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Legislation #: 000083 Introduction Date: 2/3/2000
Type: Ordinance Effective Date: 5/1/2002
Sponsor: COUNCILMEMBER FORD AND COUNCILMEMBER DANAHER
Title: Amending the Code of Ordinances of the City of Kansas City, Missouri, by enacting a new chapter to be numbered and known as Chapter 39, Arterial Street Impact Fees, which imposes arterial street impact fees on all new development in the City, north of the Missouri River; and establishing the effective date.

Legislation History
DateMinutesDescription
2/3/2000

Prepare to Introduce

2/3/2000

Referred Planning, Zoning & Economic Development Committee

2/9/2000

Hold On Agenda

3/8/2000

Hold On Agenda

5/3/2000

Hold On Agenda

6/7/2000

Hold On Agenda

8/2/2000

Hold On Agenda

8/23/2000

Hold On Agenda

9/6/2000

Hold On Agenda

9/27/2000

Hold On Agenda

10/11/2000

Do Pass as a Third Committee Substitute

10/12/2000

Assigned to Third Read Calendar

10/19/2000

Passed As Third Substitute


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THIRD COMMITTEE SUBSTITUTE FOR ORDINANCE NO. 000083

 

Amending the Code of Ordinances of the City of Kansas City, Missouri, by enacting a new chapter to be numbered and known as Chapter 39, Arterial Street Impact Fees, which imposes arterial street impact fees on all new development in the City, north of the Missouri River; and establishing the effective date.

 

BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:

 

Section 1. That a new chapter of the Code of Ordinances of the City of Kansas City, Missouri, is hereby enacted to be numbered and known as Chapter 39, Arterial Street Impact Fees, to read as follows:

 

Chapter 39

 

Arterial Street Impact Fees

 

Sec. 39-1. Title, intent and authority.

 

(a) This Chapter shall be known and cited as the "Arterial Street Impact Fee Ordinance."

 

(b) The Arterial Street Impact Fee Ordinance is intended to impose a fee, payable at the time of building permit issuance, in an amount based upon the amount of new arterial street demand attributable to new development and the cost of providing the additional arterial street facilities needed to serve that new development.

 

(c) At the present time, this Arterial Street Impact Fee Ordinance will only impose impact fees in the area of the City of Kansas City, north of the Missouri River, as defined by Section 39-6. The City is in the process of developing similar fees through a later amendment of this chapter that will be applied south of the river.

 

(d) The impact fees adopted pursuant to this Chapter 39 are based upon the calculation methodology incorporated in Duncan Associates, Arterial Street Impact Fee Study, Phase One: North Service Area.

 

(e) The Council of the City of Kansas City has the authority to adopt this Chapter 39 pursuant to the Missouri Constitution, the City Charter, and Missouri State Statutes.

 

Sec. 39-2. Definitions.

 

As applied in this Chapter 39, the following words and terms shall have the following meanings, unless another meaning is clearly intended:

 

(a) Applicant means the property owner or duly designated agent of the property owner of land on which a building permit is requested and an arterial street impact fee is due pursuant to this Chapter 39.

 


(b) Arterial Street Impact Fee means a fee imposed on new development proportionate with the costs the City will incur to provide arterial street facilities needed to serve that new development at the existing level of service for arterial street facilities.

 

(c) Arterial street improvements means the planning of, engineering for, and the construction of capacity-expanding improvements for the arterial system.

 

(d) Arterial street or arterial systems means all existing and planned City-maintained primary and secondary arterial streets and parkways and boulevards identified on the City's adopted Major Street Plan. In addition, the following two state-maintained roadways shall also be considered part of the arterial system eligible for funding with the Citys arterial street impact fees: M-9 from Parkville city limits to Barry Road and M-291 from I-435 to Liberty city limits.

 

(e) Building permit means the permit required for new construction and additions pursuant to the City's existing building, subdivision and zoning regulations.

 

(f) City means the City of Kansas City, Missouri.

 

(g) Feepayer means a person who is obligated to pay an impact fee in accordance with the terms of this Chapter 39.

 

(h) Gross floor area means the total area of all floors within the outside dimensions of a building including halls, lobbies and stairways. It shall not include floor space within the building reserved for parking or loading vehicles, unimproved basement space, separate space used only for building maintenance and utilities or exterior features for the building, such as stairs, porches and walkways.

 

(i) Impact fee administrator means the person or persons designated by the City to administer this Chapter.

 

(j) Nonresidential development means the construction of any nonresidential structures.

 

(k) Residential development means the construction, either separately or combined together, of residential dwelling units.

 

Sec. 39-3. Applicability and exemptions.

 

(a) On or after the effective date of this Chapter 39, any person who shall construct either a new residential or nonresidential development in the area of the City of Kansas City north of the Missouri River, as defined by Section 39-6, shall be obligated to pay an arterial street impact fee.

 

(1) No building permit shall be issued unless the applicant thereof has paid the applicable impact fee imposed by this Chapter 39 unless otherwise exempted under subsection (b) below. The fee shall be collected prior to the issuance of a building permit for the development. If the permit is for less than the entire development, the fee shall be computed separately for the amount of development covered by the building permit.

 

(2) Any building permit issued without payment by the applicant and collection by the Impact Fee Administrator of the required impact fee pursuant to the provisions of this Chapter 39 shall be null and void.

 

(b) This Chapter 39 shall not be applicable to building permits otherwise necessary for:

 

(1) Room additions, remodeling, rehabilitation or other improvements to an existing structure, provided that there is no increase in the number of dwelling units for residential use or in the amount of square footage for nonresidential use.

 

(2) Rebuilding or replacement of a damaged, destroyed, demolished or removed structure, whether voluntary or involuntary, provided that there is no increase in the number of dwelling units for residential use or in the amount of square footage for nonresidential use, that there is no change of use that would generate more peak hour vehicular traffic than the previous use, and that the rebuilding or replacement occurs no later than ten (10) years after the demolition or removal of the previous structure.

 

(c) This Chapter 39 shall not be applicable if a completed application for a building permit has been submitted to the Department of Codes Administration prior to the effective date of this Chapter 39, and if the construction proceeds according to the terms of the building permit. If said building permit expires, application for a new building permit shall be subject to this Chapter 39.

 

Sec. 39-4. Fee schedule.

 

(a) The City shall calculate the impact fee due by:

 

(1) Verifying the number and type of dwelling units or square footage of nonresidential structures that are proposed to be constructed as shown on the building permit application.

 

(2) Determining the impact fee that shall be applied for each dwelling unit or square footage of nonresidential structure pursuant to subsection (b) of this section. In the event that the type of use proposed is not listed in the fee schedule, the fee for the most similar use, in terms of traffic generation, shall be used. The description of land use categories in the most current edition of the Institute of Transportation Engineers (ITE) Trip Generation manual shall be used as a guide in applying the land uses in the fee schedule.

 

(3) Multiplying the number of dwelling units or square footage of nonresidential structures, stated in terms of 1,000 square feet of gross floor area, or other applicable development unit by the applicable impact fee.

 

(b) The following are the arterial street impact fees applicable to new residential and nonresidential development:

 

PROPOSED FEE SCHEDULE

 

 

Land Use Type

 

Unit

Net Cost/ Unit

Discount Factor

Discounted Fee

Single-Family Detached*

Dwelling

$1,430.00

75%

$1,073.00

Multi-Family**

Dwelling

$873.00

75%

$655.00

Mobile Home Park

Pad Site

$788.00

75%

$591.00

Congregate Care Facility

Dwelling

$240.00

75%

$180.00

Hotel/Motel

Room

$668.00

75%

$501.00

Retail/Commercial

 

 

 

 

Shopping Center/General Retail, 0-100,000 sf

1000 sq. ft.

$2,928.00

75%

$2,196.00

Shopping Center/General Retail, 100,001-500,000 sf

1000 sq. ft.

$2,157.00

75%

$1,618.00

Shopping Center/General Retail, 500,001-1 million sf

1000 sq. ft.

$1,994.00

75%

$1,496.00

Shopping Center/General Retail, 1 million sf+

1000 sq. ft.

$1,977.00

75%

$1,483.00

Automobile Dealership

1000 sq. ft.

$1,738.00

75%

$1,304.00

Automobile Parts Sales

1000 sq. ft.

$3,715.00

75%

$2,786.00

Bank, Walk-In

1000 sq. ft.

$6,317.00

75%

$4,738.00

Bank, Drive-In

1000 sq. ft.

$10,443.00

75%

$7,832.00

Building Material & Lumber

1000 sq. ft.

$2,850.00

75%

$2,138.00

Car Wash, Self Service

Stall

$4,092.00

75%

$3,069.00

Convenience Store with Gasoline Sales

1000 sq. ft.

$6,848.00

75%

$5,136.00

Discount Store, Free-Standing

1000 sq. ft.

$2,876.00

75%

$2,157.00

Drugstore/Pharmacy without Drive-Through

1000 sq. ft.

$4,426.00

75%

$3,320.00

Drugstore/Pharmacy with Drive-Through

1000 sq. ft.

$5,581.00

75%

$4,186.00

Electronic Superstore

1000 sq. ft.

$1,712.00

75%

$1,284.00

Furniture Store

1000 sq. ft.

$128.00

75%

$96.00

Gasoline Service Station

fuel position

$2,876.00

75%

$2,157.00

Gasoline Service Station w/Convenience Market

fuel position

$2,268.00

75%

$1,701.00

Home Improvement Store

1000 sq. ft.

$1,301.00

75%

$976.00

Movie Theater

1000 sq. ft.

$2,688.00

75%

$2,016.00

Restaurant, Fast Food***

1000 sq. ft.

$6,386.00

75%

$4,790.00

Restaurant, Sit-Down

1000 sq. ft.

$4,023.00

75%

$3,017.00

Supermarket

1000 sq. ft.

$5,530.00

75%

$4,148.00

Tire Store

1000 sq. ft.

$3,895.00

75%

$2,921.00

Video Rental Store

1000 sq. ft.

$6,531.00

75%

$4,898.00

Office/Institutional

 

 

 

 

Office, General

1000 sq. ft.

$2,106.00

75%

$1,580.00

Office, Medical

1000 sq. ft.

$5,170.00

75%

$3,878.00

Hospital

1000 sq. ft.

$1,301.00

75%

$976.00

Library

1000 sq. ft.

$2,500.00

75%

$1,875.00

Nursing Home

1000 sq. ft.

$505.00

75%

$379.00

Church

1000 sq. ft.

$933.00

75%

$700.00

Day Care Center

1000 sq. ft.

$2,234.00

75%

$1,676.00

Elementary/Secondary School

1000 sq. ft.

$171.00

75%

$128.00


 

Industrial

 

 

 

 

Industrial

1000 sq. ft.

$1,301.00

75%

$976.00

Warehouse

1000 sq. ft.

$719.00

75%

$539.00

Mini-Warehouse

1000 sq. ft.

$368.00

75%

$276.00

Recreational

 

 

 

 

Amusement Park

Acre

$556.00

75%

$417.00

Bowling Alley

1000 sq. ft.

$496.00

75%

$372.00

Golf Course

Hole

$385.00

75%

$289.00

Golf Driving Range

Tee

$882.00

75%

$662.00

Health Club

1000 sq. ft.

$3,039.00

75%

$2,279.00

Miniature Golf Course

Hole

$462.00

75%

$347.00

Park

Acre

$86.00

75%

$65.00

Recreational Community Center

1000 sq. ft.

$2,474.00

75%

$1,856.00

 

* includes mobile home on individual lot

** includes apartments, duplexes, townhouses and residential condominiums

*** defined as restaurant with walk-up take-out counter, drive-through window or service to persons in automobiles

 

(c) For redevelopment, reconstruction or expansion of an existing development, the fee shall be calculated by taking the difference between the total fees calculated for the proposed use and for the prior use of the site, provided that the prior use was in operation within ten (10) years prior to the first building permit for the redevelopment. In the event that no use was in operation on the site within the last ten (10) years, the redevelopment shall be treated the same as a new development.

 

(d) For a proposed mixed-use development, the impact fee for each residential dwelling type and nonresidential structure shall be calculated separately and the fees added together to determine the appropriate impact fee for the development.

 

Sec. 39-5. Individual assessments.

 

(a) The impact fee shall be computed by the use of an individual assessment of traffic impact if:

 

(1) The type of new development being commenced is not similar, in terms of traffic generation, to any of the land use types listed on the fee schedule in Sec. 39-4;

 

(2) The feepayer chooses to have the amount of the fee determined by the use of an individual assessment; or

 

(3) The Impact Fee Administrator concludes that the nature, timing or location of the proposed new development makes it likely to generate impacts costing substantially more to mitigate than the amount of the fee that would be generated by the use of the fee schedule.

(b) The applicant shall be responsible for preparation of the individual assessment if the applicant chooses to conduct the analysis. The Impact Fee Administrator shall be responsible for preparation of the individual assessment if the type of land development being proposed is interpreted not to be one of those types listed in the fee schedule or analysis of the proposed new development concludes that the nature, timing or location of the proposed new development makes it likely to generate impacts costing substantially more than the amount of the fee generated by the use of the fee schedule. The person who prepares the individual assessment shall be a qualified professional in the preparation of transportation impact analysis and shall be approved by the Impact Fee Administrator on the basis of professional training and experience. If the Impact Fee Administrator is responsible for preparation of the assessment, the Administrator may request the applicant to prepare the individual assessment and credit the cost for such preparation against the impact fees.

 

(c) The individual assessment for the arterial street impact fee shall determine if the proposed new development is designed or located so that the new development will place less demand on the arterial system than that projected in the fee schedule. The individual assessment shall calculate the applicable impact fees according to the following formula:

 

ASSESSED FEE

=

75% x MAXIMUM FEE

MAXIMUM FEE

=

PK HR VMT x NET COST/VMT

Where:

 

 

PK HR VMT

=

PK HR TRIPS x % NEW x LENGTH 2

PK HR TRIPS

=

Trip ends during PM peak hour of adjacent street traffic

% NEW

=

Percent of trips that are primary, as opposed to passby or diverted-link trips

LENGTH

=

Average length of a trip on the City arterial system

2

=

Avoids double-counting trips for origin and destination

NET COST/VMT

=

Average cost to accommodate a new peak hour VMT at LOS D, less revenue and deficiency credits, which has been calculated in the 1999 study by Duncan Associates to be $878

 

(d) Review of application.

 

(1) An individual assessment shall be undertaken through the submittal of an application of individual assessment of arterial street impact fees. An applicant may submit such an application at the applicants discretion. The Impact Fee Administrator shall submit such an application for any proposed new development interpreted as not one of those types listed on the Fee Schedule and for any proposed new land development for which it concludes the nature, timing or location of the proposed new development makes it likely to generate impacts costing substantially more to mitigate than the amount of the fee that would be generated by the use of the Fee Schedule.

 

(2) Within one month of receipt of any application for individual assessment, the Impact Fee Administrator shall determine if the application is complete. If the Impact Fee Administrator determines that the application is not complete, a written statement shall be sent to the applicant by mail, specifying the deficiencies. The Impact Fee Administrator shall take no further action on the application until it is deemed complete.

 

(3) When the Impact Fee Administrator determines the application is complete, the application shall be reviewed and a written decision rendered in one month on whether the fee should be modified and, if so, what the amount should be.

 

(d) If the Impact Fee Administrator finds that the data, information and assumptions used by the applicant to calculate the individual assessment satisfies the requirements of this section, the fee determined in the individual assessment shall be deemed the fee due and owing for the proposed new development. This adjustment in the fee shall be set forth in a fee agreement.

 

(e) Any applicant may appeal the Impact Fee Administrators decision on the individual assessment, whether initiated by the applicant or by the Impact Fee Administrator, by filing a petition to the Board of Zoning Adjustment of Kansas City, Missouri, pursuant to Section 39-9. The applicant must file a notice of appeal with the Impact Fee Administrator within ten days following the decision on the individual assessment.

 

Sec. 39-6. Accounting and expenditures.

 

(a) Any fees collected under this Chapter 39 are expressly designated for arterial street improvements within the jurisdiction of Kansas City as hereinafter provided in this section, the payment of the costs of administration of the impact fees, and the payment of consultant fees to update the arterial street impact fees.

 

(b) Impact fees calculated and imposed pursuant to this Chapter 39 shall be collected by the Impact Fee Administrator prior to issuance of a building permit.

 

(c) Impact fees shall be transferred from the Impact Fee Administrator to the City's Finance Department for placement in separate trust accounts, which have been established pursuant to subsection (d) below.

 

(d) There are hereby established five arterial street impact fee benefit districts, as identified in Exhibits A-1 to A-5, which are attached hereto and incorporated herein by reference, and a separate trust account for each benefit district, for the purpose of ensuring that the impact fees collected in each district are spent on improvements that reasonably benefit the fee-paying development. The benefit districts are generally described as follows:

 

(1) Benefit District A, an area referred to as east of KCI Airport, bounded on the north and west by the City limits, on the south by M-152 and on the east by U.S. 169;

 

(2) Benefit District B, an area referred to as N. Oak Corridor, and bounded on the north by the City limits, on the west by U.S. 169, on the south by the northern Gladstone city limits and its westward extension to U.S.169 and an eastern boundary defined by N. Eastern Avenue from the northern City limits to M-291, M-291 from N. Eastern Avenue to I-435, I-435 from M-291 to Barry Road, Barry Road from I-435 to M-1, and M-1 from Barry Road to the Gladstone city limits;

 

(3) Benefit District C, an area referred to as Shoal Creek Valley, bounded on the west by N. Eastern Avenue from the northern City limits to M-291, M-291 from N. Eastern Avenue to I-435, I-435 from M-291 to Barry Road, Barry Road from I-435 to M-1, M-1 from Barry Road to the Gladstone city limits and Gladstone north and east city limits, on the south by Pleasant Valley Road, and on the north and east by the City limits;

 

(4) Benefit District D, an area referred to as Birmingham, bounded on the north by Pleasant Valley Road and the City limits, on the east by the City limits, on the south by the Missouri River, and on the west by N. Brighton, the Gladstone south city limits extension to N. Brighton, and the Gladstone east city limits;

 

(5) Benefit District E an area referred to as Line Creek Valley, bounded on the north by M-152, on the east by U.S. 169, and southern and western boundary defined by Briarcliff Parkway from U.S. 169 to M-9, M-9 from Briarcliff Parkway to the City limits, and the City limits to the west and south.

 

(e) Every impact fee collected shall be deposited or credited to the trust account for the benefit district in which the fee was collected, except that annually, up to three (3) percent of the fees collected for that year shall be transferred to the City's general fund for the purpose of paying the costs of administration of the arterial street impact fee program. The cost of consultant fees to update the arterial street impact fees shall be funded by a uniform percentage of the fees collected in each benefit district during the last year.

 

(f) Impact fees collected and deposited and all interest accrued on such funds shall be used solely for the purpose of arterial street improvements within the benefit district payment of the costs of administration of the arterial street impact fee, and the payment of consultant fees to update the arterial street impact fees. No impact fees shall be spent in the area north of the Missouri river which is not included within any of the five benefit districts as defined in this section 39-6. Any arterial street used as a boundary between two benefit districts shall be considered as included within both benefit districts, and may be improved with fees collected in either benefit district. Eligible improvements include construction of new arterial streets, widening existing arterial streets to add additional lanes, and signalization, intersection improvements and other improvements that demonstrably expand the capacity of the City's arterial system to accommodate the transportation demands of new development. The fees shall not be used for right-of-way acquisition, for improvements to roadways other than City-maintained arterial streets, or for maintenance or repair of existing arterial streets.

 

(g) Any proceeds on deposit in the arterial street impact fee trust accounts not immediately necessary for expenditure shall be invested in interest-bearing accounts. All income derived from these investments shall be retained in the trust accounts.

 

(h) Each year, at the time the annual City budget is being prepared, advisory committees whose members are appointed by majority vote of the City Council for each benefit district shall propose appropriations to be spent from the trust accounts. The benefit district advisory committees shall consist of nine members, to include one member from the appropriate City Council district; one member from the Public Improvements Advisory Committee; one member from the City's Public Works Department; one member from the City Development Department; one member from the Parks and Recreation Department; one member from the appropriate Economic Development Commission, either Platte or Clay; one member from the Northland Chamber of Commerce; one residential developer representative; and one commercial developer representative.  A  representative of the Missouri Department of Transportation is recommended to serve  as a non-voting member, if any highway segments are included in the benefit districts arterial system eligible for impact fees. After review of the benefit district advisory committees recommendations, the City Council shall approve, modify or deny the recommended expenditures of the trust account moneys. Any amounts not appropriated from the trust accounts, together with any interest earnings, shall be carried over in the trust accounts to the following fiscal year.

 

(i) Each year, at the time of the annual budget adoption for the City, the City Council shall review the amount of general funds being dedicated for road construction along with the funds available and paid pursuant to this chapter in order to provide for the orderly growth of the City.

 

Sec. 39-7. Refunds.

 

(a) Any fees collected shall be returned to the feepayer or his successor in interest if the fees have not been spent within seven years from the date the building permit for the residential or nonresidential development was issued, along with interest at the average annual rate earned by funds in the impact fee trust accounts. Fees shall be deemed to be spent on the basis that the first fee collected shall be the first fee spent. The refund of the fees shall be undertaken through the following process:

 

(1) The current owner of the property must petition the City for the refund within one year following the seven-year period from the date on which the impact fee was paid. Within one month of the end of the seven-year period from the date on which the unspent impact fee was paid, the Impact Fee Administrator shall notify the feepayer of eligibility for a refund at the address provided by the feepayer at the time of fee payment or at a new address subsequently provided by the feepayer. It shall be the responsibility of the feepayer to keep the address current.

 

(2) The petition must contain the following information:

 

a. A notarized sworn statement that the petitioner is the current owner of the property;

 

b. A copy of the dated receipt issued for payment of the impact fee;

 

c. A certified copy of the latest recorded deed for the property; and

 

d. A copy of the most recent ad valorem tax bill for the property.

 

(3) Within one month from the date of receipt of a petition for refund, the Impact Fee Administrator shall review the petition and determine if it is complete. If the Impact Fee Administrator determines the petition is not complete, a written statement specifying the deficiencies shall be sent to the petitioner by certified mail. Unless the deficiencies are corrected, the Impact Fee Administrator shall take no further action on the petition. When the Impact Fee Administrator determines that the petition is complete, the petition shall be reviewed within one month. The Impact Fee Administrator shall approve the refund petition if it is determined that the feepayer or his successor in interest has paid a fee which the City has not spent within the period of time permitted under this section. The refund shall include the fee paid, plus interest.

 

Any petitioner may appeal the decision on the refund to the Board of Zoning Adjustment of Kansas City, Missouri, pursuant to Section 39-9. The applicant must file a notice of appeal with the Impact Fee Administrator within ten working days following the decision.

 

Sec. 39-8. Construction credits.

 

(a) Any person subject to an impact fee pursuant to this Chapter 39 may apply for a credit against any arterial street impact fee for any contribution, payment or construction accepted and received by the City for any arterial street, including parkways and boulevards as defined herein, identified in the City's adopted Major Street Plan. Credit provided for in this section shall be in addition to those recurring revenue credits factored into the impact fee schedule. Credit shall only be provided for arterials that are or will be the responsibility of the City. No credit shall be provided for the following:

 

(1) Improvements to state roads or federal highways, with the exception of at-grade intersections of City-maintained arterials with state roads or federal highways and state highways and roads which are included within the definition of arterial street or arterial systems in section 39-2(d).

 

(2) Dedication of rights-of-way, since land costs were not included in calculating the arterial street impact fee.

 

(3) Improvements to City streets other than arterial streets, with the exception that improvements to the intersections of City arterials and City non-arterials, shall be eligible if they expand the capacity of the arterial.

 

(4) Any improvement that is primarily related to serving an individual development project, such as acceleration-deceleration lanes, turn lanes or traffic signals that primarily serve traffic entering or exiting the development project.

 

(5) Improvements for which reimbursement or direct funding are being provided for under an approved tax increment financing plan. Notwithstanding the foregoing, any person may apply for a credit and a credit may be provided for arterial street improvements identified in the Citys adopted Major Street Plan if at the time of application for a credit under this Section 39-8, an election to waive payment or reimbursement under the tax increment financing plan is filed with the Tax Increment Financing Commission of Kansas City, Missouri, with a copy provided to the City.

 

(b) Credits shall be calculated as follows:

 

(1) No credit shall be provided under this section for contributions, payments or construction made more than ten (10) years prior to the effective date of this Chapter 39.

 

(2) Credits for contributions, payments or construction made less than ten years prior to the effective date of this Chapter 39 shall be provided if the development for which the contribution, payment or construction was made has not been completed. The current owner of the property for which such contribution, payment or construction was made as a condition of development approval shall file an application for credit within one year of the effective date of this Chapter 39. If the application is not made within one year following the effective date of this Chapter 39, no credit shall be provided. The application for credit shall be submitted and reviewed as provided in this section. The amount of the credit for a contribution, payment or construction made prior to the effective date of this Chapter 39 shall be the current value of the contribution, payment or construction, less the total amount of arterial street impact fees that would have been owed for the building permits already issued for the project had those permits been subject to the maximum fees specified in Sec. 39-4(b). The value of any construction shall not include costs for improvements that are in excess of City standards, unless the City specifically required the higher standard construction. The current value shall be determined using the Engineering News-Record Construction Cost Index, or an equivalent index if such index is discontinued.

 

(3) Any contribution, payment or construction received and accepted by the City on or after the effective date of this Chapter 39 shall be credited in an amount equal to 100 percent of the contribution or payment or the estimated cost of the construction for required arterial street improvement that expands the capacity of the City's arterial system. The estimated cost shall be based on the lowest responsive bid by a qualified bidder, which bid is approved by the Impact Fee Administrator; or, if no bid is available, the estimated cost certified by a licensed engineer and approved by the Impact Fee Administrator. In the event that the impact fee schedule is revised to account for cost inflation prior to the use of the credits, the credits shall be adjusted to current value to the time of the fee schedule update based on the Engineering News-Record Construction Cost Index, or an equivalent index if such index is discontinued. No credit shall be provided unless application for credit is made prior to the issuance of the first building permit for the project.

 

(4) A construction credit may be applied only against arterial street impact fees that would otherwise be due for building permits issued within the development for which the arterial improvement or contribution was required as a condition of development approval. The City shall maintain an accounting of the amount of the credit applicable to the development project, and shall reduce the amount of the credit by the amount by which the arterial street impact fees that would otherwise be due are reduced for each building permit issued for the development. After the credit balance is exhausted, no additional credits shall be applied to subsequent building permits issued within the development project.

 

(5) If the credits applicable to a development exceed the total amount of the fees due for the property, then the amount of the credits in excess of the amount of fees that would otherwise be due may be transferred or sold to be used for another development within the same benefit district. No such excess credits may be transferred or sold by the feepayer until the Impact Fee Administrator has certified the amount of the excess credits. Anyone attempting to use excess credits shall be responsible for proving ownership of the credits to the satisfaction of the Impact Fee Administrator. In the event that the impact fee schedule is revised to account for cost inflation prior to the use of the credits, the credits shall be adjusted to current value to the time of the fee schedule update based on the Engineering News-Record Construction Cost Index, or an equivalent index if such index is discontinued.

 

(c) The determination of any allowable credit shall be undertaken through the submittal of an application for credit agreement, which shall be submitted to the Impact Fee Administrator. The application for credit agreement shall include the following information:

 

(1) If the proposed application for credit agreement involves construction:

 

a. The proposed plan of the specific construction prepared and certified by a duly qualified and licensed engineer or contractor; and

 

b. The lowest responsive bid by a qualified bidder, or, if no bid is available, projected costs for the suggested capital improvement, which shall be based on local information for similar improvements, along with the construction timetable for the completion thereof. Such estimated costs shall include the cost of construction or reconstruction; the cost of plans and specifications; the costs of professional services; and all other expenses necessary or incident to such construction or reconstruction.

 

(2) If the proposed application for credit agreement involves a credit for any contribution or payment:

a. A certified copy of the document in which the contribution or payment was agreed;

 

b. If payment has been made, proof of payment; or

 

c. If payment has not been made, the proposed method of payment.

 

(d) Within one month after receipt of the proposed application for credit agreement, the Impact Fee Administrator shall determine if the application is complete. If it is determined that the application is not complete, the Impact Fee Administrator shall send a written statement by certified mail, return receipt requested, to the applicant at the address for the applicant set forth in the application, outlining the deficiencies. The Impact Fee Administrator shall not take further action on the proposed application until all deficiencies have been corrected or otherwise settled. Failure of the applicant to receive the written statement shall not constitute a failure by the City to send said written statement or a failure of notice.

 

(e) Once the Impact Fee Administrator determines that the proposed application is complete, the Impact Fee Administrator shall review it within one month. The Impact Fee Administrator shall determine the amount of credit due based on the information submitted, or, if it determines that such information is inaccurate or unreliable, then on alternative engineering or construction costs acceptable to the City. The value of the credits may be determined using maximum unit costs based on current low bid results received on other projects through the Citys public bidding process.

 

(f) If the application is approved by the Impact Fee Administrator, a credit agreement that specifically outlines the contribution, payment or construction, the time by which it was or shall be completed or paid and any extensions of time therefor and the dollar credit that the applicant shall receive for the contribution, payment or construction shall be prepared. The credit agreement shall not become effective until the City accepts the facilities or receives the contribution or payment. The credit up to the total amount of impact fees that would otherwise be due from the development project for which the improvement is made shall run with the land and shall not be transferable to any other development project. Any credit in excess of such amount may be transferred or sold pursuant to Sec. 39-8(b)(5).

 

(g) After determination of the amount of the credit, an applicant may appeal such determination to the Board of Zoning Adjustment of Kansas City, Missouri, pursuant to Section 39-9. The applicant must file a notice of appeal with the Impact Fee Administrator within ten days following the determination of the credit.

 

Sec. 39-9. Appeals.

 

(a) Appeals authorized under this Chapter 39 shall be heard by the Board of Zoning Adjustment of Kansas City, Missouri.

 

(b) The Board shall hold a hearing on the appeal within three (3) months of the filing of the appeal by the applicant with the Impact Fee Administrator. Written notice of the time and date of the hearing shall be provided to the applicant at least two weeks prior to the hearing.

 

(c) In making a decision on the appeal, the Board may make written findings of fact and conclusions of law and use the standards of this Chapter 39 that applied to the original administrative decision being appealed.

 

Sec. 39-10. Periodic review.

 

(a) At least once every three years after the effective date of this Chapter 39, the Impact Fee Administrator shall recommend to the City Council whether any changes should be made to the arterial street impact fee schedule to reflect changes in the factors that affect the fee schedule. The purposes of this review are to analyze the effects of inflation on the actual costs of facilities and to ensure that the fees charged new residential and nonresidential development do not exceed the pro rata share of the reasonably anticipated costs of facilities necessitated by new development.

 

(b) Before any ordinance is adopted amending this Chapter 39, the City Council shall appoint an impact fee steering committee. The steering committee shall be composed of not less than five members who shall be appointed by a majority vote of the City Council. Not less than 40 percent of the membership of the steering committee shall be representatives of the real estate, development, or building industries who are not employees or officials of a political subdivision or governmental entity. The steering committee shall review and make a recommendation on any proposed change to this Chapter 39.

 

Sec. 39-11. Repeal of I-35 North Corridor fees.

 

The resolutions approving the I-35/Barry Road Corridor Land Use Plan (Resolution No. 60647) and expanding the area covered by the I-35/Barry Road Corridor Land Use Plan (Resolution No. 62395), which resolutions have been interpreted as authorizing arterial street development fees to be assessed on new development in the I-35 North Corridor Area, are hereby repealed. Any fees collected under those resolutions shall be transferred to the trust fund account for Benefit District C established under this Chapter 39. The arterial street impact fees established by this ordinance are ot intended to be an update of the I-35 North Corridor Area fees, since the arterial street impact fees are broader in scope and are intended to address the impact of new development on the entire arterial system in the North Service Area, not just within the smaller geographic area covered by the I-35 North Corridor Area fees.

 

Section 2. That this ordinance shall be effective ten (10) days after passage or on May 1, 2002; whichever date shall last occur.

 

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Approved as to form and legality:

 

 

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Assistant City Attorney