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HomeMy WebLinkAboutResolution 2023-40 CITY OF SPRINGFIELD, OREGON RESOLUTION NO. 2023-40 ADOPTING A COMMERCIAL TO RESIDENTIAL CONVERSION POLICY RELATED TO THE IMPOSITION OF SYSTEM DEVELOPMENT CHARGES WHEREAS, the Springfield Municipal Code (SMC) 3.400 through 3.420 authorize the City of Springfield to require payment of system development charges (SDCs) for the purpose of imposing an equitable share of the public cost of capital improvements upon development activities that create the need for or increase the demands on such capital improvements; WHEREAS, during the 2023 Regular Session, the Oregon Legislature adopted House Bill 2984, requiring local governments to allow conversion of a building from commercial to residential use without requiring a zone change or conditional use permit; WHEREAS, under HB 2984, the City may require payment of system development charges (SDCs) for commercial to residential conversions only if charge is based on a specific commercial to residential conversion policy adopted on or before December 31, 2023, or if the charge is for wastewater and offset by any SDCs paid when building was originally constructed; WHEREAS, on April 19, 2010, the Council adopted Resolution 10-19, amending and adopting the rate structure for systems development charges for stormwater and local wastewater; WHEREAS, on December 1, 2014, the Council adopted Resolution 2014-38, modifying a methodology for the calculation of transportation system development charges; WHEREAS, SMC 3.416 provides a credit against SDCs for the most intense use documented to have existed since the adoption of the infrastructure plan in effect when the SDC methodology was adopted; however, the City has not adopted a specific commercial to residential conversion policy for SDCs; WHEREAS, pursuant to HB 2984, the City Council considers it in the public interest to adopt a specific commercial to residential conversion policy for SDCs to ensure that development activities in the City of Springfield continue to pay an equitable share of the public cost of capital improvements; and WHEREAS, the City Council finds that the policy adopted herein in consistent with, and does not require amendment to, the SDC methodologies adopted in Resolution 10-19 and Resolution 2014-38, NOW, THEREFORE, BE IT RESOLVED BY THE COMMON COUNCIL OF THE CITY OF SPRINGFIELD: Section 1: A Commercial to Residential Conversion System Development Charge Policy is hereby adopted as provided in Exhibit A, attached hereto an incorporated by reference. Section 2: This Resolution will take effect immediately upon adoption by the Council. ADOPTED by the Common Council of the City of Springfield this 4th day of December , 2023, by a vote of 6 for and o against. ATTEST: ... RLVILY{k1::D&APPRLIVI D AS 101 FIRM n u City Recorder LATE: 12�4i2023 SPRINGFIELD CITY ATTORNEYS OFFICE {00031215:1} Exhibit A Page 1 of 2 City of Springfield System Development Charge Policy: Commercial to Residential Conversions 1. This policy applies to conversion of a building or portion of a building from commercial use to residential use where the building is located (1) within the Springfield Urban Growth Boundary and (2) is not located on lands zoned to allow industrial uses. 2. For the purpose of this policy: a. "'Residential use" is as defined in Springfield Development Code 6.1.110 and includes buildings and portions of buildings comprised of one or more dwelling units. Residential uses do not include transient lodging, short term rentals as defined in Springfield Development Code 4.7.355, or public and institutional uses that do not consist of dwelling units. b. "'Commercial use" is as defined in Springfield Development Code 6.1.110 and includes any Permitted Use within a commercial land use district as provided in Springfield Development Code 3.2.320. c. "Lands zoned to allow industrial uses" means lands within the following land use districts as provided on the Springfield Zoning Map: Campus Industrial (CI), Light-Medium Industrial (LMI), Heavy Industrial (HI), Special Heavy Industrial (SHI), Mixed-Use Employment (MUE), Glenwood Employment Mixed Use (GEMU), or Quarry-Mining Operations (QMO). 3. At the time that SDCs become payable under SMC 3.412, the City Manager or their designee will compute the SDCs for commercial to residential conversions as follows: a. Stormwater: i. For commercial to residential conversions that add impervious surface area, the SDCs will be calculated based on the amount of new impervious surface area only, as provided in the Stormwater Methodology adopted in Resolution 10-19 and the most recently adopted Master Fees and Charges Schedule. ii. If no new impervious surfaces are added, then no additional stormwater SDCs will be payable to the City. iii. A credit proportional to the peak 10-year runoff reduction will be given for retention systems constructed to serve the commercial use(s), or constructed as part of the conversion to residential uses, as provided in the Stormwater Methodology. b. Local Wastewater: i. The SDCs payable to the City will be based on the drainage fixture units Resolution No. 2023-40 f00031215:11 Exhibit A Page 2 of 2 (DFUs) as provided in the Local Wastewater Methodology adopted by Resolution 10-19 and the most recently adopted Master Fees and Charges Schedule. ii. The DFUs used to calculate the SDCs must be equal to the DFUs associated with the proposed residential use, less the DFUs associated with the most intense commercial use that is documented to have existing on the property since April 19, 2010; provided, however, if the calculation results in a negative DFUs, no further stormwater SDCs will be payable. iii. If the building or portion of the building has been vacant since prior to April 19, 2010, the SDCs will be based solely on the DFUs associated with the proposed residential use, with no offset for any prior commercial uses existing prior to that date. c. Transportation: i. The SDCs payable to the City will be based on the average daily trips (ADT) as provided in the Transportation Methodology adopted by Resolution 2014-38 and the most recently adopted Master Fees and Charges Schedule. ii. The ADT used to calculate the SDCs must be equal to the ADT associated with the proposed residential use, less the ADT associated with the most intense commercial use that is documented to have existing on the property since December 1, 2014; provided, however, if the calculation results in a negative ADT, no further transportation SDCs will be payable. iii. If the building or portion of the building has been vacant since prior to December 11 2014, the SDCs will be based solely on the ADT associated with the proposed residential use, with no offset for any prior commercial uses existing prior to that date. 4. To the extent that this policy conflicts with the Springfield Municipal Code or any requirement or provision of an SDC methodology adopted by the City of Springfield pursuant to, the Springfield Municipal Code or SDC methodology will prevail. Resolution No. 2023-40 f00031215:11