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AGENDA ITEM SUMMARY
REGULAR MEETING DATE: October 24,2007
AGENDA ITEM TITLE: AN ORDINANCE OF THE BOARD OF COUNTY
COMMISSIONERS OF PITKIN COUNTY, COLORADO.
AMENDING SECTION 8-30 OF THE PITKIN COUNTY LAND
USE CODE: REVISING THE EMPLOYEE HOUSING IMPACT
FEE FOR COMMERCIAL AND TOURIST/LODGE
ACCOMMODATION DEVELOPMENT AND LAND USE
STAFF RESPONSIBLE: John Ely. County Attorney
SUMMARY OF ISSUE: This is the first reading of an Ordinance of the Board of
County Commissioners of Pitkin County, Colorado amending Section 8-30 of the Pitkin
County Land Use Code by revising the Employee Housing Impact fee for commercial and
tourist/lodge accommodation development and land use.
BACKGROUND: At a joint meeting on August 21, 2007, the BaCC and the Pitkin
County Plarming & Zoning Commission discussed whether or not it would be advisable
to increase the percentage of the identified mitigation amount for the impact of
commercial and tourist/lodge accommodation development and land use. This discussion
came about because of the possibility of large-scale tourist/lodge accommodations being
built in the County outside of any existing municipal boundary, which was not foreseen at
the time the legislative mitigation level was adopted in 2005. A copy of the Agenda Item
Summary for the August 21, 2007 meeting setting forth the background into the issue is
attached.
The P&Z recommended eliminating the 1000 square foot exemption for commercial
development and increasing the commercial development impact fee to 100% of the
identified mitigation amount; increasing the impact fee to 100% of the identified
mitigation amount for development of standard tourist/lodge accommodation rooms in
excess of four (4); and increasing the impact fee for development of all luxury-style
tourist/lodge accommodation rooms to 100% of the identified mitigation amount.
RECOMMENDED ACTION: Approve on first reading and set for second reading
and public hearing on November 14, 2007 an Ordinance of the Board of County
Commissioners of Pitkin County, Colorado Amending Section 8-30 of the Pitkin County
Land Use Code; Revising the Employee Housing Impact Fee for Commercial &
Tourist/Lodge Accommodation Development and Land Use.
A TT ACHMENTS:
Proposed Ordinance
Proposed Amended Employee Housing Impact Fee
August 21, 2007 Agenda Item Summary wlo attachment
AN ORDINANCE OF THE BOARD OF COUNTY COMMISSIONERS OF
PITKIN COUNTY, COLORADO,
AMENDING SECTION 8-30 OF THE PITKIN COUNTY LAND USE CODE;
REVISING THE EMPLOYEE HOUSING IMPACT FEE FOR COMMERCIAL
AND TOURISTILODGE ACCOMMODATION DEVELOPMENT AND LAND
USE
ORDINANCE NO.
- 2007
Recitals
The Board of County Commissioners of Pitkin County, Colorado, makes the
following findings to support the adoption ofthese amendments to the Pitkin County
Land Use Code concerning revisions to the Employee Housing Impact Fee for
Commercial and Tourist/Lodge Accommodation development and land use.
I. Pursuant to its authority through Colorado Revised Statute ~~ 29-20-104
and 104.5, the Pitkin County Board of County Commissioners enacted an Employee
Housing Impact Fee on May 25, 2005 by Ordinance #023-2005.
2. The purpose of the Employee Housing Impact fee is to require applicable
development to pay to mitigate the impacts of development and land use to the employee
housing stock managed or controlled by Pitkin County or its designee the AspenlPitkin
County Housing Authority.
3. At the time the impact fee was adopted, the BOCC determined that based
on the identified impacts, commercial development in excess of 1000 square feet only
would pay an impact fee and that fee would only be 25% of the identified mitigation
amount. Lodge accommodations were placed on a schedule of25% of the mitigation fee
for standard-style rooms in excess of four (4) and 50% of the mitigation amount for all
luxury-style rooms.
4. The impact fee was initially kept low on these two types of development
because of the lack of any real lodging development foreseen for the County and the
desire to help small business persons trying to stay in the County and have their
companies grow.
5. Since time of adoption of the employee housing impact fee, the possibility
of large-scale tourist/lodge accommodations being built in the County outside of any
existing municipal boundary has presented itself.
6. At a joint meeting of the Board of County Commissioners and the Pitkin
County Plarming and Zoning Commission on August 21, 2007, the P&Z recommended
that as a result of the revised forecast for commercial and tourist/lodge accommodation
development and land use in Pitkin County, the following revisions be made to Section 8-
30 of the Land Use Code:
ORDINANCE # -2007
PAGE 2
(a) Increase the impact fee to 100% of the identified mitigation amount and
eliminate the 1000 square foot exemption for commercial development and land use;
(b) Increase the impact fee for development and land use of standard
tourist/lodge accommodation rooms in excess of four (4) to 100% of the identified
mitigation amount; and
(c) Increase the impact fee for development and land use of all luxury-style
tourist rooms to 100% of the identified mitigation amount.
7. The Board of County Commissioners finds that the immediate enactment
of this ordinance is in the best interest of the public health, safety and welfare of the
residents and property owners of Pitkin County and therefore, this ordinance shall
become effective immediately upon its adoption. This ordinance will not apply to
complete applications for building permits received on or before this date.
NOW THEREFORE BE IT ORDAINED by the Board of County
Commissioners of Pitkin County, Colorado that it hereby amends Section 8-30-1 O(c)(2)
and (3) and 8-30-40 of the Pitkin County Land Use Code, revising the employee housing
impact fee for commercial and tourist/lodge accommodation development and land use
by eliminating the 1000 square foot exemption for commercial development and
increasing the impact fee for commercial development and land use to 100% of the
identified mitigation amount; increasing tourist/lodge accommodation development of
standard rooms in excess offour (4) to 100% of the identified mitigation amount; and
increasing tourist/lodge accommodation development of all luxury-style rooms to 100%
of the identified mitigation amount. It is further ordained by the Board of County
Commissioners that this legislated fee schedule is a law of general applicability of Pitkin
County and as such is applicable to aU land in unincorporated Pitkin County.
INTRODUCED, FIRST READ AND SET FOR PUBLIC HEARING AT
THE REGULAR MEETING ON THE 24TH DAY OF OCTOBER 2007.
NOTICE OF PUBLIC HEARING PUBLISHED IN THE ASPEN TIMES
WEEKLY ON 4 TH DAY OF NOVEMBER 2007.
APPROVED AND ADOPTED AFTER SECOND READING AND PUBLIC
HEARING ON THE 14TH DAY OF NOVEMBER 2007.
PUBLISHED AFTER ADOPTION IN THE ASPEN TIMES WEEKLY ON
THE DAY OF 2007.
THIS ORDINANCE SHALL BECOME EFFECTIVE IMMEDIATELY AFTER
FINAL ADOPTION BY THE BOARD OF COUNTY COMMISSIONERS.
PROPOSED AMENDED
8-30: EMPLOYEE HOUSING IMPACT FEE
8-30-10: INTENT
(a) The purpose of the employee housing impact fee is to require the applicable development to
pay to mitigate the impacts of development and land use to the employee housing stock managed
or controlled by Pitkin County or its housing designee, the Aspen/Pitkin County Housing Authority
(APCHA). All provisions of this Chapter are self-executing and severable.
(b) The employee housing impact fee constitutes a law of general applicability of Pitkin County
and as such shall be applicable to all property in unincorporated Pitkin County.
(e) The impact fee shall be applicable to the following classifications of development and land
use in the following manner:
(1) RESIDENTIAL DEVELOPMENT AND LAND USE
Structures with five thousand seven hundred fifty (5,750) square feet or less of interior space,
as measured by the International Building Code (IBC), shall not be assessed an impact fee.
For residential structures over five thousand seven hundred fifty (5,750) square feet, one
hundred (100) percent of the impact shall be mitigated for the full size of the structure.
Multiple residential structures on one property shall be considered as one structure.
(2) COMMERCIAL DEVELOPMENT AND LAND USE
One thOl:JS31Hi (l,oeO) sC]lJare [-eel shall net be s\:Isjec:t to iRe impact fee. For struetl:lres ever one
tl'HlHsaml (1.999) sEj,l::lare feet, t'.veRt) five (25) l3ercent of tne impact shall be mitigated fer sRI)' tRat
amElHl1t of caAstruetioR or Hse tHat is jf! e:u:eS$ fit' 1999 square [-eet Elf iRterief sJ'lac€. SqlJare footage
sh.1I Be ae~"ea f.., t"is c.lc81.ti8" Ii)' tRe ilK One hundred percent (100%) of the impact fee
shall be mitigated for the full size of commcrcial construction.
(3) TOURIST/LODGE ACCOMMODATION DEVELOPMENT AND LAND USE
(a) Historic/Standard Rooms
T.....eAty live (25) One hundred percent (100%) of the impact shall be mitigated for all
rooms in excess of four (4).
(b) Luxury Rooms
Fifty (00) percont One hundred percent (100%) of the impact of this construction and
use shall be mitigated for all rooms.
(4) UNCLASSIFIED DEVELOPMENT OR LAND USE
Development or land use not fitting into the above described development or land use shall
be subject to the employee housing impact fee pursuant to Sec. 8-30-60.
(d) The employee housing impact fee shall be adjusted administratively once per year on the
anniversary date of the adoption of the current fee schedule to reflect inflation. The measure of
inflation shall be the annualized rate of inflation published in the Consumer Price Index
(Denver/Boulder/Greeley CPI-W) as established by the United States Bureau of Labor Statistics.
If this index should be discontinued, then reference will be to Denver/Boulder/Greeley CPI-U, and
If this is not available, then to CPI-W All Cities.
8-30-20:
PAYMENT OF EMPLOYEE HOUSING FEE
Procedures for payment of the Employee Housing Impact Fee are set forth in Chapter 2.
8-30-30:
IMPACT FEE FOR RESIDENTIAL DEVELOPMENT AND LAND
USE
(a) Impact Fee Formulas
The impact fee for residential development or land use will vary based upon the size of the
residential development. In no case shall an impact fee apply to properties improved with less
than five thousand seven hundred fifty (5,750) square feet of interior floor area as measured by
the IBC. The fee collected for residential construction shall reflect mitigation for second-home use
unless a covenant is recorded on the property restricting it to Pitkin County resident occupancy.
The formula to determine the fee amount for each specific residential development is as follows:
(1) FOR RESIDENTIAL DEVELOPMENT OF 9,000 SQUARE FEET OR LESS:
(a) Construction Employment for all Units = ([0.547' ( Unit FP' .001)] \ 40}
(b) Post-Construction Employment - Locally Occupied Unit = Exponent [ -4.67138 +
(0.000328' Unit FT' )]
(c) Post-Construction Employment - SecondNacation Home = Exponent [ -4.67138 +
(0.000328' Unit FP ) + 2.00514)
(d) Total Employees = Construction Employment + Post- Construction Employment
(e) Impact Fee = Total Employees. $34,173
(2) FOR UNITS OVER 9,000 SQUARE FEET:
(a) Add $1,141.67 per 1,000 square feet for locally occupied units
(b) Add $5,515.00 per 1,000 square feet for secondlvacation homes
(b) Examples
Even though it will be necessary to calculate the impact fee for each individual residential
development since each will vary in size, a schedule for specific sizes of residential development
that demonstrates employees generated, the affordable hOUSing units needed and the impact fee
is set down in Table 8.2.
Subsidy per Fee Subsl 100% Ta
Employee@100% Local Occupancy
Ta at
$34,173
$34 173
$34,173
$34,173
$34,173
$5,062
$6,412
$8,107
$10,282
$11,423
$19,772
$26,833
$36,457
$49,635
$55,150
8-30-40:
IMPACT FEE FOR COMMERCIAL DEVELOPMENT AND LAND
USE
The impact fee for commercial development or land use will vary based on size and type of
commercial development. In Ae 036e sRal1 an iA1paot fge apply ta tRe fi'6t ane tRausand (1,000)
square feet af iAterler space af ceR'1R'1ercial construction. ~~~3re fgeta~e klr tRis purpose is
de~ned by IRe \BC. The formula to determine the fee amount is:
(a) Number of Employees = Unit Size x Employee Generation
(b) Fee = Number of Employees x $8,543
(e) Employee Generation = Employee Generation Rate from Table 8-3 (Employee Generation for
Commercial Development).
TABLE 8.3: EMPLOYCES GCNH'A TED BY SIZE OF DEVELOPMENT
Office - General
Unit Size in sq. ft. No. of Employees Unit Size in sq. ft. No. of Employees
Generated Generated
1,000 4.5 10000 45
2,500 11.25 15.000 67.5
5,000 22.5 20 000 90
7,500 33.75
Office - Real Estate
Unit Size in sq. ft. No. of Employees Unit Size in sq. ft. No. of Employees
Generated Generated
1,000 5.9 10,000 59
2,500 14.75 15,000 88.5
5,000 29.5
7,500 44.25
Office - Non-Profrt
Unit Size in sq. ft. No. of Employees Unit Size in sq. ft. No. of Employees
Generated Generated
1,000 3.8 10,000 38
2,500 9.5 15,000 57
5,000 19 20,000 76
7500 28.5
Retail- Guest Market
Unit Size in sq. ft. No. of Employees Unit Size in sq. ft. No. of Employees
Generated Generated
1,000 2.9 10000 29
2,500 7.25 15,000 43.5
5,000 14.5 20,000 58
7,500 21.75 25,000 72.5
Service - Reoair Personal, Business
Unit Size in sq. ft. No. of Employees Unit Size in sq. ft. No. of Employees
Generated Generated
1,000 1.13 10,000 11.32
2,500 2.83 15,000 16.98
5,000 5.66 20,000 22.64
7,500 6.49 25,000 28.31
RestaurantlBar
Unit Size in sq. ft. No. of Employees Unit Size in sq. ft. No. of Employees
Generated Generated
1,000 7.4 10000 37
2,500 18.5 15,000 55.5
Government
Unit Size in sq. ft. No. of Employees Unit Size in sq. ft. No. of Employees
Generated Generated
1,000 3.9 10,000 39
2,500 9.75 15,000 56.5
5,000 19.5 20,000 78
7,500 29.25 25,000 97.5
8-30-50: IMPACT FEE FOR TOURIST ILODGE ACCOMMODATION
DEVELOPMENT AND LAND USE
(a) The impact fee for tourist Jlodge accommodation development or land use will vary based on
the number and type of rooms. There are two types of rooms, historic/standard and luxury.
(b) The impact fee for historic/standard touristJlodge accommodation development or land use
will apply for all rooms in excess of four (4).
(1) Number of Employees = Number of Rooms x Employee Generation Rate (0.3 employees
per number of rooms over 4)
(2) Fee = Number of Employees x $8,543
(e) The formula to determine the fee amount for luxury touristJlodge accommodation
development or land use is as follows:
(1) Number of Employees = Number of Rooms x Employee Generation Rate (1.1 employees per
room)
(2) Fee = Number of Employees x $17,087
8-30-60:
USE
IMPACT FEE FOR UNCLASSIFIED DEVELOPMENT AND LAND
The empioyee housing impact fee schedule is based upon three classes of development:
residential, commercial and touristJlodge accommodations. If the type of development proposed
is not specified as one of these three classes of development, the fee applicable shall be
calculated based upon the most comparable type of development and land use category
described above. If a property owner believes that there is no appropriate comparison between
the proposed development or land use and the three classes of development described above or
that the specific instance of proposed development would generate employees at a significantly
lower rate than indicated by the impact fee schedule, then the property owner may submit an
independent fee calculation study, as described in Section 800, to suggest an alternative impact
fee payment. Unclassified development and land use shall mitigate one hundred (100) percent of
the impact of its employee generation.
8-30-70:
OPTIONS TO DEFRAY THE PAYMENT OF IMPACT FEES
In order to mitigate the impacts of development upon the employee housing capital facilities, a
developer or property owner may be allowed to avoid full payment of the scheduled impact fee
through one or a combination of the following events. These events shall include and be limited to
the construction of deed restricted employee housing, the acquisition and deed restriction of
existing residential housing units, or the dedication of real property to Pitkin County that will be
used for the construction of employee housing. In no event shall the exercise of any of these
three options cause a developer or property owner to exceed the impact fee schedule with the
value of any construction, acqUisition or dedication. The decision of whether or not to accept an
offered alternative to full payment of the impact fee is a discretionary decision of the Board of
County Commissioners. The Board of County Commissioners may accept or reject such offer
based upon any reasonable consideration including, but not limited to any of the following: the
type and location of the development to be mitigated; location of the property that is offered; the
physical condition of the offered property; the ability to utilize the property in the employee housing
program; the need for the type of property offered.
(a) Construction Requirements for Employee Housing Units
Any employee housing units developed in lieu of payment of a full impact fee shall meet the
following guidelines:
(1) All construction must comply with all regulations and required permits of the Pitkin County
Code.
(2) Size and materials used in the construction of employee housing shall be specifically approved
by either the Board of County Commissioners or its housing designee, the Aspen/Pitkin County
Housing Authority. All employee housing units constructed shall be ready for occupancy prior to
the issuance of a Certificate of Occupancy for the free-market development for which the deed
restricted housing is in mitigation.
(3) A deed restriction to be recorded against the property shall be reviewed and accepted by the
Board of County Commissioners and its County Attorney prior to acceptance of the unit for
mitigation of development impacts and/or prior to issuance of a building permit for the unit.
(b) Requirements for Converted/Deed Restricted Units
Free-market units acquired in lieu of full payment of the scheduled impact fee shall meet the
following requirements:
(1) All units must be specifically approved for mitigation by the Board of County
Commissioners or its housing designee, the Aspen/Pitkin County Housing Authority. The
grant of this acceptance will be based upon the location of the units and the physical quality
of the housing units.
(2) The acquired and restricted units shall be ready for occupancy before the issuance of a
Certificate of Occupancy for the constructed free-market development whose impact the
deed restricted units mitigate.
(3) Prior to acceptance, the deed restriction recorded against the converted units shall be
approved by the Board of County Commissioners or its County Attorney.
(c) Dedication of Real Property
All real property proposed by a developer or property owner for dedication to Pitkin County in lieu
of full payment of the scheduled employee housing impact fee, shall be specifically accepted by
the Board of County Commissioners through enactment of a County ordinance. The Board of
County Commissioners may reject or accept any offered real property based upon any reasonable
consideration. Included in the criteria for consideration but not representative of all factors that
may be considered by the Board of County Commissioners in accepting a real property dedication
will be: the location of the property; the size of the property to accommodate development of
employee housing; the existing zoning of the property; the environmental, topographic and soils
condition of the offered property; and the presence of any infrastructure or utilities.
8-30-80: EXEMPTIONS AND CREDITS
(a) Exemptions from Payment of Scheduled Impact Fees
(1) EMPLOYEE HOUSING
No employee housing impact fee shall be imposed on the construction of deed restricted
employee housing as defined from time to time by the Board of County Commissioners or its
housing designee, the Aspen/Pitkin County Housing Authority.
(2) REPLACEMENT, RESTORATION OR REMODEL OF EXISTING UNITS
No employee housing impact fee shall be charged for replacement or restoration for an
improvement that was lost or damaged through fire, age or other event not precipitated by
the owner of the property. This exemption shall extend only so far as replacement or
restoration for the unit lost is being sought in its same location and at the same size and
configuration. No employee housing impact fee shall be charged for remodel construction
that does not increase the size of the residential structure. No exemption shall be recognized
for expansion of an existing structure.
(b) Credits
(1) PREVIOUS PA YMENT AND EXACTION
(a) Any fee imposed by this Chapter shall be subject to offset and reduced to reflect all
previous payments, exactions, dedications or other mitigation made in relation to the
proposed use and development.
(b) The value of any payment, exactions, dedications or other mitigation made to Pitkin
County shall be adjusted upward to refiect the present value not the value at the time of
the original payment, exaction or dedication. This upward adjustment shall be based
upon the annualized rate of infiation as published in the Consumer Price Index
(Denver/Boulder/Greeley CPI-W) as established by the United Stales Bureau of Labor
Statistics. If this index should be discontinued, then reference will be to
DenverlBoulder/Greeley CPI-U, and if this is not available, then to CPI-W All Cities.
(e) If the previous dedication, contribution or exaction was made as a part of a larger
approval, i.e., subdivision or PUD review process, then the previOUS contribution,
dedication or exaction shall be apportioned between all the properties of the approved
development for which the previous contribution, dedication or exaction was made.
(2) CHANGE IN USE
When the imposition of the employee housing impact fee is required due to a change in use,
credit shall be recognized for any legally established use.
AGENDA ITEM SUMMARY
PITKIN COUNTY JOINT MEETING OF THE BOCC AND PLANNING &
ZONING COMMISSION
SPECIAL MEETING DATE:
August 21,2007
AGENDA ITEM TITLE:
Employee Housing Impact Fee for Commercial and
Lodge Accommodation Development
STAFF RESPONSIBLE:
John Ely, County Attorney
BACKGROUND: In 2005, the County adopted the current employee housing impact
fee. The full employee housing fee legislation is attached hereto for reference.
The fee methodology and result was developed by Clarion Associates in
association with Dr. James Nicholas in 2004 following earlier efforts made in 2000, when
the BOCC determined not to establish an impact fee.
The study employed a Capital Improvement Plan approach. Currently, County
staff is looking at alternative methodologies, specifically the Current Service Standard
approach. The CIP approach considers the need for affordable dwelling units based on
employee generation. The CSS approach analyzes a present level of service represented
by the number of existing dwelling units compared to free market development.
The research methodology and legal theories are not the current topic for
discussion. Rather, the current topic is the legislative mitigation level adopted by the
Board of County Commissioners in 2004.
When the impact fee was adopted, the BOCC determined that based on the
identified impacts, residential development over 5750 square feet would pay 100% of the
identified mitigation fee. However, only commercial development in excess of 1000
square feet would pay an impact fee and that fee would only be 25% of the identified
mitigation amount. Lodge accommodations were placed on a schedule of 25% of the
mitigation fee for standard-style rooms in excess of four (4) and 50% of the mitigation
amount for all luxury-style rooms.
The determination of how much the identified fee should be assessed is a
legislative decision not dependent on what type of methodology or study is employed.
There is no suggestion to change the fee as it pertains to residential development.
However, because of the possibility ofIarge-scale tourist/lodge accommodations being
built in the County outside of any existing municipal boundary, it is advisable to revisit
the fee as it is imposed on lodge accommodations and commercial space.
The fee was initially kept low on these two types of development because of the
lack of any real lodging development foreseen for the County and the desire to help small
business persons trying to stay in the County and have their companies grow. These
decisions were done contemporaneously with the Obermeyer development in the City of
Aspen.
RECOMMENDED ACTION: Discuss whether or not it is advisable to increase the
percentage of the mitigation impact fee required regarding commercial development and
lodge accommodation development.
ATTACHMENT:
Employee Housing Impact Fee Legislation