HomeMy WebLinkAboutORD-2006-008 - ORANGE COUNTY EDUCATIONAL FACILITIES IMPACT FEE ORDINANCE AMENDMENTS0P1V- aoo6 -06C91
ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: February 27, 2006
Action Agenda
Item No. D.1
SUBJECT: Orange County Educational Facilities Impact Fee Ordinance Amendments
DEPARTMENT: Planning and Inspections
ATTACHMENT(S):
1. Copy of Educational Facilities Impact Fee
Ordinance with Proposed Amendments
PUBLIC HEARING: (Y /N) Yes
INFORMATION CONTACT:
Craig Benedict, (919) 245 -2592
Geof Gedhill
PURPOSE: To receive public comment on proposed amendments to the Orange County
Educational Facilities Impact Fee Ordinance intended to differentiate between single family
detached residential dwelling units and all other residential types, and to define where an
impact fee exception may be appropriate when a dwelling unit is moved to a new lot.
BACKGROUND: The Orange County Educational Facilities Impact Fee Ordinance, adopted in
1993 and amended in 1995, 1996, and 2001, needs further amendments to provide clarification
and aid in administration of the Ordinance. Amendments to the following sections of the
Ordinance are proposed:.
SECTION 2 — DEFINITIONS:
Amend the definition of Dwelling Unit consistent with the State Building Code and provide
definitions and examples for the following terms: single family detached, all other residential
types, and new residential dwelling unit. The Ordinance identifies two levels of impact fee in
each school district based on the type of new residential dwelling unit. A "single family
detached residential dwelling unit" is charged a higher fee than "all other residential types."
Proposed amendments provide definitions and examples for the residential types to ensure that
a fee payer is assessed at the proper rate.
SECTION 4 — PUBLIC SCHOOL IMPACT FEE EXCEPTIONS
Add an impact fee exception when a dwelling unit is moved to a new lot. Impact fees are not
imposed on structures and buildings that existed on the effective date of the Educational
Facilities Impact Fee Ordinance or that, if constructed or erected after the effective date of the
Ordinance, have been determined in the Ordinance will not materially affect current levels of
service of public school facilities. It is proposed to add to this class of buildings or structures a
residential dwelling unit which is moved to a previously undeveloped lot and where the lot from
which the moved residential dwelling unit was located and the lot to which the moved residential
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dwelling unit will be located are both in the same "public school benefit area." Two options
are under consideration. The first option would require that the lot from which the residential
dwelling unit is moved be extinguished as a residential dwelling lot, therefore, providing for the
impact fee exemption to no longer "run with the land." The second option would require that an
impact fee be imposed on the lot from which the residential dwelling unit was moved if, in the
future, another residential dwelling unit were located on that lot, in effect providing for the
impact fee exemption to "run with the dwelling unit."
FINANCIAL IMPACT: Other than advertising costs, there are no direct financial impacts
associated with hearing public comments on this item.
RECOMMENDATION(S): The Manager recommends that the Board, 1) close the public
hearing, and 2) adopt the proposed amendments to the Educational Facilities Impact Fee
Ordinance:
a. At this time and meeting, or
b. At the March 21, 2006 meeting.
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Proposed Amendments: Strikethraugh = delete. Red = new text. 3
ORANGE COUNTY EDUCATIONAL FACILITIES IMPACT FEE ORDINANCE
SECTION 1 - LEGISLATIVE FINDINGS
The Orange County Board of Commissioners makes the following legislative
findings:
1. Orange County public school facilities are vital to the health, safety,
welfare, and economic prosperity of Orange County;
2. That public school facilities in Orange County must be expanded in order
to maintain current levels of service if new development is to be
accommodated without decreasing current levels of service;
3. To finance the expansion of the public school facilities in Orange County
necessary to maintain current levels of service while accommodating new
residential growth, several methods of finance will be employed, one of
which will require new residential development to pay an appropriate
share of the reasonably anticipated new educational facilities in the form
of school impact fees; and
4. These school impact fees will provide, in a reasonable manner, for the
public health, safety, and welfare of persons residing within Orange
County by providing a portion of the costs of new school facilities which
bears a relationship to the benefits of the new school facilities to the new
residential growth in Orange County.
SECTION 2 - DEFINITIONS
For the purposes of this ordinance, the following terms shall have the following
definitions:
All Other Residential Types. A singlewide manufactured home located on an
individual lot or in a mobile home park; or a building or lot containing two or more
dwelling units each considered individually including, but not limited to: duplexes,
town homes, condominiums, apartments, and efficiency apartments.
Certificate of Occupancy. A certificate issued by Orange County or a
municipality located therein allowing the occupancy or use of a dwelling unit and
certifying that the building or structure has been constructed and will be used in
compliance with all applicable codes and ordinances.
Dwelling Unit.
habitable unit with fadllitieS used 9F intended to be used fbr lly8ng, sle
. A single unit providing complete independent
living facilities for one family, including permanent provisions for living, sleeping,
eating, cooking and sanitation. Units otherwise meeting this definition, but
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occupied by transients on a rental or lease basis for periods of less than one
week shall be construed to be lodging units.
Efficiency Apartment. An additional dwelling unit accessory to a single family
detached residential dwelling unit that meets the following criteria:
1. The efficiency unit contains no more than 800 square feet of gross floor
area;
2. The lot meets the minimum lot size requirements of the zoning district in
which it is located;
3. The efficiency unit complies with the North Carolina State Residential
Building Code as a dwelling unit;
4. The efficiency unit remains in the same ownership as the primary
residence; and
5. There 'shall be no more than one (1) efficiency apartment, whether
attached or detached, on any lot.
Feepayer. The person constructing or responsible for having constructed a new
dwelling unit or new dwelling units. In the case of a mobile home, the person
installing or responsible for having installed a new mobile home or new mobile
homes.
Single Family Detached Residential Dwelling Unit. A detached building
containing one dwelling unit including, but not limited to: stick -built structures;
multi -wide manufactured homes (units constructed and labeled in accordance
with HUD standards); and modular homes (units constructed and labeled
according to the North Carolina State Building Code — Residential).
SECTION 3 - SCHOOL IMPACT FEES IMPOSED ON NEW RESIDENTIAL
DWELLING UNITS
In addition to all other charges prescribed by ordinance or resolution now or
hereafter in effect, there shall be public school impact fees charged to new residential
dwelling units located within Orange County, and within the municipalities and their
extraterritorial planning jurisdictions located within Orange County. No person may
occupy any new residential dwelling unit until all applicable public school impact fees
contained in the following schedule have been paid in full. No certificate of occupancy
or other type of occupancy permit shall be issued for any new residential dwelling unit
until the public school impact fees hereby required have been paid in full. Payment of
such fees shall not relieve the feepayer from the obligation to comply with applicable
land development regulations of Orange County or the municipalities located within
Orange County.
Schedule of Public School Impact Fees
The amount of the public school impact fee will be $3,000' per single family
detached residential dwelling unit and $1,4201 per residential dwelling unit for all other
residential types in the Orange County School District.
Amended June 25, 2001; effective July 1, 2001.
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The amount of the public school impact fee will be $4,407' per single family
detached residential dwelling unit and $1,979' per residential dwelling unit for all other
residential types in the Chapel Hill - Carrboro School District.
SECTION 4 - PUBLIC SCHOOL IMPACT FEE EXCEPTIONS
Public school impact fees as provided in Section 3 shall not be imposed in the
following circumstances:
1. Buildings or structures, including alterations, repairs, renovations or
additions thereto, which are to be occupied and used solely for non-
residential purposes.
2. Residential dwelling units for which a building permit was obtained prior to
the effective date of this ordinance.
3. Alterations, repairs, renovations or additions to a residential dwelling unit.
4.2 Replacement of a building, structure or mobile home used for residential
purposes, including the following:
a. Installation of a replacement mobile home on a separate lot or
mobile home park space when an educational facilities impact fee
for such lot or space has been previously paid pursuant to this
ordinance or where a residential mobile home legally existed on
such lot or space on or before the effective date of this ordinance.
For the purposes of this ordinance, 'legally existed" shall mean that
a mobile home was located on the lot or space during the five -year
period prior to the date of adoption of this ordinance.
b. Replacement of a building, structure or mobile home damaged,
destroyed or partially destroyed by: the exercise of eminent
domain; human acts, such as riot, fire, accident, explosion; or flood,
lightning, wind or other natural calamity, with a new building,
structure or mobile home.
A residential building, structure or mobile home may be replaced with a
new building, structure or mobile home of the same or dissimilar
dwelling type. For example, a mobile home may be replaced with a
mobile home. Likewise, a mobile home may be replaced with a stick -
built structure. In either case, however, the number of dwelling units
may not be increased.
2 Amended April 3, 1995.
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c. When an existing dwelling unit is replaced with a new dwelling
unit, and the original dwelling unit is relocated to a location not
previously used for residential purposes, a public school impact
fee will be charged on the dwelling unit at the new location.
d. If the lot from which a dwelling unit is being moved ceases to be
used for residential purposes as a result of, but not limited to,
rezoning, redevelopment, or the exercise of eminent domain, then
a public school impact fee will not be charged for moving the
dwelling unit to a new location in the same school district.
5. Accessory buildings and structures, including, but not limited to, garages,
decks, storage buildings, and similar structures, provided they are not
used for residential purposes.
6.3 Temporary buildings and structures, provided they are not used for
residential purposes. However, public school impact fees shall not be
levied in the following cases:
a. A mobile home being used to provide custodial care under the
provisions of an approved Special Use Permit.
b. A mobile home being used as a temporary residential dwelling
during the installation of a replacement mobile home or the
construction of a stick -built dwelling unit.
3 Amended April 3, 1995.
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SECTION 5 - COLLECTION OF FEES
A. CREATION OF PUBLIC SCHOOL BENEFIT AREA TRUST FUNDS
Public school impact fees collected by Orange County pursuant to this ordinance
shall be kept separate from other revenue of the County. There shall be one trust fund
established for each of the benefit areas. The benefit areas correspond to the school
district boundaries as determined by the School Districts and as illustrated on the
attached map labeled Public School Benefit Areas.
B. RESPONSIBILITY FOR FEE COLLECTION
All public school impact fees are due to Orange County and shall be paid to
Orange County prior to a certificate of occupancy being issued for a dwelling unit. The
fees will be collected by Orange County and /or by interlocal agreement between
Orange County and a municipality located therein. All public school impact fees shall
be properly identified by the appropriate benefit area and transferred for deposit in the
appropriate trust account.
Where there is an interlocal agreement in effect for collection of the public school
impact fees by a municipality, the municipality shall remit the fees to Orange County as
provided in the agreement, including a report of the amount of funds collected and the
benefit area from which the fees were collected. Upon receipt, the County shall deposit
the fees in the appropriate trust fund.
C. LIMITATION ON EXPENDITURE OF FUNDS
Funds withdrawn from public school impact fee trust accounts shall be used
solely in accordance with the following provisions:
0 Funds shall be used for capital costs associated with the construction of
new public school space, including new buildings or additions to existing
buildings or otherwise converting existing buildings into new public school
space where the expansion is related to new residential growth. Such
capital costs include actual building construction; design, engineering,
and /or legal fees; land acquisition and site development; equipment and
furnishings; infrastructure improvements; and /or debt service payments
and payments under leases through which to finance such costs.
2. Funds shall be used exclusively for capital improvements within the
benefit area from which the funds were collected.
3. Funds may be used for providing reimbursements as permitted in Section
5.E.
4 Amended April 3, 1995; February 26, 1996.
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4. No funds shall be used for public school operating expenses, periodic or
routine maintenance, or the administration of this public school impact fee
program.
5. Following their collection, funds shall be expended within ten (10) years,
the time frame coinciding with the public school facilities capital
improvements program (CIP) school impact fee period.
The disbursal of public school impact fee funds shall require the approval of the
Board of County Commissioners upon recommendation of the County Manager.
D. INTEREST ON FEES
Any public school impact fee funds on deposit and not immediately necessary for
expenditure shall be invested as allowed in N.C. General Statute 159 -30 for other public
moneys. All income derived shall be deposited in the applicable trust fund.
E.5 REIMBURSEMENT OF FEES
Any funds not expended within the time frame established in Section 5.C.5. shall
be returned to the feepayer, or the land owner if the address of the feepayer provided to
Orange County is not current, with interest at a rate not to exceed that being paid on
public school impact fees deposited in accordance with Section 5.D.
If the Schedule of Public School Impact Fees as contained in Section 3 is
reduced, the difference between the old and new fees shall be returned to the feepayer,
or the land owner if the address of the feepayer provided to Orange County is not
current, with interest at a rate not to exceed that being paid on public school impact
fees deposited in accordance with Section 5.D. If the Schedule of Public School Impact
Fees as contained in Section 3 is increased, no additional fees shall be collected from
new construction for which certificates of occupancy have been issued.
Where an impact fee has been collected erroneously, or where an impact fee
has been paid, and the feepayer subsequently files for and is granted an exception as
permitted in Section 4, the fee shall be returned to the feepayer. Application forms and
instructions for requesting impact fee reimbursement can be obtained from the Orange
County Planning and Inspections Department.
5 Amended April 3, 1995.
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F. ANNUAL REPORT
A report shall be made to the Board of County Commissioners each year
showing where public school impact fees have been collected, what projects have been
constructed with such fees, and what reimbursements have been made. The report
shall also include an evaluation of this ordinance, including its effectiveness and
enforcement, and the methods and data used to calculate the Schedule of Public
School impact Fees contained in Section 3.
The Board of County Commissioners shall review the report to determine if,
within each benefit area, all areas of new construction are being benefited by the fees.
If the Board of County Commissioners determines that areas of new construction are
not being benefited, then it shall readjust the capital improvements program to correct
this condition. If, after review of the methods and data used to calculate the Schedule
of Public School Impact Fees, the Board of County Commissioners determines that
adjustments are required in the Schedule, then it shall direct the County Manager and
staff to prepare a report which outlines recommended changes for its consideration.
SECTION 6 - CREDITS6
Any conveyance of land for a public school site or construction of new school
facilities received and accepted by Orange County, a municipality located in Orange
County, and /or the Orange County or Chapel Hill - Carrboro School Board from a
landowner may, at the election of the landowner, be credited against the public school
impact fee due if the conveyance or construction meets the same needs as the public
school impact fee in providing new public school facilities. If the landowner elects to
receive credit against the amount of the public school impact fee due for such
conveyance or construction, the landowner shall, prior to the agreement to convey land
for or construct new public school facilities, or the conveyance of land for or
construction of new school facilities, enter into a fee agreement with the County. The
fee agreement shall provide for the establishment of credits and payment of the fee in a
specified manner and time, and shall, upon its execution by the landowner and the
County, be binding upon the heirs and assigns of the landowner.
The value of land conveyed or facilities constructed by a landowner and
accepted by the County, municipality or school board for purposes of this section shall
be determined by an appraisal based on the fair market value of the land or facilities as
established by the County. Construction shall be in accordance with applicable County,
municipal, school board, and State standards. Any land conveyed for credit under this
section shall be conveyed no later than the time at which public school impact fees are
required to be paid. The portion of the public school impact fee represented by a credit
for construction shall be deemed paid when the construction is completed and accepted
for maintenance or when adequate security for the completion of the construction has
been provided.
6 Revised February 26, 1996.
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SECTION 7 - PENALTIES
In addition to any other remedy allowed by N.C. General Statute 153A -123, the
failure to pay a public school impact fee is hereby declared to subject the person
responsible for payment of the public school impact fee to a civil penalty. The amount
of the penalty shall be equal to the amount of the unpaid school impact fee, plus an
interest charge of one -half percent (1/2 %) per month compounded monthly and a
service charge of one hundred dollars ($100.00).
The County may assess this penalty against the landowner whereon new
construction has occurred without payment of the public school impact fee. However,
no service charge will be. assessed when the County staff has made an error in the fee
determination. Furthermore, no penalty shall be assessed until the person or persons
alleged to be in violation are served by registered mail, certified mail - return receipt
requested, or personal service with notice to pay.
The County Attorney is hereby authorized to institute a civil action in the name of
Orange County in the appropriate division of the General Court of Justice in Orange
County for recovery of the penalty. All moneys recovered shall be deposited in the
appropriate trust fund.
SECTION 8 - LEGAL STATUS PROVISIONS
All ordinances and clauses in conflict herewith are hereby repealed to the extent
of said conflict. If any clause or section of this ordinance or application thereof to any
person or circumstance is held invalid, such invalidity shall not affect other provisions or
application of this ordinance which can be given separate effect, and, to this end, the
provisions of this ordinance are declared to be severable.
This ordinance shall not diminish any prior contractual or special or conditional
use district zoning obligation to pay for or install road, park or other improvements
required by Orange County or a municipality located therein, nor shall the fulfillment of
those obligations diminish any applicable public school impact fee owed to the County.
This ordinance shall not diminish any prior obligation of the-County or a municipality
located therein to reimburse persons for road, parks or other improvements, nor shall
the fulfillment of those obligations by the County or a municipality diminish any
applicable credit owed to the feepayer.
SECTION 9 - APPEAL TO THE ORANGE COUNTY BOARD OF ADJUSTMENT
[Reserved]
SECTION 10 - EFFECTIVE DATE
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This ordinance shall be effective from and after the 1st day of July, 1993. This
ordinance shall only apply to residential dwelling units for which building permits are
issued on and after the effective date of the ordinance or any amendment thereto.
Adopted this 7th day of June 1993.
Amended: April 3, 1995
June 5, 1995
February 26, 1996
June 3, 1996
June 25, 2001
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D. ORANGE COUNTY EDUCATIONAL FACILITIES IMPACT FEE ORDINANCE
AMENDMENTS (BOCC Public Hearing)
1. Amendments to Orange County Educational Facilities Impact Fee Ordinance
Amend Section 2 — Definitions, for consistency with the State Building Code and to
provide definitions and examples for the following terms: single family detached, all
other residential types, and new residential dwelling unit.
Amend Section 4 — Public School Impact Fee Exceptions, to add an impact fee
exception when a dwelling unit is moved to a new lot.
Craig Benedict said that this is a public hearing on the Orange County Educational
Facilities Impact Fee Ordinance. The original ordinance was put into effect in the early 90's and
has been modified occasionally. The changes tonight have to do with definitions and the
exceptions. He made reference to page three of the ordinance and the areas in red, which is
the suggested new language for definitions. The exception section is on page six of the
abstract. He explained the two items in red on page six.
Chair Jacobs said that no member of the public has signed up to speak to this item.
Allan Rosen said that he would like for the County Commissioners to pay particular
attention to those situations of an efficiency apartment on an R1 or single - family lot and that it
also not require a 100% impact fee in specific situations (mother -in -law apartments or other
extended family members).
Craig Benedict said that when the original impact fee study was done, there was not a
clear differentiation of all the different categories. He said that the efficiency apartment would
be clustered as another residential unit, which would be $1,420 per unit in Orange County and
$1,979 in Chapel Hill /Carrboro. If there can be credible information about different types of units
and different definitions, they can more clearly assess the impacts of how many children come
forward from these types of apartments.
Chair Jacobs made reference to the moving of the lots and said that it is missing one
permutation - if someone moves a building from a lot and they have already paid an impact fee
and they move it to a new spot, he sees no logic in extinguishing the development rights on the
lot they left in order to preclude them from having to pay an impact fee again. He said that if a
new structure is built on the lot they left, it seems logical that the new structure would have an
impact fee associated with it. He does not understand why this is not the most logical
possibility.
Geof Gledhill said that the reason that the recommendation is the other way is that
impact fees are land use regulations that run with the land and not with the buildings. A new
house on a lot that had a house on it before would not trigger an impact fee.
Chair Jacobs asked for something in writing analyzing this. He thinks that this is
unnecessarily restrictive.
Commissioner Gordon made reference to page six, item `d', and said that it does not
make clear that the person doing this has any say in whether the development rights are
extinguished or not. She suggested rewording it so that the development rights are not
accidentally extinguished. Geof Gledhill agreed with the suggestion and said that one of the
premises of the whole analysis is that the reason why the house is available is because of some
change in the property and there will be something else going on. He will try and make this
clearer and provide an analysis for Chair Jacobs.
Commissioner Halkiotis made reference to the comments by Allan Rosen and asked
what prompted the staff to come back with the efficiency apartment piece. Craig Benedict said
that there have been requests more recently from Carrboro that allow for these apartments to
be built more liberally on the typical single - family lot. Orange County has always had the
restriction for not more than 800 feet of additional structure for accessory residential uses.
Commissioner Halkiotis asked Craig Benedict if he saw a difference in Carrboro that
also may be appealing to a graduate student market and not necessarily an aging senior citizen
market. Craig Benedict said that there are a lot of different uses for the additional apartments.
Commissioner Halkiotis said that he has heard this issue raised with citizens over the
last few years, and people are building extra rooms for their parents. In a case like this, he
sides with the citizens because this would not be impacting the schools.
Chair Jacobs said that if the public hearing is being left open, then they do not have to
decide on this tonight. He verified with Geof Gledhill that he would be bringing back a report on
the issue of moving a house and providing an exception to the impact fee.
E. ORANGE COUNTY COMPREHENSIVE PLAN, LAND USE ELEMENT UPDATE
1. Draft Land Use Element Text Update
This is the second of a three -part public hearing process for the Comprehensive Plan,
Land Use Element (LUE) Update and is to present the LUE text update. Among other
things, the update will:
• Incorporate 2000 US Census data;
• Reflect new growth trends;
• Revisit Goals, Objectives, and Policies;
• Include new subdivision data;
• Revisit Future Land Use Map categories and descriptions;
• Achieve desired land uses and densities; and
• Develop a more user friendly and understandable document.
The first public hearing was opened on November 21, 2005.
Planning Board Chair Jay Bryan introduced this item.
Comprehensive Planning Supervisor Tom Altieri reviewed some background
information, including what a land use element is and where the County is in the update
process. There have been outreach meetings in all townships and staff developed a rough draft
of the text and staff received written comments from the Planning Board on the draft text. He
said that the land use element text is being updated to incorporate 2000 US Census data; to
reflect new growth trends; to revisit goals, objectives, and policies; to include new subdivision
data; to revisit future land use map categories and descriptions; to achieve desired land uses
and densities; and to develop a more user - friendly and understandable document.
Tonight is the second of a three -part public hearing process for the land use element
update. This public hearing will remain open until the May 22nd public hearing is held. The land
use element is a policy guide and not a regulatory document and must be implemented through
the zoning ordinance and /or subdivision ordinance. Per County ordinance, prior to the May
public hearing, Planning staff will be sending a mail notice to any property owner affected or
within 500 feet of an area to be affected by any future land use map amendment or zoning map
amendment. The Board of County Commissioners will be hearing public comments at the
public hearing before referring all of the items to the Planning Board for their recommendation
anticipated in June or July of this year. The County Commissioners will close the public hearing
at a subsequent meeting and a decision could be made as early as August 22 "d
The citizens can obtain a copy of the draft text on the County's website — at the
"Agendas" link under the February 27th Quarterly Public Hearing. It is also available at the
Planning and Inspection homepage. Hardcopies are available for review at the Planning