Title
Consideration of Development Impact Fee Updates (Resolution 22290) - Citywide
Description
Request City Council approval of the development impact fees specified in the Development Impact Fee Report dated February 11, 2025, based on the Infrastructure Improvements Plans approved by City Council on December 18, 2024.
Report
Summary
Development impact fees are assessed on new building permits to help cover the capital cost of certain public improvements, principally infrastructure that are necessary to serve new development. Development impact fees are reviewed and, if necessary, updated every five years. These updates are necessary to ensure infrastructure plans are in line with current growth projections, and the impact fees are in line with current construction costs. Arizona Revised Statutes (A.R.S.) 9-463.05 require cities to update Land Use Assumptions (LUAs) and Infrastructure Improvements Plans (IIPs) through a series of public hearings and Council actions prior to adopting or amending development impact fees. A notice of the City's intention to assess development impact fees was posted to the City's website on December 19, 2024, following the requisite public hearing and Council approval of updated LUAs and IIPs. A public hearing on the proposed development impact fee update was conducted on February 19, 2025. The final step of the adoption process is approval of the proposed development impact fees; that are specified in the Development Impact Fee Report, dated February 11, 2025 and attached as Attachment A.
Next Steps
Once approved, A.R.S. requires that the new fees do not become effective until 75 days after City Council action. The effective date is scheduled for June 23rd, 2025. A.R.S. also contains grandfathering requirements that do not allow for new fees to be assessed on some projects until two years after the effective date of the Ordinance.
Location
Council District: Citywide
Previous Council Action
A public hearing on proposed Land Use Assumptions and Infrastructure Improvements Plans was held on November 13, 2024. City Council approved Land Use Assumptions and Infrastructure Improvements Plans on December 18, 2024. A public hearing on the Proposed Development Impact Fees Update was held on February 19, 2025.
Concurrence
This resolution is submitted concurrently with an Ordinance amending Phoenix City Code Chapter 29, Development Impact Fees (DOF) and Chapter 30, Water Resources Acquisition Fees to update the impact fee schedules based on approved IIPs and provide additional clarifications and clean-up. And, with an Ordinance amending Phoenix City Code Chapters 19A, 19B, 19C, and 19D related to Water and Sewer Development Occupational Fees (DOF), to limit the imposition of DOF to new service connections that are not subject to Water and Wastewater Treatment Impact Fees pursuant to the proposed Chapter 29 amendments.
Department
Responsible Department
This item is submitted by Deputy City Manager Alan Stephenson and the Planning and Development Department.