Item Coversheet
Item #7.

Staff Report 142-21

TO:

Mayor and City Council




FROM:

Eric Holmes, City Manager




DATE:

9/27/2021








SUBJECT


Fourth Plain Commons 80% Impact fee Waiver
Key Points
  • City Council may waive Transportation and Park development impact fees for low-income housing developments.
  • In return, the applicant is required to maintain the affordability limitations for the project in perpetuity.
  • The applicant is requesting an 80% reduction in Transportation and Park impact fees for a 106-unit development for low-income households.

Strategic Plan Alignment

 

Goal 3, Objective 3.2: Improve services available to underserved or vulnerable residents.


Present Situation

In 2016 Council approved Ordinance M-4154 allowing a partial exemption or full waiver of transportation and parks impact fees to spur affordable housing projects. A waiver of the school district impact fees is only available upon approval by the school district in which the project is located.

 

For residential developments of four or more units Council may, by resolution, partially exempt up to 80% of the transportation and park impact fees or fully waive 100% of the impact fees. If Council only partially exempts the development there is no requirement to pay the exempted portion of the fee from public funds. If Council fully waives the development from impact fees, the remaining 20% of the waived fee must be paid from public funds other than impact fee accounts.

 

Fourth Plain Commons

 

The Fourth Plain Community Commons is a mixed-use development that will include both housing and community space. This project is a collaboration between the Vancouver Housing Authority (VHA) and the City of Vancouver. The Vancouver Housing Authority plans to own and operate the apartments located on the upper floors. The City of Vancouver will develop the ground floor space and partner with community-based organizations to operate it.

 

The project site is located at 2200 Norris Road at the intersection of Fourth Plain Boulevard and Norris Road. The proposal is to build 106 new income-restricted housing units as part of a mixed use development. The residential unit types will include studios up to three bedrooms restricted for low-income households and individuals. The project is using Vancouver affordable housing funds that restrict tenants to those earning 50 percent or less of the area median income. At 50% of AMI the maximum income for a family of four would be $48,350. The 30% monthly housing expense limit for rent and utilities would be $1,209.

 

This waiver request is for an 80% partial impact fee exemption of City of Vancouver Transportation and Park impact fees.

 

The transportation impact fees are based on the new vehicle trips generated and designated fee subarea. The Columbia impact fee subarea requires $180 per new average daily trip. The new trips generated from the residential portion of the development are 577. After a 15% tax reduction the total impact fee for the residential units is $88,281 (Exhibit A). After an 80% waiver of $70,624.80 the remaining transportation impact fee paid by the developer would be $17,656.20.

 

Park impact fees are based on the number of residential units and the park district subarea. The site is located within Park District B, which has a rate of $1,739 per unit. The total park impact fee is $184,334 (Exhibit A). After an 80% reduction of $147,467.20, the remaining required park impact fee would be $36,866.80.

 

School impact fees are based on the number of residential units and the school district subarea. The project site is located within the Vancouver School District which requires $2,381.93 per multi-family unit. The Vancouver School District has declined to waive impact fees in this case. All impact fees are due prior to the issuance of building permits.


Advantage(s)
  1. Fosters creation of 106 new rental units
  2. New rental units to be restricted for households earning 50% or less of the area median income.
  3. Units will be income restricted for a minimum of 37 years through the State low-income housing tax credit program.

Disadvantage(s)
  1. Loss of $70,624.80 in Transportation impact fees
  2. Loss of $147,467.20 in Park impact fees

Budget Impact

The current biennium's budget will not be impacted, however the loss of revenue in Park District B and Transportation would impact future projects that could have used this revenue source.


Prior Council Review
None
Action Requested

Adopt a resolution to exempt 80% of Transportation and Park impact fees for the Fourth Plain Commons low-income housing development.

 

Peggy Sheehan, Community Development Programs Manager, 360-487-7952

 


ATTACHMENTS:
Description
Memo
Resolution
Fee Waiver Covenant