Park Impact Fees 2017

  • What are Park Impact Fees?

    Park impact fees are one time charges collected by the city of Redmond from new commercial and residential developments. These fees help the City pay for public parks, trails, and recreation capital projects that are needed to accommodate growth.

    The total amount of impact fees collected must be reasonably associated with the portion of the capital projects related to growth. The city must have additional funding sources to contribute to capital projects and may not rely solely on impact fees to fund the improvements.

  • How can the fees be used?

    Park impact fees may only be imposed for projects in the city’s public capital facilities plan for parks, which in Redmond is called the Park, Arts, Recreation, Culture and Conservation (PARCC) Plan, which is adopted by amendment to the City’s Comprehensive Plan. Eligible projects in that plan are designed to provide service to the community at large, are reasonably related to the new development, and will benefit the new development. Impact fees may not be used to pay for private facilities that solely benefit the development or to correct existing deficiencies in public infrastructure.

    The money must be earmarked and retained in special interest-bearing accounts and annual reporting on each account including revenues and improvements financed with the revenue is required. An annual report is prepared at year end for the Mayor and City Council review.

  • What regulations address the collection and use of Park Impact Fees?

    Washington State Law RCW 82.02.050 - .110 and WAC 365-196-850 authorize counties, cities, and towns planning under the Growth Management Act to impose impact fees for publicly owned parks, open space, and recreation facilities.

    In addition, the City of Redmond Municipal Code 3.10.010 includes more specificity on how the City collects park impact fees, including the calculation, fee table, indexing for inflation, credits, timing of fee collection, appeals and more.

  • Why is the update to the Park Impact Fee methodology necessary?

    The City Council reviews the park impact fees on a periodic basis to ensure that they reflect the current capital improvement program of the City and the current cost of constructing park system improvements related to growth. The last update to the Park Impact Fee methodology was in 2006. City Council is currently reviewing the Draft Final PARCC Plan for 2017-2030, which contains an updated capital improvement program for park, trails and recreation facilities. This new plan would be the basis for updating the current 2006 methodology.

  • How are impact fees calculated?

    The calculation accounts for how often the new people in Redmond will use parks. Then each impact fee category is assessed a portion of the total cost of the proposed public capital improvements attributable to growth through 2030. The categories include:

        a. Single family residential
        b. Multi-family
        c. Residential suite
        d. Office
        e. Retail
        f. Industrial

    The projected growth of residents and workers for each of these categories is based on the City of Redmond’s Comprehensive Plan.

    Park Impact Fees - Calculations
  • What are the proposed changes?

    The changes made to the fee calculation were the updated planned growth numbers and the total cost of park capital projects allocated to growth – or the “cost allocation”. The primary changes to the cost allocation are described in the following table.

    Item 2006 2017
    Level of Service Based acres or miles of trails per 1,000 residents. Updated based on community recommendations that showed a priority for having parks and trails within walking distance and with the amenities they desire most such as play features and sports and fitness amenities.
    Cost Estimation A cost per acre or mile – unit rate Specific projects were cost estimated using the standard city cost estimating tool, which includes soft costs, hard costs, contingency and escalation.
    Projects attributed to growth All new parks and trails were included Only projects that add capacity to address growth were included.
    Proportion of project cost attributed to growth 80% 30%, based on population and employment growth projections between 2015 and 2030.
    Total Impact Fee Cost Allocation $30M of $37.7M in total projects $51M of $176M in total projects
  • What is the effect of these changes?

    Based on the projected growth rates, park impact fees would increase the most for single family developments; however the majority of the cost allocation is with multi-family developments, as shown in the following table.

    Category Existing Fee per 2016 Inflated since 2006 Proposed 2017 Fee Percent Change Allocation of total impact fee cost Total Cost Allocation
    Single-family $3,502 $4,585 23.6% 19.4% $9,886,254
    Multi-family $2,816 $3,183 11.6% 54.8% $27,900,915
    Residential Suite $1,408 $1,730 18.6% 1.3% $664,371
    Office $1,192 $1,242 4.0% 23.3% $11,883,181
    Retail $523 $551 5.1% 0.6% $306,924
    Industrial $528 $559 5.4% 0.5% $234,138
  • How do these proposed Park Impact Fees compare to other cities?

    These rates are comparable to neighboring cities. For residential, Redmond would remain in the middle range of other eastside cities. For non-residential, office is mid-range, while retail and industrial are at the low end.

    Category
    Redmond Proposed 2017 Fee
    Issaquah
    Bothell
    Sammamish
    Kirkland
    Woodinville
    Single-family $4,585 $5,977 $1,557 to $4,009 $6,739 $4,047 $3,175
    Multi-family $3,183 $5,148 $1,557 to $4,009 $4,362 $3,075 $3,175
    Single Resident Occupant $1,730
    Office $1,242 $1,320 $1,090
    Retail $551 $5,220 $1,090
    Industrial $559 $1,510 $1,090

Tell us what you think

  • Fill out the survey in the right column
  • Send us a comment
  • Request time to meet staff during office hours
  • Attend a meeting on April 19, 2017 from 5:30 to 6:30 PM at Redmond City Hall
  • View a helpful PDF presentation on this topic
  • For more information, contact Carolyn Hope, Project Manager at 425-556-2313

Schedule

March

Preview with Parks and Trails Commission and City Council

Public Engagement:
1. One Redmond
2. Business Fee & Tax Advisory

April

Public Engagement:
1. Developer Outreach
2. Public Outreach

May

Final Proposal

May-June

Commission Recommendation and City Council Adoption