ARTICLE V. - DEVELOPMENT IMPACT FEES—PUBLIC WORKS, FACILITIES, VEHICLES, EQUIPMENT, STREETS AND ROADWAYS

Sec. 14-244. - Legislative findings.#

The Town Council of the Town of Exeter finds, determines, and declares that: (a)

The Town must expand its ability to improve Public Works efficiencies for the maintenance of facilities, vehicles, equipment, streets, and roadways if new residential and commercial development is to be accommodated without decreasing current standards. This must be done in order to promote and protect the public health, safety, and welfare.

(b)

The State of Rhode Island through the enactment of Rhode Island General Laws Chapter 45-22.4-1 et seq., Rhode Island Development Impact Fee Act provides for orderly growth and makes provisions for protecting public investment in public facilities.

(c)

The imposition of impact fees is one of the preferred methods of ensuring that residential and commercial development bears a proportionate share of the cost of capital programs necessary to accommodate the needs of future residents of such developments. This must be done in order to promote and protect the public health, safety, and welfare.

(d)

Residential and commercial land development, except as exempted in section 14-248(d) hereof, creates, demand for the expansion of public works including facilities, vehicles, equipment, streets, and roadways to serve future development. The fees established by section 14-248 are derived from and based upon the cost of providing additional capacity to general government, streets, recreation, public safety, and sewer facility improvements necessitated by the new land developments for which the fees are levied.

(Ord. of 7-6-20)

Sec. 14-245. - Intent and purpose.#

(a)

This subchapter is intended to assist in the implementation of the Exeter Comprehensive Community Plan.

(b)

The purpose of this subchapter is to regulate the use and development of land so as to assure that new residential and commercial development bears its proportionate share of the cost of capital expenditures necessary to provide for the incremental expansion of public works facilities, vehicles, equipment, streets, and roadways for the town.

(Ord. of 7-6-20)

Sec. 14-246. - Rules of construction.#

(a)

The provisions of this subchapter shall be liberally construed so as to effectively carry out its purpose in the interest of the public health, safety and welfare.

(b)

For the purpose of administration and enforcement, unless otherwise stated in this subchapter, the following rules of construction shall apply to the text hereof:

(1)

In case of any difference of meaning or implication between the text of this subchapter and any caption, the text shall control.

(2)

The word "shall" is always mandatory and not discretionary; the word "may" is permissive.

(3)

Words used in the present shall include the future; and words used in the singular number shall include the plural, and the plural the singular, unless the context clearly indicates the contrary.

(4)

The phrase "used for" includes "arranged for", "designed for", "maintained for", and "occupied for".

(5)

The word "person" includes an individual, a corporation, a partnership, an unincorporated association, or any other similar entity.

(6)

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.

(Ord. of 7-6-20)

Sec. 14-247. - Definitions.#

For the purpose of this subchapter, the following definitions hall apply unless the context clearly indicates or requires a different meaning. The following terms shall be defined according to the Rhode Island Development Impact Fee Act, (R.I.G.L. 45-22.4-1 to 9). (a)

Applicant means a person obtaining a building permit or other appropriate municipal permit to proceed with development for an activity requiring payment of an impact fee pursuant to section 14-248 and any successor in interest of such person.

(b)

Capital improvements means improvements with a useful life of ten years or more, which increases or improves the service capacity of a public facility.

(c)

Capital improvement program means that component of a municipal budget that sets out the need for public facility capital improvements, the costs of such improvements, and proposed funding sources. A capital improvement program must cover at least a five-year period and should be reviewed at least every five years.

(d)

Commercial development for the purposes of this subchapter commercial development includes any nonresidential development such as: retail commercial, service businesses, office, industrial, light industrial and institutional uses.

(e)

Developer means a person or legal entity undertaking development.

(f)

Governmental entity means a unit of local government.

(g)

Impact fee means the charge imposed upon new development by a governmental entity to fund all or a portion of the public facility's capital improvements affected by the new development from which it is collected.

(h)

Proportionate share means that portion of the cost of system improvements which reasonably relates to the service demands and needs of the project.

(Ord. of 7-6-20)

Sec. 14-248. - Administration of impact fee.#

This subchapter is enacted pursuant to the authority of the Rhode Island Development Impact Fee Act R.I.G.L. 45-22.4-1 et seq. (a)

Generally. All applicants for new residential development shall be assessed development impact fees (hereinafter known as "fees"). Three types of assessments shall be imposed: 1) Public works facilities, structures, vehicles, and equipment; 2) Streets; and 3) Costs of preparing the impact fee study, unless otherwise provided herein. All applicants for new commercial development shall be assessed for the same. All owners of property owned by the state or federal government which is converted to private ownership or control shall also be assessed development impact fees.

(b)

Report: Adoption of findings. The findings set forth in the impact fee study prepared for Exeter, Rhode Island dated July 14, 2025, (hereafter referred to as "report") is adopted herewith. The report assess and provides the data sources and methodology upon which the following fees are based. The report is on file at the town clerk's office and is available for examination by the public upon request.

(c)

Calculation of fees. The fees shall be calculated according to the formulas set forth in the report. Over time, the variables in the formulas may change, causing the fees to change. For residential uses, the fees, including public works, street, and fee study fees, shall be calculated on the basis of each new residential dwelling unit. For commercial/nonresidential uses, the fees shall be calculated on the basis of 1,000 gross square feet of new building space, as hereinafter set forth. The following sets forth the adopted fees per new residential dwelling unit and new commercial space, as outlined in the report:

(1)

Impact fees.

Residential Fees per Development Unit

Development Type Development Unit Impact Fee Study Public Works Street Proposed Fees

Single-Family Housing Unit $419.00 $1,310.00 $3,089.00 $4,818.00

Multi-Family Housing Unit $172.00 $553.00 $1,243.00 $1,968.00

Mobile Home Housing Unit $162.00 $597.00 $1,000.00 $1,759.00

Nonresidential Fees per Development Unit

Development Type Development Unit Impact Fee Study Public Works Street Proposed Fees

Industrial 1,000 Sq Ft $140.00 $611.00 $643.00 $1,394.00

Industrial Park 1,000 Sq Ft $101.00 $452.00 $445.00 $998.00

Warehouse 1,000 Sq Ft $31.00 $132.00 $149.00 $312.00

Commercial 1,000 Sq Ft $277.00 $825.00 $2,121.00 $3,223.00

Office/Other Services 1,000 Sq Ft $296.00 $1,269.00 $1,431.00 $2,996.00

Institutional 1,000 Sq Ft $174.00 $362.00 $1,701.00 $2,237.00

(2)

Credits. An adjustment shall be made to any impact fee for facilities that were funded by the issuance of bonds. The annual debt service for the bonds apportioned to the facilities expansion shall be subtracted from the impact fee as presented within the calculations in the report and will be reviewed accordingly on an annual basis. The applicable credits shall be deducted from the fees set forth in the preceding subsections.

(3)

Properties deemed mixed-use/combination will be assessed accordingly based on the tax assessor's records utilizing the ground floor square footage and the intended functional use.

(d)

Exemptions.

(1)

Low and moderate income housing. Low and moderate income housing units shall be exempt from the requirements of this subchapter. "Low and moderate income housing units" shall mean dwelling units that are subsidized by the federal or state government under a program to assist in the construction of permanent low or moderate income housing, as defined by the Rhode Island Housing and Mortgage Finance Corporation (RIHMFC), whether built or operated by a public agency or a nonprofit organization. Only the subsidized units in a low and moderate income housing project are exempt from the requirements of this section. All other units in a low and moderate income housing project are subject to the fees.

(2)

Renovation and repair. Development impact fees shall not be imposed for remodeling, rehabilitation, or other improvements to an existing structure or rebuilding a damaged structure unless there is an increase in the number of dwelling units or any other measurable unit for which an impact fee is collected. Impact fees may be imposed when property which is owned or controlled by federal or state government is converted to private ownership or control.

(e)

Administration of fees.

(1)

Assessment. All impact fees imposed pursuant to the authority granted in this chapter shall be assessed upon the issuance of a building permit or other appropriate permission to proceed with the development of, or change in use to a residential dwelling unit or commercial unit. As part of the building permit process, the town planner shall review the building permit application and assess the appropriate fees according to section 14-248(c) above prior to the building inspector issuing a building permit. For property which is converted from state or federal ownership or control to private ownership or control, the town planner shall assess the appropriate fee upon the effective date of transfer of ownership or control.

(2)

Collection. All impact fees imposed pursuant to the authority granted in this chapter shall be collected in full upon the issuance of the certificate of occupancy or other final action authorizing the intended use of a structure. All fees collected shall be kept in a restricted interest-bearing account.

(3)

Expenditure. Town council shall approve expenditure of the fees. The fees shall only be expended for the intended purpose of providing and/or making capital improvements that reasonably relate to the service demands and needs of new development and shall not be used in lieu of regular capital improvement funds. Interest earned by the account shall be credited to the account and shall be solely for the purpose specified above for the account.

(4)

Refunds. Within eight years of the date of collection, impact fees shall be expended or encumbered for the construction of public facilities' capital improvements, however, if the expenditure or encumbrance is not feasible within eight years, the town may retain impact fees for a period of ten years if there are compelling reasons for such a longer period. The governing body shall identify, in writing, the compelling reasons for retaining impact fees for a longer period of time over eight years. If impact fees are not expended or encumbered within this period, the town shall refund to the applicant or his or her successors the amount of fee paid and accrued interest. The town shall send the refund to the applicant at the last known address by certified mail within one year of the date on which the right to claim the refund arises. Should the mailing of the fee be returned, the municipality shall make every effort to obtain a new address for the fee payer, including a search of the public records, the secretary of state's database, and the database for the contractors' registration and licensing board. All refunds due and not claimed within one year shall be forwarded to the state treasurer's office for inclusion in the unclaimed property fund.

(5)

Impact fee termination. Should the town terminate any or all impact fee requirements, all unexpended or unencumbered funds shall be refunded as provided above. Upon the finding that any or all impact fee requirements are to be terminated, the town shall place a notice of termination and availability of refunds in a newspaper of general circulation in the community at least two times. All funds available for refund shall be retained for a period of one year. All refunds not claimed within one year shall be forwarded to the state treasurer's office for inclusion in the unclaimed property fund.

(f)

Notice to future homeowners.

(1)

In the instance of a subdivision or land development project, notice of the fees shall be provided on the record plan (i.e. the plan that is recorded in the land evidence records).

(2)

In all instances where a parcel of real property (vacant or developed) is sold to a new owner prior to the issuance of a building permit, the seller of the real property shall provide written notice of the fees to the new owner on or before the date in which the parties enter into a purchase and sales agreement. The seller shall maintain said written notice for his or her records.

(g)

Alternative means of satisfying assessments for subdivisions and land development projects. The town may accept the dedication of land, the construction of public facilities in lieu of payment of impact fees provided that:

(1)

The need for the dedication or construction is clearly documented in the town's capital improvement program and comprehensive plan;

(2)

The land proposed for dedication for the facilities to be constructed are determined to be appropriate for the proposed use by the town;

(3)

Formulas and/or procedures for determining the worth of proposed dedications or constructions are established; and

(4)

The total value of the applicant's contribution shall not be less than the amount of the particular projected fee involved. The value of the applicant's contribution and scope of work shall be determined by the planning board, upon the recommendation of the town planner or other appropriate professional pursuant to procedures established by the planning board. The planning board shall document the value of the applicant's contribution. A copy thereof shall be placed and maintained in the planning department's file for the particular subdivision or land development project.

(h)

Construction services performed by applicant. In the event construction services are performed by applicant or on its behalf, applicant shall adhere to town specifications for construction and development. Inspections by town staff shall be conducted at key points in the construction and development process. In no case shall said inspection be less than those required for road construction as outlined elsewhere in the subdivision and land development regulations. A schedule for inspections shall be agreed to between town staff and applicant.

(i)

Relationship to comprehensive plan. No fees or dedication of land to the public shall be required unless the need for such is documented in the adopted plans of the town, i.e. the comprehensive community plan, or the capital improvement program (CIP). The requirement for dedication of land or fees shall be based upon the policies and standards set forth in the above plans and shall reflect the character defined by the comprehensive community plan for the neighborhood or district in which the subdivision or development is located. The nature of the land dedication must reflect the character of the land being subdivided and must be suitable for the intended use. Land, which is not otherwise developable, i.e. wetlands, slope too steep, etc. shall not be acceptable for this purpose.

(j)

Annual review. The town treasurer with the assistance of the public works director, and others as appropriate, shall present an annual report to the town council on the status of any fees collected pursuant to this subchapter. The report shall be presented annually to the town council before the adoption of the capital improvement plan. The report shall specify the amount of fees collected, how the monies were expended, and whether there are anticipated expenditures in the future.

(k)

Petitions for reduction in commercial impact fees.

(1)

A developer may petition the town council for a reduction of the impact fee assessed by this article.

(2)

The town council may direct the town treasurer to pay from the general fund all or part of any impact fee assessed to a developer of commercial real estate if the town council determines that it is in the best interest of the town to do so. The town council may consider some or all of the following factors, among others, when determining the best interests of the town:

a.

Anticipated tax revenue from the proposed development;

b.

Alternative uses for the property in the event the proposed development is abandoned;

c.

The number of local jobs expected to be created by the proposed development;

d.

The usefulness of the proposed development to the Exeter community;

e.

Any and all factors that will provide a benefit to the town.

(j)

If any reduction in a commercial impact fee is granted by the town council, the town treasurer shall pay the amount of the reduction into the impact fee fund out of the general fund.

(Ord. of 7-6-20; Ord. of 10-7-24(1); Ord. of 10-6-25(1))

Sec. 14-249. - Effective date.#

This article shall take effect upon passage and all prior ordinances inconsistent herewith shall be deemed repealed.

(Ord. of 7-6-20)