HomeMy WebLinkAbout08-27-07_Final Adoption of Ordinance No_ 1714, Providing fo_10
Commission Memorandum
REPORT TO: Honorable Mayor and City Commission
FROM: Ron Brey, Assistant City Manager
Chris Kukulski, City Manager
SUBJECT: Ordinance 1714 providing for the repayment to the city of impact fees deferred
under the workforce housing program at the rate of 10% per year payable on sale of the property
until the obligation is retired or within three years of the ten year anniversary of ownership by
the same party.
MEETING DATE: August 27, 2007
BACKGROUND: Ordinance 1710, which created the workforce housing program provided
for the waiver of impact fees under certain circumstances. The City Commission asked that the
program be revised to collect those fees at the rate of 10% per annum payable on sale of the
property the until the obligation is paid off or, in the event the property is owned for ten years by
the same owner that the owner is permitted to pay over a three year period. At first reading the
Commission approved an amendment that placed the reimbursement at the point of sale and
adopted specific language to require reimbursement within three years of the ten year
anniversary of ownership. This ordinance accomplishes that.
RECOMMENDATION: Adopt Ordinance 1714 on second reading
FISCAL EFFECTS: The City will recapture the subject impact fees at some slight additional
administrative cost.
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ALTERNATIVES: As suggested by the City Commission.
Respectfully submitted,
_________________________________ ____________________________
Ron Brey, Assistant City Manager Chris A. Kukulski, City Manager
Attachments: Ord 1714 - 2nd reading
draft
Report compiled on :8/22/2007
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ORDINANCE NO. 1714
AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF BOZEMAN,
MONTANA, PROVIDING THAT THE BOZEMAN MUNICIPAL CODE BE AMENDED
BY AMENDING SUBSECTION A.3. OF SECTION 17.02.060 TO PROVIDE FOR THE
REPAYMENT TO THE CITY OF IMPACT FEES DEFERRED UNDER THE
WORKFORCE HOUSING PROGRAM AT THE RATE OF 10% PER YEAR UNTIL
THE OBLIGATION IS RETIRED.
WHEREAS, Bozeman has adopted Ordinance 1710 creating a workforce housing program; and,
WHEREAS, Ordinance 1710 provided for the waiver of impact fees under certain
circumstances; and,
WHEREAS, it was subsequently determined that such waiver could not be legally applied; and,
WHEREAS, the City Commission wishes to assist in the cost reduction of housing built under
the workforce housing program; and,
WHEREAS, allowance of an incremental payment of impact fees would accomplish that
assistance.
NOW, THEREFORE, BE IT ORDAINED BY THE BOZEMAN CITY COMMISSION:
Section 1
That Subsection 17.02.060 A. 3. of the Bozeman Municipal Code be amended so that Section 17.02.060.A.3.
reads:
17.02.060. Cost Offsets
A. Developers and builders may choose to take advantage of as many of the following cost offsets as are
appropriate for their project, subject to any limitations listed with specific offsets:
3. A sliding scale of fully waived, reduced and partially deferred impact fees will be used for WHUs.
WHUs priced for sale to households making 70% or less of AMI qualify for 100% waived deferred
impact fees. Units priced for sale to households making 71–80% AMI qualify for 50% waived
deferred impact fees and 50% impact fee payment deferred until required prior to certificate of
occupancy. Units priced for sale to households making 81% to 90% AMI qualify for 25% waived
deferred impact fees and 75% impact fee payment deferred until required prior to certificate of
occupancy. Units priced for sale to households at 91–100% AMI qualify for 100% impact fee
payment deferred until required prior to certificate of occupancy.
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a. Deferred impact fees shall be paid to the City at the rate of 10% per year retiring the
obligation after ten years. In the event of the sale of the impact fee deferred property before
ten years, the remainder of the obligation will be collected from any subsequent buyers at the
rate of 10% per year until obligation is retired.
a. Deferred impact fees shall be paid to the City at the rate of 10% per year, due from the
original purchaser upon sale of the property. In the event of the sale of the impact fee
deferred property before ten years, the remainder of the obligation will be collected from
any subsequent buyers at the rate of 10% per year, due upon any subsequent sale of the
property. Partial years will be assessed on a proportional basis. Such collections will
continue until the obligation is retired. Homeowners to pay remaining impact fees at ten
years. Homeowner is permitted to pay over a three year period after the ten year term is
achieved and home is removed from the program.
Section 3
Repealer. All resolutions, ordinances and sections of the Bozeman Municipal Code and parts
thereof in conflict herewith are hereby repealed.
Section 4
Savings Provision. This ordinance does not affect the rights and duties that matured, penalties
that were incurred or proceedings that were begun before the effective date of this ordinance.
Section 5
Severability. If any portion of this ordinance or the application thereof to any person or
circumstance is held invalid, such invalidity shall not affect other provisions of this ordinance which may be
given effect without the invalid provisions or application and, to this end, the provisions of this ordinance
are declared to be severable.
Section 6
Effective Date. This ordinance shall be in full force and effect on August 15, 2007.
PASSED AND ADOPTED by the City Commission of the City of Bozeman, Montana, at a
regular session thereof held on the 13th day of August, 2007
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__________________________________________
JEFF KRAUSS
Mayor
ATTEST:
__________________________________________
CYNTHIA JORDAN DELANEY
Acting City Clerk
PASSED, ADOPTED AND FINALLY APPROVED by the City Commission of the City of
Bozeman, Montana, at a regular session thereof held on the 27th day of August, 2007.
__________________________________________
JEFF KRAUSS
Mayor
ATTEST:
__________________________________________
CYNTHIA JORDAN DELANEY
Acting City Clerk
APPROVED AS TO FORM:
__________________________________________
PAUL J. LUWE
City Attorney
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