City of Alexandria, Virginia
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MEMORANDUM
DATE: APRIL 27, 2018
TO: THE HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL
FROM: MARK B. JINKS, CITY MANAGER /s/
DOCKET TITLE:
TITLE
Consideration of a Resolution to Adopt Fee Increases Charged by the Department of Planning and Zoning for Zoning Determination Letters, Development Special Use Permits, Development Site Plans, Final Site Plans and CDD Concept Plans. [ROLL-CALL VOTE]
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ISSUE: Consideration of a resolution to adopt fee increases charged by the Department of Planning and Zoning (P&Z) for Zoning Determinations Letters, Development Special Use Permits (DSUPs), Development Site Plans (DSPs), Final Site Plans (FSPs) and Coordinated Development District (CDDs) Concept Plans.
RECOMMENDATION: That the City Council adopt the attached Resolution (Attachment 1). The new fees will be effective July 1, 2018.
BACKGROUND: As part of the FY 2019 budget development process, P&Z conducted a review of its fees to determine whether an increase of the fees may be appropriate at this time. Based on the results of the review, P&Z proposed to charge a fee for Zoning Determination Letters and increase the fees and fee caps for larger development projects.
The Zoning Determination Letter fee would be required for the administrative review process associated with responding to requests for an interpretation of City zoning regulations as they apply to specific development proposals or any action regulated by the Zoning Ordinance. The proposed fee is intended to cover the staff time dedicated to this effort.
The increase in development fees would apply to larger development projects and would increase the base and fee cap for DSUPs, DSPs, FSPs, and CDD Concept Plans.
Revenue from the Zoning Determination Letter fees will amount to approximately $37,500 in additional revenue annually. Revenue from increase in fees for larger development projects will average approximately $288,175 in annual new revenue generation. These fee increases keep Alexandria planning and zoning fees competitive in regard to neighboring jurisdictions, and improve cost recovery.
DISCUSSION:
Zoning Determination Letter Fee
Under this proposal, the City would require a fee for the administrative review for all Zoning Determination Letters. Alexandria does not currently charge a fee for Zoning Determination Letters, as neighboring jurisdictions do. The City does charge for a Zoning Verification Letter, which generally requires less effort and/or staff resources. The Zoning Determination Letter fee of $500 per letter would be in line with neighboring jurisdictions of similar size and density.
Increase in Fees for Larger Development Projects
The fees that have the greatest capacity for increasing revenue are the fees for larger development cases that will require a DSUP, DSP, FSP and/or CDD Concept Plan. All of these cases currently have a maximum fee of approximately $60,000 (there are slight variations by permit type of less than $200) for each application. This maximum was increased from $30,000 in 2012.
The formula for calculating the fee involves a small base fee (in the case of a DSUP, the base fee is $2,400; for FSPs, the base fee is $3,300) and then there is a fee of $12 to $15 per 100 square feet of development, up to the cap of $60,000. DSUPs, DSPs, and CDD Concept Plans have the $12/100 sf fee; FSPs are charged $15/100 sf.
If fee increases are pursued, staff is proposing to make all of these fees consistent with the higher final site plan base fee of $3,300; to charge all of these types of cases $15/100 sf instead of $12/100 sf, and to increase the fee cap to $80,000. The increase in the minimum fee would apply to projects over 482,000 square feet.
Staff estimates that this fee increase would yield in an average annual revenue increase of approximately $288,175. About a third of the increase in revenue would come from projects that are large enough that their total fee would have been over $60,000 but for the cap.
FISCAL IMPACT: The fiscal impact of the proposed fee changes would result in additional revenue of approximately $288,175 annually from the increase in development fees and $37,500 from the Zoning Determination Letter fee.
ATTACHMENTS:
Attachment 1 - Resolution
Attachment 2 - Planning and Zoning Fee Schedule Changes
STAFF:
Emily A. Baker, P.E., Deputy City Manager
Morgan Routt, Director, Office of Management & Budget
Karl Moritz, Director, Department of Planning and Zoning
Nancy Williams, Assistant Director, Department of Planning and Zoning