ORDINANCE NO. _________, SERIES 2026
TITLE
AN ORDINANCE AMENDING PORTIONS OF LOUISVILLE METRO CODE OF ORDINANCES (“LMCO”) CHAPTER 164 REGARDING THE SYSTEM DEVELOPMENT CHARGE TO UPDATE THE PROVISIONS, INCREASE CONTRIBUTIONS AND EXTEND THE SUNSET PROVISION.
BODY
SPONSORED BY: COUNCIL MEMBER ANTHONY PIAGENTINI
WHEREAS, the System Development Charge was adopted by the Metro Council in 2006 (Ordinance No. 66, Series 2006) with a sunset provision established in LMCO § 164.50;
WHEREAS, since the original passage of the System Development Charge 20 years ago, with the bonds for the original improvements nearly paid off but growth in the impacted districts continuing at a significant pace, it is an appropriate time to revisit and revamp the System Development Charge for Roadways to continue to ensure that adequate roadway infrastructure is provided in developing areas of Metro Louisville;
WHEREAS, since the original passage of this Chapter, the Kentucky Fire Code has been updated to recommend that Fire Apparatus Access Roads have an unobstructed width of not less than 20 feet. Many of the originally Designated Roads now fall short of that standard;
WHEREAS, continued growth in and near the Transportation Benefit Districts, as evidenced by such measures as the total number of approved housing units, the square footage of approved commercial and industrial development, and the 2020 census, illustrates and justifies the need for the System Development Charge for Roadways to be revised and extended beyond the original sunset provisions;
WHEREAS, that continued growth has led to failing grades at various intersections along the originally Designated Roads, and future development will only further strain those intersections in the absence of improvements;
WHEREAS, the Charge Schedule has not been updated since the creation of this Chapter, despite significant increases in both labor and material costs related to road improvements. To be effective, these charges must be brought in line with actual costs and be regularly monitored for appropriate adjustment; and
WHEREAS, the original use of this Chapter resulted in substantial bonds that have taken more than two (2) decades to pay off, resulting in no new System Development Charge projects being proposed in that time and the System Development Charge Oversight Committee (the “Committee”) rarely meeting. Avoiding that kind of massive upfront expenditure will put more responsibility on the Committee while also enabling dynamic decisions based on actual need and development, rather than general system wide expectations; and
WHEREAS, Louisville Metro Government wishes to extend the System Development Charge beyond retirement of the existing bond obligations; and
WHEREAS, Louisville Metro Government seeks to restructure the required contributions set forth in the System Development Charge and make other revisions to better ensure that adequate roadway infrastructure is provided in developing areas of Metro Louisville.
NOW, THEREFORE, BE IT ORDAINED BY THE LEGISLATIVE COUNCIL OF THE LOUISVILLE/JEFFERSON COUNTY METRO GOVERNMENT (“THE COUNCIL”) AS FOLLOWS:
SECTION I: LMCO § 164.02 is amended to add the following subsections:
(H) Subsections (A) through (G) comprise the Legislative Purpose and Intent as of the original passage of the System Development Charges for Roadways in 2006. 20 years later, with the bonds for the original improvements nearly paid off but growth in the impacted districts continuing at a significant pace, it is an appropriate time to revisit and revamp the System Development Charge for Roadways to continue to ensure that adequate roadway infrastructure is provided in developing areas of Metro Louisville.
(I) Since the original passage of this Chapter, the Kentucky Fire Code has been updated to recommend that Fire Apparatus Access Roads have an unobstructed width of not less than 20 feet. Many of the originally Designated Roads now fall short of that standard.
(J) Continued growth in and near the Transportation Benefit Districts, as evidenced by such measures as the total number of approved housing units, the square footage of approved commercial and industrial development, and the 2020 census, illustrates and justifies the need for the System Development Charge for Roadways to be revised and extended beyond the original sunset provisions.
(K) That continued growth has led to failing grades at various intersections along the originally Designated Roads, and future development will only further strain those intersections in the absence of improvements.
(L) The Charge Schedule has not been updated since the creation of this Chapter, despite significant increases in both labor and material costs related to road improvements. To be effective, these charges must be brought in line with actual costs and be regularly monitored for appropriate adjustment.
(M) The original use of this Chapter resulted in substantial bonds that have taken more than two (2) decades to pay off, resulting in no new System Development Charge projects being proposed in that time and the System Development Charge Oversight Committee (the “Committee”) rarely meeting. Avoiding that kind of massive upfront expenditure will put more responsibility on the Committee while also enabling dynamic decisions based on actual need and development, rather than general system wide expectations.
SECTION II: The following definitions in LMCO § 164.15 are amended or added as follows:
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 sSystem dDevelopment cCharge.
DESIGNATED PROJECT. A roadway improvement project located in one or more Transportation Benefit District(s), as established by the Committee, which project shall be funded in whole or in part by the funds received by Louisville Metro Government under this chapter.
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, or accessory dwelling units.
FACTORY BUILT HOME. A principal building or structure of any size containing a single-family dwelling unit and fabricated in an off-site facility on or after July 15, 2002. Factory Built Homes are assembled and installed at the building site as a permanent structure with any transport features removed. This term includes “manufactured homes,” “modular homes,” and “tiny-homes” assembled off-site as defined in the Kentucky Residential Code. For purposes of this Chapter, any Factory Built Home fabricated before July 15, 2002 shall be classified as a Mobile Home.
MOBILE HOME. As referenced in KRS 219.320 & 227.550. A structure manufactured prior to June 15, 1976, that was not required to be constructed in accordance with the Federal Manufactured Housing Construction in Safety Standards Act, that is transportable in one (1) or more sections,which that, in the traveling mode is eight (8) body feet or more in width andis 32 forty (40) body feet or more in length, or when erected on site, four hundred (400) or more square feet, and whichthat is built on a permanent chassis and designed to be used as a dwellingwith or without a on a temporary or permanent foundation, when connectedto the with permanent required utilities,and includes the including plumbing, heating, air conditioning, and electrical systems contained therein. For the purposes of this Chapter, any Factory Built Home fabricated before July 15, 2002 shall be classified as a Mobile Home.
NON-DESIGNATED ROADS. Any road that is not a designated road, and that does not meet the Louisville Metro Government standards that require public roads to be a minimum of 18 feet in width.
PAYOR. The party responsible for paying the sSystem dDevelopment cCharge.
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 OR ADMINISTRATOR. The party or parties designated by Louisville Metro to be responsible for administering this chapter.
TRANSPORTATION BENEFIT DISTRICT. Geographic areas of Louisville Metro established to prioritize transportation needs and manage capital roadway improvement projects. System dDevelopment cCharge will be used to improve “designated” public roads and Designated Projects on public roads within the Transportation Benefit District in which the charges are assessed.
SECTION III: LMCO § 164.16 is amended as follows:
§ 164.16 APPLICABILITY.
(A) Requirement. On and after April 17, 2006the 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, factory built homes, and mobile or manufactured homes, in one of the Transportation Benefit Districts, shall be obligated to pay a sSystems dDevelopment cCharge for roadways. Parties who apply for building permits prior to June 16, 2006 up to 60 days after the effective date of this chapter shall not be required to pay a sSystem dDevelopment cCharge.
(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 charges.
(1) The sSystem dDevelopment cCharge shall be as set forth 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 sSystem dDevelopment cCharge 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 sSystem dDevelopment cCharge under this chapter is located on a road classified either as a designated road or as part of a designated project, the site-related improvements as required by a condition of approvalthe Planning Commission must be made, and a sSystem dDevelopment cCharge 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 sSystem dDevelopment cCharge, as set forth under § 164.17(A)(2) of this chapter.
(4) If a development required to pay a sSystem dDevelopment cCharge under this chapter is located on a non-designated 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 sSystem dDevelopment cCharge due, however, no credit will be given for the cost of improvements that exceed the total sSystem dDevelopment cCharge 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 sSystem dDevelopment cCharge.
EXAMPLE: A developer chooses to develop a subdivision consisting of 70 single-family homes on property located on Smith Road, five miles from James Road which is a collector level roadway. Both roads are located in a Transportation Benefit District. Smith Road is not classified as a designated road and is only 12 feet wide. Based on a traffic study, it was determined that James Road will be the primary route taken to access the subdivision. The developer will be required to improve Smith Road to meet the requirements of all applicable ordinances of the Louisville Metro Government for the five miles between the subdivision and James Road, as well as across the subdivision's frontage, and pay a system development charge of $70,000. The cost of the non-site-related roadway improvements may be used to offset the system development charge due, but cannot result in an additional credit or a refund of the cost of improvements in excess of the amount used to offset 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 April 17, 2006the 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 requirementd by LMCO § 94.80 as determined by the Director of Public Works or designee in consultation with the local fire division having jurisdiction, 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 feetthe minimum width required by LMCO § 94.80 as determined by the Director of Public Works or designee in consultation with the local fire division having jurisdiction, 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 sSystem dDevelopment cCharge 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.
SECTION IV: LMCO 164.17 is amended as follows:
§ 164.17 EXEMPTIONS AND CREDITS.
(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. For developments approved after the effective date of this amendment, a non-site related roadway improvement shall not be mandated by either Public Works or the Planning Commission in connection with a proposed development, as the System Development Charge is intended to fund such improvements (and if there is a Designated Project, such information regarding the Designated Project shall be provided to the Planning Commission); however, the Planning Commission may decide to deny a proposed development based upon a finding that there is inadequate roadway infrastructure to support the proposed development if those roadway improvements are not made, and the developer may voluntarily agree to a condition of approval requiring the developer to construct and/or pay for the construction of some or all of those roadway improvements.
EXAMPLE: A developer is required to install a left turn lane that is not necessitated by the development but is required as a condition of plan approval, at a cost of $100,000, along a non-designated road (this is a non-site related improvement). The system development charge due for the development is $200,000. The cost of the left turn lane can be used to offset the $200,000 charge, so the total charge due would be $100,000.
EXAMPLE: A developer is required to install a left turn lane that is not necessitated by the development but is required as a condition of plan approval, at a cost of $100,000, along a road that is not classified as designated or non-designated road under this chapter (this would not be a non-site-related improvement). The sSystem dDevelopment cCharge due for the development is $200,000. The cost of the left turn lane cannot be used to offset the $200,000 charge, so the total charge due would be $200,000.
(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 sSystem dDevelopment cCharge due under this chapter be permitted to carry over or transfer to another development.
EXAMPLE: A developer is required as a condition of plan approval to install a left turn lane at a cost of $300,000, along a portion of a non-designated road not directly adjacent to the development. The system development charge due for the development is $200,000. The cost of the left-turn lane may be used to offset the $200,000 charge, and no charge would be due. However, the difference between the charge ($200,000) and the cost of the improvement ($300,000) not used to offset the charge may not be carried over by the developer to offset charges associated with another development, and may not be transferred to another developer to offset a sSystem dDevelopment cCharge due for 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 <https://codelibrary.amlegal.com/codes/louisvillemetro/latest/loukymetro/0-0-0-31356> of this chapter.
SECTION V: LMCO 164.20 is amended as follows:
§ 164.20 ESTABLISHMENT OF TRANSPORTATION BENEFIT DISTRICTS.
(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. Those four Transportation Benefit Districts are shown on the Appendix to this Ordinance.
(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) Designated Projects. A list of Designated Projects shall be maintained at all times by the Administrator, and updated at least quarterly by the Committee.
(D) Review process and establishment of Designated Projects.
(1) There shall be established a System Development Charge Oversight Committee (the “Committee”), which shall be responsible for reviewing the classification of roads as designated or non-designated roads, the establishment of Designated Projects and the calculation of charges on at least a quarterly bi-annual basis. The composition of the Oversight Committee shall be as follows:
(a) System Development Charge The Administrator;
(b) Director, or designee, of the Department of Planning and Design ServicesOffice of Planning;
(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.One Louisville;
(g) TwoAn neighborhood representatives selected by the Planning Committee of the Planning Commission, each of whom are a resident of one of the Transportation Benefit Districts; 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 eachthe annual review, the Oversight Committee will issue a report of its findings, which shall be made available to the public. Further, the Committee shall also provide a copy of the list of Designated Projects, as it may be updated from time to time, to the Office of Planning.
(DE) 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 schedule of the improvements to the designated roads set forth in the Appendix, Beginning with the effective date of this amendment, the Committee shall establish Designated Projects in each of the Transportation Benefit Districts using the following criteria: priority should be given to roadway improvements in the immediate area of where the source of funding (the development paying the System Development Charge) is located, preferably to either widen all or a portion of a Designated Road to the minimum width required by LMCO § 94.80 or to improve the level of service for intersections on a Designated Road, and if there are funds left over after those roadway improvement(s) are funded, to fund other roadway improvements within the same Transportation Benefit District. The Committee may also recommend to Council that a specific Designated Project be funded by the issuance of bonds, with said bonds to be repaid by System Development Charges and any other source of funding Council may agree to in connection with its approval of the bonds. Nothing in this chapter authorizes or contemplates that a single bond be issued to pay for all proposed roadway improvements in a Transportation Benefit District.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.
SECTION VI: LMCO § 164.30 is amended as follows:
SYSTEM DEVELOPMENT CHARGES
§ 164.30 CHARGE SCHEDULE.
(A) Calculation of the charges.
(1) The Louisville Metro Government shall calculate the sSystem dDevelopment cCharge 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 sSystem dDevelopment cCharge that shall be applied for each dwelling unit, in accordance with subsection (2), below; and
(c) Multiplying the number of dwelling units by the sSystem dDevelopment cCharge.
(2) The applicable sSystem dDevelopment cCharge by land use for each of the Transportation Benefit Districts is as follows:
(a) For single-family detached units, detached condominium units, factory built homes and mobile homes, the sSystem dDevelopment cCharge shall be $1,000 per unit until the effective date of this amendment. Beginning with the effective date of this amendment, the System Development Charge shall be $1,500 per unit.
(b) For attached condominium units, the sSystem dDevelopment cCharge shall be $500 per unit until the effective date of this amendment. Beginning with the effective date of this amendment, the System Development Charge shall be $1,200 per unit.
(c) For multi-family apartment (for rent) units, the sSystem dDevelopment cCharge shall be $250 per unit until the effective date of this amendment. Beginning with the effective date of this amendment, the System Development Charge shall be $1,000 per unit.
For developments that received approval of a preliminary subdivision plan, a category 2, 2B or 3 plan, or a detailed development plan prior to the effective date of this amendment, the applicable System Development Charge shall be the amount in effect prior to the effective date of this amendment.
The Committee shall review the applicable System Development Charge by land use every ten (10) years and make recommendations to Council regarding any proposed changes to the amount of those charges.
(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 sSystem dDevelopment cCharge shall be based on the portion of the development in excess of what was permitted under the approved development plan. No charges shall be required for construction under a development plan approved prior to April 17, 2006the effective date of this chapter, if a valid building permit has been issued prior to June 16, 2006that date. However, a sSystem dDevelopment cCharge will be due for portions of the development that have not yet been issued a valid building permit as of June 16, 2006the effective date of this chapter.
EXAMPLE: A developer obtained approval of a development plan for a single-family subdivision on October 10, 2004, prior to the effective date of this chapter. The developer has valid building permits issued in November, 2004, for 10 homes to be constructed in the subdivision, but has not yet obtained building permits for an additional 60 single-family homes to be constructed under the development plan. No sSystem dDevelopment cCharge will be required for the 10 homes authorized to be constructed under the existing building permits, however the developer will be required to pay the sSystem dDevelopment cCharge (in this case, $60,000) for the construction of the remainder of the homes to be located in the subdivision.
(2) For a proposed mixed use development, the number of proposed residential dwelling units shall be used to determine the appropriate sSystem dDevelopment cCharge 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 sSystem dDevelopment cCharge due for the residential component.
EXAMPLE: A developer proposes a shopping center with 100 patio homes incorporated into the design. The roadway improvements necessitated by the commercial component of the development will cost $250,000. The sSystem dDevelopment cCharge due for the residential component is $150,000. The cost of the roadway improvements can be used to offset the charges due for the residential portion of the development. The developer will be required to pay for the total cost of the roadway improvements necessitated by the commercial development, but will not be required to pay the charge.
SECTION VII: LMCO § 164.35 is amended as follows:
§ 164.35 TRANSPORTATION BENEFIT DISTRICTS
(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, the designated projects 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 DepartmentOffice of Management and Budget shall maintain and keep financial records for sSystem dDevelopment cCharge, 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 sSystem dDevelopment cCharge 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 dDevelopment cCharge shall be transferred from the System Development Charge Administrator to the Louisville Metro Department of FinanceOffice of Management and Budget and either:
(a) Immediately used for the retirement of bonds issued to support the improvement of Designated Roads or a Designated Project in each Transportation Benefit District, but if general funds are used to retire the bonds, an amount equal to the general funds may be released to the trust fund in (b), below. Further, no System Development Charge funds accruing from developments approved after the effective date of this amendment may be so expended unless they are pledged to support an improvement specific bond issued after the effective date of this amendment; 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 Designated Projects and/or 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 dDevelopment cCharge 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, except that, should a trust account for a Transportation Benefit District contain funds despite the Transportation Benefit District containing neither Designated Projects nor Designated Roads, or the Committee determining there are no remaining improvements to be made to the roads in that Transportation Benefit District, those funds may be transferred to a trust account for a different Transportation Benefit District which does contain Designated Projects, Designated Roads or improvements that still need to be made to the roads in that different Transportation Benefit District, as determined by the Committee.
(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 sSystem dDevelopment cCharge collected in each district during the year. If such a contribution is not made by the next fiscal year, to the extent the System Development Charge exceeds the Metro Government contribution, such excess System Development Charge shall be refunded to the payors for that year on a pro-rata basis.
(B) Refunds
(1) Passage of time. Any funds in any sSystem dDevelopment cCharge trust accounts that have not been spent or encumbered within ten years of the date on which such funds were paid shall, upon written request to the System Development Charge Administrator in accordance with subsection (B)(6), be returned to the pPayor. Within six months after the ten-year period from the date on which the unspent charges were paid, the System Development Charge Administrator shall notify the pPayor of eligibility for a refund. The pPayor is responsible for maintaining a current address with the System Development Charge Administrator. Any funds for which no petition for refund has been received following 12 months of the date the pPayor was notified of eligibility for refund shall be retained by the Louisville Metro Government. These funds shall be expended on the type of public road improvements reflected in the title of the account without further limitations as to time of expenditure.
(2) Expiration of permit. If a party has paid a sSystem dDevelopment cCharge 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 charges 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 charges 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 sSystem dDevelopment cCharge 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 sSystem dDevelopment cCharge 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 sSystem dDevelopment cCharge 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 sSystem dDevelopment cCharge 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 sSystem dDevelopment cCharge 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 sSystem dDevelopment cCharge. 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 pPayor 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 sSystem dDevelopment cCharge; 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 pPayor 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 charges paid, but shall not include interest, unless otherwise provided for in this chapter.
SECTION VIII: LMCO § 164.40 is amended as follows:
§ 164.40 APPEALS.
(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 sSystem dDevelopment cCharge, 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 charges to the development would be unfair or unjust.
(C) The determination of the Louisville Metro Code Enforcement Board shall be final.
SECTION IX: LMCO § 164.50 is amended as follows:
§ 164.50 SUNSET PROVISION.
(A) This chapter shall remain in effect until December 31, 2041 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.
SECTION X: This Ordinance shall take effect upon passage and approval, or otherwise becoming law.
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____________________________ |
____________________________ |
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Sonya Harward Metro Council Clerk |
Brent Ackerson President of the Council |
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_______________________________________________________ |
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Craig Greenberg Mayor |
Approval Date |
APPROVED AS TO FORM:
Michael J. O’Connell
Jefferson County Attorney
By: ____________________________
O-308-26 - Amend System Development Charge in LMCO Chapter 164 and extend sunset provision 10-22-26 (lf).docx