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Resolution - 2023 - 23-12 - Adopting An Updated Parks Development Impact Fee Study & Parks Capital Improvements Plan Dated April 2023, Adopting A Revised Park Impact Fee - 05/24/2023 RESOLUTION NO. 23-12 A RESOLUTION OF THE CITY OF EAGLE,IDAHO,ADOPTING AN UPDATED PARKS DEVELOPMENT IMPACT FEE STUDY & PARKS CAPITAL IMPROVEMENTS PLAN DATED APRIL 2023,ADOPTING A REVISED PARK IMPACT FEE; AND PROVIDING AN EFFECTIVE DATE. WHEREAS,the City of Eagle is a municipal corporation operating under the laws of the state of Idaho; and WHEREAS, Idaho Code § 67-8208 requires a governmental entity imposing a development impact fee to update its capital improvements plan at least once every five years in accordance with the procedures set forth in Idaho Code § 67-8206; and WHEREAS,the City of Eagle previously adopted a parks capital improvements plan (the "Plan") pursuant to Idaho Code Title 67, Chapter 82, in 2017, which identified capital improvements for which development impact fees may be used as a funding source; and WHEREAS, the City of Eagle has determined that the Plan should be reviewed, revised, and updated in order to remain current with the cost of land and construction within the City; and WHEREAS,the City of Eagle,and its consultants,have analyzed growth and development projections and the City' s levels of service in order to update the Plan; and WHEREAS,the City of Eagle Development Impact Fee Advisory Committee has assisted the City in analyzing, monitoring, and revising land use assumptions and the implementation of the capital improvements, advised the City Council as to necessary revisions to the City' s capital improvements plan and impact fee study, and has reviewed the draft revisions as set forth in Exhibit A attached hereto and incorporated herein by reference; and WHEREAS,the City of Eagle held a public hearing, which was duly noticed pursuant to Idaho Code § 67- 8206, for the purpose of taking public comment on the proposed amendment to the City of Eagle Development Impact Fee Study" entitled"Park Development Impact Fee Capital Improvements Plan" dated March 2017, hereinafter referred to as the " Park Study;" and WHEREAS,the Study and its updates/amendments contain the following information: a) A general description of all existing public parks facilities acknowledging the City' s satisfactory level of service within the City; b) A commitment by the City to use all available sources of revenue to maintain the adopted level of service where practical; Page 1 of 3 C:\User\hcsencsits\APPData\Local\Microsoft\Windows\INetCache\Content.Outlook\R4TPXOS7\RESOLUTION No 23-12(002).docz c) An analysis of the total capacity, the level of current usage, and commitments for usage of capacity of existing capital improvements,which was prepared by a qualified professional planner or by a qualified engineer licensed to perform engineering services in this state; d) A description of the land use assumptions by the City; e) A definitive table establishing the specific level or quantity of use, consumption, generation or discharge of a service unit for each category of system improvements and an equivalency or conversion table establishing the ratio of a service unit to various types of land uses; f) A description of all system improvements and their costs necessitated by and attributable to new development in the service area based on the approved land use assumptions,to provide a level of service not to exceed the level of service adopted in the development impact fee ordinance; g) The total number of additional park acreage necessitated by and attributable to new development within the service area based on the approved land use assumptions and calculated in accordance with generally accepted engineering or planning criteria; h) The projected demand for system improvements required by projected population growth over a reasonable period of time not to exceed ten (10) years; i) Identification of all sources and levels of funding available to the City for the financing of the system improvements; and j) A schedule setting forth a priority schedule for completion of improvements identified in the capital improvements plan; and WHEREAS, the City Council, after careful consideration, hereby finds and declares that an impact fee imposed upon residential development to finance parks and pathways, the demand for which is created by such development,continues to be in the best interest of the general welfare of the City and its residents, is equitable, does not impose an unfair burden on such development by forcing developers and builders to pay more than their fair share or proportionate share of the cost,and therefore deems it advisable to adopt the updated and revised impact fee study and capital improvements plan. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF EAGLE, IDAHO that the "Updated Parks Development Impact Fee Study and Parks Capital Improvement Plan"dated April 2023,attached hereto as Exhibit A and incorporated herein by this reference, is hereby adopted by the City. With an effective date of June 13, 2023. Page 2 of 3 C:\Users\hcsencsits\AppData\Local\Microsoft\Windows\INetCache\Content.Outlook\R4TPXOS7\RESOLUTION No 23-12(002).docx PASSED AND ADOPTED by the Council of the City of Eagle, this theM day of May, 2023. ikon fierce Mayor, City of Eagle ATTES �'•'Cti ••:•��d': AyE. Osvity City Clerk, f Eagle Page 3 of 3 C:\Users\hcsencsits\AppData\Local\Microsoft\Windows\INetCache\Content.Outlook\R4TPXOS7\RESOLUTION No 23-12(002).docx 32 N Main Street  PO Box 235  Payette, ID 83661 208 642 3304  info@hecoengineers.com City of Eagle, Idaho 2023 Update Park Development Impact Fee Capital Improvement Plan City of Eagle – Park Impact Fee 2023 Update HECO Engineers i EG 22-0418 TABLE OF CONTENTS 1.0 EXECUTIVE SUMMARY ........................................................................................................ 1 2.0 SCOPE/ANALYSIS ................................................................................................................. 2 2.1 Park Development Costs ............................................................................................ 2 2.2 Land Value .................................................................................................................. 4 2.3 Existing City Parks ...................................................................................................... 5 2.4 Projected Growth/Required New Developed Parks .................................................. 5 2.5 Impact Fee Calculation ............................................................................................... 6 2.6 Proposed Capital Improvement Plan ......................................................................... 8 3.0 SUMMARY/RECOMMENDATIONS ...................................................................................... 9 LIST OF TABLES Table 1. Park Category Descriptions ..................................................................................... 3 Table 2. Park Development Costs, Less Land Costs .............................................................. 4 Table 3. Representative Appraisals ...................................................................................... 4 Table 4. Park Growth Projections ......................................................................................... 6 Table 5. Impact Fee Calculation ............................................................................................ 7 Table 6. Proposed Capital Improvement Plan ...................................................................... 8 LIST OF APPENDICES APPENDIX A Existing Park Inventory and Value City of Eagle – Park Impact Fee 2023 Update HECO Engineers pg. 1 EG 22-0418 1.0 EXECUTIVE SUMMARY The Idaho Development Impact Fee Act in Idaho Code, Title 67, Chapter 82, requires capital improvement plans upon which impact fee systems are based be updated every five years. This update represents the fourth amendment of the City of Eagle’s Development Impact Fee Study/Capital Improvements Plan dated May 11, 1999. The City of Eagle last completed an updated Development Impact Fee & Capital Improvement Plan in 2017 (2017 Study). This update presents the review of the costs of park development and land values included in the 2017 Study as well as a review of the City’s existing parks. The City has actively continued to develop park areas and acquire land for future park development. Since the 2017 Study, the City has developed parks that included a portion of the Pamela Baker Park, a Dog Park, developed a use of the previous planned/unused Velodrome area, and Linder River Access Park. The City has also acquired undeveloped land in anticipation of future park development. With these changes, the City currently has 112.22 acres of developed parks and 731.88 acres of undeveloped acreage. At a required level of service (LOS) of 3.3 acres of developed park per 1,000 people adopted in 1999, the City has a surplus of 0.15 acres of developed park acreage to serve the current population of 33,960. Park development costs have increased approximately 43% since the 2017 Study based on the increase in the Construction Cost Index. This increase was directly applied to the 2017 Study park development costs to obtain the current average development costs for various park categories. Land values used to determine the value of the City’s park properties are difficult to estimate given the influences of development speculation and the housing market . To be conservative in estimating land values, available appraisals on properties not influenced by development speculation were relied upon for this update. Based on those appraisals, land values of $42,000 per acre for irrigated property and $7,500 per acre for dry foothill property were used in this update. Using the current park development costs, the value of the existing undeveloped acreage owned by the City, the land values costs, and the current developed park acreage, the average value for developed parks is $238,400. To maintain the LOS, approximately 61.82 acres of developed park will be needed over the next 10-year period after adjusting for the surplus. With the average value for developed parks and the needed acreage, an increase in the park impact fee is justified. The proposed Park Impact Fee is calculated to be $2,080 per dwelling unit. City of Eagle – Park Impact Fee 2023 Update HECO Engineers pg. 2 EG 22-0418 2.0 SCOPE/ANALYSIS The intent of this update was to do a limited review of the park elements of the previous study with a simplified approach to determin e a more representative Park Impact Fee accounting for changes in development costs, land values, and park development. This update does not review or revise the Pathway Impact Fee presented in the 2017 Study pending further pathway/trailway planning by the City. Map elements presented in the 2017 Study were not revised for this update. The specific tasks for this update included the following: 1. Review of park development costs for the six park categories presented in Figure 6 of the 2017 Study based on the increase of the Construction Cost Index. 2. Review of land values based on appraisals recently completed in the Spring Valley Development (Valnova). 3. Review of the City’s existing developed park acreage and the current value of the City’s park system. 4. Estimate of the current and future required acreage of developed parks based on existing and projected population to maintain the level of service. 5. Determine updated Park Impact Fee. 6. Update the Capital Improvement Plan (Figure 8 of the 2017 Study) to identify impact fee eligible projects. 2.1 Park Development Costs The 2017 Study provided park development costs for six different park categories. The park categories were not described in the 2017 Study, but they are characterized in Table 1. City of Eagle – Park Impact Fee 2023 Update HECO Engineers pg. 3 EG 22-0418 Table 1. Park Category Descriptions Cost Designation Typical Development A – Foothills Park Development Non-Irrigated, Natural Parks Located in the Foothills; May include established nature trails B – Nature Park Development Non-Irrigated, Natural Areas Located in Floodways; May include nature trails C – Lower Cost Development Sports Fields, Trails, Grass Play and Picnic Area D – Moderate Cost Development Add to Designation C: Restroom, Covered Picnic Area, Paved Walks, Structures, Concession Area E – Higher Cost Development Add to Designation D: Playground and Exercise Equipment, Water Feature, Sports Courts F – Special Use Amenities Add to Designation E: Gazebo, Velodrome, Amphitheater, Seating Each category has an estimated average development cost per acre based on the costs for the various amenities noted. The average development costs per acre (2016 dollars) presented in 2017 Study were adjusted to current development costs by using the Construction Cost Index (CCI) established in the construction cost estimating software, RSMeans. The ratio of the CCI values was used to calculate the current cost as follows: 𝐶𝑟𝑟𝑟𝑒𝑛𝑟 𝐶𝑛𝑟𝑟= 𝐶𝐶𝐼𝐶𝑡𝑟𝑟𝑒𝑛𝑡 𝐶𝐶𝐼2016 𝑥 𝐶𝑛𝑟𝑟2016 The CCI in 2016 was 191.1 and the CCI estimated for January 2023 is 273. A ratio of the indexes creates a multiplier ratio of 1.43. Multiplying the costs in 2016 (Figure 6 of the 2017 Study) by this ratio results in the current development costs shown in Table 2 below. City of Eagle – Park Impact Fee 2023 Update HECO Engineers pg. 4 EG 22-0418 Table 2. Park Development Costs, Less Land Costs Park Description by Cost Current Development Cost/Acre Foothills Park Development $14,500 Nature Park Development $23,000 Lower Cost Development $164,500 Moderate Cost Development $180,500 Higher Cost Development $248,500 Special Use Amenities $447,000 Note: Costs are rounded to nearest $500 2.2 Land Value To update the costs of land used in the impact fee analysis, appraisals completed in November/December 2022 within the Spring Valley Development (Valnova) were referenced to determine a cost/acre to use as a basis to determine the overall park land values. It is understood that property size can significantly influence the actual cost/acre, however, for this update a single representative value was used for the land value. The final appraisals represent different size parcels and differing characteristics. The representative appraisals referenced for this up date are shown in Table 3 below. Table 3. Representative Appraisals Property Acreage Value Value/Acre TBD N. Highway 16 Irrigated Land 28.44 $1,195,000 $42,000 TBD Willow Creek Foothills – Parcel 1 283.04 $2,970,000 $10,500 TBD Willow Creek Foothills – Parcel 2 320.00 $2,400,000 $7,500 Based on these appraisals, irrigated land was valued at $42,000 and dry foothill land was valued at the more conservative value of $7,500. For this analysis, the value of the dry foothill land was also used for the value of floodway land. The $7,500 per acre value is consistent with the value used in the 2017 Study. City of Eagle – Park Impact Fee 2023 Update HECO Engineers pg. 5 EG 22-0418 It should be noted that land value used in the City of Boise Development Impact Fee Study completed in February 2022, was estimated at $250,000 per acre. Given the high volatility of land sales in the valley driven by development speculation, it is difficult to predict the value of land. Therefore, rather than speculate on possible higher land values, a conservative approach to use the values presented in the appraisals, which are based on the sales of comparable properties, was deemed appropriate for this analysis. To refine the land value used in this update, a more in- depth analysis would be necessary to identify specific parcels of property and evaluate each for development potential which is beyond the scope of this update. In addition, the City has historically collaborated with developers to identify and acquire potential park property. 2.3 Existing City Parks Since the 2017 Study, additional park lands have been developed by the City and undeveloped properties have been acquired increasing the City’s value of the current park assets. Appendix A summarizes the City’s existing parks and the associated land and improvement values. The City currently has 731.88 acres of undeveloped park property and 112.22 acres of developed parks. The land value of the existing park lands (developed and undeveloped) is $11,471,250 and the improvement value is estimated to be $15,283,320 for a total current value of parks of $26,754,570. It should be noted that the land values of the undeveloped parks currently owned by the City were included in determining the current asset value of the City’s park system. With a current total asset value of parks of $26,754,570 and 112.22 acres of developed parks, the per acre value of the City’s existing parks is $238,400. The estimated current population of the City is 33,960. The level of service adopted by the City is 3.3 acres per 1,000 people which requires 112.07 acres for a population of 33,960. When compared to City’s current 112.22 acres of developed park area, the City has successfully maintained the adopted level of service with a surplus of only 0.15 acres. 2.4 Projected Growth/Required New Developed Parks A planning horizon of 10 years was considered in the 2017 Study and is also used as the planning period for this update. The population growth over the next 10 -year period is expected to be at a rate of 4.5%, based on the City’s Comprehensive Plan. With this expected growth rate, it is estimated that the population in 2032 will be 52,738 people (an increase of 18,778 peopl e). To City of Eagle – Park Impact Fee 2023 Update HECO Engineers pg. 6 EG 22-0418 maintain the same level of service of 3.3 acres per 1 ,000 people, the City will need to develop approximately 61.97 acres of new parks over the 10-year period. Adjusting for the very small surplus of 0.15 acres, a net new park acreage will need to be 61.82 by the year 2032. With a park value of $238,400 per acre, the average total cost to develop 61.82 acres of park is $14,737,888. See Table 4 below for summary of the growth projections and the new park area requirements, noting that development of parks does not typically follow the annual incremental development shown. Table 4. Park Growth Projections Year Population Park Acres Required New Park Acres Development Costs 2022 33,960 112.07 2023 35,488 117.11 5.04 $1,201,536 2024 37,085 122.38 5.27 $1,256,368 2025 38,754 127.89 5.51 $1,313,584 2026 40,498 133.64 5.75 $1,370,800 2027 42,320 139.66 6.02 $1,435,168 2028 44,224 145.94 6.28 $1,497,152 2029 46,214 152.51 6.57 $1,566,288 2030 48,294 159.37 6.86 $1,635,424 2031 50,467 166.54 7.17 $1,709,328 2032 52,738 174.04 7.50 $1,788,000 Totals 61.97 $14,773,648 Less Surplus 0.15 $35,760 Net Totals 61.82 $14,737,888 2.5 Impact Fee Calculation The funds to develop the 61.82 acres of new parks will be collected from impact fees charged to new development since these costs will be entirely growth related to maintain the level of service. The costs for the development of the new park acreage in the amount of $14,737,888 is City of Eagle – Park Impact Fee 2023 Update HECO Engineers pg. 7 EG 22-0418 to be collected from the anticipated growth increase of 18,779 people. To collect on a residential unit basis, a typical household size of 2.65 people, based on the 2020 census, was used to establish the residential unit impact fee. The Impact Fee calculation is detailed in Table 5. Table 5. Impact Fee Calculation Park Impact Fee Population (2032) 52,738 Population (2022) 33,960 Population Increase (2023-2032) 18,778 New Developed Park Acreage Required (to meet Level of Service = 3.3 acres/1000 people) 61.97 Less Existing Surplus Acreage of Developed Parks 0.15 Net Acreage of New Developed Parks 61.82 Value of Existing Parks per Acre $238,400 New Park Costs 𝑵𝒄𝒘 𝑷𝒂𝒓𝒌 𝑪𝒐𝒓𝒓𝒓=𝟎𝟎.𝟎𝟎 𝑨𝒄𝒓𝒄𝒓 𝒘 $𝟎𝟎𝟎,𝟎𝟎𝟎 $14,737,888 Impact Fee per Capita 𝑯𝑭𝑪𝑨𝑷=$𝟎𝟎,𝟎𝟎𝟎,𝟎𝟎𝟎 𝟎𝟎,𝟎𝟎𝟎 𝑷𝒄𝒐𝒐𝒌𝒄 $784.82 Impact Fee per Residential Unit (rounded to nearest $1) 𝑯𝑭=$𝟎𝟎𝟎.𝟎𝟎 𝒘 𝟎.𝟎𝟎 𝑷𝒄𝒐𝒐𝒌𝒄/𝑯𝒐𝒓𝒓𝒄𝒉𝒐𝒌𝒄 $2,080 It should be noted that adjustments in the estimated growth rate will not significantly change the impact fee collected to maintain the level of service. If the project growth rate doesn’t occur at the level anticipated, the required new park acreage would reduce accordingly. By using an approach that uses the average value of existing parks as the basis for the impact fee, the projected growth rate is not a significant factor in the amount of the fee. City of Eagle – Park Impact Fee 2023 Update HECO Engineers pg. 8 EG 22-0418 2.6 Proposed Capital Improvement Plan Using the above adjusted average costs and updated land values along with the removal of the parks developed since the 2017 Study, the Capital Improvement Plan (CIP) shown in Figure 8 of the 2017 Study is revised and presented in Table 6 below. The CIP identifies projects that are impact fee eligible. All projects are 100% growth related except for the Maintenance Facility which must be funded using a proportionate share basis. Table 6. Proposed Capital Improvement Plan 2023-2032 Proposed Capital Improvement Plan Park Area Description Acres Land Value Improvement Value Total CIP Value Pamela Baker Park (Undeveloped) 18.35 City Owned $3,018,575 $3,018,575 Charlie Wood Park 12.84 City Owned $2,112,180 $2,112,180 Shooting Sports Park 84.0 City Owned $20,874,000 $20,874,000 Foothills Park (Spring Valley) 519.04 City Owned $7,526,080 $7,526,080 West Park Place (Terra View) 21.2 In Negotiations $3,487,400 $3,487,400 Mace Park 3.2 City Owned $577,600 $577,600 Eagle Regional Sports Complex (Spring Valley) 94.45 City Owned $23,470,825 $23,470,825 Eastside River Access Park 1.0 $7,500 $164,500 $172,000 Maintenance Facility (1) City Owned $572,000 $572,000 Impact Fee Studies TBD Total Amount of CIP Improvements $61,810,660 (1) Note: Maintenance Facility must be funded using Proportionate Share criteria. Proportionate Share in IF Population Increase: 18,778 Projected Population: 52,738 Proportionate Share in IF: 35.6% City of Eagle – Park Impact Fee 2023 Update HECO Engineers pg. 9 EG 22-0418 3.0 SUMMARY/RECOMMENDATIONS ❖ Updated Impact Fee Impact Fee $ Per Residential Unit Park Impact Fee $2,080.00 Pathway Impact Fee (No Change) $330.50 Total Impact Fee $2,410.50 ❖ Impact Fee History Impact Fee History Parks Pathway Total Impact Fee Initial Hofman Study, 1999 $545.69 $0.00 $545.69 2004 Update $1,752.14 $0.00 $1,752.14 2011 Update $1,314.29 $0.00 $1,314.29 2017 Update $1,115.72 $330.50 $1,446.22 2023 Update $2,080.00 $330.50 $2,410.50 ❖ Given that this is the fourth update to the initial study completed in 1999, it is recommended that the City undertake a new impact fee study after the review and planning of the City’s pathways/trailways is completed. The new study should review the actual costs of specific amenities within each park rather than continued adjustments using construction cost indexes and should review the pathway impact fee as it relates to any newly adopted pathway/trailway plan. Currently, the pathway impact fee only applies to improvements planned to the City’s greenbelt system along the Boise River. ❖ The City should review and amend the Capital Improvement Plan on an annual basis to better align with the City’s planned improvements and budgeting process. The review and amendment of the CIP should be completed through the Development Impact Fee Advisory Committee and adopted by the City Council. ❖ The City should update the Impact Fee Study at least every five-years. City of Eagle – Park Impact Fee 2023 Update HECO Engineers Appendix A EG 22-0418 APPENDIX A EXISTING PARK INVENTORY AND VALUE Appendix A - Existing Park Inventory and Value Value of Existing Parks (by applying Land and Improvement Costs) Breakdown of existing parks Acreage Land Value A B C D E F Undeveloped Parks (Land Value Only) Mace Park (Undeveloped)3.20 $24,000 Pamela Baker Park (Undeveloped)18.35 $770,700 Charlie Wood Park (Undeveloped)12.84 $96,300 Eagle Regional Sports Park (Spring Valley)94.45 $3,966,900 Shooting Sports Park/Foothills Park (Spring Valley)603.04 $4,522,800 Total Undeveloped Acres Owned 731.88 Developed Parks Friendship Park 1.30 $54,600 $234,650 Arboretum Park 0.51 $21,420 $83,895 Plaza Drive Park 2.70 $113,400 $444,150 Orval Krasen Park 2.42 $101,640 $436,810 Heritage Park (1)0.48 $20,160 $1,250,000 Guerber Park 15.20 $638,400 $6,794,400 Reid Merrill Park 8.92 $374,640 $2,216,620 River Access Linder 3.02 $22,650 $369,460 Pamela Baker Park 4.67 $196,140 $842,935 Riverside Wildlife Park (Merrill)9.60 $72,000 $220,800 Eagle Sports Complex Skate Board Park 5.05 $37,875 $911,525 BMX Track (south)(2)6.00 $45,000 $387,000 Bike Downhill Skills Course 10.10 $75,750 $146,450 Reservoir Site (outside fence)2.64 $19,800 $38,280 Hell Mary Trail Parcel 4.51 $33,825 $65,395 Low Rider Trail Parcel 7.42 $55,650 $107,590 Dog Park 2.00 $15,000 $361,000 Velodrome Area 4.20 $31,500 $60,900 Trails 21.48 $161,100 $311,460 Total Developed Park Lands, acres 112.22 $11,471,250 $1,117,075 $590,260 $528,045 $2,786,920 $2,216,620 $8,044,400 Developed Acres Reqd for Population of 33,960 112.07 Total Current Value Parks $26,754,570 Developed Park Acreage Surplus or Deficiency 0.15 Developed Park Acreage Deficiency 0.00 Actual Developed Parks per 1,000 3.30 Value to Cure Deficiencies $0 Per Acre Value of Parks (including Land Value) $238,400 Notes: (1) Inserted Value - Category "F" Improvement Cost undervalues Heritage Park due to the small area of the park. (2) Acreage Value + $300,000 to account for restroom and parking lot; Using Category "D" Improvement Cost (similar to Skate Park) overestimates the value. Improvement Value By Category 63.40