HomeMy WebLinkAbout10/17/2017 Item 1, Montgomery
Christian, Kevin
From:Montgomery, Victor <VMontgomery@rrmdesign.com>
Sent:Monday, October 16,
To:E-mail Council Website
Subject:Proposed City Impact Fees - Industrial Land Use Category
Attachments:2017 City Fees review draft VM.xlsx
Council Members, in early 2014 my family started a small Industrial project near Suburban Road (on Earthwood Lane). It
started construction in late 2015 and was completed in early 2017. The completed buildings are home to 2 new small
businesses – a brewery and a beverage flavoring company.
I have attached for your review a brief chart comparing the 2015 versus 2017 costs for City Impact Fees and School fees
for this small industrial project. The 2015 fees are the actual fees paid. The 2017 fees are the maximum fee amounts
depicted in the staff report. For purposes of this chart I assumed school fees remained the same for 2015-2017.
The yellow highlighted cells are the total 2015 Impact fees. The green highlighted fees are the total 2017 Impact fees. As
you can see the 2017 fees cost roughly twice the 2015 fees. In 2014 the consultant (EPS) indicated that fees totaling 10%
of the value of an Industrial project are approaching the limit of feasibility. The attached comparison shows that in 2015
the fees amounted to approximately 10% of value. In contrast the 2017 maximum fees approach 20% of value.
The 2017 Transportation + Capacity & Connection fees alone are especially burdensome at about $27.50/SF on a project
that had a construction cost of $170/SF.
If adopted at rates approaching 20% of project value the 2017 fees will likely make Industrial projects like this infeasible.
Feel free to give me a call if you have questions. Thank you for your attention.
Victor, Randi & Max Montgomery
1
10/11/2017
Industrial Land Use City Fee Comparison 2015 vs 2017
Suburban Road Vicinity ‐ Earthwood Lane
13,009 SF Industrial (2 lots)
2015 4070
Fees
2015 4090
Fees
Actual 2015
Fees Total
Estimated
2017 Fees
Total
2017 Fee
Assumption
Fee Description
Water Impact (1" meter) $36,634.00 $36,634.00 $73,268.00 $0.00 replaced
AASP TIF Fee $6,779.00 $5,357.00 $12,136.00 $0.00 replaced
Storm water (Moderate) $1,671.00 $1,671.00 $3,342.00 $3,342.00 same
Affordable Housing $31,150.00 $23,050.00 $54,200.00 $54,200.00 same
Wastewater (Calle Joaquin) $4,389.00 $4,389.00 $8,778.00 $0.00 replaced
Fire Safety Surcharge $2,692.00 $2,314.00 $5,006.00 $5,006.00 same
City Wide Base TIF Fee $16,425.00 $12,229.00 $28,654.00 $0.00 replaced
Public Art $2,121.00 $1,311.85 $3,432.85 $3,432.85 same
AA Open Space in Lieu Fee $4,111.00 $2,814.00 $6,925.00 $6,925.00 same
City Wastewater fee (1" meter) $8,949.00 $8,949.00 $17,898.00 $0.00 replaced
School Fees $6,888.99 $5,775.96 $12,664.95 $12,664.95 same
Park Fees $0.00 $0.00 $0.00 $16,912.00 $1.30/sf
General Government Facilities $0.00 $0.00 $0.00 $3,252.25 $0.25/SF
Police Facilities & Equip $2,315.50 $0.18/SF
Fire Facilities & Equip $1,951.00 $0.15/SF
Transportation $255,757.00 $19.66/sf
Capacity & Connect Fees (2‐1"meters)$96,498.00 new
SUB‐TOTAL Impact Fees $121,809.99 $104,494.81 $226,304.80 $462,256.55
Other City fees $27,920.90 $27,920.90 same
TOTAL All City & School Fees $254,225.70 $490,177.45
2015 Per SF
Fee Cost
2015 % of
Construction
Cost
2015 % of
Appraised
Value 2017 Per SF
2017 ‐ % of
Construction
Cost at 2015 x
1.2 ($204/SF)
2017 ‐ % of
2015
Appraised
Value
(same
value)
City Impact Fees/SF of Building $17.40 10.2% 9.43% $35.53 17.42% 19.26%
All City & School fees/SF of building $19.54 11.5% 11% $37.68 18.47% 20.42%
Building SF = 13,009
Construction Cost $170/sf
Bank Appraised Value ‐ $2,400,000