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Item #11 Temporary Deferral of Road Impact Fee (First Reading of Ordinance) the C of Good Li COE r AGENDA ITEM STAFF REPORT Meeting Date: December 4, 2012 Item # / Reviewed By: Contact Name: Michael Rumer Department Director: Contact Number: 407 - 905 - 3100/1018 City Manager: Subject: PROPOSED CODE AMENDMENT EXTENDING THE SUNSET DATE OF THE TEMPORARY DEFERRAL OF ROAD IMPACT FEE PAYMENTS TO CERTIFICATE OF OCCUPANCY OR PRE - POWER, PROVIDING FOR AN ADDITIONAL ONE YEAR EXTENSION ON PAYMENT OF ROAD IMPACT FEES, PROVIDING FOR THE TEMPORARY TWENTY -FIVE PERCENT (25 %) REDUCTION OF ROAD IMPACT FEES, AND A TEMPORARY FIFTY PERCENT (50 %) REDUCTION IN RECREATIONAL PARK, FIRE, AND POLICE IMPACT FEES TO JANUARY 1, 2014. BACKGROUND SUMMARY: The City passed economic incentives for new construction earlier this year that are by ordinance set to expire in January 2013. The incentives included reducing impact fees for police, fire, recreational park, and transportation. Other incentives included the deferral of transportation impact fee payments until Certificate of Occupancy, and the waiving of the fire plan review fee, which is 1 /2 of one percent of the cost of construction. With the economic conditions still in the state of flux as they were with the original passage of the economic incentives, and to remain consistent with surrounding local government agencies, staff is proposing to extend all but one of the incentives for one additional year. Staff is not proposing to extend the waiving of the fire plan review fee which will reinstate the fee. The reduction of impact fees has generated a lot of interest from the development community. Several projects such as the Brynmar and Arden Park subdivisions came to fruition do to the reduced fees. While most of the development projects were inevitably going to go forward at some point in the City, staff has received feedback that the reduced impact fees provided a catalyst for moving forward. Specific projects that expressed the impact fee reductions are the Casa Mirella apartments, McDonalds on Ocoee Apopka Road, Ocoee Commerce Retail Store (Dollar General), Arden Park PUD, Brynmar subdivision, and the Park Place Apartments that were denied at the rezoning level. ISSUE: Should the Honorable Mayor and City Commissioners approve an Amendment to the City of Ocoee Code which will (i) include an extension of the Temporary Deferral of Road Impact Fee Payments from January 1, 2013, to January 1, 2014, (ii) provide a temporary twenty -five percent (25 %) reduction of road impact fees until January 1, 2014, and (iii) provide a temporary fifty percent (50 %) reduction of recreational park, fire, and police impact fees until January 1, 2014? STAFF RECOMMENDATION: Staff recommends that the Mayor and City Commissioners approve Amending the City of Ocoee Code of Ordinances to (i) include an extension of the Temporary Deferral of Road Impact Fee Payments from January 1, 2013, to January 1, 2014, (ii) provide a temporary twenty -five percent (25 %) reduction of road impact fees until January 1, 2014, and (iii) provide a temporary fifty percent (50 %) reduction of recreational park, fire, and police impact fees until January 1, 2014. Attachments: Ordinance Financial Impact: None. Type of Item: (please mark with an "x") Public Hearing For Clerk's Dept Use: X Ordinance First Reading Consent Agenda Ordinance Second Reading Public Hearing Resolution Regular Agenda Commission Approval Discussion & Direction Original Document/Contract Attached for Execution by City Clerk Original Document/Contract Held by Department for Execution Reviewed by City Attorney N/A Reviewed by Finance X N/A Dept. Reviewed , ) N/A by ORDINANCE NO. AN ORDINANCE OF THE CITY OF OCOEE, FLORIDA RELATING TO ROAD, RECREATIONAL PARK, FIRE, AND POLICE IMPACT FEES; AMENDING SECTION 87 -3.1 OF THE CITY CODE EXTENDING THE TEMPORARY DEFERRAL OF ROAD IMPACT FEE PAYMENTS UNDER CERTAIN CIRCUMSTANCES; AMENDING SECTIONS 87 -4, 87 -18, 87 -30, AND 87 -42 OF THE CITY CODE BY PROVIDING FOR THE TEMPORARY REDUCTION OF IMPACT FEES FOR ROADS, RECREATIONAL PARK, FIRE AND POLICE; PROVIDING FOR SEVERABILITY; PROVIDING FOR CODIFICATION; PROVIDING AN EFFECTIVE DATE. WHEREAS, the City recognizes that the adverse effects of the national recession and the financial and credit crises are still impacting the state and local economy; and WHEREAS, the City previously enacted Ordinance 2012 -004, which temporarily defers the timing of road impact fee payments for projects submitted before January 1, 2013; and WHEREAS, the City has received input suggesting that some of the economic challenges associated with commencing new projects could be addressed in part by further deferring the timing of the payment of road impact fees; and WHEREAS, the City has also received input suggesting that some of the economic challenges could also be addressed in part by reducing the impact fees assessed to new development; and WHEREAS, the City Commission finds it to be in the best interest of the citizens of Ocoee to try to encourage economic development by temporarily deferring the timing for the payment of road impact fees and temporarily reducing the impact fees assessed to new development; and WHEREAS, the City Commission has determined that such a temporary deferral will not adversely impact the ability of the City to meet its financial obligations. NOW, THEREFORE, BE IT ENACTED BY THE CITY COMMISSION OF THE CITY OF OCOEE, FLORIDA, AS FOLLOWS: SECTION 1. Authority. The City Commission of the City of Ocoee has the authority to adopt this Ordinance pursuant to Article VIII of the Constitution of the State of Florida and Chapter 166, Florida Statutes. SECTION 2. Amendments, In General. Chapter 87 of the Code of Ordinances of the City of Ocoee, Florida is hereby amended as set forth in Sections 3, 4, 5, 6 and 7 of this ordinance, with new wording being indicated by underlines and deleted wording being shown by strikethroughs. SECTION 3. Subsection (F) of Section 87 -3.1 of Article I of Chapter 87 of the Code of Ordinances of the City of Ocoee, Florida (the "Ocoee Code ") is hereby amended to read as follows: (F) Except for building permit applications for projects submitted before January 1, 2013 January 1, 2014 with respect to which building permits are issued no later than March 15, 2013 March 15, 2014, the road impact fee deferral set forth in this section shall sunset on January 1, 2013 January 1, 2014 without further action by the city commission and all road impact fees shall thereafter be payable at the time provided in Sections 87- 3 and 87 -11. SECTION 4. Subsection (C) of Section 87 -4 of Article I of Chapter 87 of the Ocoee Code, is hereby amended to read as follows: (C) Provided, however, that the road impact fee shall be reduced by twenty -five percent (25 %) for any building permit issued between January 3, 2012 January 3, 2013 and Deccmbcr 31, 2012 December 31, 2013. This temporary twenty -five percent (25 %) reduction shall not apply to any alternative road impact fee approved pursuant to Section 87 -5 or established by development agreement with the City pursuant to Section 87 -6. This deferral shall sunset on January 1, 2013 January 1, 2014 without further action by the city commission. SECTION 5. Subsection (B) Section 87 -18 of Article II of Chapter 87 of the Ocoee Code is hereby amended to read as follows: (B) Provided, however, that the recreational park impact fee shall be reduced by fifty percent (50 %) for any building permit or other -2- development permit for the construction of any structure to be used for a dwelling unit issued between January 3, 2012 January 3, 2013 and Dcccmber 31, 2012 December 31, 2013. This temporary fifty percent (50 %) reduction shall not apply to any alternative recreational park impact fee approved pursuant to Section 87 -20. This deferral shall sunset on January 1, 2013 January 1, 2014 without further action by the city commission. SECTION 6. Subsection (D) of Section 87 -30 of Article III of Chapter 87 of the Ocoee Code, is hereby amended to read as follows: (D) Provided, however, that the fire impact fees shall be reduced by fifty percent (50 %) for any building permit issued between January 3, 2042 January 3, 2013 and Dccembcr 31, 2012 December 31, 2013. This temporary fifty percent (50 %) reduction shall not apply to any fire impact fees approved pursuant to Section 87 -30.C. This deferral shall sunset on January 1, 2013 January 1, 2014 without further action by the city commission. SECTION 7. Subsection (D) of Section 87 -42 of Article IV of Chapter 87 of the Ocoee Code is hereby amended to read as follows: (D) Provided, however, that the police impact fees shall be reduced by fifty percent (50 %) for any building permit issued between January 3, 2012 January 3, 2013 and Dcccmber 31, 2012 December 31, 2013. This temporary fifty percent (50 %) reduction shall not apply to any police impact fees approved pursuant to Section 87 -42.C. This deferral shall sunset on January 1, 2014 without further action by the city commission. SECTION 8. Severabilitv. If any section, subsection, sentence, clause, phrase or portion of this Ordinance is for any reason held invalid or unconstitutional by any court of competent jurisdiction, such portion shall be deemed a separate, distinct and independent provision and such holding shall not affect the validity of the remaining portion hereto. SECTION 9. Codification. It is the intention of the City Commission of the City that the provisions of this Ordinance shall become and be made a part of the Code of Ordinances of the City; and that sections of this Ordinance may be renumbered or relettered and -3- ;i the word "ordinance" may be changed to "chapter," "section," "article," or such other appropriate word or phrase in order to accomplish such intentions; and regardless of whether such inclusion in the Code is accomplished, sections of this Ordinance may be renumbered or relettered and the correction of typographical errors which do not affect the intent may be authorized by the City Manager, without need of public hearing, by filing a corrected or recodified copy of same with the City Clerk. SECTION 10. Effective Date. This Ordinance shall become effective ten (10) days after its passage and adoption. PASSED AND ADOPTED this day of , 20 . APPROVED: ATTEST: CITY OF OCOEE, FLORIDA Beth Eikenberry, City Clerk S. Scott Vandergrift, Mayor (SEAL) ADVERTISED , 20 READ FIRST TIME , 20 READ SECOND TIME AND ADOPTED ,20 UNDER AGENDA ITEM NO. FOR USE AND RELIANCE ONLY BY THE CITY OF OCOEE, FLORIDA; APPROVED AS TO FORM AND LEGALITY this day of 20 Shuffield Lowman & Wilson P.A. By: City Attorney -4-