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Proposed Traffic Impact Fee (TIF) HBA Developer Meeting April 28, 2015 1 ---PAGE BREAK--- Purpose of Traffic Impact Fees • Traffic Impact Fees (TIF) are an important piece of the funding matrix needed for growth and continued economic vitality • Per RCW 82.02.050, a TIF program is intended to: • Ensure that adequate facilities are available to serve new growth • Establish standards by which new growth and development pay a proportionate share of the cost of the new facilities needed to serve new growth and development • Ensure that impact fees are imposed through established procedures and criteria so that specific developments do not pay arbitrary fees or duplicative fees for the same project 2 ---PAGE BREAK--- TIF Program Requirements • TIF only applies to projects or portions of projects that provide new capacity for growth. • TIF cannot pay for existing deficiencies • Existing trips are grandfathered. TIF only applicable to new trips. • Potential state or federal funding must be accounted for and backed out of project costs. 3 ---PAGE BREAK--- Benefits of a TIF Program • Predictable. Easy for developer to determine costs up front. • Simple to calculate and administer, reducing the complexity and time required by the existing process • All developments treated consistently and equitably • Allows for fees to be paid on back end of development process • Source of matching funds for grants • Flexibility to use funds on TIF eligible projects in the right place at the right time. • Consistent with surrounding jurisdictions. 4 ---PAGE BREAK--- Basis for Proposed Kennewick TIF • The Transpo Group developed the basis for a 20‐year TIF program as part of their work on the 2008 Transportation System Plan • The current proposal is based on the remaining 10 years of the original 20‐year planning horizon. Originally analyzed for 2005‐2025 • The 2008 TSP project list was updated by removing completed projects and adding new projects consistent with the CIP and updating the project cost estimates. • Remaining new trips for the period were estimated based on building permit data • The Maximum Allowable TIF fee is calculated by dividing eligible project costs by the number of new trips. 5 ---PAGE BREAK--- 6 Project Type Project Name Project Limits 2015 Total Cost ($1,000's) % Cost Included in Impact Fee Impact Fee Cost ($1,000's) Partially Funded by Impact Fee New Roadway Construction Ridgeline Drive Clodfelter Road to Center Parkway $5,700 0% $0 N Ridgeline Drive Center Parkway to Sherman Street $3,630 0% $0 N Ridgeline Drive Sherman Street to Southridge Blvd. $2,240 0% $0 N Hildebrand Boulevard City limits (Center Parkway) west to Sherman Street $4,310 83% $3,577 Y Hildebrand Boulevard Sherman Street to Grant Street $2,050 83% $1,702 Y Montana Street Ridgeline Drive to 10th Avenue $6,690 0% $0 N Center Parkway Interstate I-82 Ramps $8,710 0% $0 N Center Parkway UGA Expansion Area to Ridgeline Drive $11,315 0% $0 N Center Parkway Ridgeline Drive to Hildebrand Boulevard $2,830 0% $0 N Bofer Canyon/Zintel Way Approx. 1500' & 1500' north of Ridgeline Drive $2,405 40% $962 Y Morain Street 19th Avenue to 10th Avenue $2,425 0% $0 N Roadway Reconstruction/ Widening 45th Avenue Ely Street to Olympia Street $4,035 0% $0 N 27th Avenue Dayton Street to Washington Street $1,500 0% $0 N 10th Avenue Clearwater Avenue to Steptoe Street $2,555 0% $0 N 10th Avenue Montana Street to Columbia Center Boulevard $2,745 0% $0 N Kennewick Avenue Union Street to Morain Street $2,236 0% $0 N Metaline Avenue Kellogg Street to Edison Street $1,562 0.0% $0 N Canal Drive US395 (overpass) to Fruitland Street $6,455 0% $0 N Clodfelter Road Ridgeline Drive to 10th Avenue $1,335 0% $0 N Columbia Center Boulevard Deschutes Avenue to Quinault Avenue $6,660 65% $4,329 Y Sherman Street Ridgeline Drive to Hildebrand Boulevard $2,627 0% $0 N Vancouver Street 45th Avenue to 36th Avenue $2,135 0% $0 N Cascade Street/27th Avenue 45th Avenue to 27th Avenue/Washington $6,370 0% $0 N Intersection Improvements 27th Avenue/ Southridge Boulevard Intersection $1,131 0% $0 N 27th Avenue/Olson Street Intersection $360 0% $0 N 10th Avenue / Kellogg Street Intersection $520 0% $0 N 10th Avenue / Union Street Intersection $240 0% $0 N 10th Avenue / Morain Street Intersection $710 0% $0 N 10th Avenue/Rainier Street Intersection $360 0% $0 N 10th Avenue / SR 397 Intersection $600 0% $0 N Kennewick Avenue/ Yelm Street Intersection $175 0% $0 N Clearwater Avenue / Utah Street Intersection $209 0% $0 N Clearwater Avenue / Kellogg Street Intersection $1,025 40% $410 Y Clearwater Avenue / Arthur Street Intersection $360 0% $0 N Clearwater Avenue / Union Street Intersection $1,713 41% $702 Y Clearwater Avenue / Johnson Intersection $1,195 0% $0 N Deschutes Avenue / Center Parkway Intersection $400 0% $0 N Canal Drive / Edison Street Intersection $1,425 0% $0 N Columbia Drive/ Fruitland Street Intersection $714 0% $0 N Columbia Drive/Washington Street Intersection $640 0% $0 N Steptoe Street/Gage Boulevard Intersection $800 0% $0 N Columbia Center Boulevard / Clearwater Avenue Intersection $420 0% $0 N Edison Street / Metaline Avenue Intersection $300 0% $0 N Edison Street Railroad Grade Separation Intersection $37,500 0% $0 N US 395 / Ridgeline Drive Intersection $27,500 23.6% $6,490 Y US 395 / Hildebrand Boulevard Intersection $1,435 40% $574 Y US 395 / 10th Avenue Intersection $2,100 0% $0 N US 395 / Clearwater Avenue Intersection $2,695 0% $0 N US 395 / Yelm Street Intersection $1,200 0% $0 N Downtown Railroad Grade Separation Intersection $32,500 0% $0 N US 397/Gum Street Intersection $750 0% $0 N Citywide Intersection & Corridor Safety Program Intersections $550 0% $0 N Citywide Traffic Signal System Upgrade/Retiming Intersections - Citywide $600 0% $0 N Total of All Project Costs: $212,647 Total in TIF: $18,746 % in TIF= 8.8% Total for TIF Eligible Projects: $47,098 Total in TIF: $18,746 % in TIF=39.8% ---PAGE BREAK--- 7 Project Map TIF Eligible Projects Projects not in TIF ---PAGE BREAK--- TIF Eligible Projects Project Name Project Limits 2015 Total Cost ($1,000's) % Cost Included in Impact Fee Impact Fee Cost ($1,000's) Hildebrand Boulevard City limits (Center Parkway) west to Sherman Street $4,310 83% $3,577 Hildebrand Boulevard Sherman Street to Grant Street $2,050 83% $1,702 Bofer Canyon/Zintel Way Approx. 1500' & 1500' north of Ridgeline Drive $2,405 40% $962 Columbia Center Boulevard Deschutes Avenue to Quinault Avenue $6,660 65% $4,329 Clearwater Avenue / Kellogg Street Intersection $1,025 40% $410 Clearwater Avenue / Union Street Intersection $1,713 41% $702 US 395 / Ridgeline Drive Intersection $27,500 23.6% $6,490 US 395 / Hildebrand Boulevard Intersection $1,435 40% $574 Totals for TIF Eligible Projects $47,098 39.8% $18,746 8 • Total of $47.1 million in project costs for TIF eligible projects • Approximately 40% of those projects , or $18.75 million can be included in the TIF calculation based on supporting new growth ---PAGE BREAK--- Results of Updated Information • TIF Eligible Projects Comprise $47.1 Million of which $18.75 million (TIF Eligible Project Costs) is included in the TIF Calculation • The Remaining Growth Trips (New PM Peak Hour Trips) in the 10‐year time horizon are 6,366 trips . • Maximum Allowable PM Vehicle Trip Fee ൌ ௦௧௦ • Maximum Allowable PM Vehicle Trip Fee ൌ ൌ$2,945/ݐݎ݅ • Most cities select a TIF fee that is less than the Maximum Allowable 9 ---PAGE BREAK--- Traffic Impact Fee Comparisons • National Average is $3,228/PM Peak Hour Trip • Western Washington Average is $2,811 per PM Peak Hour Trip • Fees Range from $515 to $8,462 • Eastern Washington Average is $1,524 per PM Peak Hour Trip • Fees Range from $475 to $4,830 • Tri‐Cities Average is $1,109 per PM Peak Hour Trip • Richland – Zone 1 = $1,534, Zone 2 = $475 • Pasco – $709 • West Richland ‐ $1,358 • Proposal is to set the City of Kennewick Traffic Impact Fee at $900 to be comparable and competitive with Local Area Fees. 10 ---PAGE BREAK--- TIF Comparisons for Various Land Uses Traffic Impact Fee/Trip Proposed 900 $ Land Use Type Size Units Pass‐By Trip Reduction Applied PM Peak Hour Trips Total Impact Fee Single Family 25 Dwelling Units 0% 25.00 22,500 $ Specialty Retail Center 8,500 Sq. Ft. GFA 34% 15.20 13,680 $ Fast Food w/ Drive‐Thru 2,600 Sq. Ft. GFA 50% 42.45 38,205 $ Medical‐Dental Office 10,000 Sq. Ft. GFA 0% 35.70 32,130 $ Note: Uses ITE Trip Generation Manual, 9th Edition 11 ---PAGE BREAK--- Local Area Fees Comparison for Various Land Uses Kennewick Proposed All City Richland Zone 1 South Richland Richland Zone 2 Queensgate Pasco West of 20th West Richland All City 900.00 $ $ 1,533.56 $ 474.57 $ 709.00 $ 1,345.00 Land Use Type Size Kennewick Proposed Richland Zone 1 Richland Zone 2 Pasco West Richland Single Family 25 22,500 $ 38,339 $ 11,864 $ 17,725 $ 33,961 $ Specialty Retail Center 8,500 13,680 $ 24,690 $ 7,641 $ 9,719 $ 10,358 $ Fast Food w/ Drive‐Thru 2,600 38,205 $ 65,176 $ 20,169 $ 16,716 $ 24,001 $ Medical‐Dental Office 10,000 32,130 $ 55,208 $ 17,085 $ 8,544 $ 36,920 $ 106,515 $ 183,413 $ 56,759 $ 52,704 $ 105,240 $ Impact Fee per PM Peak Hour Trip (PM Peak Hour of Adjacent Street) Totals 12 ---PAGE BREAK--- Proposed TIF Schedule • IOC Meeting – April 14th, 2015 • Council Workshop – April 21st, 2015 • HBA/Developer Meeting – April 28th, 2015 • City Council Meeting – May 19th, 2015 13 ---PAGE BREAK--- Questions? 14