AGENDA #4h
MEMORANDUM
TO: Mayor and Town Council
FROM: W. Calvin Horton, Town Manager
SUBJECT: Resolution Calling a Public Hearing on Proposed Modification of the Land Use Management Ordinance Related to Payment in Lieu of Recreation Area
DATE: January 9, 2006
PURPOSE
Adoption of the attached resolution would call a Public Hearing for March 20, 2006, to consider a potential amendment to the section of the Land Use Management Ordinance related to payments in lieu of recreation area.
BACKGROUND AND DISCUSSION
On October 10, 2005, the Council enacted changes to the Land Use Management Ordinance that changed the method used in calculating payments in lieu of recreation area. The modification required a shift away from private appraisals to values assessed by Orange County and/or Durham County for property tax purposes, and a multiplier established by the Council annually as part of the budget.
Provisions for payments in lieu of recreation area under the old Development Ordinance and the Land Use Management Ordinance were intended to reflect the value of the land after it is developed including all streets, utilities and infrastructure, and ready for construction of homes. The intent of the change was to provide a fair and consistent method of calculating payments in lieu.
However, the language in the Land Use Management Ordinance Text Amendment that was adopted in October 2005 included the following provision:
A per square foot value of the property shall be determined, as established by Orange County and/or Durham County for real estate tax purposes, including land value and the value of all existing structures and improvements. (emphasis added)
In the past, developers were not asked to include the cost of buildings and structures in their calculations for payments in lieu. For example, under the current ordinance, if a lot with an existing home is to be subdivided into a number of lots we would have to apply the value of the house to the formula. We believe that this could increase the payment in lieu costs significantly beyond the levels required in the past. We believe that the addition of the language requiring the valuation of structure was an oversight.
If the Council agrees, we would schedule a Public Hearing for March 20, 2006, to consider a potential correction to the section of the Land Use Management Ordinance related to payments in lieu of recreation area. Proposed changes to the ordinance are shown in Attachment A.
RECOMMENDATION
We recommend that the Council adopt the attached resolution to call a Public Hearing for March 20, 2006, to consider adjustment to Section 5.5 of the Land Use Management Ordinance related to the method for determining the price of payments in lieu of providing recreation area.
ATTACHMENTS