House File 189 HOUSE FILE BY JACOBS, KRAMER, MADDOX, and BOAL (COMPANION TO LSB 1830SS BY SHULL) Passed House, Date Passed Senate, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act authorizing cities to impose park impact fees. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 1830HH 80 4 av/cl/14 PAG LIN 1 1 Section 1. NEW SECTION. 364.26 PARK IMPACT FEE 1 2 ORDINANCES. 1 3 1. DEFINITIONS. As used in this section, unless the 1 4 context otherwise requires: 1 5 a. "Capital costs" means the costs of land acquisition for 1 6 and construction of parks and recreational facilities, 1 7 including costs of grading, seeding, planting, utility 1 8 connections, roads, and street frontage. "Capital costs" also 1 9 includes necessary and reasonable legal, engineering, design, 1 10 and other professional fees. "Capital costs" does not include 1 11 the costs of maintenance, repair, upkeep, salaries of public 1 12 employees, any other costs of operation, or the costs of 1 13 recreational or sports equipment or other implements used for 1 14 games or sports that are not permanently attached to land or 1 15 are not fixtures. 1 16 b. "Park impact fee" means the fee authorized in 1 17 subsection 2. 1 18 c. "Parks and recreational facilities" means parks, 1 19 playgrounds, sports fields, sports courts, shelters, 1 20 restrooms, other park and recreation buildings, walking 1 21 trails, bicycle trails, mixed=usage trails, green spaces, and 1 22 other similar facilities. 1 23 d. "Plan" means a parks and recreational facilities plan, 1 24 or a parks and recreational facilities plan incorporated into 1 25 a comprehensive plan, that is adopted by a city pursuant to 1 26 subsection 3. 1 27 e. "Residential real estate development" means the 1 28 development of new residential housing, including single or 1 29 multifamily dwellings, apartment complexes, manufactured home 1 30 communities, and mobile home parks. 1 31 2. PARK IMPACT FEE AUTHORIZED == USE == LIMITATIONS. 1 32 a. A city may adopt an ordinance imposing a park impact 1 33 fee to be paid by developers of residential real estate in the 1 34 city for the purpose of funding the capital costs of 1 35 accommodating the need for additional parks and recreational 2 1 facilities created by residential real estate development in 2 2 the city. A park impact fee shall only be adopted as an 2 3 ordinance after twenty days' notice published in accordance 2 4 with section 362.3, and a public hearing. A park impact fee 2 5 ordinance may be amended by a city as necessary to conform to 2 6 changes in the city's plan, to reflect changes in capital 2 7 costs, or to address other factors deemed relevant by the 2 8 city. 2 9 b. A park impact fee ordinance shall establish a schedule 2 10 for the imposition of park impact fees that reasonably 2 11 allocates park impact fees for the anticipated capital costs 2 12 identified in the city's plan. A park impact fee may be 2 13 collected at the time that residential real estate is 2 14 subdivided, when an application for a residential building 2 15 permit is made, or at both times. A park impact fee schedule 2 16 may be established for each area or zone designated in a 2 17 city's plan or for the entire city as a whole. A park impact 2 18 fee imposed and collected on residential real estate developed 2 19 in a particular area or zone shall be used only for capital 2 20 costs associated with construction of parks and recreational 2 21 facilities in that area or zone, consistent with the city's 2 22 plan. If no area or zone is designated, the fee must be used 2 23 only for capital costs associated with construction of parks 2 24 and recreational facilities located in an area reasonably 2 25 accessible to residents of the residential real estate 2 26 development area. 2 27 c. A park impact fee shall only be imposed pursuant to 2 28 this section upon the development of residential real estate. 2 29 d. A park impact fee shall be paid in full when due, but a 2 30 city may allow a full or partial credit against the amount of 2 31 a park impact fee due if a contribution of land or other 2 32 contribution is made that reduces the capital costs of 2 33 constructing the necessary parks and recreational facilities. 2 34 Notwithstanding the provisions of this section, a city may 2 35 waive a park impact fee on the development of residential real 3 1 estate that is defined as providing low=income or moderate= 3 2 income housing or affordable housing as defined by the city. 3 3 e. A park impact fee shall bear a rational relationship to 3 4 the capital costs associated with constructing the new parks 3 5 and recreational facilities identified in the city's plan. 3 6 f. Park impact fees collected by a city shall be collected 3 7 and accounted for in an account separate from the city's 3 8 general fund, and shall be used only for the payment of the 3 9 capital costs for which the fees were collected. 3 10 g. The adoption of a park impact fee ordinance does not 3 11 prohibit a city from using any other lawful means to finance 3 12 parks and recreational facilities, including the imposition of 3 13 other lawful fees or assessments. 3 14 h. An ordinance establishing a park impact fee shall 3 15 require the refund of any park impact fees collected that are 3 16 not used by the city within a reasonable time, not exceeding 3 17 eight years. 3 18 i. An ordinance establishing a park impact fee shall 3 19 provide a means for a person upon whom the fee is imposed to 3 20 appeal the imposition of or the calculation of the amount of 3 21 the fee. 3 22 j. This section does not prohibit a city from imposing 3 23 other fees for the development of real estate in the city that 3 24 are authorized by law. 3 25 k. This section does not limit any power or authority 3 26 previously granted to or presently exercised by a city. 3 27 3. PARKS AND RECREATIONAL FACILITIES PLAN. Prior to 3 28 adopting a park impact fee ordinance, a city shall adopt by 3 29 resolution a parks and recreational facilities plan, or 3 30 incorporate a parks and recreational facilities plan into the 3 31 city's comprehensive plan adopted under section 414.3. The 3 32 plan shall include an inventory of existing parks and 3 33 recreational facilities located in the city and make an 3 34 assessment of future needs for additional parks and 3 35 recreational facilities. The city may be divided into 4 1 designated areas or zones as the city deems appropriate. 4 2 EXPLANATION 4 3 This bill adds a new section to the Code that authorizes 4 4 cities to adopt an ordinance imposing a park impact fee to be 4 5 paid by developers of residential real estate in the city for 4 6 the purpose of funding the capital costs of constructing 4 7 additional parks and recreational facilities which are 4 8 reasonably accessible to the residential real estate being 4 9 developed. The bill defines "residential real estate 4 10 development" as the development of new residential housing 4 11 including single or multifamily dwellings, apartment 4 12 complexes, manufactured home communities, and mobile home 4 13 parks. 4 14 A city is authorized to impose park impact fees in a manner 4 15 that is consistent with the city's parks and recreational 4 16 facilities plan or a comprehensive city plan, keep the fees 4 17 collected in a separate account, and use the fees only for 4 18 payment of the capital costs for which the fees were 4 19 collected. 4 20 A park impact fee ordinance can only be adopted after 4 21 giving notice at least 20 days before a public hearing on the 4 22 proposed ordinance. 4 23 The adoption of a park impact fee ordinance does not 4 24 prevent a city from using any other lawful means to finance 4 25 parks and recreational facilities or from imposing other fees 4 26 for the development of real estate in the city and does not 4 27 limit any other power or authority previously granted or 4 28 presently exercised by a city. 4 29 The bill defines capital costs as the costs of land 4 30 acquisition for and construction of parks and recreational 4 31 facilities, including costs of grading, seeding, planting, 4 32 utility connections, roads, and street frontage, and necessary 4 33 and reasonable legal, engineering, design, and professional 4 34 fees. Capital costs do not include costs of maintenance, 4 35 repair, upkeep, salaries of public employees, costs of 5 1 operation, or costs of recreational or sports equipment or 5 2 other implements used for games or sports that are not 5 3 permanently attached to land or are not fixtures. 5 4 Parks and recreational facilities that can be funded by 5 5 park impact fees include parks, playgrounds, sports fields, 5 6 sports courts, shelters, restrooms, other park and recreation 5 7 buildings, walking trails, bicycle trails, mixed=usage trails, 5 8 green spaces, and other similar facilities. 5 9 LSB 1830HH 80 5 10 av/cl/14