HomeMy WebLinkAboutItem 02 Housing and Infrastructure AGENDA ITEM SUMMARY Meeting Date: 10/26/2020
Meeting Type: Work Session
Staff Contact/Dept.: Jeff Paschall/DPW
Sandy Belson/DPW
Staff Phone No: 541-726-1674
541-736-7135
Estimated Time: 30 Minutes
S P R I N G F I E L D
C I T Y C O U N C I L
Council Goals: Maintain and Improve
Infrastructure and
Facilities
ITEM TITLE: HOUSING AND INFRASTRUCTURE DISCUSSION
ACTION
REQUESTED:
Provide direction to staff concerning Council’s desire to explore the potential of
expanding public systems to unserved areas within the urban growth boundary
(UGB) to encourage residential development with the use of public funds to
construct public infrastructure.
ISSUE
STATEMENT:
Springfield continues to lack sufficient housing to meet community needs.
Developable land is a key component to the construction of new housing.
Extending infrastructure to serve residential land is one strategy the city could use
to facilitate additional residential development.
ATTACHMENTS: 1.Council Briefing Memorandum
2.Map showing “Unserved Vacant Residential Land”
DISCUSSION/
FINANCIAL
IMPACT:
Typically when development is proposed on properties within the urban growth
boundary (UGB), the necessary infrastructure (e.g. streets and utilities) are provided
by the developer or property owner. This includes construction of new facilities,
and extension or upgrades of existing public facilities per the Springfield
Development Code and Engineering Design Standards and Procedures Manual.
The cost to extend necessary public improvements can be an impediment for many
developments. Staff has heard anecdotally from developers within our community
that there are currently few options for developers to directly pay for or finance the
costs of extending public facilities to their property.
Staff is seeking direction from the City Council on the idea of utilizing user fee
capital reserve funds to extend public services (e.g., wastewater) to unserved areas
within the City limits or UGB to allow for future development connections. If
Council is supportive, in a future work session staff will bring forward options for
including one or more projects in this year’s update to the city’s Capital
Improvement Program.
M E M O R A N D U M City of Springfield
Date: 10/26/2020
To: Nancy Newton COUNCIL
From: Sandy Belson, Comprehensive Planning
Jeff Paschall, City Engineer
BRIEFING
Subject: Housing and Infrastructure MEMORANDUM
ISSUE:
Springfield continues to lack sufficient housing to meet community needs. Developable land is
a key component to the construction of new housing. Extending infrastructure to serve
residential land is one strategy the city could use to facilitate additional residential development.
COUNCIL GOALS/
MANDATE:
Maintain and Improve Infrastructure and Facilities
BACKGROUND:
The attached map, Attachment 2 - Unserved Vacant Residential Lands, shows in a general
manner the land that was determined to be vacant, partially vacant, or master planned in the
Springfield Residential Land and Housing and Housing Needs Analysis (April 2011) that
remains vacant or partially vacant in 2020[1]. In other words, the previously vacant or partially
vacant properties that have been developed over the past decade are not shown on this map.
While there are still some vacant and partially vacant properties within the city limits that are
adjacent to wastewater and stormwater mains, several areas outside the city limits would require
an extension of these city systems to support urban development. In order for these properties to
be developed to urban densities, the City would need to annex the property and the developer
typically would be expected to construct these necessary public improvements to support the
new homes.
The City is responsible for ensuring that public infrastructure is constructed, updated, and
maintained in accordance with the Springfield Development Code (SDC) and current
engineering design standards as adopted by the City Council. This not only includes City
initiated projects identified through the Capital Improvement Program, but also required public
infrastructure improvements triggered through private development.
The capital investment required for construction and on-site roads and utilities is
significant. Taking on the extension of public infrastructure adds to the upfront capital
necessary for a project. There are a few options for developers to directly pay for or finance the
costs of extending public infrastructure to their property.
•Self-funding – The property owner/developer pays for all costs associated with
necessary public facilities. They may be eligible for system development charges (SDC)
credits for projects identified on the approved project list, or some City participation for
[1] The Residential Land Inventory is based on land that has a plan designation of residential as well as the
Glenwood Residential Mixed-Use Plan District. This map is not an official update of the buildable lands
inventory, but rather a generalized representation of the previously inventoried land that remains vacant or
partially vacant.
Attachment 1, Page 1 of 2
MEMORANDUM Page 2
oversizing facilities that would benefit additional properties.
•Reimbursement District – In 2008 the City Council adopted an ordinance allowing
prospective developers/property owners to set-up a reimbursement district. This allows
the City to collect fees from future benefitting developments and use those funds to
reimburse the original developer.
•Local Improvement District (LID) – The property owner may petition to form a LID
enlisting abutting property owners in paying their fair share of the necessary public
facilities.
There are downsides to the developer for each of these approaches. Self-funding requires
significant cash or favorable financing. It does not allow the developer to recoup costs as other
properties tap into the newly constructed wastewater or stormwater facilities. A developer with
sufficient capital or financing options has the option of setting up a reimbursement district, but
not all developers want to or are able to take on that up-front cost, particularly since there is no
guarantee that s/he will be fully reimbursed over the 20-year timeframe allowed through a
reimbursement district. Forming an LID requires that other property owners are willing and able
to pay for the improvements at the same time as the developer. Not all property owners are on
the same schedule and may not choose to participate in an LID.
Currently, the City has built up significant capital reserve funds for wastewater ($9.3 million)
and stormwater ($7.1 million). This financial position is such that the city could finance one or
more extensions of sewer main to bring sanitary sewer and/or stormwater service to currently
unserved vacant land. As property owners/developers decide to develop, they would pay for
their share of the costs that the city paid to extend those services. As such, the ratepayers would
be extending a “loan” that would be repaid upon development. This development would also
result in an increase in the number of ratepayers supporting the utility as a whole.
This pro-active approach to service delivery on the part of the city would involve annexation of
rights-of-way and possibly other property based on the alignment of the sewer main. Depending
on the status of the county road, annexation could result in the city automatically assuming
jurisdiction of the existing street. In other cases, Lane County may formally seek to transfer
jurisdiction of the street to the City. In keeping with the city’s policy of “no forced annexation”,
abutting properties would not be annexed unless the property owner(s) requested annexation. It
should be noted that the Oregon Department of Environmental Quality does not allow any new
septic systems or replacement septic systems for a single-family home within 300 feet of an
available wastewater line. In some cases, extending a wastewater line could provide benefit to
nearby developed properties. Should an on-site septic system come to the end of its life, then a
property owner would be able to annex and connect to the extended wastewater.
A decision to invest in the extension of infrastructure to facilitate residential development will
depend on the particulars in each case. At this time, staff is seeking Council questions and
thoughts on whether or not to consider utilizing this strategy to address the housing needs in our
community. If there is interest, staff will return to Council in a future work session as part of the
process for preparing this year’s update to the Capital Improvement Program and discuss
locations, priorities and timing.
RECOMMENDED ACTION: Discuss the idea of utilizing user fee capital reserve funds to
extend public service (e.g., wastewater) to unserved areas within the city limits or urban growth
boundary for future connections. If supported, staff will expand the discussion with Council
through the upcoming Capital Improvement Program update.
Attachment 1, Page 2 of 2
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Not currently served by City waste water and storm water mains
Residential Land Inventory
Master Planned
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Attachment 2, Page 1 of 1