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HomeMy WebLinkAboutMinutes IFAC 05-21-19 cat �. ,„ �¢ .......-. Cityof „,,,,,,,, 'NDIANP CARMEL PLAN COMMISSION IMPACT FEE ADVISORY COMMITTEE MEETING MINUTES TUESDAY, MAY 21, 2019 Location: Cannel City Hall Caucus Rooms,2nd Floor, 1 Civic Square,Cannel,IN 46032 Members Present: John Adams,Laura Campbell,Brad Grabow,Carrie Holle,Nick Kestner,Joshua Kirsh, Alan Potasnik,Susan Westermeier,Bill Redman Members Absent: Tom Kegley Staff Present: Adrienne Keeling,Mike Hollibaugh,Joe Shestak Legal Counsel: John Molitor,Debra Grisham Time: 6:00 p.m. The Impact Fee Advisory Committee met to consider the following items: 1. Discussion of issues related to the next update of the Parks and Recreation Impact Fee. Representatives of Baker Tilly Municipal Advisors LLC will meet with the committee to share schedules and statistical information that they have prepared to assist the Cannel Clay Parks and Recreation Department, the Impact Fee Advisory Committee, the Cannel Plan Commission, and the Cannel City Council in analyzing the community's parks and recreation impact fee. Brad Grabow, President of the Plan Commission: The one item on tonight's agenda requires no action. This is a discussion and information sharing exercise that will lead up to a decision or recommendation by the Committee. The purpose of this meeting is to hear from the experts and understand the subject matter better. The Info Packet for the 5-21-19 IFAC was passed out. It contains a memo and attached schedules for general discussion. Kurtis Baumgartner,Assistant Director of the Cannel Parks Department: • In 2018 the Parks Dept. began working to update its Comprehensive Master Plan that will cover 2019 to 2023 • The Master Plan is what guides the Department strategic direction, it helps defines our goals,and objectives over a 5 year period • Updated Master Plan also includes a comprehensive asset management plan,strategic funding plan,Impact Fee&Zone Improvement Plan Update,and Westside Community Center Feasibility Study • Assets and amenities have a finite life cycle. • It's important to understand when replacement schedules are needed • Present this evening are Deb Grisham,Park Board Legal Counsel who can assist in answering historical or legal questions,and Matt Eckerle,Municipal Advisor for Baker Tilly who will assist in understanding the documentation that will be presented regarding the Impact Fee Study Matt Eckerle,Municipal Advisor for Baker Tilly • The Ordinance is only in effect for 5 years from its date of adoption • The master plan process integrates well with the impact fee development process, and some overlap with the asset management plan 1 Minutes IFAC 05-21-19 • The summary of the calculation(page 2)does not represent an actual proposed number at this time. This is the maximum justified calculation based on the set of assumptions that are laid out at this time. Nothing is being proposed at this time,this will just be a point of reference. John Molitor,Legal Counsel of the Plan Commission: • The City Council(CC)will have the final say of what the fee will be after what is recommended by the Plan Commission(PC) • There are 3 steps involved with this process: 1.This meeting tonight,2.The public hearing in front of the PC. 3. Consideration by the CC as an Ordinance Amendment. Matt Eckerle: • You won't be able to adopt a fee that exceeds the maximum proposed number • This fee will be adopted this year(2019)but become effective in 2020.There's a 6 month period between adoption and when the fee can be collected. • Page 5 explains our cost of meeting the 2029 park infrastructure needs of$39 million • New residents won't pay for the TIF taxes that contribute to the bonds • We have credit amounts to contribute to the bond principal and capital budget • The normal income taxes collected will flow into the Parks Dept. capital budget • The bond principal and capital budget details are shown in pages 9& 10 • DOCS has helped us with the numbers to make sure it's consistent with what they are using for their Planning purposes • We used a linear assumption for our calculations • We also used census data and historical information Mike Hollibaugh,Director of the Department of Community Services: • It's taken from our historic permit information and what we've built over the last four decades • This is a reasonable and conservative estimate Matt Eckerle: This plan is self-policing.The ordinance is effective for 5 years but you may reexamine it at any time. John Molitor: For instance, if Amazon Headquarters came to Cannel,we could change the fees or increase the amount of investments you would need for all the additional residents that would bring. Carrie Hone,Plan Commission: Is this number feasible to the amount of land available in Carmel? Mike Hollibaugh: This also applies to townhomes,apartments, and other redevelopments. It's a flat rate, per unit. If there's a home there today,and we tear it down and put up a new home, it does not contribute to the fee.If you tear down a home and put two homes up,we obtain one fee. Matt Eckerle: The impact fee can't exceed what the current level of services is for the current residents. John Molitor: This current level of services comes from the State Statue. The maximum fee we can charge comes from the State Law. This all stems from the Supreme Court cases from the early 90's where a local Plan Commission can expect a new subdivision to create new streets but can't expect them to fix traffic problems that already exist. Debra Grisham,Attorney for Cannel Park Board: In 1996 we had 42 acres of park land. We implemented an impact fee of$84. Before the 5 years were up,we realize we were missing out,and our neighboring cities were collecting much more in fees. We reexamined the numbers and raised the fee to$527. We were able to raise it every 5 years. As of June 15,2019,the impact fee will be$2,972 for the last 12 months of the life of this impact fee. If the PC and CC review and agree on the new impact fees,it will start next year. I hope the CC takes fmal action before mid-December. Once the Park and City Officials have an opportunity to digest and discuss the calculations,then it will go before the PC at a public hearing. Once the PC acts on it, it will go before the CC. Alan Potasnik: Can the Cost-of-Living Adjustment(COLA)be built into this fee,on a year to year basis? Matt Eckerle: We have looked at this and seen other communities have used inflation in their calculations. We used the 2019 costs to be consistent with our numbers. Debra Grisham: In the 2010&2015 impact fee,we had a 10% adjustment each year to address the cost of living. Each year it increased. 2 Minutes IFAC 05-21-19 Nick Kestner: On page 9,are the bonds that are grouped together related to Parks? Matt Eckerle: We looked at the previous bank bonds that were issued to fund recreational park projects. Nick Kestner: What about Clay TWP general obligation bond series? Matt Eckerle: These were all a series of bonds that were identified for parks projects and fire station improvements. John Molitor: This is a credit toward the amount of impact fee that new development has to pay.It keeps taxes down for existing residences. Nick Kestner: One of these bonds is for the golf course,but it's not part of the Parks Department. John Molitor: If it's a recreation matter,they get a credit. Brad Grabow: Is the credit just limited to Cannel Clay Parks&Rec. (CCPR)amenities? The Monon Boulevard and Brookshire Golf Course are not CCPR amenities. John Molitor:No. Mike Hollibaugh: Their impact fees were dedicated to other public green infrastructure than CCPR.Nick Kestner: Are the multi-use paths included in this? John Molitor: It's considered a recreational infrastructure even though it's not within the Parks&Rec. budget. If it's a private owned structure, it is not counted. Alan Potasnik: What about the Dad's Club amenity or improvement to their facility? Matt Eckerle: The focus of our fees is for the City owned recreational amenities. So the privately owned amenities were not considered. Sue Westermeier: Who determines what funds go to the City Center Green and to what actually goes to Cannel Parks? Mike Hollibaugh: In the Impact Fee Ordinance there's a procedure that allows alternative public green space to be utilized in the Park Impact Fee. Matt Eckerle: It's only for City owned amenities. City policies decide what gets funded. Mike Hollibaugh: The credits haven't been used often,but the previous plans didn't address it. John Molitor: The State Law allows us to make that decision and the Board of Public Works can make that decision. We can't predict what's going to happen. Kurtis Baumgartner: There's not a perfect formula that defines the amount of money we will receive each year.Debra Grisham: The patch ordinance was created so the Board of Public Works could enhance the park and recreational amenities that were not included in the areas designated in the Zone Improvement Plan. John Adams: What triggers the payment of the impact fee? And who pays it? Mike Hollibaugh: The building permit triggers it.The developer or builder will pay the fee at the point of transaction. There's also an opportunity to pay all impact fees in advance. John Molitor: They can pay in advance for the current rate instead of the future rate. John Adams: For instance,a development has 200 units,they would have to pay the impact fee for all 200 units up front, and not as they are occupied. John Molitor: That's correct. Brad Grabow: When the rates have gone up,how do builders and developers respond to this? Do they seek out building in Westfield instead because of our impact fee? How much of this is an influence as an economic development incentive or disincentive? Mike Hollibaugh: Historically,that increase has not had a noticeable effect. We've never maxed out the opportunity. It's always been phased over a period of time. It's a 10-15% increase each year,rather than a huge lump sum. Kurtis Baumgartner: Recent Impact Fees have determined the maximum amount allowable, and have utilized a 10%annual escalator to get close to the max total by the end of year five. Debra Grisham: We have taken reasonable steps over time. Carrie Holle: What's the Plan Commissions role? The impact fee is happening regardless. Is our role to decide what the fee is? Debra Grisham: First,the PC has the public hearing to receive public input. The PC will consider the public input along with the provided calculations. This will help you make a determination whether or not you are ready to make a favorable or unfavorable recommendation to the CC of the proposed Ordinance and Zone Improvement Plan. The CC has the ultimate decision whether or not it wants to agree with what the PC has sent them. John Adams: When will we see the proposed numbers? Debra Grisham: We don't know as of now, but it will be presented before the scheduled PC public hearing. Brad Grabow: What does statute require of the PC in terms of recommendation? Do we recommend the proposed maximum amount?Or a 10 year phase in? Debra Grisham: The PC can send back to this Committee, or send it on to the CC. John Molitor: The proposal will come from the Parks Dept. and they will ask Staff to introduce it to the PC.Then the PC will make a recommendation to the CC. Sue Westermeier: So we will vote on what the Parks Dept.will come back with. John Molitor: Yes.Tonight is just background information for you. If we don't pass anything,this impact fee will go away in June 2020. It would go from$2,972 to$0. 3 Minutes IFAC 05-21-19 Kurtis Baumgartner: We were able to identify the infrastructure improvements we need to make in the future through our asset management plan. We have in excess of$25 million in assets that are going to be expired in 3 years. Matt Eckerle: The impact fees can't be used to maintain or replace existing infrastructure. It can only be used for capital costs associated with what's needed to serve new developments. Brad Grabow: Can the Parks Foundation contribute towards the infrastructure costs? Matt Eckerle: It could be, and it would be counted for in the Zone Improvement Plan. John Adams: What are the road impact fees? Matt Eckerle: Road impact fees can only be spent on added road capacity projects to serve new developments. Josh Kirsh: Does a builder prefer to build a million dollar home in Cannel or Westfield in regardless to what the impact fee is? Carrie Holle: It depend on a lot of factors; school system,the price of land, it's hard to say. Laura Campbell: If there's a recession,and we don't hit the numbers for new homes and development,what happens if we are not bringing in the money needed for the parks? Matt Eckerle: You won't need as much new infrastructure to serve the new development. Laura Campbell: Is there any situation where you have to revisit the proposed numbers and increase the amount? Matt Eckerle: The infrastructure needed to serve new growth levels rolls into the calculations of the new fee that would be higher. You would have to reevaluate the whole process. John Molitor: So regardless of any plans the Parks Dept.may have,the City can never charge an impact fee of more than$6,800. Brad Grabow: When will you have more information for us? Matt Eckerle: We are waiting on some decisions from the local policy makers. Debra Grisham: We will take all of your comments to Michael Klitzing. Mr. Klitzing and other City officials will have a conversation about what makes sense based on the numbers. This information will be back to the PC before the public hearing. Adrienne Keeling: If anyone is worried on the timing,this will not be on the agenda for the June 2019 or July 2019 Plan Commission meetings. Meeting adjourned at 6:55 p.m. 'Y(114)11 4f* Joe Shestak Plan Commission Secretary Brad Grabow President 4 Minutes IFAC 05-21-19