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In-fill Development Plan Procedure

*Note: FIF-Facility Investment Fee has been changed to System Development Fee (SDF)

I. Purpose
To promote and encourage quality development within the City of Fayetteville and specific portions of the PWC service area as identified below through in-fill development. A major benefit of the program is to spur economic growth while also increasing the PWC customer base and City of Fayetteville tax base in areas of the City where infrastructure is already in place.

II. Qualifying Areas
A. Tier One: Described as being those properties in the downtown area identified as the core of the City as shown in greater detail on Exhibit “A.”

B. Tier TwoDescribed as being the balance of the City of Fayetteville incorporated area (city limits) as of September 30, 2005 (through Annexation Phase V, as shown in greater detail on Exhibit “A.”

III. General Criteria
A. For new commercial and residential construction located within a designated zone as referenced above.

B. Must meet or exceed four units per acre for residential development (owner/developer may request a waiver of the density requirement which shall be reviewed by staff and submitted with recommendation to the PWC  Commission for approval).

C. Must provide a buildout schedule for the project acceptable to PWC that will be included in the contractual agreement.  Such agreement must be executed by all parties prior to expiration of this incentive program with construction completed based on the buildout schedule but not later than five years following execution of the contract, unless otherwise approved in the buildout schedule.

D. Based on anticipated water and sanitary sewer utility sales and buildout rate, the project should, through the value added for new customers, provide over a ten-year time frame from issuance of the building permit an amount equal to or greater than the estimated value of the UCC waiver.

E. SDF waivers will be considered on a case-by-case basis taking into consideration the merits of a particular project requiring /PWC staff recommendation for approval based on the goal of promoting quality growth and increased customer/tax base within the corporate limits of the City of Fayetteville.

F. For all qualifying development projects, PWC will be the electric, water, and sanitary sewer provider.

G. UCC waivers for development projects requiring greater than a 2” water service meter will be considered on a case-by-case basis.

H. In the event construction does not proceed as set forth in the approved buildout schedule, PWC may require payment of SDF for those structures where building permits have expired or have not been issued.

I. Additional Criteria for Tier Two

1. For new development occurring within Tier Two, SDF waivers do not apply where building improvements are connecting to existing water and sanitary sewer mains.
 
2. The UCC waiver for Tier Two will apply to new construction where the developer is installing water and sanitary sewer mains in accordance with PWC approved plans and specifications under contract with PWC.
 
3. The value of the utility infrastructure as determined by PWC which does not include engineering, contingencies, or right-of-way acquisition expense, should equal or exceed the UCC amount projected by PWC for such project. 
 
4. In the event the value of the utility infrastructure is less than the projected UCC, the waiver will be limited to the value of the utility infrastructure, as determined by PWC.
 
5. There is no SDF credit or carryover for the value of on-site infrastructure that exceeds SDF for the project under contract.
 

IV. Incentive Plan
For all approved new construction projects in Tier One or Tier Two that meet the above criteria, PWC will waive both the water and sanitary sewer SDF under the terms and conditions as set forth above.

V. Effective Date
This procedure shall become effective on the date of adoption with expiration within one year of such date.