Arizona Revised Statute 9-463.05, allows a municipality to assess development fees to offset costs to the municipality associated with providing necessary public services to a development, including the costs of infrastructure, improvements, real property, engineering and architectural services, as well as, financing and professional services required for the preparation or revision of a development fee, including the required land use assumptions and infrastructure improvements plan.  Municipalities are required to update their land use assumptions and infrastructure improvements plan at least every five years.

Development fees assessed by the City are required to result in a beneficial use to the development and may not exceed a proportionate share of the cost of necessary public services to the development.  Development fees can only be used for public services identified in the adopted infrastructure improvements plan including construction, acquisition or expansion of public facilities.  Development fees may not be used for repair, operation, or maintenance of existing or new public services or facility expansions.

The City contracted with TischlerBise to document Land Use Assumptions (LUA), prepare the Infrastructure Improvements Plan (IIP), and update development fees within the Flagstaff Development Fee Service Areas.  This update of the City's Infrastructure Improvements Plan and associated update to its development fee includes both Fire and Police Facilities. 

Flagstaff currently charges development fees to residential development based on the type of unit: single-family or multi-family.  The updated plan proposes assessing fees per dwelling unit, based on the type of unit and number of bedrooms. For nonresidential development, the City currently charges development fees based on three development types: industrial/flex, commercial/retail, and office/institutional. The updated plan proposes three additional development types: hotel, nursing home, and assisted living.  Fees provided in the report represent the maximum allowable fees; however, the City may adopt fees that are less than the amounts provided in the report. 

Should the City Council choose to continue the process to move towards the adoption of new fees, the proposed schedule for adoption is as follows:

December 4, 2019, and December 17, 2019

• Publish the notice of public hearing on Land Use Assumptions (LUA) and Infrastructure Improvement Plan (IIP)
• Publish the draft plan on the City website

January 7, 2020 - City Council Discussion

• Presentation to Council by TischlerBise
• Council asked to provide direction on the process of adopting revised Public Safety Development Fees

February 18, 2020 - City Council Agenda Item

• Public hearing on LUA and IIP

March 18, 2020

• Provide notice of public hearing on development fees
• Publish draft fee report on the municipal website

April 7, 2020 - City Council Agenda Item

• Adopt LUA and IIP

May 19, 2020 - City Council Agenda Item

• Hold the public hearing on development fees

July 7, 2020 - City Council Agenda Item

• Adopt Public Safety Development Fees

September 21, 2020

• Updated Development Fees are effective