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HomeMy WebLinkAboutMinutes Park Impact Fee 1-4-05PARK IMPACT FEE COMMITTEE TUESDAY, JANUARY 4, 2005 The Park Impact Fee Cormnittee met Tuesday, January 4, 2005 in the Caucus Rooms of City Hall at 5'30 PM. Committee members present' Jerry Chomanczuk; Leo Dierckman; Dan Dutcher; Dianna Knoll; Mark Rattermann, and Rick Ripma. Jon Dobosiewicz attended the meeting on behalf of the Department of Community Services. John Molitor, legal counsel, was also in attendance. Paul Reis, attorney with Vomehm, Pitts & Simmons attended the meeting as an interested member of the public. "Mo" Merhoff, Executive Director, Carmel Chamber of Commerce was also in attendance.. The Park Impact Fee Committee considered the following item' le Docket No. 04050012 OA- Park Impact Fees Docket No. 04050013 CP - Carmel/Clay Parks Zone Improvement Plan The applicant seeks to amend Chapter 29: Park and Recreation Impact Fees and amend the Carmel/Clay 2020 Vision Comprehensive Plan: Carmel/Clay Parks Impact Fee Zone Improvement Plan. Filed by the Carmel/Clay Parks Department. Mark Westermeier appeared before the Committee representing the Carmel/Clay Department. Deb Grisham, attorney for the Parks Department was also in attendance. Parks Mark Westermeier referred to an booklet containing data gleaned from neighboring communities of Noblesville, Fishers and Westfield reflecting Impact Fee Structures. The booklet recites the current Impact Fee for Carmel and includes the calculations for the Impact Fee that has been the same as the current level of service--S37 million due to the Central Park Bond. The current level of service that the community has is the value of the current park system plus improvements. The value of the current park system is based upon land, 525 acres, and the improvements to that land--S37 million. The $37 million was divided by the total number of current households, and that figure is $1,356.61; $1300 is where the current level of service would normally have been if the same formula were utilized this year as in past years. Z\P arklmp actF ee 2005j an04 ONE CIVIC SQUARE CARMEL, INDIANA 46032 317/571-2417 The community level of service is the current level of service plus Central Park~this computes to approximately $92 million totally invested by the Community, divided by the total number of current households, computed to be $3300 or what current residents are paying. In order to come up with an actual Impact Fee, the planned parks infrastructure ($17,260,000) divided by new development over the next 10 years, ($8,800) less what citizens will pay over the next 10 years in additional taxes, ($701) and came up with the new development impact fee of $1,261. The Parks Department is recommending a Park Impact Fee set at a maximum of $1,261.00 per dwelling unit. The Committee had comments and questions regarding capital costs, infrastructure, and the formula utilized. The total new development over the next four years is $18.4 million~subtract $1.1 million over the next 10 years in gifts, bequests, etc., the total is $17,260,000 and includes capital improvements to West park, Hazel Landing Park, Founders Park, and Cherry Tree Park. Leo Dierckman asked if the impact fee would be revisited every year to determine the inflationary impact on the planned park infrastructure costs. Does the Committee need the ability to adjust the impact fee or can the committee include an inflation factor each year so that the infrastructure expenditures are matched? Mark Westermeier responded that the Committee could revisit the Impact Fee every year. However, the law requires that the Impact Fee be looked at every five years or lose it. Since the Bond is decreasing every year, if we revisit or recalculate every year, the numbers will be going down because the Bond will be going down too. Note: The current Park Impact Fee is $527.00. Leo Dierckman accepted the responsibility to chair the Impact Fee Committee. Paul Reis requested a copy of the informational booklet reflecting the 2005 - 2010 Zone Improvement Plan; the committee complied. Maureen Merhoff asked how tenants/apartment dwellers would be reflected in these figures. Mark Rattermann stated that it would be the aggregate value of the apartments less the tax credit. The apartment dweller may end up utilizing the parks system more than a homeowner because he has fewer places to go. In this particular case, we would be adding about $15-$20,000 per acre to the cost of developing the ground. Paul Reis commented that the townhomes are owner/occupied and will pay the same per unit in costs. Z\ParklmpactFee2005jan04 ONE CIVIC SQUARE CARMEL, INDIANA 46032 317/571-2417 Mark Rattermann noted difficulty in defining a dwelling unit, defining housing, defining HPR, attached homes, etc. Jon Dobosiewicz reported that the fee would be paid at the time the building permit is pulled~it could not be assessed a year later. John Molitor said that Carmel residents use the parks fairly equally, regardless of the type of housing they are in. The judgment was made to proceed with going with an average and coming up with a number that is justifiable based on the average home being built in this community. Since this will be new development, it is difficult to project at this time. Mark Westermeier said the Impact Fee is ultimately the decision of the City Council as to how they want to implement it. The Parks Dept. is projecting a figure that would be the average cost. Most of the development will be to the west of the Township. There was further discussion regarding available land beyond the year 2010, and that certain assumptions are being made in the document. Mark Westermeier said the law requires them (Parks Dept) to make their best reasonable estimate. Figures and data were gathered from DOCS in an effort to compute the average cost. Jon Dobosiewicz commented that what is before the Committee this evening is the best guess/ estimate on where we will be in the future. We will probably see a lot more re-development-- more urban development where the densities will be a little higher and concentrated closer in. The Department is more confident five years out than ten years, but there are still over 3,000 lots in inventory that are somewhere between having been already approved by the Plan Commission and being built on--the number is between 3,000 and 3,500. We are expecting to see things taper off in the next three to five years. The Department issued approximately 800 single family permits this year. That is single family, not including multi-family and single family attached. We are probably closer to one thousand when the townhome developments are included. In response to questions from Mark Rattermann, Mark Westermeier stated that the Impact Fee can only be used on West Park, Hazel Landing, Founder's Park, and Cherry Tree Park~no other park. That is the statute, and those are the parks used for new development. These parks are the zones being improved; money cannot be spent anywhere else. This is pretty well regulated from a government standpoint, and that is the law we must follow. The money can only be spent on capital improvements; it cannot be used for salaries, maintenance, or shifted into the general fund. The money stays in its own fund and can only be used for those four parks. Money that would go to Central Park or new land acquisitions is NOT in this plan--it is strictly with four parks that we want to develop and it is important to get those developed quickly. We have already invested in the land, either through the City or through the Parks Board and we need to get the land developed before we reach build-out in some of those areas. Mark Rattermann asked if the Parks system accepts common areas in lieu of impact fee~Mark Westermeier responded in the affirmative, IF it were large enough. However, the Parks Dept. is z\P arklmpac tF ee 2005j an 04 ONE CIVIC SQUARE CARMEL, INDIANA 46032 317/571-2417 not in the "grass cutting business" and if there were enough acreage to actually create a public amenity, there would probably be interest. John Molitor commented that the Department of Community Services and the Parks Department have been talking this last year regarding increasing the Park Impact Fee. Nothing could officially come to fruition until all of the numbers were finalized. Mark Rattermann moved to approve the Parks Impact Fee Increase proposal as presented and forward to the Plan Commission with a favorable recommendation, seconded by Jerry Chomanczuk, APPROVED 6-0. The meeting adjourned at 6:20 P.M. Leo Dierckman, Chairperson Ramona Hancock, Secretary z\P arklmpactF ee 2005j an 04 ONE CIVIC SQUARE CARMEL, INDIANA 46032 317/571-2417