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Home My WebLink AboutAgenda - 02-26-1996 - 1a & b t 003 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: February 26, 1996 Agenda Abstract Item # 1 a&b SUBJECT: PROPOSED AMENDMENTS - EDUCATIONAL FACILITIES IMPACT FEE ORDINANCE DEPARTMENT: Planning PUBLIC HEARING: X Yes No BUDGET AMENDMENT REQUIRED: Yes X No ATTACHMENTS: INFORMATION CONTACT: Proposed Ordinance Amendments Planning Director X2592 PHONE NUMBERS: Hillsborough 732-8181 Mebane 227-2031 Durham 688-7331 Chapel Hill 967-9251 PURPOSE: To receive citizen comment on proposed amendments to the Educational Facilities Impact Fee Ordinance. BACKGROUND: The proposed amendments are intended to clarify the intent governing situations where existing buildings are converted to new public school space and where a landowner donates land for a public school site. Specifically, Section 5-C, Limitation on Expenditure of Funds, is proposed for amendment to clarify that public school impact fees may be used to convert existing buildings into new public school space. Section 6, Credits, is also proposed for amendment to clarify that dedication of a public school site may qualify the landowner, not the developer, for a credit against payment of public school impact fees. Correspondence from the County Attorney explaining the rationale for the proposed amendments is provided as an attachment. Action on the proposed amendments may be taken immediately following the public hearing. RECOMMENDATION: The Administration recommends approval of the proposed amendments. V� PROPOSED ORDINANCE/PLAN AMENDMENT ORDINANCE/PLAN: EDUCATIONAL FACILITIES IMPACT FEE ORDINANCE REFERENCE: Section 5-C Limitation on Expenditure of Funds Section 6 Credits ORIGIN OF AMENDMENT: _X_Staff Planning Board_X_BOCC Citizen _Other:_County Attorney STAFF PRIORITY RECOMMENDATION: High Middle Low PUBLIC HEARING DATE: February 26, 1996 PURPOSE OF AMENDMENT: To amend the Educational Facilities Impact Fee Ordinance to clarify the intent governing situations where existing buildings are converted to new public school space and where a land owner donates land for a public school site. IMPACTS/ISSUES: The rationale for the proposed amendments to the Educational Facilities Impact Fee Ordinance is explained in the attached correspondence from the County Attorney. EXISTING/PROPOSED ORDINANCE/PLAN PROVISIONS: Applicable sections of the ordinance are shown below. Text to be deleted is shown in str-iletlizeugh highlighting, while new wording is shown in boldface italics type. Section 5-Collection of Fees 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: 1. Funds shall be used for capital costs associated with the construction of new public school space, including new buildings, of 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. 006 3. Funds may be used for providing reimbursements as permitted in Section 5.E. 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 sha1I 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. Section 6-Credits 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 4&veleper s landowner may, at the election of lite 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 develepeF wishes landowner elects to receive credit against the amount of the public school impact fee due for such conveyance or construction,the develeper- 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 developer 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, ands 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. ********************************************************************************* ORDINANCE REVIEW COMMITTEE: PLANNING BOARD REVIEW: BOARD OF COMMISSIONERS REVIEW: LAW CFFICE COLEMAN, GLEDHIL L & HARG RAVE ALO=U0V,,C0LMAA .X 129 L UTOW S3RFFf DOl>riJ1S 3iA K P.O.Mwa 2s" KW r.Sn"AV Hn SMOW nN.N=rtf GROI.LYA 27278 1�+ET 1 DVT7{01+ 0019!132.219 DOL"As P.TWOM FAX 00)732.19". December 8, 1995 SAMM err OOL,E ,N Mr, John M. Link, Jr. Orange County Manager Post,.office Box 8181 Hillsborough, North Carolina 27278 RE:: rApact Fees - Renovations to 8illsborough Elementary School (old Stanback Riddle School] School Capital Expense in the Chapel Sill-Carrbb=o School SystM With the Supplemental District Tak Dear John: � i I have reviewed your proposed letter to William Har4son and the enclosed memorandum from Sally Kost to me about the prospects of using the impact fee collected within the Orange County; School f System for use in putting into service the old Stanback X#ddle School for use during the next school year as an elementary school. In order to make the existing school usable as the new Hillsborough Elementary School it will require new furnishings, a media center and changes to stairwells and restrooms. As; I ' understand it, the plan to use the new Hillsborough Elementary School could eliminate the need for a new elementary school in ., ! the Orange County School System planned to be in service for the 1999-2000 school year. The 1993 technical report adopted by the Board of County Commissioners in connection with the Impact Fee Ordinance; projects the need for one elementary school in the Orange; County School System for the fiscal year 1997-98. Also, the County's 1995-2005 Capital Budget projects the construction of onelnew elementary school in the orange County Schooi District through,- the year 1999. This need is reflected in the updated Technical Report adopted by the Board of Commissioners in May 1995., : The : impact fee now being collected for new construction in the Orange County School District is based on that projected need. The upgrade and reuse of the old Stanback Middle School as thft 1 Hillsborough Elementary School will, at least in part, replace' the need for the new elementary school during the 1999-2000 fiscal year. As such, the fees collected and now held in' the c i I i } a_ ► �a8 ' Mr. Jahn X. Link, Jr. Page 2 December 8, 1995 Orange County School District Impact Fee Trust can be made available for the capital expenses necessary to bring this new elementary school on line with a minor Impact Fee Ordinance amendment. The Impact Fee Ordinance contains, in Section 5C, a limitation on the expenditure of funds from the "public school impact. fee trust accounts. " These funds may only be spent as ; follows Funds shall be used for capital costs associated with the construction of new public school space, including new buildings or additions to existing buildings where the expansion is related to new residential growth. Such capital costs include actual building construction; desk%, engineering, and/or legal fees; land acquisition and sitd• i development; equipment and furnishings; infrastructure improvements; and/or debt service payments and payments under leases through which to finance such costs. Arguably, the furnishing of and renovations to the old Stanbadk i Middle School could be characterized as "additions to existing buildings" or "infrastructure improvements. " A more likely ! interpretation, however, is that they Would not be either and! , that additions mean new classrooms and other building additions I and infrastructure improvements means water and sewer type improvements. This is an easy fix, however. The first sentence i of the indented paragraph above can be amended to read: Funds shall be used for capital costa associated with the construction of new public school space , including new buildings, additions to existing buildings or otherwise converting exi tine buildings into new public school shame whe=e the expansion is related to new residential growth. By.adding the underlined language above, the County can solve the immediate school conversion problem and be in a position to handle similar school capital projects needed to accomplish expansion of school facilities where the expansion is related. to new residential growth. The ordinance amendment could be done at any time as i directed by the County Commissioners and following a public hearing. I can work with Marvin on the public hearing notice. on short notice. As to your proposed letter to Dr. Harrison, I think you should mention the need for a minor impact Fee Ordinance amendment to accomplish funding the new school renovation costs with the impact fee and the need for Board of County Commissioner approval of that amendment. f ` 009 Mr. John M. Link, Jr. Page 3 j December 8, 1995 I I have enclosed a copy of the March 29, 1995 letter that I wrote to the Board of Commissioners responding to the various funding proposals made to the Board of Commissioners during the: public meetings and hearing held earlier this year. one of those proposals was using the Chapel Hill-Carrboro District Supplemental Tax for capital. As that memo indicates at i , 1 paragraph V, the proceeds of that tax are not available for capital. As we discussed in your office on Thursday, thisi limitation on the use of the supplemental tax in all likelihood, can�be changed by an election. I will review the specific requirements of such an election as the idea of using the supplemental tax for the capital needs of the Chapel Sill ! Carrboro .School System is explored. ! i Very truly yours, COLMN M DHILL k HRRGRAVE, P.C. l ' a Ge frey E. edhill t • GEG/lsq ' , � lag\home3\lisilc.ltr � ! ' i •i 1 i ! i I t ' 1 1 O 1 1 (AQ MW 1 ' MbkAN AGLEDHILL & HARGRAVE �towa a iir.m A MCI ' �r5aee a®otlsirr E;aaL'`�''' coay�s w%"AW 124 L ZA70N SMW 19f IL FrIMAK.r F.o.DRAM LW � HML96R000K NORTH CAROLM 22r$ DOU A ashy airaws r.rACAM , X191: •1196 SAMM Ur CM04 H I FAX OM 732.1597 July 12, 1995 Mr. Marvin Collins Planning Director Orange County Planning. Department Post Office' Box 8181 Hillsborough, North Carolina 27278 Dear Marvin: Enclosed is a rewrite of Section 6, Credits, of the County's Educational Facilities impact Fee Ordinance. I think this rewrite more clearly expresses the intent of the County Commissioners in the Credit section of the Ordinance. As presently written it is possible to interpret Section 6 as reghiring impact fee credit even where a donation is intended liy the: land owner. Also,! the rewrite uses the tem land owner rather than developer as a further clarification. I regard the changes proposed as being ones of •clarification. " Nevertheless, they still should go to public' hearing and I recommend that they do so as soon as possible. very truly yours, CM QJM031L i EARMVE, P.C• rey E. ill GEG/lsg Enclosure xc:' John. M. Link, Jr. lsg\rioee3\mcollil5.ltr ' 1 r 012 SECTION 6 - CREDITS 1 Any conveyance of land for a public school site jor construction of new school facilities received and accepted !by Orange County, a municipality located in Orange County, and/or *he Dora ge County or Chapel Hill-Carrboro School Board from a i� be credited agains e p is ac oo impact ee ue i e conveyance ;or construction meets the same needs as the public school impact fee in roviding new public school facilities. if the devel_r__ virwhes to receive credit against the amount of the public scr,Lool impacs eo due for such conveyance or construction, �he develepee "` shall, prior to the agreement to convey land for :or cons c sew 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 P .1'.yPayment. of the fee in a s ifisd manner and tine The value of land conveyed or facilities constructed de pile+�� and accepted by the County, municipality {or school boar or purposes of this section shall be determined bylan appraisal based on the fair market value of the land or facilities as established by the County. Construction shall be in accorda0ce with applicable County, municipal, school board, ands State standards. Any land conveyed for credit under this section shill 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 deeaed paid when the construction is completed and accepted for maintenance or when adequate security for the completion of the construction has been provided. 1s9\hame3\sec6.imp ' i 1 i i 1 i 1