HomeMy WebLinkAboutO-2574 - Establishes traffic impact fee exemption (Repealed by 2852)·.'".t!~-'6~~
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CITY OF MARYSVILLE
Marysville,Washington
ORDINANCE No)lS7r.j
AN ORDINANCE OF THE CITY OF MARYSVILLE,
WASHINGTON ESTABLISHING AN EXEMPTION FROM
TRAFFIC IMPACT FEES FOR PRESCRIBED DEVELOPMENT
ACTIVITIES AND AMENDING MMC TITLE 18B RELATING TO
TRAFFIC IMP ACT FEES AND MITIGATION-
THE CITY COUNCIL OF THE CITY OF MARYSVILLE, WASHINGTON DO
ORDAIN AS FOLLOWS:
Section I: Recitals/Findings.
I. RCW 82.02.050 and 82.02.060 authorize Cities to adopt by ordinance a
schedule of impact fees to ensure that adequate facilities are available to serve new growth
and development.
2. RCW 82.02.050(2) authorize Counties, Cities and Towns that are required to
plan under RCW 36.70A.040 to impose impact fees on development activity as part of the
financing of public facilities, provided that the financing for system improvements to serve
new development must provide for a balance between impact fees and other sources of public
funds and cannot rely solelyon impact fees.
3. RCW 82.02.060(2) authorize Cities by ordinance to provide an exemption for
development activities with broad public purposes provided that the impact fees for such
development activityshall be paid from public funds other than impact fee accounts.
4. Allocation of sales and use tax revenue from commercial development to
offset traffic impacts from said developments will reduce the need for traffic mitigation fees
because the sales and use tax revenues can be applied to make improvements to the City's
roadway infrastructure.
5. RCW 82.02.060(4) authorize Cities imposing impact fees to adjust the
standard impact fee at the time the fee is imposed to consider unusual circumstances in
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specific cases to ensure that impact fees are imposed fairly.
6.In November, 2002, the Marysville City Council approved an economic
development plan hereafter, "The Plan" prepared by Gardner Johnson entitled "The City of
Marysville Economic Development Plan for Business Retention, Expansion and Attraction."
The plan commits to promote economic development in the City and dedicates retail sales tax
and other new revenues realized from economic growth back into projects which promote
economic development. Such projects include, but are not limited to improvements to the
City's roadway infrastructure.
7. On June 14,2004 the Marysville City Council adopted the following
Economic Development Goal Statement proposed by the City's Economic Development
Committees:
"It is the overall goal of the economic development committees to increase total
revenues generated from sales and property taxes a minimum of eight percent per
year over the next three years by bringing new commercial and industrial business
ventures to the city and by implementing other economic development strategies
not including growth resulting from annexations. The committees further
recommend that 50 percent ofthe increase in said revenues be set aside to continue
efforts and programs that provide additional economic development that meets
quality of life goals set forward by the committees.n
8. The City wishes to encourage commercial development that is consistent with
the City's Comprehensive Plan and promote location oflarge scale businesses in appropriate
zoning designations.
9. The City Council hereby finds that adequate road infrastructure is vital to the
promotion and attraction of new business to the City and to the reduction of traffic congestion
for all citizens.It is recognized that retail sales tax generated by certain classes of retail
commercial developments directly supports the City's Street and General funds and supports
the costs of roadway infrastructure. Application of sales and use tax revenues toward the
City's planned roadway improvements improves mobility and promotes travel, commerce
and quality oflife for all users ofthe Citystreet network.
10. Among the strategic directions within The Plan was an initiative to improve
automobile and pedestrian circulation which included the creation of incentives to promote
improvements to transportation and to investigate opportunities to alleviate high mitigation
costs for development. The Plan focuses on the attraction of new business and industry and
the creation of a balance ofjobs and housing and a sustainable economy and social/economic
well-being for its citizens. The goals and objectives contained in The Plan encourages
economic development activities with broad public purposes such as creating jobs,
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social/economic well-being and improvement of City facilities and infrastructure, all of
which benefit the citizens of Marysville and the greater Marysville region.
II.Application of General Fund sales and use tax revenue derived from new
economic development to support street capital facilities and other planned-for public
facilities serves the following broad public purposes and benefits the citizens of Marysville
and Snohomish County:
a. New sources of sales and use tax revenue generated from new
businesses choosing to locate in Marysville will stimulate the local economy
and promote commerce. Application of sales and use tax revenues to projects
identified in the City's Street Capital Improvement Program and the Six Year
Transportation Improvement Plan will aid in the funding of needed roadway
improvements and will further enhance mobility of persons and goods
throughout the greater Marysville area.
b. Application of increased sales and use tax revenues to needed projects
identified in the City's Capital Facilities Plan will promote further economic
activity and will create jobs and promote economic growth in Marysville and
will, in tum, reduce commuter trips to jobs outside of the Marysville area and
will enable more citizens to both live and work within Marysville.
c. Improved roadway infrastructure funded in part from increased sales
and use tax revenue will attract new business to the greater Marysville area
and will support the planning efforts required by law under the State Growth
Management Act.
12. The corporate boundaries and Urban Growth Area of the City of Marysville
are in close proximity to the Tulalip Indian Reservation. The Tulalip Tribes are a sovereign
nation which by law are entitled to promote economic development through means not
available to the City of Marysville.This can and does create a competitive disadvantage to
the City of Marysville in attracting new business to the City. The City of Marysville's
proximity to the Tulalip Indian Reservation and demographics of the area constitute unusual
circumstances warranting adjustment to standard traffic impact fees to certain classes of new
business in order to ease the competitive disadvantage and attract new business.
13. The Land Use and Economic Development Elements of the Marysville
Comprehensive Plan adopted pursuant to the State Growth Management Act establish
policies, goals and land use designations in north Marysville which are intended to attract
new large scale business development which are capable of generating significant sales and
property tax revenues for the City:
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Section 2. Traffic Impact Fee Exemption Established. Pursuant to RCW
82.02.060(2) and (4) there is hereby established an exemption from the traffic impact fee set
forth in MMC I8B.I4.030 for development activity which meet the criteria of Section 4
below.
Section 3. Application For Traffic Impact Fee Exemption.
I. Impact Fee Exemption. Any developer applying for or receiving a building
permit which meets the criteria set forth in Section 4 below may apply to the Director of
Public Works or designee for an exemption from the traffic impact fee established pursuant
to MMC 18B.I4.030. Said application shall be on forms provided by the City and shall be
accompanied by all information and data the City deems necessary to process the application.
To the extent it is authorized by law the City shall endeavor to keep all proprietary
information submitted with said application confidential. Provided, however, this ordinance
shallnot create or establish a special dutyto do so.
Section 4. Exemption Criteria. To be eligible for the traffic impact fee exemption
established by this Chapter, the Applicant shall meet each of the following criteria:
1. The applicant must be a new commercial retail business in the Marysville City
Limits. For purposes of this ordinance"new commercial retail business" shall
mean any business which sells retail goods and services which are subject to
the retail sales tax provisions of MMC Chapter 3.84 and which applies for a
building permit and which is subject to payment of traffic impact fees
pursuant to MMC Title 188.
2. Based on similar store sales or other reliable data, as determined by the City,
the applicant must demonstrate that it is likely to generate to the City of
Marysville average annual City of Marysville portion sales and use tax
revenue of at least $200,000 based upon the three (3) yearperiod commencing
from date of certificate of occupancy.
3. The applicant must be a new retail business located within one of the
following prescribed land use zones: Light Industrial (LI), General
Commercial (GC), Community Business (CB), Mixed Use (MU), Downtown
Commercial (DC).
Section 5. Administration of Traffic ImpactFee Exemption.
1.Upon acceptance of an application for exemption from Traffic Impact Fees
pursuant to Section 3 above the applicant shall pay to the City the full amount of the Traffic
Impact Fees required pursuant to MMC 188.14.030. Following receipt of the Traffic Impact
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Fees the City shall deposit and manage the fees as set forth in Section 6 below. At the
expiration of a three year period commencing from the date of issuance of a certificate of
occupancy the Public Works Director, with the assistance of the City Finance Director shall
determine if the average annual City of Marysville portion sales and use tax revenue received
by the City meets the minimum amount stated in Section 4(2) above. The determination shall
be based upon the sales tax reporting requirements of Chapter 3.84 of the Marysville
Municipal Code as it now reads or ishereafter amended.
2. In the event the three year average annual City of Marysvilleportion sales and
use tax revenue criteria of Section 4(2) above has been met as determined by the Director of
Public Works there shall be an exemption of 50% from the Traffic Impact Fees otherwise due
pursuant to MMC 188.14.030.In such case, 50%of the amount paid to the City pursuant to
Section 5(1) above shall be refunded to the applicant, plus any accrued interest. The
remainder of the funds deposited pursuant to Section 5 above shall belong to the City and
shall be released to the City.
3.In the event the three year average annual City of Marysvilleportion sales and
use tax revenue criteria of Section 4(2) above has not been met, the Traffic Impact Fee
required under MMC 188.14.030 shall immediately belong to and shall be released to the
City. Provided, however, in cases where the applicant has met at least 75%of the amount set
forth in Section 4(2) above, the applicant shall receive a partial exemption which shall result
in a refund of 25%of the amount paid to the City pursuant to Section 5 above plus any
accrued interest. The remainder of the funds deposited pursuant to Section 5 above shall
belong to the City and shall be released to the City.
4. In cases where the applicant has not met either the three year annual sales and
use tax revenue of Section 4(2) above or 75% thereof, all Traffic Impact Fees paid pursuant
to MMC 18B.14.030 shall belong to the City.
Section 6. Deposit and Management of Traffic Impact Fees. Traffic Impact Fees
paid by an applicant pursuant to this Chapter and the provisions of MMC 18B.14.030shall be
deposited by the City into a separate interest bearing account with any qualified public
depository for local govemment as determined by the City. The account holder shall be the
City of Marysville. The City may at its option withdraw up to 50%of said funds at any time
for uses authorized by MMC Title 188. All other funds deposited in that account shall be
used exclusively for payment of refunds to eligible applicants pursuant to Section 5 above
and balances if any, to which the City is entitled. All refunds and interest to which an
applicant is entitled shall be paid by the City within one hundred twenty (120) days following
the three yearperiod following the issuance of a Certificate of Occuparicy.
Section 7. Appeals. Any applicant aggrieved by the determination of the Director of
Public Works as to whether the criteria of Section 4 have been met or the eligibility for an
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exemption from MMC I8B.14.030 or the amount of refund to which an applicant is entitled
pursuant to Section 5 may file a written appeal to the City's Land Use Hearing Examiner as
established by Chapter 2.70 of the Marysville Municipal Code. The City Examiner is hereby
specifically authorized to hear and decide such appeals and the decision of the Hearing
Examiner shall be final action of the City and subject to appeal pursuant to Chapter 15.11 of
the Marysville Municipal Code.
Section 8. Application of Sales and use tax revenue From Businesses Which Receive
an Exemption or Partial Exemption,
I. All sales and use tax revenues received by the City from applicants who
receive an exemption or partial exemption from the requirements of MMC Title 18Bshall be
deposited in a special account to be administered by the City. Said account shall be
established to pay traffic impact fees that otherwise would have been paid had an exemption
or partial exemption not been granted. Said amounts shall be expended for purposes
authorized by and in accordance with the provisions of MMC Title 18 B and the provisions
of the City's Capital Improvement Plan for Streets. All sales and use tax revenues in excess
of the amount paid as traffic impact fees received by the City from the Applicant may be
deposited in the City's General Fund and may be expended for any lawful purpose as directed
by the City Council.
2. Special Sale Tax Account. The City shall establish by separate ordinance a
special sales tax account for the purposes set forth in Section 8(1) above.
Section 9. Severability.If any section,subsection,sentence, clause, phrase or word
of this ordinance should be held to be invalid or unconstitutional by a court of competent
jurisdiction,such invalidity or unconstitutionality thereof shall not affect the validity or
constitutionality of any other section,subsection,sentence, clause, phrase or word of this
ordinance.
PASSED by the City Council and APPROVED by the Mayor thisc?S+,z day of
~2005.
CITY OF MARYS~I~Ll~/
ByLL~
DENNIS KENDALL, Mayor
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AITEST:
Approved as to form:
By/J~I:::..~
GRANT K.WEED, City Attorney
Date of Publication:---.!if 27/0:;
Effective Date (5 days after publication):5 b.../tJ 5
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