Attachment A- Impact Fee Report 2-11-2025.pdf
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ATTACHMENT A (10 Pages) City of Phoenix 2025 Development Impact Fee Update DEVELOPMENT IMPACT FEE REPORT DRAFT 2-11-2025 Prepared by: Business & Strategy Division Growth, Infrastructure & Financial Stability SecƟon 1 TABLE OF CONTENTS Overview 2 Impact Fee Area Map 3 Service Area Building Blocks 4 Proposed Net Fee Changes by Category 5 Fire Protection & Police Parks & Library 5 Major Arterial & Storm Drainage Wastewater Collection & Treatment 6 Water Transmission & Treatment Water Resources Acquisition 7 Proposed Total Net Fees 8 2 OVERVIEW The following Impact Fee Report contains descripƟons of the development impact fee area ‘building blocks’ and service area boundaries, a summary of growth projecƟons for each area, and the recommended changes to the net impact fees. IMPACT FEE AREA MAP 3 IMPACT FEE AREA BUILDING BLOCKS AND SERVICE AREA BOUNDARIES Land use assumpƟons have been summarized in geographic building blocks that can be aggregated to the impact fee service areas applicable to each impact fee program. The impact fee service areas described in this report are based on the areas established in previous plans. The only notable change is a proposed ‘citywide’ impact fee service area for Water Treatment and Wastewater Treatment that would be assessed in the ‘Balance of City’ area. The following table displays how the impact fee “building block” areas are combined to make designated impact fee service areas for each fee category. The building block geographies are shown on the map on the following page. Impact Fee Category Impact Fee Service Area Building Block Fire Protection, Police, Parks, Library Northwest Northwest & Deer Valley Northeast Northeast & Paradise Ridge Southwest Estrella N, Estrella S, Laveen W & Laveen E Ahwatukee Ahwatukee Major Arterials Northern Northwest, Deer Valley, Northeast & Paradise Ridge Southwest Estrella N, Estrella S, Laveen W & Laveen E Storm Drainage Paradise Ridge Paradise Ridge Estrella Estrella N & Estrella S Laveen Laveen W & Laveen E Water Transmission Northern Northwest, Deer Valley, Northeast, & Paradise Ridge Southern Estrella N, Estrella S, Laveen W, Laveen E, & Ahwatukee Wastewater Collection Northern - WW Northwest, Northeast & Paradise Ridge Estrella South Estrella South Wastewater Treatment North of CAP Canal Northwest, Northeast, & Paradise Ridge South of CAP Canal Deer Valley, Balance of City, Estrella N, Estrella S, Laveen W, Laveen E, & Ahwatukee Water Treatment Citywide All ‘Building Blocks’ & Balance of City Water Resources Acquisition Off-Project Off-Project On-Project On-Project 4 LAND USE ASSUMPTION QUANTITIES BY BUILDING BLOCK It is necessary to esƟmate development units at the beginning of the planning horizon. For this update the starƟng point or “esƟmate year” is assumed to be 2025. At the Ɵme Applied Economics, LLC, iniƟated their study the best available data for exisƟng development units was for 2023. The 2025 esƟmated development units are used to calculate current Levels of Service (LOS) for certain impact fee categories. Estimate Year Land Use Assumptions (2025) (Dwelling Units) (000's Square Feet) SFR MFR Retail Office Industrial Public Other Northwest 10,004 5,108 2,152 263 4,059 1,534 478 Deer Valley 5,195 1,558 5 0 27 188 12 Northeast 20,790 5,680 2,300 1,150 1,556 1,805 1,397 Paradise Ridge 262 4,130 1,542 1,803 0 108 2,244 Estrella North 2,353 657 1,774 12 47,308 621 143 Estrella South 17,128 1,379 1,623 9 18,433 1,552 34 Laveen West 22,435 1,420 2,677 118 1,088 2,135 552 Laveen East 6,851 575 882 7 285 597 35 Ahwatukee 24,405 9,913 3,015 1,661 1,201 2,316 1,135 Balance of City 295,911 244,960 80,067 110,563 114,560 86,994 57,187 Citywide 405,334 275,380 96,037 115,586 188,517 97,850 63,217 Off-Project 209,093 105,345 40,821 38,736 49,216 24,103 25,394 On-Project 196,264 170,035 55,217 76,851 139,301 73,748 37,879 10-Year Land Use Assumptions (2035) Dwelling Units 000's Square Feet SFR MFR Retail Office Industrial Public Other Northwest 13,047 10,822 3,052 2,388 11,509 1,644 716 Deer Valley 5,281 1,558 5 0 27 316 12 Northeast 33,783 10,696 3,221 2,512 1,819 1,818 1,754 Paradise Ridge 3,200 5,236 1,644 3,934 0 800 2,676 Estrella North 2,765 1,002 1,828 12 51,802 621 143 Estrella South 20,640 3,221 2,042 61 22,292 1,904 34 Laveen West 25,639 4,569 3,759 433 3,144 2,135 1,384 Laveen East 7,887 715 882 7 285 597 35 Ahwatukee 25,195 9,913 3,015 1,661 1,201 2,316 1,135 Balance of City 300,735 271,170 85,080 116,414 123,898 87,984 58,846 Citywide 438,172 318,902 104,528 127,422 215,977 100,135 66,735 Off-Project 234,060 131,988 45,261 47,335 60,589 25,163 26,680 On-Project 204,135 186,914 59,267 80,088 155,388 74,972 40,110 5 15-Year Land Use Assumptions (2040) Dwelling Units 000's Square Feet SFR MFR Retail Office Industrial Public Other Northwest 15,286 13,179 3,600 4,138 12,509 1,644 1,021 Deer Valley 5,521 1,558 5 0 27 316 12 Northeast 39,090 12,589 3,437 4,115 1,819 1,930 2,022 Paradise Ridge 4,725 5,471 1,701 4,303 0 989 2,676 Estrella North 2,904 1,002 1,828 12 51,926 621 143 Estrella South 21,112 3,507 2,222 61 23,476 2,009 34 Laveen West 25,759 5,375 4,128 599 4,244 2,135 1,498 Laveen East 7,907 715 882 7 285 597 35 Ahwatukee 26,121 9,913 3,015 1,661 1,201 2,316 1,135 Balance of City 301,164 280,493 88,093 119,305 127,760 88,459 59,662 Citywide 449,589 333,802 108,911 134,201 223,247 101,016 68,238 Off-Project 244,762 144,550 46,582 52,547 63,398 25,465 27,323 On-Project 204,850 189,252 62,329 81,655 159,849 75,551 40,972 Buildout Land Use Assumptions (Full Absorption of Undeveloped Land within Building Block Areas) Dwelling Units 000's Square Feet SFR MFR Retail Office Industrial Public Other Northwest 61,155 33,533 11,655 17,177 42,984 3,789 1,541 Deer Valley 5,534 1,623 5 0 27 316 13 Northeast 54,850 16,924 7,436 11,444 3,568 3,383 2,389 Paradise Ridge 5,355 6,734 3,360 16,140 0 989 2,676 Estrella North 3,205 1,002 1,947 12 51,979 621 143 Estrella South 22,551 3,649 2,452 61 25,559 2,253 56 Laveen West 26,158 6,257 5,549 2,267 7,058 2,385 2,411 Laveen East 8,768 715 934 7 285 607 51 Ahwatukee 26,941 9,913 3,325 1,661 1,201 2,316 1,135 Balance of City 302,008 291,038 97,458 126,908 141,371 89,821 61,438 Citywide 516,525 371,388 134,121 175,677 274,032 106,480 71,853 Off-Project 310,372 177,104 62,507 89,740 102,070 29,472 28,391 On-Project 206,819 194,284 72,287 85,937 171,962 77,008 43,581 6 PROPOSED DEVELOPMENT IMPACT FEE CHANGES BY FEE CATEGORY The following tables compare the current net fee per Equivalent Demand Unit (EDU) that took effect on April 13, 2020, with the proposed net fee per EDU pursuant to the Infrastructure Improvements Plans that were adopted by City Council on December 18, 2024. The net fee per EDU includes adjustments for qualifying fund balances and alternaƟve revenue offsets. Fee assessments are based on land use and will be calculated as the net fee per EDU, mulƟplied by the applicable EDU Factor. Fire Protection Police Impact Fee Area Current Fee Proposed Current Fee Proposed Northwest 516 1,282 293 348 Deer Valley 516 1,282 293 348 Northeast 551 1,165 314 348 Paradise Ridge 551 1,165 314 348 Estrella North (Off Project) 487 1,625 285 348 Estrella North (On Project) 487 1,625 285 348 Estrella South (Off Project) 487 1,625 285 348 Estrella South (On Project) 487 1,625 285 348 Laveen West (Off Project) 487 1,625 285 348 Laveen West (On Project) 487 1,625 285 348 Laveen East (Off Project) 487 1,625 285 348 Laveen East (On Project) 487 1,625 285 348 Ahwatukee (Off Project) 470 1,833 342 348 Ahwatukee (On Project) 470 1,833 342 348 Balance of the City (Off Project) 0 0 0 0 Balance of the City (On Project) 0 0 0 0 Parks Library Impact Fee Area Current Fee Proposed Current Fee Proposed Northwest 1,368 1,409 105 216 Deer Valley 1,368 1,409 105 216 Northeast 1,236 1,474 105 133 Paradise Ridge 1,236 1,474 105 133 Estrella North (Off Project) 1,241 2,082 105 205 Estrella North (On Project) 1,241 2,082 105 205 Estrella South (Off Project) 1,241 2,082 105 205 Estrella South (On Project) 1,241 2,082 105 205 Laveen West (Off Project) 1,241 2,082 105 205 Laveen West (On Project) 1,241 2,082 105 205 Laveen East (Off Project) 1,241 2,082 105 205 Laveen East (On Project) 1,241 2,082 105 205 Ahwatukee (Off Project) 1,225 1,094 105 0 Ahwatukee (On Project) 1,225 1,094 105 0 Balance of the City (Off Project) 0 0 0 0 Balance of the City (On Project) 0 0 0 0 7 Major Arterials Storm Drainage Impact Fee Area Current Fee Proposed Current Fee Proposed Northwest 3,080 2,330 0 0 Deer Valley 3,080 2,330 0 0 Northeast 3,080 2,330 0 0 Paradise Ridge 3,080 2,330 1,715 3,094 Estrella North (Off Project) 1,928 0 770 1,207 Estrella North (On Project) 1,928 0 770 1,207 Estrella South (Off Project) 1,928 0 770 1,207 Estrella South (On Project) 1,928 0 770 1,207 Laveen West (Off Project) 1,928 0 1,037 1,401 Laveen West (On Project) 1,928 0 1,037 1,401 Laveen East (Off Project) 1,928 0 1,037 1,401 Laveen East (On Project) 1,928 0 1,037 1,401 Ahwatukee (Off Project) 0 0 0 0 Ahwatukee (On Project) 0 0 0 0 Balance of the City (Off Project) 0 0 0 0 Balance of the City (On Project) 0 0 0 0 Wastewater Collection Wastewater Treatment Impact Fee Area Current Fee Proposed Current Fee Proposed Northwest 1,923 5,127 1,380 3,824 Deer Valley 0 0 1,380 1,190 Northeast 1,923 5,127 1,380 3,824 Paradise Ridge 1,923 5,127 1,380 3,824 Estrella North (Off Project) 0 0 1,380 1,190 Estrella North (On Project) 0 0 1,380 1,190 Estrella South (Off Project) 2,407 5,409 1,380 1,190 Estrella South (On Project) 2,407 5,409 1,380 1,190 Laveen West (Off Project) 2,250 0 1,380 1,190 Laveen West (On Project) 2,250 0 1,380 1,190 Laveen East (Off Project) 0 0 1,380 1,190 Laveen East (On Project) 0 0 1,380 1,190 Ahwatukee (Off Project) 0 0 1,380 1,190 Ahwatukee (On Project) 0 0 1,380 1,190 Balance of the City (Off Project) 0 0 0 1,190 Balance of the City (On Project) 0 0 0 1,190 8 Water Transmission Water Treatment Impact Fee Area Current Fee Proposed Current Fee Proposed Northwest 5,497 14,046 833 4,387 Deer Valley 5,497 14,046 833 4,387 Northeast 5,497 14,046 833 4,387 Paradise Ridge 5,497 14,046 833 4,387 Estrella North (Off Project) 3,183 1,703 833 4,387 Estrella North (On Project) 3,183 1,703 833 4,387 Estrella South (Off Project) 3,183 1,703 833 4,387 Estrella South (On Project) 3,183 1,703 833 4,387 Laveen West (Off Project) 3,183 1,703 833 4,387 Laveen West (On Project) 3,183 1,703 833 4,387 Laveen East (Off Project) 3,183 1,703 833 4,387 Laveen East (On Project) 3,183 1,703 833 4,387 Ahwatukee (Off Project) 3,183 1,703 833 4,387 Ahwatukee (On Project) 3,183 1,703 833 4,387 Balance of the City (Off Project) 0 0 0 4,387 Balance of the City (On Project) 0 0 0 4,387 Water Resource Acquisition Impact Fee Area Current Fee Proposed Northwest 583 2,009 Deer Valley 583 2,009 Northeast 583 2,009 Paradise Ridge 583 2,009 Estrella North (Off Project) 583 2,009 Estrella North (On Project) 0 0 Estrella South (Off Project) 583 2,009 Estrella South (On Project) 0 0 Laveen West (Off Project) 583 2,009 Laveen West (On Project) 0 0 Laveen East (Off Project) 583 2,009 Laveen East (On Project) 0 0 Ahwatukee (Off Project) 583 2,009 Ahwatukee (On Project) 0 0 Balance of the City (Off Project) 583 2,009 Balance of the City (On Project) 0 0 ATTACHMENT A (10 Pages) PROPOSED TOTAL NET FEES BY DEVELOPMENT IMPACT FEE AREA Impact Fee Area Fire Police Parks Library Major Arterials Storm Drainage Wwtr Collection Wwtr Treatment Water Transmission Water Treatment Water Resources Total Northwest $1,282 $348 $1,409 $216 $2,330 $0 $5,127 $3,824 $14,046 $4,387 $2,009 $34,978 Deer Valley $1,282 $348 $1,409 $216 $2,330 $0 $0 $1,190 $14,046 $4,387 $2,009 $27,217 Northeast $1,165 $348 $1,474 $133 $2,330 $0 $5,127 $3,824 $14,046 $4,387 $2,009 $34,843 Paradise Ridge $1,165 $348 $1,474 $133 $2,330 $3,094 $5,127 $3,824 $14,046 $4,387 $2,009 $37,937 Estrella N. (On Project) $1,625 $348 $2,082 $205 $0 $1,207 $0 $1,190 $1,703 $4,387 $0 $12,747 Estrella S. (Off Project) $1,625 $348 $2,082 $205 $0 $1,207 $5,409 $1,190 $1,703 $4,387 $2,009 $20,165 Estrella S. (On Project) $1,625 $348 $2,082 $205 $0 $1,207 $5,409 $1,190 $1,703 $4,387 $0 $18,156 Laveen W. (Off Project) $1,625 $348 $2,082 $205 $0 $1,401 $0 $1,190 $1,703 $4,387 $2,009 $14,950 Laveen W. (On Project) $1,625 $348 $2,082 $205 $0 $1,401 $0 $1,190 $1,703 $4,387 $0 $12,941 Laveen E. (Off Project) $1,625 $348 $2,082 $205 $0 $1,401 $0 $1,190 $1,703 $4,387 $2,009 $14,950 Laveen E. (On Project) $1,625 $348 $2,082 $205 $0 $1,401 $0 $1,190 $1,703 $4,387 $0 $12,941 Ahwatukee (Off Project) $1,833 $348 $1,094 $0 $0 $0 $0 $1,190 $1,703 $4,387 $2,009 $12,564 Ahwatukee (On Project) $1,833 $348 $1,094 $0 $0 $0 $0 $1,190 $1,703 $4,387 $0 $10,555 Balance (Off Project) $0 $0 $0 $0 $0 $0 $0 $1,190 $0 $4,387 $2,009 $7,586 Balance (On Project) $0 $0 $0 $0 $0 $0 $0 $1,190 $0 $4,387 $0 $5,577 1) Fees are based on inflation-adjusted unit costs estimated at 2028 dollars. 2) The offset for Water and Sewer Development Occupational Fees is not included. Staff recommend striking PCC Chapters 19A - 19D, thereby eliminating the DOF fee and the associated offset.