HomeMy WebLinkAboutPEC100050 Mitigation of Development Impacts 021411
1 MEMORANDUM TO: Planning and Environmental Commission FROM: Community Development Department DATE: February 14, 2011 SUBJECT: A request for a recommendation to the Vail Town Council,
pursuant to Section 12-3-7, Amendment, Vail Town Code, for a prescribed regulations amendment to create Chapter 12-26, Exactions and Dedications, Vail Town Code, to allow for the creation
of regulations and procedures for mitigation of development impacts, and setting forth details in regard thereto. (PEC100050) Applicant: Town of Vail Planner: George Ruther/Rachel Dimond
I. SUMMARY The applicant, the Town of Vail, is requesting a work session on a text amendment to Title 12, Zoning Regulations, Vail Town Code, to establish Chapter 12-26, Exactions and
Dedications. The purpose of this new chapter is to provide the legal framework for administering the Town’s mitigation of development impacts requirements. After the work session discussion
of this item, the Community Development Department recommends the Planning and Environmental Commission tables this item to the February 28, 2011 hearing. A draft copy of Ordinance No.
4, Series of 2011, is attached for review (Attachment A). II. DESCRIPTION OF REQUEST The proposed amendments will establish a new chapter to Title 12, Zoning Regulations, entitled “Chapter
12-26, Exactions and Dedications.” The purpose of this chapter is to: • Clarify existing regulations and policies on exactions and dedications; • Establish expectations regarding the
need to mitigate development impacts at the beginning of the development review process; • Ensure a review process that is consistent, predictable and equitable; • Clarify the review
criteria and findings necessary for requiring exactions and dedications; • Establish the procedure for determining the impacts of a development that must be mitigated, as quantified
and applied to development projects through rational nexus studies; • Identify exactions and dedications that are necessary for achieving the development objectives of the Town; • Protect
the health, safety and welfare and to ensure the orderly and viable growth of the community; • Provide a mechanism to ensure adequate public facilities, open space, recreational opportunities
and other amenities and facilities conducive to a desirable community;
2 • Promote safe and efficient pedestrian and vehicular traffic circulation and to lessen congestion in the streets; and • Conserve and maintain established community qualities and economic
values. The proposed Chapter 12-26 includes the following components: • Policy statements on the requirement of exactions or dedications; • Definitions of terms applicable to the implementation
of the new chapter; • Outline of the legal authority for the requirement of dedications and exactions; • Criteria for reviewing exactions and dedications, whether they are fees, dedication
of land, or provision of infrastructure or services; • Findings to be made by the reviewing authority (Planning and Environmental Commission or Town Council) when approving development
applications; and • A process for accepting dedications. III. DISCUSSION ITEMS What are the impacts of development to local governments? Impacts of development vary widely among projects.
Generally, development may affect population concentration, traffic patterns, use of public facilities (e.g., schools, parks), need for public services, utility use and infrastructure
needs. Why do local governments require the mitigation of development impacts? • Providing all infrastructure, facilities and services that become necessary due to new development may
be cost prohibitive for a municipality, due to a variety of financial and political factors. • Anticipating new development by providing infrastructure can be a misuse of limited resources.
• Special Development Districts limit the ability to foresee future development as each project creates its own unique development standards. • State and federal funding for infrastructure
and capital projects has been limited by budget cuts, placing more financial burden on local municipalities. • Existing residents may not want to share costs for new development, and
typically oppose tax increase ballot initiatives to pay for infrastructure associated with such development. What is the legal framework that allows local governments to to require the
mitigation of development impacts? • Communities may require dedications and impose exactions on the granting of land-use approvals, provided that there is an essential nexus between
the exaction or dedication and a legitimate local government interest, and provided that the dedication or exaction is roughly proportional, both in nature and extent, to the impact
of the proposed use or development. • Case law and regulations that permit mitigation requirements include two historic land use law cases, Nollan v. California Coastal Commission, 483
U.S. 825 (1987) and Dolan v. City of Tigard, 512 U.S. 374 (1994), as well as Colorado Revised Statutes § 29-20-203: Conditions on Land Use Approval, and related case law.
3 What types of mitigation may be required? The following is a general list of exactions and dedications that may be required with the approval of a development project: • Parking (new
spaces, parking structures, fee-in-lieu payments, etc.) • Housing (new employee housing, deed restrictions on existing properties, etc.) • Streets (new median, additional lanes, land
dedication, streetscape improvements, etc.) • Transit (bus stop, private shuttle services, etc.) • Fire (impact fees to pay for increased services and equipment, etc.) • Recreation/Parks
(impact fees to offset increased services, land dedication, new park, public facilities, etc.) • Public Art (on-site art installations, impact fees to pay for public programs, etc.)
• Police (impact fees to offset increased services, etc.) • Schools (land dedication, fee-in-lieu payment, etc.) How do local governments require the mitigation of development impacts?
The process of mitigating the impacts of development varies among different communities with different development objectives and goals. On one end of the spectrum, communities may pay
for impacts of development through taxes and federal funding. On the other end, developers may pay for all incremental impacts to the community. The policy decision on who pays for impacts
can affect future levels of service for infrastructure, facilities and services. The chart below identifies the types of dedications and exactions that may be required by municipalities
near Vail: Municipality Parking Housing Streets Transit Fire Parks/Rec Public Art Police Schools Within Eagle County: Eagle County x x x x x x Vail x x x x x x x x Avon x x x x x x Minturn
x x x x Eagle x x x x x x Within Summit County: Summit County x x x x x x x x Frisco x x x x Dillon x x x x x Silverthorne x x x x x x x Breckenridge x x x Other Resorts: Aspen x x x
x x Steamboat Springs x x x x x Are dedications and exactions for the mitigation of development impacts a tax? No. A tax is monies required for real and personal property or an act,
event or occurrence that provides revenue in order to defray the general expenses of government as distinguished from the expense of a specific function or service. Dedications and exactions
are considered a type of fee, not a tax. Unlike a tax, a fee is not designed to raise revenue to defray the general expenses of government, but rather is a charge imposed upon persons
or property for the purpose of defraying the cost of a particular governmental service, in this case being construction of infrastructure, facilities and services.
4 What is the existing Town fo Vail policy on mitigation of development impacts? The existing policy is to require mitigation of development impacts when there is a rational nexus between
cause and effect, as required by state law. Development in Vail is required to pay for the incremental impacts on the community. How does the Town of Vail regulate the mitigation of
development impacts? • Yes, the Town of Vail requires varying levels of mitigation of development impacts, depending upon the zoning of the development site. • Currently, mitigation
of development impacts is required in Public Accommodations 1, Public Accommodations 2, Lionshead Mixed Use 1, Lionshead Mixed Use 2, Ski Base/Recreation 2 and Special Development Districts.
• Mitigation may include deed restricted employee housing, roadway improvements, pedestrian walkway improvements, streetscape improvements, stream tract/bank restoration, loading/delivery,
public art improvements, and similar improvements. • Employee housing may be required, in accordance with commercial linkage and inclusionary zoning standards, in the High Density Multiple-Family,
Public Accommodation, Public Accommodation 2, Commercial Core 1, Commercial Core 2, Commercial Core 3, Commercial Service Center, Arterial Business, General Use, Heavy Service, Lionshead
Mixed Use 1, Lionshead Mixed Use 2, Ski Base/Recreation, Ski Base/Recreation 2, Parking and Special Development Districts. Which development projects in Vail are required to mitigate
their impacts? • Mitigation of development impacts may be required for “large scale redevelopment/development projects which produce substantial off site impacts.” • Employee housing
is required for any project in the applicable zone districts that has a net increase in commercial or residential floor area. Which development projects in Vail are not required to mitigate
their impacts? • Single-family homes. • Projects in low density zone districts. • Projects that do not generate net new employees in commercial space. Will the proposed amendments change
the Town of Vail’s development policies? No. The proposed regulations will not change existing policy. Will the proposed amendments change the Town of Vail’s development review procedures?
Yes. The proposed regulations will change current procedural practice with the establishment of criteria and findings when determining that mitigation of development impacts is required.
The changes to review procedures will clarify expectations that development pays for some impacts to infrastructure, facilities and services and creates an equitable, predictable and
consistent process for determining an exaction or dedication. However, the outcome of requirements will remain the same.
5 Will the proposed amendments change the Town of Vail’s development impact standards? No. Requirements for development to pay for impacts to infrastructure, facilities and services
will remain the same. The following chart details how the proposed regulations would affect mitigation of development impacts for a project in Vail, using Strata as an example: Exactions
and Dedications Existing Regulations Proposed Regulations Public Art $70,000 $70,000 Transit $273,000 $273,000 Employee housing 12,665 sq ft of EHUs 12,665 sq ft of EHUs How are development
affected by development impact mitigation requirements? According to “Development Fees and Employment,” a study conducted by the University of Oklahoma and Florida State University,
clear expectations of exactions and dedications allow developers to anticipate costs. The expectation of exactions and dedications has also been proven to expedite review of projects,
as municipalities are less apprehensive to approve development when its impacts are mitigated. While exactions and dedications increase the cost of development, they provide certainty
that is shown to increase likelihood of the implementation of projects. How is the Town of Vail affected by development impact mitigation requirements? The same study referenced above
notes that exactions and dedications lead to increased jobs in a municipality due to new construction, new employment sectors and funding for schools, parks, fire, and other services.
Further, the mitigation of development impacts allows the Town of Vail to defer costs of improving infrastructure, facilities and services to the developer instead of the taxpayer. The
Town of Vail also charges a construction use tax that provides funding for capital projects. In 2011, the Town of Vail has over $3 million in maintenance costs and $17 million in capital
improvement needs. Funding sources include but are not limited to construction use tax (estimated $500K), TIF funding from Lionshead ($8.5M), and traffic impacts fees ($390K balance).
However, this does not include an extensive list of unfunded projects that were cut to balance the budget, including over $18 million in high priority projects. The Town continues to
pay for extensive capital improvements, with a small amount of funding coming from development. IV. STAFF RECOMMENDATION After the work session discussion of this item, the Community
Development Department recommends that the Planning and Environmental Commission tables this item to the February 28, 2011 hearing. V. ATTACHMENTS A. Draft Ordinance No. 4, Series of
2011