Placement: Resolutions
Action Requested: Motion / Vote
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Resolution 26-R55, a Resolution Amending the Fee for Upland Preservation Mitigation as Provided in Section 157.06 of the Code of Ordinances; Requiring that the Fee be Analyzed by Staff Annually and if the Data Indicates a Change of Greater than 5% Staff Bring Forward a Proposal to Amend the Fee for Council to Consider (26-079).
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Submitted By: Mary Savage-Dunham, Director of Planning
Strategic Plan Link: The City's Goal to Enjoy Culture, Nature and Recreation.
Executive Summary (General Business): The fee for Upland Preservation Mitigation is collected by the Planning and Zoning Department in accordance with Section 157.06. Native Upland Habitat Protection when a development is not able to preserve upland habitat on site, or it is not practicable given the details of the project. This “Fee in Lieu of” preservation is deposited into the Conservation Fund. The current fee, established by Resolution 17-R27 is $25,005/acre and staff proposes that Council increase the fee to $85,500/acre and require that the fee be analyzed by staff annually and if the data indicates a change of greater than 5% staff shall bring forward a proposal to amend the fee for Council to consider.
Presentation Information: Staff will be available to answer questions
Staff Recommendation: Move that the Council approve the proposed resolution increasing the fee and requiring that the fee be analyzed by staff annually and if the data indicates a change of greater than 5% that staff bring forward a proposal to amend the fee for Council to consider.
Alternate Recommendations:
1. Move that the Council amend the recommendation and specify the desired increase to the fee and require that the fee be evaluated by staff annually and adjusted if the data indicates a change of greater than 5%.
2. Move that the Council table the item and provide direction to staff.
Background: The City has had a requirement for preservation of 25% of the native upland habitat since the adoption of the 1990 Comprehensive Plan. A fee in lieu of program was instituted in 1996 through Ordinance 96-90. The fee has been revised periodically through the years. In 2002, the upland mitigation fee was set at was 12,500 per acre. In 2003, the fee was increased to $17,600. In 2005 the fee was increased to $105,000. In 2007 the fee was established at $140,000 per acre with a provision to adjust the fee annually at a rate of 5% per year. In 2015 the fee was increased to $170,171. This ordinance included a provision that the fee increased by 5% per year for 10 years, and that the fee be re-evaluated in 2017. In 2017 the fee was reduced to the current $25,000 per acre.
Since 2017 the cost of undeveloped land has increased tremendously as has development activity. The amount of preserved open space and upland habitat lost to development is extensive as the fee to pay in lieu of preservation is low and the profit to be made from having more area to develop is more than the fee to preserve. At the January 2025 workshop meeting the Council was supportive of a proposed upland habitat preserve fee increase.
Issues/Analysis: The Planning Department worked with Finance to determine what a reasonable fee would be. To establish a reasonable cost per acre, the Finance Department analyzed recent land sales of parcels comparable to those the City would likely acquire for conservation purposes. Outliers were removed by excluding the highest and lowest comparable sales, and the remaining data was averaged, resulting in an estimated acquisition cost of $85,500 per acre.
This proposed increase is included in the backup material released to stakeholders June 17th in advance of the workshops on the PW/UD/PZ proposed fee schedules, posted on the City’s website, and was discussed at the hybrid stakeholder workshops on the fee increases on July 8th at 6:00 pm and July 16th at 2:00 pm.
Financial Information: N/A
Special Consideration: The Conservation Trust Fund can be used for acquisition and management of upland preserves, development of passive recreation facilities on such lands consistent with the permitted principal uses and structures of the Open Space Conservation Zoning District, and education pertaining to such lands.
Location of Project: N/A
Business Impact Statement: N/A
Attachments: 1. Resolution, 2. Staff Memorandum
NOTE: All of the listed items in the “Attachment” section above are in the custody of the City Clerk. Any item(s) not provided in City Council packets are available upon request from the City Clerk.
Internal Reference Number: Legal Services #26147-05
Legal Sufficiency Review:
Reviewed by Russell Ward, Deputy City Attorney. Approved as to Legal form and sufficiency by Richard Berrios, City Attorney.