Notice of Intent to Establish and Increase a Fee for
Building Regulations Development Payback Agreements
On or after January 13, 2020 the San Luis City Council may adopt an amendment to City Code Chapter 150 Building Regulations, section 150.013 Additional Regulations creating provisions for development payback agreements for the development of infrastructure and providing for an administrative charge to cover the cost of city administration. This administrative charge is proposed to be five (5) percent of the total cost incurred by the Owner/Developer for the construction of infrastructure from which persons other than the Developer will be served, with a maximum administrative charge of ten thousand dollars ($10,000.00). Administrative charges will be distributed equally among the properties benefited if equal costs are applied to each parcel or based on the cost per linear foot of frontage.
1. Date, time, and place of meeting.
The proposed administrative charge will be considered by the San Luis City Council at its formal meeting on January 13, 2021 commencing at 7:00 PM. The meeting will be held at the San Luis City Council Chambers, 1090 E. Union St., San Luis, Arizona.
2. Reference to more details.
Information related to the proposed fees follows this notice.
This notice of intent is posted effective: October 29, 2020.
Report Concerning Proposed Amendment to City Code Providing for Payback Agreements
Date: October 29, 2020
From: Glenn Gimbut, Assistant City Attorney
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City staff proposes to amend the San Luis City Code at Chapter 150, Building Regulations, Section 150.013, Additional Regulations to provide regulation of payback agreements with developers (Developer”) who develop infrastructure that benefits properties other than the property being developed by Developer. At present time the City of San Luis has three existing agreements that provide for such payback. As San Luis is currently one of the fastest growing cities in Arizona, developers are being required to develop infrastructure that will serve properties other than their own. Property that benefits from such development should pay its fair share. Provision for payback agreements with a Developer is proposed by above described amendment. It is proposed that the envisioned payback agreements last up to 20 years. The City would collect monies from new development and reimburse the Developer. The proposed amendment would establish an administrative charge to cover the cost of city administration. This administrative charge is proposed to be five (5) percent of the total cost incurred by the Owner/Developer for the construction of infrastructure from which persons other than the Developer will be served, with a maximum administrative charge of ten thousand dollars ($10,000.00). Administrative charges will be distributed equally among the properties benefited if equal costs are applied to each parcel or based on the cost per linear foot of frontage.
This administrative charge for payback agreements is either identical to, less than, or similar in amount with administrative charges for payback agreements established by the Cities of Scottsdale, Glendale, and Buckeye, Arizona. Since the fee is equal to, similar, or less than the amounts charged by said cities, it is believed to be reasonable in amount, and appropriate to recover actual costs of administration.