Title
SECOND AND FINAL READING OF AN ORDINANCE AMENDING THE LAND DEVELOPMENT CODE OF THE CITY OF COMMERCE CITY BY THE ADDITION OF A PUBLIC SAFETY FEE ON NEW DEVELOPMENT BASED OFF RECENT STUDIES OF THE SAME
Body
The purpose of this session is to provide Council with a comprehensive review of the Impact Fee Study and Report that has been prepared by Willdan Financial. At a high level, an impact fee is a type of fee charged to developers or builders when they seek permits for new construction projects. The purpose of an impact fee is to mitigate the impact of new development on the surrounding community by ensuring that the cost of necessary infrastructure improvements are paid for by the developers or builders rather than by taxpayers. Impact fees are a common tool used by local governments to manage growth and development in their communities and is intended to ensure that new development pays its fair share of the costs. Impact fee revenue must be spent on new facilities or expansion of current facilities to serve new development.
Because the high level of growth occurring in the City (3.3% percent growth rate year-over-year) has created an immediate and future impact on community facilities and public projects, the City posted a Request for Proposals for a User Fee and Impact Fee Study to conduct a user and impact fee review and provide recommendations on new user and impacts for the City. After a competitive bidding and interview process, the City entered into an Agreement for Professional Services with Willdan Financial Services in December of 2021.
The principal goal of the Impact Fee Study was to help the City ensure that new development pays the capital costs associated with growth. In addition, Willdan established a series of additional objectives including:
· Developing a rational basis for setting fees
· Identifying subsidy amount, if applicable, of each fee in the model
· Ensuring compliance with State law
· Developing an updatable and comprehensi...
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