Streetscape Licenses Economic Development Committee April 21, 2014.

Streetscape LicensesStreetscape Licenses

Economic Development Economic Development CommitteeCommittee

April 21, 2014April 21, 2014

22City Council Economic Development Committee – April 21, 2014City Council Economic Development Committee – April 21, 2014

PurposePurpose Follow-up to Council meeting January 22, Follow-up to Council meeting January 22,

20142014 Quality of Life reviewed proposal in June and Quality of Life reviewed proposal in June and

November 2013November 2013 Committee requested staff to move forward Committee requested staff to move forward

with reduced fee optionswith reduced fee options Encourage increased use of street amenitiesEncourage increased use of street amenities Encourage economic developmentEncourage economic development

City Council requested another briefing to City Council requested another briefing to Economic Development CommitteeEconomic Development Committee


Why Accommodate Use of Right-of-Why Accommodate Use of Right-of-Way?Way?

Compliments Complete Streets Vision


ExamplesExamples


Why Licenses Are RequiredWhy Licenses Are Required

Home rule cities hold the right-of-way Home rule cities hold the right-of-way (ROW) in trust for the public(ROW) in trust for the public Public has the right of free and full use/ Public has the right of free and full use/

passagepassage City may or may not own underlying fee City may or may not own underlying fee

titletitle



Licenses best fit the type of “rights” Licenses best fit the type of “rights” that can be granted in the right-of-that can be granted in the right-of-wayway Right to use; not an interest in landRight to use; not an interest in land TerminableTerminable Non-exclusiveNon-exclusive Not assignable without consentNot assignable without consent


Why Licenses Are RequiredWhy Licenses Are Required State statute (Texas Transportation State statute (Texas Transportation

Code Section 316.001 et seq) Code Section 316.001 et seq) provides that:provides that: Governing body of city may permit use of Governing body of city may permit use of

ROWROW For decorative landscaping, sidewalk For decorative landscaping, sidewalk

cafés, ornamental features and street cafés, ornamental features and street amenities (like benches, water fountains, amenities (like benches, water fountains, bus shelters, planters)bus shelters, planters)

To abutting owner of underlying fee title To abutting owner of underlying fee title or tenant with permission to useor tenant with permission to use


Why Licenses Are RequiredWhy Licenses Are Required State statute provides that State statute provides that

Governing body must find that:Governing body must find that: Encroachment into roadway or part of Encroachment into roadway or part of

sidewalk is not needed for pedestrian sidewalk is not needed for pedestrian use;use;

Encroachment will not create a Encroachment will not create a hazardous condition or obstruct travel;hazardous condition or obstruct travel;

Design and location of encroachment Design and location of encroachment includes reasonable planning to includes reasonable planning to minimize potential injury and minimize potential injury and interference.interference.



Dallas City Charter and Article VI, Dallas City Charter and Article VI, Sec. 43 of the Code require license:Sec. 43 of the Code require license: Be granted by Council ordinance Be granted by Council ordinance To abutting property ownersTo abutting property owners Not be inconsistent with or Not be inconsistent with or

unreasonably impair public useunreasonably impair public use City retaining right to terminate as City retaining right to terminate as

necessarynecessary


Why Licenses Are RequiredWhy Licenses Are Required Enables staff to perform due diligence Enables staff to perform due diligence

required by State and City statutesrequired by State and City statutes Confirms grant to appropriate partyConfirms grant to appropriate party Location and coordination with other uses in ROW Location and coordination with other uses in ROW

(especially utilities)(especially utilities) Insurance protection of public & CityInsurance protection of public & City Indemnification and defense of CityIndemnification and defense of City Confirm no hazards, interference, obstructions, etc.Confirm no hazards, interference, obstructions, etc. Removal from and restoration of ROW upon Removal from and restoration of ROW upon

terminationtermination


Current ProcessCurrent Process

Applicant submits request along with:Applicant submits request along with: $750 non-refundable application fee$750 non-refundable application fee Field notes describing licensed area and a Field notes describing licensed area and a

measured drawing showing proposed usemeasured drawing showing proposed use Deed showing ownership, or tenant leaseDeed showing ownership, or tenant lease Written concurrence of abutting ownersWritten concurrence of abutting owners


Current ProcessCurrent Process City routes request to departments and City routes request to departments and

outside agencies / utilities for review and outside agencies / utilities for review and approvalapproval Any concerns must be addressed by applicant Any concerns must be addressed by applicant If concerns cannot be resolved, license does not If concerns cannot be resolved, license does not

progressprogress License fee determined through formula License fee determined through formula

based on assessed value or one-time feebased on assessed value or one-time fee Request submitted to City Council for Request submitted to City Council for

authorization by ordinanceauthorization by ordinance


Typical Review Typical Review ConsiderationsConsiderations


Key ConcernsKey Concerns

Accessibility and Accessibility and sidewalk clearancesidewalk clearance

City Council Economic Development Committee – April 21, 2014City Council Economic Development Committee – April 21, 2014

Key ConcernsKey Concerns

1515

Detectability for Visually Impaired

Durability

Some design elements could diminish visual attributes of the public realm


Why Fees are ChargedWhy Fees are Charged

Texas Constitution prohibits gifts Texas Constitution prohibits gifts of public funds exclusively for of public funds exclusively for private benefitprivate benefit There must be a definite public There must be a definite public

benefit to City articulatedbenefit to City articulated


Why Fees are ChargedWhy Fees are Charged

Fees pay for staff time and resources spent Fees pay for staff time and resources spent discussing requests with applicants, viewing discussing requests with applicants, viewing details of proposed sites in the field, details of proposed sites in the field, reviewing field notes and designs to ensure reviewing field notes and designs to ensure compliance, drafting legal documents and compliance, drafting legal documents and preparing agenda items for City Council preparing agenda items for City Council considerationconsideration

Based on existing workload and fees, annual Based on existing workload and fees, annual license revenue into General Fund currently license revenue into General Fund currently funds these FTEs at $230,000funds these FTEs at $230,000


Three Fee Approaches: Three Fee Approaches: Market-Based – past modelMarket-Based – past model

Until 2007, calculation based on assessed valueUntil 2007, calculation based on assessed value State law allows municipalities to receive market value State law allows municipalities to receive market value

(more than cost recovery)(more than cost recovery)

Partial Cost-Recovery – current modelPartial Cost-Recovery – current model In 2009, reduced fees based on pilot programIn 2009, reduced fees based on pilot program FY 13-14 Fee Study to include Real Estate license feesFY 13-14 Fee Study to include Real Estate license fees

Public Subsidy – model under considerationPublic Subsidy – model under consideration QOL Committee direction from June 2013QOL Committee direction from June 2013 Encourage public amenities and Complete Street goals Encourage public amenities and Complete Street goals

while meeting regulatory requirementswhile meeting regulatory requirements


QOL Committee Direction:QOL Committee Direction:Café Sliding Scale; $250 for One-Time Café Sliding Scale; $250 for One-Time

FeesFees

Assumes Equal Requests for Café Assumes Equal Requests for Café SizesSizes

One-Time One-Time Streetscape Streetscape License Fee:License Fee:

$250$250

ANNUALANNUAL

Sidewalk Sidewalk Café Max. 3 Café Max. 3 Tables and 6 Tables and 6

ChairsChairs

$300$300

ANNUALANNUAL

Sidewalk Sidewalk CaféCafé

Max. 6 Max. 6 TablesTables

And 12 And 12 ChairsChairs

$600$600

ANNUALANNUAL

Sidewalk Sidewalk CaféCafé

7+ Tables 7+ Tables and and

13+ Chairs13+ Chairs

$1,000$1,000

Potential Potential Combined Combined One-Year One-Year Revenue Revenue Cafes & Cafes &

One-time One-time (Rounded)(Rounded)

Annual Annual

Projected Projected Streetscape Streetscape

Revenue Revenue

Based on Based on

Current Current Volume:Volume:

$15,000$15,000

(59 (59 streetscape streetscape elements)elements)

$22,800$22,800

36 total cafes36 total cafes

(12 of each size café)(12 of each size café)

$39,000$39,000 $201,000$201,000

Projecting aProjecting a

25% 25% Increase:Increase:

$21,000$21,000

(74 (74 streetscape streetscape elements)elements)

$28,500$28,500

45 total cafes45 total cafes

(15 of each size café)(15 of each size café)

$50,000$50,000 $212,000$212,000


Budget ImplicationsBudget ImplicationsAssuming 25% Increase in ApplicationsAssuming 25% Increase in Applications

Reduced fees with 25% increase in applications have potential to result in: Revenue reduction

Current streetscape revenue: $315,000 Potential revenue with reduced fees and sliding

scale for sidewalk cafés: $212,000 Reduction in annual revenue of $103,000

Increased workload May have staffing and associated cost

implications to the General Fund in addition to any lost revenue


Quality of Life Committee Quality of Life Committee RecommendationRecommendation

Revise City Code to allow two-year trial Revise City Code to allow two-year trial period of the following:period of the following: One-time license fees of $250 (vs. $1,000)One-time license fees of $250 (vs. $1,000) Sidewalk café fees to a sliding scale based Sidewalk café fees to a sliding scale based

on number of tables / chairs of $300 to on number of tables / chairs of $300 to $1,000 (vs. formula determination based on $1,000 (vs. formula determination based on square feet and appraised value, up to a square feet and appraised value, up to a maximum of $2,500)maximum of $2,500)


Next StepsNext Steps Establish and implement Sidewalk Café Establish and implement Sidewalk Café

Design Standards Design Standards Ensure accessibility and conformance with ADAEnsure accessibility and conformance with ADA Ensure adequate sidewalk clearance for Ensure adequate sidewalk clearance for

pedestrian traffic volumes at a particular pedestrian traffic volumes at a particular locationlocation

Minimize conflicts with other uses of the right-Minimize conflicts with other uses of the right-of-way (i.e. bus shelters) of-way (i.e. bus shelters)

Ensure design that enhances streetscapeEnsure design that enhances streetscape Ensure durability of proposed improvementsEnsure durability of proposed improvements


Next StepsNext Steps Survey all existing sidewalk cafes and Survey all existing sidewalk cafes and

determine which:determine which: Are illegal and need to be licensed or terminatedAre illegal and need to be licensed or terminated Meet design requirementsMeet design requirements Do not meet requirements and need to be Do not meet requirements and need to be

brought into conformancebrought into conformance Monitor impact of trial period on revenues Monitor impact of trial period on revenues

and expenditures for upcoming budget yearand expenditures for upcoming budget year


Council Action RequiredCouncil Action Required

Approval of amendments to Chapter Approval of amendments to Chapter 43 of the City Code to implement 43 of the City Code to implement proposed license feesproposed license fees

Streetscape Licenses Economic Development Committee April 21, 2014.

Documents

Transcript of Streetscape Licenses Economic Development Committee April 21, 2014.