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2024-12 Code Amendment - Impact FeesORDINANCE NO.2024-12 AN ORDINANCE OF THE VILLAGE COUNCIL OF THE VILLAGE OF NORTH PALM BEACH, FLORIDA, AMENDING CHAPTER 6, `BUILDINGS AND BUILDING REGULATIONS," OF THE VILLAGE CODE OF ORDINANCES BY ADOPTING A NEW ARTICLE VI, "IMPACT FEES;" PROVIDING FOR AN INTENT AND PURPOSE; PROVIDING FOR LEGISLATIVE FINDINGS; PROVIDING FOR DEFINITIONS; PROVIDING FOR THE IMPOSITION OF IMPACT FEES; PROVIDING FOR THE ESTABLISHMENT OF TRUST FUNDS; PROVIDING FOR THE USE OF FUNDS COLLECTED, ACCOUNTING, AND REPORTING; PROVIDING FOR CREDITS; PROVIDING FOR REFUNDS; PROVIDING FOR CODIFICATION; PROVIDING FOR SEVERABILITY; PROVIDING FOR CONFLICTS; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, Section 166.021, Florida Statutes, grants the Village the governmental, corporate, and proprietary power to enable it to conduct municipal government, perform municipal functions, render municipal services, and exercise any power for a municipal purpose except when expressly prohibited by law; and WHEREAS, Section 163.3181, Florida Statutes, recognizes that impact fees are an important source of revenue for a municipality to use in funding the infrastructure necessitated by new growth and are an outgrowth of the home rule power of a municipality to provide certain services within its jurisdiction; and WHEREAS, the Village Council wishes to impose impact fees on new development that are proportional and reasonably connected to, or have a rational nexus with, the need for additional capital facilities and the increased impact generated by new residential or non-residential construction; and WHEREAS, the Village Council determines that adoption of this Ordinance is in the best interests of the health, safety and welfare of the Village and its residents. NOW, THEREFORE, BE IT ORDAINED BY THE VILLAGE COUNCIL OF THE VILLAGE OF NORTH PALM BEACH, FLORIDA as follows: Section 1. The foregoing recitals are ratified as true and correct and are incorporated herein. Section 2. The Village Council hereby amends Chapter 6, "Buildings and Building Regulations," by adopting a new Article VI, "Impact Fees," to read as follows (additional language underlined): ARTICLE VI. IMPACT FEES Sec. 6-121. Intent and purpose. The intent and purpose of these impact fee procedures are: Page 1 of 10 Lq� To establish uniform procedures for the imposition, calculation collection, expenditure, and administration of impact fees imposed on new development; To implement the goals, objectives, and policies of the village's comprehensive plan relating to assuring that new development contributes its fair share towards the costs of public facilities reasonably necessitated by new development; Uc� To ensure that new development is reasonably benefited bythe provision of public facilities provided with the proceeds of impact fees; and O To ensure that all applicable legal standards and criteria are properly incorporated in these procedures. See. 6-122. Legislative findings. The village council finds, determines, and declares that: Lal In order to maintain current level of service standards for parks and recreation, public safety services (police and fire rescue), library services, solid waste services, and government services, the village must ensure that new development may be accommodated without decreasing current level of service standards. The State of Florida, through the enactment of Section 163.31801, Florida Statutes, finds that impact fees are an important source of revenue for a local government to use in funding the infrastructure necessitated by new growth and that impact fees are an outgrowth of the home rule power of a local government to provide certain services within its jurisdiction. O The imposition of impact fees is one of the preferred methods of ensuring that new development bears a proportionate share of the cost of capital facilities necessary to accommodate such development. Allocation of a proportionate share of costs promotes and protects the public health, safety,general welfare of the residents of the village. Each of the types of land uses described in the schedule of impact fees set forth below shall create demands for the acquisition of, or expansion of, municipal services facilities and the construction of municipal services capital improvements. U The report entitled "Impact Fee Study", dated July 2024 by Walter H. Keller of Marlin Engineering, Inc. sets forth a reasonable Page 2 of 10 methodology and analysis for the determination of the impact of new development on the need for and costs of additional municipal services capital facilities in the village and is based on the most recent and localized data. �f The impact fees set forth in this article are proportional and reasonably connected to, or have a rational nexus with, the need for additional capital facilities and the increased impact generated by new residential or non-residential construction. Sec. 6-123. Authority. The village council is authorized to enact this section pursuant to Article VIII, Section 2(b) of the Florida Constitution and Sections 166.021 and 163.31801, Florida Statutes. Sec. 6-124. Definitions. The following words, terms, and phrases, when used in this article, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning: Applicant means any person or entity who seeks to develop land within the village by pplying for a building permit for impact -generating land development. Director means the community development director or other village employee designated by the director to review applications for building permits that require impact fee payments pursuant to this article. Impact-i-eneratin- land development is land development designed or intended to permit a use of the land that will contain more dwelling units or floor space than the existing use of the land in a manner that increases the demand for parks and recreation, public safety services police and fire rescue), library services, solid waste services, and government services. Sec. 6-125. Imposition of impact fees. (a) Any person who applies for the issuance of a buildingpermit for an impact -generating land development shall be required to pay impact fees in the manner and amounts set forth in this section. No building permit for any impact - generating development requiring payment of impact fees pursuant to this article shall be issued unless and until the impact fees hereby required have been paid either concurrently with or subsequent to the filing of a complete building permit application. (b) No extension of a building permit issued after the adoption of this article for any impact -generating land development shall be granted unless and until the impact fees required by this article have been paid. In the event a building Page 3 of 10 permit is amended after issuance, the applicant shall pay the applicable impact fees in effect at the time the amended building permit is issued with credit being given for any previous fees paid. (c) The impact fees due shall be determined by usingthe he applicable fee schedule below: Description Unit Park and Recreation Public Safety Library Solid Waste Governmental Services Single Family Dwelling DU $1,175.38 $ 977.40 $1,060.39 $328.32 $700.34 Multi -Family Dwelling DU $1,094.78 $ 599.33 $ 660.22 $201.32 $429.44 Hotel/Motel KSF/Room* $1,036.25 $1,268.69 - $190.56 $485.62 Commercial Retail KSF - $1,268.69 - $322.15 $510.74 Commercial Office KSF - $1,268.69 - $322.15 $606.35 Medical Office KSF - $2,222.60 - $322.15 $606.35 Warehouse — General KSF - $1,268.69 - $322.15 $278.73 Industrial Places of Worship KSF - $1,209.78 - $322.15 $615.27 Nursing Homes — ALF's KSFBed** _ $2,222.60 $ 408.94 $322.15 $615.27 Hospitals KSF - $2,222.60 - $322.15 $615.27 Schools KSF - $1,209.78 - $322.15 $345.99 Governmental Buildings KSF - $1,209.78 - $322.15 $615.27 Parks and Open Space KSF/Acre*** _ $1,422.04 _ $987.10 $395.95 Notes: KSF is per one thousand (1,000) square feet of floor area. *Hotel/Motel — imDact fees are calculated Der room excent the Public Safetv impact fee is calculated per KSF. * *Nursinp- Homes — ALF's — impact fees are calculated per KSF except the Library impact fee is calculated by bed. ***Parks and Open Space — impact fees are calculated per KSF except the Solid Waste impact fee is calculated by acreage. d) The director shall determine the annronriate land use cateaory or categories for the proposed development. The determination shall be based on the categories listed in the fee schedule and the proposed primary use of the site. In the event the building �permit covers multiple primary uses, the fees for each primary use shall be calculated separately and summed. If the type of development activity that a building permit is applied for is not specified in the impact fee table above. the director shall use the impact fee annlicable to the most nearlv comparable type of land use specified. e) If a development involves the replacement. expansion. and/or change of use related to an existing development, the impact fees due shall be determined by the difference between the fees that would otherwise have been due for the most recent use of the existinii site and the fees for the nrobosed development or redevelopment. Page 4 of 10 Sec. 6-126. Establishment of trust funds. (a) The impact fees collected by the village pursuant to this article shall be kept in separate accounts for each fee type and separate from other revenue of the village. (b) Funds withdrawn from these accounts must be used solely in accordance with the provisions of this article. The disbursal of funds shall require the approval of the village council, upon recommendation of the village manager. (c) Funds in these accounts shall be deemed to have been expended on a first -in, first -out basis. Sec. 6-127. Use of funds collected; accounting and reporting. (a) The funds collected by reason of the establishment of the park and recreation impact fee in accordance with this article shall be used solely for the purpose of administering, planning, acquiring, expanding, and developing park facilities and recreation open space, as well as the acquisition of additional land and amenities for public park and recreation purposes. (b) The funds collected by reason of the establishment of the public safety services impact fee in accordance with this article shall be used solely for the purpose of acquiring, equipping, and/or making capital improvements to village public safety facilities, including the acquisition of police department, fire department, and emergency medical services vehicles. (c) The funds collected by reason of the establishment of the library services impact fee in accordance with this article shall be used solely for the purpose of acquiring, equipping, and/or making capital improvements to village library facilities. The funds collected by reason of the establishment of the solid waste services impact fee in accordance with this article shall be used solely for the purpose of acquiring, equipping, and/or making capital improvements to the village's sanitation collection and administrative facilities, including the acquisition of sanitation vehicles with a life expectancy of over five (5) years. (e) The funds collected by reason of the establishment of the government services impact fee in accordance with this article shall be used solely for the purpose of administering, planning, acquiring, expanding, and developing additional land, facilities, vehicles, and equipment for general government facilities. All vehicles and equipment shall have a life expectancy of over five (5) years. (f) Funds collected by reason of the establishment of the park and recreation, public safety services, library services, solid waste services, and government services impact fees may be used for related land acquisition, land Page 5 of 10 improvement, design, engineering, and permittingcosts, however, that they shall not be used for maintenance, rehabilitation, repair, or replacement of existing facilities. (g) Any funds on deposit not immediately necessary for expenditure shall be invested in interest-bearing accounts, and all income derived from the funds shall remain in the account. (h) In the event that bonds or similar debt instruments are issued for advanced provision of capital facilities for which impact fees ma_y be expended, impact fees may be used to pay debt service on such bonds or similar debt instruments to the extent the facilities are of the type authorized by this article. (i) The village shall be entitled to retain up to three percent (3%) of the fees collected to offset the actual administrative costs associated with the collection and use of said funds pursuant to this article. (i) The village shall provide an accountingand nd reporting of impact fee collections and expenditures in a separate accounting fund. Audits of financial statements of the village must include an affidavit signed by the chief financial officer of the village stating that the village has complied with Section 163.31801, Florida Statutes. Sec. 6-128. Developer credits. (a) General. (1) Any person who shall initiate any impact -generating land development may apply for a credit against any impact fee assessed pursuant to this part for any contribution, payment, construction, or dedication of land accepted and received by the village for those capital facilities. (2) Credit for contributions, payments, construction, or dedications against one type of impact fee shall not be transferable to another type of impact fee. Credits shall be transferable between developments within the village. Credit shall be in an amount equal to the estimated fair market value of the land dedication or improvement at the time of the application, or the value of the contribution or payment at the time it is made. (4) The village shall enter into a capital contribution front - ending agreement with any person who proposes or is required to dedicate or construct impact fee -eligible improvements. Page 6 of 10 (b) Credit agreement procedures. (1) The determination of any credit shall be undertaken through the submission of an application that includes a draft capital contribution front -ending agreement, which shall be submitted to the director. (2) If the proposed application involves credit for the dedication of land, the application agreement shall include the following information: a drawing and legal description of the land; the appraised fair market value of the land at the date a building_ permit is proposed to be issued for the impact - generating land development, prepared by professional real estate appraiser; and if applicable, a certified copy of the development order in which the land was agreed to be dedicated. (3) If the proposed application involves construction, the application shall include the proposed plan of the specific construction prepared and certified by a duly qualified and licensed Florida engineer or contractor; and the estimated cost of the proposed improvement, which shall be based on local information for similar improvements, along with the construction timetable for the completion thereof. Such estimated cost shall include the cost of construction or reconstruction, the cost of all labor and materials, the cost of all lands, property, rights, easements and franchises acquired, financing charges, interest prior to and during construction and for one year after completion of construction, cost of plans and specifications, surveys of estimates of costs and of revenues, cost of professional services, and all other expenses necessary or incident to determining the feasibilitypracticability of such construction or reconstruction. 4) If the proposed application involves a credit for anv other contribution or payment, the application shall include a certified copy of the development order in which the contribution or payment was agreed; if payment has been made, proof of payment; or if payment has not been made, the proposed method of payment. 5) Within fourteen (14) days of receipt of the bronosed application for credit agreement, the director shall determine if the application is complete. If it is determined that the proposed application is not complete, the director shall mail a written statement to the applicant outlining the deficiencies. No further action shall be taken on the proposed Page 7 of 10 application until all deficiencies have been corrected or otherwise settled. (6) Within forty-five 45Lys after an application for credit is determined complete, the director shall review the application and determine if it meets the standards set forth in this section. If the application for credit agreement meets the standards set forth in this section, a capital contribution front -ending agreement shall be prepared and presented to the village council for consideration. It shall specifically outline the contribution, payment, construction, or land dedication; the time by which it shall be completed, dedicated, or paid, and any extensions thereof, and the dollar credit the applicant shall receive for the contribution, payment, or construction. (c) Use of credits. Credits may be used by the credit holder to reduce impact fees that would otherwise be due from any development project within the village. The dollar value of the credits to be used shall be inflated or reduced by the same percentage by which the fee for the land use for which the credits shall be used has changed since the date of the credit agreement. Any credit amount not used within ten (10) ,years of the date of the credit agreement shall expire and be of no further value. See. 6-129. Refunds. If it is determined by the village that fee assessments collected pursuant to this article have not been spent or encumbered for expenditure by the end of the calendar quarter immediately following ten (10) years from the date that the fee was received, or if the land uses for which the fees were paid were never begun, then said funds shall be eligible for refund to the then -present owner in accordance with the following procedures: (a) The then -present owner must petition the village council for the refund within one year following the end of the calendar quarter immediately following ten 10) years from the date on which the fee was received by the village. (b) The petition must be submitted to the director and must contain: (1) A notarized sworn statement that the petitioner is the current owner of the development site, (2) A copy of the dated receipt issued for payment of the fee; (3) A certified copy of the latest recorded deed; A copy of the most recent ad valorem tax bill: and Page 8 of 10 (5) Such other information which may be reasonably necessary to ascertain current ownership of the development site. (c) Within sixty (60) days from the date of receipt of petition for refund, the director shall advise the petitioner and the village council of the determination of whether the fee requested for refund remains in the trust fund and has been there for ten (10) years. For the purpose of determining whether fees have been spent or encumbered_, the first money placed in a trust fund account shall be deemed to be the first money taken out of that account when withdrawals have been made. (d) If the money requested for refund is still in the trust fund account and has not been spent or encumbered by the end of the calendar quarter immediately following ten (10) years from the date the fees were paid, the money shall be returned. (e) In the event that the building permit for which impact fees were paid has expired without opportunity for renewal and the permitted development has not begun, the entitypaid the fee may request a refund b fig an application for refund within ninety 90) days of the final expiration of the permit. The application shall contain a copy of the applicable development permit and evidence that the permit has expired and that the permitted development was not begun. The director shall review the application and make a written determination of whether it meets the standards of this subsection within thirty (30) days. If the determination is affirmative, the director shall cause the refund to be issued for ninety-seven percent (97%) of the original impact fee payment to the entity that paid the impact fee. Sec. 6-130. Appeals of impact fee determinations. (a) Any persons desiring to appeal the decision of the director regarding the assessment of an impact fee or a refund shall file with the village clerk a written notice of appeal to the village council within ten (10) days of the decision by the director. b) The notice of appeal shall include a full exnlanation of the reasons for the appeal, specifying the grounds therefor and containing any documentation which the applicant desires to be considered. The appeal shall contain the name and address of the person filingthe and shall state his/her capacity to act as a representative or anent if he/she is not the owner of the nronertv to which the impact fees pertain. C) The villaae clerk shall schedule the appeal for the first village council meeting following_ thirty (30) days from receipt of the written notice of appeal to the village council. Postponement of the appeal date maygranted by the village clerk if a postponement is requested by either the applicant or the director in writina at least ten (10) days in advance of the scheduled villaae council meeting date. Page 9 of 10 (d) The applicant and the director shall each beivg en opportunity to make oral presentations before the village council. (e) The village council, after hearing, shall have the power to affirm or reverse the decision of the director. In making its decision, the village council shall make written findings of fact and conclusions of law, and apply the standards in this part. If the village council reverses the decision of the director, it shall instruct the director to determine the outcome in accordance with its findings. In no case shall the village council have the authorityto negotiate the amount of the fee, refund the fee, or waive the fee. The decision of the village council shall be final and not subject to further administrative appeal. Section 3. The provisions of this Ordinance shall become and be made a part of the Code of the Village of North Palm Beach, Florida. Section 4. If any section, paragraph, sentence, clause, phrase, or word of this Ordinance is for any reason held by a court of competent jurisdiction to be unconstitutional, inoperative, or void, such holding shall not affect the remainder of this Ordinance. Section 5. All ordinances or parts of ordinances and resolutions or parts of resolutions in conflict herewith are hereby repealed to the extent of such conflict. Section 6. This Ordinance shall take effect ninety (90) days after adoption. Impact fees shall not apply to current or pending building permits submitted prior to the effective date. PLACED ON FIRST READING THIS 8TH DAY OF AUGUST, 2024. PLACED ON SECOND, FINAL READING AND PASSED THIS 22M DAY OF AUGUST, 2024. APPROVED AS TO FORM AN LEGAL SUFFICIENCY: VILLAGE ATTORNEY l Page 10 of 10 MAYOR