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HomeMy WebLinkAboutOrdinance 27900-08-2025 (2)ORDINANCE NO.27900-08-2025 AN ORDINANCE AMENDING CHAPTER 30 "STREETS AND SIDEWALKS," ARTICLE VIII "TRANSPORTATION," OF THE CODE OF THE CITY OF FORT WORTH, TEXAS (2015), AS AMENDED, BY AMENDING SECTIONS 30-154, 30-159 AND 30-173 TO REVISE PROVISIONS ADMINISTERING THE TRANSPORTATION IMPACT FEE PROGRAM; AND AMENDING CHAPTER 2 'ADMINISTRATION, ARTICLE III "BOARDS AND COMMISSIONS," DIVISION 4 'RULES AND PROCEDURES FOR CERTAIN BOARDS," OF THE CODE OF THE CITY OF FORT WORTH, TEXAS (2015), AS AMENDED BY AMENDING SECTION 2-83 TO REVISE THE LIST OF BOARDS THAT ARE NOT APPOINTED BY DISTRICT TO ADD THE CAPITAL IMPROVEMENTS ADVISORY COMMITTEE FOR TRANSPORTATION IMPACT FEES; MAKING THIS ORDINANCE CUMULATIVE; PROVIDING A SEVERABILITY CLAUSE; PROVIDING A SAVINGS CLAUSE; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, Chapter 395 of the Texas Local Government Code governs the establishment, imposition and management of impact fees; and WHEREAS, on May 13, 2008, the City of Fort Worth adopted Ordinance No. 18083-05- 2008 creating impact fees for transportation facilities, now codified in Chapter 30, Article VIII of the Code of the City of Fort Worth (2015); and WHEREAS, the 89th Texas Legislature, Regular Session, adopted Senate Bill 1883, signed by Governor Abbott on June 20, 2025, effective September 1, 2025 which makes changes to Chapter 395 of the Texas Local Government Code; and WHEREAS, Senate Bill 1883 changes the qualification requirements for impact fee advisory committees and no longer allows a planning and zoning commission to serve as the advisory committee, which requires corresponding amendments to the City Code; and WHEREAS, the 89th Texas Legislature, Regular Session, adopted Senate Bill 840, signed by Governor Abbott on June 20, 2025, effective September 1, 2025 creating Chapter 218 of the Texas Local Government Code which regulates conversions of buildings and the collection of impact fees related thereto; and WHEREAS, the City Council desires to amend the City Code to comply with the changes to Chapter 395 of the Texas Local Government Code, to make revisions in keeping with Senate Bill 840, and to make other minor text revisions; and WHEREAS, the City Council desires to amend the City Code to codify the terms of service, composition, qualification, and duties the Capital Improvements Advisory Committee for Transportation Impact Fees. Ordinance No. 27900-08-2025 Page 1 of 7 NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH: SECTION 1. Chapter 30, Article VIII, Division 1, §30-154 "Definitions" of the Code of the City of Fort Worth, Texas (2015), as amended, is hereby amended to delete the definition of Capital Improvements Advisory Committee in its entirety and revise the definitions of Change of Use and Shell Building to be and read as follows: . The ads— Fran ee tW6ir., tz-, to fulfill the eempesitien manda4ed i;. Lo✓zl Govemment Code §395.0 CHANGE OF USE. A change in the use or occupancy of any existing structure, with the e*eeptien of she!! building(s)never- p-evieusly eraeopica, for which a certificate of occupancv has been issued. that does not add sauare footage to the existing structure pr-eeeding-awe;--Aff.&. , but is no lotted 40, ttr_ r8eeffqMly6=9 l�e'V816p�13@ttt, I.'eFfii^or�S l c�FH:si--isr�eiut�6�3 6 enjor-gement of my stmettir-e. SHELL BUILDING. A new, non-residential building that is built without a final use determined. Finish -out hermits for a building or areas within a building that have not been issued a final certificate of occupancv do not constitute a Change of Use and must hav impact fees based on their final use. SECTION 2. Chapter 30, Article VIII, Division 1, §30-159 "Functions of Capital Improvements Advisory Committee for Transportation Impact Fees" of the Code of the City of Fort Worth, Texas (2015), as amended, is hereby amended to read as follows: Sec. 30-159 ESTABLISHMENT, COMPOSITION AND FUNCTIONS OF CAPITAL IMPROVEMENTS ADVISORY COMMITTEE FOR TRANSPORTATION IMPACT FEES. (a) There is hereby created a Capital Improvements Advisory Committee ("Committee") for Transportation Impact Fees. which shall act in an advisory capacity, in accordance with Section 395.058 of the Texas Local Government Code. (b) The Committee shall consist of seven regular members and two alternate members. each of whom shall be a resident of the Citv. The members of the Committee shall be appointed by the City Council. At least four of the regular members and one of the alternate members shall be representatives of the real estate. development, or building industries who are not Ordinance No.27900-08-2025 Page 2 of 7 emvlovees or officials of a political subdivision or governmental entity. The alternate members shall serve when regular committee members are unable to attend or participate. (c) The regular members of the Committee shall be identified by place numbers one through seven. The odd -numbered places shall expire on October 1 of each odd -numbered vear and the even -numbered places shall expire on October 1 of each even -numbered Year. The term of the alternate members shall expire on October 1 in each odd numbered vear. Members may be appointed to succeed themselves. Vacancies shall be filled for unexpired terms but no members may be appointed to a term in excess of two vears. Four members of the Committee constitute a Quorum for the conduct of business. The members of the Committee shall regularly attend meetings and shall serve without compensation, except for reimbursement for authorized expenses attendant to the performance of their duties. (add) The eVital imprevem a a46eate)-Committee shall perform the following functions: (1) Advise and assist the City in adopting land use assumptions; (2) Review the tmaspeAmieft capital improvements plans and file written comments on impact fees; (3) Monitor and evaluate implementation of thetFmspeFtatiett capital improvements plans; (4) File semiannual reports with respect to the progress of the capital improvements plans and report to the Citv Council anv perceived inequities in implementing the plans or imposing the impact fee Advise the eity of the ffoea te • .lots or o e the fees; and (5) Advise the Citv Council of the need to update or revise the land use assumptions. capital improvements plans. and impact fees. File a semiannual repeA, (be) The City shall make available to the eapital improvements adviseff Committee €ex trmcr_mL03a i"aet—€ees any professional reports prepared in the development or implementation of the transportation improvements plans. (e_0 The City Council shall adopt procedural rules for the eapital iffipFevetmeRts a&iser-y Committee to follow in carrying out its duties. SECTION 3. Ordinance No. 27900-08-2025 Page 3 of 7 Chapter 30, Article VIII, Division 2, §30-173, "Collection of Impact Fees," Subsection (a) of the Code of the City of Fort Worth, Texas (2015), as amended, is hereby amended to read as follows: Sec. 30-173 COLLECTION OF IMPACT FEES. (a) Transportation impact fees shall be collected at the time the City issues a building permit for a new development, unless a different time is provided for in aii •".,.00. ent for- capi ' e�ee�tts pursuant to subsections (b) or c below. SECTION 4. Chapter 30, Article VIII, Division 2, §30-173, "Collection of Impact Fees," Subsection (c)(4) of the Code of the City of Fort Worth, Texas (2015), as amended, is hereby amended to read as follows: Sec. 30-173 COLLECTION OF IMPACT FEES. (c) The Director of Development Services or his or her delegate shall compute the transportation impact fees for a new development in the following manner. (4) Impact fees for Shell Buildings are wi4-based on a general land use category to establish an impact fee amount to be collected at the time of -the building permit for the Shell Building app4es6oi+-is issued. Impact fees will be calculated based upon the ultimate land use corresponding with the subseauent finish -out hermits for the building reduced by the impact fees initially paid on that portion of the Shell Building. Tenant finish eat pefmits will be reviewed and eempe&ed against the original she!! building land use fer- eelleetien efadditieflal impaet fees ewed, if any. Anv difference in impact fees will be due at the time the building permit is issued for the finish -out. Ordinance No. 27900-08-2025 Page 4 of 7 SECTION 5. Chapter 30, Article VIII, Division 2, §30-173, "Collection of Impact Fees," Subsection (d), Subdivision (3) Extraordinary investment discount at subpart a. 2. of the Code of the City of Fort Worth, Texas (2015), as amended, is hereby amended to read as follows: Sec. 30-173 COLLECTION OF IMPACT FEES. (d) The following discounts shall apply to reduce Schedule 2 transportation impact fees otherwise due: (3) Extraordinary investment discount. a. The amount of transportation impact fees due under Schedule 2 shall be reduced 25% for any development that results in all of the following qualifications, as jointly determined by the Development Services Department and the Department of Economic Development: 2. Creation of 75 new. permanent jobs; and SECTION 6. Chapter 30, Article VIII, Division Two, §30-173, "Collection of Impact Fees," Subsection (d), Subdivision (3) Extraordinary investment discount at subpart b. of the Code of the City of Fort Worth, Texas (2015), as amended, is hereby specifically amended to read as follows: Sec. 30-173 COLLECTION OF IMPACT FEES. (d) The following discounts shall apply to reduce Schedule 2 transportation impact fees otherwise due: (3) Extraordinary investment discount. b. For each additional $10,000,000 in capital investment or additional 75 qualified new, permanent jobs, the impact fee amount due under Schedule 2 will be further reduced by an additional 5% up to a maximum reduction of 50%. A development may receive this discount and have a period of up to four years from the issuance of a building permit to qualify under the terms of this discount. Impact fees otherwise paid shall be refunded to the original payor at the time of issuance of the building permit. A development shall refund a pro rata share of this discount should the development not continue to maintain the number of new. permanent jobs for a period of at least ten years from the date of building permit (or the date of qualification for this discount), equal to 10% per annum for each year that the number of jobs is not maintained. The terms related to this discount shall be incorporated within an agreement for credits pursuant to § 30-182. Ordinance No.27900-08-2025 Page 5 of 7 SECTION 7. Chapter 30, Article VIII, Division 2, §30-173, "Collection of Impact Fees," Subsection (d), Subdivision (4) Small business discount at subpart a. of the Code of the City of Fort Worth, Texas (2015), as amended, is hereby amended to read as follows: See. 30-173 COLLECTION OF IMPACT FEES. (d) The following discounts shall apply to reduce Schedule 2 transportation impact fees otherwise due: (4) Small business discount. a. The amount of transportation impact fees due under Schedule 2 for non- residential building permits, other than new construction building permits, shall be reduced by 25% for a development that meets all of the following qualifications, as jointly determined by the Development Services Department and the Department of Economic Development: SECTION 8. Chapter 2, Article III, Section 2-83, "Numbers of Members and Terms of Service; Establishment of Places," of the Code of the City of Fort Worth, Texas (2015), as amended, is hereby amended by amending Subsection (b) to add subdivision (8) to read as follows: J8) Canital Imnrovements Advisory Committee for Transportation Impact Fees; and SECTION 9. This ordinance shall be cumulative of all provisions of ordinances and of the Code of the City of Fort Worth, Texas (2015), as amended, except where the provisions of this ordinance are in direct conflict with the provisions of such ordinances and such Code, in which event conflicting provisions of such ordinances and such Code are hereby repealed. SECTION 10. It is hereby declared to be the intention of the City Council that the sections, paragraphs, sentences, clauses and phrases of this ordinance are severable, and, if any phrase, clause, sentence, paragraph or section of this ordinance shall be declared unconstitutional by the valid judgment or decree of any court of competent jurisdiction, such unconstitutionality shall not affect any of the remaining phrases, clauses, sentences, paragraphs and section of this ordinance, since the same would have been enacted by the City Council without the incorporation in this ordinance of any such unconstitutional phrase, clause, sentence, paragraph or section. Ordinance No. 27900-08-2025 Page 6 of 7 SECTION 11. That all rights and remedies of the City of Fort Worth, Texas are expressly saved as to any and all violations of the City Code, or any amendments thereto that have accrued at the time of the effective date of this ordinance; and as to such accrued violations, and all pending litigation, both civil and criminal, same shall not be affected by this ordinance but may be prosecuted until final disposition of the courts. SECTION 12. This ordinance shall take effect upon adoption. APPROVED AS TO FORM AND LEGALITY: CITY SECRETARY Douglas Black (Sep 16, 202514:52:06 CDT) Douglas W Black Jannette S. Goodall Sr. Assistant City Attorney City Secretary ADOPTED and EFFECTIVE: August 26, 2025 �ao 4 O ®�j 000oo000000 A�A O �o°v ®��YYO o o�p o o (� o 0 d A 00 00 L> V 0000000000 A Ordinance No.27900-08-2025 Page 7 of 7 City of Fort Worth, Texas Mayor and Council Communication DATE: 08/26/25 M&C FILE NUMBER: M&C 25-0768 LOG NAME: 06TRANSPORTATION IMPACT FEE ORDINANCE LEGISLATIVE UPDATE 2025 SUBJECT (ALL) Adopt an Ordinance Amending Chapter 30, Article VIII, "Transportation Impact Fees" of the Code of the City of Fort Worth to Revise Certain Provisions Relating to the Transportation Impact Fee Program to Comply with Legislation Passed by the 89th Texas Legislature and to Make Other Text Revisions and Amending Chapter 2, Article I "In General' of the Code of the City of Fort Worth Regarding the Character and Make -Up of Boards RECOMMENDATION: It is recommended that the City Council adopt the attached ordinance amending the Code of the City of Fort Worth Chapter 30 "Streets and Sidewalks", Article VIII, "Transportation Impact Fees," Division 1 "General Provisions" Section 30-154 "Definitions" and Section 30-159 "Functions of Capital Improvements Advisory Committee for Transportation Impact Fees" and Division 2 "Assessment and Collection of Impact Fees" Section 30-173 "Collection of Impact Fees" to revise certain provisions relating to the Capital Improvements Advisory Committee required by legislation passed by the 89th Texas Legislature and make other text revisions thereto and amending Chapter 2 "Administration", Article I "In General", Division 4 "Rules and Procedures for Certain City Boards", Section 2-83 "Number of Members and Terms of Service; and Establishment of Places. DISCUSSION: The purpose of this Mayor and Council Communication is to adopt an ordinance amending Chapter 30, Article VIII, Transportation Impact Fees to address the impacts of Senate Bill (S.B.) 1883 and S.B. 840 passed by the 89th Texas Legislature. Both bills take effect on September 1, 2025. S.B. 1883 makes substantial changes to certain procedures which are not codified in City Code. The change that is being addressed by this Ordinance is to the composition of the Capital Improvements Advisory Committee (CIAC). S.B. 1883 removes the provision that allows the City Plan Commission to serve as the impact fee advisory committee. City Code Sec. 30-154 Definitions defined the CIAC to be the City Plan Commission which has served in that role. Moreover, the character of the committee has been changed such that 50% of the minimum five members must be representatives of the real estate, development, or building industries who are not employees or officials of a governmental entity. The ordinance establishes the CIAC in an existing section describing its duties as per state law. Staff recommends that the CIAC be composed of seven regular members and two alternates. Four of the seven members and one of the two alternates must be representatives from the real estate, development, and building industries who are not employees or officials of a political subdivision or governmental entity in accordance with the bill. The other changes to the Impact Fees code are based on S.B. 840 to clarify when impact fees will be collected on shell buildings and subsequent finish out for occupancy and by staff to make clear that the extraordinary investment discount is for permanent jobs and that the small business discount applies to non-residential building permits. The ordinance will amend Chapter 2 of the City Code to exempt the CIAC from the standing requirement of being an eleven member boad appointed by council district. The ordinance will be effective upon adoption. A Form 1295 is not required because: This M&C does not request approval of a contract with a business entity. FISCAL INFORMATION / CERTIFICATION: The Director of Finance certifies that approval of the recommendation will have no material effect on City funds. Submitted for Citv Manaaer's Office bv: Jesica McEachern 5804 Oriainatina Business Unit Head: D.J. Harrell 8032 Additional Information Contact: Jennifer Roberts 6101 Expedited