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HomeMy WebLinkAboutResolution 4433 implementing portions of Ordinance 1853 for deferral of payment of Transportation Impact Fees ., ,..yCO.,-r COMMISSION RESOLUTION NO. 4433 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, IMPLEMENTING PORTIONS OF ORDINANCE 1853 BY ALLOWING FOR DEFERRAL OF PAYMENT OF TRANSPORTATION IMPACT FEES UNDER DEFINED CONDITIONS AND TERMS WHEREAS, On February 25, 2013 the Bozeman City Commission adopted Ordinance 1853 amending Chapter 2, Article 6, Division 9 BMC to enable for a deferral of payments of fees; and WHEREAS, Ordinance 1853 established certain requirements including a required resolution, data to be provided and procedures in order for any deferral of payments of fees to be implemented; and WHEREAS, the City Commission directed that an implementing resolution be prepared to enable the deferral of transportation impact fees. NOW, THEREFORE, BE IT RESOLVED by the City Commission of the City of Bozeman, Montana, that the following impact fee deferral program is hereby adopted: CITE'OF BOZEMAN IMPACT FEE DEFERRAL PROGRAM 1. INTRODUCTION Impact fees are typically paid at the time a building permit or connection to water and sewer systems permit is issued, The development impact fee deferral program instead allows for impact fees to be paid after issuance of a building permit but prior to the time a certificate of occupancy is issued for projects which require such a certificate. Resolution 4433 Page 1 of 2. DEVELOPMENT IMPACT FEES The transportation impact fees are the only fees that can be deferred until a Final Certificate of Occupancy is issued by the City of Bozeman. . 'WHICH PROJECTS QUALIFY FOR DEFERRAL New Residential and Non-Residential Constructions projects may be eligible to participate in the deferral program. Under this program, all deferred fees are due prior to the issuance of a Certificate of Occupancy. Only properties located within the City of Bozeman are eligible for this program. Obligor means the person or entity responsible for the payment of impact fees. A deferral will not be allowed when the Obligor has had any of the following as they are considered to be at a higher risk of non-payment of the deferred fees: I. The Obligor has had a foreclosure on any properties in the past four years. 2. The Obligor has had any bankruptcy filing in the past four years. 3. The Obligor has outstanding and unsatisfied Civil Judgment(s). 4, The Obligor has unpaid taxes and fees or other unpaid amounts due to the City of Bozeman for the project which is the subject of the deferral request; or other properties within the City of Bozeman. 5. The Obligor has been convicted of a felony offense involving theft or a related offense, or fraud. & If no Certificate of Occupancy is required for the project. No deferral may be granted until all required zoning or subdivision review steps have been completed. No deferral may be granted until any required documents have been completed and if necessary recorded with the Gallatin County Clerk and recorder and evidence of recording provided to the City. 4. FEE DEFERRAL PROCESS Process Anticipated Time Frame Application for deferral submitted to the Community Development Department in conjunction with the initial Building Permit application Application is reviewed by staff. The department will notify the applicant of 5-10 working approval or denial. days Agreement and Notice of intent to lien is prepared by the City (please contact 5-7 working staff at least 5-7 working days prior to the anticipated date that the days building permit will be issued for the project) Applicant signs Agreement and records the Agreement at the Gallatin County 2-3 working Clerk and Recorder and provides evidence of the recording at least two days working days before issuance of the building permit. Building Permit issued, less deferred fees Project is built/completed varies Resolution 4433 Page 2 of 6 Applicant notifies Building Division of request for final inspection and 10 working Certificate of Occupancy ((please contact Community Development staff at days, least 10 working days prior to anticipated date that the Certificate of Occupancy is desired) Payment of deferred fees—Prior to issuance of Certificate of Occupancy and 2-3 working preparation of Release (please contact Community Development staff 2-3 days, working days prior to anticipated date that the Certificate of Occupancy will be issued for the project) Any agreement to defer fees shall be between the City and the record owner of the property and shall run with the land. 5. DEVELOPMENT FEE CALCULATION The fee amount approved for a fee deferral is based on the actual fees which are determined as part of the Building Permit review process as described in Chapter 2, Article 6, Division 9, BMC. 6. AFFECTED PROPERTY The affected property shall be clearly described by either a metes and bounds description or by reference to a recorded certificate of survey or plat. The affected property consisting of one or more parcels for which development impact fees have been deferred and which collectively is encumbered by the outstanding fee balance shall be subject to the Notice of Intent to Lien until all deferred fees are paid to the City. 7. LIEN CREATED The property owner shall execute an Agreement and Notice of Intent to Lien. In the event of default the City shall record a lien against the property. Said lien is intended to guarantee the payment in full, plus accrued interest,processing fees, and the cost of collection, if applicable, of the deferred development impact fees. 8. PAYMENT DEMAND The property owner shall agree to provide payment of the deferred development impact fees prior to issuance of a certificate of occupancy, whether temporary or permanent; .and prior to any physical occupancy of the building. The property owner further agrees that failure to provide such payment within said time :(Tame shall constitute a material breach of this resolution, 9. TERM OF PAYMENT The outstanding fee balance indicated on any recorded Agreement and Notice of Intent to Lien shall be payable to the City prior to the issuance of a certificate of occupancy. Should the deferred fees not be paid when they become due and payable or should the property owner be in breach or any provisions of this agreement: (a) all remaining and unpaid impact fees shall be accelerated and become immediately due and payable; and (b) an additional One Thousand and no/100 Dollars ($1,000.00) shall be added to the unpaid balance to cover the initial administrative costs incurred in processing the fee deferral application; and (c) any additional costs required to collect unpaid deferred fees. Resolution 4433 Page 3 of 6 10�. FEES The applicant shall pay an initial application fee of$50 dollars at the time the request for deferral of impact fees is submitted to the City. The applicant is responsible for payment of all fees associated with recording documents with the Gallatin County Clerk and Recorder. 11. INTEREST Interest shall be charged at the rate of the annual interest the City must pay to borrow from the State of Montana short term INTERCAP loan for any deferred fees not paid when due and payable in accordance with the deferral Agreement. Interest will be retroactive to the beginning of the date of payment deferral agreement, 12. SUBORDINATION The lien created hereunder shall not be subordinated. 13. RELEASE OF LIEN Upon full payment of all deferred impact fees and associated costs to the City and complete satisfaction of all terms and conditions by the property owner of an Agreement prepared to execute this Resolution, the City shall promptly release the lien created hereunder by executing a lien release clearly releasing the City's interests in the property. 14,. COLLECTION The City may pursue collection through all available legal and administrative means including, but shall not be limited to,judicial or non judicial foreclosure of the recorded lien against the Affected Property and/or civil judgment against the property owner for breach of this Agreement and/or security provided hereunder, As part of the obligation secured hereby and in addition to the amount of the deferred fees stated above, there shall be included cost and reasonable expenses and fees, including reasonable attorneys' fees, incurred by the City in successfully enforcing such obligation, all to be taxed as costs and included in any judgment rendered, 15. ASSIGNMENT This interests in the deferral shall not be assigned or otherwise transferred to a person or entity not a party to the deferral without the express prior written consent of the City, Any person or entity seeking assignment or transfer of the deferral shall meet all the terms and conditions under this Resolution of the City Commission adopting standards for the fee deferrals. Assignment shall not be effective until proposed assignee/transferee executes an assignment and assumption agreement, in a form acceptable to the City Attorney, assuming all duties and obligations of the property owner under this resolution. Any assignment or transfer not in strict compliance with this provision shall: (a) be null and void; (b) constitute a material breach of this resolution; and (c) cause all impact fees deferred under this Agreement to become due and immediately payable at the time of the attempted assignment or transfer. 16. INTREGRATION An agreement created under the terms of this resolution constitutes the complete, entire, exclusive, and final agreement and understanding between the parties as to the subject matter herein, superseding all negotiations, prior discussions, and preliminary agreements or contemporaneous understandings, written or oral. Resolution 4433 Page 4 of 6 17. MODIFICATIONAND AMENDMENT Any Notice or Release shall. not be amended, modified, or otherwise changed unless in writing and signed. 18. SUCCESSORS AND ASSIGNS This resolution and any action taken pursuant to it shall be binding upon and inure to the benefit of the parties and their respective successors and assigns. 19. AUTHORITY TO EXECUTE A property owner or other person making application or signing a form prepare pursuant to this resolution warrants and represents that they have the authority to execute an Agreement on behalf of their entity and have the authority to bind their party to the performance of its obligations hereunder. False representation shall constitute perjury or false swearing. 20. APPEALS Appeals of actions taken under this Resolution shall follow the procedures of Section 2.06,1700.1, BMC, 21. ADMINISTRATION This program shall be administered by the Community Development Department who shall be aided by other City departments as may be necessary, Section I SEVERABILITY If any portion of this Resolution is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remainder of the provisions of this Resolution shall remain in full force and effect and shall in no way be affected, impaired, or invalidated. PASSED AND APPROVED by the City Commission of the City of Bozeman, Montana, at a regular session thereof held on the 1" day of April, 2013. /S SEAN AtECKER Mayor Mayyor Resolution 4433 Page 5 of 6 ATTEST., T ,L i; It IC cit Clerk APPROVED AS TO FORM: OLIG ULLIVAN ``�. City orney Resolution 4433 Page 6 of 6