006 of 2019 - An ordinance amending certain sections of 18.98 of the Salt Lake City Code relating to impact fees 0 19-1
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SALT LAKE CITY ORDINANCE
No. 6 of 2019
Impact fees amendments
(An ordinance amending certain sections of 18.98 of the Salt Lake City Code relating to impact
fees.)
WHEREAS, chapter 11-36a-602 and 11-36a-603, which govern refunds of impact fees,
was amended in the 2017 and 2018 Utah Legislative Sessions; and
WHEREAS, the City Council desires amend certain sections of City Code 18.98 to
comply with state law;
WHEREAS, the City Council also desires to amend certain sections of City Code 18.98
to clarify the code; and
WHEREAS, after a public hearing, the City Council the adoption of this ordinance
reasonably furthers the health, safety, and general welfare of the citizens of Salt Lake City.
NOW, THEREFORE, be it ordained by the City Council of Salt Lake City, Utah:
SECTION 1. Amending Salt Lake City Code section 18.98.010, Findings and Authority.
18.98.010: FINDINGS AND AUTHORITY:
The city council (the "council") finds and determines that growth and development activity in the
city will create additional demand and need for roadway facilities, publicly owned parks, open
space and recreational facilities and trails, and public safety facilities in the city, and the council
finds that persons responsible for growth and development activity should pay a proportionate
share of the cost of such planned facilities needed to serve the growth and development activity.
The council further finds that impact fees are necessary to achieve an equitable allocation to the
costs borne in the past and to be borne in the future, in comparison to the benefits already
received and yet to be received. Therefore, pursuant to Utah code title 11, chapter 36, the council
adopts this chapter to assess impact fees for planned facilities. The provisions of this chapter
shall be liberally construed in order to carry out the purposes of the council in establishing the
impact fee program.
SECTION 2. Amending Salt Lake City Code section 18.98.020, Definitions. Section
18.98.020 of the Salt Lake City Code shall be, and hereby is, amended to read as follows:
18.98.020: DEFINITIONS:
The following definitions shall apply for purposes of this chapter unless the context clearly
requires otherwise. Terms otherwise not defined herein shall be defined by their usual and
customary meanings.
ACCESSORY STRUCTURE: A subordinate building or structure, located on the same lot with
the main building, occupied by or devoted to an accessory use. When an accessory structure is
attached to the main building in a substantial manner, as by a wall or roof, such accessory
structure shall be considered part of the main building.
ACCESSORY USE: A use that:
A. Is subordinate in area, extent and purpose to, and serves a principal use;
B. Is customarily found as an incident to such principal use;
C. Contributes to the comfort, convenience or necessity of those occupying, working at or
being serviced by such principal use;
D. Is located on the same zoning lot as such principal use; and
E. Is under the same ownership or control as the principal use.
ACT: The Utah impact fees act, Utah code title 11, chapter 36a, as in existence on the effective
date hereof or as hereafter amended.
BUILDING PERMIT: An official document or certification which is issued by the building
official of the city and which authorizes the construction, alteration, enlargement, conversion,
reconstruction, remodeling, rehabilitation, erection, demolition, moving or repair of a building or
structure.
CHANGE IN USE: A change from commercial use to residential use.
CITY: Salt Lake City, Utah.
CITY ENGINEER: The duly appointed and acting city engineer for the city.
COUNCIL: The municipal council of the city.
DEPARTMENT: The department of community and neighborhoods of the city.
DEVELOPER: An individual, group of individuals, partnership, corporation, limited liability
company, association, municipal corporation, state agency, or other person undertaking
development activity, and their successors and assigns.
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DEVELOPMENT ACTIVITY: Any construction or expansion of a building, structure or use;
any change in use of a building or structure; the subdivision of land; the seeking of plat approval,
planned development approval, site plan approval, lot line adjustment, or conditional use permit
approval; or any other change in use of land that creates additional demand and need for public
streets and roads, publicly owned parks, open space recreational facilities and trails, or public
safety facilities.
DEVELOPMENT APPROVAL: Any written authorization from the city, other than a building
permit, which authorizes the commencement of a development activity, including, but not
limited to, plat approval, planned development approval, site plan approval, lot line adjustment,
and a conditional use permit.
DIRECTOR: The director of the department of community and neighborhoods of the city.
ENCUMBERED: To reserve, set aside, or otherwise earmark impact fees in order to pay for
commitments, contractual obligations, or other liabilities incurred for planned facilities.
FEE PAYER: A person, corporation, partnership, incorporated association, or any other similar
entity, or a department or bureau of any governmental entity or municipal corporation
commencing a development activity which creates the demand for planned facilities and which
requires the issuance of a building permit. "Fee payer" includes an applicant for an impact fee
credit.
FIRE IMPACT FEE: The impact fee designated to pay for fire public safety facilities.
HUD: The United States department of housing and urban development.
IMPACT FEE: A payment of money imposed by the city on development activity pursuant to
this chapter as a condition of granting a building permit in order to pay for the planned facilities
needed to serve new growth and development activity. "Impact fee" does not include a tax, a
special assessment, a hookup fee, a fee for project improvements, a reasonable permit or
application fee, the administrative fee for collecting and handling impact fees, the cost of
reviewing independent impact fee calculations, or the administrative fee required for an appeal.
IMPACT FEE ACCOUNT OR ACCOUNT: The account or accounts established for the planned
facilities for which impact fees are collected.
IMPACT FEE FACILITIES PLAN: The plan adopted by the City to determine the public
facilities required to serve development resulting from a new development activity, as required
under Utah Code 11-36a-301.
INDEPENDENT IMPACT FEE CALCULATION: The impact calculation or economic
documentation prepared by a fee payer to support the assessment of an impact fee other than the
fees established in the city's consolidated fee schedule.
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LOT LINE ADJUSTMENT: Shall have the same meaning as set forth in title 20, chapter 20.24
of this code.
NET POSITIVE FISCAL IMPACT: New revenue to the city in excess of the cost of the
necessary infrastructure and municipal services attributable to a development activity.
OWNER: The owner of record of real property, or a person with an unrestricted written option to
purchase property; provided, that if the real property is being purchased under a recorded real
estate contract, the purchaser shall be considered the owner of the real property.
PARK IMPACT FEES: The impact fee designated to pay for publicly owned parks, open space,
recreational facilities and trails.
PLANNED DEVELOPMENT OR PD: Has the same meaning as set forth in
section 21A.62.040 of this code.
PLANNED FACILITIES: Roadway facilities, publicly owned parks, open space and recreational
facilities and trails,public safety facilities included in the capital improvements plan of the city.
POLICE IMPACT FEE: The impact fee designated to pay for police public safety facilities.
PUBLIC SAFETY FACILITIES: A building constructed or leased to house police, fire, or other
public safety entities; or a fire suppression vehicle costing in excess of$500,000. Public safety
facility does not mean a jail,prison, or other place of involuntary incarceration.
QUALIFYING IMPROVEMENT: Any portion of the infrastructure listed in the impact fee
facilities plan.
RESIDENTIAL UNIT: Any building or portion thereof which contains living facilities including
provisions for sleeping, cooking, eating, and sanitation, as required by the city, for not more than
one family, and including site built buildings, manufactured homes and modular homes.
ROADWAY FACILITIES: A street or road that has been designated on an officially adopted
subdivision plat, roadway plan, or general plan of a political subdivision, together with all
necessary appurtenances. Roadway facilities includes associated improvements to a federal or
state roadway only when the associated improvements are necessitated by the new development
and are not funded by the state or federal government. Roadway facilities does not mean federal
or state roadways.
ROADWAY FACILITIES IMPACT FEE: The impact fee designated to pay for roadway
facilities.
STANDARD OF SERVICE: The quantity and quality of service which the director has
determined to be appropriate and desirable for the city. A measure of the standard of service may
include, but is in no way limited to, maximum levels of congestion on city streets and roads,
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maximum commute times, maximum wait at stops, minimum police service capabilities,
minimum fire suppression capabilities, minimum park space per capita for a variety of types of
parks, minimum distance from residences to parks, and any other factors the director may deem
appropriate.
STATE: The state of Utah.
SECTION 3. Amending text of Salt Lake City Code Section 18.98.120, Refunds.
Section 18.98.120 of the Salt Lake City Code shall be, and hereby is, amended to read as
follows:
18.98.120: REFUNDS:
A. In determining whether impact fees have been expended or encumbered, impact fees shall be
considered expended or encumbered on a first in, first out basis. If the city fails to expend or
encumber the impact fees as required by subsection 18.98.110(D) of this chapter, the
following shall be entitled to a pro rata refund of such impact fees:
1. The original owner, defined as the record owner of the property at the time the impact
fees have been paid; or
2. The person who paid an impact fee; or
3. Another claimant, who submits a notice to the city of the person's valid legal claim to the
impact fee refund within thirty (30) days after the expiration of the time period required in
section 18.98.110(D).
B. The city shall notify the original owner of the property for which such a refund may be made,
by first class mail deposited with the United States postal service, at the last known address
of such property owners. If the original owner's last known address is no longer valid at the
time the city attempts to notify the original owner, the city shall post a notice on the city's
website, stating the city's intent to refund the impact fee and identifying the original owner.
The notice shall remain on the city's website for one year.
C. In order to receive such a refund, the original owner of the property must, within one year
after the mailing of such notice by the city or posting the notice on the city's website, make a
written request for a refund to the director, including a certification that such person was the
original owner of the property and that he or she is entitled to the refund. The director may
rely on such certification, in the absence of a written claim by another person claiming to be
entitled to the impact fee refund. If in doubt as to whom to pay such funds, or if the original
owner and additional claimant to the refund cannot agree on who will receive the refund, the
director may interplead the impact fee refund to a court of competent jurisdiction for a
determination of entitlement to the refund. In that event, the city may deduct from the funds
deposited an amount equal to the reasonable costs, including attorney fees, of causing the
funds to be deposited with the court.
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D. Any impact fees for which no application for a refund has been made within such one year
period shall be retained by the city and expended on planned facilities identified in the
current impact fees facilities plan for the type of planned facility for which the impact fee
was collected.
E. Refunds of impact fees under this section shall include any interest earned on the impact fees
by the city.
F. When the city seeks to terminate any or all components of the impact fee program, all
unexpended or unencumbered impact fees from any terminated component or components,
including interest earned, shall be refunded pursuant to this section. The city shall publish
notice of such termination and the availability of refunds in a newspaper of general
circulation at least two (2) times and shall notify all original owners of property for which a
refund may be made by first class mail at the last known address of such original property
owners. If the original owner's last known address is no longer valid at the time the city
attempts to notify the original owner, the city shall post a notice on the city's website, stating
the city's intent to refund the impact fee and identifying the original owner. The notice shall
remain on the city's website for twelve (12) months. In order to receive such a refund, the
original owner of the property must, within twelve (12) months after the mailing of such
notice by the city or posting the notice on the city's website, make a written request for a
refund to the director, including a certification that such person was the original owner of the
property and that he or she is entitled to the refund. All funds available for refund shall be
retained for a period of twelve (12) months following the second publication. At the end of
that period, any remaining funds shall be retained by the city, but must be expended for
appropriate planned facilities. This notice requirement shall not apply if there are no
unexpended or unencumbered balances within the impact fee account(s) being terminated.
G. The city shall refund to a developer any impact fees paid by that developer, plus interest
earned on the impact fees, if: 1) the developer does not proceed with the development
activity for which the impact fees were imposed; 2) the developer files with the director a
written request for the refund not later than thirty (30) calendar days after the expiration of
the building permit (or any extension thereof) in connection with which the impact fees were
assessed; and 3) the director determines that no impact has resulted from the contemplated
development activity.
H. The city shall charge an administrative fee for verifying and computing the refund equal to
the lesser of three percent (3%) of the amount of the refund or the city's actual cost of such
verification and computing.
SECTION 4. Amending text of Salt Lake City Code Section 18.98.160(A), Independent
Calculations. Section 18.98.160(A) of the Salt Lake City Code shall be, and hereby is, amended
to read as follows:
18.98.160: INDEPENDENT CALCULATIONS:
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A. If a fee payer desires not to have the impact fees determined according to the city's
consolidated fee schedule, then the fee payer shall prepare and submit to the director an
independent impact fee calculation for the development activity for which a building permit
is sought. The documentation submitted shall show the basis upon which the independent
impact fee calculation was made. The appropriate department staff persons shall review the
independent impact fee calculation and provide an analysis to the director concerning
whether the independent impact fee calculation should be accepted, rejected, or accepted in
part. The director may adopt, reject, or adopt in part the independent impact fee calculation
based on the department's analysis and based on the specific characteristics of the
development activity. The impact fees or alternative impact fees and the calculations shall be
set forth in writing and shall be mailed to the fee payer.
SECTION 5. Effective Date. This Ore' :.1ce shall take effect upon publication.
Passed by the City Council of Salt L e City, 'It: , tI is 5 day of February ,
2019. II
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CITY RECORDER
Transmitted to the Mayor on February 7, 2019 •
Mayor's Action: L Approved. Vetoed.
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CITY RECORDER
.i 4 u4. i APPROVED AS TO FORM
(SEAL) 'e` Q\. `�f �-' -`i`'• ; Salt Lake City Attomey's Office
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By:
Katherine N.Lewis,Senior Ciry Attorney
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Bill No. 6 of 2019
Published: February 12, 2019 .
HB_ATTY-#66660-v 1-Rev ised_Impact_Fee_Ordinance_(New_Law).doc
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