20-x01

20-x01. TRAFFIC CORRIDOR IMPACT FEE

The Traffic Corridor Impact Fee is imposed on all New Development, as defined in 20-x02, so that the revenue collected reflects the pro rata share of costs needed for Transportation Improvement Projects as defined in 20-x02 resulting from the traffic demand generated by new development, measured by trip generation rates according to land use type. Except as provided in Section 20-X03B, any person who engages in New Development must pay the Traffic Corridor Impact Fee in the manner and amount established by this Article.

A. PURPOSE. The purpose of establishment of the Traffic Corridor Impact Fee is to ensure that adequate revenue is available to fund Transportation Improvement Projects and to ensure that the revenue collected will cover the costs of Traffic Improvement Projects attributable to New Development sufficient to support the demands created by additional growth and development forecasted for the City over the Capital Improvement Planning Period, while maintaining the minimum City-adopted traffic level of service (LOS) standard known as “D” level.

B. TRAFFIC CORRIDOR IMPACT DISTRICTS. The Traffic Corridor Impact Fee shall be collected, appropriated, and expended within designated Traffic Corridor Impact Districts, so as to ensure that Transportation Improvement Projects bear a reasonable relationship to the traffic demand generated by the New Development in the Traffic Corridor Impact District. The following Traffic Corridor Impact Districts are hereby established, are incorporated into the City’s Capital Improvement Plan and are shown on the City’s Traffic Corridor Impact District Map:

District #1: Real property East of the centerline of K-10 Highway and West of the centerline of Kasold Drive, and South of the centerline of Interstate 70 and North of the centerline of South Ninth Street (EXAMPLE).

District #2: Real property East of the centerline of Haskell Avenue and West of the centerline of Harper, and South of the centerline of K-10 Highway/South 23^rd Street and North of the centerline of South 31^st Street (EXAMPLE).

District #3: “”

20-x02. DEFINITIONS

City: The City of Lawrence, Kansas

Developer: A developer engaging in New Development within a Traffic Corridor Impact District, or his or her or its successor in interest.

New Development: Development that increases the finished interior square footage of structures within a Traffic Corridor Impact District or that increases the intensity of the use of existing development, in either instance, so as to generate vehicle trips within the Traffic Corridor Impact District and therefore to warrant imposition of a Traffic Corridor Impact Fee in accordance with the then-effective Traffic Corridor Impact Fee Rate.

Traffic Corridor Impact District: A district defined by geographic boundaries and shown on the Traffic Corridor Impact District Map in which Traffic Corridor Impact Fees will be charged for New Development at the rates established in this Article. Traffic Corridor Impact Districts are adopted by the City following the preparation of a study and determination of the areas that will be directly benefited by and that necessitate improvement of the arterial and collector streets of the City

Traffic Corridor Impact District Map: The map adopted by the City showing the boundaries of each Traffic Corridor Impact District.

Traffic Corridor Impact Fee: The impact fee payable and charged against New Development by Developers to cover the New Development’s pro rata costs for improvement of arterial and collector streets within the Traffic Corridor Impact District in which the New Development is situated.

Traffic Corridor Impact Fee Rate: The rate at which Traffic Corridor Impact Fees are charged to New Development, as determined by the City Commission after study of needed Transportation Improvement Projects in the City and the pro rata share of those projects that should be charged against New Development in accordance with this Article and, in particular, with the impacts of varying types of New Development.

Transportation Improvement: Improvements, including design and construction, facility expansion, lane additions, shoulder widening, median construction, land acquisition, land improvements, and design and engineering related thereto, in furtherance of a City-approved Transportation Improvement Project.

Transportation Improvement Costs: Costs incurred to make Transportation Improvements within a Traffic Corridor Impact District, including costs of equipment needed to serve new growth and development for planning, design and construction, land acquisition, land improvement, design and engineering related thereto, and also including the cost of constructing or constructing Transportation Improvements, including but not limited to the construction contract price, surveying and engineering fees, related land acquisition costs (including land purchases, court awards and costs, attorney’s fees, and expert witness fees) and expenses incurred for qualified staff or any qualified engineer, planner, attorney, architect, landscape architect, or financial consultant to develop the Traffic Corridor Impact Fee, and administrative costs equal to three percent (3%) of the total amount of the costs. Transportation Improvement Costs shall also include projected interest charges and other finance costs if and to the extent the Traffic Corridor Impact Fees are to be used for the payment of principal and interest on bonds, notes or other financial obligations issued by or on behalf of the City to finance the Transportation Improvement Project. These costs do not include routine and periodic maintenance expenditures, personnel training, and other operational costs.

Transportation Improvement Project: A capital improvement project established to make Transportation Improvements to collector and arterial streets within a Traffic Corridor Impact District.

20-x03. APPLICABILITY OF TRAFFIC CORRIDOR IMPACT FEE.

A. New Development: From and after the effective date of this Article, the Traffic Corridor Impact Fee shall be imposed on all New Development, unless otherwise exempted by this Article or an approved development agreement, in each of the Traffic Corridor Impact Districts, as set forth on the Traffic Corridor Impact District Map.

B. Exempt Development: The Traffic Corridor Impact Fee will not be imposed on:

1. New Development that does not generate traffic and that therefore does not contribute to the demand for Traffic Improvement Projects.

2. New Development, as in the alteration or expansion of a residential unit, which will not result in additional demand on street improvements within the Traffic Corridor Impact District.

3. Replacement or reconstruction of a building or structure that was in place on the effective date of this Article, or the replacement of a building or structure that was constructed subsequent thereto and for which the correct Traffic Corridor Impact Fee has been paid, provided that the use of the building does not change so as to result in additional vehicle trip generation.

4. New Development for which a building permit has been issued by the appropriate City official prior to the effective date of this Article.

5. Public and governmental facilities, including facilities of the City, Douglas County, the state, the federal government, the public school system serving the City, and other statutorily created political subdivisions.

6. New Development that qualifies as affordable housing as defined in XXXXXX.

7. New Development on real property for which a final plat or final development plan was approved by the City prior to the effective date of this Article.

C. Relationship of Traffic Corridor Impact Fee to Other Fees, Charges, Taxes and/or Assessments for Transportation Improvements. The Traffic Corridor Impact Fee is applicable to all New Development, unless otherwise exempt pursuant to subsection 20-x03B of this Article, notwithstanding that a Developer has paid, or has been subject to payment of special assessments, exactions or dedication requirements for right of way or other similar fees or charges for non-Traffic Improvement facilities or improvements. However, to the extent these fees, charges and/or assessments were imposed for the provision of Transportation Improvements that are duplicative of the Transportation Improvements Projects for which the Traffic Corridor Impact Fee will be paid, an appropriate credit shall be calculated and applied pursuant to Section 20-x04.D-F of this Article, to prevent overpayment.

D. Relationship of Traffic Corridor Impact Fee to Other City Code Requirements. Establishment of the Traffic Corridor Impact Fee does not affect the permissible uses of property, the density or intensity of development, the design and improvement standards or other applicable standards, requirements or conditions of the Lawrence Development Code or other City Code requirements that are operative and that remain in full force and effect with respect to New Development. The Traffic Corridor Impact Fee is additional and supplemental to, and not in substitution of, any other requirements imposed by the City on the development of land or on the issuance of building permits.

E. Traffic Corridor Impact Fee Rate Inflation Adjustment. Annually, as soon as this information is available, the Traffic Corridor Impact Fee Rate shall be automatically adjusted up or down proportionate to the percent increase or decrease in the Engineering News Record (ENR) Construction Cost Index (CCI) annual average for the immediately preceding year. The Traffic Corridor Impact Fee Rate adjustment shall become effective thirty (30) days following publication in the City’s official newspaper. The new Traffic Corridor Impact Fee Rate shall also be conspicuously posted in the City Planning and Development Department at City Hall.

20-x04 CALCULATION OF TRAFFIC CORRIDOR IMPACT FEE.

A. Base Traffic Corridor Impact Fee Calculation. Upon receipt of a building permit application for New Development, the Planning Director shall determine the following:

1. the type of land use;

2. the specific land use within the designated land use categories;

3. if residential land use, the number and type of dwelling units proposed;

4. if non-residential land use, the gross floor area proposed to be constructed or type, when applicable; and

5. the Traffic Corridor Impact District within which the proposed New Development is located.

After making these determinations, the applicable Traffic Corridor Impact Fee will be calculated by the Planning Director by multiplying the number of dwelling units (by type) and/or the gross floor area (by land use type) by the applicable Traffic Corridor Impact Fee Rate to derive the base Traffic Corridor Impact Fee to be imposed on the New Development.

B. Traffic Corridor Impact Fee Rate and Trip Schedule. The City Commission will adopt a resolution establishing the rate and trip generation schedule upon which the Traffic Corridor Impact Fee Rate is based. This resolution will be approved based upon the established pro rata cost of Traffic Improvement Projects of New Development in the various Traffic Corridor Impact Districts. Upon adoption, the resolution will guide the calculation and imposition of Traffic Corridor Impact Fees by land use type, except as otherwise provided in subsection 20-x04.C. of this Article. Rates shall be prescribed for various land uses based upon their trip generation characteristics established by the Institute of Traffic Engineers Trip Generation Manual, as may be adjusted by the Planning Director, based upon local conditions and policy objectives. The Traffic Corridor Impact Fee Rate will be automatically adjusted annually as provided in subsection 20-x03.E. The Governing Body may periodically review the adopted Traffic Corridor Impact Fee Rate and trip generation schedule and make recommendations for modifications and adjustments to:

1. further the purposes and intent of the City’s Capital Improvement Plan; and

2. respond to required Traffic Improvement Project modifications within a Traffic Corridor Impact Fee District based upon changing land use patterns; and

3. account for the fiscal offset of county, state or federal financial assistance or grants received to fund Transportation Improvement Projects within the Traffic Corridor Impact Districts.

C. Additional Calculation Considerations.

1. If the type of New Development proposed is not expressly listed in the current Traffic Corridor Impact Fee Rate schedule, the Planning Director will:

a. Identify the listed land use with the most similar trip generation characteristics and calculate the base Traffic Corridor Impact Fee based on that land use; or

b. Identify the broader land use category within which the proposed New Development would most appropriately fit and calculate the base Traffic Corridor Impact Fee pursuant to that land use.

2. If the New Development proposed is a mixed or multiple use development, each identified land use is subject to a separate Traffic Corridor Impact Fee calculation, unless the applicant can document that the trips produced by the integrated land uses will reduce the number of trips otherwise generated by each individual land use.

3. If the New Development is speculative in nature and no particular land use is proposed, the Planning Director may calculate the Traffic Corridor Impact Fee based upon the most likely use of the New Development given the New Development’s zoning classification, square footage and location. The Planning Director is authorized to charge an additional Traffic Corridor Impact Fee to a tenant finish building permit applicant to account for a more intensive change in the use of non-residential New Development than was anticipated at the time of initial calculation of the Traffic Corridor Impact Fee. Once each successively more intensive land use is established within a tenant finish, the more intensive use shall be presumed to be the permanent use of the tenant finish and no credit will be issued upon the later establishment of a lesser-intensive use.

4. All Traffic Corridor Impact Fee calculations shall be based upon the Traffic Corridor Impact Fee Rate schedule in effect at the time a complete building permit application is received by the City. If the New Development proposed is phased, the Traffic Corridor Impact Fee shall be calculated separately for each phase at the time of and, based upon receipt by the City of specific building permit applications. The purpose of this subdivision is to make clear that commencement of construction of New Development does not lock in or grandfather the current Traffic Corridor Impact Fee Rate for New Development that commences later in time on the same real property.

5. An applicant may request a non-binding estimate of Traffic Corridor Impact Fees due for a potential New Development project. The estimate shall be based on the Traffic Corridor Impact Fee schedule in effect at the time of the request. To obtain the non-binding estimate, a Developer must submit a full and complete description of the proposed New Development project, including its location, the proposed land use type, the proposed zoning classification of the New Development, and, the number of proposed units if residential, and the proposed gross square footage applicable to each proposed non-residential land use. The estimate is not binding on the City and the applicant is on notice that the estimate is subject to change when a formal application for the New Development is submitted to the City.

20-x05. CREDITS.

A. Eligibility for Credits. When eligible, Developers are entitled to a credit against Traffic Corridor Impact Fees otherwise due and owing under the circumstances and in the manner set forth in this section. Credits against the Traffic Corridor Impact Fee calculated to be due from a New Development pursuant to subsection 20-x04.A. shall be made when determined by the Planning Director to be necessary to avoid overcharging an applicant when any one or more of the following circumstances exist:

1. The Developer has, within the last XX years, constructed, improved or otherwise contributed, all or a portion of a Transportation Improvement Project within the Traffic Corridor Impact District, pursuant to a written agreement with the City. Developers who, following the approval of the City, construct Transportation Improvements for which Traffic Corridor Impact Fees would otherwise be imposed and that are included as Transportation Improvement Projects which are deemed necessary by the City, are entitled to a credit. The credit allowed pursuant to this Section is equal to the present value of the cost of construction of the Transportation Improvement, up to a maximum of the Traffic Corridor Impact Fee due for the Transportation Improvement Project. In the event a Developer enters into a private agreement with the City to construct or contribute Transportation Improvements such that the amount of the credit created is in excess of the Traffic Corridor Impact Fee that would otherwise have been paid for the New Development, the Developer shall be reimbursed for the excess construction or contribution from Traffic Corridor Impact Fees paid by other Developers in the Traffic Corridor Impact District;

2. The Developer has, within the last XX years, been assessed or has paid through an approved development agreement or other method, for all or a portion of a Transportation Improvement Project. In the event a Developer enters into a development agreement with the City to fund Transportation Improvements such that the amount of the credit created is in excess of the Traffic Corridor Impact Fee that would otherwise have been paid for the New Development, the Developer shall be reimbursed for the excess funding from Traffic Corridor Impact Fees paid by other Developers in the Traffic Corridor Impact District;

3. The Developer has previously paid Traffic Corridor Impact Fees for New Development in which the building permit lapsed and for which no refund was given, and the New Development is proposed anew and there has been no increase in type of use, gross floor area, number of units, or other land use or development variable affecting trip generation.

4. The Developer establishes that taxes collected on the New Development are earmarked for Transportation Improvement Costs for which the Developer should be given credit.

B. Application for Credits: Applications for credits shall be made by the Developer at or before the time of building permit application on a Credit Application/Calculation Form provided by the City. The application form shall be completed and, where necessary, shall be accompanied by appropriate documentary evidence demonstrating the eligibility of the Developer for the credit. The Planning Director shall verify the eligibility for, and calculate the amount of, the credit due. The credit shall be applied against the Traffic Corridor Impact Fee, provided, however, that any credit exceeding the amount of the Traffic Corridor Impact Fee otherwise calculated to be due, pursuant to subsection 20-x04.A., shall only be paid in accordance with this Section.

C. Calculation of Credits: In calculating the amount of the credit that may be due to the Developer, the Planning Director shall verify:

1. The funds previously paid by the Developer, either by development agreement or other funding mechanism or through prior payment of Traffic Corridor Impact Fees, and the use of that contribution for a particular Transportation Improvement Project; or

2. To the maximum extent possible, where Transportation Improvements have been made, the value of the credit by establishing the relevant Transportation Improvement Cost and, where no cost is available from the Developer, assigning that cost based upon the reasonable and customary costs in the City. Eligible costs include Transportation Improvement Costs. Preliminary studies, traffic studies are not eligible for credit.

D. Certain Contributions Not Eligible for Credits. Credits will not be granted for dedication of right of way to be used for construction of or contributions to the costs of constructing (access improvements [likely need to define]) into and within the New Development, these access improvements having been determined by the City Commission to be (1) outside of the scope of the City’s Capital Improvements Plan; (2) of limited use to the City at large; (3) designed to provide service for the particular New Development; and (4) constructed for the use and convenience of the occupants of the New Development.

E. Time of Application of Credits. Credits will be credited or applied to a Developer at the time of determination that such credit is due by the Planning Director.

20-x06. COLLECTION OF TRAFFIC CORRIDOR IMPACT FEE. The Planning Director shall collect the Traffic Corridor Impact Fee due as determined by the calculation in 20-x04 at the time of building permit issuance unless:

A. The Developer has been determined to be entitled to a full credit;

B. The Developer’s New Development is exempt, pursuant to subsection 20-X03.B.1 through B.7 of this Article or a use otherwise determined not subject to the Traffic Corridor Impact Fee; or

C. The Developer has taken an appeal from the City’s determination of the Traffic Corridor Impact Fee due or credit available, and a bond or other approved surety in the amount of the Traffic Corridor Impact Fee, as determined by the Planning Director, has been posted with the City in accordance with Section 20-x09 of this Article.

20-x07. DEPOSIT OF TRAFFIC CORRIDOR IMPACT FEES INTO RESTRICTED ACCOUNTS, BY DISTRICT.

A. Establishment of Accounts. The Finance Director will establish separately identifiable interest-bearing Traffic Corridor Impact Fee accounts for each Traffic Corridor Impact District. These accounts shall be clearly identified and all Traffic Corridor Impact Fees collected shall be placed solely in the account funding the applicable Traffic Corridor Impact District. All interest earned and Fees deposited to each account shall be credited to and shall be considered funds of the account. The funds in the account shall not be commingled with other funds, accounts, or revenues of the City, except as provided herein. The City shall establish appropriate accounting procedures and controls to ensure that the Traffic Corridor Impact Fees are properly deposited, accounted for, and appropriated in accordance with the requirements of this Article. The Director of Finance may establish sub-accounts when, in that person’s discretion, identification of funds with greater particularity than is specified herein is warranted.

B. Appropriation of Traffic Corridor Impact Fees. Traffic Corridor Impact Fee funds may only be appropriated for payment of Transportation Improvement Costs for an eligible Transportation Improvement Project as identified in the City’s Capital Improvements Plan.

C. Further Restrictions On Appropriations.

1. Traffic Corridor Impact Fees shall only be appropriated for Transportation Improvement Costs associated with Transportation Improvement Projects within the Traffic Corridor Impact District in which the Traffic Corridor Impact Fee was collected or within 1,000 feet of the Transportation Corridor Improvement District boundary.

2. Traffic Corridor Impact Fees shall be appropriated within six (6) years of the beginning of the City fiscal year immediately succeeding the date of Traffic Corridor Impact Fee collection unless this time period is extended with the agreement of the fee payer. An extension may be approved if the appropriation is for an eligible Transportation Improvement Project that requires more than six (6) years to plan, design, and construct. If Traffic Corridor Impact Fees are unused within this period, they shall be returned to the current property owner unless claimed by the Developer in accordance with Section 20-x08.A.

3. Traffic Corridor Impact Fees may not be appropriated or used for the compensation of City personnel, street maintenance, street operations of the City’s public works department, maintenance, or repair of streets; or to cure existing deficiencies in the City’s street system.

D. Procedure for Appropriation of Traffic Corridor Impact Fees.

1. The City, as part of its annual budget and capital improvements programming process, may identify eligible Transportation Improvement Projects anticipated to be funded in whole or in part with Traffic Corridor Impact Fees. If Transportation Improvement Projects are identified, the budget and/or capital improvements program shall specify the Traffic Corridor Impact District in which the proposed Transportation Improvement Project is situated, the nature and location of the Transportation Improvement Project, the demand for the project and the anticipated timing for completion of the project.

2. The City Commission may authorize additional Transportation Improvement Projects funded in whole or in part with Traffic Corridor Impact Fees at such other times as may be deemed necessary and appropriate.

3. The City Commission shall verify that adequate funds are, or will be, available from the appropriate Traffic Corridor Impact District account or other appropriate sources at the time needed to fund the Transportation Improvement Project, and if Traffic Corridor Impact Fees collected are insufficient to fund the project, the City may borrow the necessary funds through any legal means to complete the Transportation Improvement Project and repay the debt through the future collection of Traffic Corridor Impact Fees.

20-x08. REFUNDS.

A. Eligibility for Refund. In the following circumstances, a partial or complete refund of Traffic Corridor Impact Fees may be requested:

1. By the Developer, when the building permit upon which the Traffic Corridor Impact Fee was imposed, calculated, and collected has lapsed or has been revoked, prior to construction commencing, and a new building permit will be needed to develop the property; or

2. By the Developer, when the City has failed to expend the Traffic Corridor Impact Fees paid by the Developer in compliance with Section 20-x08.C.2 of this Article and the current owner of the property has waived his or her or its right to the refund pursuant to Section 20-x08.B. in writing; or

3. By the Developer, when the Developer reduces the amount of New Development after a building permit has been issued and the Traffic Corridor Impact Fee has been paid, subject to Section 20-x04.C.3 and provided that the Traffic Corridor Impact Fee has not yet been appropriated (City, I suppose has to keep an accounting of the funds such that at the end of the sixth year and each year thereafter the amount of Traffic Corridor Impact Fees collected in year one have been spent – the first in first out accounting method as I recall); or

4. By the current owner of the property, when a refund is due under Section 20-x07.C.2.

B. Refund Procedures.

1. All requests for refunds shall be made on a Refund Application Form provided by the City, which shall be submitted to the Planning Director. The refund applicant shall establish one of the criteria in subsection A. above and provide the City with evidence regarding:

a. Documentation as to the amount of the refund to which the Developer or owner believes is due and requested; and

b. Documentation that refund applicant is the current owner of the property or that if not the owner, the Developer of the property that has obtained a waiver of the right to the refund from the current owner; and

c. The date on which the Traffic Corridor Impact Fee was paid.

2. The Planning Director shall review the Refund Application Form and the documentary evidence submitted and within 30 days following receipt of a completed Refund Application Form, make a determination of whether a refund is due. The determination of the Planning Director shall be in writing and shall state the reasons for the determination. Refunds may be authorized by direct payment to the refund applicant, by offsetting the refund against other fees due for development projects by the Developer on the same or other property, or otherwise by agreement with the refund applicant. The refunded fees shall be taken from the account into which the Traffic Corridor Impact Fees were originally placed. The refund shall only reflect the actual amount collected, or a partial amount, if appropriate. There shall be no payment for accrued interest.

3. All refunds will be paid, to the extent they are payable, within sixty (60) days after the Planning Director determines whether the refund is due.

C. Timing of Requests for Refunds. Applications for refunds shall be considered only if made within the following time frames:

1. If upon the revocation or lapsing of a building permit, within ninety (90) days of the revocation or lapse.

2. If upon failure of the City to timely expend Traffic Corridor Impact Fee funds, within one hundred eighty (180) days following the expiration, or any extension thereto, of the time limit established in Section 20-x07.C.2.

3. If upon a reduction in the intensity or amount of New Development within the Traffic Corridor Impact District, within ninety (90) days after the issuance of a certificate of occupancy.

20-x09. APPEAL FROM DECISION OF PLANNING DIRECTOR.

A. Procedure for Appeal from Planning Director. All determinations of the Planning Director made pursuant to this Article including, but not limited to, applicability of the Traffic Corridor Impact Fee, calculation of the Traffic Corridor Impact Fee amount due, eligibility for and the amount of credits and eligibility for and the amount of refunds, may be appealed to the City Manager or the City Manager’s appointee. The appellant must file a written notice of appeal with the City Clerk within thirty (30) days following the determination of the Planning Director from which the appeal is being taken. The notice of appeal shall state with particularity the decision being appealed; the grounds for the appeal; and the specific relief sought. The City Manager shall issue a written decision on the appeal within thirty (30) days of receipt of the perfected appeal.

B. Procedure for Appeal from City Manager. Following the written decision of the City Manager, the applicant may appeal the decision to the City Commission. The subsequent appeal shall be perfected in the same manner as the original appeal and shall be filed with the City Clerk within ten (10) days of the City Manager’s written decision. The City Commission shall consider and issue a written decision on the appeal within thirty (30) days of receipt of the perfected appeal.

C. Notice of Appeal. The filing of a notice of appeal shall not stay the imposition, calculation, or collection of the Traffic Corridor Impact Fee as calculated by the Planning Director unless a bond, letter of credit or other approved and sufficient surety has been filed with the City. If the notice of appeal is accompanied by a bond, letter of credit or other approved surety satisfactory to the City Attorney and in an amount equal to the Traffic Corridor Impact Fee due as calculated by the Planning Director, the Building Official may issue the subject building permit.

D. Burden of Proof. The burden of proof shall be on the applicant to demonstrate that the determination of the Planning Director from which the appeal is being taken, is erroneous.