HomeMy WebLinkAboutIR 8990INFORMAL REPORT TO CITY COUNCIL MEMBERS
SAE
To the Mayor and Members of the City Council
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SUBJECT: UPDATE ON TRANSPORTATION IMPACT FEES
On September 16'', the City Council requested that staff provide an update on the results of the
transportation impact fee program that became effective on July 1, 2008.
As a reminder, fees are applicable in 19 of the 27 service areas. However, grace periods were established so
that fees would not apply to existing platted property for one to two years, depending on their status at the
time of the effective date of the ordinance. Fees are assessed at the time of platting but collected as part of
the building permit process. As expected, few fees have been collected to date.
Staff collaborated extensively with the development community during the adoption of the ordinance.
Since that time, a few individual developer concerns have been raised as follows:
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• ;A ,developer of an apartment complex owed transportation impact fees while no fee would have
°.`b"llected under the former standards. Staff met with the developer to articulate that the fees are
commensurate with the impact to the roads in the service area. Discounts are available for
developments that have a land - use /transportation connection, adequate infrastructure or represent
extraordinary investment.
• A developer for a large retailer to be located in Fort Worth adjacent to another municipality raised
concerns about the competitiveness of development costs between the two cities operating in the
same retail market. Although the competitive advantages associated with transportation impact fee
variations were eliminated within the City, they may exist with adjacent municipalities. Staff will
evaluate this issue in the context of the City Manager's Advisory Committee on Development Costs
and Infrastructure Funding.
• Some developers have expressed concerns about the sufficiency of the grace periods in the current
market due to extended build -out timelines for projects that were underway when the transportation
impact fees were adopted. The grace periods that were adopted exceed that required by State law.
The Monthly Management Report distributed by the Financial Management Services Department will
include a table showing the collections by service area. The Transportation and Public Works Department
will be responsible for developing the criteria for allocating the funds collected and will seek Council
approval for any planned expenditures.
Please contact Susan Alanis, Planning and Development Director, at 817.392.8180 if you have any
additional questions.
A. F• , PE
' tity Manager
ISSUED BY THE CITY MANAGER
FORT WORTH, TEXAS
Update on Transportation
Impact Fees
SORT WOgTH
Presented to the City Council
By the Planning & Development Department
October 28, 2008
Purpose of Today's Briefing
• Review Program
Applicability
• Identify Developments
Affected to Date
• Share Feedback from
Development Community
• Propose Financial
Reporting
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Review of Applicability
• Active vs. No -Fee Service
Areas
19 active -fee service areas
8 no -fee service areas
Service areas bounded by 2006
corporate limits
• Assessment vs. Collection
— All plats are assessed
Fees collected at building permit
issuance as applicable
• Grace Periods
1 year from effective date for
"old" plats
2 years from filing date for "in
process" plats
Affected Developments
• 1,593 building permits
issued since July l st
• 17 Permits subject to
fee (through 1018/0$)
• 1 Fee collected
($2,000)
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Available Discounts
• Land Use /Transportation Connection (up to 15 %)
• Adequate Facilities (up to 15 %)
• Extraordinary Investment (up to 15 %)
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Developer Feedback, cont.
• Competitiveness
with adjacent
municipalities
Developer Feedback, cont.
Sufficiency of
grace periods in
current market
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Financial
Reporting
Collections by
service area will be
communicated
monthly in the
Monthly
Management
Report
Transportation and
Public Works to
prioritize and seek
Council approval for
spending
FORT WORTH
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