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HomeMy WebLinkAbout1994-03-08 Ordinance ....;::,:.;'.. m#~i "',.,-1' ., . "'" I , " ,." , ,', ." " ::-',:,,',~ ,;'" "~I . \~!" . ..'....,,',,~, " ,. " ., ,..' .; . to'" . ''..' , ".f:~ ~~ ' .~ ,.:, ,.,' ;L' ~.:'J ;":~~:;,\': :; .::J~<':~'\: L<"'';:'..U:/h- r;,',: P:'-: 11',.:.',~ :::';, '.', ". . ~X' ..MJ9 ORDINANCE NO. 94-3610 AN ORDINANCE AMENDING CHAPTER 36 OF THE CODE OF ORDINANCES OF IOWA CITY, IOWA, ENTITLED "ZONING," BY AMENDING SECTION 36-9, ENTITLED "FACTORY BUILT HOUSING RESIDENTIAL IRFBH) ZONE," SECTION 36-58, ENTITLED "OFF-STREET PARKING REQUIREMENTS," AND SECTION 36- 62, ENTITLED "PERMITTED SIGNS," I', , ' " WHEREAS, it may be desirable to allow limited commercial uses within the RFBH zone to serve the residents of the zone; and WHEREAS, the Planning and Zoning Commission recommended allowing limited commerciai uses as provisional uses within the RFBH zone. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF IOWA CITY, IOWA: SECTION I. AMENDMENTS. 1. Chapter 36, Article II, entitled "PRINCIPAL USES AND REQUIREMENTS," Section 36- 9, entitled "Factory Built Housing Residential (RFBH) Zone," of the Code of Ordinances of the City of Iowa City, Iowa, be and the same is hereby amended by repealing Section 36-9 and adding thereto a new Section 36.9 to read as follows: Sec. 36-9. Factory Built Housing Residential (RFBH) Zone. (a) Intent. The Factory-Built Housing Residential (RFBHI zone is designed to provide for the placement of manufactured homes, mobile homes and modular homes within factory-built housing parks, or upon individually subdivided lots with a lot size smaller than that allowed in other zones permitting single.family dwellings. The RFBH zone also provides a location for the placement of those mobile homes which are not classified as manufactured homes and may not comply with the building, electrical, plumbing, or housing codes, and for those factory.built homes which do not have a minimum building width of 20 feet. In addition, the zone provides for the integration of limited commercial and service uses to serve the residents of the zone. (b) Permitted uses. ' (1) Manufactured homes. (21 Mobile homes. (3) Modular homes. {c) Provisional uses. (1) In RFBH zones which are a minimum of 80 acres in size, the following ,',I. l:'I ~' (: t: ,..\ \~'i \ ~ ( ( , "':,1 ~ I I i I I .1", . 1<" It ~ .. o '~3 " .... ........."..'.."'1"..-... .T'..."-'......,..- ..,.'-....'1.... . 'I',' .'\b"~.."':"h.. J"",~ \'''' ,1,:1.. ,,',,' ' ' ., '.' \ ',' ".',. ";j 5" ~~~.,' . """L' ,.,::/""'" ' " -"!;.:.:~\,',:':'~:K,, ,,' mma", ...:;,(,,'-' " , ' ", ..~ '....~~ /, . l,'! -~"\.' \\' ," ,- -':.~ , ~ I : I I , ~'; ii, ~W.).., ,Jj:; .'" ""',. .' ...~ , ,i~ ".. ,'~ .', ~ , . " . , "~.,' o .- Ordinance No. 94-3610 Page 2 uses may be permitted, provided they comply with the requirements set forth in Sec. 36-9(g): a. convenience groceries limited to no more than 4,000 square feet. b. barber shops and beauty parlors limited to four chairs. c. laundry and dry cleaning establishments limited to coin- operated machines and pick-up and delivery services. d. U.S. Postal stations. e. video rental stores. f. restaurants, except drive-in facilities, limited to 1,000 square feet. g. enclosed storage facilities distributed in clusters throughout the development, provided that individual storage compartments shall not exceed 200 square feet in area and there are no more than .5 storage compartments per dwelling unit. h. a common storage yard specifically designed for the storage of special vehicles of residents of the zone. (21 Family care facilities. (31 Manufactured homes, Mobile homes and Modular homes with a maximum of one (11 roomer provided that one (1) additional off-street parking space shall be furnished. (dl Special exceptions. (11 Child care facilities subject to the requirements of Sec. 36-55. (2) Filling stations associated with convenience grocery stores permitted under Section 36-9(clll1, provided that no part of the filling station shall be located within 120 feet of a lot line or a lease line of an existing or proposed residential use. (3) Neighborhood centers subject to the requirements of Sec. 36-55. (4) Public utilities. (5) Religious institutions subject to the requirements of Sec. 36-55. (6) Schools - generalized private instruction. (e) Dimensional reauirements, (1) Minimum lot area: 4,000 sq. ft. (2) Minimum lot width: 35 ft. (3) Minimum lot frontage: 20 ft. on a public stroet or an officially approved place. (41 Minimum yards: Front - 20 ft. Side - 5 ft. , . .-,'".,,,0 ',:, . ',',','," f, .,,,, . :" . ~; ",: ~' ,: I !i~':' , ';'. , , , . , I I < '.' f" ',~ .',', I I I I 1 I .I I , I I . ,~ I" " . .'" '.'..1..'..'.'..'.'1." ,""..,,;\;il.;::'i['",?;,.'..';:;',."';--.:'T:';:~:;..'.' '" 0' .', ,.' ., ""}5' " "', '/ , _~~~~~.~~tl_~'::'~." ;'J ,,; .,~:::\:,;, ' ': ',: ~' .... .,', (i.,,' :ffiilm"j, " ',:,>.i ; , " , r , , , r :," ", ~.- \ -j :,' r i , 'I" ~ I:J , I , " 1 . " '. I- 'I' , I 1,[ ) I' ~,- , ,'.I i( o 'T",., ',>;" 'l~' . " . Ordinance No. 94-3610 Page 3 Rear - 20 ft. or 30 ft. at RFBH Zone boundary (51 Maximum building bulk: Height - 25 ft. Building coverage - 40% Floor area ratio - None (f! General provisions. All principal and accessory uses permitted within this zone are subject to the requirements of Articles III and IV, the divisions and sections of which are indicated as follows: (11 Accessory uses and requirements. See Article III. a. Permitted accessory uses and buildings. See Sec. 36-56. b. Accessory uses and building regulations. See Sec. 36-57. c. Off-street parking requirements. See Sec. 36-58. d. Off-street loading requirements. Not applicable. e. Sign regulations. See Sec. 36-60. f. Fence regulations. See Sec. 36-64. (2) General provisions. See Article IV. a. Dimensional requirements. See Division 1. b. Tree regulations. See Division 2. c. Performance standards. See Division 3. d. Non-conformities. See Division 4. (g) Special provisions. (1) In no instance shall an area zoned RFBH be less than 10 acres. (2) Manufactured housing parlls shall comply with the provisions of Chapter 22 of the Code of Ordinances and the provisions of the Code of Iowa. (31 The following provisions are intended to help ensure that commercial and service uses within an RFBH zone are compatible in scale and design with a residential neighborhood. Prior to submitting a request for a building permit or installing storage facilities, the developer shall participate In a pre-application conference with the Director of Planning and Community Development to discuss the application of these provisions to the subject property. Prior to issuance of a building permit or the Installation of storege facilities, a site pi en and elevation drewlngs demonstrating compliance with the following '- "'~\'..""'''''' ..'.,'...'....." ","' : ',r ...,~';,(,-zi/f}',,',':~,;\:::".."'" '\,. ,..'. .,-" ", "I.', ' f f" I ! i I I ',>;, ! , ' '~3 ,:,'\", ," ,:" ',..;,;, ":'[;;:'0";;-.: , ,'0' .'.~,'. ,':;5'\'. - ,',;1 """""''"'''''''''''1'''''' '1 , '~... , ...'.... J j . I -.."-..,,., ".'."{ ~, .'., ,:'i~'" . .' ~~. . :'; ,. . i~ .. "..' t"', ": ..':~~._~_;.~ .;~~.~~;~;L:..~,~'.~~h';J.;.:.;~~,;,.L:':;'~i~):"i:'0'.lt:i:~;;:;:~:~l.ji;;j"nll'.:~;J;L'~:i:8~',~~~~::;'L:.)L~:;j;':::',,::L':.;...:~~~{:,\~,~:,~ ';;~'::~Ji:'_:'.~..~~!~i~~~:':~_...:..{,"': ~':'~'~:11:1:"'';';''''::';'iI.;~~':';:~:'':';~ " Ordinance No. 94-3610 Page 4 .. ;I' guidelines shall be submitted to the City for approval by the Director of Planning and Community Development. Alternative design solutions may be approved if it is demonstrated that the alternative meets the intent of this section. Decisions of the Director may be appealed to the City Council. a. A minimum of 25% of the residential units within the development must be in place prior to the development of commercial or service uses within the development. b. Commercial and service uses shall not exceed 5 % of the land area of the RFBH development or five acres, whichever is less. c. The design of the development shall provide adequate landscaping and buffer yards between dwellings and the uses permitted in Section 36. 9(c)(1) to screen the uses from view of adjacent and abutting dwellings. The use of berms and evergreen vegetation, walls and fences may be used to achieve this requirement. d. The pedestrian' orientation of commercial and service uses shall be encouraged through site design, building placement and sidewalk construction. 2. Chapter 36, Article III, entitled "ACCESSORY USES AND REQUIRE- MENTS," Section 36-58, entitled "Off- street parking requirements," of the Code of Ordinances of the City of Iowa City, Iowa, be and the same is hereby amended by repealing subsections (a)(2)g., (a)(2)h., (a)(2)q., and (a)(2)s. and adding thereto new subsections (a)(2)g., (a)(2)h., (a)(2)q., and (a)(2)s. to read as follows: I I I,. .. I I ' , ','. "-:. : , '1 . , 11 ~ \ "a3 o '.' i' "'0 . ,': ,,';'., -I ..',.: : . t. "', . I, ~. - : ''''''''v''' ~ \ . .':,. , " ,~ .,....,. .,"',' _.i,,1! .........T:;,'i~.i';....,..... 0" ., 5 : . .,' t.. .....!, ".~'/....,. ~~~!:'::'.::'~"~::'> ..' . ", ~. " ':~""'''''.'.' . - ., " "" . ';-..,'- : ::'. '\".~'-' ''':..hi'l ,,' .' ';:'" ': ':\.' ,~. . -': '~,; , , f" . ", , .;, .' ',". ,~';~..~',.:;~~:;;,;-: ,;~\'~.~.l..'.;.'.",;..,";',''''~ '; ,_'''~~:...., _'V,i.:.."~;"'m" Ordinance No. 94-3610 Page 5 h. Laundry & dry cleaning 1. Where permitted One (1) parking space for each establishments (coin except CB-5 and two (2) laundry and/or dry operated) RFBH cleaning machines. I 2. CB-5 None required but where pro- " vided a maximum of one (1) parking space for each 500 ':'7" square feet of floor area shall be permitted. L 3. RFBH One (1) parking space for each 300 square feet of floor area. i , ~- \". i " \ (""'\; ~,1 'I ~-"" '..' ,- ~..,... , ( \ I r 1 q. Restaurants & estab- lishments dispensing food or beverage for consumption on the premises 1. Where permitted except CB-5 and RFBH One (1) parking space for each 150 square feet of floor area, or parking spaces equal in number to one-third (1/3) the occupant load of the seating area, whichever is less. I 2. C8-5 None required but where pro- vided a maximum of one (1) parking space for each 500 square feet of floor area shall be permitted. i ~ 3. RFBH One (1) parking space for each 300 square feet of floor area. , j I ; I , "', , I'" II J \'~",,~",., \'1.._.... , " I. , ."._t s. Retail stores and shops (other than listed I 1. Where permitted except CB-5 and RFBH One (1) parking space for each 200 square feet of retail floor area. . 2. CB-5 None required but where pro- vided a maximum of one (11 parking space for each 500 square feet of floor area shall be permitted. 3. RFBH One (1) parking space for each 300 square feet of floor area. '~3 o '. ,', ., 'I ....l..', '. '"'' :~'::~>,,~/(,~,:,:;,:~,:.,' . :;,\l:,';';f,'i':1';l'l'::';;'.;",' ~'::-:;:::,';;'T7:'i:;~:;; .''} S , 1:.. , Ii' " "ft'O""'{:, ,,' ,,1.." ,;.: " l. ,. t'."", . ~:-'" ;.' :', . "';f:~\, '~'!'..:':; ;' :~~:': ","1' "f." j" , , ; , ',- l -....... , \1---; ,." ' c-. \' \ ' \ .\ , .. ~.:-.\ I'r. , r I I~ i I i \,. , I"; , ,I J Ii 'c I, ,,; \'",....:;- " l~,',' !Y ," "-,"".,,;"',,1': 'Ii r ~,~ L,.~ ',.'. ,t>., ." , ,~. ., . !. '~'Y , ; .-",', '. :~~t~ I'll ,.' ." .. . ~ ,': .. .,l : ~/j / . .__.~~,~ -'.,'..,.c, ,,-,..'_'..' c~....:-~:~~;'i-h _;..., __j..:.:i:~'~:.'~;;"..';:;.,~-\:!;,;:I.'-l. ,,:,:,~,~,~ :":i':~;:~~~~!:': ::,::~::C::;;~L..:~; ~ i ,:.:::':, ~~ : ;:~~~,''',.;..'::r':., ~', .~';;.;:"',::':,,;. ". ", , , o Ordinance No. 94-3610 Page 6 3. Chapter 36, Article III, Section 36-58 of the Code of Ordinances of the City of Iowa City, Iowa, is further amended by repealing subsection (g)(2)a. and adding thereto a new subsection (g)(2)a. to read as follows: (2) Requirements. In the RR-1, RS-5, RS-8, RS-12, RNC-12, and RFBH zones, special vehicle storage shall comply with the following requirements: a. No special vehicle may be stored in a front yard, except on a regularly constructed aisle for a period of no more than four days for the purpose of loading and unloading. 4. Chapter 36, Article III, Section 36-62, entitled "Permitted signs," of the Code of Ordinances of the City of Iowa City, Iowa, be and the same is hereby amended by adding thereto a new subsection (c)(111a)6. to read as follows: 6. Non-residential uses in the RFBH zone shall be permitted signage in accordance with the requirements of Sec. 36- 62(c1l1.1). 5. Chapter 36, Article III, Section 36-62 of the Code of Ordinances of the City of Iowa City, Iowa, is further amended by repealing subsection (c)(1)c. and adding thereto a new subsection (c)(1)c. to read as follows: c. Dimensional requirements. 1. Shm: Facia (in ID-RS, RR-1, RS.5, RS-S, RFBH-residential uses only, RS- 12 and RNC-12 zones). Maximum area: 4 sq. ft. Maximum heiQht: Top of first story. 2. Siqn: Facia (in ID-RM, RM-12, RM.20, RNC-20, RM-44 and PRM zones). (Ord. #92-3549, 9/15/92) Maximum area: 12 sq. It. Maximum heiQht: Top of lirst story. 3. SiQn: Monument (in ID-RS, RR-1, RS-5, RS-8, RFBH.residential uses only, RS-12 and RNC-12 zones). Maximum area: 24 sq. It., or 12 sq. ft. per sign face. Maximum heiQht: Five (51 feet. 4. SiQn: Monument (in ID.RM, Rm.12, Rm-20, RNC-20, RM-44 and PRM Zones) . Maximum area: Forty eight (481 square feet, or twenty four (24) square feet per sign face. Maximum heiQht: Five feet (5'). " , , :'"',0,, '. .,)",....1,.'.'. ,~: 'I , ' ' 'If" . , , ' , .'. , :,. ;~:;:/.~ :,,:.. ,',::';;,:. ,',',,',1..:'; ,- 'j.',:_;::, ';;':.:,' ;,; '_'~ (, 1;':':"': ~~, 'a3 'L .. ,. .(,', -- ~\>;\::.;'~.:":;:~"(\',r:',',":~r ',~"-~' ~'7--:r.~'''':~,:r '; 15 :.0,' ,,9 r' t ," ,'" "~ .." t " ._-~.._,... ':":(:,:;::1,'':''('''; ~~ ,.",'1' ::.,i">~ . . "'!, '" ,..;....-. ,'. ,,':~rl:i ;,1 ~' . ....,':t'l,..... . .:~. " ,c'. ,'.' '1 ...., Ordinance No. 94-3610 Page 7 i 'j ",' " I.: , 5. Sinn: Awning (in ID-RM, RM-12, RM-20, RNC.20, RM-44 and PRM Zones) . Maximum area: Twenty five percent (25%) of the surface of the awning or twelve (12) square feet, whichever is less. Maximum heiQht: Top of first story. 6. Chapter 36, Article III, Section 36-62 of the Code of Ordinances of the City of Iowa City, Iowa is further amended by adopting a new subsection (c)(1, 1) to read as follows: (1.1) RFBH zone regulations for non- residential uses. a. Permitted signs. 1. Facia signs. 2. Canopy signs. 3. Monument signs. 4. Awning signs. 5. Window signs. b. Provisional signs. 1. When two (2) or more uses are located on a lot, a common monument sign shall be permitted. Said sign shall not exceed the lessor of one (1) square feet per lineal foot of lot frontage or 20 square feet (10 square feet per sign face). 2. Barber pole signs provided they do not exceed three (3) feet in length and nine (9) inches in diameter. c. Dimensional requirements. 1. Uses in this zone shall be allowed a maximum building sign area per sign wall equal to 15 % of the sign wall on which the sign is to be mounted not to exceed 20 square feet. 2. Individual signage allowances. a. SiQn: Facia. Maximum Area: Fifteen percent (15%) of the sign wall area not to exceed 20 square feet. Maximum Heinht: Top of first story. b. SiQn: Canopy. Maximum Area: Eight (8) square feet. Maximum HelQht: Top of first story. c. SiQn: Awning. Maximum Area: 25% of the surface of the awning not to exceed 20 square feet. Maximum HeiQht: Top of first story. d. SiQn: Window. Maximum Area: 25% of the area of the window. Maximum HeiQht: None. --, ,~...:..~ I, ~, i , 11': I , '6', , i" ,j' , I Ii II ,'"", ."'-..." " _..~ o ':',0 ",.1"" ,.. ,I '.' -'," .~ . .-.. ' i ;'1" , I.,' '. ~. }~~':.;-..;;.'~ ;~~..!._ '::J!.::;;r~.,-;.;'.~::~ ~7;i\J::',_, -.., , i i I J 1 ! ,~ ,:. ~ [':--:,,-, 2S ,: , ._~._~ .....". 0',';' " "',..,,: '..1', .....','::~,\ ,'.:t:.:. J~I,: >..,,:.).:,'; .. . .,.,>. " ' ;.::-.:)h~'I.~ . A .' .. ~ ',,'" . " , , " '" '-, (.....: .\! 1-'1, \' l '" ~ I " I I ~ I I 'I I , , ,I" , , I~" , . , I : \' j ~\,'., \ ......~ , , ~'~',':,'),:",' j',i ;!, ~ 1 .', " ,. 1......... 'L~~_ _ ,', .-.' :''; .., -,j" I. ':" ,-;:...~."... , , ..,:: . /,... I . Ordinance No, 94-3610 Page 8 e. Siqn: Monument. Maximum Area: One (1) square foot per foot of lot frontage, not to exceed a total of 20 square feet or 10 square feet per sign face. Maximum Heiqht: Five (5) feet. SECTION II, REPEALER. All ordinances and parts of ordinances in conflict with the provisions of this Ordinance are hereby repealed. SECTION III. SEVERABILITY. If any section, provision or part of the Ordinance shall be adjudged to be invalid or unconstitutional, such adjudication shall not affect the validity of the Ordinance as a whole or any section, provision or part thereof not adjUdged invalid or unconstitutional. SECTION IV. EFFECTIVE DATE. This Ordinance shall be in effect after its final passage, approval and publication, as provided by law. Passed and approved this 8th day of March, 1994. ----- ~P-,(n" ~6 ' MAYOR ' \ATTEST:7I1~ ..f c/!aM) I" CITYCL~ Approved by vYJ fJMiA tel:t: IY\- City Attorney's Office ?_ 2. f - 9'1 ppdadmln\rlbh,otd "~iQ,:,.1;.?' .;,,' ".: " ' '.\'" .,.' '. ~e13 "\: ,:~'.;-1:': "":':"1'''''..' , 25 I , i rlti 'i,'" "'''I'.,..J I :.,' "', , .,." ~. ;- ;', " ,"":,",' , . .,'. . . '. ," , C.._. __~__._'~..._....n.'.:,._~;_~~_":".~_.;.:_~':"';"":'::;;":';";;';;";",,,,;.,' It was moved by Kubby and seconded by as read be adopted, and upon roll call there were: Throgmnrtnn that the Ordinance i I I , I -- , .. ,j .."I , i AYES: NAYS: ABSENT: ',j ,I I ! i ! . i "'<,,\ '-'1 x x x x x x x Baker Horowitz Kubby Lehman Novick Pigott Throgmorton .,' . "'1, . ,;' .! First Consideration 2/15/94 Vote for passage: AYES: Kubby, Lehman, Novick, Pigott, Throgmorton, Baker, Horowitz. NAYS: None. ABSENT: None. I I I , ;, Second Consideration 3/1/94 Vote for passage: AYES: Kubby, Lehman, Novick, Pigott, Throgmorton, Baker, Horowitz. Date published 3/16/94 j'- ; I ,"{ I :i I I ". " " , I j- ~ I ! i , b~~ ,,' o " { .,.....'. .. .' "1''" , , "':"0' ' :;/ '~"/,\',:,\:",J::; "l,"; , -_'_"',fln,' ,\ \ .. ~ "_' ,\,...._,.._.., . 'j' "\ .''''' ~'5'\'d{ I . ,.' ," ,,, \~, ,n,' 1 <,.oJ: , ' .'. ';,:::S.;,,-. ,. '~ -' I;")" ,,\\'/" ,........ '.... \ ' ( , , ': " --.'. ~. :~\.'. :" !;'. , " . .',c ~,...;.~.~',_'-':;":';"~;"';'';'';''''.''~'''''''''"'-:''''~~'''',,'''''J~.:'~''.1'''''~ r1':":":~~~'>l"~J.:;.'''',"o'''''~~'';='/.o'~~~;~~;;I:L,': POTENTIAL ' SCHEDULE OF TAX ABATEMENT APPROVAL, PARKING IMPACT ,FEE CHANGES, AND ZONING CHANGES March 28 April 12 April 26 May 10 1. Set public hearing Public hearing, first read. 2nd reading zoning ordi- 3rd reading done zoning ordinance change ing on ordinance nance, required parking (to include commercial [maybe 3rd reading] , parking require- ments/CB5) 2. Plan/COUllCt (do noth- Approve Tax Abatement Hearing on Amended Plan Done ing) &;fu.JV Plan by Resolution; set (include design review, hearing on Amended Plan etc.); approve plan by Resolution 3. Impact Fees Ordinance Ordinance Amend- 2nd reading (maybe 3rdl 3rd reading...~ changes (to include com. ment/lmpact mercial parking); discus- Fees/commercial parking - sion (no public hearing 1 st reading required) 4. Near Southside Plan. Amend overall Near _.- Done discussion to amend to Souths ide Plan (by Reso. include commercial park- lution) ing , . legalllnglschedule.tax bq~ -.' ',.. " i , " , ,~_. ,- ,:" ",",,': '-."1: ,,". '. "~"\~'"''',''''''''\,'''I'"''' .. , -- ,'. "".. '" , ',' .,.,;,:,,;,,~.', '. ) ".",.., , ,;', ..;'\''',.,.....,''''''":\...!'..",.,,...!'C'',.,,'''''''' I ' , i,;,o.;,:i:,'" ;, .',. ",,, < "0"; ." ,'",' "",,, ", ,.,!' , " 'J5'\, .. '_ _'_n_'_"_'_L_;:~__,_'~~'_::'~__ ___' . ' ' ':,' l' 'J <-. ",',('.'r" /':" o '."":'-;(' ,.,.",.' ....,. j ,', '- ~ , '~ 'C, .- . ,,', ',. . .' ., ,.."'. "" '. ',tt' . , .:~ , . ,. . , ,.,'..' , " ,: ,""'. .', ., ..._. ...'_,.:.._._..:~~...."""....."". '~.' ",,,';';'."~\l~"I';\':,'.;"'~J.:a,,!.':<:<~':;'l,\'..-=.:,,,i.:,...,,,",";':~,,- _....,,_.:...~.,...:. .... "; . ," \. '~. i ! , i , [ I "I City of Iowa City MEMORANDUM Hem No / Lf L.N6 I I I, , Date: March 7,1994 ,., ,. To: Honorable Mayor Susan M. Horowitz and Members of the City Council From: Linda Newman Gentry, City Attorney Re: Tax Abatement Laws, Urban RenewallTax Increment Financing and "Impact Fees" <I - .:",' ,'.. I have received a number of questions which I would like to c,larify. A. Tax laws limit City authority 1. The City cannot tie an exaction or "impact fee" to tax abatement/urban revitalization. Nor can the City impose an exaction under the auspices of urban renewal/tax increment financing ITIF). '. The reason is simple: state tax laws must be followed stringently, and cannot be modified by home rule. B. Urban renewal law (Chapter 403, Code) 1. Traditional urban renewal law permits restrictions on property development, but only if the City purchases or leases the property for public amenities, Chapter 403, Code. 2. Urban renewal/tax increment financing under Chapter 403, Code would assure that the property taxes now going to the county, school district and other cities would be going to pay for the public improvement by way of retiring the bond/indebtedness to build the public amenity. However, this "property tax on the added value" continues to be paid by all property owners within the designated TIF area, not just the developer. C. Home rule authority permits "impact fees" 1. The City can impose an impact fee, based on home rule, on a private developer via an "impact fee ordinance" where A. The development creates the need for the public amenity; and B. The funds collected as an 'impact fee' are expended on the public amenity. '. o '! "''''\'' ".., ,~..,~--" 'f?"")"\, '., .1, ,\i~::'" ' 'I.f ~ u;""""h""":r"..'..-..l/l,\,'" IS / 1'0";;'. ,t, .~; ....':,::.:.'.f.:" L ': '_......'... _:-"i;'::\" ?11i,~~I;,>:~ " . .,/,.'" ::. '- (," c~~ ~ I; , ~ ,l[ -0 .~. . .... . '1 . ," , ' ",." p' ',. . '." ,.. '. . ...~__M_~.__,__.__~,___._______M See memo attached, written by Marsha Bormann and dated December 21, 1992. I I I I i " Stated otherwise, if the public amenity fulfills a city-wide need, payment cannot be accomplished by impact fees or "exactions." This is because the exaction or impact fee must be connected to some specific public need created by the development. r: 2. Other attempted "exactions" to get private payment for public amenities, under the guise of "percentage or amount of contribution based on tax abatement" is not permitted under Iowa law. D. Current City parking impact fee ordinance ,.,. It might be helpful for you to see how an "impact fee" really operates, so I have attached a copy of the City's "parking impact fee ordinance." This ordinance covers the Near Southside area plan, which was adopted in 1991, with the impact fee ordinance being adopted in March 1992. . If you wish to include provisions for "impact fees" for parking associated with commercial development, such language could be included in this parking Ordinance, with a new formula devised by the staff. You would also need to amend the underlying zone in this area, requiring parking for commercial development. '.. \ If you wish to impose other impact fees for other amenities under home rule, you need enabling legislation. ~,' I hope this will be helpful, and I will be available for comments and questions at your March 7 and 8, 1994, meetings. cc: City Clerk City Manager Assistant City Manager Karin Franklin Marsha Bormann " ii.' P, I Attachments n:\momos\toxlows,lng " I I , w-- ~ ' , ,',iO,.),,',.',. ~i .:~~:.'J~;:.:-;'.<_.,,":~ ,rS\'" . ~LI~ ~" '.i.; " ""iT'."","":':.' 1"0'\ 2s-J "', ,. .... " ..~;' . .' : I , "',1 , , , .,...','. .- 1l1ciim',' . 'r:'", .... _ , ,'J" " -"'.,l " , ;. " .. j:-:-;.'-- ..\ r-., \1 ~, I -"1\ " ' , ~ I ,'" I "" . .....'...,.,.,-..... . "t" ,'::".W,:, . ....,;..:.. ;~, ','j" .t... .:., ~' , . ,.. " "'"I , '. '~.,. . ., . .' ".':,~\ ' '~ ... , " . "". . . ".' '.' .. ,. .,. ,.......__....._..._...._...._._-'8......;",-'-,__. .. , ':~ j '.\' ... .....w...,'_",~. ___,_,_".__,_..,~,~..._~.....q._.____ City of Iowa City MEMORANDUM , , i : , , I i To: Neighborhood Open Space Committee From: Marsha Weg Bormann, Assistant City Attorney Date: December 21, 1992 , j .1 ~ Re: Assessment and Use of In-lieu Fees and Impact Fees OUTLINE I. Introduction II. Historical Background Dedications: Subdivision approval conditioned on dedication of land for public !, improvements including parks. ' In-lieu Fees: Subdivision approval conditioned on cash payment in lieu of dedicating land for public improvements. Impact Fees: Charge levied on new developments to generate revenue for public Improvements necessitated by the new development. ' a. Unlike In-lieu fees which are' assessed at the time a subdivision plat Is approved, Impact fees are paid when the city Issues a building permit or a certificate of occupancy. b. Impact fees apply to new development and redevelopment not just subdivision development. As such, cities can assess Impact fees to non-subdivision developments such as condominiums and apartments. c. Impact fees purport to more accurately correlate a development's Impact and assessment by basing the assessment on square footage or number of bedrooms per unit rather than a percentage of the development's acreage. , ,~ III. LEGAL ISSUES 1. A municipality must have the authority to assess fees. ,. ''-I~ ;,;.'.'I),::.r", ',:",,0,'; ::'~r':::~::'~~'~''':.;~'''' 0 15 . .. I '.'.',\ ;'-',," o , i _, '.'~ ..., _. (,'e- . " , ,.1...., , " _:':.-....! ...:.'..J., ..', "/ .,..,,'.' , , i ~- .t l~'\ \ \ .~ r..:" ! ' ~ I I i k, , 1'" , , , , I, II ~~,",} "Pj ~.~:., ~r ., i'l - ~ f;'~ t Itl! j .' , )(~~- .-',', '. ',~) ':,,;..'. "t', - . - - ~.'. \ I':. . ~'., '.... , . ',:. 'M . ,,' '" 'i' '.', 1 , ' ,..,.,........ '\",d' . . >' ,"" , ' , ' _u __._~;; ..~.....:...,;~.,..:..~.,J..., ,-c.;"; ".~<,.>;.....I.',.:,1:;:" :." 'c.. '1. .'_'...::, .l.'~:'l.~.. .-" ~ .c.,".-." -.' ""..".:." .';"""~.I>""'" a _'~~""".~ ~." ' -.. '", - " , '. . ... _..~."" ..-'.'_l....._...._.-.._......_,.,_____.._~..'__ ___ 2. Fees must be regulatory. They cannot be a disguised tax. 3. Fees must satisfy constitutional substantive due process and takings requirements. A. AUTHORITY A municipality must have authority under state law to enact Impact fee ordinances. Developers often question a city's authority to enact this type of ordinance. 1. Iowa Code ij 409A.8: l'The governing body.... shall determine whether the subdivision conforms to its comprehensive plan and shall give consideration to the possible burden on public Improvements and to the balance of Interests between the proprietor, future purchasers, and the public Interest In the subdivision when reviewing the proposed subdivision and when requiring the Installation of public Improvements In conjunction with approval of a subdivision." This language may support a parkland dedication ordinance although there is a difference of opinion among commentators. In addition, In-lieu fees have been held outside a city's authority under similar laws. In those cases, courts require specific authorization for the type of fee imposed. 2. Amendment 25 to the Iowa Constitution grants home rule power to cities. This gives Iowa cities full authority to act under their pollee power subject only to legislative limitation. This power appears to provide adequate authority for Imposition of In-lieu fees and Impact fees. B. FEE OR TAX Iowa law prohibits Imposition of a tax not specifically authorized by state law. No state law authorizes the Imposition of a tax on developers. Iowa case law distinguishes between a tax and a fee or assessment. Tax: a charge or levy for general public purposes Fee: a charge Imposed only as payment for a benefit conferred While no Iowa cases Involve impact fees, the definitions set forth above should also apply to those types of cases. or . .' ~' " @ ..... '4~ -,"- , , -.""",....". 'j..,.,;,.'. ,:' ';\1 .' ,.,y. " ,:. 0 . ',',.', ,/". 0: I,. i - , "1'''' ,/5 'l"r " ,~O; "",-,',"" " ';,', ~~. " ~~ \ ~ 'i I I I' i I I I~ : ! c I. '1 . I~' ~. 11:1 ,", ;I! ii::! J[- 0 ., I '. ,', '.~: . i .' : '.It" ",' , .'~ ;, t! . ,'.': . .~' 'M ' " ,. " , ""'0;'. 1 '4 ,.. . ~ , "',' . :.' , , , " -' .,,_',"_" .:h;~;.'.:;"",,"~~, ,. H,.u-""...':,-'~"",,,,,~,,,,,...,,,~. ~._.._.' _ ..',_ . . ",.....................:.............. , Eastern Diversified Properties. Inc. v. Montoomerv County, 570 A.2d 850 (Md. 1990) -dominant purpose was to raise revenue -Insufficient nexus (too large an Impact area) -no determinatlon that improvement was necessary Critical points to consider: 1. The fee should be assessed only for a benefit conferred. 2. The funds must be earmarked for and applied to the specific purpose for which the fees are collected. The funds cannot be made generally available for use In the entire community even if limited to a specific improvement such as open space. The funds should be kept In a separate account. 3. The funds must be used In a reasonable period of tlme or refunded. C. CONSTITUTIONAL CONSIDERATIONS o SUBSTANTIVE DUE PROCESS A three part analysis: 1. Did the government have a public purpose for actlng? 2. If the government can act, did It select a means rationally related to the public purpose? 3. Is the private loss greater than the public benefit? 1. Fees for public Improvements Including open space and parks are generally considered to relate to health, safety or general welfare and, therefore, a legitimate goal of pollee power. Klnzll v. City of Santa Cruz, 620 F.Supp. 609 (N.D.Cal. 1985) (open space ordinances substantially advance legitimate state Interests.) , 2. The means chosen must be rationally related to the purpose. a. Three tests: I ~4~ " .~. :L~ -~ ~ -- . ~d ,'Q,): , " .. ..r", "~I' I'" ' ')~ ..' .... ..."\' " __4'~ ,-, .!llllID, :' ,~, I.. M . .' ~. \ t'. . . :--,\\1.'. .' ., - ;~, , , " , .....,.,; ...'....', , ".. ':,". :.. . . . .... . . "+_.,....._~., '_".U"'~"""''''''''''''_''''''''"'~'''''''''''''__~'''P~~_~.'~' . . _...__,_"._..._....,~.".......~.._.~, ."_~..'"~~..,._...~_,~.,:_,A ....~_,._... . 1. Uniquely attributable test (Illinois) 2. Reasonable Relationship Test (California) 3. Rational Nexus Test (Majority position) b. Rational Nexus Test The Impact fee must be reasonably related to the need created by the development. 1. Impact fees must be calculated by measuring the need for public Infrastructure created by the new development charged the Impact fee. The fees cannot exceed the cost of the Infrastructure to the City. The fees must relate to that portion of new facilities required by growth. They cannot be used to update existing facilities or to remedy existing deficiencies. 2. Impact fees must be earmarked and spent for the purpose for which they are collected. c. Private v. public benefit @ \ \ Critical points to consider: 1. Does a development create a need which can be attributed to that particular development? 2. Is the fee reasonably connected to the benefits to or burdens caused by the development? (I.e. what Is the development's fair share?) The court will look for some type of cost-accounting Justification. 3. The fees must be earmarked for the purpose for which they are collected and must be kept In a separate account. 4. The fees must be Intended for Imminent public use and not "banked" for some unspecified future use. A specific plan Is necessary. , . , .~ l'; TAKINGS CLAUSE 'I , i :1 ~. '" Even If Impact fees satisfy the substantive due process requirements, the Impact fee ordinance can be found Invalid If It constitutes a regulatory taking 'l.~ " \' , ~i !'., I" '4:t ;( 0_ , ~'- - . -~-----~ -~ ' ','.0 .',.....1. ) ,"',,'," ' I >'. ,,'" , . . . ;"." ,.". " ' i,-'I'" 'i r a I~ '00, - ~-- ,..."".,', ,.;~. , , , '.' . '....~'. I ~~~;"yr' ", ~ ' .' , i I I ..' .( ,_,,:,_..___,_",-,--~,a_~_....:, ' . i~ , SPECIFIC QUESTIONS: 1. Can the specific proposal satisfy the rational nexus test? While the aggregation of districts by watershed may provide an argument In support of a rational nexus In most cases, there may be scenarios where use of the funds within the watershed area may not confer a benefit sufficient to satisfy the test. .';' .'-, Can the City adequately document the estimated cost of acquiring and constructing needed open space facilities? 3. Can the City develop a formula which will determine the proportionate share of each development (the need created by the new development)? 2. . ,.: 4. Will the City be able to use the funds within a reasonable period of time? 5. Outlying developments will also need open space and that need will have to be addressed first (I.e. their impact fees must be used In their Immediate area first). Will enough additional funds be generated to make the trail system feasible? 6. Will the City have funds to expend for those sections of the trail system which cannot be funded by impact fees due to the lack of rational nexus or Insufficiency of fees collected? " " , i I I f , .i (":"J ,(I \\\ ,\I j' ~::~ . ~; "- I , ,I , . I , , , i i I' I ,(- 0 ,~-- ~~. ; LJJ ~ .I 'q~ ~\."......,...",,,,,,,,,,,,,.."..'."'''n('''',,,, "'",, "'!""';.,"" ;" "";- ''''.'1 \Z-,:;:",'Rii'~I~::i:<' "'..~ '\_____,$o::'':'p: " . -.-,-," '.' " -:",;-'<: " ,,,,.t'\I;' ,":;'.'. ': ,:...... ~~\:-':-,. , . --'".1 ", ,,'; I " ........; I, : J,I ,_." \~ ,~ '~~7-~ I' , ~; .~ ~ :~_:"! ~~ ~_f. ~ y. ' ;"', . 'I" L_~ ',..iG .;-., ',.' M ," , .. '~...' """,u,......;..,.-/f;.':':, r:Jt~ /1 .,-;' - :- ,~. . .~ '.. , , . , ., _.....:.~:.-~._~~.:...,.....,:,:n..._..;""4>:"-'-'...,j...,~,:::....~~~-.;~=ol-1>>.~_~,.<~'~'.'-~~..."".,..~...~~,__..._u_. ORDINANCE NO. .22.: 3522 AN ORDINANCE TO AMEND CHAPTER 32.1,IOWA CITY CODe OF ORDINANCES. 'TAXATION AND REVENUES' BY ADDING ARTICLE VI, PARKING FACIUTY IMPACT FEE ORDINANCE. WHEREAS, the City has adopted the Near Southslde Neigh. borhood redevelopment plan to guide the development In the Near Southslde Neighborhood; and WHEREAS, the parkIng facility Impact fee ordInance will asslsl In the Implementation or the plan, and guide the use and development 0/ land so as to assure thai new residential development In the Near Southslde Neighborhood bears a proportionate share or the cost or caphal expendhures neces- Sllly to provide parking In the Near Southslde Neighborhood or Iowa City. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUN. CIL OF THE CITY OF IOWA CITY, IOWA: SECTION I, AMENDMENT. That Chapter 31,2 or the Iowa City Code 01 Ordinances Is amended by the adoption of the lollowlng new article: Article VI. Parking Facility Impact Fee Ordinance Section 32.1-110. Leolslatlve Flndlnos, The City Council 01 Iowa City, Iowa, finds, determines and declares that: A Residential development and redevelopment In the Near Southslde Neighborhood whhout the provi- sion or adequate vehicular parking spaces Is contrary to the public Interest, B. It Is undesirable to devote significant portions or development shes to parking In the Near Southslde Neighborhood, since h is In the public Interest to develop land now available In the Neighborhood lor more intensive residential and commercial uses. C. The City needs to expand hs parking lacillty system to accommodate new development In order to ensure adequate parking, and the City Council recognizes such expansion Is necessary to pro- mote and protect the public health, safety and wenare. D. City involvement in the expansion or tho parking facility system is appropriate due to tho scale and cost of such facilhles, and Is necessary due to tho anticipated high levol or use or such a parking laclllty by the genoral public. E. The Imposhlon or Impact leos Is one of the pre- ferred methods 01 ensuring that new development bears a proportionate share of the cost of parking facllhies necessary to accommodale such develop- ment F, New residential development In the Near Southslde Neighborhood will creale demand for the construe. tlon or parking facllhies. G. The lee established in Section 32.1.114 hereof Is derived from, based upon, and does not exceed the cost or providing addhlonal parking lacllhles necesshated by the new residential development lor which the lee Is to be charged. H, The lee established by this ordinance does not consthute a tax. Section 32.1-111. Trtle. Authorltv and Appllcebllltv. A. this ordinance shall be known and may be ched as the 'Near Southslde Neighborhood Parking Facility Impact Fee Ordinance.' : ' il. ~- ~".,...,...."" ..,.'",':;R>,..",j.::," .' - .,,' .-'V,' ".."~'t_~", .\' 'r'.' . ~.,._,a",._.c...:_, ' DrJ 81\ fAt ,':,,',,'/'.," '(II" "":"":';"r't'.~",",',!.,:, :', , I~' ,"' " I ' i I I I I 'I I , I' ..1"',':,0>\.. 0' , /; ~~:~'\?~. ,....,.....{,... A' . '! ~~.. , , """ .'-!, .',.' ~','.. J' '\f;I,I,~,_ ',,' ;.," ~ ." ,.. '~ ',',..- ":' ",,' , , ',: -.:..:~....2'2,y-~~:...~~~2'''''~'~:';J~''i'~_'..>l.hl~;~'''f'':.,\.,U~:',l:;"L':";;J::.;.;(,..<.r.~."L",.;..;..'.I.,;';';;i...::...:.:;.:~:.o.'''..J;1~').O.'''''''':'':''''''''''''-'<...._.IA__~.;.~-.;.. ',' .: ):,:i Ordinance No, 92-3522 Page 2 .l~ " B. The City CoIJncll of Iowa City, Iowa has the author!. tt to adOptlhls ordinance under Its Home Rule powers, pursuant to Article III, Section 38A 0/ the Constnutlon of the State or Iowa, and Chapler 364, Code 0/ Iowa (1991). C. This ordInance shall apply to all real propeltfwflhln the Near Southslde Neighborhood as defined In the Near Southslde Neighborhood Redevelopment Plan. Where the provisions hereof are In conflict wnh those of the Iowa City Zoning Ordinance, the provisions hereof shall prevail. Section 32.1.112. Intents and Purooses. A This ordinance Is intended to asslst In the imple. mentation of the Iowa City Comprehensive Plan and the Near SOUlhslde Neighborhood Redevel. opment Plan. B, The purpose of this ordinance Is to regulate the use and development of land so as to ensure that new residential development In the Near SOulhslde Neighborhood bears a proportionate share of the cost or capnal expendnures necessaJY to provide par1<ing In the Near Southslde Neighborhood or Iowa City, Section 32.1.113. Definnlons, A. A 'fee payo~ is a person applying for the issuance or a building permn for residential development In the Near Southslde Neighborhood. B. A 'capnal improvement' Includes land acquisnlon, sne Improvements, buildings and equipment necessaJY for a parking facility, but excludes maintenance and operation of such facmty. C. A 'capnal cost' shall also include the costs or design, englneerlng, necessary consunants and financing of a capnallmprovement, Including debt service, D. A 'par1<lng facility' Is a ramp, surface 101 or combl. nation thereof, designed to accommOdate the off. street parking of motor vehicles. E. The 'Near Southslde Neighborhood' Is that area of Iowa City bounded by BUrlington Street on the north, Gilbert Street on the east, the Iowa Intersta1e Railway Main Une on the south, and Madison Street on the west, and as defined In \he Near Southslde Neighborhood Redevelopment Plan. Section 32,1.114. Parklna Facllltv Imoact Fee Authorized. A Arrt person who, after the effective date 0/ this ordinance, seeks to develop land wnhln \he Near Southslde Neighborhood by applying for a building permn for residential use Is hereby required to pay a pBIl<ing racm~triiipaCl fee In the manner and amoum set forth In this ordinance. B. No new building permn for resldemlal use requiring the payment of an Impact fee pursuant to this ordinance shall be Issued unless and untll the parking facility Impact fee hereby required has been paid. Section 32.1-115, ComDutatlon or the Amount 0/ the PBIl<ina Facilltv lmoact Fee. . , ,~ I I I " ':J ,c .,., .. .~,., ,. ; f ~- I'i : II 'I II: I . ! f': I I I lL)! , ' ,'J';, - , , 'q1.. :...,:: ""-;-',-":;""~'\"'<C-' .........,."..-r~.'."';.1 0' ," :,: 0 ,)....,,, '", '~It. )' .' " '. I ,'I, "" ..) , II , , ," ' ",' . ).,: , , '. ,.......".. " ,,;t, 0 "J, ---.'" -- . ,<,::;:\:" " ~" .),~ :..:" , (', i ! , .,<., , i " -'- -- i i' ! I i 'I I I j , I" : i < ' I'; : : I : I i I ~\",.,: \":'~~ , ,", I L....l o " . M '. .' .', '''''rI'''~ "M~ '., "~I . ., .. " :,>~~t~. "',' .' . ' "I'll'l, ' ", '.. " ,., .,.....i': '"!,, 1-:. ".,' , '. ; . ,-: .' ' , ,'E. .',. ;, '. . -:. .. .." :. '. .' .... . '-" .-:. ".~.' .- ' .. ..;': '~;",_:';'~.....'''''''''''''r''''''''''a,\...... "'......,.<;~................ ..:....,...;.~~_.."'..,," Ordinance No. 92-3522 P lIll' 3 A. The ImpaC1fee Imposed by this ordinance Is basad upon current best estimates of the cap/lallmprovo. ment costs 01 the construction 0/ a parking facility In the Near Southslde Neighborhood. Based upon archnects' estimates 0/ construction costs 0/ $10,000 per par1<lng space constructed, and land costs of approximately $16 per square foot, the City Council finds that such capital Improvement costs total In the amount 01 at IeasI $12,000 par parking space. B. The City Counclllurther finds that given current Department 01 Planning & Community Develop- ment estimates 01 new residential development In the Near Southslde Neighborhood, and given the City's ability to manipulate parking system rates, monthly permn policies and on.street parking ordinances, the use 01 a parking facility In the Near Souths/de Neighborhood will be apportioned 33- 1/3% to users attributable to new residential devel- opment In the Near Southslde Nelghbort100d and 66-2/3% to users from other areas. C. Based on the foregoing, the amount of the parking facility impact fee required by this ordinance shall be $4,000 per par1<lng space. D. In order that available land In the Near Southslde Neighborhood Is Intensively used, and that a portion of residential parking is combined In a parking facility rather than scattered throughout the Near Southslde Neighborhood, the Council finds that the parking facility Impact fee shall be paid In lieu 01 providing 50% of the parking spaces olherwise required by the Zoning Ordinance for residential uses. E. The total parking facility Impact fee required by this ordinance shall be calculated by muftlplylng by 50% the number 01 parking spaces otherwise required by the Zoning Ordinance for residential uses, and munlplylng that product by the per space parking facility impact fee amount, as ex- pressed in the formula: (RPS x ,5) x IF = TF where RPS Is the number 01 par1<lng spaces other- wise required by the zoning ordinance tor residen- tial use, IF Is the per space parking facility Impact fee, currently In the amount of $4,000, and TF Is the total parking facility Impact fee required by this ordinance. Section 32.1-116, Pavment 01 Fee, A The fee payor shall ~ the total parking facility Impact fee required by this ordinance to the City Manager or designee prior to the Issuance of a building permn. B. Allfeas collected shall be promptly transferred for deposft In the Near Southslde Neighborhood Par1<lng Facility RestrlC1ed Fund, established In Section 32.1-116 hereol and held there and used solely for the purposes specified In this ordinance. Section 32.1-117. On.sne Parl<lna Spaces. .' \\:'r'~.j.::::';:\:::9.~.-,,~::::; ," '. j !: " ~. . ,.."..---..:-..---.,...""..:..._.:.:..."a_;.;.,_,-'_. , I I I 1 I ! I I I I . -.. '::'.;.:-.:::..~7...>::.,..,~.\...:".:"',..~'.-".,"..: , ''+'3- "'''', '\'.,..'2'5":,10; ,.,', ," "'."".-:- ,...., ','I .. ..., . '.~',,'" I ,.', . ..::~../...' "'. . ' ,"', ' . ",~__~~~._._~:...__,.."....~.:...:,_....""...,..'~...~'..:.';~....~"".;.~~a~;:~_:'.~ Ordlnance No. 92-3522 Page" .;. A. Notwlthslandlng provisions 0/ the Zoning OrdI- nance which may be to the conIrllJY, paymenl 0/ the parking facility Impac1 lee shall onthle lhe lee payor to provide no less than 50% 0/ the pnlng spaces othelWlse required for residential uses on the site. B. Those parking spaces provided on-sIe alIer payment of the parking facility Impact fee shall: 1. Be sized In accordance whh the prevainng proportionality requirements of the zoning ordinance regarding standard and COOIpllCt car sized spaces; and 2, Include all required handicapped accessible spaces. Section 32,1-118, ParklnQ Facilitv lmoact Fee ReslrIcted Fund. A. There Is hereby established the Near SOlAhside Neighborhood Parking Facility Impact Fee Re- stricted Fund. B. Monies held In the Restricted Fund, Includ'"d any accrued interest, shall be used solely lor the purpose of the caphal Improvement of plrtlng facllhies to be located In the Near SOlAhslde Neighborhood, and shall not be used lor mainte- nance or operation. C. Monies shall be expended In the order in which thay are collected. D. In the event that bonds or similar debt Instrunents are issued for the construction of caphallacimles for which parking facility Impact fees are 10 be expended, monies held In the restricted fund may be used to pay debt S6lVlce on such boOOs or similar debt instruments, as caphal costs. E. Atlaast once each liscaI year the City Manager or designee shall present to the City Council an ac. counting of the Restricted Fund. F. Monies In the Restricted Fund may be used to provide refunds as provided In Section 32.1-119 hereof. G. Monies in the Restricted Fund shall be used lor the purposes enumerated herein, exclus~e c:t all Olhers, and shall remain Invlolato whhln the Re- stricted Fund. Section 32.1-119, Refund of Fees Paid. A. n a building permh for residential use for wIi:h an Impaclfea was paid expires whhout commence- ment 01 construction, then the fee payor shaI be enthled to a refund, whhoul Interest, of the mpact fee paid as a condhlon for the Issuance rA the permit, except that the City shall retain :w. as an administrative fee to ollseI a portion of the COSIS of collodIon and refund. The fee payor must submit an application for such refund to the City Ma1ager or deslgnee wilhln 30 calendar days 0/ thellllplra- tlon 0/ the permh, Failure of the fee payor to make application for refund whhln said 30 days may rosuh In fOlfeilure. B. Arrt funds not expended or which remain trlOI\o cumbered by the end of the calendar quarter Immedlalely following live years from tho lIMe the , , I I i." I I', ' _ "," I, " ,I , I i i ,-<.\ 1 '. .,",C ~~ r I~ '1 " v~~~~ 1 ~ . o ", ','. . ,'.,',\..'!,:!(:,;;~',,).:.;', f' 1.l1l..', ..-..-",,'. "",'",'.... '," """'>""'''X',' ",,!:lj"''''''''''''''c, 'I"'" "'t:: ::.'.i,'r\~I~;~:"'~:"':'\ :. .':" "'." ,:, ." (,-'. '::';, ',',' ,0., :'~..'; ',,,, , , ," "J t.' , " .,,;:;;,:','\.' ':'; I,' ,_ ,; ',', '.' . ,:,"'.~ ~ :<,.~,:.,._,;:.,'_,; ,'~I:, ".., --";:':.',~ . :..~:': 1l.llil1!ll',', .;.~::.:}>-~"-'\", - ': '.. " , , ~ . ,-,I ') . .~:~\ i::"1 .,\1 ,..-:., \\ \( 'Il ~ ~ --' ':C~O , .>-..:. Ordinance No. 92-3522 Page 5 Impact fee ~ paid shall, upon application a the fee payor or the lee payor's successor In InterllSl, be rOlurned to such fee payor wnh Interest 81 the rates earned by the Restr1c1ed Fund durtng such lime as tho fees wero held In the fund, provided the fee payor submns an application for the refund 10 the City Manager or designee within 180 calendar days of the expiration a the five-year period. M used In this subsection, funds shall be deemed 'encumbered' ~ the City Council has approved a contract for acqulsnlon and/or construction a 0 part<ing facility In tho Near Southslde Neighbor. hood. Section 32,1-120. Exemotlons, The following shall be exempted from the requirements 01 this ordinance: A Residential development which const~utes 'elderly housing' as defined In the Zoning Ordinance. B. Historic properties, Identified In the Near Southslde Neighborhood Redevelopment Plan, to the extent that the Impact fee provided herein must be paid, but the fee payor shall not be required 10 provide the on.s~e parking spaces othelWlse required. Section 32.1-121, Construction of Parklno Facility. A. The parking facility or facll~les financed In part by , the Parking Facility Impact Fee shall be: 1. Constructed In the Near Southslde Neigh- borhood Area; 2. Constructed at a lime and In a design at the sole dlscr91lon of the City Council; 3, Designed and operated to accommodate new parking demands up to 33-1/3% of capacity and existing demand up to 66-2/3% of capacity. Section 32.1-122. Rloh1s of Fee Pavors. A. this ordinance is intended to provide fee payors a reasonable opportunity to secure off.street part<lng for residents 01 new residential development In the Near Southslde Neighborhood. B. The payment 01 the part<lng facility Impact fee does not guarantee a fee payor a parking space or a monthly perm~, e~her In existing part<lng tacll~les or In those financed In part by this ordinance; however, the City Manager or designee shall, to the extent reasonably possible, give preference to occupants of residential development for which a part<lng facility Impact fee was pald. Section 32.1-123. Miscellaneous. A. 'The computation of the Parking Facility Impact Fee shall be reviewed and amended, ~ neceSSBly, by the City Council periodically to ensure accuracy of the estimates and projections. B. The calculation of part<lng facility Impact fees and the receipt thereof by the City shall be documented In a form recordable In the Office of the Johnson County Recorder. Section 32.1.124. Penaltv. A violation of Ihls ordinance shall constUute a municipal Infraction punlshablo according to Section 1.21, Iowa CIty f "~--~-~'."" )....,",... . 'I'" ""0 " " ,'.1.., " > I.,. <~' . .; l ::~ , .U , , i',:" .M~~ :j,'..; I, ~. . , , ,..',...:..:...._,__,....IlL Hi ':':.....,:\1".,'\1 ".:("~: ~".., ":"."" '.1 ':"'i -' ....,,-~~..'r.:.M._..---:"'".. ~ .....J.\, ,2,5: ,'i: ",1 , " ." .:' . \ ! " 1'0\ ""......-"..,.1."., ',', '" ~..:~ ~]~j_j~~~"",,"i.,..~~;;~~,,"'~..L""~':':j,;",\",,~~:,,;;~ii.::,,~~;IC~:~"~.=-oo ~.i.," ~:~. ':':,~! , . < Code cA Ordinances; however, In addKIon 10 or In lieu cA any prosocutlon, the CIty S/IaJi have the power to sue lor relief In civil court to enforce the provlalona cA this ordinance. Knowingly fumlshlng false Infonn811on to the , City Manager or designee, the building olfIclal, or any municipal olfIclal who Is charged with the edmlnlstratlon of this ordinance on any matter relallng to the admlnlslra- lion 01 this ordinance shall also constitute a vloIaIlon thereol. SECTION II. REPEALER. All ordinances or parts 01 ordinances In conflict with the provisions 01 this Ordinance are hereby repealed. SECTION III. SEVERABILllY. ~ any section, provision or part of this Ordinance shall be adjudged to be Invalid or unconstKu- t1onal, such adjudication shall not affect the validity of the ordlnanca as a whole or any section, provision or part thereof not adjudged Invalid or unconstKutlonal, SECTION IV. EFFECTIVE DATE, this Ordinance shall be in full force and effect from and alter Ks final passage, approval and publication, as provided by law. Passed and approved this 17 th day of March 1992. i~ ATTEST: /J1o...;"."j .j/, ~ CITY CLERK Ordinance No. 92-3522 Page 8 , h' ,J, '~.; t - , ~ , ~ " , , , .~ ,: . ,~ , 1 . I ui nVmpctfee.ord " .r"":; I," r' ,'"I ';"~l:. \ ' \ ' m i 1 ~I I , "~ o \. -: ,:. ';/'I:<>~~/'~!~.';'::'::~":"" . ".1 ....';" , \- , City Attorney's OfflceJ 3/r2. .... , ' ~ "",_." , ",',U:\h'_~_.__,.."_..._\ '_Y'''G' '5":..'~., 8 0"',' ': . " ~,~ "~:"!I, j I, '. . ~ ,..I., '" ,",,' " ' ". "",-"" .... " . r~" ~~'i, .':. I' . ,", .. ,'\ '''< " .....-~ " ,\ '-'1 \~ ~' , '. .~.-~\ I. J ~ I I I , ~'. , , I l~ o;;;f . , 1." " , f, I ~; , :...1.1 ',' .. ".~ \'.!.. :'..1 I --< " " ,,' " "~-"'. ..' ,;"hl:. ' , f-' ' . ,- ". ,I .;' " ," -.1:....(. . . : .~;., , . . ' '.. ,,':~~, . ' . :,,' , ,.... . . ..n ,.,.... 'M",'_' ....".~ ,.:.IA;':"'.:":.l';;L':'..,:'C.: ".~,~ :'O':";....._..,'.:;_'.:.:,L...;,;;.;:..'.:;.:....L~..!;d"..:...:.:.j;,;".;.;".'--~o,.,'-'-~~,..'--_~_,__..; _. , , I " '., . ,.. . :-. ,,' , ....u_..._,.__...._c..__~_,a,.._,:_c_. ' City of Iowa City MEMORANDUM Date: March 3, 1994 To: The Honorable Mayor Susan M. Horowitz and Members of the City Council From: Linda Newman Gentry; City Attomey Re: "Urban Revitalization Tax Exemption" Law; Options to Achieve Tax Abatement City's Authority to Abate Taxes for Urban Revitalization is Limited Under Iowa Law This is to confirm my legal advice given to you at the City Council meeting March 1, 1994. That is, if the City Council now wishes to proceed with the "Near Southside Commercial Urban Revitalization Plan" dated January 1994, with the "amendment" to include the "mandatory design review component," then the integrity of the legal process is flawed, and the validity of any "property tax exemption status" easily called into question. Since Iowa Home Rule does not include taxation, the City has no choice but to strictly follow the statutory procedures set out in state law granting tax exemptions. In other words, amending; the proposed urban,revitaliZation:Pflfri"is:not in' any way ,similar to, amending a resolution or an ordinance: This iS1because' an entirely different set of law governs tax abatement. One reason is that the Iowa Legislature has retained, to itself, powers of taxation: "4. A city may not levy a tax unless specifically authorized by a state law." Section 364.3(4), Code of Iowa (1993). State law also provides that "A city may exercise its general powers subject only to limitations expressly imposed by a state or city law," Section 364.2(2), Code of Iowa (emphasis added). This means that public comment should be elicited at a public hearing for urban revitalization after at least 30 days' notice, by ordinary mall, to all property owners In the proposed area, and public notice must be given by newspaper publication, ~404.2(3), Code of Iowa (1993). I I ~4~ o "9'" ' '1,:;' ',;.,,";';-.\',> )~ ' let , .' d. I' ,":tic,j " " .~. , M , ". ,\ '.\ I.'~ " '," ~ " ~. . . . . .' .,"... ....~. ';::.. ;: . ." . . ", :;':','.": ......: ~.'. .';::',_.:~'''." "..,...,...'.,....,...."..... -."-', s, , 2 The law does anticipate that some public comment will result in changes to the Plan, since Chapter 404 provides that an exemption is permitted only after The city or county has adopted the proposed or amended plan for the revitalization area after the requisite number of hearings." Section 404.2(6), Code Qf Iowa, (1993) (emphasis added). However, having discussed "mandatory design review," as well as clarifying "commercial properties with residential uses," the question now arises whether these amendments are de minimus and thus permitted, or are "substantive" --meaning the changes move the Plan in a direction not previously found in the Plan. While there is no "bright line" answer to this question, after further review of the statute and in discussions with Bill Noth, one of our bond counsel in Des Moines, it is my opinion that Iowa courts will likely view these two "amendments," at least at this juncture, as substantive in nature, and may thus call the entire legal process into question. In summary, I do not recommend proceeding with the original Plan at this juncture with the two substantive "amendments" to the Plan" namely design review and clarification. of "residential. uses," There are no doubt "owners; of record" within the- proposed revitalization Plan/area who CD may rise to the challenge, and my task is to preserve the integrity of the process. Nonetheless, you do have several options. Options to Achieve Tax Abatement I ( \ ," I The City has four options to achieve tax abatement, which I present to you for your consideration at your March 7 and 8, 1994 meetings. \ 1. Proceed with original "Near Southside Commercial Urban Plan," including the area, without "design review component" or "residential use" changes. '~ I If the City Council chooses this option, the City must afford property owners in the designated area an additional 30 day period after the March 1 hearing for "".property owners that represent at least 1 0 percent of the privately owned property" within the three-block area to file a petition with the city clerk, requesting the city council to hold a second public hearing. Section 404.2(3)-(6), Code. Once the 30 days have run (March 31, 1994) and in the absence of such a petition requesting a second public hearing, the City Council may proceed to vote on the original Plan and approve the Ordinance designating the area. Such approval of the Plat and final vote on the Ordinance could be at the City Council's next regularly scheduled meeting of April 12, 1994, but can be no earlier than April 1, 1994. 'Of I I I ! ;OJ As explained earlier, the ordinance designating the area as "Urban Revitalization Area" is intended to implement the Plan. Thus, final reading on the Ordinance should be only after approval of the original Plan. ",'I' ~'I l;~ ;-:1' I' l_ ( ~~ _ _~=.: ,~:~_n ~ - ,~ -~~- ,Q l ,~tt~ l~j5 ~[l ,~ " ,l.. .....-.... " ( ,\ ,~"\ \\ \\ i' \ , fo1 ! I I I i I I , I '~~ I' !. , I I :: i \'./ \"" ~ " I , ,.-" ~IOO ~.... 1".....-...; G~- '. _",'r'o.; .', ....;,. . ',' f' .;. . '. :~L~'(' -'1-', . . , . ',' " ..,. .'~ ' . 1 , . . {. . , . .' ." "".,~..~.,.,._,., ',:0':; ->:~,,:_, ; .....:",_'. .: c.; ",;';'..: :..11:....-:.;... ,.;..::" :;. ,;.-:' _ ,'.;., ,:,;',_~.,:.... ,; ;, ,~. C; ; .;-. ;,',: 2. Adopt the original Plan on the current schedule and adopt an amended Pllin thereafter. State law anticipates that after public comment and especially after a second hearing, the Plan may be amended: ",..The city or county may subsequently amend this plan after a hearing. Notice of the hearing shall be published as provided in section 362.3 or 331.305, except that at least seven days' written notice must be given and the public hearing shall not be held earlier than the next regularly scheduled city council or board of supervisors meeting following the published notice." Section 404.2(6), Code. If the Council elects this option, the current Plan could be adopted April 12, 1994, a public hearing be set for April 26, 1994, and the Clerk be directed to publish notice of the hearing. However, the Council would have to have specific changes to be made to the Plan, so that the Amended Plan could be available to the public. While this "AmE'naed Pial: is specifically contemplated by state law, it is not clear how "far afield" the "amended plan" may steer, and there are no court cases or attomey general opinions to guide us. Although I cannot say with complete certainty that no one would challenge the Amended Plan, it appears to be a statutory option. 3. Abandon the original Plan and direct staff to prepare a new Plan incorporating the City Council's changes, with a specific hearing date set (short time frame). If the City Council wishes to include the design review component, and to clarify what "commercial uses" would qualify for property tax exemption, and also wishes to avoid any concem over "substantive" vs. minor amendments, then the City Council should approve the Resolution of Abandonment and direct staff to prepare a new Plan. I have placed this resolution on your agenda . in the event you elect this option. However, since property owners must receive at least 30 days' notice by mail before a pulilic hearing can be held on the new Plan, you may only set a public hearing more than 30 days from March 8, 1994, to enable staff to prepare the changes and mail the notices. Assuming the City Council wants to proceed with the new Plan, I have also placed a new Resolution of Necessity and Setting a Public Hearing for April 12, 1994 on your agenda. This will not give the staff much time, but such action would cause the least delay. NOTE: You can amend, on the floor, the Resolution of Necessity to change the hearing date (for example to April 26). This amendment on the floor is permitted because this new Resolution of Necessity bealns a new leaal process of tax abatement. 3 ".. . , -,' ... 'I , , ~~ -. --" ')"".,'".,..,.,'. "Q., . ,_." I i5 10 " , ,.'; I ., L"'1cti;i " ',,'," I . .' . ' "t , .', \\!,~ .~, t>- .' ~.,: , -. . :,,', .~ .'-- ....'-,..., .' ,_."',,'-", ,,',.:.._,-,-..;~::,-..,:,_.; :,~,_..;_... .;',.;~'-'. .'-;.'".' ... 4 4. Abandon the current Plan and direct a new Plan be prepared by staff, without a specific hearing date set. This would require your passing the Resolution of Abandonment of current Plan and directing staff to prepare a new Plan. If you elect this option, the resolution of necessity setting the public hearing should be defeated as premature. Miscellaneous Explanation I have received a number of other questions, which I attempt to clarify: 1. If the City Council wishes to abandon the entire proposed urban revitalization Plan and area, the staff should be directed at your work session to prepare a Resolution of Abandonment of the current "Near Southside Commercial Urban Revitalization Plan," for action at a special meeting, or at your next regularly scheduled meeting March 29, 1994. That is, if you wish to abandon the entire urban revitalization project atthis juncture, a resolution of abandonment needs to be passed, but need not wait until the 30 days have passed. I did not place this on your agenda, since there did not seem to be a majority of Council members at the March 1, 1994 meeting in favor of entirely abandoning the Plan. ".. . I ' This action is requirecUo formalize the termination of any rights which may be accruing _ 0 either to property owners in the designated area t~y reason of objection, or by reason of potential benefit from the Plan. In other words, the City cannot just leave the existing Plan "dangling out there" without some formal action, one way or the other. 2. Any requirements for property eligibility must be applied to all property within the area and within the same assessment classification. If the City Council wishes to exclude residential uses, they should set forth that exclusion very explicitly so the City Assessor will not apply a different rule than the City Council intended. . , \ 3. i Public hearing is required after 30 days' notice, by ordinary mail, to property owners within the proposed designated area. This is an entirely different procedure than usually before you, such as zoning ordinances, utility rates, or disposal of public property. As to why this "public hearing" requirement is different, I believe I have already answered that - namely, cities are prohibited from levying taxes except as explicitly granted by state law. We must therefore follow the strict letter of the law for tax abatement purposes. 4. After the public hearing has been held (which the City did on February 15, and March 1, 1994), property owners within the proposed designated area who represent at least 10% of the privately owned property may then file a petition requesting a second hearing. These owners have 30 days from the first hearing to do so. The only reason this requirement is imposed upon you, again, is state law set forth in Chapter 404, Code of Iowa (1993). If the City wishes to enjoy the benefits of this tax abatement law, they must follow the law. , i "I '., I ,- "j ~.~ \~, ,.. I," 6LI:l , ',(__o~_r- ..... -.- ,- - - -- -- -~ - ] o ." " [' jl~ l. ..., .." iLl ",."..' ','J ..., ,.. . !-:. '. . ~. " ;.... ~mkQi(.::;.. .",~~~.; "i.: ~,., , ,> ;...~~.~' ~. .". . . ..i~. . .( ...; ",1 .\' . ";:'. ',-, ; ,'" '", . '. " . ..~'~_,,~-;~'w;,~:.~..;~~~~.;~::j~,,2~~,::~~;<;o.;.:~;ii;<~i,jLL~:J;::.:,~,',,~J2i~;...~~';.:J~"~~ .:2...._..L~~~..~:.__;~.'. : . .'.,.' " ,', , , ','....,.'. " :.......;. '. .....-..-._----_....---..---~-_-----._.., .' 5 In conclusion, there are no Iowa cases interpreting this statute, and I present this to you for your review and decision-making. I will be available for questions, as needed; and please do not hesitate to contact me at 356-5030 if you have further questions. i ,i I cc: City Manager City Clerk Assistant City Manager Karin Franklin, PCD Director' David Schoon, E::onomic Development Coordinator Marsha Bormann, Assistant City Attomey n'memos\urt>lax,lng '.' ; ,', '! ,.' r-' 1.." ~. . '.' " <) ~ I I " ~', , i I '. i o ~q~ "',.."'...'. 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