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HomeMy WebLinkAbout2008-04-22; City Council; 19402; Traffic Impact Fee updateCITY OF CARLSBAD - AGENDA BILL 8 AB# 19,402 MTG. 4/15/08 DEPT. Clerk TRAFFIC IMPACT FEE UPDATE DEPT. HEAD W\ CITYATTY. LS^ CITY MGR. RECOMMENDED ACTION: Adopt Ordinance No. NS-885 amending Title 18, Chapter 18.42 of the Carlsbad Municipal Code updating the Traffic Impact Fee. ITEM EXPLANATION: Ordinance No. NS-885 was introduced and first read at the City Council meeting held on April 8, 2008. The second reading allows the City Council to adopt the ordinance, which would then become effective in thirty days. The City Clerk will have the ordinance published within fifteen days, if adopted. FISCAL IMPACT: See Agenda Bill No. 19,392 on file in the Office of the City Clerk. EXHIBITS: 1. Ordinance No. NS-885. DEPARTMENT CONTACT: Sheila R. Cobian (760) 434-2927, scobi@ci.carlsbad.ca.us FOR CITY CLERKS USE ONLY. COUNCIL ACTION: APPROVED DENIED CONTINUED WITHDRAWN AMENDED / M DX D D D CONTINUED TO DATE SPECIFIC R CONTINUED TO DATE UNKNOWN D RETURNED TO STAFF D OTHER - SEE MINUTES D 1 ORDINANCE NO. NS-885 2 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF 3 CARLSBAD, CALIFORNIA, AMENDING TITLE 18, CHAPTER 18.42, OF THE CARLSBAD MUNICIPAL CODE UPDATING 4 THE TRAFFIC IMPACT FEE. 5 The City Council of the City of Carlsbad, California, hereby ordains as follows: 6 SECTION 1: That Title 18, Chapter 18.42 of the Carlsbad Municipal Code is amended 7 by the revision of Section 18.42.050(a) to read as follows: 8 "18.42.050 Fee. (a) A traffic impact fee of three hundred fifty-three dollars for each average daily tripy generated by a residential project and a traffic impact fee of one hundred forty-two dollars for each 10 average daily trip generated by a commercial or industrial project, pursuant to Section 11 18.42.020(e), shall be paid by the owner or developer prior to the issuance of any building permit 12 or occupancy permit for a project. Traffic impact fees shall be adjusted annually as part of the City's Capital Improvement Program budget process, by two percent or the annual percentage 14 change in the Caltrans Construction Costs Index, (12-Month Index), whichever is higher." 15 SECTION 2: That Title 18, Chapter 18.42 of the Carlsbad Municipal Code is amended by the revision of Section 18.42.070 to read as follows: "18.42.070 Use of Fees. (a) All of the fees collected for a commercial or industrial project shall be allocated to a 18 circulation improvement account and shall be expended only to build or finance circulation 19 improvements serving the city. 20 (b) All of the fees collected for each newly constructed residential unit, excepting the portion defined in paragraph (c), shall be allocated to a circulation improvement account and shall 22 be expended only to build or finance circulation improvements serving the city. 23 (c) A portion of the fees collected for newly constructed residential housing units, 24 excepting the fees collected for newly constructed housing units constructed for extremely low, very-low, low and moderate income households as defined in California Health and Safety Code Sections 50105, 50106, 50079.5 and 50093, during the forty year period starting July 1, 2008 shall 26 be allocated to a separate circulation improvement sub account and shall be used to build or 27 finance circulation improvements to the Regional Arterial System as adopted by the Board of the 28 1 San Diego Association of Governments. For the year from July 1 , 2008 to June 30, 2009, said 2 portion shall equal two thousand dollars per residential housing unit. Said portion shall be adjusted annually as part of the City's Capital Improvement Program budget process, by two percent or the annual percentage change in the Caltrans Construction Costs Index, (12-Month Index), whichever4 is higher." 5 EFFECTIVE DATE: This ordinance was adopted at a noticed public hearing at which G time the City Council of the City of Carlsbad also considered the Traffic Impact Fee Update Study which study and associated information was available to the general public for a period of at least fourteen (14) days prior to the public hearing. The fee established by this ordinance shall apply to 9 the issuance of any building permit, for any residential development issued sixty (60) days 10 following this ordinance's adoption and for all other types of development within sixty (60) days -| following its adoption or upon June 30, 2008 whichever is later. The City Clerk shall certify to the adoption of this ordinance and cause it to be published at least once in a newspaper of general circulation in the City of Carlsbad within fifteen (15) days after its adoption. I O 14 15 17 /// 19 /// 20 /// 21 /// 22 "/ 23 '" III24 25 26 27 /// 28 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 INTRODUCED AND FIRST READ at a regular meeting of the Carlsbad City Council on the 8th day of April 2008, and thereafter. PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 22nd day of April, 2008, by the following vote to wit: AYES: Council Members Lewis, Packard and Nygaard. NOES: Council Members Kulchin and Hall. ABSENT: None. ABSTAIN: None. APPROVED AS TO FORM AND LEGALITY CLAUDE A LEWIS, Mayor ATTEST: M. WOOD, ity Clerk •^ "'*, tf^&P/*%XH>^ New Page 1 Page 1 of 1 Lorraine Wood - Letter Submission for 4/15/08 Council Meeting n Froms "Michael Babowal" <MBabowal@carlsbad.org> To: <lwood@ci.carlsbad.ca.us> Dates 04/15/2008 9:30 AM Subject: Letter Submission for 4/15/08 Council Meeting Attachments: btn_viewmy_120x33.gif; Carlsbad TIF's 4-15-08.pdf CARLSBAD APR 1 5 2008 CITY OF CARLSBAD CITY CLERK'S OFFICE ^ ftlasutfr Lorraine, Please find a letter re: Ordinance No. NS-885 respectfully submitted for the Carlsbad City Council meeting on Tuesday, April 15, 2008. Sincerely, Michael Babowal Director of Government Affairs UTSTANDING ROGRAM Promote your Business while Supporting Carlsbad Education! Toast a Teacher - May 2 at the La Costa Resort and Spa. The event will honor exceptional educators and the extraordinary programs they are implementing in local schools. To attend, purchase a corporate table or sponsor a school, click here. "Entrepreneurs and their small enterprises are responsible for almost all the economic growth in the United States." -Ronald Reagan The information transmitted (including attachments) is covered by the Electronic Communications Privacy Act, 18 U.S.C. 2510-2521, is intended only for the person(s) or entity/entities to which it is addressed and may contain confidential and/or privileged material. Any review, retransmission, dissemination or other use of, or taking of any action in reliance upon, this information by persons or entities other than the intended recipient(s) is prohibited. If you received this in error, please contact the sender and delete the material from any computer. file://C:\Documents and Settings\Kkund\Local Settings\Temp\XPgrpwise\480475B2GW-... 04/15/2008 ARLSBAD CHAMBER OF COMMERCE April 8, 2008 Claude A. "Bud" Lewis, Mayor City of Carlsbad, California 1200 Carlsbad Village Dr Carlsbad, CA 92008 RE: Traffic Impact Fees, Ordinance No. NS-885 Dear Mayor Lewis, On behalf of the Carlsbad Chamber of Commerce and it's over 1,700 members, which represents over 75,000 employees I am writing you again to urge you to not increase traffic impact fees beyond the Regional Transportation Development Impact Fees (RTDIF) prescribed by Transnet. Additional fees imposed by government agencies will only extend the uncertain times in the housing market and local economy. We believe that the City of Carlsbad should be looking at ways to reduce fees and regulatory burdens to help stimulate the local economy and housing market. The Chamber fully believes and stands behind the proposal made by the Building Industry Association of San Diego. The BIA's proposal will allow Carlsbad to gather the needed fees for the Regional Arterial System and implement the RTDIF for residential housing only, while still keeping fees low enough to help stimulate our economy during this slowing period. We would further like to see the City "grandfather" projects, which are going through or have received discretionary approvals under existing fees. The City of Carlsbad has always been fiscally sound and seen as business friendly these increased fees are not business friendly and will encourage developers to build elsewhere. The Carlsbad Chamber of Commerce strongly supports and encourages you to reconsider the proposed increase in traffic impact fees and review the BIA's proposal for fee increases. Thank you for your time and consideration. Please do not hesitate to contact me, or Michael Babowal, director of government affairs at (760) 931-8400. Sincerely, Ted Owen President & CEO JjSjtlt. GRAND PACIFIC RESORTS AGENDAITEM* I ime Away.. .Time Together...« Mayor City Council City Manager City Attorney City Clerk April 18,2008 Mayor Bud Lewis Mayor Pro Tem Ann Kulchin Council Member Matt Hall Council Member Mark Packard Council Member Julie Nygaard Mayor Lewis and Council Members, I have attached a copy of a letter I have forwarded to Marshall Plantz and Bob Johnson in the City of Carlsbad Engineering Department regarding the impact of the proposed Traffic Impact Fee increase. As always, I am available at anytime to discuss this information. Very truly yours, Timothy J. Stripe Co President, Grand Pacific Resorts I,KAN! ) r/V i! K Kl.sOKIs April 18,2008 Mr. Marshall Plantz City of Carlsbad - Engineering Dept. 1635 Faraday Carlsbad, CA 92008 RE: Proposed traffic impact fees on Carlsbad Ranch Resort PA5 (Sheraton Carlsbad Resort & Spa and Grand Pacific MarBrisa Resort) Dear Mr. Plantz, Thank you for meeting with us yesterday. Attached is a schedule that calculates the fiscal impact that the proposed new traffic impact fees will have on our project. We are requesting that the City establish a different fee structure for projects that have obtained all discretionary approvals, but have not obtained the building permits and paid for the traffic impact fees. We would like to propose that these projects in the City pay 50% of the proposed increase. Our rational for this is as follow: Time and money has been spent to get these projects to this stage of development. The sponsors of these projects have performed their expected development costs and related results. Additionally, the capital to develop these projects has been secured and now some projects are faced with a 400% TIF fee increase (if they are in CDF#1). A 400% increase is an exorbitant increase and we feel an offset (discount) of 50% for a project that is approved, but has not obtained the building permits is a reasonable request. Your consideration is greatly appreciated. Very truly yours, Timothy J. Strif Co President, Grand Pacific Resorts cc: Bob Johnson 590O PASTEUR QXJRT. SlIITE2OO * CARLSBAD. CA92OO8 * 1MPHONt76(>43HKOO » FACSIMILt76O-43W58O » www.grMdpacificresorts.com Traffic Fee Proposed Increase Analysis 4.18.08 By Grand Pacific Resorts Hotel Building # 3 (100 Rooms) 1 Existing fee per hotel room $240.00 Proposed fee per Hotel room $1,008.00 Difference $768.00 Number of rooms to be built 100 Fiscal impact of proposed fee increase $76,800.00 1 8 ADTS per room Vacation Villas (322 units) 2 Existing fee per Villa unit $240.00 Proposed fee per Villa Unit $1,008.00 Difference $768.00 Number of units to be built 322 Fiscal impact of proposed fee increase $247,296.00 18 ADT's per unit loduiig Design Group, Inc. --Ovj^iwA ITEM # c: Mayor April 21,2008 City 0 Mayor Lewis and Council Members Cit^ Cl k 1 200 Carlsbad Village Drive Carlsbad, CA 92008 ' RE: Agenda Item #8/Traffic Impact Fee - Ladwig Design Group Job # L-1069 Dear Mayor and Council Members: I apologize for the late response, but the proposed increase in the traffic impact fees will have a more than significant effect on just one project that I am working on here in Carlsbad. La Costa Town Square has been in the planning process with your staff for years now and we are finally looking at the first draft screen check of the EIR. We hope the project will get to hearing later on this fall. As you are aware, this is a very large project. The change in the traffic impact fee from $46.00 for commercial to $142.00 will be an increase of $2,750,1 12 over what we had anticipated to pay ($1,317,762). The new commercial fee would be $4,067,874. Residential fees also increased from $115 per ADT to $353. This will increase our residential TIP fee from $204,240 to $626,928 - an increase of $422,688. Our total commercial and residential TIP is $4,694,802. Our total fee based on current rate is $1,740,450 or an increase of $2,954,352. As you can see, this increase is a substantial hit on this project that has been in the pipeline for years now and is getting close to coming forward through the public hearing process. My suggestion would be to send this proposal back to staff to meet with the local development community including the BIA, and come up with an increase in fee that is not going to be a serious financial impact as is currently proposed. We ask that you not adopt this ordinance as currently proposed. Sincerely, /%$- -- Robert C. Ladwig, President LADWIG DESIGN GROUP, Inc. RCL:age 2234 Faraday fivenue 4 Carlsbad, California 92008 (760) 438-3182 + FflX (760) 438-0173 + 6mail ldg@duuilsoneng.com Mayor CltyConncfl City Manager April 15, 2008 Mayor Bud I^ewis Council Member Ann Kulchin Council Member Matt Hall Council Member Mark Packard Council Member Julie Nygaard Subject Traffic Impact Fee Increase Mayor Lewis and Council Members, Today I was made aware of tonight's Agenda Bill to increase Traffic Impact Fees. I know that this proposed fee increase will have a substantial impact on my Carlsbad Ranch Grand Pacific Resorts project However, I have not had time to read the staff report and attachments to be able to understand the full impact of this item. I respectfully request that you continue this item for at least two weeks. I would like that time to review the report and educate myself on its impact to my project. Once I have the opportunity to do so, I may request to speak at the hearing and properly comment on it. Thank you for your consideration. Very truly yours, Timothy J. Stripe Co President, Grand Pacific Resorts "39CX) PAS IF.IIR COURT. Sum2OO * CARLSBAD. CA92OO8 * TfcllH lONfc 76O-43I-£'>OO *'FACSIMU: 76O43M58O » www.grandpacificresorts.com 04/15/2008 16:21 FAX • @|001/001 . . f AGENDA ITEM*. C>H of man « Planning & Engineering ' City AttorneyPlanning Civil Engineering Fiscal Services Coastal •'•;' CityClerk April 15, 2008 Mayor and City Council Members Re: AB #19,402 - 2008 TRAFFIC IMPACT FEE PROGRAM UPDATE I apologize for the lateness of this letter. However, I was just made aware of this Agenda Bill. On behalf of our clients, I request that you continue this item for two weeks. I would like the opportunity to review the staff presentation and study the documents associated with the proposed action. A 300-400+% increase in Traffic Impact Fees will have significant impacts to many of our clients. Some of them have submitted their building permits and have already secured financing for their projects. Because of the time necessary to complete all city processes, there may not be time to secure those permits without being impacted by this proposed fee increase. The potential of an increase of tens or even hundreds of thousands of dollars, in these difficult economic times, can jeopardize the success of their projects. I have been requested to review and educate our clients on the impacts to the development community of this action. Without that knowledge, they do not have the opportunity to adequately give their testimony to you on this matter. Respectfully, Bob Wojcik 3152 Uonsheod Avenue • Carlsbad • CA 92010 - (760) 69?-4100 • Fax: (760)692-4105 .(04/15/2008) Marshall Plantz - TIP Info.Pagel From: To: Date: Subject: Attachments: Marshall Plantz Kimberly Dillinger; Lisa Hildabrand 04/15/2008 2:54 PM TIP Info. Document_4.pdf All Receive For the Information of the: CITY COUNCIL Asst. CM CA Date^(fCCitv Manager Per our discussion and for distribution to the Council attached is a brief statement and a slide that I used during my conversation with Councilman Hall to explain the comparison between the existing TIP and the proposed TIP as approved last week. The change in the fee basis for Residential would go from $115/ADT to $353/ADT a 207% Increase. The change in the fee basis for Commercial/Industrial would go from $46/ADT to $142/ADT which is 208% increase. The difference of 1% is due to rounding to the fee basis to the nearest dollar. The percentage increase in revenue is influenced by the value of the new fee basis, the unit of development, the trip generation rates and the TIP Credit mechanism which is given to development within CFD #1. As a result of these factors the revenue from all three categories of development will increase by 290%+/-. The attahced slide compares the existing program to the future program whereas the slide displayed at last weeks Council meeting compared Option 1 vs Option 2. It was the comparision between Option #1 which included an adjustment only for Residential and Option #2 which included an adjustment of Residential, Commercial and Industrial development that created the appearance of a lack of equity in the fee increase between these two options. In summary when comparing the existing program to Option 2 which was the recommended and approved/future TIP program each type of development will experience the same percentage increase in the fee basis and actual fees payments. Co cu o O Ct I f.;; V" •_"s, <?". <r~. <CNrti*•.2 •o O O)c "55 'x LU QLLO_c 4t Q• *LLo c "oz T— Qu_ O T— QLL O -I— »o f~ -fn /fl ,fCOO(1)LL'E3L_Q)Q_ .t; L_ <D Q_ CO<D 'E 0) Q_ "E CD 0. COcoCOCfLLLCOoco co" CO0) LL CO Oco10 co" co CO0) LLCO o 10 </» CO LLCO 010 » _ CO '••-• o>T3 'co0)o: ,-CMtoO00^oo 10" '1to o0o CO ui CO to oo oo CM «> to 00o o Zr "CB imerciioO COIOtoo0o^COoo to 0 0o COco £ iq T~ to ooo_ o CMV* to 0o 00 COco "co 'l_•+- •COu T3 — CMeo q ^ 0) c 0) 0> CH (U ^— » u_ ^rT— ^. ^ CO•oc ^LL O)C "co'x LU CDs ^CM CM CO•oc 13 LL 1 CONSULTA CITY OF CARLSBAD,. CITY CLERK'S OFFICE April 21,2008 J.N. 001025 AGENDA ITEM*. Mayor"c: City Council City Manager City Attorney City ClerkMayor Lewis and City Council Members City of Carlsbad . 1200 Carlsbad Village Drive Carlsbad, CA 92008 RE: Agenda Item #8/Traffic Impact Fees Dear Mayor Lewis and Council Members: On behalf of the La Costa Town Square builders I am appealing to you to reconsider your recent decision to impose increased traffic impact fees. The La Costa Town Square project has been in the process of designing and obtaining the City's approvals for seven (7) years and expect to have a hearing on this later this fall. The project's initial financial analysis and loan analyses certainly accounted for increased fees over time but did not contemplate an increase of over three million dollars ($3,000,000) in just traffic impact fees alone. I respectfully request that the council reconsider an exception for projects which have already been in the entitlement pipeline for a long time or at least approve only that portion of the fee which is required to meet the RTICP section of the Transnet Extension Ordinance and allow the commercial development aspect to be studied further. Thank you for your consideration. Thanks again. Very truly yours, O'DAY CONSULTANTS, INC. rfckN. O'Day President PNO/pm O'Day Consultants Inc. 2710 Loker Avenue West, Suite 100 Carlsbad, California 92010-6609 E-mail: oday@odayconsultants.com Website: www.odayconsultants.com Tel: 760.931.7700 Fax: 760.931.8680 Traffic Impact Fee UpdateTraffic Impact Fee Update``Projects in the TIF Program are needed to Projects in the TIF Program are needed to ensure an acceptable Level of Service in ensure an acceptable Level of Service in conjunction with the Growth Management conjunction with the Growth Management Standards and development of the City. Standards and development of the City. ``Without funding via the TIF Program Without funding via the TIF Program additional funding from other sources would additional funding from other sources would need to be programmed or the LOS would need to be programmed or the LOS would decrease below acceptable levels of service.decrease below acceptable levels of service. New Roadway SegmentsNew Roadway Segments``Types of Roadway SegmentsTypes of Roadway Segments„„Along/Across property that does not Along/Across property that does not have future development potential.have future development potential.``RoadsRoads„„Cannon Road Cannon Road ––College to easterly College to easterly city limits.city limits.„„Carlsbad Blvd Carlsbad Blvd ––Mountain View Dr. to Mountain View Dr. to the northerly City Limits.the northerly City Limits.„„Palomar Airport Road Palomar Airport Road ––Avenida Avenida Encinas to Carlsbad Blvd.Encinas to Carlsbad Blvd.``Value/CostValue/Cost„„Included at 20% of estimated costs.Included at 20% of estimated costs.„„Prorated share of ADT from future Prorated share of ADT from future development vs. build out ADT.development vs. build out ADT. ““GrandfatheringGrandfathering””``Revise the Ordinance to exclude some Revise the Ordinance to exclude some commercial and industrial projects from the commercial and industrial projects from the effects of the TIF update. effects of the TIF update. „„Possible CriteriaPossible Criteria„„Projects that have a Building Permit application on file Projects that have a Building Permit application on file prior to the introduction of the Ordinance.prior to the introduction of the Ordinance.„„Projects that obtain a Building Permit within a Projects that obtain a Building Permit within a reasonable timeframe.reasonable timeframe.„„Financial ImpactFinancial Impact„„Commercial and Industrial Projects with a Building Commercial and Industrial Projects with a Building Permit application on file.Permit application on file.„„Fee differential is $1,600,000Fee differential is $1,600,000 TIF Comparison TIF Comparison CityCitySingle Family Single Family ResidentialResidentialNeighborhood Comm. Neighborhood Comm. (100,000ksf/10AC)(100,000ksf/10AC)Industrial Park Industrial Park (50ksf)(50ksf)CarlsbadCarlsbad$3,130 $3,130 --$3,530$3,530$1,512,000$1,512,000$50,400$50,400Chula VistaChula Vista$3,243$3,243$1,459,350$1,459,350$129,590$129,590EncinitasEncinitas$2,225 $2,225 --$2,670$2,670$1,602,000$1,602,000$106,800$106,800EscondidoEscondido$2,850$2,850$504,000$504,000$16,800$16,800OceansideOceanside$2,707$2,707$3,248,400/$2,436,300$3,248,400/$2,436,300$108,280/$81,210$108,280/$81,210San MarcosSan Marcos$9,699$9,699$1,800,000$1,800,000$587,750$587,750VistaVista$2,991 $2,991 --$3,590$3,590$3,468,000$3,468,000$115,600$115,600 Calendar of eventsCalendar of events``Adopt Ordinance as Introduced on 4/8Adopt Ordinance as Introduced on 4/8„„Adoption on 4/22Adoption on 4/22„„Fee becomes effective 6/21Fee becomes effective 6/21``Revise, Introduce and Adopt a new OrdinanceRevise, Introduce and Adopt a new Ordinance„„14 days public notice 4/30 to 5/1314 days public notice 4/30 to 5/13„„Introduce new Ordinance on 5/13Introduce new Ordinance on 5/13„„Adopt new Ordinance on 5/20Adopt new Ordinance on 5/20„„Fee becomes effective 7/19Fee becomes effective 7/19 Calendar of eventsCalendar of events``Adopt Ordinance as Introduced on 4/8Adopt Ordinance as Introduced on 4/8„„Adoption on 4/22Adoption on 4/22„„Fee becomes effective 6/21Fee becomes effective 6/21``Introduce a separate ordinance with exemption provisionsIntroduce a separate ordinance with exemption provisions„„14 days public notice 4/30 to 5/1314 days public notice 4/30 to 5/13„„Introduce new ordinance with exemption provisions 5/13Introduce new ordinance with exemption provisions 5/13„„Adopt Ordinance 5/20Adopt Ordinance 5/20„„Ordinance becomes effective 6/19Ordinance becomes effective 6/19``Revise and Introduce a new Ordinance Revise and Introduce a new Ordinance „„14 days public notice 4/30 to 5/1314 days public notice 4/30 to 5/13„„Introduce new Ordinance on 5/13Introduce new Ordinance on 5/13„„Adopt new Ordinance on 5/20Adopt new Ordinance on 5/20„„Fee becomes effective 7/19Fee becomes effective 7/19 TIF TIF ComparisonComparisonExistingAlternative A109% increaseAlternative B174% increaseNot in CFD #1In CFD #1 Not in CFD #1In CFD #1 Not in CFD #1In CFD #1Residential $1,150/SF $750/SF$2,400/SF $2,000/SF $3,150/SF $2,750/SFCommercial $46/ADT$1,840/1000sf$30/ADT$1,200/1000sf$96/ADT$3,840/1000sf$80/ADT$3,200/1000sf$126/ADT$5,040/1000sf$110/ADT$4,400/1000sfIndustrial $46/ADT$368/1000 sf$30/ADT$240/1000 sf$96/ADT$768/1000 sf$80/ADT$640/1000 sf$126/ADT$1,008/1000 sf$110/ADT$880/1000 sf TIF TIF ComparisonComparisonOptionAmount generated at build outShortfall from full fundingExisting$23.6$31.01$27.7$26.92$54.6$0.0A$34.1$20.5B$47.7$6.9