Administrative Procedure #7.06 - Fee-in-Lieu Parking Program
Purpose
The Land Development Code requires a minimum number of parking spaces per 1,000 square feet of commercial space and one space per each residential unit. The Corvallis Comprehensive Plan directs the level of urban density for each parcel. It is sometimes difficult to provide both the required parking and the required urban density on the same piece of property. The Corvallis Municipal Code directs that a Fee-in-Lieu Program be created to address this situation and allow developers to pay a fee for each parking space rather than construct said space. This Administrative Procedure describes the parameters of the Program.
Scope
In general, it is recognized that constructing public parking improvements is preferred to payments in lieu of construction. However, in certain instances, it may be in the best interest of the community to accept payments in lieu of construction to provide for improvements. The decision to allow payment in lieu of construction will be made by the Planning Commission and/or City Council for development proposals requiring a public hearing, or by the Community Development Director for development projects which are permitted uses.
Guidelines
Determination of Fee-in-Lieu Parking Program Fee
The fee associated with this Fee-in-Lieu Program is established as of December 2014 to be $10,560.00 for each parking space a developer chooses not to construct or provide through long-term agreement for the use of available nearby spaces. This fee shall be tied to the Engineering News Record Construction Cost Index (ENR CCI) 20-City average for August 2014, which was 9846. The fee shall be updated yearly based on each year's updated ENR CCI for August. The actual in-lieu-of fee amount shall be established at the time of payment.
Fee Collection
The Fee-in-Lieu Parking Program fee will be collected by the City, prior to the issuance of any final occupancy permits for the building or portion thereof associated with the fees.
Notwithstanding any other provision herein to the contrary, whenever a Fee-in-Lieu Parking Program charge for five or more spaces would otherwise be due and collectable, the developer may apply upon forms provided by the City Manager for payment of the charge in not more than 20 semi-annual installments plus interest. Upon receipt of such an application, the City Manager shall compute the amount of the Fee-in-Lieu Parking Program charge, the dates upon which each installment on that charge is due, the name or names of the developer(s) of the development for which the Fee-in-Lieu Parking Program charge is imposed, and the description of the property upon which the development is occurring or has occurred. The total amount of the charge shall be subject to interest at the rate of 10 percent per annum, which interest shall be the full and only compensation to the City for its administrative costs and shall be secured by property, bond(s), deposits, letter of credit, or other security acceptable to the City Manager. Each installment shall be paid within 15 days of the dates established above, beyond which 15-day period a late fee shall be charged. The late fee shall equal five percent of the amount due and an additional late charge shall be assessed for each month the installment remains unpaid. If the developer elects to secure the charge(s) with real property, the developer shall obtain the consent of the owner or owners of record or of the contract purchaser or purchasers of record of the real property. The burden of showing the identity of the owner or owners of record or of the contract purchaser or purchasers of record of the parcel shall be upon the developer. Any deferred payment secured with real property shall become a lien upon the property, and the City Manager shall docket the lien in the docket of liens; and from the time that docketing is completed, the City shall have a lien upon that described property for the total amount of the charge. That lien may be enforced in the manner provided in Oregon Revised Statutes (ORS) Chapter 223. That lien herein shall have priority over all other liens and encumbrances of any character.
Accounting
Fee-in-Lieu Parking Program fees and all the interest earnings on those fees will be placed in an account specific to the provision of publicly accessible parking. These accounts will be co-managed between the Community Development Department and the Finance Department. The City will maintain a record of all properties that have met their required parking space obligation by paying the appropriate fee for the spaces. Payment of this fee does not absolve the developer from any future obligation to participate in future construction of publicly accessible parking spaces through additional funding mechanisms (e.g., a local improvement district, tax increment financing, etc.). Payment of this fee also does not guarantee the developer that parking spaces will be constructed for the sole use of or in the immediate proximity of that development.
Project Implementation
Projects funded from the Fee-in-Lieu Parking Program may be implemented either by the construction of publicly accessible parking spaces through the City's Capital Improvement Program or by disbursing funds to a developer constructing the improvements. Funds may also be used to convert existing private parking spaces to publicly accessible parking spaces through the purchase or lease of underutilized private parking spaces. Planning for parking capital improvement projects funded by Fee-in-Lieu Parking Program fees will be initiated at the discretion of the City Manager, contingent upon budget approval by the City Council. It should be recognized that to provide for a logical and cost effective construction of parking improvements, projects funded by Fee-in-Lieu Parking Program fees may be phased and may be constructed such that the parking spaces do not directly serve the parcels from which the fee was collected.
Definitions
City Manager. The City Manager of the City of Corvallis, or their designee.
Review/Update
The Community Development Director will prepare this Administrative Procedure for review as needed for City Manager approval.
Last reviewed: 07-2021
