HomeMy WebLinkAboutZ-689-24 PRIF 2025-20291
5/23/2024
Sponsors: Councilors Minnaar, Joshi, Snyder, Ayers, Aasen, Taylor, Worrell
ORDINANCE Z-689-24
AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF CARMEL, INDIANA,
RESTATING AND AMENDING AN ORDINANCE TO ESTABLISH AN IMPACT FEE FOR THE
PURPOSE OF PLANNING AND FINANCING PARK AND RECREATIONAL INFRASTRUCTURE
NEEDED TO SERVE NEW RESIDENTIAL DEVELOPMENT
Synopsis:
This ordinance renews and updates the Parks & Recreation Impact Fee Ordinance and associated
definitions for an additional five years from 2025-2029.
WHEREAS, the Common Council of the City of Carmel finds that it is reasonable and necessary to protect
the public health, safety, comfort, morals, convenience and general welfare of the citizens of the City of Carmel
and Clay Township by providing for an equitable program to finance the planning, acquisition and construction of
park and recreational infrastructure necessary to serve newly developing areas of the City and Township;
WHEREAS, the Common Council further finds that it is reasonable and necessary to promote and
accommodate the orderly growth and development of the City and Township by establishing standards by which
the City may require that new development shall pay an impact fee representing such development’s
proportionate share of the cost of planning and financing the park and recreational infrastructure necessary to
serve the new development; and
WHEREAS, the Common Council finds that new development should not be required to pay a fee for the
planning and financing of such park and recreational infrastructure which is greater than the amount that existing
development will pay to provide the infrastructure that is needed to serve the existing development; and
WHEREAS, in cooperation with the Carmel/Clay Board of Parks and Recreation Board this Council
requested that the Director of the Department of Community Services review the appropriateness of the Impact
Fee, the Impact Fee Zone and the Zone Improvement Plan and if deemed necessary, prepare a proposed
replacement impact fee ordinance; and
WHEREAS, the Director of the Department of Community Services has caused such a review; and
WHEREAS, in consultation with a qualified engineer, the Plan Commission has prepared an amended Zone
Improvement Plan for the City and Township which provides for the planning and financing of the additional park
and recreational infrastructure necessary to serve new development in the City and Township; and
WHEREAS, such Zone Improvement Plan was duly approved by the Plan Commission on August 20, 2019,
and recommended to the Common Council along with this Ordinance;
NOW, THEREFORE, BE IT ORDAINED by the Common Council of the City of Carmel, Indiana, that,
pursuant to IC 36-7-4-1311 and after Docket No. PZ-2024-00038 OA having received a favorable
recommendation from the Carmel Advisory Plan Commission on Tuesday, April 16, 2024, it hereby adopts this
Ordinance to amend the Carmel Unified Development Ordinance (Ordinance Z-625-17, as amended), to read as
follows:
I. Amend Section 1.30 of the Unified Development Ordinance to read:
A. Title: Section 1.30: Parks and Recreation Impact Fees shall be referred to and known as the Parks and
Recreation Impact Fee Ordinance (the “PRIF Ordinance”) for the City of Carmel, Hamilton County,
Indiana.
B. Definitions: Terms used in the Unified Development Ordinance are defined in Article 11: Definitions.
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C. Establishment of Impact Zone: There is hereby established one Parks and Recreation Infrastructure
Impact Zone, the borders of which are coterminous with the Planning Jurisdiction. In this regard, the
Council specifically finds that there is a functional relationship between the components of the Park
and Recreation Master Plan and the Zone Improvement Plan, as each is amended from time to time,
and that such plans will provide a reasonably uniform benefit to all of the citizens throughout the
Impact Zone. The Council further finds that all areas within the Impact Zone are contiguous as
required in IC 36-7-4-1316. Except as provided below, this PRIF Ordinance shall apply uniformly to
all developments within the Impact Zone hereby established for which the City may require an
improvement location permit and which create a need for new and additional Parks and Recreation
Infrastructure. This PRIF Ordinance shall not apply to:
1. Improvements which do not require an improvement location permit;
2. Improvements which do not create a need for new and additional Parks and Recreation
Infrastructure, including the erection of a sign, construction of accessory buildings, structures or
fences or the alteration, renovation or expansion of an improvement where the use, or intensity
thereof, has not changed; or
3. The replacement of a destroyed or partially destroyed improvement, provided that the replacement
improvement does not create a need for new and additional Parks and Recreation Infrastructure
over and above the infrastructure needed by the original improvement prior to the destruction or
partial destruction thereof.
D. Zone Improvement Plan: The Council hereby finds that, prior to the adoption of this PRIF Ordinance,
the Plan Commission undertook a comprehensive and detailed park and recreational impact analysis
and consulted with a qualified engineer, and the resulting study and data base were used in the
preparation of the Zone Improvement Plan as required by IC 36‑7‑4‑1318(d). The Council has
heretofore adopted the Zone Improvement Plan and finds in this regard that the Zone Improvement
Plan does contain the following elements:
1. Reasonable estimates relating to the nature and location of development that is expected within
the Impact Zone during the planning period, which, for the purposes of this PRIF Ordinance is
defined to be a period of ten (10) years commencing with the date of adoption hereof.
2. A reasonable determination of the community level of service for the Impact Zone.
3. A reasonable determination of the current level of service provided within the Impact Zone.
4. A reasonable estimate of the nature, location, sequencing, and timing of the park and recreational
improvements and costs necessary to provide the community level of service for the developments
contemplated in Section 1.30(D)(1) hereof.
5. A reasonable estimate of the share of the park and recreational costs identified in Section 1.30(D)(4)
hereof that will be used to:
a. Raise the current level of service for existing development or provide service to existing
development; or
b. Provide service to new development.
6. A reasonable estimate of revenues that:
a. Are from sources other than impact fees; and,
b. Will be used to finance the costs identified in Section 1.30(D)(5)(a) above.
7. A description of the nature and location of existing infrastructure in the Impact Zone.
8. A general description of the sources and amounts of money used to pay for infrastructure during the
previous five years.
9. A reasonable estimate of the share of the park and recreational costs identified in Section 1.30(D)(4)
hereof that will be used to pay the directly related expenses incurred in preparing or updating the
Zone Improvement Plan, as limited by IC 36‑7‑4‑1330.
In addition, the Council has specifically adopted the Zone Improvement Plan as an official part of the
Comprehensive Plan pursuant to IC 36‑7‑4‑500 et seq.
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E. Establishment of Impact Fee: Based upon the Park and Recreation Master Plan and the Zone
Improvement Plan previously referred to and which are hereby incorporated by reference into this PRIF
Ordinance, the Council determines that the impact costs, minus the sum of nonlocal revenues and
impact deductions (as defined in IC 36‑7‑4‑1321), do not exceed the amount of $8,275 per equivalent
dwelling unit, and that, therefore, the impact fee to be imposed on every development subject to this
PRIF Ordinance shall equal the product of:
1. $5,425, during months 1-12 of the effectiveness of this PRIF Ordinance; $6,029, during months 13-
24 of the effectiveness of this PRIF Ordinance; $6,700, during months 25-36 of the effectiveness
of this PRIF Ordinances; $7,446, during months 37-48 of the effectiveness of this PRIF Ordinance;
or $8,275, after month 48; times
2. the number of equivalent dwelling units to be constructed pursuant to the improvement location
permit obtained by the developer (or individual).
The Council does hereby make as a part of the record of these proceedings, all of the data collected, the
calculations made, and the conclusions reached by the Plan Commission in the process of developing
the Zone Improvement Plan, and specifically instructs the Director of Community Services to make
such data and other information inclusively available to anyone for review during regular business
hours. In the event that any parcel of real estate considered in the creation of the Zone Improvement
Plan undergoes a change in use, redevelopment, or a modification which requires an improvement
location permit, and creates a need for new infrastructure, an impact fee will be assessed only for the
increase in the burden on infrastructure.
F. Credit in Lieu of Payment; Exemptions:
1. Pursuant to IC 36‑7‑4‑1335, any developer (or individual) obligated to pay a fee pursuant to the
terms of this PRIF Ordinance may be granted the option of financing, constructing and dedicating
Parks and Recreation Infrastructure instead of making all or part of any impact fee payment
which may be due, so long as such financing, construction and dedication are accomplished
either:
a. Pursuant to the Zone Improvement Plan and with the consent and acceptance of the Carmel-
Clay Board of Parks and Recreation, or
b. With respect to components of infrastructure or other improvements that are not included in
the Zone Improvement Plan, after consultation with the Director of Carmel-Clay Parks and
Recreation, with the initial approval by the Council, where, if desired, the Council can set a
percentage limit, with deviation limits, of how much credit is allocated for site improvements,
and with final consent and acceptance of the Board of Public Works and Safety.
2. The developer (or individual) providing the infrastructure or improvement, shall be allowed a
credit in an amount equal to the sum of:
a. The actual cost of constructing or providing the infrastructure or improvements, plus
b. The fair market value of the land, real property interests, and site improvements provided.
3. The amount of the credit shall be determined by agreement (the “Credit Agreement”) between the
person constructing or providing the infrastructure or improvement and either:
a. The Carmel-Clay Board of Parks and Recreation; or
b. The Board of Public Works and Safety, depending upon which entity is best suited to accept
the dedication of the infrastructure or improvement. The developer (or individual) shall make
a request for credit prior to the issuance of the improvement location permit. The Board of
Public Works and Safety shall not approve a proposed Credit Agreement if the credit allocation
for any site improvement(s) exceeds the percentage limit, including deviation limits, set by
Council, if applicable. In the event the credit is less than the amount of the impact fee due
pursuant to Section 1.30(E): Establishment of Impact Fee above, the remaining balance shall
be due in accordance with the provisions stated hereafter.
4. Credits against impact fees otherwise due shall be allowed pursuant to this section for all
infrastructure and improvements constructed or furnished in accordance with IC 36‑7‑4‑1313 and
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IC 36‑7‑4‑1335 since January 1, 1989. In addition, a developer (or individual) responsible for
installing infrastructure or improvements may designate in writing a method of allocating its
credits to future owners who may be successors in interest to the credits earned by the developer
(or individual) as part of the Credit Agreement provided for above.
5. Any developer (or individual) obligated to pay the fee established by this PRIF Ordinance whose
property was totally or partially destroyed by fire, storm or other casualty beyond his or her
control, shall be exempt from said fee if such developer (or individual) repairs or replaces the
destroyed structure without creating a burden on Parks and Recreation Infrastructure greater than
the burden imposed by the destroyed structure. In the event of such additional burden, the fee
shall be calculated based only on the increased burden created by the structure.
6. The Council reserves the right to conduct audits and request any information from any source
related to the credits approved under this section, the progress of the projects for infrastructure
and other improvements related thereto, and the fund (or funds) established under IC 36-7-4-1329
for purposes of receiving the fees collected to determine compliance with this section.
G. Impact Fee Due Upon Issuance of Improvement Location Permit: The impact fee imposed pursuant
to the terms of this PRIF Ordinance shall be due and payable upon the issuance of an improvement
location permit. The entire fee which is calculated pursuant to the terms of this PRIF Ordinance shall
be due at said time, except that an installment plan may be requested by the applicant in accordance
with the terms set forth in IC 36‑7‑4‑1324 (a), (b), (c), and (d). The Impact Fee Review Board shall
establish specific rules consistent with said code provisions for installment payments. The interest
rate on any installment plan or deferred payment shall be the pre-judgment rate of interest set forth in
the Indiana Code as from time to time amended. If a developer (or individual) requests, the amount of
the impact fee shall be assessed upon the voluntary submission of a development plan or upon the
issuance of the improvement location permit, whichever is earlier. For purposes of this section,
“assessment” means the act of calculating the amount of the impact fee which shall be due at said
time. The Director of Community Services shall make such assessment within thirty (30) days of the
date of such voluntary request or at the issuance of the improvement location permit with or without a
request.
H. Lien Rights Established: Pursuant to IC 36‑7‑4‑1325, the City of Carmel acquires a lien against the real
estate which is the subject of the impact fee. Upon adoption, this PRIF Ordinance shall be recorded,
and, thereafter, it shall constitute constructive notice of the lien rights of the City. The City may, in its
discretion, file a specific instrument setting forth its lien rights with respect to a parcel of real estate
which is the subject of an installment payment plan for an impact fee, and such instrument shall
constitute actual notice in addition to the constructive actual notice in addition to the constructive notice
provided for by the recording of this PRIF Ordinance.
I. Form of Receipt: The Director of Community Services shall issue a receipt for any and all impact fees
collected, and the form of such receipt shall be as follows:
Received of [fee payer], this [date] day of [month, year], the sum of $ [amount] in [full/partial]
satisfaction of impact fees due pursuant to the City of Carmel Unified Development Ordinance, Section
1.30, relating to improvements to be constructed on the real estate described on Exhibit A, attached
hereto, made part hereof, and subject to lien rights in favor of the City of Carmel in the event of partial
payment with payments remaining due. The remaining balance due (if any) is in the following amount:
$ . This impact fee is dedicated to the creation of the following infrastructure elements in accordance
with the Zone Improvement Plan:
DEPARTMENT OF COMMUNITY SERVICES
City of Carmel
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J. Establishment of Impact Fee Review Board; Hearing of Appeals: There is hereby established the
Carmel Impact Fee Review Board. The Impact Fee Review Board shall consist of three (3) citizen
members, appointed by the Mayor of the City to serve for terms of four (4) years; however, for the
purpose of providing for staggered terms of office, the initial members of the Impact Fee Review
Board shall be appointed for respective terms of two (2) years, three (3) years, and four (4) years. The
members of the Impact Fee Review Board shall not be members of the Plan Commission and shall
meet the qualifications prescribed by IC 36‑7‑4‑1338(b), that is, one (1) licensed real estate broker,
one licensed (1) engineer, and one (1) certified public accountant. Whenever a member of the Impact
Fee Review Board is unable to participate in any matter before the board because of a conflict of
interest, the Mayor shall appoint a temporary replacement member, meeting the qualifications of the
member being replaced, to serve on the board for the purpose of hearing that matter only. The Impact
Fee Review Board shall be governed by IC 36‑7‑4‑1338(c) and all other applicable provisions of the
Impact Fee Statute. Any developer (or individual) who believes itself to be aggrieved by the
calculation of an impact fee may appeal from such calculation to the Impact Fee Review Board and
the Impact Fee Review Board shall conduct a hearing with regard thereto. At such hearing, the
developer (or individual) shall bear the burden of going forward with the evidence and shall present
evidence addressing either of the following propositions:
1. A fact assumption used in determining the amount of the impact fee is incorrect; or
2. The amount of the impact fee is greater than the amount allowed under IC 36‑7‑4‑1320, IC
36‑7‑4‑1321, and IC 36‑7‑4‑1322.
Upon conclusion of the presentation of evidence, the Impact Fee Review Board shall make a
determination within thirty (30) days, upon the facts presented and may make such adjustments in the
impact fee as it deems are appropriate under the circumstances, if any. An appeal under Section 1.30(J):
Establishment of Review Board; Hearing of Appeals shall be filed not later than thirty (30) days after
the issuance of the improvement location permit. The appeal shall be initiated with the filing of a
Petition for Review with the Director of Community Services, together with a filing fee in the amount
of $100. The filing fee shall be refunded in full:
1. If the Petition of Review is granted and the impact fee is eliminated, reduced or adjusted by the
Review Board, by independent action of the Director of Community Services, or by a court
having jurisdiction, and
2. If the reviewing body determines that the amount of the fee, reductions, or credits were arbitrary
or capricious.
The Petition for Review shall be in a form calculated to inform the Impact Fee Review Board of the
nature of the complaint, the parties to the action, and the relief requested. In addition, the petition
shall describe the new development on which the impact fee has been assessed, all facts related to the
assessment of the impact fee, and the reasons the petitioner believes that the amount of the impact fee
assessed is erroneous or is greater than the amount allowed by the fee limitations set forth in the
Impact Fee Statute. The Director of Community Services shall not deny the issuance of improvement
location permit on the basis that the impact fee has not been paid, or condition issuance of the permit
on the payment of the impact fee.
K. Establishment of Impact Fee Fund: There is hereby established an Impact Fee Fund as a non-reverting
fund, as may be designated by the Council, within the City to receive any and all sums collected
pursuant to this PRIF Ordinance and any other Impact Fee Ordinance that may hereafter be adopted,
to be utilized in connection with the purposes set forth in Section 1.30(L): Use of Impact Fees
Collected below. The Impact Fee Fund shall have separate line items for each project, separating the
sums that are received and collected by each specific project, pursuant to this PRIF Ordinance. In the
event, and only in the event, that an additional Impact Zone for Parks and Recreation Infrastructure is
created hereafter, a separate account shall be maintained for each separate Impact Zone established
within the City. Interest earned on any such account shall be deposited and maintained within the
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separate account. The Fiscal Officer shall manage the Impact Fee Fund according to the provisions of
the Impact Fee Statute and maintain records of the status of any such account. Pursuant to IC
36‑7‑4‑1329, the Fiscal Officer shall make an annual report to the Plan Commission and the Carmel-
Clay Board of Parks and Recreation of said accounts which shall be available to the public in general
and developer (or individual), upon request, in particular. The right to any refund of an impact fee
shall be determined strictly in accordance with IC 36‑7‑4‑1332, and the Fiscal Officer is designated,
pursuant to IC 36‑7‑4‑1332(e), as the official responsible for acting upon any refund applications that
may be filed by the developer (or individual). In order to facilitate the payment of any refunds when
they may be due, the Fiscal Officer is directed to identify the purpose of any impact fee paid in order
that a refund, if any, may be paid from the account into which the fee was originally deposited.
L. Use of Impact Fees Collected: Any and all fees collected pursuant to the provisions of this PRIF
Ordinance may be utilized, subject to Council approval, only for the following purposes:
1. Providing funds to be utilized by the Carmel-Clay Board of Parks and Recreation, after
consultation with the Executive Director of Carmel Redevelopment Commission, for the purpose
of paying the capital costs of Parks and Recreation Infrastructure that is necessary to serve the
new development within the City that is identified in the Zone Improvement Plan;
2. An amount not to exceed five percent (5%) of the annual collections of the fees, to be utilized by
the Carmel- Clay Board of Parks and Recreation for expenses incurred by the Carmel-Clay Board
of Parks and Recreation and/or the City for the consulting services that are used with regard to the
establishment and maintenance of this impact fee program;
3. To pay any refund that may be due under IC 36‑7‑4‑1332;
4. To pay the debt service cost on an obligation issued to provide Parks and Recreation
Infrastructure described in Section 1.30(L)(1) in accordance with IC 36‑10‑3‑27 or other
applicable law.
5. Providing funds to be utilized by the Carmel Redevelopment Commission, after consultation with
the Director of Carmel-Clay Parks and Recreation, for the purpose of paying the capital costs of
Urban Parks and Recreation Infrastructure.
M. Conflicts with Impact Fee Statute: The Council specifically acknowledges the existence of the
Impact Fee Statute, which regulates the adoption of impact fee ordinances by municipal corporations
within the State of Indiana. It is the intent of the Council to comply with such legislation, and this
PRIF Ordinance shall be construed in all respects to be consistent with the Impact Fee Statute. The
substantive and procedural requirements of the Impact Fee Statute shall control in the event of
conflicts, which are unintended by the Council.
N. Amendments and Review: The impact fee provided for herein is based upon information that, in large
part, is subject to inflation and other economic and market forces over which the Council has no
control. The Council may, therefore, from time to time, cause a review to be made by the Director of
Community Services, or such consultants as may be required, to determine the continuing validity of
the Impact Fee, the Impact Zone, and the Zone Improvement Plan. The Council may consider and
adopt such amendments as are necessary to cause a substantive compliance with all constitutional and
statutory requirements. To the extent required by the facts and circumstances, this process shall
include the steps necessary to update the Zone Improvement Plan and the Comprehensive Plan.
O. Effective Date and Expiration Date: Pursuant to IC 36‑7‑4‑1340, this PRIF Ordinance shall be
effective January 1, 2025, which is not earlier than six (6) months following its adoption in
accordance with the Impact Fee Statute, replacing the PRIF Ordinance adopted on November 18,
2019, and wholly contained in Section 1.30: Parks and Recreation Impact Fees. This PRIF
Ordinance shall expire five (5) years following such effective date, and no impact fee may be
collected under this PRIF Ordinance after such expiration date. However, the Council may adopt a
replacement impact fee ordinance to take effect before, on or after such expiration date if the
replacement ordinance complies with the provisions of the Impact Fee Statute.
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II. Amend the definition of “Plan, Zone Improvement” in Section 11.02 of the Unified
Development Ordinance to read:
Plan, Zone Improvement: The 2025-2029 Zone Improvement Plan for Parks and Recreation Infrastructure which
was prepared by the Plan Commission in conjunction with the Comprehensive Plan and approved by the Council
on or before July 1, 2024.
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ADOPTED by the Common Council of the City of Carmel, Indiana this ________ day of
______________________ 2024, by a vote of _________ ayes and ________ nays.
COMMON COUNCIL FOR THE CITY OF CARMEL, INDIANA
______________________________ ______________________________
Anthony Green, President Adam Aasen, Vice-President
______________________________ ______________________________
Jeff Worrell Teresa Ayers
______________________________ ______________________________
Shannon Minnaar Ryan Locke
______________________________ ______________________________
Matthew Snyder Rich Taylor
______________________________
Anita Joshi
ATTEST:
__________________________________
Jacob Quinn, Clerk
Presented by me to the Mayor of the City of Carmel, Indiana this ____ day of
____________, 2024, at _______ __.M.
_______________________________
Jacob Quinn, Clerk
Approved by me, Mayor of the City of Carmel, Indiana this ___ day of
______________, 2024, at ______ __.M.
________________________________
Sue Finkam, Mayor
ATTEST:
_________________________________
Jacob Quinn, Clerk
Prepared by:
Adrienne Keeling, Planning Administrator, One Civic Square, Carmel, IN 46032
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