HomeMy WebLinkAboutResolution No. 197-17 - PIFAdjustmentTheCommonsMayowoodProject
RESOLUTION
WHEREAS, on May 4, 2016, the Building Safety Department received an application for
The Commons on Mayowood Project; and,
WHEREAS, since January 2004, the City calculation of the Plant Investment Fee
(“PIF”) has been performed as of the date of a complete Application for a Building Permit; and,
WHEREAS, all other Development Fees and Charges contained in a Development
Agreement increase every year on August 1 based on the change in Engineering News
Record Construction Cost Index for Minneapolis; and,
WHEREAS, filing fees for Planning and Zoning applications change periodically on
January 1 of any given year; and,
WHEREAS, on October 19, 2015, the City Council adopted a resolution amending the
Sewer Utility rates for 2016-2020 including the PIFs. By that resolution, the Council
eliminated the option to calculate the PIF using the number of plumbing fixture units; and,
WHEREAS, the developer signed the Development Agreement on January 7, 2016, and
the City signed it on February 1, 2016. There is no language in the executed Development
Agreement regarding the PIF, the manner in which it is to be calculated, or amounts due; and,
WHEREAS, neither the initial (10/2/15) nor the final (12/15/15) Development
Agreements included any language regarding the PIF, the manner in which it is to be
calculated, or amounts due; and,
WHEREAS, the developer claims their consultant calculated and the developer paid in
April of 2016 “its estimated PIF along with other City of Rochester Fees based on the
Development Agreement;” and,
WHEREAS, the developer paid the estimated development charges by check shortly
after closing on April 15, 2016, including an amount of $235,880 for the Project PIF; and,
WHEREAS, the City had not calculated or prepared or sent an official invoice to the
developer for the Project charges; and,
WHEREAS, in addition to the wrong calculation of the PIF by the developer’s
consultant, City staff noted several other errors in calculating other development charges;
and,
WHEREAS, the actual amount of the PIF paid by the Developer was based on 2015
rates. If those rates were adjusted for 2016 rates, the PIF payment should have been $37,500
more than previously paid to the City.
NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of Rochester
that the set of unique circumstances that lead to the developer’s calculation of the amount of
the Plant Investment Fee (PIF) for The Commons on Mayowood Project provides the basis for
an adjustment by the Council as to the final amount of the PIF for The Commons on
Mayowood Project.
BE IT FURTHER RESOLVED by the Council that the City staff by failing to notify the
developer or developer’s consultant of the Council’s approval of Resolution #621-15 on
October 19, 2015, to eliminate a previously available option for calculating the PIF for the
Project resulted in a significant increase of $158,520 in the PIF for the Project.
BE IT FURTHER RESOLVED by the Council that the developer for The Mayowood
Commons Project shall pay to the City, and the City shall accept from the developer, the
amount of $37,500 within 30 days of the City Council’s adoption of this Resolution in complete
satisfaction of the developer’s PIF obligation for The Commons on Mayowood Project.
BE IT FURTHER RESOLVED by the Council that the Council’s decision to reduce the
amount of the PIF for The Commons on Mayowood Project is in response to the unique and
unusual facts of that case and shall not be construed as or set a precedent for future PIF
adjustment requests that may come before the Council.
PASSED AND ADOPTED BY THE COMMON COUNCIL OF THE CITY OF
ROCHESTER, MINNESOTA, THIS __________ DAY OF _______________, 2017.
___________________________________
PRESIDENT OF SAID COMMON COUNCIL
ATTEST: __________________________
CITY CLERK
APPROVED THIS _____ DAY OF ______________________, 2017.
___________________________________
MAYOR OF SAID CITY
(Seal of the City of
Rochester, Minnesota)
Res15\\Resolu.PIF CommonsMayo