HomeMy WebLinkAbout4726 Ordinance - Amending PMC Section 3.40.070 Time of Payment of Impact FeesOrdinance – Amending PMC 3.40.070 - 1
ORDINANCE NO. 4726
AN ORDINANCE OF THE CITY OF PASCO, WASHINGTON,
AMENDING PASCO MUNICIPAL CODE SECTION 3.40.070 “TIME OF
PAYMENT OF IMPACT FEE”.
WHEREAS, the Washington State Legislature adopted the Growth Management Act,
which authorizes the collection of impact fees on development activity to provide necessary
public facilities that serve new growth and development; and
WHEREAS, the Washington State Legislature adopted ESB 5293 in 2015 for counties,
cities, and towns that collect impact fees to adopt a fee deferral process single-family detached
and attached residential construction, which allows applicants to pay impact fees near the end of
the construction process rather than at the beginning; and
WHEREAS, the Pasco City Council adopted Ordinance No 3719 in March 2005
establishing impact fees, including a process for deferring impact fees for single-family
residences; and
WHEREAS, the Pasco City Council adopted Ordinance No. 4688 in November 2023
updating the deferral process for single-family detached and attached residential construction;
and
WHEREAS, the City has decided to expand the deferral process to encompass
commercial and industrial construction as it is expected to stimulate local economic growth.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PASCO,
WASHINGTON DO ORDAIN AS FOLLOWS:
Section 1. That Section 3.40.070 entitled “Time of Payment of Impact Fee” of the
Pasco Municipal Code is hereby amended and shall read as follows:
3.40.070 Time of Payment of Impact Fee.
(1) All developers shall pay an impact fee in accordance with the provisions of this
chapter at the time that the applicable development permit is available for
issuance.
The impact fee as initially calculated, after issuance of a development permit,
may be recalculated at the time of payment if the development is modified or
conditioned in such a way as to alter the trip generation rate for the
development.
Ordinance – Amending PMC 3.40.070 - 2
No development permit shall be issued until the impact fee is paid, except that
when developers of residential subdivisions, short plats, or planned unit
developments may defer payment until building permits are issued for the lots
within the subdivision, short plat, or planned unit development.
A developer may obtain a preliminary determination of the impact fee before
application for a development permit upon providing the Director of
Community and Economic Development with the information necessary for
processing the application.
Impact fees may be paid under protest in order to obtain a permit or other
approval of development activity.
(2) Deferral of Impact Fees. For each residence construction permit for which any
impact fee deferral is applied for, an administrative fee set in Chapter 3.35 PMC
must simultaneously be paid to the City due to the increased burden placed on
City staff for processing, recording and monitoring such deferrals.
(a) A separate application must be submitted for each residence being
constructed construction permit. Each applicant, in accordance with his or
her contractor registration number or other unique identification number, is
entitled to annually receive deferrals for twenty (20) construction building
permits. The Community & Economic Development Director is authorized
to grant additional deferrals beyond the standard entitlement of twenty (20).
If the City at any time collects impact fees on behalf of one or more school
districts for which the collection of impact fees could be delayed, the City
must consult with the district or districts about the additional deferrals. The
City must give additional weight to recommendations of each applicable
school district regarding the number of deferrals. If the City disagrees with
the recommendations of one or more school districts, the City must provide
the district or districts with a written rationale for its decision.
(b) The period of deferral expires at the earliest of:
(i) The time of final inspection by the City;
(ii) The time of issuance of a certificate of occupancy by the City;
(iii) The time of closing or the first transfer of the property occurring
after the issuance of the applicable building permit; or
(iv) Eighteen months after the building permit is issued by the City.
(c) Final inspection and a certificate of occupancy will not be conducted or
Ordinance – Amending PMC 3.40.070 - 3
issued until payment in full of the impact fees is made. For the first transfer
of the property, the impact fees shall be paid at closing if they have not been
previously paid. Unless an agreement to the contrary is reached between the
buyer and the seller, the payment of impact fees due at closing of a sale
must be made from the seller’s proceeds. In the absence of an agreement to
the contrary, the seller bears strict liability for the payment of the impact
fees.
(d) The applicant for impact fee deferral must grant and record in favor of the
City an impact fee lien in the amount of the deferred impact fee. The lien
must be in a form signed, dated and approved by the City Attorney, and
signed by all owners of the property and persons or entities holding any
interest in the property, with all signatures acknowledged as required for a
deed, and recorded among the appropriate land records of Franklin County.
Proof of such recording shall be submitted to the City before a building
permit may be issued. The lien must specify that it is binding on all
successors in title after the recordation. The lien may specify that it is
subordinate to one mortgage for the purpose of construction upon the same
real property granted by the applicant for impact fee deferral. A mortgage,
deed of trust or other financing mechanism shall be limited to the property
upon which construction of one single-family residence will occur. A lien
not paid when due shall bear interest at the statutory rate. A lien shall
become due at the expiration of the deferral date.
(e) If impact fees are not paid in accordance with this section, the City may
institute foreclosure proceedings in accordance with Chapter 61.12 RCW.
If the City of Pasco does not institute foreclosure proceedings for unpaid
school impact fees within 45 days after receiving notice from a school
district requesting that it do so, the district may institute foreclosure
proceedings with respect to the unpaid school impact fees.
(f) After full payment of impact fees, and upon written request of the person
paying said fees containing the name and address of the requester together
with a copy of a proposed lien release form, the City, upon approval by the
City Attorney, shall sign a lien release and deliver it to the person paying
said fee either in person or by first-class mail. The property owner at the
time of the release, at his or her expense, is responsible for recording the
lien release.
(g) An annual report shall be prepared by the Department of Community and
Economic Development Department evaluating and summarizing the
impact(s) of the deferral program.
Ordinance – Amending PMC 3.40.070 - 4
[Ord. 4688 § 1, 2023; Ord. 4307, 2016; Ord. 3719 § 1, 2005; Code 1970 §
3.132.060.]
Section 2. Severability. If any section, subsection, sentence, clause, phrase or word
of this Ordinance should be held to the invalid or unconstitutional by a court of competent
jurisdiction, such invalidity or unconstitutionality thereof shall not affect the validity or
constitutionality of any other section, subsection, sentence, clause phrase or word of this
Ordinance.
Section 3. Corrections. Upon approval by the city attorney, the city clerk or the code
reviser are authorized to make necessary corrections to this Ordinance, including scrivener’s
errors or clerical mistakes; reference to other local, state, or federal laws, rules, or regulations; or
numbering or referencing of ordinances or their sections and subsections.
Section 4. Effective Date. This Ordinance shall take full force and effect five (5)
days after approval, passage and publication as required by law.
PASSED by the City Council of the City of Pasco, Washington, on this 16th day of
September, 2024.
_____________________________
Pete Serrano
Mayor
ATTEST: APPROVED AS TO FORM:
_____________________________ ___________________________
Debra Barham, MMC Kerr Ferguson Law, PLLC
City Clerk City Attorneys
Published: September 22, 2024