(Lou. Metro Ord. No. 66-2006, approved 4-17-2006; Lou. Metro Am. Ord. No. 159-2006, approved 9-18-2006)

   This chapter shall be known as "System Development Charges for Roadways."

(Lou. Metro Ord. No. 66-2006, approved 4-17-2006)

   (A)   Both population and employment within the Louisville and Jefferson County metropolitan area are growing and creating demands for new residential and nonresidential development. New development creates additional demand and need for public streets and roads.

   (B)   The protection of the health, safety and general welfare of the citizens of Louisville Metro requires that the public streets and roads be improved to meet the demands for these facilities.

   (C)   The report titled "System Development Charges for Roadways Report," by Gresham, Smith & Partners, sets forth reasonable methodologies and analyses to determine the impacts of various types of residential development on the public streets and roads, and to determine the cost to improve the public streets and roads through system development charges.

   (D)   There is both a rational nexus and a rough proportionality between the development impacts created by each type of development covered by this chapter and the transportation systems development charges that such development will be required to pay.

   (E)   This chapter creates a system by which system development charges for roadways will be used to expand or improve the public streets and roads, so that the payor will receive a corresponding benefit within a reasonable period of time after the charge is paid.

   (F)   The intent of this chapter is to ensure that adequate public streets and roads are available to serve growth and development in Louisville Metro, so that growth and development bear their proportionate share of the cost of improvements to these facilities.

   (G)   The intent of this chapter is to create a partnership between the private sector and the public sector for the improvement of public roadways. It is expressly acknowledged that it is not the intent of this chapter to collect any money in excess of the actual amount necessary to offset demands generated by a new development.

(Lou. Metro Ord. No. 66-2006, approved 4-17-2006)

   For the purposes of administration and enforcement of this chapter, unless otherwise stated in this chapter, the following rules of construction shall apply:

   (A)   In case of any difference in meaning or implication between the text of this chapter and any caption, illustration, summary table or illustrative table, the text shall control.

   (B)   The word "shall" is always mandatory and not discretionary. The word "may" is always permissive.

   (C)   Words used in the present tense shall include the future tense, and words used in the singular number shall include the plural number, and vice versa, unless the context clearly indicates the contrary.

   (D)   The word "party" indicates an individual, a corporation, a partnership, an incorporated association, or any other entity.

   (E)   Unless the context clearly indicates to the contrary, where a regulation involves two or more items, conditions, provisions, or events connected by the conjunction "and," "or," or "either...or," the conjunction shall be interpreted as follows:

      (1)   "And" indicates that all the connected terms, conditions, provisions or events shall apply.

      (2)   "Or" indicates that the connected items, conditions, provisions or events may apply singly or in any combination.

      (3)   "Either...or" indicates that the connected items, conditions, provisions or events shall apply singly but not in combination.

   (F)   The word "includes" shall not limit a term to the specific example, but is intended to extend its meaning to all other instances or circumstances of like kind or character.

   (G)   Where a road right-of-way is used to define Transportation Benefit District boundaries, that portion of the boundary road demarcating the Transportation Benefit District boundary may be considered as part of either, or both, Transportation Benefit Districts it bounds. Funds from either or both Transportation Benefit Districts that are defined by a common boundary road may be used to make improvements to that boundary road.

   (H)   If any one phrase, clause, sentence, provision, paragraph, section or part of this chapter shall judicially be declared to be invalid or unconstitutional, the remaining phrases, clauses, sentences, provisions, paragraphs, sections or parts thereof shall not be affected, but shall remain in full force and effect.

(Lou. Metro Ord. No. 66-2006, approved 4-17-2006)

   For the purpose of this chapter, the following definitions shall apply unless the context clearly indicates or requires a different meaning.

   ACCESSORY USE/STRUCTURE. A use or structure which is clearly incidental to, customarily found in association with, and serves a principal use; is subordinate in purpose, area, or extent to the principal use served; and is located on the same building site as the principal use. This term shall be deemed to include accessory service uses, accessory private garages, home occupations, accessory tennis courts, accessory parking facilities, ground-mounted satellite dish antennas and solar energy systems which have the purpose of providing energy for heating and cooling of the principal use.

   ADDITION. An extension or increase in floor area or height of a building or structure.

   ADMINISTRATIVE FEES. The costs of implementing or maintaining the System Development Charges Program, including salaries for any employees dedicated to the program, the costs of purchasing, running, maintaining and upgrading software needed to carry out the program, and any other expenses associated with the implementation or maintenance of the Program.

   ALTERATION. Any construction or renovation to an existing structure other than repair or addition.

   BUILDING. Any permanent structure designed or built for the support, shelter or protection of persons, animals, chattel or property of any kind. This term includes mobile homes, but does not include awnings, canopies or similar structures. In this chapter, references to buildings include structures.

   CONTRIBUTION OF LAND, MONEY, OR SERVICES. Contributions, payments, construction or dedications to Louisville Metro that are part of a class of capital facilities normally necessary to accomplish roadway improvements, excluding site-related improvements, which may be used to offset the required system development charge.

   DESIGNATED ROAD. A road classified as a Designated Road in the Appendix hereto, and any road within one of the Transportation Benefit Districts that is subsequently classified as a designated road by the System Development Charge Oversight Committee, and which roads will be improved as a result of the funds received by Louisville Metro Government under this chapter.

   DEVELOPMENT. The performance of any man-made change to improved or unimproved real estate, including, but not limited to, building or mining, dredging, filling, grading, paving, excavating, or drilling operations; the permanent storage of materials and equipment; the making of any material change in the use or appearance of any structure or land; the division of land into two or more parcels; any construction of improvements or clearing or the alteration of any land from a natural state to facilitate a residential, commercial, business, industrial or public use.

   DWELLING UNIT. Either a single room or two or more connected rooms sold or leased as a unit, and intended for occupancy for no less than 30 consecutive days or more by one family, and which, at a minimum, contains cooking, toilet and bathing facilities that are accessed independently from any similar such facilities in the same building. This term does not include hotel or motel rooms, extended-stay lodging facilities, nursing-home rooms, or assisted living units.

   MOBILE HOME. A structure, transportable in one or more sections, which is eight body feet or more in width and is 32 body feet or more in length, and which is built on a permanent chassis and designed to be used as a dwelling with or without a permanent foundation when connected to the required utilities, and includes the plumbing, heating, air-conditioning, and electrical systems contained therein.

   NEW RESIDENTIAL DEVELOPMENT. Development that triggers the application of this chapter.

   PAYOR. The party responsible for paying the system development charge.

   PERMIT. Any building or construction permit required by local ordinance or the Kentucky Building Code.

   PUBLIC ROAD. Any right-of-way created for vehicular traffic, over which the right of access is not restricted, and which is maintained with public funds.

   REPAIR. The reconstruction or renewal of any part of an existing building, for the purpose of its maintenance.

   SYSTEM DEVELOPMENT CHARGE. A monetary charge imposed by Louisville Metro upon development activity as a condition of issuance of a residential building permit, in order to pay for public roadway facilities needed to serve new growth and development, and to mitigate the impacts of the development activity on the transportation facilities of Louisville Metro, but not including any permit or application fee.

   SYSTEM DEVELOPMENT CHARGE ADMINISTRATOR. The party or parties designated by Louisville Metro to be responsible for administering this chapter.

(Lou. Metro Ord. No. 66-2006, approved 4-17-2006; Lou. Metro Am. Ord. No. 247-2007, approved 11-12-2007)

   (A)   Requirement. On and after the effective date of this chapter, any party who shall construct a new residential dwelling unit, including but not limited to single-family homes, apartments, patio homes, condominiums and mobile or manufactured homes, in one of the Transportation Benefit Districts, shall be obligated to pay a systems development charge for roadways. Parties who apply for building permits up to 60 days after the effective date of this chapter shall not be required to pay a system development charge.

   (B)   Payment of charges.

      (1)   A party applying for any building or construction permit for a development as set forth in subsection (A), above, shall pay a charge to the Systems Development Charge Administrator for the amount of space the building permit allows to be constructed, prior to the issuance of such permit.

      (2)   No permit shall be issued, no connection shall be made, and no such other development shall be occupied or allowed to go into use until the charge required by this chapter is paid.

   (C)   Determination of charge.

      (1)   The system development charge shall be as set forth in § 164.30 of this chapter.

      (2)   When a proposed development includes two or more types of residential dwelling units in any combination, including two or more types of dwelling units within a building or structure, the total system development charge shall be based on the sum of the charges for each type of dwelling unit, unless otherwise provided for in this chapter.

      (3)   If a development required to pay a system development charge under this chapter is located on a road classified as a designated road, the site-related improvements as required by the Planning Commission must be made, and a system development charge as set forth in § 164.30 of this chapter must be paid. Any non-site-related improvements made as part of the development process may be used to offset the required system development charge, as set forth under § 164.17(A)(2) of this chapter.

      (4)   If a development required to pay a system development charge under this chapter is located on a road not classified as a designated road, the road must be improved to meet the requirements set forth in all applicable ordinances of the Louisville Metro Government. Credit will be given for the cost of non-site-related roadway improvements against the system development charge due, however, no credit will be given for the cost of improvements that exceed the total system development charge due for developments on non-designated roads, and no refund of costs or expenses will be made. The requirements of this subsection regarding the widening of a non-designated road may, for owners of lots of five acres or more, be waived by the System Development Charge Administrator; however, in no case may the System Development Charge Administrator waive the requirement of payment of the system development charge.

      (5)   (a)   All new standard subdivision developments on designated roads that are not 18 feet in width and which are approved after the effective date of this chapter shall be allowed only one single-family residential home per five acres (or the equivalent thereof in subdivisions with large acreages) prior to when the road and associated structures are widened to meet the requirements of this chapter.

         (b)   With the prior written approval of the System Development Charge Administrator, to meet the standards listed above, a developer may choose to improve a designated road and associated structures to meet the minimum 18-foot width requirement, rather than waiting until the road and associated structures are improved by the Louisville Metro Government. After the designated road is widened to at least 18 feet, the developer shall be entitled to obtain permits and build to the extent approved for the standard subdivision. In such case, the developer will be eligible for a full refund of the cost of roadway improvements, in accordance with the provisions of § 164.35(B)(3), and the system development charge due for the development will be payable at the time building permits are requested.

         (c)   In the event a developer chooses to wait until the designated road and associated structures are widened by the Louisville Metro Government, a Notice of Unbuildable Lots shall be put to record in the Office of the Clerk of Jefferson County prior to the issuance of the first building permit to indicate that certain lots are not eligible for building permits until such time as the designated road and associated structures are widened to meet the requirements of this chapter.

(Lou. Metro Ord. No. 66-2006, approved 4-17-2006; Lou. Metro Am. Ord. No. 159-2006, approved 9-18-2006; Lou. Metro Am. Ord. No. 247-2007, approved 11-12-2007)

   (A)   Permitted exemptions and credits.

      (1)   The following shall be exempt from the requirements of this chapter:

         (a)   Alteration, expansion or replacement of an existing residential building where no additional dwelling units are created.

         (b)   The construction of accessory buildings or structures which will not produce additional vehicular trips over and above those produced by the principal building or use of the land.

         (c)   Any development or construction undertaken by a public entity for public purposes.

      (2)   The following credits may be used to offset required charges under this chapter:

         (a)   All non-site related roadway improvements required as a condition of plan approval;

         (b)   The contribution of land (not including frontage dedications), money, or services for the undertaking of construction or related activities for non-site related improvements to public roads;

         (c)   Non-site related roadway improvements previously contributed, paid for, or committed to by the property owner or his or her predecessor in interest as a condition of approval of development of the subject site after December 4, 2003;

         (d)   The cost of realignment of a roadway, where such realignment is required as a condition of plan approval, regardless of whether such realignment is deemed to be site-related or non-site-related.

      (3)   Under no circumstances will credits that exceed the system development charge due under this chapter be permitted to carry over or transfer to another development.

   (B)   Request for exemption or credit required.

      (1)   If a permit is requested for the proposed development, any claim for exemption or credit must be made no later than the date of the application for the permit for the proposed development.

      (2)   The Transportation System Development Charge Administrator shall determine the validity of any claim for exemption or credit within 30 days of receiving that claim and shall notify the claimant in writing of the determination. This notification constitutes a final action that may be appealed to the Louisville Metro Code Enforcement Board as described in § 164.40 of this chapter.

(Lou. Metro Ord. No. 66-2006, approved 4-17-2006; Lou. Metro Am. Ord. No. 247-2007, approved 11-12-2007)

   (A)   Districts explained. Existing roads that fail to meet the roadway width standards of Chapter 94, are predominantly located within four Transportation Benefit Districts created to prioritize transportation needs and manage capital roadway improvement projects.

   (B)   Designated roads. A list of designated roads shall be maintained at all times by the System Development Charge Administrator, and updated on an annual basis by the System Development Charge Oversight Committee.

   (C)   Review process.

      (1)   There shall be established a System Development Charge Oversight Committee, which shall be responsible for reviewing the classification of roads as designated or non-designated roads, and the calculation of charges on a bi-annual basis. The composition of the Oversight Committee shall be as follows:

         (a)   System Development Charge Administrator;

         (b)   Director, or designee, of the Department of Planning and Design Services;

         (c)   Director, or designee, of the Department of Public Works;

         (d)   A representative of the Home Builders Association of Louisville selected by that organization;

         (e)   A representative of the Louisville Apartment Association selected by that organization;

         (f)   An individual selected by Greater Louisville, Inc.;

         (g)   A neighborhood representative selected by the Planning Committee of the Louisville Metro Planning Commission; and

         (h)   A representative of the Kentucky Transportation Cabinet selected by that organization.

      (2)   The aforementioned bi-annual review will be completed in February and July of each year.

      (3)   Upon completion of the annual review, the Oversight Committee will issue a report of its findings, which shall be made available to the public.

   (D)   The Appendix hereto contains a map and list of designated roads in each Transportation Benefit District, which roads shall be improved under the terms of this chapter. The System Development Charge Oversight Committee may determine the priority and scheduling of the improvements to the designated roads set forth in the Appendix, may add to the list of designated roads if additional funds are available for improvements, but in no case may the Oversight Committee un-designate any of the designated roads listed in the Appendix.

(Lou. Metro Ord. No. 66-2006, approved 4-17-2006; Lou. Metro Am. Ord. No. 247-2007, approved 11-12-2007)

   (A)   Calculation of the charge.

      (1)   The Louisville Metro Government shall calculate the system development charge due by:

         (a)   Verifying the number and type of dwelling units that are proposed to be constructed, as shown on the building permit application;

         (b)   Determining the system development charge that shall be applied for each dwelling unit, in accordance with subsection (2), below; and

         (c)   Multiplying the number of dwelling units by the applicable system development charge.

      (2)   The applicable system development charge by land use for each of the Transportation Benefit Districts is as follows:

         (a)   For single-family detached units, detached condominium units, and mobile homes, the system development charge shall be $1,000 per unit.

         (b)   For attached condominium units, the system development charge shall be $500 per unit.

         (c)   For multi-family apartment (for rent) units, the system development charge shall be $250 per unit.

   (B)   Re-use and mixed-use development.

      (1)   For expansion of an existing development under an approved development plan where additional dwelling units will be constructed, the system development charge shall be based on the portion of the development in excess of what was permitted under the approved development plan. No charge shall be required for construction under a development plan approved prior to the effective date of this chapter, if a valid building permit has been issued prior to that date. However, a system development charge will be due for portions of the development that have not yet been issued a valid building permit as of the effective date of this chapter.

      (2)   For a proposed mixed use development, the number of proposed residential dwelling units shall be used to determine the appropriate system development charge for the development.

      (3)   For mixed commercial and residential developments where the residential component is incidental to the commercial component, the cost of roadway improvements made as a result of the commercial component of the development may be used to offset the system development charge due for the residential component.

(Lou. Metro Ord. No. 66-2006, approved 4-17-2006)

   (A)   Use of funds.

      (1)   Any funds collected under this chapter are expressly designated for public street and road improvements within the Transportation Benefit Districts from which those funds were collected, for payment of administrative fees, as well as for payment of consultant fees that are necessary to update the designated roads and Transportation Benefit Districts.

         (a)   No public road outside a Transportation Benefit District will be improved using funds collected under this chapter.

         (b)   Annually, an amount not to exceed the cost of administering this chapter may be transferred to the Louisville Metro General Fund for the purpose of paying the administrative fees associated with the System Development Charge Program, which shall be determined based on an annual audit.

         (c)   Charges shall be deemed to be spent on the basis that the first charges collected shall be the first charges spent.

         (d)   The Louisville Metro Finance Department shall maintain and keep financial records for system development charges, which shall show the source and disbursement of all charges collected in, or expended from, each Transportation Benefit District Fund. The records of the funds into which system development charges are deposited shall be open for public inspection, in accordance with Louisville Metro open records policies, during ordinary business hours. An annual financial analysis of all funds collected and expended under this chapter shall be performed by an independent auditor to be designated by the System Development Charge Oversight Committee.

      (2)   System development charges shall be transferred from the System Development Charge Administrator to the Louisville Metro Department of Finance and either:

         (a)   Immediately used for the retirement of bonds issued to support the improvement of Designated Roads in each Transportation Benefit District; or

         (b)   Placed into a trust fund, as described in subsection (A)(3), specifically designated for the Transportation Benefit District from which the charges were collected, for later use in the payment of costs of improving Designated Roads in that Transportation Benefit District.

      (3)   Creation of trust funds.

         (a)   A System Development Charge trust account for each of the four Transportation Benefit Districts shall be opened as a separate interest-bearing account that is segregated from the Louisville Metro General Fund.

         (b)   System development charges deposited into the trust accounts, and all interest accrued on those accounts, shall be used solely for the purpose of public road improvements in the Transportation Benefit District from which the charges were collected, the payment of administrative fees, and the payment of consultant fees to update the Designated Roads and Transportation Benefit Districts.

         (c)   All income derived from the interest accrued on these accounts shall be retained in the trust account on which the interest was earned.

         (d)   Metro Government shall annually contribute a portion of new property tax revenue from each Transportation Benefit District to each trust fund. The contribution to each fund shall be in an amount at least equal to the system development charges collected in each district during the year.

   (B)   Refunds

      (2)   Expiration of permit. If a party has paid a system development charge required by this chapter and has: (a) obtained a building permit or any other permit for a development or extensions thereto; (b) the permit or extension for which the charge was paid later expires without the possibility for future extension; and (c) the development activity for which the permit was issued did not occur and no impact has resulted; such party shall be eligible for a refund of the charge paid. In order to be eligible to receive such refund, the party shall be required to submit a written request to the System Development Charge Administrator in accordance with subsection (B)(6), within six months after the expiration of the permit, or extension for which the charge was paid. Interest accrued on the charge shall not be included in the refund.

      (3)   Refund for voluntary improvements. If a developer chooses to voluntarily undertake improvements to a designated road as set forth above for the purposes of developing a standard subdivision, the developer is eligible for a full refund of the cost of roadway improvements made, and the system development charge due for the development will be payable at the time building permits are requested. Within six months of the completion of the roadway improvements, the developer must make a written request for a refund directed to the System Development Charge Administrator. The request must contain the total spent for roadway improvements, as well as the number of approved dwelling units to be constructed in the subdivision for which the roadway improvements were made. Within six months of receiving the request for refund, the System Development Charge Administrator shall refund the reasonable costs of roadway improvements up to the amount authorized by the Administrator in the prior written approval referenced in § 164.16 from available funds in the Transportation Benefit District Fund for the area in which the subdivision is located. If a refund is not made within six months of the date the request is received by the Administrator, interest on the developer's cost for roadway improvements shall be begin to accrue thereafter at the rate of prime plus 1%, and shall be paid to the developer with the refund due. Interest shall not count as a credit against the system development charge due for the development. In any case, the refund will be paid no later than 12 months after the receipt of the written request for the refund.

      (4)   No refund for altered development. After a system development charge has been paid pursuant to this chapter, no refund of all or part of the charge shall be made if the development for which the charge was paid is later demolished or destroyed, or is altered or reconfigured so as to reduce the size of the development, the number of units in the development, or the amount of traffic generated by the development.

      (5)   Involuntary demolition or destruction. In the event a development for which a system development charge was paid is involuntarily demolished or destroyed, an additional charge is not required where reconstruction follows the development plan under which the charge was originally required. If the reconstruction deviates from the original development plan, an additional charge will be required for any net increase in the development.

         EXAMPLE: A tornado destroys a partially built condominium development for which a system development charge of $5,000 was required. To reconstruct the development according to the original development plan for which the $5,000 was paid, the developer would not be required to pay an additional system development charge. However, if the developer wanted to increase the number of units in the development, a charge equal to the difference between the original charge paid and the charge for the larger development (which reflects the net increase in the number of units to be constructed) would be required.

      (6)   Request for refund.

         (a)   In order to obtain a refund of payments made, the payor must submit a written request to the System Development Charge Administrator within the time period designated in subsections (B)(1) or (B)(2). The written request must contain the following information:

            1.   A copy of the dated receipt issued for payment of the system development charge; and

            2.   Any other proof of entitlement to the refund of charges as may be required by the System Development Charge Administrator.

         (b)   Within 30 days after the date of receipt of the written request, the System Development Charge Administrator shall review the written request and determine if it is complete. If the Administrator determines that the written request is not complete, a written statement specifying the deficiencies shall be sent to the payor by certified mail. Unless the deficiencies are corrected within seven days, the System Development Charge Administrator shall take no further action on the written request.

         (c)   When the System Development Charge Administrator determines that the written request is complete, it shall be reviewed within one month. The Administrator shall approve the refund request if it is determined that the requirements of either subsection (B)(1) or (B)(2) have been met. The refund shall include the charge paid, but shall not include interest, unless otherwise provided for in this chapter.

(Lou. Metro Ord. No. 66-2006, approved 4-17-2006; Lou. Metro Am. Ord. No. 247-2007, approved 11-12-2007)

   (A)   An aggrieved party may appeal the determination of any official of the Louisville Metro Government with regard to the administration of this chapter by submitting an appeal in writing, and requesting a hearing before the Louisville Metro Code Enforcement Board. The request shall include a written explanation of why the aggrieved party feels that a determination was in error.

   (B)   The Louisville Metro Code Enforcement Board ("Board") shall hold a hearing in accordance with §§ 32.275 et seq.

      (1)   The Board shall be required to set forth specific and detailed written findings of fact with respect to each controverted issue on appeal, as a part of its final order.

      (2)   In an appeal of the imposition of a system development charge, the Board shall not waive the charge, although it shall be authorized to reduce the charge:

         (a)   In order to promote the public health, welfare or safety or to encourage the economic development of Louisville Metro;

         (b)   Upon a finding that the charges were improperly calculated; or

         (c)   Upon a finding that the unusual circumstances of the development demonstrate that application of the charge to the development would be unfair or unjust.

   (C)   The determination of the Louisville Metro Code Enforcement Board shall be final.

(Lou. Metro Ord. No. 66-2006, approved 4-17-2006)

   (A)   This chapter shall remain in effect for a period of ten years from the effective date, at which time, it shall "sunset," and its provisions expire.

   (B)   If any bonds that are issued in connection with the provisions of this chapter have not been paid in full by the expiration date of this chapter, the sunset provision of subsection (A) shall not take effect until such time as the bond debt has been fully retired.

   (C)   Upon Council legislative re-enactment, the provisions of this chapter may be continued after their expiration date as set forth herein.

(Lou. Metro Ord. No. 66-2006, approved 4-17-2006)

   If any section, subsection, sentence or clause of this chapter is held invalid or unconstitutional by any court of competent jurisdiction, then such portion shall be deemed a separate, distinct and independent provisions and such holding shall not affect the validity of the remaining portions of this chapter.

(Lou. Metro Ord. No. 66-2006, approved 4-17-2006)