Section 3806. Traffic-Mitigation Fee

3806.1 Scope of section.

This § 3806 is applicable to all proposed projects located inside of a Traffic-Mitigation Zone.

3806.2 General.

A Traffic-Mitigation Fee is a payment that, by authority of Charter Article II, §§ (40) and (47), must be paid for projects that meet the criteria established in § 3802.3 {"Within Traffic-Mitigation Zone"}.

3806.2.1 Application and processing fee.

An application to begin the required Traffic-Mitigation Fee process must be:

1. made in the form and within the time frame set forth in the rules and regulations adopted under this Chapter; and

2. accompanied by a processing fee in the amount set by these rules and regulations.

3806.3 Assessment of fee.

3806.3.1 Trip formula.

The rules and regulations adopted under this Chapter must establish:

1. procedures for determining the number of trips attributable to various types of projects in a particular Traffic-Mitigation Zone or Subzone; and

2. adjustment factors for calculating the number of non-single-occupant-vehicle trips attributable to various types of projects.

3806.3.2 Fee Rates.

The fee rate per trip is as set by the Board of Estimates, in consultation with the Director, for each Zone.

3806.3.2.1 Temporary limitation on Fee Rate increases.

For the period beginning when a fee rate is initially set for a Zone, and ending on December 31, 2016, the Board of Estimates may not increase the fee rate for that Zone more often than once every 5 years.

3806.3.3 Fee formula.

The amount of the Traffic-Mitigation Fee assessed on a specific project is determined by multiplying:

1. the applicable rate per trip, as of the date that the permit is applied for, for the Zone where the project is located, by

2. the number of trips that the Department of Transportation attributes to the project using the procedure established under § 3806.3.1.

3806.4 Trip-Generation Credits.

3806.4.1 General.

The Director must issue trip-generation credits to any proposed project that meets the requirements of this § 3806.4. Each credit issued reduces by 1 the number of trips used to calculate the amount of the Traffic-Mitigation Fee under § 3806.3.

3806.4.2 Authorized credits.

Trip-generation credits are authorized as follows.

3806.4.2.1 Negotiated agreement.

The Director may agree to issue trip-generation credits for a proposed project if:

1. the Mayor and City Council enter into a binding, written mitigation agreement with the developer of the project that requires the performance of specific actions that the Director determines will reduce the number of trips actually generated by the project,

2. the mitigation agreement requires the developer to require all subsequent purchasers or occupants of the property to abide by the ongoing requirements of the mitigation agreement,

3. the mitigation agreement includes a mechanism making it binding on all future successors and assigns who may acquire any interest in the property in the future,

4. the mitigation agreement requires the Director to issue a number of credits equivalent to the number of trips that the director calculates will be avoided through the actions agreed to by the developer, and

5. the mitigation agreement, together with any adjustment factors calculated using the procedure established under § 3806.3.1(2), does not reduce the total number of trips that would otherwise be used to calculate the Traffic-Mitigation Fee by more than 50%.

3806.4.2.2 Change in occupancy within 1 year.

For the change in occupancy of a structure that has been vacant for less than 1 year before the date of application for a permit, the Director must issue trip-generation credits equivalent to the number of trips attributable to the previous use, as calculated using the procedure established under § 3806.3.1 {"Trip formula"}.

3806.4.3 Buy-out of credits.

An owner or occupier of property that has benefitted from the issuance of trip-generation credits may not change the use of the property in any way that would no longer qualify the property for 1 or more trip-generation credits previously issued unless the owner or occupier first cancels the previously issued credits.

3806.4.3.1 Formula.

To cancel those credits, the owner or occupier must pay to the Director of Finance an amount equal to the greater of:

1. the number of trip-generation credits being canceled, multiplied by the Traffic-Mitigation Fee rate that was in force for the Zone when the credits were issued, or

2. the number of trip-generation credits being canceled, multiplied by the Traffic-Mitigation Fee rate that is in force in the Zone when the credits are cancelled.

3806.4.4 Obligation created by acceptance of credits.

The acceptance of trip-generation credits under this § 3806.4 creates a binding obligation on the persons accepting the credits to fulfill the representations and agreements that allowed the credits to be issued. In addition to any other remedy or enforcement action, the Director may enforce these obligations by seeking both legal and equitable remedies.

3806.5 Right-of-way dedication set-off.

If an applicant controls property that the Director determines to be necessary for the construction of a traffic-mitigation project, the Director may accept the dedication of the needed property to the City's use and issue a set-off credit toward the Traffic-Mitigation Fee assessed on a project in exchange. The total amount of the Traffic-Mitigation Fee to be paid would then be reduced by the appraised value of the property dedicated to City use.

3806.6 Payment of Fees.

3806.6.1 $50,000 or less. If the Traffic-Mitigation Fee assessed for a proposed project is $50,000 or less, the Fee must be paid to the Director of Finance in full before any permits for the work are issued.

3806.6.2 More than $50,000.

If the Traffic-Mitigation Fee assessed for a proposed project is more than $50,000, the Director of Transportation may negotiate installment payments to be made over a period of up to 5 years from the issuance of a building permit for all amounts in excess of $50,000. The initial payment of at least $50,000 must be paid to the Director of Finance in full before any permits for the work are issued. Any installment plan under this § 3806.6.2 requires the approval of the Board of Estimates to become effective.

3806.6.2.1 Interest to be charged on installment payments.

If a Traffic-Mitigation Fee is to be paid in installments under an agreement authorized by § 3806.6.2, installment payments must include an additional interest charge at the current City borrowing rate as determined by the Director of Finance.