HomeMy WebLinkAboutCPA201500002 Staff Report 2016-04-21 (8)CASH PROFFER POLICY FOR PUBLIC FACILITIES
Originally adopted by the Board of Supervisors October 10, 2007;
amended with this Comprehensive Plan
A. General
1. Authority: Virginia Code § 15.2-2303 enables the County to accept proffers as reasonable conditions
to address the impacts resulting from a rezoning. This authority includes the authority to accept cash
contributions to address impacts to public facilities generated by new residential development.
2. Policy: It is the policy of the County to require that the owner of property that is rezoned for
residential uses to provide cash proffers equivalent to the proportional value of the public facilities
deemed necessary to serve the proposed development on the property. Accordingly, the Board will
accept cash proffers for rezoning requests that permit residential uses in accordance with this policy.
However, the Board may also accept cash, land or in -kind improvements in accordance with County
and State law to address the impacts of the rezoning.
3. Reasonableness: This cash proffer policy must meet a "reasonableness" test, which requires the Board
to determine for each rezoning whether the amount proffered is reasonably related both in nature
and extent to the projected impacts of the proposed development on public facilities. Through this
policy, staff will recommend a maximum cash proffer in each case that meets this test of
reasonableness.
4. Public facilities covered by this policy: The following public facilities will be funded by cash proffers:
schools, transportation, parks, libraries and public safety. The County does not currently calculate a
cash proffer value to fund public facilities such as water and sewer improvements, jails, landfills and
other government facilities.
B. Maximum Per Unit Cash Proffer Amount
1. Maximum: The maximum cash proffer that the Board will accept for public facilities from residential
rezoning applicants is $17,500.00 per SFD; $1 1,900 per SFA/TH; and $12,400 per MF unit, to be
adjusted annually without any further action by the Board according to the most applicable Marshall
and Swift Building Cost Index, as determined by the Director of Community Development, and as
expressly provided in the proffer statement.
2. Annual adjustment: Adjustments to the cash proffer amount due to projected public facilities costs may
be considered every fiscal year. Staff will re -compute net costs based on the current methodology
and recommend adjustments.
C. Calculation of Per Unit Cash Proffer Amount for a Rezoning
1. General: Pursuant to this policy, staff will (i) calculate the annual net cost of public facilities; (ii)
calculate the fiscal impact of a rezoning request that permits residential uses on those public facilities;
and (iii) administer the collection and expenditure of the proffered funds in accordance with State
law.
A.1.1
2. Assumptions made in calculating the cash amount: Staff determines the cost of public facilities
generated by new residential development by relying on the assumption that any revenue derived
from growth (residential and commercial real estate taxes, sales taxes, fees, etc.) will pay the normal
operating costs for services to residents of new developments and a percentage of the County's
Capital Improvements Program (CIP).
3. Determining number of dwelling units in rezoning: A rezoning's impact on public facilities will be
evaluated based on the gross number of proposed dwelling units. When calculating the gross number
of dwelling units, staff will:
a. Use the upper end of the density range allowed by the rezoning.
b. Not give credits for those dwelling units permitted under existing zoning regulations
(except as provided in sections C(6)(c) and (e)) or on agricultural lots, and will not consider
the transferring of allowable units from other properties.
c. Exclude dwelling units qualifying as affordable housing under the County's definition of
affordable housing. This exclusion does not apply to cash provided in lieu of affordable
units.
4. Use of averages: In determining the net cost per dwelling unit of a public facility, staff relies on
countywide averages, where possible. For certain public facilities, staff relies on averages
established for geographic service areas or districts established in the County.
a. Parks, libraries and public safety facilities: Since parks, libraries, and public safety
facilities serve the entire County, the geographic service districts for these facilities are
determined to be countywide. Rezoning requests will be analyzed on a countywide basis
to determine impacts on these facilities and proffers may be spent to fund these facilities
countywide.
b. Schools: The impacts of a residential development on schools will be analyzed on a district
basis to determine impacts on schools. In order to ensure that the cash proffered by an
applicant is used to fund the public facilities impacted by or required for the
development, the County is divided into three geographic service districts corresponding
to the attendance zones of high schools. District 1 corresponds to the attendance zone for
Albemarle High School, District 2 corresponds to the attendance zone for Western
Albemarle High School, and District 3 corresponds to the attendance zone for Monticello
High School. Funds collected from a development within a District will be spent on school
improvements within that District or for any school improvement that provides relief for the
District the development is in.
c. Transportation: With respect to transportation, the fiscal impact of rezoning requests will
be analyzed on a countywide basis, with cash collected from a rezoning expended on
transportation projects in the County's Comprehensive Plan and associated Master Plans,
CIP/CNA, Strategic Plan, or VDOT Six Year Improvement Plan that relate to the impacts
resulting from the rezoning.
A.1.2
5. Consideration of demand, service level and cost: In addition to the use of averages, staff will consider
the four "components" involved in calculating what a new dwelling unit will cost the County in terms of
providing public facilities. These components are as follows:
a. Demand generators: Staff uses the average for single family detached (SFD), Single
Family Attached / Townhouse/Condominium (SFA/TH) and Multi-Family/Apartment (MF)
to determine the number of persons per dwelling unit, the number of students per dwelling
unit (for elementary, middle and high schools) and the number of daily vehicle trips per
dwelling unit to calculate demand generators (population, population portion of
population plus jobs, pupils, and daily vehicle trips) associated with a new dwelling unit.
b. Service levels: Staff assumes that the public facilities contained in the County's CIP/Capital
Needs Assessment (CNA) and Strategic Plan will accommodate ten years' worth of new
development in a manner that will maintain present levels of service. Service levels are
calculated on a per -person, per -pupil, and per -daily vehicle trip basis. (Service levels are
calculated annually).
c. Gross cost of public facilities: Staff calculates the gross cost of public facilities. The term
gross cost is used because a credit (described in C(5)(d) below) for anticipated future
revenues from a new dwelling unit will be applied against the gross cost. For example, to
calculate the gross cost of park facilities, the average persons per dwelling unit is
multiplied by the County's per -capita CIP/CNA/Strategic Plan amount for park facilities.
d. Net cost: Staff calculates the net cost per public facility or maximum cash proffer. This is
the gross cost [(C)(5)(c)] per public facility minus the applicable credit [(C)(6)] per public
facility.
6. Credits: Staff calculates a credit to apply against the gross cost for each public facility. The County
has issued and plans to continue to issue general obligation bonds to finance the construction of public
facilities. New development will generate real estate and other taxes to the County and staff
assumes that a percentage of these taxes will go to help retire this debt. So that new dwelling units
are not paying twice (once through payment of a cash proffer and again through real estate taxes) a
credit is computed. For FY 08, that percentage is assumed to be 6%. Credits are authorized for the
following:
a. Land and public infrastructure: In some cases, a rezoning applicant may wish to mitigate
the development's calculated impact on public facilities by dedicating property or doing
in -kind improvements in lieu of all or a portion of the cash proffer. The dedication of land
and the construction of public facilities recommended by the County's CIP or its master
plans, or otherwise identified as being necessary to address the impacts resulting from the
proposed development. Land and improvements that are not identified in the CIP or in a
master plan should be entitled to a credit only when it is found that the proposed
development creates an immediate need for the land or improvement that is better
addressed by the applicant dedicating the land or constructing the improvement than by
receiving the cash equivalent. Credit for transportation may be allowed for off -site land
dedication or improvements, as recommended by the Department of Facilities
Development.
A.1.3
(1) Determining value: The value of donated land generally will be based on the
current assessed value of the specifically proffered property (not the assessed
value of the property as a whole), not to exceed the cost per acre used in the
calculation of the proffer. The value of improvements shall be the estimated cost as
if constructed by a governmental entity. If the dedication or in -kind improvement
does not fully mitigate the development's calculated impact on public facilities,
then the dedication and/or improvement's value may be applied as a credit
against the development's calculated impact on the applicable public facility.
(2) Maximum credit: The credit cannot exceed the development's calculated impact on
the applicable public facility.
b. Operational expenses: Operational expenses where the Board determines that the cash
contribution reduces the demand for public facilities. For example, a cash proffer for the
operational expenses of public transit that eliminates the need for planned road
improvements could be entitled to a credit, which would be an amount comparable to the
reduction in infrastructure costs.
c. No increase or small increase in density: In rezoning applications where there is a minimal
increase in density, a credit may be given for the number of residential units allowed
under the existing zoning and the cash proffer amount will be based only on the estimated
density increase resulting from the rezoning. This credit may be allowed only for those
rezoning applications where the rezoning seeks the design flexibility allowed by the
Neighborhood Model zoning district or seeks to amend a prior rezoning with no increase
in density. The credit should not be allowed if the rezoning application seeks to increase
density in a conventional, rather than a planned, zoning district.
d. Small infill development with existing dwellings: In rezoning applications for small infill
developments, a credit may be given for each existing dwelling that will remain. For
example, if a rezoning application would rezone a lot with an existing house to allow
three lots, only two new lots would be created allowing two new dwelling units. If the
existing dwelling unit will remain after the rezoning, the cash proffer policy should apply
only to the two new dwelling units.
e. Substantial upgrades to design/development standards: The Board may consider
development proposals that include substantial upgrades to current design/development
standards and ordinance requirements as justification for granting a credit to the pre-
existing lot yield. Pre-existing lot yields will be calculated using average actual recorded
lot yields provided the applicant has not otherwise submitted documentation indicating
higher lot yields in conformance with existing ordinances and reflective of site specific
physical features.
Unique circumstances: The County considers any unique circumstances about a proposed
development that: (i) mitigate the development's projected impact on public facilities; and
(ii) create a demonstrable reduction in capital facility needs. Unique circumstances may
include, but not be limited to, such projects like an age -restricted housing project. Staff, the
applicant or any other person may identify such mitigating circumstances.
A.1.4
7. Applicable policy: A rezoning's fiscal impact on public facilities shall be established under the cash
proffer policy in effect on the date of the last public hearing prior to the Board of Supervisors'
decision on the rezoning.
D. Timing of Contribution and Expenditure of Cash Contributed
1. Timing: Payment of the cash proffer for residential development must occur prior to release of a
building permit. Timing for dedication of property or in -kind improvements should be specified in the
proffer.
2. Expenditure: The cash contributions shall be expended in accordance with State law. Cash
contributions received under this policy must be used for projects identified in the Comprehensive Plan
and associated Master Plans, CIP/CNA, and/or Strategic Plan. For public facilities having a
countywide service area (parks, libraries and public safety), the cash contribution may be spent
countywide.
A.1.5