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HomeMy WebLinkAboutOrdinance 2171 N.C.S. 12/15/20031 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 z8 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 R pqq~ q, Introduced by Council Member Canevaro ORDINANCE NO. 2171 N.C.S. Seconded by Council Member Torliatt IMPLEMENTING A COMMERCIAL LINKAGE FEE FOR NONRESIDENTIAL DEVELOPMENT LN THE CITY OF PETALUMA WHEREAS, the City of Petaluma along with all other cities in Sonoma County and the County of Sonoma participated in the creation of a study to establish a link between the continued growth of employment and the need for affordable housing; and, WHEREAS, the City Council has reviewed and considered the findings and conclusions of the Sonoma County Workforce Housing Linkage Fee Study on which this ordinance is based; and, WHEREAS, the City Council held a duly noticed public hearing on said fee on October 27, 2003 and December 1, 2003. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF PETALUMA AS FOLLOWS: Section 1. The Petaluma Municipal Code is hereby amended to add Chapter 17.35 "Commercial Linkage Fee" to read as follows: Chapter 17.35 17.35.010 PURPOSE. Commercial Linkage Fee a. Mitigation of Affordable Housing Impacts Linked to Nonresidential Development. The purpose of this chapter is to (1) implement the goals and objectives of the General Plan Housing Element of the City of Petaluma; (2) mitigate the housing impacts caused by new, changed and expanded nonresidential development in the City of Petaluma; (3) provide housing affordable to persons who earn between 80-100% of the area median income. The City Council has determined that affordable housing requirements are needed, has found the following requirements to be consistent with its General Plan and, pursuant to Government Code Section 65913.2, has considered the effects of the fee with respect to the City's housing needs as established in the City's Housing Element, as amended from time to time pursuant to state law. Ordinance No. 2171 N.C.S. Page 1 1 2 3 4 5 6 7 8 9 to 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 2s 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 17.35.020 FINDINGS. a. Need for Affordable Housing. The City Council has found that persons of low- and moderate-income are experiencing increasing difficulty in locating and maintaining adequate, safe and sanitary affordable housing. b. Housing Needs and Impacts Created by Nonresidential Development. Pursuant to the Sonoma County Workforce Housing Linkage Fee Study published by Economic and Planning Systems Inc. in December 2001, the City Council finds that the construction or expansion of nonresidential development is a major factor in attracting new employees to the City of Petaluma and the County of Sonoma. A substantial number of these new employees and their families seek residence in the City and County and place a greater strain on an already impacted housing stock. Current and new employees who are unable to find affordable housing in the jurisdictions in which they work are forced to commute long distances. This situation adversely affects their quality of life, consumes limited energy resources, increases traffic congestion and has a negative impact on air quality. Employers have or will have problems attracting a labor force because of the shortage of housing affordable to many workers. c. Means of Meeting Affordable Housing Demand. Increasing the production and availability of affordable housing is problematic. Prices and rents for affordable housing remain below the level needed to attract new construction. At the same time, escalating land costs and rapidly diminishing amounts of land available for development hinder the provision of affordable housing units solely through private action. Federal and State housing finances and subsidy programs are .not sufficient by themselves to satisfy the affordable housing needs associated with employment resulting from nonresidential development. Programs and activities to expand affordable housing opportunities can be accomplished through public/private partnership action. It is the purpose of this chapter to establish a feasible means by which developers of nonresidential development projects assist in (1) increasing the supply of low- and moderate-income housing and (2) increasing the supply of housing in proximity to employment centers. d. Imposing Housing Requirement on Developers Whose Projects Create the Need. It is appropriate to impose some of the cost of the increased burden of providing housing for low- and moderate-income people necessitated by such development directly upon the sponsors of a development, and indirectly upon the occupiers. The imposition of a commercial linkage fee requirement is an appropriate means to accomplish the purpose of this chapter. In calculating the commercial linkage fee requirement, the City Council has taken into account other factors in addition to the simple calculation of contribution. These include impact on construction costs, special factors. and hardships associated with certain types of development, and legal issues. e. Rational Relationship Between Affordable Housing Need Created and Fee Requirement. The unit requirements and housing fees contained in this chapter are designed to create a rational relationship between the amount of housing need created by the land use and the size of the fee, taking into account the effect of such fee requirement on providing affordable housing opportunities and the economic Ordinance No. 2171 N.C.S. Page 2 1 2 3 4 s 6 7 8 9 10 11 12 13 14 is 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 37. 32 33 34 35 36 37 38 feasibility of imposing such requirements. 17.35.030 DEFINITIONS. As used in this section: Addition shall mean adding gross square feet to an existing development project or building subject to this ordinance. Affordable housing shall mean the total cost of monthly housing payments does not exceed thirty (30) percent of gross household income. Changed Nonresidential Development shall mean the transition of existing nonresidential space from one type of nonresidential use to another or a change from residential to nonresidential. City Manager shall mean the City Manager of the City of Petaluma or his/her designee. Development or development project for purposes of this Chapter shall mean any project resulting in new, expanded, remodeled, or changed nonresidential development. Director of Community Development shall mean the Director of Community Development for the City of Petaluma or his/her designee. Expanded Nonresidential Development shall mean construction that results in a net increase in the gross .square footage of an existing nonresidential space. Gross square feet or gross square footage shall mean the area included within the surrounding walls of a nonresidential development. This area does not include enclosed parking for vehicles. Low- and moderate-income shall mean a household with total annual income between 80-100 percent of the area median income, adjusted for family size, and in accordance with the Area Median Income Schedule as published annually by the U.S. Department of Housing and Urban Development for the Santa Rosa MSA. 39 Nexus Study shall mean the Sonoma County Workforce Housing Linkage Fee Study 4o published by Economic and Planning Systems, Inc. in December 2001 as may be 41 amended from time to time. 42 43 Remodeled Nonresidential Development shall mean all interior tenant or owner 44 improvements to existing nonresidential space. 45 46 17.35.040 APPLICATION OF FEE. 47 48 a. Determination of Development Projects. The fee requirement shall be applied to Ordinance No. 2171 N.C.S. Page 3 1 nonresidential development projects involving the construction of a new building, 2 construction of additional gross square footage to existing nonresidential buildings, 3 interior remodels of existing nonresidential buildings, or a change in nonresidential use 4 or a change from residential to nonresidential use in an existing building that increases s the number of employees. 6 7 g 9 to 11 12 13 14 15 16 17 b.. Determination of Land Uses. For the purposes of, this ordinance, nonresidential land uses shall be divided into three (3) classifications: commercial, retail, and industrial. Where necessary, the Director of Community Development shall determine the land use classification that best describes the nonresidential development, or portion thereof in the case of "Mixed Use" developments, for the purposes of assigning the fee to be charged. c. Application of Fee. The fee shall be applied as provided in Sections 17.35.040 (a) and (b) commencing on January 1, 2005 and shall automatically increase on January 1, 2006 and on January 1, 2007, as follows: Effective Date Commercial Fee Retail Fee Industrial Fee January 1, 2005 $0.69/square foot $l .l 9/square foot $0.71 /square foot January 1, 2006 $1.38/square foot $2.38/square foot $1.42/square foot January 1, 2007 $2.08/square foot $3.59/square foot $2.15/square foot 18 19 The fee shall be applied to all building or other applicable permits issued on or after the 20 applicable effective date. For any "changed nonresidential use" that does not require 21 a building or other applicable permit, the fee shall be applied at the time a new 22 business license is issued. 23 24 d. Application of Fee in Redevelopment Project Areas. Any nonresidential 25 development as provided in Sections 17.35.040 (a) and (b) located within the adopted 26 boundaries of a City of Petaluma Community Development Commission 27 redevelopment project area shall pay a fee equal to one-half the amount established 2s by the table in Section 17.35.040 (c) or, after January 1, 2007, as may be adjusted from 29 time to time. 30 31 17.35.050 FEE CREDIT OR REFUND. 32 33 a. Fee Credit. A developer of any project subject to the fee requirement may apply 34 to receive a credit against the total amount of fees due, or a portion thereof, if said 35 developer provides affordable housing through some other means agreeable to the 36 City of Petaluma. 37 3s b. Refund of Fee. If the affordable housing fee is paid and the building permit is later 39 canceled or voided, or the permit which triggers the application of the fee. fails to vest 4o within the terms of said permit, the Director of Community Development may, upon 41 written request of the developer, order return of the fee if (1) the fees paid have not 42 been committed, and (2) work on the private development project has not progressed 43 to a point that would permit commencement of a new, changed, or expanded use for Ordinance No. 2171 N.C.S. Page 4 i which a fee would be payable. 2 3 17.35.060 USE OF FEES. 4 s a. Use and Disbursement of Monies in the Fund: Monies collected pursuant to this 6 Chapter shall be used in accordance with and in support of activities to implement the ~ City's adopted Housing Element, Consolidated Plan, and Implementation Plan. 8 Activities shall be limited to direct expenditure for the development of affordable 9 housing as defined herein or incidental non-capital expenditures related to such >o projects, including but not limited to land acquisition, applicable pre-development t> costs, construction, rehabilitation, subsidization, counseling or assistance to other >2 governmental entities, private organizations or individuals to expand affordable housing 13 opportunities to low- and moderate-income households. Monies in the fund may be 14 disbursed, hypothecated, collateralized, or otherwise employed for these purposes 15 from time to time as the City Council so determines is appropriate to accomplish the 16 purposes of the affordable housing fund. These uses include, but are not limited to, i~ assistance to housing development corporations, equity participation loans, grants, 18 predevelopment loan funds, participation .leases, loans to develop affordable housing 19 or other public/private partnership arrangements. The affordable housing funds may be 20 expended for the benefit of both rental and owner-occupied housing. 21 22 b. Accounting of Fees. All fees shall be deposited into a segregated account and all 23 expenditures of funds from the same shall be documented and available for public 24 inspection during regular business hours. 2s 26 17.35.070 EXEMPTIONS. 27 28 a. Public facilities, public and private schools, and churches are exempt from the 29 ,provisions of this section.. 30 3~1 17.35.080 FEE ESCALATORS. 32 33 a. After January 1, 2007, this fee shall be annually increased to reflect the 34 percentage increase in the cost of construction or public improvements as reported in. 3s the Engineering News Record-Construction Price Index for the San Francisco Bay Area. 36 37 b. This fee may be adjusted from time to time, based upon amendments or updates 38 to the Nexus Study, or based on any other data and analysis which the City Council 39 determines to be applicable to the continued establishment of this fee. 40 41 Section 2. All code provisions, ordinances, and parts of ordinances in conflict 42 with the provisions of this ordinance are repealed. The provisions of this ordinance, 43 insofar as they are substantially the same as existing code provisions relating to the 44 same subject matter shall be construed as restatements and continuations thereof and 45 not as new enactments. With respect, however, to violations, rights accrued, liabilities 46 accrued, or appeals taken, prior to the effective date of this ordinance, under any 47 chapter, ordinance, or part of an ordinance shall be deemed to remain in full force for 48 the purpose of sustaining any proper suit, action, or other proceedings, with respect to Ordinance No. 2171 N.C.S. Page 5 1 2 3 4 5 6 7 s 9 to 11 12 13 any such violation, right, liability or appeal. Section 3. The City Clerk is hereby directed to post/publish this ordinance for the period and in the manner required by the City Charter. Section 4. This ordinance shall take effect thirty (30) days after its passage. INTRODUCED and ordered posted/published this 1 S' day of December 2003. ADOPTED this 15'" day of December 2003 by the following vote: AYES: Canevaro, Mayor Glass, Harris, Healy, Vice Mayor O' Brien, Torliatt NOES: Moynihan 14 ABSENT: None 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 ATTEST: i G yle Pet rsen, City Clerk ~`~_ -- -- _ _~- avid Glass, M , or APPROVED AS TO FORM: Ric d R. Rudna sky, City Attorney Ordinance No. 2171 N.C.S. Page b