S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  1927

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                            January 14, 2009
                               ___________

Introduced by M. of A. THIELE -- read once and referred to the Committee
  on Local Governments

AN  ACT  to  amend  the  town  law,  in relation to permitting towns and
  villages in the Peconic Bay region to assess special development  fees
  in connection with the issuance of building permits

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Legislative findings. Local governments in the Peconic  Bay
region have undergone an unprecedented rate of development over the past
decade.  The  number  of  new residential housing units has increased by
12.5% to more than 86,000 housing units from 1990 to 2000. In  the  town
of  Southampton,  277 building permits for new residential housing units
were issued in 1990. In 2000, 735 such permits were issued.  Year  round
population  has  also  increased  in  the  Peconic  Bay region, reaching
120,000 residents in 2000. Nearly half of all dwellings located  in  the
Peconic Bay region are second homes. Consequently, not only has the year
round  population  increased, but the seasonal population for the region
has also dramatically risen. During the summer, the seasonal  population
often triples to 350,000 people.
  Rapid development, increases in housing units, increases in year round
population,  and  increases  in  seasonal  population  have  resulted in
significant stress to existing community  infrastructure  and  increased
demand  for  new  infrastructure.  Such  impacts have included crumbling
highways, a greater demand  for  community  facilities  such  as  police
stations, fire stations, community centers, and recreational facilities,
and a greater need for school facilities.
  More than a third of the total land area in the Peconic Region remains
available  for  development.  Thus, adverse impacts to existing highways
and increased demand for community and school facilities  will  continue
well into the future as the region reaches full buildout.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD03180-02-9

              

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  It has been well established by several planning studies that residen-
tial  development  does not pay for itself through the generation of new
real property taxes. It is generally accepted that for every  dollar  of
new  tax  revenue  generated  by  new  residential development, $1.30 is
required  to  provide supporting services and infrastructure. Therefore,
the recent development boom in the Peconic Bay region has resulted in an
increased demand for services and new infrastructure  and  overstressing
of existing infrastructure.
  Local  governments  are now considering large capital expenditures for
highway reconstruction, community facilities, and new schools. Many such
projects have already been approved. These capital  outlays  will  cause
significantly higher property tax levies.
  In  summary,  the  rapid  rate  of  development  is stressing existing
infrastructure past its limits as well as  creating  a  demand  for  new
infrastructure.  In  turn,  this will result in skyrocketing tax levies,
unless alternative funding sources are implemented.
  Other communities across the country have addressed the infrastructure
demands associated with overdevelopment by instituting special  develop-
ment  or  impact  fees to help to pay for such increasing infrastructure
demands. Such fees impose a portion of the financial  responsibility  on
the  new  development  which created the need for additional infrastruc-
ture, rather than solely all real property taxpayers at large. In  these
communities,  the  institution of impact or special development fees has
resulted in the provision of  needed  infrastructure  while  maintaining
stable property taxes. Such a system provides for a fairer assessment of
the financial responsibility relating to infrastructure for these commu-
nities.
  This act permits the Peconic Bay region local governments to institute
a system of certain impact fees in order to fairly distribute the finan-
cial  responsibilities for the increased need for infrastructure associ-
ated with new development.
  S 2. The town law is amended by adding a new section 64-k to  read  as
follows:
  S  64-K.   SPECIAL DEVELOPMENT FEES FOR BUILDING PERMITS AUTHORIZED IN
THE PECONIC BAY REGION. 1. (A) FOR THE PURPOSES  OF  THIS  SECTION,  THE
TERM  "PECONIC  BAY  REGION"  SHALL  HAVE THE SAME MEANING AS DEFINED IN
PARAGRAPH (A) OF SUBDIVISION ONE OF SECTION SIXTY-FOUR-E OF  THIS  ARTI-
CLE.
  (B)  FOR THE PURPOSES OF THIS SECTION, "SUBSTANTIAL IMPROVEMENT" SHALL
MEAN AN INCREASE OF FIFTY PERCENT OR MORE IN THE TOTAL SQUARE FOOTAGE OF
AN EXISTING BUILDING OR STRUCTURE.
  2. NOTWITHSTANDING ANY PROVISION OF LAW  TO  THE  CONTRARY,  THE  TOWN
BOARD  OF  ANY  TOWN IN THE PECONIC BAY REGION, AND THE VILLAGE BOARD OF
ANY VILLAGE IN THE PECONIC BAY REGION  SHALL  BE  AUTHORIZED  TO  IMPOSE
SPECIAL  DEVELOPMENT  FEES  ON THE ISSUANCE OF A BUILDING PERMIT FOR THE
FOLLOWING PURPOSES: (A) COMMUNITY FACILITIES  DEVELOPMENT;  (B)  TRAFFIC
MITIGATION; AND (C) SCHOOL FACILITIES.
  3.  THE  AMOUNT OF SUCH FEES SHALL BE SET BY THE TOWN OR VILLAGE BOARD
AND SHALL BE REASONABLY RELATED TO THE ACTUAL NEED  FOR  SUCH  SERVICES,
PROGRAMS OR FACILITIES.
  4. EACH TOWN OR VILLAGE WHICH ESTABLISHES THE SPECIAL DEVELOPMENT FEES
AUTHORIZED  BY  THIS  SECTION SHALL CREATE A TRUST FUND FOR EACH TYPE OF
SPECIAL DEVELOPMENT FEE. ALL FEES SHALL BE DEPOSITED IN THE  APPROPRIATE
TRUST FUND.

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  5.  IN THE CASE OF THE COMMUNITY FACILITIES TRUST FUND AND THE TRAFFIC
MITIGATION TRUST FUND, THE TOWN OR VILLAGE SHALL USE SUCH  FUNDS  EXCLU-
SIVELY FOR THE PURPOSE FOR WHICH THE FUND WAS ESTABLISHED.
  6.  THE  COMMUNITY  FACILITIES  TRUST  FUND  SHALL BE UTILIZED FOR THE
ACQUISITION OF LAND, NEW CONSTRUCTION,  OR  THE  EXPANSION  OF  EXISTING
FACILITIES REQUIRED TO PROVIDE POLICE SERVICES, FIRE SERVICES, EMERGENCY
SERVICES,   LIBRARIES,   MUSEUMS,  RECREATION,  YOUTH  SERVICES,  SENIOR
SERVICES, AND OTHER SIMILAR SERVICES PROVIDED DIRECTLY OR INDIRECTLY  BY
LOCAL GOVERNMENT.
  7.  THE  TRAFFIC  MITIGATION  TRUST  FUND  SHALL  BE  UTILIZED FOR THE
IMPROVEMENT,  REPAIR,  AND  RECONSTRUCTION  OF  EXISTING  HIGHWAYS,  THE
CONSTRUCTION OF BICYCLE PATHS, THE IMPROVEMENT OF RAILROAD STATIONS, THE
PROVISION  OF BUS TRANSPORTATION, AND OTHER SIMILAR ALTERNATIVE MEANS OF
TRANSPORTATION WHICH WOULD RESULT IN  THE  REDUCTION  OR  MITIGATION  OF
AUTOMOBILE AND TRUCK TRAFFIC.
  8.  EACH  YEAR,  AS PART OF THE BUDGET ADOPTED BY THE TOWN OR VILLAGE,
THE TOWN BOARD OR VILLAGE BOARD, AS THE CASE MAY  BE,  SHALL  APPROVE  A
PLAN  FOR  THE  USE  OF SUCH COMMUNITY FACILITIES AND TRAFFIC MITIGATION
TRUST FUNDS.  SUCH PLAN MAY ONLY BE AMENDED DURING THE FISCAL YEAR AFTER
A PUBLIC HEARING, FOR WHICH NOTICE SHALL BE PROVIDED IN THE SAME  MANNER
AS  IS  REQUIRED  FOR THE ADOPTION OF A LOCAL LAW. AN ADVISORY COMMITTEE
SHALL BE ESTABLISHED OF NOT MORE THAN SEVEN MEMBERS TO ASSIST  THE  TOWN
OR VILLAGE, AS THE CASE MAY BE, IN THE PREPARATION AND AMENDMENT OF SUCH
PLANS FOR THE USE OF SUCH FUNDS.
  9.  IN  THE  CASE  OF  THE  SCHOOL  FACILITIES TRUST FUND, THE TOWN OR
VILLAGE, AS THE CASE MAY BE, SHALL KEEP AN ACCOUNT AS TO THE LOCATION OF
THE PROPERTY FROM WHICH EACH FEE WAS GENERATED. SUCH FEE SHALL BE  CRED-
ITED  TO THE SCHOOL DISTRICT FROM WHICH THE FEE WAS GENERATED. ON FEBRU-
ARY FIRST OF EACH YEAR, THE TOWN  OR  VILLAGE  SHALL  TRANSFER  TO  EACH
SCHOOL  DISTRICT  THE  FUNDS  GENERATED FROM THE PREVIOUS CALENDAR YEAR.
SCHOOL DISTRICTS SHALL PLACE SUCH FUNDS IN A TRUST FUND AND THE PROCEEDS
OF SUCH FUND SHALL ONLY BE  UTILIZED  FOR  THE  CONSTRUCTION  OR  RECON-
STRUCTION OF NEW OR EXPANDED SCHOOL FACILITIES.
  10.  WHEN A TOWN OR VILLAGE SHALL ESTABLISH ONE OR MORE OF THE SPECIAL
DEVELOPMENT FEES AUTHORIZED BY THIS SECTION, SUCH TOWN OR VILLAGE  SHALL
ALSO  BE  AUTHORIZED TO EXEMPT AFFORDABLE HOUSING UNITS FROM THE PAYMENT
OF SUCH FEES.  THE TERM "AFFORDABLE HOUSING" SHALL  BE  DEFINED  BY  THE
TOWN OR VILLAGE, BY LOCAL LAW.
  S 3. This act shall take effect immediately.