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DIMOCAgenda2025January131.Road Impact Fees & Transportation Module 1.A.Capital Impacts Model Transportation Component and Road Impact Fees Continued discussion on options to develop a cash proffer calculation for road impacts and/or the implementation of a Road Impact Fee program in accordance with Virginia Code §15.2 Chapter 22 Article 9. Follow up information from the last meeting is attached (Impacts fees in other states, Commercial/Industrial Development Community Feedback, Slides from last meeting). 2.Other AGENDA DEVELOPMENT IMPACT MODEL OVERSIGHT COMMITTEE MONDAY, JANUARY 13, 2025 9:00 AM FIRST-FLOOR CONFERENCE ROOM 107 NORTH KENT STREET, WINCHESTER VA 22601 DIMOC01-13-25RoadImpactFees_Update.pdf DIMOC01-13-25CapitalImpactsModelUpdate_Part2.pdf 1 Development Impact Model Oversight Committee Agenda Item Detail Meeting Date: January 13, 2025 Agenda Section: Road Impact Fees & Transportation Module Title: Capital Impacts Model Transportation Component and Road Impact Fees Attachments: DIMOC01-13-25RoadImpactFees_Update.pdf DIMOC01-13-25CapitalImpactsModelUpdate_Part2.pdf 2 COUNTY of FREDERICK Department of Planning and Development 540/ 665-5651 Fax: 540/ 665-6395 107 North Kent Street, Suite 202 • Winchester, Virginia 22601-5000 MEMORANDUM TO: Development Impact Model Oversight Committee FROM: Wyatt Pearson, Director of Planning and Development RE: Capital Impacts Model Transportation Component and Road Impact Fees DATE: January 9th, 2025 Included below is the additional follow up information requested by the committee as it relates to Road Impact Fees and/or the inclusion of a transportation cash proffer calculation in the existing Capital Impact Model (CapIM). 1. Examples and existing impact fees in other states (see attached) a. North Carolina i. -General state legislative authority to charge Water and Wastewater System Development Fees (https://www.ncleg.net/EnactedLegislation/Statutes/PDF/ByArticle /Chapter_162A/Article_8.pdf i. -No such general authority exists for other impact fees (aka development fees in NC). However, a few jurisdictions are authorized to charge them, we believe grandfathered under old special authority: Cary and Raleigh that we know of. No new non- utility impact fee programs are being implemented at this time to our knowledge. a. Tennessee i. -Attached sample from our work with a recent client (prepared by TischlerBise). This is not exhaustive. i. -Note that school impact fees are allowed and have been adopted in several places (Williamson County, Rutherford County, Murfeesboro). a. Georgia i. -Attached sample from a client (prepared by the client). This is not exhaustive. a. Texas i. -Attached excerpt from a presentation from consultant in Texas (prepared by that consultant). This is not exhaustive 2. Opinion of Commercial/Industrial Development Community 3 a. Staff reached out to National Association for Industrial and Office Parks (NAIOP) and they suggested Peterson Companies participate. Clark Tutwiler may be attending on their behalf. a. Trex was contacted by a committee member for their opinion, and provided the following response, "Thank you for taking the time to present the results of the study by Tischler Bise to the Development Impact Model Oversite Committee (DIMOC) and the draft impact fee policy proposal under consideration. As a local manufacturer we appreciate the Frederick Co. Board of Supervisors for focusing on transportation infrastructure as a critical element to the region and Trex’s future ability to grow. At this time we are not taking a position on the proposed impact fee. We hope that in its deliberation, the Board will identify a solution to the infrastructure funding issue that meets the needs of the community while maintaining the county’s competitiveness for future business investment and growth." The Committee will discuss and consider a recommendation to the Board of Supervisors on this topic. 4 Single-Family Fire Police Parks Street OtherTotal (Non-Utility)Franklin $0 $0 $4,304 $4,911 $0$9,215Springfield (Proposed) $1,110 $760 $792 $5,250 $1,198 $9,110Nolensville $0 $0 $0 $5,928 $0$5,928Brentwood $0 $0 $0 $5,860 $0$5,860Smyrna $599 $0 $1,032 $2,239 $0$3,870La Vergne $208 $548 $639 $2,323 $0$3,718Spring Hill $0 $0 $0 $3,048 $0$3,048White House $186 $282 $396 $381 $0$1,245Portland $549 $240 $454 $0 $0$1,243Non-Residential Impact Fees Fire Police Parks Street Other Fire PoliceParks Street OtherTotal (Non-Utility)Non-Residential (Per 1,000 Sq. Ft.)Fire Police Parks Street OtherTotal (Non-Utility)Industrial (500,000 Sq. Ft. Development)FranklinFranklin$0 $0 $0 $3,060,000 $0 $0 $0 $0 $6,120 $0$3,060,000Industrial$0 $0 $0 $6,120 $0$6,120Brentwood$0 $0 $0 $1,297,000 $0 $0 $0 $0 $2,594 $0$1,297,000Commercial$0 $0 $0 $10,878 $0$10,878Smyrna$202,500 $0 $0 $1,067,500 $0 $405 $0 $0 $2,135 $0$1,270,000Office & Other Services$0 $0 $0 $7,802 $0$7,802Springfield (Proposed)$158,179 $103,214 $0 $474,500 $279,000 $316 $206 $0 $949 $558$1,014,893Institutional$0 $0 $0 $9,012 $0$9,012Spring Hill$0 $0 $0 $744,000 $0 $0 $0 $0 $1,488 $0$744,000 Springfield (Proposed)La Vergne$21,500 $57,000 $0 $515,500 $0 $43 $114 $0 $1,031 $0$594,000Industrial$316 $206 $0 $949 $558$2,030Nolensville$0 $0 $0 $504,000 $0 $0 $0 $0 $1,008 $0$504,000Commercial$2,293 $1,496 $0 $7,058 $1,023$11,870White House$59,500 $90,000 $0 $139,000 $0 $119 $180 $0 $278 $0$288,500Office & Other Services$1,018 $664 $0 $3,053 $1,568$6,303Portland$125,000 $36,500 $0 $0 $0 $250 $73 $0 $0 $0$161,500Institutional$667 $435 $0 $2,002 $1,376$4,481Commercial (100,000 Sq. Ft. Development)SmyrnaFranklin$0 $0 $0 $1,087,800 $0 $0 $0 $0 $10,878 $0$1,087,800Industrial$405 $0 $0 $2,135 $0$2,540Springfield (Proposed)$229,305 $149,624 $0 $705,800 $102,300 $2,293 $1,496 $0 $7,058 $1,023$1,187,029Commercial$1,346 $0 $0 $2,445 $0$3,791Brentwood$0 $0 $0 $914,700 $0 $0 $0 $0 $9,147 $0$914,700Office & Other Services$848 $0 $0 $3,478 $0$4,326Spring Hill$0 $0 $0 $524,100 $0 $0 $0 $0 $5,241 $0$524,100Institutional$317 $0 $0 $1,137 $0$1,454La Vergne$10,400 $27,300 $0 $362,800 $0 $104 $273 $0 $3,628 $0$400,500 La VergneSmyrna$134,600 $0 $0 $244,500 $0 $1,346 $0 $0 $2,445 $0$379,100Industrial$43 $114 $0 $1,031 $0$1,188White House$53,200 $80,600 $0 $155,000 $0 $532 $806 $0 $1,550 $0$288,800Commercial$104 $273 $0 $3,628 $0$4,005Nolensville$0 $0 $0 $266,800 $0 $0 $0 $0 $2,668 $0$266,800Office & Other Services$100 $264 $0 $2,737 $0$3,101Portland$36,700 $83,000 $0 $0 $0 $367 $830 $0 $0 $0$119,700Institutional$62 $162 $0 $2,119 $0$2,343Office & Other Services (100,000 Sq. Ft. Development)PortlandFranklin$0 $0 $0 $780,200 $0 $0 $0 $0 $7,802 $0$780,200Industrial$250 $73 $0 $0 $0$323Brentwood$0 $0 $0 $691,400 $0 $0 $0 $0 $6,914 $0$691,400Commercial$367 $830 $0 $0 $0$1,197Springfield (Proposed)$101,760 $66,400 $0 $305,300 $156,800 $1,018 $664 $0 $3,053 $1,568$630,261Office & Other Services$466 $647 $0 $0 $0$1,113Smyrna$84,800 $0 $0 $347,800 $0 $848 $0 $0 $3,478 $0$432,600Institutional$146 $385 $0 $0 $0$531Spring Hill$0 $0 $0 $396,800 $0 $0 $0 $0 $3,968 $0$396,800 White HouseLa Vergne$10,000 $26,400 $0 $273,700 $0 $100 $264 $0 $2,737 $0$310,100Industrial$119 $180 $0 $278 $0$577Nolensville$0 $0 $0 $290,500 $0 $0 $0 $0 $2,905 $0$290,500Commercial$532 $806 $0 $1,550 $0$2,888White House$24,700 $37,400 $0 $66,200 $0 $247 $374 $0 $662 $0$128,300Office & Other Services$247 $374 $0 $662 $0$1,283Portland$46,600 $64,700 $0 $0 $0 $466 $647 $0 $0 $0$111,300Institutional$247 $374 $0 $669 $0$1,290Institutional (100,000 Sq. Ft. Development)NolensvilleFranklin$0 $0 $0 $901,200 $0 $0 $0 $0 $9,012 $0$901,200Industrial$0 $0 $0 $1,008 $0$1,008Brentwood$0 $0 $0 $535,200 $0 $0 $0 $0 $5,352 $0$535,200Commercial$0 $0 $0 $2,668 $0$2,668Springfield (Proposed)$66,728 $43,541 $0 $200,200 $137,600 $667 $435 $0 $2,002 $1,376$448,069Office & Other Services$0 $0 $0 $2,905 $0$2,905Spring Hill$0 $0 $0 $307,000 $0 $0 $0 $0 $3,070 $0$307,000Institutional$0 $0 $0 $2,905 $0$2,905Nolensville$0 $0 $0 $290,500 $0 $0 $0 $0 $2,905 $0$290,500 BrentwoodLa Vergne$6,200 $16,200 $0 $211,900 $0 $62 $162 $0 $2,119 $0$234,300Industrial$0 $0 $0 $2,594 $0$2,594Smyrna$31,700 $0 $0 $113,700 $0 $317 $0 $0 $1,137 $0$145,400Commercial$0 $0 $0 $9,147 $0$9,147White House$24,700 $37,400 $0 $66,900 $0 $247 $374 $0 $669 $0$129,000Office & Other Services$0 $0 $0 $6,914 $0$6,914Portland$14,600 $38,500 $0 $0 $0 $146 $385 $0 $0 $0$53,100Institutional$0 $0 $0 $5,352 $0$5,352Spring HillIndustrial$0 $0 $0 $1,488 $0$1,488Data collected in 2022Commercial$0 $0 $0 $5,241 $0$5,241TischlerBise makes no warranties or guarantees regarding the above data. Office & Other Services$0 $0 $0 $3,968 $0$3,968Institutional$0 $0 $0 $3,070 $0$3,070Per 1000 sq ft5 Comparison of Impact Fees for Neighboring & Similar Sized Counties Forsyth Cherokee Dawson Gwinnett Hall Cobb Alpharetta Henry*Lumpkin 2024 Population 278,462 292,010 33,275 990,879 221,913 781,646 67,420 260,754 35,810 Growth 2020-2024 10.11%8.90%22.97%3.39%9.06%1.99%0.54%7.82%6.45% Authorized Yes Yes Yes No Yes No Yes Yes No Collected Yes Yes Yes n/a Yes n/a Yes Yes n/a Types Residential, Industrial & Commercial Residential, Industrial & Commercial Residential, Industrial & Commercial n/a Residential, Industrial & Commercial n/a Residential, Industrial & Commercial Residential, Industrial & Commercial n/a Single-Familiy $9,019.00 ($4,589 Cumming) $2,560.60 ($3,945.75 Canton) $2,567.21 n/a $1,241.93 ($4,044.84 Gainsville) n/a ($699 Kennesaw) $6,689.53 $3,544.46* ($2,420.92 Stockbridge) n/a Multi-Family $6,289.00 $2,508.20 $2,542.36 n/a $1,241.93 n/a $6,689.53 $3,544.46 n/a Mobile Home / RV Park $7,567.00 n/a n/a n/a n/a n/a n/a n/a n/a Retail / Commercial per square foot $16.99 $0.11 - $2.89 $0.16 - $1.42 n/a n/a n/a $0.10 - $6.62 See attached impact fee file n/a Office per square foot $7.54 $0.92 - $1.54 $0.29 - $0.60 n/a n/a n/a $0.73 - $2.00 $2.53 - $2.61 n/a Industrial / Warehouse per square foot $2.37 $0.06 - $0.65 $0.02 - $0.17 n/a n/a n/a $0.40 - $0.74 See attached impact fee file n/a Public/Instutional per square foot $10.269 $0.45 - $0.80 $0.10 - $0.18 n/a n/a n/a $0.08 - $0.60 See attached impact fee file n/a Data Source n/a n/a n/a n/a 6 Extracted from Freese and Nichols: City of Irving, Texas, Capital Improvements Advisory Committee, November 7, 2023. 7 Extracted from Freese and Nichols: City of Irving, Texas, Capital Improvements Advisory Committee, November 7, 2023. Commented [JH1]: Note scale of development being benchmarked/calculated. 8 Extracted from Freese and Nichols: City of Irving, Texas, Capital Improvements Advisory Committee, November 7, 2023. Commented [JH2]: Note scale of development being benchmarked/calculated. 9 Extracted from Freese and Nichols: City of Irving, Texas, Capital Improvements Advisory Committee, November 7, 2023. Commented [JH3]: Note scale of development being benchmarked/calculated. 10 Extracted from Freese and Nichols: City of Irving, Texas, Capital Improvements Advisory Committee, November 7, 2023. Commented [JH4]: Note scale of development being benchmarked/calculated. 11 Extracted from Freese and Nichols: City of Irving, Texas, Capital Improvements Advisory Committee, November 7, 2023. 12 Briefing to Development Impact Model Oversight Committee (DIMOC) Frederick County, Virginia August 22, 2024 Capital Impacts Model Update, Part 2: Transportation Impact Fees / Cash Proffers REVISED DRAFT Findings 13 2 DRAFTTransportation Overview Technical Approach •Demand Factor Calculations •Vehicle miles of travel •Components •Arterial and collector planned capacity improvement projects Implementation Discussion •Impact Fees vs. Cash Proffers 14 3 DRAFTLane Mile Inventory 15 4 DRAFTVehicle Trips and Vehicle Miles of Travel Estimated trip length is used to project Vehicle Miles of Travel for the Capital Impact or Impact Fee calculation. 16 5 DRAFTNonresidential Vehicle Trip Rates 17 6 DRAFTVehicle Trips and VMT Projection Example: Single Family VMT of 29.24 per Unit = 9.43 VTE x 50% x 5.3 miles x 117% Vehicle Miles of Travel (VMT) equals one vehicle (1 trip) traveling one mile. VMT = trips x miles 18 7 DRAFTRoad Plan: Short-Term/Funded Projects 19 8 DRAFTRoad Plan: Long-Term/Unfunded Projects 20 9 DRAFTRoad Methodology •Plan-based Methodology •Short- and long-term projects •County share of cost divided by projected VMTs in out year to derive a cost per VMT •Hypothetical Example: $27 million / 2 million VMT in 2033 = ~$14 per VMT •Resulting cost per VMT used in the calculation of impact fee (or capital impact) by type of land use 21 10 DRAFTPlan-Based Cost per VMT Total VMT as the demand factor. 22 11 DRAFTDraft Impact Fee by Land Use 23 12 DRAFT 12 DRAFTImplementation Considerations: Comparison 12 Cash Proffers •Voluntary •Negotiated •Re -Zonings •Residential (typically) •Calculated and collected based on impact, benefit, and proportionality Impact Fees •Mandatory •Scheduled •All new development (by-right) •Residential and Nonresidential •Calculated based on impact, benefit, and proportionality 24 13 DRAFTConsiderations: Impact Fee Requirements •Virginia Road Impact Fee Requirements (§15.2-2317-15.2327) •Establish Impact Fee Advisory Committee (can be existing body if it meets requirement of 40% of membership “representatives from the development, building, or real estate industries.” •Establish one or more service areas within the Comprehensive Plan.* •Adopt a road improvements plan as amendment to Comp Plan and as part of CIP.* •Hold public hearing on service area, road plan, and proposed impact fees.* •Adopt road improvements plan and impact fee by ordinance. •Ordinance to include impact fee schedule, provisions for credits and appeals, 2-year update requirement, expenditure requirements. •Funds to be kept in separate account and spent in timely manner: •Fee revenues to be committed to road projects within 7 years—or can be committed to the secondary construction program benefiting the service area. •Refunds required if construction not completed within 15 years. If fee paid is more than actual cost by 15%, locality recalculates the fees and refunds the difference. * Technical requirements are being addressed in this current Impact Fee/Capital Impacts study 25 14 DRAFTConsiderations: Revenue Potential •Assumptions •Road improvement costs are allocated to existing development and new growth therefore impact fees will not cover 100% of the costs. •Impact fee revenues are projected from residential and nonresidential development at the maximum amount over 20 years. •Cash proffer revenue potential assumes 20% of future residential growth is not yet approved and eligible to pay cash proffers. (In other words, ~80% of projected demand is already entitled [~12,200 units out of 15,350 units projected over the next 20 years].) Maximum cash proffer amount per residential unit is assumed. 26 15 DRAFT Questions / Discussion 27