HomeMy WebLinkAboutItem 09 Extension of SDC Reductions for Certain Commercial or Industrial Development and New Single and Two Family Residential Development AGENDA ITEM SUMMARY Meeting Date: 12/3/2012
Meeting Type:Regular Meeting
Staff Contact/Dept.: Len Goodwin/DPW
Staff Phone No: (541) 726-3685
Estimated Time: Consent Calendar
S P R I N G F I E L D
C I T Y C O U N C I L
Council Goals: Provide Financially
Responsible and
Innovative Government
Services
ITEM TITLE: EXTENSION OF SDC REDUCTIONS FOR CERTAIN COMMERCIAL OR
INDUSTRIAL DEVELOPMENT AND NEW SINGLE AND TWO FAMILY
RESIDENTIAL DEVELOPMENT
ACTION
REQUESTED:
Adopt or reject
A RESOLUTION OF THE COUNCIL OF THE CITY OF
SPRINGFIELD AMENDING THE RATE STRUCTURE FOR
SYSTEMS DEVELOPMENT CHARGES AS ESTABLISHED IN THE
SPRINGFIELD MUNICIPAL CODE, SECTION 3.406, AND
SPECIFYING AN EFFECTIVE DATE
ISSUE
STATEMENT:
Council has directed staff to present a resolution extending the 50 percent reduction
of local System Development Charges for certain commercial and industrial
development and for new single and two family residential development.
ATTACHMENTS: 1.: Draft Resolution
DISCUSSION/
FINANCIAL
IMPACT:
At a regular meeting held on November 19, 2012, Council adopted a resolution
extending System Development Charge reductions adopted on February 6, 2012,
for commercial and industrial development which proposes net new useable space
in excess of 75,000 square feet and creates new employment opportunities and for
new commercial and industrial development which proposes net new useable space
in excess of 50,000 square feet that will be occupied by an employer or employers
committed to employ not less than 50 full time employees within one year of
occupancy. That extension runs through June 30, 2013
In addition, Council directed staff to return for a further discussion of whether or
not, and under what circumstances a 50 percent reduction in local Systems
Development Charges would similarly be continued. At a work session on
November 26, 2012, Council directed staff to present a resolution extending the
current temporary SDC reduction on other development to cover smaller
commercial and industrial development and new single and two family residential
development. That program is to be extended through June 30, 2013, and limited to
a total reduction in SDCs of $500,000. An appropriate resolution is attached.
ATTACHMENT 1 Page 1
RESOLUTION 2012 - ______
A RESOLUTION OF THE COUNCIL OF THE CITY OF SPRINGFIELD AMENDING
THE RATE STRUCTURE FOR SYSTEMS DEVELOPMENT CHARGES AS
ESTABLISHED IN THE SPRINGFIELD MUNICIPAL CODE, SECTION 3.406, AND
SPECIFYING AN EFFECTIVE DATE
WHEREAS, the Oregon economy continues to struggle with a number of issues, including high
unemployment and lack of investment; and
WHEREAS, an effect of the continued struggles within the Oregon economy is a lack of new
development which will generate revenues to fund essential service for Oregonians; and
WHEREAS, in particular, the absence of large commercial and industrial development, which
would provide family wage jobs for Oregonians, is challenging the ability of Springfield to
provide adequate levels of service for its citizens; and
WHEREAS, the costs of development include Systems Development Charges imposed by the
City for the purposes of funding future infrastructure that will be required to meet the needs of
community growth; and
WHEREAS, on April 19, 2010, the Council adopted Resolution 10-19, amending and adopting
the rate structure for Systems Development Charges; and
WHEREAS, the Council finds and determines that a temporary reduction in such charges may
provide an incentive to encourage development within the City; and
WHEREAS, the Council desires to stimulate large scale commercial and industrial development
that will provide additional family wage jobs; and
WHEREAS, the Council finds and determines that such a reduction will reduce the amount of
funding available to fund future infrastructure requirements and that such shortfall may result in
the delay of construction of such infrastructure projects; and
WHEREAS, the Council finds and determines that such delay will be consistent with the delay
in reaching the levels of growth contemplated by the several facilities plans upon which the
Systems Development Charge Capital project list are based; and
WHEREAS, the Council finds and determines that any such reduction should be enacted only
for a limited period of time, and that it may, if conditions warrant, be extended by subsequent
action of the Council; and
ATTACHMENT 1 Page 2
WHEREAS, on February 6, 2012, the Council adopted Resolution 12-02, reducing certain local
Systems Development charges imposed by the city for the period ending December 31, 2012;
and
WHEREAS, on November 19, 2012, Council adopted Resolution 2012-19, extending through
June 30, 2013, the reductions in SDCs applicable to commercial and industrial development
proposing more than 50,000 square feet of net useable space; and
WHEREAS, at a work session on November 26, 2012, staff recommend extension of the SDC
reductions through June 30, 2013, on other development, subject to certain restrictions;
WHEREAS, having received a report on the effects of such reduction from City staff on
November 5, 2012, the council finds and determines that it is in the public interest to continue
certain reductions for an additional period, through and including June 30, 2013;
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF
SPRINGFIELD, that for a period beginning on January 1, 2013, and ending on June 30, 2013,
unless further extended by Council Resolution, all Systems Development Charges, except those
modified by Resolution 2012-19, imposed by the City shall be adjusted as follows:
1. For all commercial and industrial development proposing new net useable space less than
50,000 square feet, such charges shall be reduced by 50 percent;
2. For all new single and two family residential development, such charges shall be reduced
by 100 percent; and
BE IT FURTHER RESOLVED, that the total amount of reduction in local SDCs permitted
pursuant to this resolution shall be $500,000; and
BE IT FURTHER RESOLVED, that in the event there are multiple applications for
development pending where the total amount of reductions permitted hereunder, when added to
those previously granted pursuant to this resolution, shall exceed $500,000, staff shall allocate
the remain available amount of reductions on the basis of the date that the building permit
application was deemed complete; and
BE IT FURTHER RESOLVED, that the reductions provided herein shall be in lieu of any and
all reductions which might be available in the Downtown Development area, as described in
Resolution 10-19; and
BE IT FURTHER RESOLVED, that the City Manager is directed to report to the Council on
or before June 18, 2013, with respect to the impact of these reductions both on development
within the City and the impact on Systems Development Charge revenues, and to recommend
whether or not to extend this program of reductions; and
ATTACHMENT 1 Page 3
BE IT FURTHER RESOLVED, that this Resolution shall take effect upon adoption by the
Council and approval by the Mayor.
Adopted by the Common Council of the City of Springfield, Oregon, by a vote of ____ for and
____ against, this ________ day of ___________, 2012.
_____________________________
Mayor
ATTEST:
__________________________________
City Recorder