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HomeMy WebLinkAboutReg 2021-08-16 Item 6C - Ordinances - Impact Fee Exemptions for Early Learning FacilitiesCOUNCIL AGENDA SYNOPSIS Initials Meeting Date Prepared by Mayor's review Council review 7/26/21 BJM ❑ Motion Mtg Date ❑ Resolution Mtg Date 8/9/21 BJM ❑ Public Hearing Mtg Date 8/9/21 ❑ Other Mtg Date 8/16/21 BJM SPONSOR ❑ Council ❑ Admin Svcs ❑ DCD ❑ Finance ❑ Fire ❑ P&R ❑ Police ❑ PIF 11 Mayor SPONSOR'S The State legislature recently enacted SHB 1331 which seeks to increase the number of SLTb MARY early learning facilities by authorizing local governments to exempt such facilities from development impact fees and thus reducing the cost to develop such facilities. The City would need to adopt amendments to three ordinances to allow the impact fee exemptions to occur. REVIEWED BY ❑ Trans&Infrastructure Svcs ❑ Community Svcs/Safety ❑ LTAC ❑ Arts Comm. DATE: 7/12/21 /1 Finance ITEM INFORMATION ITEM No. 6.C. 259 STAFF SPONSOR: BRANDON MILES ORIGINAL AGENDA DATE: 7/26/21 AGENDA ITEM TITLE Impact Fees for Early Learning Facilities (Substitute House Bill 1331) CATEGORY 11 Discussion 7/26/21 ❑ Motion Mtg Date ❑ Resolution Mtg Date 11 Ordinance ❑ Bid Award Mtg Date ❑ Public Hearing Mtg Date 8/9/21 ❑ Other Mtg Date Mtg Date Mtg Date 8/16/21 SPONSOR ❑ Council ❑ Admin Svcs ❑ DCD ❑ Finance ❑ Fire ❑ P&R ❑ Police ❑ PIF 11 Mayor SPONSOR'S The State legislature recently enacted SHB 1331 which seeks to increase the number of SLTb MARY early learning facilities by authorizing local governments to exempt such facilities from development impact fees and thus reducing the cost to develop such facilities. The City would need to adopt amendments to three ordinances to allow the impact fee exemptions to occur. REVIEWED BY ❑ Trans&Infrastructure Svcs ❑ Community Svcs/Safety ❑ LTAC ❑ Arts Comm. DATE: 7/12/21 /1 Finance & Governance ❑ Planning & Community Dev. ❑ Planning Comm. CHAIR: IDAN ❑ Parks Comm. COMMITTEE RECOMMENDATIONS: SPONSOR/ADMIN. COMMITTEE Mayor's Office, Office of Economic Development Unanimous Approval; Forward to Committee of the Whole COST IMPACT / FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED $N/A $N/A $N/A Fund Source: N/A Comments: N/A MTG. DATE RECORD OF COUNCIL ACTION 7/26/21 MTG. DATE ATTACHMENTS 7/26/21 Informational Memorandum, dated July 6 Substitute House Bill 1331 Info Memo, dated July 19 (Response to Question & Comments at Finance Committee) Minutes from the 7/12 Finance & Governance Committee meeting 8/9/21 Informational Memorandum, dated July 6 with attachments Draft Ordinances 8/16/21 Final Ordinances 259 City of Tukwila Washington Ordinance No. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, AMENDING ORDINANCE NO. 2571 §6, AS CODIFIED AT TUKWILA MUNICIPAL CODE (TMC) SECTION 16.26.030, AND ORDINANCE NO. 2571 §15, AS CODIFIED AT TMC SECTION 16.26.120, TO ADD AN EXEMPTION TO FIRE IMPACT FEES FOR EARLY LEARNING FACILITIES; PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS,the City Council adopted Ordinance No.2571 on May 7, 2018, regarding the imposition of Fire Impact Fees within the City; and WHEREAS, the Washington State Legislature passed Substitute House Bill 1331 related to the application of impact fees on early learning facilities within the State of Washington; and WHEREAS, early learning facilities provide broad public service to the Tukwila community by providing childcare for Tukwila community members; and WHEREAS, on August 9, 2021, following adequate public notice, the Tukwila City Council held a public hearing to receive pu blic testimony on this ordinance; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY ORDAINS AS FOLLOWS: Section 1. TMC Section 16.26.030 Amended. Ordinance No. 2571 §6, as codified at Tukwila Municipal Code (TMC) Section 16.26.030, is hereby amended to read as follows: 16.26.030 Definitions Terms or words not defined herein shall be defined pursuanttoRCW 82.02.090 when given their usual and customary meaning. For the purposes of this ordinance, unless the context or subject matter clearly requires otherwise, the words or phrases defined in this section shall have the following meanings: CC: Legislative Development \ Fire Impact Fees—Early Learning Facility exemption 8-10-21 BM.bjs Page 1 of 5 261 1. "Accessory residential structure" means a structure that is incidental and subordinate to the principal residence on the property and is physically detached to the principal residence, but does not include accessory dwelling units. For example, a detached garage or storage shed for garden tools are considered accessory residential structures. 2. "Accessory dwelling unit (ADU)" means a dwelling unit that is within or attached to a single-family dwelling or in a detached building on the same lot as the primary single-family dwelling. An ADU is distinguishable from a duplex by being clearly subordinate to the primary dwelling unit, both in use and appearance. 3. "Building permit" means an official document or certification of the City of Tukwila issued by the City's building official which authorizes the construction, alteration, enlargement, conversion, reconstruction, remodeling, rehabilitation, erection, placement, demolition, moving, or repair of a building or structure. 4. "City" means the City of Tukwila, Washington, County of King. 5. "Development activity" means any construction, reconstruction, or expansion ofa building,structure, or use, or any changes in use of a building or structure, or any changes in the use of land, requiring development approval. 6. "Development approval" means any written authorization from the City, wh ich authorizes the commencement of the "development activity." 7. "Early Learning Facility" is defined consistent with RCW 43.31.565(3) as now enacted or hereafter amended. 8. "Encumber" means to reserve, set aside, or earmark the fire impact fees in order to pay for commitments, contractual obligations, or other liabilities incurred for the provision of fire protective services. 9. "Fee payer" is a person, corporation, partnership, an incorporated association or governmental agency, municipality, or similar entity commencing a land development activity that requires a building permit and creates a demand for additional fire capital facilities. 10. "Fire protection facilities" means all publicly owned apparatus and buildings with in the City that are used for fire protection and/or emergency response and aid. 11. "Impact fee" means the payment of money imposed by the City on development activity pursuant to this ordinance as a condition of granting development approval in order to pay for the fire facilities needed to serve growth and development that is a proportionate share of the cost of fire capital facilities used for facilities that reasonably benefit development. Impact fees do not include reasonable permit fees, application fees, administrative fees for collecting and handling fire impact fees, or the cost of reviewing independent fee calculations. CC: Legislative Development\Fre Impact Fees—Early Learning Facility exemption 8-10-21 BM:bjs Page 2 of 5 12. "Low-income housing" means housing where monthly costs, including utilitiesotherthan telephone, are no greater than 30% of the resident's household monthly income and where household monthly income is 80% or less of the King County Median family income adjusted for familysize as reported by the U.S. Department of Housing and Urban Development. 13. "Owner" means the owner of record of real property, as found in the records of King County, Washington, or a person with an unrestricted written option to purchase property; provided, that if the real property is being purchased under a recorded real estate contract, the purchasershall be considered the owner of the property. 14. "Proportionate share" means that portion of the cost for fire facility improvements that are reasonably related to the service demands and needs of development. Section 2. TMC Section 16.26.120 Amended. Ordinance No.2571 §15, as codified at TMC Section 16.26.120, is hereby amended to read as follows: 16.26.120 Exemptions. A. The fire impact fees are generated from the formula for calculating the fees as set forth in this chapter. The amount of the impact fees is determined by the information contained in the adopted fire department master plan and related documents, as appended to the City's Comprehensive Plan. All development activity located within the City shall be charged a fire impact fee; provided, that the following exemptions shall apply. B. The following shall be exempt from fire impact fees: 1. Replacement of a structure with a new structure having the same use, at the same site, and with the same gross floor area, when such replacement is within 12 months of demolition or destruction of the previous structure. 2. Alteration, expansion, or remodeling of an existing dwelling or structure where no new units are created and the use is not changed. 3. Construction of an accessory residential structure. 4. Miscellaneous improvements including, but not limited to, fences, walls, swimming pools, and signs that do not create an increase in demand for fire services. 5. Demolition of or moving an existing structure within the City from one site to another. 6. Fire impact fees for the construction of low-income housing may be reduced when requested by the property owner in writing prior to permit submittal and subject to the following: a. The property owner must submit a fiscal impact analysis of how a reduction in impact fees for the project would contribute to the creation of low-income housing; and CC: Legislative Development\Fire Impact Fees—Early Learning Facility exemption 8-10-21 BM:bjs Page 3 of 5 263 b. The property owner must record a covenant per RCW 82.02.060(3) that prohibits using the property for any purpose other than for low-income housing at the original income limits for a period of at least 10 years. At a minimum, the covenant must address price restrictions and household income limits for the low-income housing, and that if the property is converted to a use other than low income housing within 10 years, the property owner must pay the City the applicable impact fees in effect at the time of conversion. c. Should the property owner satisfy the criteria in TMC Section 16.26.120.B.6., a and b, the fees will be reduced, based on the following table: Unit Size Affordability Target 1 Fee Reduction 2 or more bedrooms 80% 2 40% 2 or more bedrooms 60% 2 60% Any size 50% 2 80% 1 — Units to be sold or rented to a person or household whose monthly housing costs, including utilities other than telephone, do not exceed 30% of the household's monthly income. 2 — Percentage of King County Median family income adjusted for family size as reported by the U.S. Department of Housing and Urban Development. 7. Change of Use. A development permit for a change of use that has less impact than the existing use shall not be assessed a fire impact fee. 8. A fee payer required to pay for system improvements pursuant to RCW 43.21C.060 shall not be required to pay an impact fee for the same improvements under this ordinance. 9. A fee payer installing a residential fire sprinkler system in a single-family home shall not be required to pay the fire operations portion of the impact fee. The exempted fire operations impact fee shall not include the proportionate share related to the delivery of emergency medical services. 10. An Early Learning Facility is exempt from paying 80 percent of the required Fire Impact Fee. Section 3. Corrections by City Clerk or Code Reviser. Upon approval of the City Attorney, the City Clerk and the code reviser are authorized to make necessary corrections to thisordinance, including the correction of clerical errors; references to other local, state or federal laws, codes, rules, or regulations; or ordinance numbering and section/subsection numbering. CC: Legislative Development\Fre Impact Fees—Early Learning Facility exemption 8-10-21 BM:bjs Page 4 of 5 Section 4. Severability. If any section, subsection, paragraph, sentence, clause or phrase of this ordinance or its application to any person or situation should be held to be invalid or unconstitutional for any reason by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of the remaining portions of this ordinance or its application to any other person or situation. Section 5. Effective Date. This ordinance ora summary thereof shall be published in the official newspaper of the City, and shall take effect and be in full force five days after passage and publication as provided by law. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of , 2021. ATTEST/AUTHENTICATED: Christy O'Flaherty, MMC, City Clerk Allan Ekberg, Mayor APPROVED AS TO FORM BY: Filed with the City Clerk: Passed by the City Council: Published: Effective Date: Ordinance Number: Office of the City Attorney CC: Legislative Development\Fire Impact Fees—Early Learning Facility exemption 8-10-21 BM:bjs Page 5 of 5 265 City of Tukwila Washington Ordinance No. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, AMENDING ORDINANCE NO. 2572 §6, AS CODIFIED AT TUKWILA MUNICIPAL CODE (TMC) SECTION 16.28.030, AND ORDINANCE NO. 2572 §15, AS CODIFIED AT TMC SECTION 16.28.120, TO ADD AN EXEMPTION TO PARKS IMPACT FEES FOR EARLY LEARNING FACILITIES; PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, the City Council adopted Ordinance No. 2572 on May 7, 2018, regarding the imposition of Parks Impact Fees within the City; and WHEREAS, the Washington State Legislature passed Substitute House Bill 1331 related to the application of impact fees on early learning facilities within the State of Washington; and WHEREAS, early learning facilities provide broad public service to the Tukwila community by providing childcare for Tukwila community members; and WHEREAS, on August 9, 2021, following adequate public notice, the Tukwila City Council held a public hearing to receive public testimony on this ordinance; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY ORDAINS AS FOLLOWS: Section 1. TMC Section 16.28.030 Amended. Ordinance No. 2572 §6, as codified at Tukwila Municipal Code (TMC) Section 16.28.030, is hereby amended to read as follows: 16.28.030 Definitions Terms or words not defined herein shall be defined pursuantto RCW 82.02.090 when given their usual and customary meaning. Forthe purposes of this ordinance, unless the context or subject matter clearly requires otherwise, the words or phrases defined in this section shall have the following meanings: CC: Legislative Development\Parks Impact Fees—Early Learning Facility exemption 8-10-21 BM:bjs Page 1 of 5 267 1. "Accessory residential structure" means a structure that is incidental and subordinate to the principal residence on the property and is physically detached to the principal residence, but does not include accessory dwelling units. For example, a detached garage or storage shed for garden tools are considered accessory residential stru ctu res. 2. "Accessory dwelling unit (ADU)" means a dwelling unit that is within or attached to a single-family dwelling or in a detached building on the same lot as the primary single-family dwelling. An ADU is distinguishable from a duplex by being clearly subordinate to the primary dwelling unit, both in use and appearance. 3. "Building permit" means an official document or certification of the City of Tukwila issued by the City's building official which authorizes the construction, alteration, enlargement, conversion, reconstruction, remodeling, rehabilitation, erection, placement, demolition, moving, or repair of a building or structure. 4. "City" means the City of Tukwila, Washington, County of King. 5. "Development activity" means any construction, reconstruction, or expansion ofa building,structure, or use, or any changes in use of a building or structure, or any changes in the use of land, requiring development approval. 6. "Development approval" means any written authorization from the City, which authorizes the commencement of the "development activity." 7. "Early Learning Facility" is defined consistent with RCW 43.31.565(3) as now enacted or hereafter amended. 8. "Encumber" means to reserve, set aside, or earmark the parks impact fees in order to pay for commitments, contractual obligations, or other liabilities incurred for the provision of parks services. 9. "Fee payer" is a person, corporation, partnership, an incorporated association or governmental agency, municipality, or similar entity commencing a land development activity that requires a building permit and creates a demand for additional parks capital facilities. 10. "Impact fee" means the payment of money imposed by the City on development activity pursuant to this ordinance as a condition of granting development approval in order to pay for the parks facilities needed to serve growth and development that is a proportionate share of the cost of parks capital facilities used for facilities that reasonably benefit development. Impact fees do not include reasonable permit fees, application fees, administrative fees for collecting and handling parks impact fees, or the cost of reviewing independent fee calculations. 11. "Low-income housing" means housing where monthly costs, including utilities otherthan telephone, are no greater than 30% ofthe resident's household monthly income and where household monthly income is 80% or less of the King County Median family income adjusted for familysize as reported by the U.S. Department of Housing and Urban Development. CC: Legislative Development\Parks Impact Fees—Early Learning Facility exemption 8-10-21 BM:bjs Page 2 of 5 12. "Owner" means the owner of record of real property, as found in the records of King County, Washington, or a person with an unrestricted written option to purchase property; provided, that if the real property is being purchased under a recorded real estate contract, the pu rchaser shall be considered the owner of the property. 13. "Parks facilities" means those capital facilities identified as park and recreational facilities in the City's Capital Facilities Plan . 14. "Proportionate share" means that portion of the cost for parks facility improvements that are reasonably related to the service demands and needs of development. Section 2. TMC Section 16.28.120 Amended. Ordinance No.2572 §15, as codified at TMC Section 16.28.120, is hereby amended to read as follows: 16.28.120 Exemptions A. The parks impact fees are generated from the formula for calculating the fees as set forth in this chapter. The amount of the impact fees is determined by the information contained in the adopted parks master plan and related documents, as appended to the City's Comprehensive Plan. All development activity located within the City shall be charged a parks impact fee; provided, that the following exemptions shall apply. B. The following shall be exempt from parks impact fees: 1. Replacement of a structure with a new structure having the same use, at the same site, and with the same gross floor area, when such replacement is within 12 months of demolition or destruction of the previous structure. 2. Alteration, expansion, or remodeling of an existing dwelling or structure where no new units are created and the use is not changed. 3. Construction of an accessory residential structure. 4. Miscellaneous improvements including, but not limited to, fences, walls, swimming pools, and signs that do not create an increase in demand for parks services. 5. Demolition of or moving an existing structure within the City from one site to another. 6. Parks impact fees for the construction of low-income housing may be reduced when requested by the property owner in writing prior to permit submittal and subject to the following: a. The property owner must submit a fiscal impact analysis of how a reduction in impact fees for the project would contribute to the creation of low-income housing; and b. The property owner must record a covenant per RCW 82.02.060(3) that prohibits using the property for any purpose other than for low-income housing at the original income limits for a period of at least 10 years. At a minimum, the covenant must address price restrictions and household income limits for the low-income housing, and that if the property is converted to a use other than low income housing within 10 years, CC: Legislative Development\Parks Impact Fees—Early Learning Facility exemption 8-10-21 BM:bjs Page 3 of 5 269 the property owner must pay the City the applicable impact fees in effect at the time of conversion. c. Should the property owner satisfy the criteria in TMC Section 16.28.120.6.6., a and b, the fees will be reduced, based on the following table: Unit Size Affordability Target 1 Fee Reduction 2 or more bedrooms 80% 2 40% 2 or more bedrooms 60% 2 60% Any size 50% 2 80% 1 — Units to be sold or rented to a person or household whose monthly housing costs, including utilities other than telephone, do not exceed 30% of the household's monthly income. 2 — Percentage of King County Median family income adjusted for family size as reported by the U.S. Department of Housing and Urban Development. 7. Change of Use. A development permit for a change of use that has less impact than the existing use shall not be assessed a parks impact fee. 8. A fee payer required to pay for system improvements pursuant to RCW 43.21C.060 shall not be required to pay an impact fee for the same improvements under this ordinance. 9. An Early Learning Facility is exempt from paying 80 percent of the required Parks Impact Fee. Section 3. Corrections by City Clerk or Code Reviser. Upon approval of the City Attorney, the City Clerk and the code reviser are authorized to make necessary corrections to thisordinance, including the correction of clerical errors; references to other local, state or federal laws, codes, rules, or regulations; or ordinance numbering and section/subsection numbering. ' Section 4. Severability. If any section, subsection, paragraph, sentence, clause or phrase of this ordinance or its application to any person or situation should be held to be invalid or unconstitutional for any reason by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of the remaining portions of this ordinance or its application to any other person or situation. Section 5. Effective Date. This ordinance ora summary thereof shall be published in the official newspaper of the City, and shall take effect and be in full force five days after passage and publication as provided by law. CC: Legislative Development\Parks Impact Fees—Early Learning Facility exemption 8-10-21 BM:bjs Page 4 of 5 PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of , 2021. ATTEST/AUTHENTICATED: Christy O'Flaherty, MMC, City Clerk Allan Ekberg, Mayor APPROVED AS TO FORM BY: Filed with the City Clerk: Passed by the City Council: Published: Office of the City Attorney Effective Date: Ordinance Number: CC: Legislative Development \ Parks Impact Fees—Early Learning Facil ity exemption 8-10-21 BM:bjs Page 5 of 5 271 City of Tukwila Washington Ordinance No. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, AMENDING ORDINANCE NOS. 2521 §1, 2305 §1, AND 2111 §1 (PART), AS CODIFIED AT TUKWILA MUNICIPAL CODE (TMC) SECTION 9.48.020, AND ORDINANCE NOS. 2622 §4 AND 2521 §2, AS CODIFIED AT TMC SECTION 9.48.125, TO ADD AN EXEMPTION TOT RANSPORTATION IMPACT FEES FOR EARLY LEARNING FACILITIES; PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, the City Council adopted Ordinance No. 2111 on December 5, 2005, regarding the imposition of Transportation Impact Fees within the City; and WHEREAS, the Washington State Legislature passed Substitute House Bill 1331 related to the application of impact fees on early learning facilities within the State of Washington; and WHEREAS, early learning facilities provide broad public service to the Tukwila community by providing childcare for Tukwila community members; and WHEREAS, on August 9, 2021, following adequate public notice, the Tukwila City Council held a public hearing to receive public testimony on this ordinance; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY ORDAINS AS FOLLOWS: Section 1. TMC Section 9.48.020 Amended. Ordinance Nos. 2521 §1, 2305 §1, and 2111 §1 (part), as codified at Tukwila Municipal Code (TMC) Section 9.48.020, are hereby amended to read as follows: 9.48.020 Definitions The words and terms contained in this chapter shall have the following meanings for the purposes of this chapter, unless the context clearly requires otherwise. Terms or words not defined herein shall be defined pursuant to RCW 82.02.090 when given their usual and customary meaning. CC:\Legislative Development\Transportation Impact Fees—EariyLearning Facility exemption 8-10-21 BM:bjs Page 1 of 4 273 1. The "Act" means the Growth Management Act, Chapter 17, Laws of 1990, First Extraordinary Session , Chapter36.70A RCW et seq., and Chapter32, Laws of 1991, First Special Session, as now in existence or hereinafter amended. 2. "Building permit" means an official document or certification of the City of Tukwila issued by the City's building official which authorizes the construction, alteration, enlargement, conversion, reconstruction, remodeling, rehabilitation, erection, placement, demolition, moving, or repair of a building orstructure. 3. "City" means the City of Tu kwila, Washington. 4. "Development" means the construction, reconstruction, conversion, structural alteration, relocation or enlargement of any structure that requires a building permit. 5. "Development activity" means any construction of a building or structure that creates additional demand and need for transportation facilities. 6. "Development approval" means any written authorization from the City, which authorizes the commencement of the "development activity." 7. "Early Learning Facility"is defined con sistentwith RCW 43.31.565(3) as now enacted or hereafter amended. 8. "Fee payer" is a person, corporation, partnership, an incorporated association or governmental agency, municipality, or similar entity commencing a land development activity, which requires a building permit and creates a demand for additional facilities. 9. "Impact fee" means the payment of money imposed by the City on development activity pursuant to this chapter as a condition of granting development approval, in order to pay for the transportation facilities needed to serve new growth and development that is a proportionate share of the cost of the capital facilities that is used for facilities that reasonably benefit new development. Impact fees are independent of a permit fee, an application fee, a concurrency test fee, and the administrative fee for collecting and handling impact fees or cost of reviewing independent fee calculations. 10. "Letter encumbered"means to reserve, set aside, or earmark the impact fees in order to pay for commitments, contractual obligations, or other liabilities incurred for the provision of transportation facilities. 11. "Low-income housing" means housing where monthly costs, including utilities other than telephone, do not exceed 30% of the resident's household monthly income and where household monthly income must be 80 percent or less of the King County Median family income adjusted for family size as reported by the U.S. Department of Housing and Urban Development. 12. "Owner" means the owner of record of real property, as found in the records of King County, Washington, or a person with an unrestricted written option to purchase property; provided, that if the real property is being purchased under a recorded real estate contract, the purchaser shall be considered the owner of the property. CC:\Legislative Development\Transportation Impact Fees—Early Learning Facility exemption 8-10-21 BM:bjs Page 2 of 4 13. "Proportionate fair share" means that portion of the cost for transportation facility improvements that are reasonably related to the service demands and needs of new development. Section 2. TMC Section 9.48.125 Amended. Ordinance Nos. 2622 §4 and 2521 §2, as codified at TMC Section 9.48.125, are hereby amended to read as follows: 9.48.125 Exemptions A. The impact fees are generated from the formula for calculating the fees as set forth in this chapter. The amount of the impact fees is determined by the information depicted on Figure 9-1 herein. All development activity located within the City shall be charged a transportation impact fee, provided that the following exemptions shall apply. B. The following shall be exempt from transportation impact fees: 1. Replacement of a structure with a new structure having the same use, at the same site, and with the same gross floor area, when such replacement is within 12 months of demolition or destruction of the previous structure. 2. Alteration, expansion, or remodeling of an existing dwelling or structure where no new u nits are created and the use is not changed. 3. Construction of an accessory residential structure. 4. Miscellaneous improvements including, but not limited to, fences, walls, swimming pools and signs that do not impact the transportation system. 5. Demolition of or moving an existing structure within the City from one site to another. 6. Transportation impact fees for the construction of low-income housing may be reduced at the discretion of the Public Works Director when requested by the property owner in writing prior to permit submittal and subject to the following criteria: a. Submittal of a fiscal impact analysis of how a reduction in impact fees for the project would contribute to the creation of low-income housing; b. Fee reduction table. Unit Size Affordability Target' Fee Reduction 2 or more bedrooms 80% 2 40% 2 or more bedrooms 60% 2 60% Any size 50% 2 80% 1— Units to be sold or rented to a person or household whose monthly housing costs, including utilities other than telephone, do not exceed 30% of the household's monthly income. 2 — Percentage of King County Median family income adjusted for family size as reported by the U.S. Department of Housing and Urban Development. CC:\Legislative Development\Transportation Impact Fees—Early Learning Facility exemption 8-10-21 BM:bj s Page 3 of 4 275 c. The developer must record a covenant per RCW 82.02.060 (3) that prohibits using the property for any purpose other than for low-income housing at the original income limits for a period of at least 10 years. Ata minimum, the covenant must address price restrictions and household income limits for the low-income housing, and that if the property is converted to a use other than low-income housing within 10 years, the property owner must pay the City the applicable impact fees in effect at the time of conversion. 7. Change of Use. A development permit for a change of use that has less impact than the existing use shall not be assessed a transportation impact fee. 8. A fee payer required to pay for system improvements pursuant to RCW 43.21C.060 shall not be required to pay an impact fee for the same improvements under this ordinance. 9. An Early Learning Facility is exempt from paying 80 percent of the required Transportation Impact Fee. Section 3. Corrections by City Clerk or Code Reviser. Upon approval of the City Attorney, the City Clerk and the code reviser are authorized to make necessary corrections to this ordinance, including the correction of clerical errors; referencesto other local, state or federal laws, codes, rules, or regulations; or ordinance numbering and section/subsection numbering. Section 4. Severability. If any section, subsection, paragraph, sentence, clause or phrase of this ordinance or its application to any person or situation should be held to be invalid or unconstitutional for any reason by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of the remaining portions of this ordinance or its application to any other person or situation. Section 5. Effective Date. This ordinance ora summary thereof shall be published in the official newspaper of the City, and shall take effect and be in full force five days after passage and publication as provided by law. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of , 2021. ATTEST/AUTHENTICATED: Christy O'Flaherty, MMC, City Clerk APPROVED AS TO FORM BY: Office of the City Attorney Allan Ekberg, Mayor Filed with the City Clerk: Passed by the City Council: Published: Effective Date: Ordinance Number: CC:\Legislative Development\Transportation Impact Fees—Early Learning Facility exemption 8-10-21 BM:bjs Page 4 of 4 COUNCIL AGENDA SYNOPSIS Initials Meeting Date Prepared by Mayor's review Council review 8/9/21 BJM 8/16/21 BJM ITEM INFORMATION ITEM No. 6.C. (4) STAFF SPONSOR: B. MILES ORIGINAL AGENDA DATE: 8/9/21 AGENDA ITEM TITLE Impact Fee Exemption for Early Learning Facilities: Motion Requiring Biannual Reports CATEGORY ® Discussion Mtg Date 8/9/21 ® Motion Mtg Date 8/16/21 Resolution Mtg Date ❑ Ordinance Mtn Date Bid Award Mtg Date ❑ Public Hearing ❑ Other Mtg Date Mtg Date SPONSOR ❑ Council ❑ Mayor ❑ Admin Svcs ❑ DCD ❑ Finance ❑ Fire ❑ P&'R ❑ Police ❑ PIF SPONSOR'S SUMMARY As part of the discussion regarding impact fee exemptions for early learning facilities, the Council requested regular reporting on the program and results in attracting early learning facilities to the City. Staff recommends the following language: "Approve the requirement for bi-annual reports to the City Council regarding the Impact Fee Exemption Program for early learning facilities to be provided on or before December 1 and June 1 each year." REVIEWED BY ❑ Trans&Infrastructure Svcs ❑ Community Svcs/Safety ❑ Finance & Governance ❑ Planning & Community Dev. ❑ LTAC ❑ Arts Comm. ❑ Parks Comm. ❑ Planning Comm. DATE: N/A COMMITTEE CHAIR: N/A RECOMMENDATIONS: SPONSOR/ADMIN. Mayor's Office, Economic Development COMMITTEE N/A COST IMPACT / FUND SOURCE EXPENDITURE REQUIRED $N/A AMOUNT BUDGETED $N/A APPROPRIATION REQUIRED $N/A Fund Source: N/A Comments: N/A MTG. DATE RECORD OF COUNCIL ACTION 8/9/21 Discussion at C.O.W. 8/16/21 MTG. DATE ATTACHMENTS 8/16/21 No attachments 277