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HomeMy WebLinkAboutO-2574 - Establishes traffic impact fee exemption (Repealed by 2852)·.'".t!~-'6~~ ~p~ )11/65 C. ~..U CITY OF MARYSVILLE Marysville,Washington ORDINANCE No)lS7r.j AN ORDINANCE OF THE CITY OF MARYSVILLE, WASHINGTON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 ORDINANCE - 1 W/wpf/rnv/ord.xtrafflc revised 4·8-05 .. 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, ORDINANCE - 2 W/wpf/mv/ord.xtraffic revised 4-8-05 .. 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: ORDINANCE - 3 W/wpf/mv/ord.xtraffic revised 4-8-05 " 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 ORDINANCE - 4 W/wpf/mv/ord.xtrnffic revised 4-8-05 .,'" 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 ORDINANCE - 5 W/wpffmv/ord.xtraffic revised 4-8-05 .----------------------------------------------- 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 ORDINANCE - 6 W/wpf/mv/ord.xtraffic revised 4~8-05 .----------------------------------------------- ; I ~.\., 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 ORDINANCE - 7 W/wpf/mv/ord.xtraffic revised 4-8-05