HomeMy WebLinkAboutAgenda - 04-04-2017 - 6-d - Petition Requesting Adjustment to Resolution Regarding Grandfathering of Projects for School Impact Fee Collection Purposes 1
ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: April 4, 2017
Action Agenda
Item No. 6-d
SUBJECT: Petition Requesting Adjustment to Resolution Regarding Grandfathering of
Projects for School Impact Fee Collection Purposes
DEPARTMENT: Planning and Inspections
ATTACHMENT(S): INFORMATION CONTACT: (919)
1. Adopted Resolution Craig Benedict, Planning Director, 245-
2. Petitioner Request 2592
3. Staff-Recommended Revised John Roberts, County Attorney, 245-2318
Resolution Perdita Holtz, Planner III, 245-2578
PURPOSE: To consider a petition submitted at the February 21, 2017 Board of County
Commissioners (BOCC) meeting regarding grandfathering of projects for school impact fee
collection purposes.
BACKGROUND: On December 13, 2016, the BOCC adopted a Resolution Regarding
Grandfathering of Projects for School Impact Fee Collection Purposes (Attachment 1). The
resolution was in response to concerns raised during deliberations that occurred in the fall of
2016 which resulted in updated school impact fees being adopted on November 15, 2016.
On February 21, 2017 representatives of "Townhouse Apartments" located in Chapel Hill
attended the BOCC meeting to submit a petition to adjust language in the grandfathering
resolution to accommodate their ongoing plans to renovate/expand their existing apartment
complex (see Attachment 2). The Townhouse Apartments petition includes suggested language
to be added to the grandfathering resolution. The suggested additional language essentially
would allow projects of 90-units in size or greater to be subject to 2016 impact fee levels if the
project:
• Had obtained a specific lesser level of permitting than the currently required Zoning
Compliance Permit (ZCP) by January 1, 2017, and
• Submits a building permit application prior to January 31, 2019 (current date for this
milestone is January 1, 2018).
Additionally, the suggested language would require payment of the fee prior to December 31,
2020 (the current language requires the fee be paid by June 30, 2019). The suggested
language keeps the current "outer limit" of December 31, 2020 for issuance of a Certificate of
Compliance (formerly known as a Certificate of Occupancy).
The petition was referred to staff to gather further information on the project. Staff
worked on the petition and tentatively scheduled the grandfathering request for hearing
at the April 18, 2017 regular meeting of the BOCC. Before the BOCC could consider the
2
petition, two bills were filed in the North Carolina House of Representatives (House) that
potentially severely impact Orange County's ability to fund school capital needs.
On March 20, 2017 House Bill 406 was filed in the House. If it passes, House Bill 406,
which specifically targets Orange County, will strip the County of its authority to levy
impact fees. On March 22, 2017 House Bill 436 was filed in the House. House Bill 436 is
similar to House Bill 406 in that it would strip the County of its impact fee levying
authority. Unlike House Bill 406, House Bill 436 targets numerous jurisdictions
throughout the state and eliminates all regulatory fees on new construction unless the
fee is specifically authorized by general law. Should either bill pass Orange County will
lose millions of dollars annually that is used to assist in school capital projects. This will
leave a deficit that ultimately must be filled with a tax increase that requires all property
owners in Orange County to pay for the costs of new development.
Staff has analyzed the submitted petition and suggests revising the dates in the current
resolution to allow for a longer grandfathering period for projects 90-units or greater in size
rather than adopting the language suggested by the petitioner which is tailored for a specific
project. Other projects that are currently in various planning phases could potentially take
advantage of the longer grandfathering period if submittal deadlines are met.
Staff shared the staff recommendation with the petitioner. The petitioner provided the following
suggestions:
• Move the staff-recommended Zoning Compliance Permit (ZCP) issuance date of July 31,
2017 out to December 31, 2017; alternatively, require only submission of the ZCP
application by May 15, 2017.
o Staff notes an alternative exists where the ZCP submission is in May and the
issuance is in December. Petitioner's position on this alternative was unclear at
the time of publication.
• Move the Building Permit application date from January 1, 2019 to January 31, 2019.
• Move the fee paid-by date from June 30, 2019 to June 30, 2020 (to be more in-line with
the Certificate of Compliance date of December 31, 2020).
In accord with the attached resolution, the BOCC intends that any additional grandfathering
requests for projects 90-units in size or greater must be submitted prior to July 31, 2017.
FINANCIAL IMPACT: Allowing for a longer grandfathering period is likely to result in a lesser
amount of school impact fee collections than might otherwise be collected.
SOCIAL JUSTICE IMPACT: The following Orange County Social Justice Goal is applicable to
this agenda item:
• GOAL: ESTABLISH SUSTAINABLE AND EQUITABLE LAND-USE AND
ENVIRONMENTAL POLICIES
The fair treatment and meaningful involvement of people of all races, cultures, incomes
and educational levels with respect to the development and enforcement of
environmental laws, regulations, policies, and decisions. Fair treatment means that no
group of people should bear a disproportionate share of the negative environmental
consequences resulting from industrial, governmental and commercial operations or
policies.
RECOMMENDATION(S): The Manager recommends that the Board adopt the revised
Resolution in Attachment 3.
Attachment 1 3
Resolution #: RES-2016-083
RESOLUTION REGARDING GRANDFATHERING OF PROJECTS FOR
SCHOOL IMPACT FEE COLLECTION PURPOSES
WHEREAS, on November 15, 2016 the Orange County Board of Commissioners adopted
amendments to Chapter 30, Article II — Educational Facilities Impact Fee of the Orange County Code of
Ordinances, and
WHEREAS, the Orange County Board of Commissioners hereby provides technical guidance
on "grandfathering," for school impact fee purposes, of projects that are currently in later stages of
project development.
BE IT RESOLVED THAT persons submitting a building permit application prior to January 1,
2017 may choose to pay either the public school impact fee that was in effect for 2016 for the housing
type(s) proposed in the application or the fee required by the public school impact fee schedule in
section 30-33 of Chapter 30, Article II of the Orange County Code of Ordinances, provided the building
permit is issued no more than 180 calendar days after the application submittal date and a Certificate of
Compliance (aka, Certificate of Occupancy) is issued no later than 365 calendar days after issuance of
a building permit. If a building permit is not issued within 180 calendar days after the application
submittal date or if a Certificate of Compliance is not issued within 365 calendar days of building permit
issuance, the fee shall be the fee listed in section 30-33 of Chapter 30, Article II of the Orange County
Code of Ordinances.
BE IT FURTHER ORDAINED THAT projects for which a Zoning Compliance Permit has been
issued prior to January 1, 2017 and for which a building permit application has been submitted prior to
January 1, 2018 may choose to pay either the public school impact fee that was in effect for 2016 for
the housing type(s) proposed in the application or the fee required by the public school impact fee
schedule in section 30-33 of Chapter 30, Article II of the Orange County Code of Ordinances, provided
the building permit is issued no more than 180 calendar days after the application submittal date and a
Certificate of Compliance (aka, Certificate of Occupancy) is issued within 365 calendar days of building
permit issuance. If a building permit is not issued within 180 calendar days after the application
submittal date or if a Certificate of Compliance is not issued within 365 calendar days of building permit
issuance, the fee shall be the fee listed in section of Chapter 30, Article II of the Orange County Code
of Ordinances.
BE IT FURTHER ORDAINED THAT projects of 90-units in size or greater for which a Zoning
Compliance Permit has been issued prior to January 1, 2017 and for which a building permit application
has been submitted prior to January 1, 2018 may choose to pay either the public school impact fee that
was in effect for 2016 for the housing type(s) proposed in the application or the fee required by the
public school impact fee schedule in section 30-33 of Chapter 30, Article II of the Orange County Code
of Ordinances, provided the fee is paid prior to June 30, 2019 and a Certificate of Compliance is issued
prior to December 31, 2020.
Upon motion of Commissioner f/1 1/Z41/1 , seconded by Commissioner
(.,
the foregoing ordinance was adopted this 13 day of
2016.
I
4
I, Donna S. Baker, Clerk to the Board of Commissioners for Orange County, DO HEREBY
CERTIFY that the foregoing is a true copy of so much of the proceedings of said Board at a meeting
held on /3 , 2016 as relates in any way to the adoption of the foregoing and
that said proceedings are recorded in the minutes of the said Board.
WITNESS my hand and the seal of said County, this day of b. . :6'&21016_ , 2016.
croup,*
)2.i§cOli Clerk to the Board of Commissioners
4,7
e4rulitit%
Attachment 2 5
Town House Apartments
425 Hillsborough Street
Chapel Hill, NC 27514
919.942.2163 FX: 919.967.5911
www.TownHouseUNC.com
PETITION
Date: February 9, 2017
To: Chairman Dorosin and the Orange County Board of Commissioners (via email)
From: A.P. Segar, Townhouse Apartments
RE: Grove Park: Request for Adjustment to Resolution Regarding Grandfathering of Projects
for School Impact Fee Collection Purposes
Please consider this request for a minor amendment to the adopted resolution regarding
grandfathering of projects for school impact fee collection purposes. I intend to present this
petition in person at the February 21, 2017 meeting.
My family owns the existing Town House Apartments, a college-student apartment complex,
which has been preparing for a major renovation/expansion over the last 10 years. We are now
one month away from submitting a Zoning Compliance Permit application to Chapel Hill. Our
unique circumstances were not taken into account when you considered grandfathering of
projects at your December meeting.
Our situation is unique:
• We have a 50+year track record of not producing any school-age children, as our
product caters to college students.
• We have been diligently working on our expansion project, obtaining a Special Use
Permit and Special Use Permit Modification in 2009 and 2015.
• Our Zoning Compliance Permit application will be submitted in February, but we have
completed many of the typical final plan requirements.These include: receiving
administrative approval of Minor Changes as we prepare our final plan application,
receiving approval of our detailed building elevations and lighting plan from the Chapel
Hill Community Design Commission, and receiving our Certificates of Adequacy of Public
Schools (CAPS) from CHCCS.
• We cannot absorb an unanticipated $1.2 million increase in the school impact fee.
• If this project does not move forward, a property tax loss exceeding $625,000/year will
result.
• We are providing an affordable housing offering to Chapel Hill with an estimated value
of$4 million over a 25-year period.
6
To keep this project alive, we propose a minor adjustment to the resolution adopted last month
regarding grandfathering of projects for school impact fee collection purposes. The proposed
language is provided below as well as a more detailed history of how vested we are in this
development expansion.
Thank you for your consideration. We believe the tax base generated by the expansion of our
apartment complex and the associated affordable housing offering warrants consideration of
this minor adjustment to the grandfathering provisions.
Proposed Additional Language for Grandfathering Resolution
BE IT FURTHER ORDAINED THAT projects of 90-units in size or greater for which Detailed
Building Elevations and Lighting Plan have been approved by the Town's Design
Commission and Certificates of Adequacy of Public Schools (CAPS) have been issued
prior to January 1, 2017,_and for which a building permit application has been submitted
prior to January 31, 2019 may choose to pay either the public school impact fee that
was in effect for 2016 for the housing type(s) proposed in the application or the fee
required by the public school impact fee schedule in section 30-33 of Chapter 30, Article
II of the Orange County Code of Ordinances, provided the fee is paid prior to December
31, 2020 and a Certificate of Compliance is issued on or before December 31, 2020.
Detailed Background of Town House Apartments/Grove Park Development
1961 Construction began on the 111 dwelling units at Town House Apartments
February, 2009 Chapel Hill Council approved rezoning and Special Use Permit for 346 units
October, 2015 Chapel Hill Council approved a Special Use Permit Modification
April, 2015 Certificates of Adequacy of Public Schools (CAPS) issued by CHCCS
(Certificate#0071)
June, 2016 Chapel Hill approval of minor changes to the 2015 Special Use Permit
November, 2016 Chapel Hill approval of minor changes to the 2015 Special Use Permit
Dec. 15, 2016 Chapel Hill Community Design Commission approval of ZCP Detailed
Building Elevations and Lighting Plan
February, 2017 Formal Zoning Compliance Permit submittal anticipated
Since 1962, we have provided rental apartment units to college students at this Hillsborough
Street location in Chapel Hill. We received approval from the Chapel Hill Town Council for a
new residential project in 2009, which was then finely tuned with Town Council approval of a
Special Use Permit Modification in 2015. We have been working diligently on our Zoning
Compliance Permit (ZCP)/Final Plan submittal package since 2015. As we prepared detailed
final plans, we have worked closely with the Chapel Hill staff and have received two
administrative approvals for minor changes to the 2015 Special Use Permit. These changes
were determined to be necessary as we fine-tuned our ZCP submittal for the town. We also
had our detailed building elevations and lighting plan approved in December by the Town's
2
7
Community Design Commission. This is a step in the process that typically occurs during Zoning
Compliance Permit review by the town. We intend to submit our formal Zoning Compliance
Permit application in February.
A great deal of time and expense has gone into our proposal. We were not aware of significant
school impact fee changes. We estimate that the additional $1.2 million required of us based on
the increased school impact fees will damage our project and result in our inability to move
forward. Please refer to the attachment identifying the cost associated with the increase in the
school impact fee.
Failure of our project to move forward will result in an estimated property tax base loss of at
least $625,000+ each year to the county.
We reflect a unique situation: Long time college-student rental housing that has received a
Special Use Permit and Special Use Permit Modification, 2 Minor Changes, detailed Building
Elevation and Lighting Plan Approvals, and Certificates of Adequacy of Public Schools,just
weeks away from submitting our Zoning Compliance Permit application.
We respectfully request consideration of a minor adjustment to the resolution regarding
grandfathering of projects for school impact fee collection purposes. If it would be helpful to
discuss any of this information, please contact me at apsegar @townhouseunc.com or 919-942-
2163. I appreciate your consideration of this request.
Attachment
cc (via email): Wayne Hadler, Esquire
John Roberts, Esquire
Philip Post, PE, PLE
Bonnie Hammersley, Orange County Manager
Craig Benedict, Orange County Planning Director
Perdita Holtz, Orange County Planner III
3
8
Townhouse Apartments
425 Hillsborough St, Chapel Hill, NC 27514
Unit Type Current New Net New
TOCH Units 6 1bd 7 69 62
1 bed 3 2bd 40 117 77
2 bed 2 3bd 1 52 93 1 41
3 bed 1 4bd 12 67 55
Total 111 346 235
Estimate 2015 rates School Impact Fee #of New Units Fee
Multi-Family $1,286 235 $302,210
Net New 2017 rates School Impact Fee #of New Units Fee
0-2 Bed $1,910 139 $265,490
3 bed+ $8,133 96 $780,768
Total 235 $1,046,258
Net New 2020 rates School Impact Fee #of New Units Net New
0-2 Bed $2,909 139 $404,351
3 bed+ $12,389 96 $1,189,344
Total 235 $1,593,695
Affordable Housing Removed 2017 rates
School Impact Fee #of Units Net New
(Net New) 0-2 Bed $1,910 134 $255,940
3 bed+ $8,133 95 $772,635
Total 229 $1,028,575
Affordable Housing Removed 2020 rates School Impact Fee #of Units Net New
(Net New) 0-2 Bed $2,909 134 $389,806
3 bed+ $12,389 95 $1,176,955
Total 229 $1,566,761
Attachment 3 — Revisions to RES-2016-083 9
Resolution #: RES-2017-018
RESOLUTION REGARDING GRANDFATHERING OF PROJECTS FOR
SCHOOL IMPACT FEE COLLECTION PURPOSES
WHEREAS, on November 15, 2016 the Orange County Board of Commissioners adopted
amendments to Chapter 30, Article II — Educational Facilities Impact Fee of the Orange County Code of
Ordinances, and
WHEREAS, the Orange County Board of Commissioners hereby provides technical guidance
on "grandfathering," for school impact fee purposes, of projects that are currently in later stages of
project development.
BE IT RESOLVED THAT persons submitting a building permit application prior to January 1,
2017 may choose to pay either the public school impact fee that was in effect for 2016 for the housing
type(s) proposed in the application or the fee required by the public school impact fee schedule in
section 30-33 of Chapter 30, Article II of the Orange County Code of Ordinances, provided the building
permit is issued no more than 180 calendar days after the application submittal date and a Certificate of
Compliance (aka, Certificate of Occupancy) is issued no later than 365 calendar days after issuance of
a building permit. If a building permit is not issued within 180 calendar days after the application
submittal date or if a Certificate of Compliance is not issued within 365 calendar days of building permit
issuance, the fee shall be the fee listed in section 30-33 of Chapter 30, Article II of the Orange County
Code of Ordinances.
BE IT FURTHER RESOLVED THAT projects for which a Zoning Compliance Permit has been
issued prior to January 1, 2017 and for which a building permit application has been submitted prior to
January 1, 2018 may choose to pay either the public school impact fee that was in effect for 2016 for
the housing type(s) proposed in the application or the fee required by the public school impact fee
schedule in section 30-33 of Chapter 30, Article II of the Orange County Code of Ordinances, provided
the building permit is issued no more than 180 calendar days after the application submittal date and a
Certificate of Compliance (aka, Certificate of Occupancy) is issued within 365 calendar days of building
permit issuance. If a building permit is not issued within 180 calendar days after the application
submittal date or if a Certificate of Compliance is not issued within 365 calendar days of building permit
issuance, the fee shall be the fee listed in section of Chapter 30, Article II of the Orange County Code
of Ordinances.
BE IT FURTHER RESOLVED THAT projects of 90-units in size or greater for which a Zoning
Compliance Permit has been issued prior to January 1 July 31, 2017 and for which a building permit
application has been submitted prior to January 1, 2018 2019 may choose to pay either the public
school impact fee that was in effect for 2016 for the housing type(s) proposed in the application or the
fee required by the public school impact fee schedule in section 30-33 of Chapter 30, Article II of the
Orange County Code of Ordinances, provided the fee is paid prior to June 30, 2019 and a Certificate of
Compliance is issued prior to December 31, 2020.
BE IT FURTHER RESOLVED THAT applicants for additional grandfatherinq of projects of 90-
units in size or greater that meet the requirements of the preceding paragraph may submit requests and
supporting information no later than July 31, 2017 to Orange County Planning Staff who, in conjunction
with the Orange County Attorney, will prepare agenda items for Orange County Board of
Commissioners consideration at the next available regular meeting of the Orange County Board of
Commissioners.
1
10
Upon motion of Commissioner , seconded by Commissioner
, the foregoing ordinance was adopted this day of
, 2017.
I, Donna S. Baker, Clerk to the Board of Commissioners for Orange County, DO HEREBY
CERTIFY that the foregoing is a true copy of so much of the proceedings of said Board at a meeting
held on , 2017 as relates in any way to the adoption of the foregoing and
that said proceedings are recorded in the minutes of the said Board.
WITNESS my hand and the seal of said County, this day of , 2017.
SEAL
Clerk to the Board of Commissioners