Title
Consider/Discuss/Act on an Appeal to Chapter 130 of the Code of Ordinances Regarding Roadway Impact Fees Associated with the Louisiana Street Grill, Located on the South Side of Louisiana Street and East of McDonald Street.
Summary
MEETING DATE: December 6, 2011
DEPARTMENT: Development Services - Planning
CONTACT: Kevin Spath, AICP - Assistant Director of Planning
Anthony Satarino - Planner
RECOMMENDED CITY COUNCIL ACTION:
• Staff recommends denial of the appeal because the applicant has not met the burden of proof required by Section 130-113(A) of the Roadway Impact Fee Ordinance.
ITEM SUMMARY:
• On June 13, 2011, the developers of Louisiana Street Grill paid roadway impact fees in the amount of $8,262.87 associated with the rehabilitation of a portion of an existing building and associated required construction of a new parking lot. No utility impact fees were assessed as the developer was not changing the size, type, or quantity of the existing water meter service to the building.
• Per Section 130-113(A) of the Roadway Impact Fee Ordinance, the developers of Louisiana Street Grill have submitted an appeal, requesting a refund of the roadway impact fees in the amount of $8,262.87.
• Approval of the appeal would result in foregone impact fee revenues of $8,262.87 that would otherwise be available for roadway system improvements in Service Area K.
• Staff’s recommendation of denial is based on upholding the integrity of the Roadway Impact Fee Ordinance. The proposed redevelopment of the site (i.e. rehabilitation/conversion of a portion of an existing building and construction of a new parking lot) involves a change in land use category from General Light Industrial to Sit-Down Restaurant, which increases the number of service units (vehicle miles generated by the site in the afternoon peak hour of traffic).
• In Staff’s professional judgment, the applicant has not met the burden of proof required by Section 130-113(A) of the Roadway Impact Fee Ordinance and has not demonstrated that the amount of the fee was not calculated according to the rules set forth in the Roadway Impact Fee Ordinance.
• However, Staff acknowledges the shared goals of the City Council and of community stakeholders to attract reinvestment, encourage economic redevelopment, and achieve sustained revitalization of the historic Town Center over time.
• Staff also acknowledges the challenging nature of redevelopment and is cognizant of the fact that development-related fees such as impact fees may currently act as a disincentive to small-scale infill redevelopment, which is so critical to the realization of the adopted Town Center Master Plan.
• At the September 26th special work session, City Council and Staff began a discussion on the broader policy issue of implementing an incentive program to include the reduction/elimination of roadway impact fees for the purpose of encouraging small-scale infill redevelopment in McKinney’s Town Center (CC item #11-455).
• At the October 4th regular meeting, City Council tabled this item (CC item #11-136M) and requested additional data to be provided by Staff on the broader policy issue.
• At the November 1st work session, Staff presented the requested additional data (CC item #11-508). City Council provided additional feedback and requested Staff to compile some specific additional data on the broader policy issue.
• This item (CC item #11-136M2) was on the November 15th regular meeting agenda. However, because it was City Council’s preference to reach a decision on the broader policy issue prior to acting on this specific item, this item was tabled until the December 6th regular meeting.
• At the December 6th regular meeting, Staff is scheduled to present the specific additional data on the broader policy issue prior to the City Council’s consideration of this item.
BACKGROUND:
• Roadway impact fees and utility impact fees are imposed by the City on all "New Development“ in order to generate revenue for funding or recouping the capital costs of roadway and utility system improvements for each service area, which are necessitated by the new development in that service area for a period not to exceed 10 years.
• New Development is defined as any project "involving the subdivision of land and/or the construction, reconstruction, redevelopment, conversion, structural alteration, relocation, or enlargement of any structure, or any use or extension of the use of land which has the effect of increasing the requirements for capital improvements, measured by an increase in the number of service units to be generated by such activity, and which requires either the approval and filing with Collin County of a plat pursuant to the City's subdivision ordinance or the issuance of a building permit (or connection to the City's water or wastewater system)."
• The Roadway Impact Fee Ordinance allows for appeals as follows:
Sec. 130-113. Appeals.
(A) The property owner or applicant for development may appeal the following administrative decisions to the City Council:
1. The applicability of an impact fee to the new development;
2. The amount of the impact fee due;
3. The availability of, the amount of, or the expiration of an offset or a credit;
4. The application of an offset or credit against an impact fee due;
5. The amount of the impact fee in proportion to the benefit received by the new development; or
6. The amount of a refund due, if any.
(B) The appellant shall state the basis for the appeal in writing with particularity. The burden of proof shall be on the appellant to demonstrate that the amount of the fee or the amount of the offset or credit was not calculated according to the rules set forth in this ordinance or by administrative guidelines adopted by the City Council. The appellant shall submit any traffic study or other documents upon which he relies to the City with the request for appeal.
(C) The appellant must file a notice of appeal with the City Secretary within 30 days following the decision. If the notice of appeal is accompanied by a bond or other sufficient surety satisfactory to the City Attorney in an amount equal to the original determination of the impact fee due, the development application may be processed while the appeal is pending.
• Staff received the applicant’s request to appeal the roadway impact fees on August 30, 2011 (48 days past the 30-day requirement). However, Staff accepted the request and set a date for the item to be considered by City Council as soon as possible.