RE: SDC Fees - Molalla

From: Mac Corthell

Sent: Wed May 19 13:45:25 2021

To: Dan Zinder; Bramlitt, Mitch; Shawn Nguy

Subject: RE: SDC Fees - Molalla

Importance: Normal

Attachments: image001.png;

Good Afternoon Mr. Bramlitt and Mr. Nguy,

Dan Zinder forwarded me your message and I want to provide a response to your inquiry. I’ve broken my response into two parts.

“We will not Purchase the site until we are confident that we will be able to get permits, That the deal will be economically feasible once we have ascertained the extents of what will be required by the city / County for this project and that the Developer has constructed the Improvements that he is responsible for constructing per the purchase agreement.”

1. Your building permit authorization is approved and available for pickup upon payment of SDC’s. This extinguishes any concern about whether or not you can obtain permits.
2. The city is not party to the purchase agreement with the developer and cannot comment on this concern.
3. Here are the conditions of approval from your building permit authorization, the ones that are stricken do not apply. I’m providing these so you can conduct your economic feasibility analysis as needed:

CONDITIONS

Specific Requirements to This Site:

A. Street:

1. This project is within the Cascade Center development and proposal complies with development plan.

2. Certificate of Occupancy – No certificate of occupancy shall be granted until conditions are met by Cascade Center project for completion and acceptance of all public improvements.

3. Transportation SDC’s – In accordance with MMC 13.14 this design review does increase the impacts to the public improvement facility and is therefore not exempt from transportation SDC charges. SDC’s shall be calculated in accordance with the SDC methodology.

B. Storm:

1. This project is within the Cascade Center development and AutoZone development shall connect to storm connections in Cascade Center project.

2. Certificate of Occupancy – No certificate of occupancy shall be granted until conditions are met by Cascade Center project for completion and acceptance of all stormwater and water quality improvements.

3. Stormwater SDC’s – In accordance with MMC 13.14 this design review does increase the impacts to the public improvement facility and is therefore not exempt from stormwater SDC charges. SDC’s shall be calculated in accordance with the SDC methodology.

C. Sanitary:

1. This project is within the Cascade Center development and AutoZone development shallconnect to sanitary connections in Cascade Center project.

2. Certificate of Occupancy – No certificate of occupancy shall be granted until conditions are met by Cascade Center project for completion and acceptance of all sanitary sewer improvements.

3. Sanitary SDC’s – In accordance with MMC 13.14 this design review does increase the impacts to the public improvement facility and is therefore not exempt from sanitary SDC charges. SDC’s shall be calculated in accordance with the SDC methodology.

D. Water:

1. This project is within the Cascade Center development and AutoZone development shall connect to water connections in Cascade Center project.

2. Certificate of Occupancy – No certificate of occupancy shall be granted until conditions are met by Cascade Center project for completion and acceptance of all water improvements.

3. Water SDC’s – In accordance with MMC 13.14 this design review does increase the impacts to the public improvement facility and is therefore not exempt from water SDC charges. SDC’s shall be calculated in accordance with the SDC methodology.

E. Parks:

1. Parks SDC’s – In accordance with SMC 13.70.110 this commercial design review is exempt from parks SDC charges.

F. Franchise Utility Services:

1. All utilities to the project shall be served underground services. No overhead crossings of public right of way shall be approved by the city.

DESIGN REQUIREMENTS & POLICIES

General Requirements:

A. For residential development projects, all public improvements shall be completed and accepted by the Public Works Department prior to issuance of building permits. No connections to City service shall be allowed until public improvements are completed. For commercial and industrial development projects, all public improvements shall be completed and accepted by the Public Works Department prior to issuance of any occupancy.

B. From the materials submitted, it appears that the storm drain, domestic water and sanitary sewer facilities will be obtained from main line connections and/or extensions. Separate engineering drawings reflecting the installation of these public utilities will be required.

C. No construction of, or connection to, any existing or proposed public utility/improvements will be permitted until all plans are approved by Staff, all fees have been paid, all necessary permits, bonding, right-of-way and easements have been obtained and approved by staff, and Staff is notified a minimum of 24 hours in advance.

D. Staff reserves the right to require revisions/modifications to the public improvement construction plans and completed street improvements, if additional modifications or expansion of the sight distance onto adjacent streets is required.

E. All public utility/improvement plans submitted for review shall be based upon a 22”x 34” format and shall be prepared in accordance with the City of Molalla Public Work’s Standards.

F. All survey monuments on the subject site or that may be subject to disturbance within the construction area, or the construction of any off-site improvements shall be adequately referenced and protected prior to commencement of any construction activity. If the survey monuments are disturbed, moved, relocated or destroyed as a result of any construction, the project shall, at its cost, retain the services of a registered professional land surveyor in the State of Oregon to restore the monument to its original condition and file the necessary surveys as required by Oregon State law. A copy of any recorded survey shall be submitted to Staff.

G. Plans submitted for review shall meet the requirements described in Section 1 of the Molalla Standard Specifications for Public Works Construction.

H. ~~The applicant shall contact the Oregon Water Resources Department and inform them of any~~ ~~existing wells located on the subject site. Any existing well shall be limited to irrigation purposes~~ ~~only. Proper separation, in conformance with applicable State standards, shall be maintained~~ ~~between irrigation systems, public water systems, and public sanitary systems. Should the~~ ~~project abandon any existing wells, they shall be properly abandoned in conformance with State~~ ~~standards and supply the City with a copy of the final document.~~

I. ~~Sanitary sewer designs require review by Oregon Department of Environmental Quality.~~

~~Applicant shall be responsible for submission of plans to state agency and all associated fees.~~

~~Applicant’s Enginee r will be required to subm it final repo rt to DEQ and pro v ide a c o py o f t he~~

~~report to the City.~~

J. ~~All utilities will be stubbed out to the far end of each street for future extension. The project~~

~~shall utilize ex isting w ate r, sew er, and sto rm wat er ‘stub -o uts’ wherev er po ssible. W ater fo r~~ ~~domestic and fire protection shall be looped through the pro po sed site . Any ‘st ub -o uts’~~ ~~determined to be not needed for the proposed development or any future development of the~~ ~~subject property shall be abandoned in accordance with the Molalla Standard Specifications for~~ ~~Public Works Construction.~~

K. All public improvement designs shall meet the requirements of the Molalla Standard

Specifications for Public Works Construction as amended by the Public Works Director.

L. ~~General Easements – A 10-foot-wide public utility easement shall be dedicated to the City~~ ~~adjacent to all public right-of-way and no structures are allowed to encroach into the easement.~~ ~~Applicant shall be required to submit a legal description and exhibit map for review and sign City~~ ~~easements. Once completed, applicant will be required to record easements with the County~~

~~Reco rder’s Office and re turn the original document to the City prior to final occupancy.~~

M. ~~General Wetland Requirements – The applicant will be required to provide Public Works with a~~ ~~letter of concurrence from the Department of State Lands regarding any wetlands on the~~ ~~subject property.~~

N. General Erosion Control – The applicant shall install, operate and maintain adequate erosion control measures in conformance with the standards adopted by the City of Molalla and DEQ during the construction of any public/private utility and building improvements until such time as approved permanent vegetative materials have been installed. Applicant or Applicant’s Contractor shall be responsible for all erosion control requirements under the 1200-C permit and shall coordinate directly with DEQ for questions related to 1200-C permit compliance.

“I’ve worked for AutoZone for 30 years and have permitted several hundred AutoZone stores and to this date I’ve never had a city request SDC fees be paid prior to the plans being reviewed. This is extremely abnormal. Before AutoZone can write a check for $103K we will need to have some agreement with the City that the money (minus review fees) will be refunded to us in the event that the deal falls through. Can the City provide a letter to that effect?”

1. Timing of payment. Our city code (provided below) requires SDC’s to be paid prior to release of building permits, please note the highlighted sections below. We recently conducted an informal survey of other cities in Oregon through the Oregon Planners Network regarding this very issue and every city that responded had a similar timing provision, so this is common here in Oregon.

2. Plan Review. The plans are reviewed and approved by the Planning Department prior to collection of SDC fees. Only once your project is approved by Planning are you authorized to get building permits. At that point you are required to pay SDC’s then receive and take your authorization to the county to obtain the actual building permits. The county only assures the build meets state building code and once complete circulates a certificate of occupancy to ensure you have completed any conditions, and that the complete build matches your city planning approval. That is to say your plans were reviewed and are approved subject to payment of SDC’s, and you must meet state building code in constructing it which is assured by the County Building Official.

3. SDC Refunds. The city does not issue SDC refunds, but the property would receive a credit for the amount paid if the project does not move forward from this point, which I understand does not help you given the structure of your purchase and sale deal. I am sympathetic to your position, but the city’s policies are set to protect the interests of the citizens and ensure administrative feasibility, we cannot wade in to the innumerable deal structures that may make them inconvenient from time to time.

I hope this helps extinguish some of your concerns. Please feel free to reach out to me if you have additional questions.

13.14.090 Collection of charge.

A. The system development charge is payable upon issuance of:

1. A building permit;

2. A development permit;

3. A permit to connect to the water system; or

4. A permit to connect to the sewer system.

B. If no building, development, or connection permit is required, the system development charge is payable at the time the usage of the capital improvement is increased.

C. If development is commenced or connection is made to the water or sewer systems without an appropriate permit, the system development charge is immediately payable upon the earliest date that a permit was required.

D. The City Recorder shall collect the applicable system development charge when a permit that allows building or development of a parcel is issued or when a connection to the water or sewer system of the City is made. However, in lieu of payment under this section, eligible applicants may exercise the right under ORS Chapter 223 to pay the charge in assessments pursuant to the Bancroft Bonding Act. In such case, the charge shall become a first lien against the property served and have the same effect as an assessment lien for a public improvement and shall be duly recorded in the Docket of City Liens.

E. The City Recorder shall not issue such permit or allow such connection until the charge has been paid in full or provision has been made to pay the charge under the Bancroft Bonding Act, unless an exemption is granted pursuant to Section 13.14.100. (Ord. 1999-14 §1; Ord. 1991-6 §1)

Sincerely,

Macahan “Mac” Corthell, J.D. | Planning Director

City of Molalla

117 N Molalla Ave. | PO Box 248 |Molalla, OR 97038

Phone - 503.829.6855

Fax – 503.829.3676

Email – mcorthell@cityofmolalla.com

Website – http://www.cityofmolalla.com

CONFIDENTIALITY NOTICE: The information contained in this email message, including any attachments, is for the sole use of the intended recipient(s) and may contain confidential and privileged information. Any unauthorized review, use, disclosure or distribution is prohibited. If you are not the intended recipient and have received this communication in error, please contact the sender by reply email and destroy all copies of the original message. Thank you.

From: Dan Zinder <dzinder@cityofmolalla.com>

Sent: Tuesday, May 18, 2021 8:19 AM

To: Bramlitt, Mitch <mitch.bramlitt@autozone.com>; Shawn Nguy <snguy@navixeng.com>

Cc: Mac Corthell <mcorthell@cityofmolalla.com>

Subject: RE: SDC Fees - Molalla

Thanks Mr. Bramlitt,

I’m forwarding this on to my supervisor who can make a determination on this question.

Best,

Dan Zinder

503.759.0226

From: Bramlitt, Mitch <mitch.bramlitt@autozone.com>

Sent: Tuesday, May 18, 2021 6:08 AM

To: Shawn Nguy <snguy@navixeng.com>

Cc: Dan Zinder <dzinder@cityofmolalla.com>

Subject: RE: SDC Fees - Molalla

Mr. Zinder, AutoZone is under contract to purchase the lot that we are proposing to build this AutoZone store. We will not

Purchase the site until we are confident that we will be able to get permits, That the deal will be economically feasible once we have ascertained the extents of what will be required by the city / County for this project and that the Developer has constructed the

Improvements that he is responsible for constructing per the purchase agreement.

I’ve worked for AutoZone for 30 years and have permitted several hundred AutoZone stores and to this date I’ve never had a city request SDC fees be paid prior to the plans being reviewed. This is extremely abnormal. Before AutoZone can write a check for $103K we will need to have some agreement with the City that the money (minus review fees) will be refunded to us in the event that the deal falls through. Can the City provide a letter to that effect?

Mitch Bramlitt

Regional Preconstruction Manager

AutoZone Parts, Inc.

123 South Front St.

Memphis, TN. 38103

901-495-8714

Mitch.bramlitt@autozone.com

From: Shawn Nguy <snguy@navixeng.com>

Sent: Monday, May 17, 2021 4:58 PM

To: Bramlitt, Mitch <mitch.bramlitt@autozone.com>

Subject: FW: SDC Fees - Molalla

Mitch – See below. Let me know how you want to proceed.

Shawn Nguy (“Wie”), P.E.

Navix Engineering

10135 SE Sunnyside Road, Suite 200; Clackamas, OR 97015

o: 503.659.9500 | d: 971.409.4042 | f: 503.659.2227 | c: 971.409.4042

snguy@navixeng.com | linkedin.com/in/shawnnguy/

[www.navixeng.com]www.navixeng.com

Professional Engineer – WA, OR

Confidentiality Disclaimer:

This communication, including any attachments, is the property of Navix Engineering and may contain confidential, proprietary, and/or privileged information. Unauthorized use of this communication is strictly prohibited and may be unlawful. If you have received this communication in error, please immediately notify the sender by reply e-mail and destroy all copies of the communication and associated attachments.

From: Dan Zinder <dzinder@cityofmolalla.com>

Sent: Monday, May 17, 2021 2:47 PM

To: Shawn Nguy <snguy@navixeng.com>; Gerald Fisher <gfisher@cityofmolalla.com>

Cc: Sam Miller <smiller@cityofmolalla.com>; Mac Corthell <mcorthell@cityofmolalla.com>; Julie Larson <jlarson@cityofmolalla.com>

Subject: RE: SDC Fees

Shawn,

The City’s authorization letter is ready for pickup upon SDC payment.

Best,

Dan Zinder

503.759.0226

From: Dan Zinder

Sent: Monday, May 10, 2021 10:52 AM

To: 'Shawn Nguy' <snguy@navixeng.com>; Gerald Fisher <gfisher@cityofmolalla.com>

Cc: Sam Miller <smiller@cityofmolalla.com>; Mac Corthell <mcorthell@cityofmolalla.com>; Julie Larson <jlarson@cityofmolalla.com>

Subject: RE: SDC Fees

SDC fees are due prior to release of the authorization letter + stamped plans and we are only outfitted to take fees that size via check. County will not initiate review before they have those.

I’ll let you know when the review documents are ready.

Dan Zinder

503.759.0226

From: Shawn Nguy <snguy@navixeng.com>

Sent: Monday, May 10, 2021 10:49 AM

To: Dan Zinder <dzinder@cityofmolalla.com>; Gerald Fisher <gfisher@cityofmolalla.com>

Cc: Sam Miller <smiller@cityofmolalla.com>; Mac Corthell <mcorthell@cityofmolalla.com>

Subject: RE: SDC Fees

Thanks, Dan.

Just to clarify, are you saying that the SDC fees are due before we can submit to the county plans for building permit review or before the county can actually issue the building permit?

Shawn Nguy (“Wie”), P.E.

Navix Engineering

10135 SE Sunnyside Road, Suite 200; Clackamas, OR 97015

o: 503.659.9500 | d: 971.409.4042 | f: 503.659.2227 | c: 971.409.4042

snguy@navixeng.com | linkedin.com/in/shawnnguy/

[www.navixeng.com]www.navixeng.com

Professional Engineer – WA, OR

Confidentiality Disclaimer:

From: Dan Zinder <dzinder@cityofmolalla.com>

Sent: Monday, May 10, 2021 10:37 AM

To: Shawn Nguy <snguy@navixeng.com>; Gerald Fisher <gfisher@cityofmolalla.com>

Cc: Sam Miller <smiller@cityofmolalla.com>; Mac Corthell <mcorthell@cityofmolalla.com>

Subject: RE: SDC Fees

Shawn,

In case you haven’t yet received the SDC printout, I have attached it here. SDC fees are due prior to City issuance of the release letter to Clackamas County. As of now the project is still in review.

Best,

Dan Zinder

503.759.0226

From: Shawn Nguy <snguy@navixeng.com>

Sent: Friday, April 30, 2021 8:39 AM

To: Gerald Fisher <gfisher@cityofmolalla.com>

Cc: Sam Miller <smiller@cityofmolalla.com>; Dan Zinder <dzinder@cityofmolalla.com>

Subject: RE: SDC Fees

Hi Gerald,

Thanks for the info. We did submit building plans to Planning via this link:

Permit Plans_04-13-2021

1. The water meter size is 1 inch.
2. Total impervious area that AZ is responsible for is 12,800 sf (including bldg area).
3. The AutoZone Building is approximately 7,380 sf in size.

Let me know if you need anything else.

Thanks,

Shawn Nguy (“Wie”), P.E.

Navix Engineering

10135 SE Sunnyside Road, Suite 200; Clackamas, OR 97015

o: 503.659.9500 | d: 971.409.4042 | f: 503.659.2227 | c: 971.409.4042

snguy@navixeng.com | linkedin.com/in/shawnnguy/

[www.navixeng.com]www.navixeng.com

Professional Engineer – WA, OR

Confidentiality Disclaimer:

From: Gerald Fisher <gfisher@cityofmolalla.com>

Sent: Wednesday, April 28, 2021 9:52 AM

To: Shawn Nguy <snguy@navixeng.com>

Cc: Sam Miller <smiller@cityofmolalla.com>; Dan Zinder <dzinder@cityofmolalla.com>

Subject: RE: SDC Fees

Hi Shawn,

As far as the methodology, that would constitute a public records request. You can do a search on the City’s website (City Council meetings) or you can fill out a PR Request and submit it to the City Recorder. Link to City Recorder’s page. https://www.cityofmolalla.com/cityrecorder

As far as the SDC summary, we calculate the final SDC’s when the building plans are going to be submitted to Planning and they request SDC calculations from us. Are you submitting building plans to Planning and what date will they be submitted? Once I have that and the information needed to calculate the SDC’s then I can provide an estimate. Information needed is as follows: