Cary, NC
Ordinance 01-012

Session: Zone-Based Transportation Impact Fees

April 16, 4:00 PM

Ricky Barker
Town of Cary, NC

Back to Zone-Based Impact Fees: A Case Study of Cary, NC

Ordinance 01-012

ADEQUATE PUBLIC FACILITIES FOR ROADS AND TRANSPORTATION
DEVELOPMENT FEES

Amend Appendix A Chapter 5 Part 15, Adequate Public Facilities Planning and Development for Roads and Chapter 16, Part 1 Transportation Development Fees as follows:

PART 15

ADEQUATE PUBLIC FACILITIES PLANNING AND DEVELOPMENT FOR ROADS

5.15.1 Purpose

(a) The purpose of this Part is to insure that, to the maximum extent practical, new developments will be approved only when it can reasonably be expected that public facilities for roads will be available to accommodate such new developments. This adequate public facilities ordinance for roads (APFR) is only one part of the solution to address transportation issues. The focus of this Part is on addressing transportation impacts from new development. This Part should not be completely relied upon to address existing transportation system deficiencies. Other parts of this solution include a comprehensive multi-model transportation plan, a strong and well-funded Capital Improvement Program, a supportive transit system, mixed use projects, well designed development that limits impacts or enhances the transportation system and support of car pooling, flexible work schedules and other similar concepts.

(b) Relationship to Vested Rights. No portion of this ordinance shall be interpreted or deemed to affect any rights which have vested prior to the enactment hereof.:

Principle of Interpretation:

Overview: The following is a general overview of components of this Part. The specific requirements are located within the various sections in this Part and Chapter 16 Transportation Development Fees:

  1. All applicants for rezonings and development plans that meet the trip generation threshold are required to complete a traffic analysis and receive a Certificate of Adequate Public Facilities for Roads.
  2. All traffic impact analyses are completed by the town either through consultants or staff.
  3. The Study Area for the traffic analysis is based on the size of and/or the location of the project. Higher auto trip uses generate a larger study area. All controlled access roadways are not included in the analysis; however, the intersections of the ramps with roadways are included.
  4. Primarily, the level of service of intersections is used to evaluate transportation impacts within the study area.
  5. The Town has been divided into five (5) transportation development zones. The required level of service and standards for its measurement are established within each zone. Within each zone, the transportation development fees are established based on future transportation system improvements established by the Town’s Transportation Plan and Transportation Capital Improvement Programs. A town wide transportation development fee has also been established.
  6. As the result of the analysis, the applicant is required to make site related improvements that can be contributed to the proposed development (for example, turn lanes in and out of the site and other related improvement). Council must grant exceptions to this. Off-site improvements needed because the roadway/intersection is currently failing and/or the development does not contribute greater than seven percent of the traffic to the failure are to be completed by the town or jointly with the applicant.
  7. A Certificate of Adequate Public Facilities for Roads may be issued provided that guarantees are made on who will be responsible for the improvements required by the traffic analysis and when these improvements will be completed.
  8. Applicant may receive credits/reimbursements for their qualifying transportation system improvements.
  9. Certificates of Adequate Public Facilities for Roads are valid for two years with development plans, three years for rezonings and five years or longer for planned unit developments.

5.15.2 Requirements for Certificate of Adequate Public Facilities for Roads

(a) Applicability.

  1. New or Amended Projects: No subdivision plan, site plan, master land use plan for a planned unit development, or rezoning that meet requirements for a traffic analysis may be approved unless on the date of such approval there exists a valid and current Certificate of Adequate Public Facilities for Roads (CAPFR) applicable to the project for which such approval is sought. A CAPFR issued in connection with a rezoning or planned unit development approval shall constitute a CAPFR for any subdivision or site plan that is consistent with and encompassed within such rezoning or master plan approval so long as the CAPFR for the rezoning or master plan approval remains valid (see Section 5.15.6 Expiration of Certificates of Adequacy of Public Facilities for Roads ).
  2. Automatic Certification for Small and Low Density Developments. A determination as to the adequacy of public facilities need not be made with respect to roads if the nature of the proposed development is such that the number of estimated trips generated does not exceed the trip generation established in 5.15.4 Evaluation of Adequacy of Transportation: Traffic Impact Analysis.
  3. Previously Approved Projects and Projects Pending Approval. Previously Approved Projects and projects pending action by the Town shall follow the APFR requirements existing at the time they were approved or submitted. Applicants may choose to have their projects meet current APFR requirements. Except as otherwise provided herein, the provisions of this Part shall apply to applications for approval of subdivision plans, site plans, rezoning, and planned unit developments that were submitted for approval by the Town after (insert approval date).
  4. The provisions of this Part shall not apply to amendments to subdivision plans, site plans, or rezonings approved prior to the effective date of this Part so long as the approvals have not expired and the proposed amendment does not increase the demand generated by that development on any of the public facilities covered under this Part by more than five percent.
  5. Special exemptions for Planned Unit Developments that were granted under the interim ordinance by the Town Council prior to May 25, 2000 shall become invalid with the adoption of the permanent ordinance.

(b) Timing for Certificate. Generally, a certificate is obtained prior to approval of development plans, planned unit development, or rezoning. However, an applicant may obtain a CAPFR for a proposed development before an application for approval of a subdivision plan, site plan, rezoning, or planned unit development is submitted. The CAPFR, if issued, shall expire based on type of project it is based upon as provided in Section 5.15.6 Expiration of Certificates of Adequacy of Public Facilities for Roads.

(c) Transferring of Certificate. CAPFR's attach to the land in the same way that development permission attaches to the land. CAPFR's may be transferred along with other interests in the property with respect to which they are issued, but may not be severed or transferred separately.

(d) Prohibiting Phasing to Avoid Requirements: It is the Town’s intent to ensure that larger developments are not phased or subdivided in piecemeal fashion in order to qualify for automatic certification under this Part. Two or more developments, represented by their owners or developers to be separate developments, shall be aggregated and treated as a single development under this Part when they are determined to be part of a unified plan of development and are physically proximate to one other. The following factors will be considered to determine whether there is a unified plan of development:

1. There is unified ownership, indicated by the fact that
  1. the same person has retained or shared control of the developments;
  2. the same person has ownership or a significant legal or equitable interest in the developments; or
  3. there is common management of the developments controlling the form of physical development or disposition of parcels of the development.
2. There is a reasonable closeness in time between the completion of 80 percent or less of one development and the submission to the town of a master plan or series of plans or drawings for the other development which is indicative of a common development effort.
3. The voluntary sharing of infrastructure that is indicative of a common development effort or is designated specifically to accommodate the developments.
4. There is a common advertising scheme or promotional plan in effect for the developments.
5. Any information provided by the applicant that the project is not being phased or subdivided to avoid the need for a certificate.

5.15.3 Level of Service and Establishment of Transportation Zones

(a) Level of Service as a Measurement of Adequacy. Although other measurements may be considered, the primary measurement of adequate public facilities for roads is the level of service as defined by the most current edition of the Highway Capacity Manual. The required level of service and how it is measured is set forth for each zone under Section 5.15.3.(c) below. Level of service is measured at peak hours within the study area. Modifications to how level of service is measured is provided for in certain zones (see below). Should the existing level of service fail to meet the requirements of the peak hour level of service as defined within each zone, there cannot be an increase in average delay for the affected intersection (measured in its entirety). No increase in delay time will be allowed for signalized intersections with a level of service below the requirement within each zone.

(b) Measuring Non-signalized Intersections. Additional traffic generated from a proposed project may result in a non-signalized public road intersection within the study area to fall below the desired level of service. The primary solution for improving these intersections is to install a signal; however, it is not the intent of this Part to require signals to be automatically installed at all non-signalized intersections that fail (e.g. some intersections may have low volumes or located too close to existing signals). Staff may use additional analysis to determine if a signal is required (e.g. gap analysis). Installation of new signals shall only be required when the following conditions exist:

  1. The intersection meets required warrants for a signal; and
  2. The signal does not cause an undesirable delay in the surrounding road system.

(c) Establishments of Transportation Zones. Five (5) Transportation Zones have been established for the purpose of evaluating transportation impacts and assessment of transportation development fees. (See Section 16.1.6 Transportation Zones). The official map of Transportation Zones is on display and is available in the Engineering Department

  1. Central. This zone encompasses all land 400 feet or more away from the innermost right-of-way boundary of Maynard Loop. This includes all the downtown area. This zone’s primary focus is to encourage redevelopment and infill. The Level of Service standard is “F” with a traffic analysis based upon a 90-minute average peak and a roadway volume to capacity ratio not to exceed 1.25.
  2. North. This zone contains the northern employment centers (SAS and Weston). This zone’s primary focus is new employment. The Level of Service standard is “D” with a traffic analysis based upon a 90-minute average peak; however, the Level of Service standard for the following intersections with North Harrison Avenue will be “F” with a volume to capacity ratio of 1.5: Weston Parkway, Harrison Oaks Boulevard, SAS Campus Drive, I-40 interchange ramps, the signalized intersection of Harrison Park Shopping Center, and Richard Drive.
  3. Northwest. This zone contains a targeted multi-use growth area. This zone’s primary focus is the creation of new jobs and housing that reduces the travel distance from work to home. The Level of Service standard is “D” with a traffic analysis based upon a 90-minute average peak.
  4. Southeast. This zone contains a regional retail activity centers. This zone’s primary focus is on minimizing the amount of development until major transportation improvements have been made. The Level of Service standard is “D” with a traffic analysis based upon the standard Institute of Transportation Engineer’s (ITE) average peak hour.
  5. Base Benefit Zone. This zone contain the remainder of the area not within the other four zones provides transportation system benefits to them. The Level of Service standard is “D” with a traffic analysis based upon the standard ITE average peak hour.

 

5.15.4. Evaluation of Adequacy of Transportation: Traffic Impact Analysis

(a) Overview. The adequacy of service levels for roads and intersections that serve or are affected by a proposed project shall be determined in accordance with the provisions of this section as well as the remaining provisions of this Part.

(b) Threshold for Traffic Analysis. A determination as to the adequacy of public facilities (traffic impact analysis) is required if the nature of the proposed development is such that the number of trips it can be expected to generate equals to or exceed (1) 100 peak hour trips or (2) 1,000 total trips within a twenty-four hour period. Daily trips are those occurring on peak days on the adjacent roadway (e.g. daily trips on a Sunday may not be applicable). Trip generation shall be measured based on the current edition of the ITE Trip Generation Manual. The following shall also be used in determining if and/or when a study is required:

  1. Redevelopment. For the purpose of redevelopment, trip generation will be defined as the net new trips generated by the proposed use over the trips generated by any previous use of the site.
  2. Downzoning. Whenever a property is being rezoned to a less intensive trip generation zoning district, a traffic study is not required at the time of the rezoning application. A traffic study may be required with the development plan application if it meets the thresholds above.
  3. Special Events. It is not the intent of this Part to require a traffic analysis for a use that generates trips that meet or exceed the threshold but do not occur during the adjacent roadway system’s peak hour. For example, facilities designed for sporting events, concerts or other similar uses may not require a traffic analysis because the events occurs during a non-peak hour or non-peak day. If a traffic study is required for a use, then the analysis shall be based upon the normal trip generation for the proposed use and not that associated with special event(s).

(c) Preparing the Study. The town shall prepare or have prepared (using town staff or a retained consultant) a written Traffic Impact Analysis (TIA) for every development for which an application for a CAPFR is submitted. The purpose of the TIA is to analyze and document for the benefit of the relevant town boards and staff, as well as the property owner and developer, whether and under what circumstances a CAPFR can be issued, insofar as the public road system is concerned, for the proposed development.

(d) Study Area Boundaries. The extent of the study area for the TIA depends upon the location and size of the proposed project and the prevailing conditions of the surrounding area. The study area is defined in the following table. Controlled access roadways are not included in the study area or analysis; the controlled access ramp intersections with non-controlled access roadways are subject to analysis.

Trip Generation Study Area
100-150 peak hour trips or 1,000-1,500 daily trips _ mile plus any intersection on which at least 7% of any traffic movement approach volume is generated by the proposed project.
More than 150 peak hour trips or 1,500 daily trips 1 mile plus any intersection on which at least 7% of any traffic movement approach volume is generated by the proposed project
More than 100 peak hour trips or 1,000 daily trips within the Central Transportation Zone 1/4 mile plus any intersections on which at least 7% of any traffic movement approach volume are generated by or as a result of the proposed project.

(e) Intersections/roadways outside of the town’s planning area. These intersections/roadways as defined by the Land Use Plan shall be studied if they fall within the defined study area boundary. Any improvements to these intersections/roadways recommended by the study shall not be required to obtain a Certificate of Adequate Public Facilities for Roads. However, Council may consider this information in determining whether the associated development plan or rezoning meets the criteria and standards for approval.

(f) Trip Generation Standards. Trip generation data for each project shall be based upon the Institute of Traffic Engineers' Trip Generation Manual, supplemented by any other data deemed reliable by the Town. The following other standards also apply to projects:

  1. Credit for Mixed Use, Pass-by Trips. The determination of the number of trips generated shall also take into account pass-by trips, internal trip capture for integrated mixed-use projects (e.g. roadway and/or pedestrian connectivity) and any proposed transportation demand management system, provided that adequate guarantees can be provided to the Town to ensure that such demand management system will function as claimed for the life of the project. In addition, if the proposed development is designed and integrated with an adjacent mixed-use project (e.g. roadways), then a credit for trips may be permitted.
  2. Estimated Trips for Rezonings/PUDs. In evaluating the impact of a proposed rezoning or planned unit development where the specific uses or exact number of dwelling units have not been specified, estimates shall be based upon the highest level of density or intensity of use that would be authorized by the requested approvals.

(g) Submission Requirements: At the time of the initial submission, the applicant is required to submit the following information:

  1. Traffic Analysis Base Information, Site location map, Site layout, if applicable;
    Data on the existing/proposed land use
    Projected timing of construction and build-out year
    Description of the project
  2. Additional Information: Since most applications for a CAPFR will be submitted in conjunction with a request for approval of a subdivision plan, site plan, rezoning, or planned unit development, the staff will generally have all the information necessary from the applicant to make a determination as to whether the CAPFR can be issued. However, if an application for a CAPFR is submitted prior to an application for a development plan, rezoning and/or PUD, or if the staff otherwise has a reasonable need for additional information, such information shall be furnished by the applicant upon request.
  3. Study Fee: After preliminary review of the data submitted under item (1) above, the town shall prepare an estimate of consulting fees for the analysis of traffic impact for the project. Upon receipt of payment of fees from the applicant in the amount of the projected cost estimate, the town shall release the work to a consultant for analysis. After completion of the analysis, the town shall evaluate the actual costs incurred for the study and will reimburse to the applicant any remaining balance of the fee paid less an administrative fee of 10% of the total actual costs incurred.

(h) Required Factors to Include in Study. In each case, the issue as to whether adequate service levels will be maintained will be resolved by evaluating the projected impact of the proposed development on the public facilities in question at the time occupancy is expected to occur. This analysis will take into account, not only the status of existing facilities and the impact of the proposed development, but also the projected impact of the following on the capacity of those facilities.

  1. Projected capital improvements that will increase the capacity of the facilities in question. If the completion of such improvements is necessary for a CAPFR to be issued for a particular project, then there must be a reasonable expectation that such improvements will be completed in time to be of benefit to such project. A "reasonable expectation" of a proposed completion date requires, at the very least, that construction of the improvements has received all necessary governmental approvals and that funding is in place, or that such approvals and funding appear reasonably certain.
  2. All single-family residential building lots that have received final plat approval but that do not contain a completed dwelling.
  3. All single-family residential building lots for which subdivision plan approval has been granted and all non-residential and multi-family residential developments for which a site plan has been approved, so long as such approvals have not expired.
  4. All rezonings and approvals of master land use plans for planned unit developments which have a valid CAPFR, if and to the extent that subdivision or site plan approvals for portions of such developments have been granted.
  5. All developments for which subdivision or site plan approval applications have been submitted but not yet granted, so long as CAPFR's for such projects have been issued and remain unexpired.
  6. Growth outside the town's planning jurisdiction that will likely impact the public facilities in question as reflected by appropriate increases in background traffic.

(i) Tracking of Required Factors. The staff shall develop a system of keeping track of the factors described in subsection (h) above in order to facilitate the determination in each case of whether a CAPFR can be issued.

(j) Final Results of Study. The analysis must set forth the required transportation system improvements needed to meet the requirements of this Part. The analysis shall also, to the extent practicable, identify the improvements to the road system within the study area that would allow the CAPFR to be issued. The required improvements based upon the issuance of the CAPFR are limited to those within the study area. No recommendation on improvements are required on those “7 % intersections” studied if the approach volume traffic from the proposed development is less than 1.0 of the total peak hour volume.

5.15.5 Issuance of Certificate for Adequate Public Facilities:

(a) The Engineering Director shall issue a CAPFR if he concludes that adequate service levels for roads as described in Section 5.15.3 (Level of Service and Establishment of Transportation Zones) will be maintained. For purposes of this section, service levels will be "maintained" by the proposed development if, at the time the CAPFR is sought, it reasonably appears that, considering the results of traffic analysis, service levels will not drop below the standards set forth in Section 15.5.3.

(b) Timing of Required Improvements. In concluding whether a CAPFR may be issued, the Town Manager shall ensure that the following is met:

  1. If the required improvements are to be made by the town or the North Carolina Department of Transportation, no certificate of occupancy will be issued for the project until final plans or 90 % plans as defined by NCDOT for the projects have been approved unless otherwise approved by Council.
  2. If the improvements are to be constructed by the developer, no certificate of occupancy will be issued for the project until the improvements have been completed. If there is a reasonable expectation for completion, required improvements may occur after certificate of occupancy if plans have received approval by the town and the improvements have been secured by a bond or other method meeting the town requirements.
  3. Notwithstanding the above, if a portion of a development project can be accommodated at the specified level of service for the zone prior to the need for the improvement based upon the traffic analysis, certificates of occupancy may be issued for that portion of the development project prior to the requirements set forth in (a) and (b) above.

(c) Alternatives for Addressing Required Improvements: If the TIA concludes that a CAPFR cannot be issued in accordance with the provisions of this Part because of inadequate road facilities within the study area, then the developer may then choose to: (i) delay the development until the necessary improvements are constructed by the town or the State, (ii) construct the necessary improvements himself, (iii) enter into an agreement with the town to participate financially in the cost of the improvements in order to accelerate their construction, (iv) scale the project down so that it meets the standards of this Part or is entitled to an automatic certification under the provisions of Section 5.15.2 Requirements for Certificate of Adequate Public Facilities for Roads. If the agreement alternative is chosen, the applicant must secure the participation of the town in the required improvements prior to development plan approval.

5.15.6 Expiration of Certificates of Adequacy of Public Facilities for Roads

A CAPFR that has been obtained shall expire according to the following based on the related type of project:

Planned Unit Developments – 5 years or longer provided that the certificate is base upon the build-out plan submitted with the PUD and used with the traffic analysis. Council must approve certificates longer than 5 years.

Rezoning – 3 years

Development Plan – 2 years or upon the expiration of the development plan.

Council may extend the certificate beyond the timeframes above if it is determined that a new study will not identify any substantial changes in the required transportation improvements.

CHAPTER 16. TRANSPORTATION DEVELOPMENT FEES

16.1.1. Purpose.

The purpose of this Chapter is to establish a procedure to assist in the funding of road improvements required by new growth in the Town's jurisdiction. It is not the intent of this Chapter to require the developer to pay for all new road construction. The Town of Cary provides a fee schedule in this Chapter so that a procedure is in place for new development to pay a prorated share of road costs required to provide adequate road improvements to serve new construction before the new development is completed.

16.1.2. Authority.

This Chapter is adopted pursuant to the powers conferred by the General Assembly of North Carolina and set forth in House Bill 684 of the 1987 Session.

16.1.3. Findings.

  1. The Town is experiencing rapid population and employment growth, in part, because of its proximity to regional employment facilities such as the Research Triangle Park and Raleigh Durham International Airport.
  2. The anticipated population and employment growth in the Town creates demand for additional capital improvement funds for roadway facilities, which include but are not limited to, streets, intersection improvements, culverts and road-related drainage improvements, turn lanes, and signalization.
  3. The Town and the North Carolina Department of Transportation are responsible for and committed to the provision of such road-related improvements at a level of service necessary to support anticipated residential and employment growth.
  4. The Town has adopted and the North Carolina Department of Transportation has approved, the Town of Cary Official Map of Thoroughfare Plan, which identifies additional road capital improvements necessary to serve new construction. The Town has also developed the Cary Comprehensive Transportation Plan, which addresses long-term road improvement needs to the year 2015 and beyond.
  5. The General Assembly of North Carolina has authorized the Town to impose a transportation development fee on new construction.
  6. The transportation development fee herein established is directly proportional to the need for new road improvements generated by new construction and reasonably benefits the construction which pays the fee.

16.1.4. Applicability.

This Chapter shall apply to all new construction within the Town's planning jurisdiction, and shall apply within each transportation zone.

16.1.5. Condition of Approval.

No certificate of compliance under the North Carolina State Building Code shall be issued for new construction within the jurisdiction of this Ordinance unless and until the transportation development fee herein established has been paid in full. No building permit shall be issued for residential construction within the Town unless and until such fee has been paid in full.

16.1.6. Transportation Zones.

There shall be five transportation zones, which together encompass the entire planning jurisdiction of the town. The purposes of the transportation zones are to help ensure that adequate funding is available in different areas of the town's planning jurisdiction to pay for road improvements needed to maintain adequate levels of service appropriate to each area. The transportation fees paid by new development in each zone are partially based on the cost of improvements within that zone and are partially based on the cost of town-wide improvements. The total transportation impact fee paid represents two fees—a fee for the zone the property is located and a town wide fee. The transportation zones are defined in Section 5.15.3 Level of Service and Establishment of Transportation Zones.

16.1.7. Fees.

(a) Every person seeking a building permit, certificate of compliance, or business privilege license for construction for which a transportation development fee is due but has not been paid shall pay such transportation development fee prior to the issuance of the building permit, certificate of compliance, or business privilege license, as the case may be.
(b) The fee shall be computed by proposed building use and based on the construction plans submitted for approval, according to the schedule set forth in the annual Town of Cary operating budget, except for fees computed by an individual assessment in accordance with Section 16.1.8 (Individual Assessments) below.
(c) If the proposed new construction contains a mix of building uses, the development fee shall be calculated separately for each use according to the fee schedule.
(d) The fee shall be collected for additions and remodeling to existing structures for that portion of the structure which represents an increase above the number of dwelling units or the floor area of the building as it exists on the date of adoption of this Ordinance.
(e) The following shall be exempt from the terms of this Ordinance.

  1. Alteration or expansion of an existing building where no additional dwelling units are created, the use is not changed, and where no additional vehicle trips will be produced over and above that produced by the existing use.
  2. The construction of accessory buildings or structures that will not produce additional vehicle trips over and above that produced by the principal building or use of the land.
  3. The replacement of a destroyed or partially destroyed building or structure with a new building or structure of the same size and use, provided that no additional trips will be produced over and above that produced by the original use of the land.
  4. Private recreational facilities provided that such facilities are restricted for use by residents and their guests without charge and no additional vehicle trips will be produced over and above that produced by the principal residential use.

16.1.8. Individual Assessments.

(a) If any person believes that his or her proposed construction is unique in the traffic impacts which it will generate, such person may request that the Town perform an individual assessment of the traffic impacts of the proposed construction. Such person shall pay to the Town, in escrow, a sufficient fee to pay the cost of obtaining such assessment from a professional engineer selected and hired by the Town. The Town shall then obtain the services of the professional engineer to perform the assessment, paying the engineer from the escrow account and remitting the balance to the person requesting the assessment. The Town Council shall, at a public hearing, consider the request of the applicant to pay the fee based on the individual assessment. The Town shall assess the fee based on the individual assessment if the Town Council finds that:

  1. The proposed construction is in fact so unique that the application of the fee schedule adopted by the Town would result in the collection of a fee that is not proportionate to the traffic impact of the proposed construction;
  2. There is a difference between the fees computed under the fee schedule and the fees computed in accordance with the individual assessment of at least 5,000 dollars ($5,000.00) or five percent of the total fees computed under this Chapter, whichever amount is greater.

(b) The professional engineer to perform each individual assessment shall be selected by the Town Manager or his or her designee from a list of qualified engineers maintained by the Town. The list shall contain the names of at least three engineers or engineering firms, and shall be updated annually by a committee appointed by the Mayor and Town Council and including representatives of the Town and the development community. The Town Council reserves the right to dispute the assumptions, methodology, or conclusions of individual assessments. An individual assessment may take into consideration such factors as internal capture of trips in mixed-use projects and higher rates of passby trips than indicated by ITE if supported by reliable local data.
(c) Fees computed under this Section shall be computed in dollars per dwelling unit (for residential uses) or dollars per 1,000 square feet of non-residential floor area (for non-residential uses), using the following formula:

TOTAL FEE

=

ZONE FEE + TOWN FEE

ZONE FEE

=

PK HR VMT  x ZONE NET COST/VMT x ZONE%

TOWN FEE

=

PK HR VMT  x TOWN NET COST/VMT x TOWN%

Where:

PK HR VMT

=

PK HR TRIPS  x  % NEW  x  LENGTH

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 major road system, expressed in miles per trip end

ZONE NET COST/VMT

=

ZONE COST/VMT - ZONE CREDIT/VMT

TOWN NET COST/VMT

=

TOWN COST/VMT - TOWN CREDIT/VMT

ZONE COST/VMT

=

ZONE COST ÷ ZONE VMT

TOWN COST/VMT

=

TOWN COST ÷ TOWN VMT

ZONE COST

=

Portion of the cost of improvements needed in the zone over the planning horizon that is attributable to new development within the zone

TOWN COST

=

Portion of the cost of improvements over the planning horizon that is attributable to new development in the Town’s jurisdiction but outside the zone in which the improvement is located

ZONE VMT

=

New peak hour vehicle-miles of travel generated by anticipated development in the zone over the planning horizon

TOWN VMT

=

Total new peak hour vehicle-miles of travel generated by anticipated development in the Town’s jurisdiction over the planning horizon

ZONE CREDIT/VMT

=

TOTAL CREDIT/VMT - TOWN CREDIT/VMT

TOWN CREDIT/VMT

=

TOTAL CREDIT/VMT x %CREDIT

TOTAL CREDIT/VMT

=

Net present value of future revenue per peak hour VMT that will go toward remedying existing deficiencies, providing capacity for pass-through traffic and repaying old debt

%CREDIT

=

Average of TOTAL CREDIT/VMT ÷ (ZONE COST/VMT + TOWN COST/VMT) for all zones

ZONE%

=

Percent of the full net cost at which the zonal fees are assessed based on policy decision of the Town Council, may range from 0% to 100% and may vary by transportation zone

TOWN%

=

Percent of the full net cost at which the town-wide fees are assessed based on policy decision of the Town Council, may range from 0% to 100%

16.1.9. Collection of Fees.

(a) The transportation development fee for proposed new residential construction shall be computed in conjunction with the application for a building permit, and shall be collected prior to or simultaneously with the issuance of the building permit, unless otherwise provided herein.

(b) The transportation development fee for proposed new office, commercial, or industrial construction that is not speculative construction shall be computed in conjunction with the application for a building permit and shall be collected prior to or simultaneously with the issuance of the building permit, unless otherwise provided herein.

(c) The transportation development fee for proposed new commercial or industrial construction that is speculative construction shall be computed in conjunction with the application for a building permit and shall be collected prior to or simultaneously with the issuance of the building permit for the first fit-up to be constructed within the shell.

(d) When any person applies for a business license for a use in a structure for which a building permit or a certificate of occupancy is not required, the transportation development fee shall be collected at the time the application for the business license is made.

16.1.10. Fund Accounting.

(a) The Town shall establish an account for each transportation zone into which the zonal portion of the development fees collected within the zone shall be credited. The town-wide portion of the fee shall be credited to a separate, town-wide account. Interest at the actual rate of return on invested funds of the Town shall be credited periodically, but not less often than quarterly, in accordance with the accounting policies of the Town.

(b) Interest earned on the account into which the development fees are deposited shall accrue to the account and shall be used for the purposes specified for such account.

(c) The Town shall maintain and keep financial records for each account showing the revenues to the account and the disbursements from the account, in accordance with normal Town accounting practices. The records of the account shall be open to public inspection in the same manner as other financial records of the Town.

16.1.11. Use of Funds.

(a) The revenues from the zonal portion of development fees collected within a transportation zone, and accrued interest on such revenues, shall be spent on qualifying road improvements located within the same zone.

(b) The revenues from the town-wide portion development fees, and accrued interest on such revenues, may be used to finance all or portions of qualifying road improvements located anywhere within the Town's planning jurisdiction.

(c) Qualifying road improvements include improvements to thoroughfares shown on the Thoroughfare Plan within the Cary Comprehensive Transportation Plan.

(d) Transportation development fees may be used to finance direct project costs of qualifying road improvements, including:

  1. Direct project-engineering costs;
  2. The acquisition cost of rights-of-way;
  3. The construction cost of improvements, including related pedestrian and drainage improvements;
  4. Signalization and intersection improvements; and
  5. The principal sum and interest and other financing costs on bonds, notes, or other obligations issued by or on behalf of the Town to finance qualified road improvements.

(e) Development fees collected pursuant to this Chapter shall not be used to pay for any of the following:

  1. Construction, acquisition, or expansion of public facilities other than road improvements;
  2. Repair, operation, or maintenance of existing or new road improvements.

(f) Up to 25 percent of all fees collected shall be reserved for cash reimbursement to developers for qualifying road improvements. The amount of such reimbursements shall not exceed the value of such improvements in excess of the amount of transportation development fees that would otherwise be payable for the proposed development, unless the substitution of cash reimbursements for development fee offsets is specifically approved by the Town Council. At the end of each fiscal year, the amount of collected fees eligible for cash reimbursements shall be calculated, and if the total amount of reimbursements owed exceeds the amount of eligible fees available, the fees shall be remitted to developers in proportion to the amount of cash reimbursements owed.

16.1.12. Refunds.

(a) Any transportation development fee or portion thereof collected pursuant to this Chapter which has not been expended within ten years from the last day of the fiscal year in which it was paid, shall be refunded to the record owner of the property for which the development fee was paid, upon written application by the record owner, with accrued interest at the rate of return on investments earned by the Town on such amount.

(b) The Town may charge a reasonable administrative fee, not to exceed five percent of the refund due, for verifying and computing the refund.

16.1.13. Updates and Revisions.

Following a public hearing, the Town shall recalculate the schedule of development fees in Table 16.1.7 as part of the annual budget process, at least once every three years. The Town may do so more frequently based upon growth in residential and non-residential construction, road improvements actually constructed, changing levels of service, inflation, revised cost estimates for road improvements, changes in the availability of other funding sources, and such other factors as may be relevant. Each time the schedule of development fees is recalculated, there shall be a public hearing prior to the adoption of the new fee schedule (This may be done through the normal budget public hearing). No increase to the fee schedule shall be made unless there is a written analysis made available to the public showing that the amended fees are based on reliable data and the formula set forth in Section 16.1.8(c).

16.1.14. Offsets.

The Town shall grant offsets to transportation development fees in accordance with this Section or Section 16.1.16 Developer Agreements. There shall be no other offsets to transportation development fees.

(a) Proposed Thoroughfare Improvements.

(1) The Town shall grant an offset for development:

(i) Which was approved prior to the adoption of this Ordinance; and
(ii) For which the approval and permits have not expired;
(iii) Which has not been fully completed, subject to the additional terms of this Section.
(2) Offsets will be discounted by the value of the amount which would have been added to any building permits within the development which were issued prior to the effective date of this Ordinance.

(3) Offset value calculations shall depend on the following factors:

(i) The value of the road right-of-way dedicated by the developer to the Town for a qualifying road improvement. The value of the road right-of-way to be used in this calculation shall be the actual sale value of the land, if the land has been sold within the last three years before dedication; if the land has not sold within the last three years before the dedication, the applicable value shall be determined by professional appraisal. The appraisal shall be performed in accordance with the Town's Standard Procedures.
(ii) The construction costs paid at the time of construction by the developer for qualifying road improvements. Offsets will not be paid for any road construction which exceeds the standards of the Town's Standard Specifications and Details Manual.
(4) If a developer of a development approved prior to the effective date of this Ordinance, and under construction on such effective date, was required to provide thoroughfare improvements but has not initiated construction of such improvements before the date of adoption, the developer may request that the Town approve a developer agreement, in accordance with Section 16.1.16 Developer Agreements, allowing payment of transportation development fees in lieu of construction of the required road improvements. If such a developer agreement is executed by the Town and the developer, then the developer shall pay to the Town, within six months after the effective date of this Ordinance, transportation development fees equal to the amount of fees that would have been due under this Ordinance if its effective date had coincided with the issuance of the first building permit for the developer's project.
(5) If a developer was required to provide thoroughfare improvements within a project which was approved prior to the adoption of this Ordinance, and offsets are issued, the developer shall only be required to make a fee payment in the amount by which the total fee assessed due to construction within the development exceeds the value of the offset. In no case shall the total sum of the offsets and the amount of the fees paid exceed the total of the fees which would otherwise be assessed under this Chapter as a result of the development.
(6) These offsets shall only be available if the Town Council has approved the construction of the improvements in advance, by approval of a preliminary subdivision plat, developer agreement, or site plan, specifically including such improvements.

(7) In order to obtain these offsets, the developer shall submit an estimate of costs to the Engineering Department within six months of the effective date of this Ordinance. The estimates shall be revised when final road construction costs are tabulated. Offsets provided for road construction projects meeting the requirements of Subsection (a)(1) above shall be valid as set forth in Section 16.1.15(c) below.

(b) Prior Improvements in the Same Land Development. If a developer has, as a result of the approval of a planned unit development, subdivision, or other land development, constructed prior to May 1, 1989, road improvements shown on the Thoroughfare Plan and meeting the other tests of this Section, the developer shall be given an offset for the previous improvements which may be applied against the development fee within such land development. The value of the offset shall be computed as follows:

(1) The total amount eligible for consideration shall be the costs determined by using the values described in Subsections (a)(2) and (a)(3) above;
(2) The potential offset amount of Subsection (b)(1) above shall be reduced by that proportion of the approved development which has actually been completed prior to the adoption of this Ordinance;
(3) This offset shall be allowed only if the person making the improvements or his or her direct successor in interest applies to the Town for such offset on or before November 1, 1989.

16.1.15. Certificate of Offset.

(a) Upon computation by the Town Manager, or his or her designee, of the offset allowed to a developer, the Town shall issue to the developer a numbered Certificate of Offset expressed in dollar value of the offset and designating the land development project for which such Certificate was approved.

(b) Upon request, a Certificate of Offset may be changed in denomination by the Town as long as the total offset for a designated parcel remains the same. Such Certificate of Offset shall be freely transferable between any subsequent owners of the designated land. Any attempt to transfer such a Certificate to any person who is not an owner, purchaser, or mortgagee of land within the designated land development project shall make such Certificate voidable at the option of the Town. Each Certificate shall be registered in the name of the owner of the land in the office of the Construction Management Department or the Finance Department. Each Certificate of Offset issued shall cost five dollars ($5.00).

(c) Any Certificate of Offset may be used by the registered owner of such Certificate as an offset against a transportation development fee imposed on construction of a building in the designated land development project. Certificates may not be used for payment of any other fees, taxes, or amounts due the Town, and shall not have any intrinsic value. The Town shall have no obligation to the holder of any Certificate who, for any reason, owes no development fees during the life of the Certificate and thus has no use for the Certificate.

(d) Each Certificate of Offset shall be valid from the date of issuance until ten years after its issuance or the last date of construction within the project, whichever occurs first, unless an extension is granted by the Town Council prior to the termination of the earlier of these periods.

(e) A Certificate of Offset shall be credited in dollars against the applicable development fees in effect on the date when such fees become due under this Chapter.

(f) Holders of active Certificates of Offset that are eligible for recalculation shall apply to the Town Manager or designee for recalculation within one year of [the effective date of this ordinance amendment]. The recalculated value of unused Certificates of Offset shall be the face value of the certificate times the ratio of the total value of the improvement or dedication made by the developer to the amount of offset originally provided. The amount eligible for offset will be determined under the revised offset provisions in effect after [the effective date of this ordinance]. The applicant requesting recalculation shall be responsible for providing the information needed to recalculate the offset.

16.1.16. Developer Agreements.

Where a development includes a qualifying road improvement, the Town and the developer, by mutual consent, may enter into an agreement regarding the terms of the participation of the developer in the construction or financing of such road. Such agreement may provide for cash reimbursements, offsets, or other appropriate compensation to the developer for his or her participation in the financing and/or construction of the road. The agreement shall be on a form approved by the Town Council, after review and recommendation by the Town Engineer, and shall identify:

(a) The estimated cost of the road improvement, based on the approved bidding process and using the lowest bid approved by the Town Engineer;
(b) A schedule for initiation and completion of the improvement;
(c) A requirement that the improvement be designed and completed to Town standards;
(d) Such other terms and conditions as deemed necessary by the Town Council.

16.1.17. Other Financing Methods.

The Town may finance road improvements through the issuance of bonds, through the formation of assessment districts, or through any other authorized mechanism, in such manner and subject to such limitations as may be provided by law, in addition to the use of transportation development fees. Except as otherwise provided herein, the collection of a transportation development fee shall be additional and supplemental to, and not in substitution of, any other tax, fee, charge, or assessment which is imposed on and due against the property under the authority granted by the State of North Carolina.

16.1.18. Fee as Supplemental Regulation.

The transportation development fee established by this Chapter is additional and supplemental to, and not in substitution of, any other requirements imposed by the Town on the development of land or the issuance of building permits or certificates of occupancy. Such fee is intended to be consistent with and to further the policies of the Town's comprehensive plan, capital improvements plan, other chapters of this Ordinance, and other policies, ordinances, and resolutions by which the Town seeks to ensure the provision of road facilities in conjunction with the development of land.

16.1.19. Reserved

16.1.20. Relief Procedures.

(a) The developer or owner of property for which a development fee is owed may appeal the assessment of a fee under this Chapter to the Town Council. After a hearing, of which the Town Council shall give public notice in accordance with Section 16.1.21 Hearings below, the Town Council shall take one of the following actions:

(1) If the Town Council finds that there has been an error by the Town in assessing the fee, then the Town Council shall correct the error;
(2) The Town Council may grant a variance or waiver from the requirements of this Chapter, but only upon finding that a strict application of such requirement would result in confiscation of the property, taken as a whole;
(3) Unless the Town Council makes one of the findings set forth in Subsection (1) or (2) above, the Town Council shall confirm the fee assessed.

(b) The Town Council may, upon recommendation of the Town Manager, waive the fee for a project of public interest, where the Town Council finds that such waiver is in the best interest of the Town.
(c) If the Town Council grants such a variance or waiver to the amount of the development fee due for new construction, it shall cause to be appropriated from other Town funds the amount of the reduction in the development fee to the benefit district account in which the property is located.

16.1.21. Hearings.

(a) All hearings relating to transportation development fees shall be governed by the procedure of this Section.
(b) The date of the hearing may be set by the Town Manager or his or her designee without prior action by Council.
(c) The hearing shall not take place without prior notice, given in the following manner:

(1) Notice shall be published at least ten days prior to the hearing date, in the same manner as legal notices are published for the Town;
(2) Notice shall be mailed at least ten days prior to the hearing date, by the Town Manager, to all persons listed on a mailing list containing the names of persons interested in transportation development fees. Such list shall be open to all persons who request that their name be placed on the list and who pay an annual fee of ten dollars ($10.00).

This ordinance shall become effective on July 1, 2001 and apply to all new applications for a traffic impact analysis received after this date.

Adopted: 6/14/01

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Copyright 2002 by author