104 55,000 ft2 Office $317,388 $657,040 $328,520 $107,402 Fort Worth+ $631,164 $177,870 $365,3488 - $803,408 $216,315 - $475,915 $1,059,688 - $1,397,620 $214,005 - $282,260 $561,325 $8,858,400 ($8,415,480) $4,211,546 ($4,000,968) $1,566,632 $2,274,362 $2,395,819 - $5,270,671 $2,785,632 - $3,674,050 $260,000 $2,282,302 $840,908 $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. () 5% Internal Capture Reduction – NO OTHER REDUCTIONS APPLIED 23 Service Area G is outside the loop. 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 I Austin Development Mitigation/ Maximum IFAC Recommendation Round Rock+ Frisco+ Prosper+ Fort Worth+ Austin TIA 298 Apartments $86,288 $653,025 $228,560 $424,104 55,000 ft2 Office $317,388 $402,063 $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 $4,929,803 ($4,683,312) $2,382,726 ($2,263,590) $1,566,632 $2,274,362 $2,395,819 - $5,270,671 $2,785,632 - $3,674,050 $260,000 $904,276 $339,374 $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. () 5% Internal Capture Reduction – NO OTHER REDUCTIONS APPLIED 24 Service Area I is inside the loop. 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 Summary of Draft Recommendations Policy Topic Effective Rate Recommendation 50% of Maximum for Non-Residential land uses, 35% of Maximum for Residential land uses Reduction – Internal Capture Use ITE Methodology, capped at 20% Reduction – Transportation Demand Management Follow City procedures to determine, capped at 40% Reduction – Affordable Housing City to develop reduction to align with current LDC & programs Reductions Cumulative Maximum reduction is 60%, affordable housing up to 75% Effective Date Same as ordinance adoption, no collection of fees for 1 year 25 Feedback • Groups we’ve met with: • Austin Chamber of Commerce • Urban Land Institute • Austin Infill Coalition • Austin Neighborhoods Council • Austin Contractors & Engineers Association Chapter • American Institute of Architects Austin • Real Estate Council of Austin • Home Builders Association of Greater Austin • Evolve Austin • AURA 26 • What we’ve heard: • Smaller and infill development concerns • Encouraging ADUs • Not wanting to disincentivize house- scale multifamily and missing middle • Considering equity (historic underinvestment) & affordability • Encouraging sustainable transportation and meeting ASMP goals • Current economic environment • Wanting growth to pay for growth Next Steps • Continue public meetings and information on draft ordinance and policy considerations • Meetings with Codes & Ordinances (6/17), Planning Commission (6/23) • Council briefings • Public hearing – July 30, 2020 • Ordinance approval • Development of administrative procedures 27 More Information austintexas.gov/streetimpactfee • Study Final Report • “101” one-pagers on study elements • Status Reports to Mayor and Council • FAQs • Upcoming meetings • Sign-up for updates • Request a presentation • Impact Fee Advisory Committee meetings 28 Questions Liane Miller, AICP Austin Transportation liane.miller@austintexas.gov 512.974.7922 29 austintexas.gov/streetimpactfee