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TC Res. No. 2010-03 Readopting a temporary fee reduction and waiver program for zoning,design review and bulding permit applications collected by the town of avonTOWN OF AVON RESOLUTION NO. 10 -03 SERIES OF 2010 A RESOLUTION READOPTING A TEMPORARY FEE REDUCTION AND WAIVER PROGRAM FOR ZONING, DESIGN REVIEW AND BUILDING PERMIT APPLICATIONS COLLECTED BY THE TOWN OF AVON WHEREAS, the Town of Avon experienced a significant reduction in development activity and related fees collected by the Community Development Department in the 2009 calendar year; WHEREAS, the Avon Town Council held a public meeting on July 28, 2009 to discuss the merits of a permit fee reduction or waiver policy in an effort to stimulate development and building activity and found that the temporary waiver of zoning and design review fees and certain building permit fees would encourage development and building activities and will thereby promote the economic recovery and health of the Avon community; WHEREAS, the Avon Town Council held a public meeting on January 12, 2010 to consider the results of the fee reduction and waiver program initiated via Resolution No. 09 -25 on August 11, 2009; and, after said consideration directed staff to bring forward this Resolution to officially readopt the fee reduction and waiver program discussed herein, and; WHEREAS, the Town Council may enact and update fee schedules by resolution to respond to changing market conditions for application processes as set forth in the Avon Municipal Code Section 15.08.050(a) (Building), Title 17 (Zoning) of the Avon Municipal Code and in the Town of Avon Residential, Commercial, and Industrial Design Review Guidelines. NOW, THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF AVON, COLORADO: The Town Council hereby adopts the following Temporary Fee Reduction and Fee Waiver Schedule as set forth and incorporated herein as "Exhibit A to Resolution 10 -03" reducing or waiving fees related to the processing of zoning, design review and building permit applications. ACCEPTED, APPROVED AND ADOPTED ON JANUARY 26, 2010. NU- h(%Nti, N C UNCIL /moo`'. •'v ATTEST: onald C. Wolfe, Mayo �� By Pa McKe wn Clerk q0 L 6"' EXHIBIT A to RESOLUTION 10 -03 Town of Avon Community Development Department Temporary Fee Reduction and Fee Waiver Schedule Adopted January 26, 2010 The following fees shall be temporarily eliminated or reduced until May 12, 2010, as described below and subject to the conditions and exclusions stated in this Temporary Fee Reduction and Fee Waiver Schedule. The fees established by Resolution No. 06 -01 for Zoning review, Design review and Building Permit review shall be automatically reinstated and effective on May 12, 2010, and thereafter, unless and until further modified by resolution of the Avon Town Council. Temporarily Reduced or Waived fees: (1) 100% of all Zoning fees are waived until May 12, 2010. (2) 100% of all Design Review fees are waived until May 12, 2010. (3) 100% of all Building Permit fees for interior remodels, replacement of exterior stucco and/or siding, and roof covering repair and replacement are waived until May 12, 2010. (4) 10% for all other Building Permit fee are waived until May 12, 2010. Conditions and Exclusions: (a) All plan submittals must be deemed complete by the Community Development Department on or prior to 5:00 p.m. May 12, 2010 in order to qualify for any fee reduction or fee waiver. Plan submittals which are complete, eligible and received timely by the Town of Avon shall be eligible for the fee waiver or fee reduction throughout the zoning and/or design review process or throughout the period of the issued building permit in accordance with procedures and regulations adopted by the Town of Avon and as may be amended from time to time by the Town of Avon. (b) The temporary fee reduction or fee waiver shall not apply to any outsourced plan check fees, water tap fees, the Eagle County Fire Protection District Impact Fee, legal fees, any other impact fees imposed by the Town of Avon, and any other direct costs borne by the Town of Avon in reviewing applications for Zoning, Design Review and Building Permits. (c) In all instances, the fee waiver must be approved by both the Chief Building Official and the Community Development Director. • Memo r� • To: Thru: Legal Review: Approved by: From: Date: Re: Honorable Mayor and Town Council Initials Larry Brooks, Town Manager Eric Heil, Town Attorney 'It Sally Vecchio, Asst Town Manager, Com Dev Matt Gennett, AICP, Planning Manager January 21, 2010 Resolution No. 10 -03, Series of 2010 Summary: Staff recommends the Council DENY Resolution No. 10 -03, Series of 2010, citing the findings contained herein which indicate the fee waiver program adopted by Resolution No. 09 -25, Series of 2009, did not produce the stated, intended results. Previous Council Action: On January 12, 2010, the Town Council directed staff to bring forward a Resolution to effectively extend the fee waiver program citing that the reduction and waiving of fees normally collected by the Community Development Department achieved the intended effect of stimulating development activity in the Town of Avon; and, that doing so would constitute a symbolic gesture to the citizenry. On July 28", 2009 the Town Council approved Resolution No. 09 -25, establishing a temporary fee reduction and waiver program as follows: 1. 100% of all Zoning fees 2. 100% of all Design Review fees 3. 100% of all Building Permit fees for interior remodels, replacement of exterior stucco and /or siding, and roof covering repair and replacement 4. 10% for all other Building Permit fees Background: The waiver program was intended to jump start a lagging local construction industry and related businesses. The fee waiver program was initiated via Resolution No. 09 -25 on August 1, 2009 and is set to expire on February 12, 2010. Discussion: After reviewing the construction activity indicators for 2009 (Tables 1.1, 1.2 and 1.3, below), it is apparent that the fee waiver program did not encourage new construction activity that would have otherwise not occurred without the program. Overall revenues from permit fees fell 24% between 2008 and 2009; and building permits were down 58% during the same period. Building additions and remodels represent the majority of building permits issued in 2009. Only four permits were issued for new residential construction, and no new commercial construction occurred in 2009. t Financial Implications: • Thus far in January 2010, $2,100 in fees has been waived. Between January 1, 2009 and May 1, 2009, our fees totaled over $15,000, which suggests that even if local development activity remains flat, the Community Development Department will be unable to collect a substantial amount of revenue we would otherwise provide to the Town of Avon. Permit Revenues 2006 —2009 Table 1.1 2009 Building Pen-nit Revenue By Type Table 1.2 Building Addition /Remodel Zoos 2007 2008 Revenues Received Waived Revenues Percent Change $600 New Residential Construction Valuation $11,165,780 $3,521,000 Jan -Au 2009 (Aug-Dec 2009 2008 -09 4 (73.7% Total Permits Issued 143 60 (58 %) Contractor's License $17,605.00 $18,478.00 $15,109.00 $5,205.00 0 (65.5 %) Fees Pe Building $587,775.61 $282,928.52 $181.467.35 $43,097.62 $25,849.37 (62 %) Plan Check $598,828.91 $231,438.38 $88,966.81 $12,609.79 0 (85 %) Subdivision Review Fees $111,750.74 $48,347.51 $9,874.39 $4,627.50 $877.50 (44 %) Design Review Fees $48,965.00 $40,400.65 $34,585.00 $12,925.00 $7,886.17 (39 %) Totals $1,366,931.26 $623,600.06 $150,725.017 $78,464.91 $34,613.04 24% 2009 Building Pen-nit Revenue By Type Table 1.2 Building Addition /Remodel $25,803 New Building $14,418 Mechanical $1,430 Plumbing $600 Building Permits Processed 2008-2009 Table 1.3 • Page 2 • • 2008 2009 Percent Change New Commercial Construction Valuation $2,525,749 $o (100 New Residential Construction Valuation $11,165,780 $3,521,000 (68.4% New Residential Permits Issued 15 4 (73.7% Total Permits Issued 143 60 (58 %) • Page 2 • • • Recommendation: Citing the findings detailed above, which indicate the fee waiver program did not produce the intended result of stimulating or incentivizing development activity in the Town of Avon, staff recommends the Council DENY Resolution 10 -03, Series of 2010, as written and attached hereto. • Alternatives: Council may also APPROVE Resolution No. 10 -03, Series of 2010; TABLE the subject item with further direction to staff; or, take no action on the subject item. Proposed Motion: "I move to DENY Resolution No. 10 -03, Series of 2010, with the findings provided by staff in their memorandum to council dated January 21, 2010." Town Manager Comments: , o �/�� ♦ /i�� /��/�Y/ I ' - • Page 3 TOWN OF AVON • RESOLUTION NO. 10 -03 SERIES OF 2010 A RESOLUTION READOPTING A TEMPORARY FEE REDUCTION AND WAIVER PROGRAM FOR ZONING, DESIGN REVIEW AND BUILDING PERMIT APPLICATIONS COLLECTED BY THE TOWN OF AVON WHEREAS, the Town of Avon experienced a significant reduction in development activity and related fees collected by the Community Development Department in the 2009 calendar year; WHEREAS, the Avon Town Council held a public meeting on July 28, 2009 to discuss the merits of a permit fee reduction or waiver policy in an effort to stimulate development and building activity and found that the temporary waiver of zoning and design review fees and certain building permit fees would encourage development and building activities and will thereby promote the economic recovery and health of the Avon community; WHEREAS, the Avon Town Council held a public meeting on January 12, 2010 to consider the results of the fee reduction and waiver program initiated via Resolution No. 09 -25 on August 11, 2009; and, after said consideration directed staff to bring forward this Resolution to officially readopt the fee reduction and waiver program discussed herein, and; WHEREAS, the Town Council may enact and update fee schedules by resolution to respond • to changing market conditions for application processes as set forth in the Avon Municipal Code Section 15.08.050(a) (Building), Title 17 (Zoning) of the Avon Municipal Code and in the Town of Avon Residential, Commercial and Industrial Design Review Guidelines. NOW, THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF AVON, COLORADO: The Town Council hereby adopts the following Temporary Fee Reduction and Fee Waiver Schedule as set forth and incorporated herein as "Exhibit A to Resolution 10 -03" reducing or waiving fees related to the processing of zoning, design review and building permit applications. ACCEPTED, APPROVED AND ADOPTED ON JANUARY 26, 2010. TOWN COUNCIL ATTEST: By: Ronald C. Wolfe, Mayor By: Patty McKenny, Town Clerk • EXHIBIT A to RESOLUTION 10 -03 Town of Avon Community Development Department Temporary Fee Reduction and Fee Waiver Schedule Adopted January 26, 2010 The following fees shall be temporarily eliminated or reduced until May 12, 2010, as described below and subject to the conditions and exclusions stated in this Temporary Fee Reduction and Fee Waiver Schedule. The fees established by Resolution No. 06 -01 for Zoning review, Design review and Building Permit review shall be automatically reinstated and effective on May 12, 2010, and thereafter, unless and until further modified by resolution of the Avon Town Council. Temporarily Reduced or Waived fees: (1) 100% of all Zoning fees are waived until May 12, 2010. (2) 100% of all Design Review fees are waived until May 12, 2010. (3) 100% of all Building Permit fees for interior remodels, replacement of exterior stucco and /or siding, and roof covering repair and replacement are waived until May 12, 2010. (4) 10% for all other Building Permit fee are waived until May 12, 2010. • Conditions and Exclusions: (a) All plan submittals must be deemed complete by the Community Development Department on or prior to 5:00 p.m. May 12, 2010 in order to qualify for any fee reduction or fee waiver. Plan submittals which are complete, eligible and received timely by the Town of Avon shall be eligible for the fee waiver or fee reduction throughout the zoning and/or design review process or throughout the period of the issued building permit in accordance with procedures and regulations adopted by the Town of Avon and as may be amended from time to time by the Town of Avon. (b) The temporary fee reduction or fee waiver shall not apply to any outsourced plan check fees, water tap fees, the Eagle County Fire Protection District Impact Fee, legal fees, any other impact fees imposed by the Town of Avon, and any other direct costs borne by the Town of Avon in reviewing applications for Zoning, Design Review and Building Permits. (c) In all instances, the fee waiver must be approved by both the Chief Building Official and the Community Development Director. •