Title/Name/Summary
Development Petition Process Improvement and Escrow Accounts
History
In order to provide the best service to our residents and developers, the Development Services Department is continually evaluating processes for development review and permitting. Recently, the development entitlement process was reviewed with the intent to reduce the overall timeline from initial submittal through final approval. The goals include reducing time (and therefore cost) to the develop while also providing reliable review time estimates so that petitioners can accurately incorporate the process into timing for their project.
In addition, the proposed process improvement would include the provisions for developers to submit a pre-payment for external landscaping, engineering and legal reviews. These fees are currently passed through to petitioners and are paid to the consultant by the Village; with the Village collecting the fee from the petitioner. Creating a pre-payment escrow account for each project that is replenished throughout the project avoids the Village collecting fees, providing a faster transition from approval to permit as well as ensuring Village collection of fees, especially in cases where a project does not proceed to construction.
The proposed changes are applicable to any project which requires a public hearing at the Plan Commission, review by the Committee of the Whole, and approval by the Village Board of Trustees. Projects requiring a public hearing must adhere to very specific time frames that are delineated by state statute. The proposed changes will not affect any of the statutory requirements, but will offer a more efficient timeline for approval.
The existing petition process is outlined as follows:
The petitioner begins the process by scheduling a pre-concept meeting with staff. The pre-concept meeting is intended to provide an overview of the development process and to discuss the applicable code requirements. Once a concept is acceptable, the petitioner completes the application according to the Village’s Development Petition Packet, and submits for development review.
After a complete submittal is received. Staff, and the Village’s engineering and landscaping consultant, complete the internal review of the project and send a combined comment letter with a list of code deficiencies. The petitioner makes the revisions and re-submits for a re-review. This process is repeated until preliminary engineering, landscaping, and planning approval is given. Preliminary approval generally means that the project conforms to the Land Development Code and Village’s Comprehensive Plan. Any code modifications are then Presented along with the entire project at the Plan Commission along with the Staff recommendations. Following a majority approval vote by the Plan Commission, the project is forwarded to the Village Board for final approval.
Overall, the total review time from complete submittal to Village Board approval can vary from approximately 21-34 weeks. Please note that this timeline is highly dependent on the petitioner re-submitting plans that meet all code requirements, in a timely manner.
The new proposed process remains generally unchanged from pre-concept up through the Plan Commission meeting.
Upon a successful recommendation by the Plan Commission, the proposed change would require that all final approvals (ordinances, agreements, etc.) be presented to the Village Board of Trustees at an all-encompassing meeting. In addition, after Village Board approval, the project will be ready for construction subject only to the completion of the building permit requirements. In the existing process, the Village Board grants initial development project approval then there are a series of post-board approvals many of which must be sent back to a separate Village Board meeting for approval (agreement, final ordinance, plats, etc.).
The only risk point in the process is that the Village proceeds with the drafting of the final ordinance and that the developer proceeds with final project plans during the time between Plan Commission recommendation and final Village Board approval. However, this change results in a savings of 6-8 weeks, with a total petition process timeline cut by 6-8 weeks (24-29%).
In regards to the proposed prepayment for development review costs, staff compiled recent review costs based upon project type. The projects were categorized by type: small modification, new residential - single-family, new residential - multi-family, and new commercial.
The average review costs for landscaping, engineering, and legal for each of these project types are as follows:
Changes to Existing Buildings and Sites: $4,835.81
Standalone Special Use Permit: $410.50
New Residential - Single Family: $19,430.88
New Residential - Multi-Family: $22,018.95
New Commercial - $19,073.38
Based on this information the Village proposes the following amounts for project escrow accounts:
Changes to Existing Buildings and Sites: $2,000
Standalone Special Use: $500
New Residential - Single Family, New Residential Multi-family, New Commercial:
Less than 1 acre - $4,000
1-5 acres - $6,000
5-10 acres - $8,000
10 acres or more - $10,000
This fee will be collected at petition submittal and will be required to be replenished in order to maintain a minimum balance of $1,500 at all times to cover the costs incurred by Village consultants. Prior to scheduling for final Village Board of Trustees approval, a minimum balance of $3,000 would be required This minimum balance is intended to cover the cost of final reviews received prior to the Village Board, but invoiced thereafter.
Escrow accounts are utilized by many surrounding communities to ensure collection of all Village costs associated with development petitions, and developers have become accustomed to this approach.
This item is now before the Committee of the Whole for discussion. Based upon the discussion, staff will move forward with necessary process and code changes.
Recommended Action/Motion
This item is for discussion only.