Proposed Development Fees. Hendersonville, TN January 14, 2018

Transcription

1 Proposed Development Fees Hendersonville, TN January 14, 2018

2 o Impact fees o Fiscal impact analysis o Economic impact analysis o Infrastructure finance o Market feasibility 2

3 Impact Fee Fundamentals o One-time payment for growth-related infrastructure, usually collected at the time buildings permits are issued o Can t be used for operations, maintenance, or replacement o Not a tax but more like a contractual arrangement to build infrastructure, with three requirements Need (system improvements, not project-level improvements) Benefit o o Short range expenditures Geographic service areas and/or benefit districts Proportionate 3

4 Impact Fee Methods o Cost Recovery (past) Oversized and unique facilities Funds typically used for debt service o Incremental Expansion (present) Formula-based approach documents level of service with both quantitative and qualitative measures o Plan-Based (future) Common for utilities but can also be used for other public facilities with non-impact fee funding 4

5 Evaluate Need for Credits o Site specific Developer constructs a capital facility included in fee calculations o Debt service Avoid double payment due to existing or future bonds o Dedicated revenues Property tax, local option sales tax, gas tax 5

6 Ten-Year Projections Summary o Residential: Population increase of 10,852 persons Increase of 3,250 single family housing units Increase of 1,139 multi-family housing units o Nonresidential: Employment increase of 3,707 jobs Increase of 1.46 million square feet of nonresidential floor area 6

7 Parks and Recreation Facilities

8 Methodology and Components o Consumption-based approach o Citywide service area o Components Park Amenities No land component no anticipated park land acquisition 8

9 Park Amenities Need Park Level-of-Service Standards Level-of-Service Demand Unit Unit Cost Amenities per Person $10,155 Growth-Related Need for Park Amenities Year Population Park Amenities Base ,084 3,478 Year ,152 3,543 Year ,224 3,608 Year ,299 3,674 Year ,379 3,740 Year ,463 3,806 Year ,550 3,872 Year ,640 3,938 Year ,735 4,005 Year ,834 4,072 Year ,936 4,139 Ten-Year Increase 10, Growth-Related Expenditure $6,712,153 9

10 Proposed Park Fees Fee Cost per Component Person Park Amenities $ Fee Study $1.95 TOTAL $ Residential (per household) Type of Household Persons per Housing Unit Proposed Fee Single-Family 2.74 $1,699 Multi-Family 1.72 $1,066 10

11 Police Facilities

12 Methodology and Components o Consumption-based approach o Citywide service area o Components Police space Police vehicles and equipment 12

13 Police Need Police Level-of-Service Standards Level-of-Service Demand Unit Residential per Person Square Feet Nonresidential per Vehicle Trip Residential Vehicles and per Person Nonresidential Equipment per Vehicle Trip Unit Cost $ $56, Police Growth-Related Needs Year Population Nonres. Vehicles & Facility Sq. Ft. Vehicle Trips Equipment Base ,084 52,775 29, Year ,152 53,856 29, Year ,224 54,959 30, Year ,299 56,087 31, Year ,379 57,238 31, Year ,463 58,414 32, Year ,550 59,616 32, Year ,640 60,843 33, Year ,735 62,097 33, Year ,834 63,378 34, Year ,936 64,687 35, Ten-Year Increase 10,852 11,911 5, Total Cost Growth-Related Expenditures $1,225,344 $1,288,841 $2,514,185 13

14 Proposed Police Fees Fee Cost Cost per Component per Person Vehicle Trip Police Facilities $83.36 $26.93 Vehicles & Equipment $86.93 $28.08 Fee Study $1.00 $0.28 TOTAL: $ $55.29 Residential (per housing unit) Type of Household Persons per Proposed Housing Unit Fee Single Family 2.74 $469 Multi-Family 1.72 $294 Nonresidential (per 1,000 square feet) Type Trip Ends per Trip Rate Proposed 1,000 Sq. Ft. Adjustment Fee Industrial % $137 Commercial/Retail % $689 Office & Institutional % $269 14

15 Fire Facilities

16 Methodology and Components o Consumption-based approach o Citywide service area o Components Fire station space Apparatus 16

17 Fire Need Fire Facility Level-of-Service Standards Level-of-Service Demand Unit Unit Cost Residential per Person Square Feet Nonresidential per Vehicle Trip Residential per Person Units Nonresidential per Vehicle Trip $330 $247,430 Growth-Related Need for Fire Facilities Year Population Nonres. Vehicle Trips Station Sq. Ft. Apparatus Base ,084 52,775 43, Year ,152 53,856 44, Year ,224 54,959 45, Year ,299 56,087 46, Year ,379 57,238 46, Year ,463 58,414 47, Year ,550 59,616 48, Year ,640 60,843 49, Year ,735 62,097 50, Year ,834 63,378 51, Year ,936 64,687 52, Ten-Year Increase 10,852 11,911 8, Total Cost Growth-Related Expenditures $2,846,250 $1,509,323 $4,355,573 17

18 Proposed Fire Fees Fee Cost Cost per Component per Person Vehicle Trip Facilities $ $62.47 Vehicles $ $33.43 Fee Study $1.64 $0.47 TOTAL $ $96.37 Residential (per housing unit) Type of Household Persons per Proposed Housing Unit Fee Single Family 2.74 $818 Multi-Family 1.72 $513 Nonresidential (per 1,000 square feet) Type Trip Ends per Trip Rate Proposed 1,000 Sq. Ft. Adjustment Fee Industrial % $239 Commercial/Retail % $1,201 Office & Institutional % $469 18

19 Transportation Facilities

20 Methodology and Components o Hybrid Consumption/plan-based approach o Citywide service area o Components Arterial roads 20

21 Planned Road Improvements Improvement Rockland Road Widening Walton Ferry / Old Shackle Island Rd Improvements Sanders Ferry / Drakes Creek Bike Path Indian Lake Rd Widening Drakes Creek Rd Widening Saundersville Rd Local Interstate Connector Total Growth-Related Cost $9,166, Year Vehicle Trip Increase 36,602 Average Cost per Vehicle Trip $ Lane Miles Total Project Local Funds Cost Required 1.50 $4,683,500 $936, $12,678,123 $2,535, $3,414,100 $682, $8,000,000 $1,500, $2,700,000 $511, $5,000,000 $3,000, $36,475,723 $9,166,345 These are potential projects for which to use the development fees. Also used to derive weighted average cost per lane mile for the fee calculation. 21

22 Proposed Roads Fees Cost Factors per Vehicle Trip End Capital Improvements $ Fee Study $1.17 Net Capital Cost per Vehicle Trip $ Development Type Avg Wkdy Vehicle Trip Ends Trip Rate Adjustment Proposed Fee Residential (per Housing Unit) Single Family Units % $1,503 Multi-family Units % $1,165 Nonresidential (per 1,000 Sq. Ft. of Floor Area) Industrial % $624 Commercial % $3,134 Office & Institutional % $1,225 22

23 Projected Roads Revenue Infrastructure Costs for Transportation Planned Improvements Impact Fee Study Total Expenditures Growth Cost $9,166,345 Projected Transportation Impact Fee Revenue $20,953 Office & Single-Family Multi-Family Industrial Commercial $9,187,298 Institutional $1,503 $1,165 $624 $3,134 $1,225 per Unit per Unit per KSF per KSF per KSF Year Housing Units Housing Units KSF KSF KSF Base ,422 5,469 2,078 2,807 2, ,747 5,573 2,092 2,868 2, ,072 5,679 2,106 2,931 2, ,397 5,787 2,120 2,995 2, ,722 5,898 2,134 2,134 2, ,047 6,011 2,148 3,128 2, ,372 6,126 2,162 3,197 2, ,697 6,243 2,177 3,267 3, ,022 6,362 2,191 3,338 3, ,347 6,484 2,206 3,412 3, ,672 6,608 2,220 3,486 3, year Increase 3,250 1, Projected Revenue $4,884,750 $1,326,935 $88,608 $2,129,868 $777,683 Total Projected Revenue Surplus / (Deficit) $9,207,844 $20,546 23

24 Fee Summary Residential Impact Fees (per Housing Unit) Type Fire Police Parks and Proposed Roads Recreation Fee Single-Family $818 $469 $1,699 $1,503 $4,489 Multi-Family $513 $294 $1,066 $1,165 $3,038 Nonresidential Impact Fees (per 1,000 Square Feet) Type Fire Police Parks and Proposed Roads Recreation Fee Industrial $239 $137 $0 $624 $1,000 Commercial $1,201 $689 $0 $3,134 $5,023 Office/Institutional $469 $269 $0 $1,225 $1,964 24

25 Fee Comparison - Smyrna Residential Impact Fees (per Housing Unit) Type Police & Parks Roads Total Fee Proposed Difference Fire Fee Single-Family $419 $722 $1,567 $2,708 $4,489 $1,781 Multi-Family $343 $589 $892 $1,824 $3,038 $1,214 Residential Impact Fees (per 1,000 Square Feet) Type Police & Parks Roads Total Fee Proposed Difference Fire Fee Industrial $284 $0 $1,495 $1,779 $1,000 ($779) Commercial $942 $0 $1,712 $2,654 $5,023 $2,369 Office/Institutional $594 $0 $2,435 $3,029 $1,964 ($1,065) 25

26 Fee Comparison - Franklin Residential Impact Fees (per Housing Unit) Type Parks Schools Roads Total Fee Proposed Fee Difference Single-Family (2,500 Sq. Ft.) Land ILO fee $2,993 $8,251 $11,244 $4,489 ($6,755) Multi-Family (< 1,400 Sq. Ft.) Land ILO fee $1,145 $5,233 $6,378 $3,038 ($3,340) Residential Impact Fees (per 1,000 Square Feet) Type Parks Schools Roads Total Fee Proposed Fee Difference Industrial (Manufacturing) $0 $0 $3,419 $3,419 $1,000 ($2,419) Commercial (Restaurant) $0 $0 $20,255 $20,255 $5,023 ($15,232) Office/Institutional $0 $0 $7,802 $7,802 $1,964 ($5,838) 26

27 Fee Comparison White House Residential Impact Fees (per Housing Unit) Type Police Fire Parks Roads Total Fee Proposed Fee Difference Single-Family $282 $186 $396 $381 $1,245 $4,489 $3,244 Multi-Family $174 $115 $245 $258 $792 $3,038 $2,246 Residential Impact Fees (per 1,000 Square Feet) Type Police Fire Parks Roads Total Fee Proposed Fee Difference Industrial $180 $119 $0 $278 $577 $1,000 $423 Commercial (Restaurant) $806 $532 $0 $3,845 $5,183 $5,023 ($160) Office/Institutional $374 $247 $0 $929 $1,550 $1,964 $414 27

28 Implementation Considerations Components o Full adoption versus phase-in o Ordinance Timing of collection (permit or Certificate of Occupancy Independent fee calculations Teardowns/reuse of property o Cash flow Tennessee has liberal interpretation of vesting Not clear at this point how many new units would pay the impact fees 28