Discussion and possible action to adopt a minor amendment to the Land Use Assumptions and Infrastructure Improvement Plans developed as part of the 2024 Development Impact Fee update.

As part of the 2024 Development Impact Fee update, City Council approved the Land Use Assumptions, Infrastructure Improvements Plan and Development Fee Report on June 11, 2024. The report included the adopted infrastructure improvement plans (IIP), growth projections (LUA) and defined service areas which are used to calculate updated fees. While working through the fee calculations, it was determined that minor adjustments to projects were necessary based on the timing and realities of development. The minor adjustments resulted in lower impact fees.  On August 20, 2024, a Public Hearing on the proposed fees was conducted, which reflected the fee recommendations from the amended study. No additional comments or feedback was received. 

As allowed by A.R.S. §9-463.05, a minor amendment to the IIP has been completed, which does not require a Public Hearing.   

Below is a summary of the minor amendments:

Water Resources

• Reduced Bartlett Dam project to 75% growth related (from 100%).

Water

• Reduced CAP/LPP Wellfield project to 50% growth related (from 100%).
• Reduced Agua Fria West Wellfield project to 50% growth related (from 100%).

Wastewater

• Split East of the Agua Fria Zone into North & South of Beardsley Rd so users south of Beardsley Rd do not contribute towards the Beardsley WRF Expansion project.

Parks

• Reduced improvement costs by $100K for all Park Zones.

Transportation

• Removed Forrest Pleasant Pl, El Mirage to L303 project from North Zone IIP ($17.3M).
• Added $14.4M of debt to offset cost of Vistancia Blvd and Happy Valley Rd Realignment.
• Reduced LOS to 1.6 (from 1.7).

February 20, 2024 - Developer Stakeholder Meeting #1 was held to review planned methodologies, discuss projects included within the proposed IIPs and review the LUA.  Multiple stakeholders attended and provided feedback.

March 7, 2024 - The draft Land Use Assumptions, Infrastructure Improvements Plan and Development Fee Report was made available on the City’s Impact Fee webpage.  This report includes all the required components to provide a full understanding of the assumptions, projects and fees associated with the update.

March 7, 2024 - Published Notice of Intent and Public Hearing in the Peoria Times. 

April 8, 2024 - Developer Stakeholder Meeting #2 was held for further discussion on planned methodologies, projects included within the proposed IIPs and review the LUA. Again, multiple stakeholders attended and provided feedback.

April 16, 2024 - City Council Study Session to provide an overview on the Development Impact Fee update. 

May 7, 2024 - A Public Hearing was conducted regarding the draft Land Use Assumptions, Infrastructure Improvements Plan and Development Impact Fee Analysis.

June 11, 2024 - City Council adopted the Land Use Assumptions, Infrastructure Improvement Plan, and Development Impact Fee Report.

July 18, 2024 - A Notice of Intent to Assess Development Impact Fees was posted on the City’s website and published in the Peoria Times. 

July 23, 2024 - Developer Stakeholder Meeting #3 was held to discuss the proposed maximum supportable development impact fees.

August 20, 2024 - A Public Hearing was conducted on the proposed fees. 

Staff recommends adoption of a minor amendment to the Land Use Assumptions and Infrastructure Improvement Plans developed as part of the 2024 Development Impact Fee update.

Impact fees are an important source for funding one-time capital infrastructure related to growth.  Adjustments in fees are necessary and required to address changes in land use assumptions, development patterns and project costs.  Funding options for growth related infrastructure is affected by the type and amount of fee revenue generated.