The City of Ottawa encourages the development of each part of the City to its highest and best use for the maximum benefit of all citizens. The use of impact fees helps properly assess the costs of necessary infrastructure between the city at large and those specific properties which may derive a direct benefit. There are times that the use of impact fees is more desirable to the City than using the Kansas General Improvement and Assessment Law (K.S.A. 12-6a01 et seq.). However, the use of impact fees should be governed by a set policy adopted by the governing body to ensure consistency and fairness for all under the law.

(Ord. 4008-18)

A.    Applicant: the property owner or duly designated agent of the property owner, of land on which a building permit has been requested for development, or for final plat action.

B.    Building: any enclosed structure designed or intended for the support, enclosure, shelter or protection of persons or property.

C.    Building Permit: the City permit required for new building construction and/or additions to buildings pursuant to Chapter 6 of the Code of the City of Ottawa. The term “building permit” as used herein shall not be deemed to include permits required for remodeling, rehabilitation or other improvements to an existing structure, or to the rebuilding of a damaged structure, or to permits required for accessory uses.

D.    City: the City of Ottawa, Kansas.

E.    Development: the construction, erection, reconstruction or use of any principal building or structure which requires issuance of a building permit; and the final platting of land for development.

F.    Dwelling: any building, or portion thereof, designed exclusively for residential occupancy and containing one or more dwelling units.

G.    Impact Fee: a pro rata regulatory fee imposed on real property and required by the City as a condition of development approval and collected at final platting for residential development and at building permit issuance if land is already platted or no plat is necessary, to ensure that the necessary infrastructure improvements are or will be in place to accommodate the needs of such new development.

H.    Impact Fee Rate: the amount of the applicable impact fee per trip generated by new development in the Ottawa community.

I.     Comprehensive Plan: the official, adopted comprehensive development plan for the City of Ottawa, and amendments thereto, including the Major Street Plan.

J.     Nonresidential Development: all development other than residential development and public and quasi-public use, as herein defined.

K.    Property: a legally described parcel of land capable of development pursuant to applicable City ordinances and regulations.

L.    Property Owner: any person, group of persons, firm or firms, corporation or corporations, or any other entity having a proprietary interest in the land on which a building permit has been requested.

M.   Public and Quasi-Public Use: a development owned, operated or used by the City of Ottawa, Kansas; any political subdivision of the State of Kansas, including but not limited to school districts; the State of Kansas, and any agencies or departments thereof; the Federal Government, and any agencies and departments thereof. For purposes of this Ordinance only, “places of worship” are hereby defined as quasi-public uses.

N.    Residential Development: the development of any property for a dwelling or dwellings as indicated by an application for final plat approval.

O.    Subdivision Regulations: The Subdivision Regulations of the City of Ottawa, including all duly adopted amendments thereof.

P.    Improvements: the development of infrastructure improvements within the City or within any extraterritorial area over which the City has jurisdiction, which may include but which are not limited to, planning, design, engineering, financing, acquisition of land or easements, construction, administration or incidental expenses associated with any enhancement or addition to roads, streets, bridges, sidewalks, sanitary sewers, water mains, storm sewers, electrical system, broadband system, or any portion thereof or any other improvement for the public good pursuant to the City Comprehensive Plan and the ordinance assessing the fee.

Q.    Improvement Costs: the amounts spent, to be spent or authorized to be spent in connection with the provision of improvements, which may include, but which are not limited to, funds spent on the planning, design, engineering, financing, acquisition of land or easements, construction, administration or incidental expenses associated with the provision of improvements.

R.    Zoning Ordinance: The Ottawa Zoning Ordinance including all duly adopted amendments thereto.

(Ord. 4008-18)

All new impact fees shall be approved by ordinance passed by the governing body. Before any such ordinance is adopted the governing body shall hold a public hearing. Notice of the public hearing shall be by publication in the official newspaper of the city, not more than 30 days nor less than 14 days before the date of the hearing. The notice shall include, the date, time and location of the hearing. Additionally, any owner of any specific property upon which an impact fee may be levied shall be notified of the date, time and location of the public hearing by certified mail, return receipt requested, mailed not more than 30 days nor less than 14 days before the date of the hearing.

(Ord. 4008-18)

Any ordinance imposing an impact fee shall contain at minimum the following terms:

A.    The general nature of the proposed improvement;

B.    The estimated or probable cost of the improvement;

C.    The extent of the properties upon which an impact fee will be assessed;

D.    The method of assessment;

E.    The apportionment of cost, if any, between the improvement district and city at large;

F.    Whether the impact fee will be static or set as part of a flexible rate and if part of a flexible rate, the method of calculation of such rate;

G.    Whether the impact fee will bear interest, and if so at what rate; and

H.    Any change in the way the specific impact fee will differ from the terms of this policy.

(Ord. 4008-18)

A.    No building permit for development to which this section is applicable shall be issued by the City nor shall any development subject to this section be finally approved by the City unless the applicant therefor or the owner of the subject property has paid the applicable impact fee in full in the amount and manner prescribed herein.

B.    The impact fee shall not be imposed on any development for which final plat approval had been granted by the City or on any development for which a building permit has been issued by the City on or before the date of adoption of this section, unless the impact fee was established prior to October 1, 2018.

C.    Imposition of the impact fee does not alter, negate, supersede or otherwise affect any other requirements of city, county, state or federal legislation or regulations that may be applicable to a development, including City zoning and/or subdivision regulations that may impose transportation improvements requirements, right-of-way dedication requirements, and design and construction standards for local, collector or arterial streets.

(Ord. 4008-18)

A.    The Director of Community Development shall be responsible for the processing and collection of the applicable impact fee.

B.    The Director of Community Development shall be responsible for determining that:

1.     the applicant has paid the applicable impact fee; or

2.     an appeal has been taken and a bond or other surety posted pursuant to Section 11.

C.    The Director of Community Development shall collect the applicable impact fee prior to issuance of a building permit or prior to final plat approval, whichever is appropriate.

(Ord. 4008-18)

A.    Each year the City Manager or his or her duly authorized agent, shall prepare a report to the Governing Body on all outstanding city Impact Fees. In preparation of such report, the City Manager or his or her duly designated agent shall review the following information:

1.     a statement from the City Finance Director summarizing outstanding impact fees, impact fees collected, and impact fees disbursed during the year;

2.     a statement from the Director of Community Development summarizing the type, location, timing and amount of development for which building permits were issued or final plat approval granted in the year and summarizing the administration and enforcement of the impact fee.

3.     a statement and recommendation from the Ottawa Public Works Director on all aspects of any street Impact Fees and corridor transportation improvements and land uses.

B.    The City Manager's Report shall make recommendations, if appropriate, on amendments to the Ordinance; changes in the administration or enforcement of the Ordinance; changes in the impact fee rate; and changes in the Comprehensive Plan.

C.    If any Impact Fee project uses an impact fee rate, then the impact fee rate shall be reviewed annually. Based upon the City Manager's Report and such other factors as the Governing Body deems relevant and applicable, the Governing Body may amend the impact fee rate by Resolution. If the Governing Body fails to take such action, the impact fee rate then in effect shall remain in effect. Nothing herein precludes the Governing Body or limits its discretion to amend the impact fee rate and/or the Impact Fee Ordinance at such other times as may be deemed necessary.

D.    In the annual review process, the Governing Body may take into consideration the following factors: inflation as measured by changes in an appropriate construction cost index used by the City; improvement and land acquisition cost increases as measured by actual experience during the year; changes in the design, engineering, location, or other elements of proposed infrastructure improvements; revisions to the Comprehensive Plan; changes in the anticipated land use mix and/or intensity of development in the city; and such other factors as may be deemed relevant and appropriate.

(Ord. 4008-18)

A.    The funds collected by reason of the establishment of an impact fee must be used solely for the purpose of funding improvements as described in the ordinance assessing the fee and pursuant to the Comprehensive Plan or for reimbursement to the City for costs incurred in providing such improvements.

B.    Upon receipt of impact fees, the Director of Community Development shall transfer such funds to the City Treasurer who shall be responsible for the placement of such funds in a segregated, interest bearing account designated by the improvements to be funded by the impact fee. All funds placed in said accounts and all interest earned therefrom shall be utilized solely and exclusively for the provision of the improvements as described in the ordinance assessing the fee and pursuant to the Comprehensive Plan and this Ordinance. At the discretion of the Governing Body, other revenues as may be legally utilized for such purposes may be deposited to such account. The City Treasurer shall establish adequate financial and accounting controls to ensure that impact fee funds disbursed from such accounts are utilized solely and exclusively for the improvements as described in the ordinance assessing the fee or for reimbursement to the City of advances made from other revenue sources to fund such improvements. Disbursement of funds from said accounts shall be authorized by the City at such times as are reasonably necessary to carry out the purposes and intent of this Ordinance and the ordinance assessing the fee; provided, however, that funds shall be expended within a reasonable period of time, but not to exceed five (5) years from the date such funds are collected.

C.    The City Treasurer shall maintain and keep adequate financial records for said account which shall show the source and disbursement of all funds placed in or expended by such account.

D.    Interest earned by such account shall be credited to the account and shall be utilized solely for the purposes specified for funds of the account.

E.    Impact fee funds collected shall not be used to maintain or repair improvements nor to finance improvements other than those described in the ordinance assessing the fee.

F.    The City may issue and utilize general obligation bonds, revenue bonds, revenue certificates or other certificates of indebtedness as are within the authority of the City in such manner and subject to such limitations as may be provided by law in furtherance of the financing and provision of the improvements as set forth in the Comprehensive Plan and the ordinance assessing the fee. Funds pledged toward the retirement of such bonds or other certificates of indebtedness may include the impact fees and other City (and non-City) funds and revenues as may be allocated by the Governing Body. Impact fees paid pursuant to this Ordinance, however, shall be used solely and exclusively for the improvements as defined in the ordinance assessing the fee.

(Ord. 4008-18)

A.    The current owner of property on which an impact fee has been paid may apply for a refund of such fee if:

1.     the City has failed to initiate the improvements within five (5) years of the date of payment of the impact fee; or

2.     the building permit pursuant to which the impact fee has been paid has lapsed for non-commencement of construction; or

3.     in the case of an impact fee rate assessed on finished square footage, the development for which a building permit has been issued has been altered resulting in a decrease in the amount of impact fee due; or

4.     the final plat for a development pursuant to which an impact fee has been paid is vacated; or

5.     a replat for fewer lots or dwelling units is submitted on property pursuant to which an impact fee had been paid prior to final plat approval.

B.    Only the current owner of property may petition for a refund. A petition for refund must be filed within one year of the event giving rise to the right to claim a refund.

C.    The petition for refund must be submitted to the City Manager or his or her duly designated agent on a form provided by the City for such purpose. The petition must contain: a statement that petitioner is the current owner of the property; a copy of the dated receipt for payment of the impact fee issued by the Director of Community Development; a certified copy of the latest recorded deed for the subject property; and a statement of the reasons for which a refund is sought.

D.    Within one month of the date of receipt of a petition for refund, the City Manager or his or her duly designated agent must provide the petitioner, in writing, with a decision on the refund request. The decision must include the reasons for the decision. If a refund is due petitioner, the City Manager or his or her duly designated agent shall notify the City Treasurer and request that a refund payment be made to petitioner.

E.    Petitioner may appeal the determination of the City Manager to the Governing Body.

(Ord. 4008-18)

After a determination by the Director of Community Development of the applicability of the impact fee or the amount of the impact fee due in an impact fee rate assessment, or after a determination by the City Manager of the amount of refund due, if any, an applicant or a property owner may appeal to the Governing Body. The appellant must file a Notice of Appeal with the Governing Body within thirty (30) days following the determination by the Director of Community Development or City Manager. If the Notice of Appeal is accompanied by a bond or other sufficient surety satisfactory to the City Attorney in an amount equal to the impact fee due as calculated by the Director of Community Development, the application shall be processed. The filing of an appeal shall not stay the collection of the impact fee due unless a bond or other sufficient surety has been filed. 

(Ord. 4008-18)

This ordinance shall not affect, in any manner, the permissible use of property, density of development, design and improvement standards and requirements or any other aspect of the development of land or requirements for the provision of public improvements that may be imposed by the City pursuant to the zoning and subdivision regulations or other regulations of the City, which shall be operative and remain in full force and effect without limitation with respect to all such development.

(Ord. 4008-18)

The Impact Fee is additional and supplemental to, and not in substitution of, any other requirements imposed by the City as a condition of the development of land or the issuance of building permits; provided, however, that the impact fee requirement and the payment of such fee by a developer for the transportation improvements described herein shall not be duplicative of other street improvement requirements imposed pursuant to City zoning, subdivision, planned unit development or other applicable ordinances or regulations and the payment of the Impact Fee shall not be used to meet such requirements. The Impact Fee requirement is intended to be consistent with and to further the objectives and policies of the Comprehensive Plan and to be coordinated with other City policies, ordinances and resolutions by which the City seeks to ensure the provision of adequate transportation capacity in conjunction with the development of land. In no event shall a property owner be obligated to pay an impact fee in an amount in excess of the amount calculated pursuant to this Ordinance; but, provided that a property owner may be required, pursuant to City zoning and subdivision regulations to dedicate land and/or construct local, collector or arterial streets in addition to meeting the impact fee requirements set forth herein.

(Ord. 4008-18)

The City Manager after consultation with the Director of Community Development, City Attorney and the Governing Body may modify or reduce the amount of any static impact fee when in his or her discretion the fee has become onerous, an impediment to development, or the reduction of the fee would better encourage development than collection of the full amount. Any modification or reduction must be included in the annual report required by Section 13-707.

(Ord. 4008-18)