Navigating the Legal Sea of Zoning Fee Schedules PRESENTED TO: OHIO TOWNSHIP ASSOCIATION WINTER CONFERENCE FEBRUARY 2014 Brad E. Bennett Associate [email protected] ATTORNEYS AT LAW Leaders in Employment Law and Beyond FISHELHASS.COM Fishel Hass Kim Albrecht LLP | 400 S. Fifth Street, Suite 200 Columbus, Ohio 43215 | P (614) 221-1216 | F (614) 221-8769 Navigating the Legal Sea of Zoning Fee Schedules Brad E. Bennett is an attorney with the law firm of Fishel Hass Kim Albrecht LLP. Brad received his law degree, cum laude, from Capital University Law School and received a Bachelor of Science from Ohio University, with a major in Communications and a minor in Business Administration. Mr. Bennett handles cases in both Federal and State courts and administrative agencies. He represents clients in all aspects of civil litigation, labor and employment law, collective bargaining, civil service law, human resource compliance and audits, public sector agency administration, construction law, and small business consulting and formation. Brad is also a sought after speaker and trainer who frequently lectures and conducts training and seminars throughout Ohio. Mr. Bennett is certified as a Specialist in Labor and Employment Law by the Ohio State Bar Association and is a former recipient of the prestigious Burton Award, rewarding effectiveness in legal writing. Brad has previous experience in human resources management and is an adjunct professor of employment law for the Keller Graduate School of Management and DeVry University. Mr. Bennett is the past Chair of the Columbus Bar Association’s Labor and Employment Law Committee, is on the board of the Ohio State Bar Association’s Labor and Employment Section, and is a member of the Ohio and Columbus Bar Associations, as well as a member of the Society for Human Resources Management (“SHRM”) and Human Resources Association of Central Ohio (“HRACO”). ii Navigating the Legal Sea of Zoning Fee Schedules TABLE OF CONTENTS I. Sampling the Water..........................................................................................................1 II. Diving In – Requirements for Zoning Fees .....................................................................1 III. Staying Afloat Without Sinking the Ship – Other Legal Challenges and Questions Regarding Zoning Fees ....................................................................................................6 IV. Recommendations for Legal Zoning Fee Schedules .......................................................11 V. Zoning Resolution Process ..............................................................................................12 iii Navigating the Legal Sea of Zoning Fee Schedules I. II. SAMPLING THE WATER A. How does your township establish fees? B. What methods do you use to set them? C. Are the fees revenue producing or designed to defray zoning expenses incurred? D. How often do you update your fee schedules? E. Do you consider other townships’ fee structures at all? F. Are they specified in your zoning resolution? G. Are fees kept/maintained in a separate special fund? DIVING IN - REQUIREMENTS FOR ZONING FEES A. B. What authority is there to charge zoning fees anyways? 1. The authority of a township to charge reasonable fees was found to be inherent in the power to inspect and regulate the use of property. 1979 OAG 79-051. 2. Where the authority is lodged in a municipality to inspect and regulate, the further authority to charge a reasonable fee to cover the cost of inspection and regulation will be implied. 3. The fee charged must not, however, be grossly out of proportion to the cost of inspection and regulation; otherwise it will operate as an excise tax, which is clearly beyond the power of a municipality to impose. Prudential Co-op. Realty Co. v. City of Youngstown, 118 Ohio St. 204, 214, 160 N.E. 695, 698-99 (1928) Must the exact amount of the fee be specified in the Resolution itself? 1. RC Ch 519 does not require that the amount of fees to be charged for zoning permits be specified in the zoning resolution. If the zoning resolution authorizes the charging of fees, the township trustees may from time to time set the amount of the fees. OAG 79-051. 2. Such fees must, however, bear a reasonable relation to the cost of inspection of the site and issuance of the permits. A larger fee may be charged applicants who apply for a permit after construction has commenced if the increased amount bears a reasonable relation to the extra costs involved. OAG 79-051. 3. Township trustees may provide in zoning regulations for fees for inspecting buildings and issuing permits for buildings in the zoned area, but such fees may be imposed only by the zoning regulations. 1956 OAG 7111; Ohio Rev. Code Ann. § 519.02 1 Navigating the Legal Sea of Zoning Fee Schedules 4. C. A board of township trustees may require that reasonable fees accompany applications made to the zoning inspector or other administrative official for zoning variances or special exceptions, to cover the costs of processing such applications. 1963 OAG 218. What is a “reasonable” fee? Blower v. Alside Homes Corp., 187 N.E.2d 636 (Summit County, Ohio 1963). In Blower, the trustees of Northhampton Township brought an action for a declaratory judgment in order for the court to determine whether the fee schedule determined by Northhampton Township Zoning Resolution was valid under Ohio law. Alside Homes Corporation applied for a zoning certificate to erect a single story manufacturing structure of 312,000 feet. The Zoning Inspector issued the certificate to permit the building of the structure but did not collect the fees at that time because he had not calculated what the exact fee would be. The corporation constructed the building and then refused to pay the zoning permit fees after the cost was made known to it. The corporation argued that the fees were “unreasonable and excessive,” amounting to “a revenue producing ordinance rather than a fee to defray expenses incurred.” The fees totaled $1,840.00. The Township Zoning Resolution at issue provided the following: “Structures or additions having a foundation area of 1000 square feet or less shall be charged a fee of $35.00 —additional area up to 50,000 square feet, shall be charged at the rate of $10 per 1,000 square feet, all additional area above 50,000 square feet shall be charged at the rate of $5.00 per 1,000.” The court reviewed the expenses and revenue incidental to zoning for the four (4) years preceding 1962 (the year in question). The court observed that the expenses for the previous four years combined totaled $8, 070.13 and the revenue for those years totaled $7, 482.19. The court acknowledged that the fee in this isolated case was huge in comparison to the total revenue and expenses of the Township over the previous years. However, the court noted that, with the exception of 1961, the zoning department had a deficit each year that had to be paid from the general fund at the end of the fiscal year. The Township attempted to present evidence of zoning fees charged by other townships in the County to show that their fee schedule was “reasonable.” However, the court did not allow this to factor into whether the fees charged by Northhampton Township were reasonable. The judge found that information was wholly irrelevant and immaterial. The court acknowledged that “reasonableness” cannot be determined by a “hard and fast rule of law.” 2 Navigating the Legal Sea of Zoning Fee Schedules The court, instead, noted that, “it is not necessary that the fees charged exactly balance the expenses incurred and whether or the not the surplus of fees over expenses is insufficient to render the regulations under which such fees were established, invalid, is a mixed question of law and fact and where no abnormal excess is shown the court cannot substitute its judgment as to the expenditures and estimates for that of the board.” However, “if the amount of the fee is wholly out of proportion to the expense involved, it will be declared a tax and invalid.” Therefore, the issue here was whether the ordinance was a revenue generator (“tax”) or whether it was passed to defray the expenses incurred in zoning. The court ultimately found that the fee was reasonable and necessary and not considered a tax. In reaching this decision, the court found that the zoning department should be self-sufficient, and that the fees charged should cover the cost to run the department. The fees should not, however, be used to offset the costs of other departments. The court identified the following list of expenditures that could be included in determining what reasonable fees to charge: D. Department expenditures Zoning inspector’s fee Clerk’s salary The cost of maintenance of board of appeals Other administrative and regulative costs Supplies How do I know if my “reasonable fee” may constitute an unlawful tax? Drees Co. et al v. Hamilton Township, 132 Ohio St.3d 186 (Ohio Sup. Ct., 2012). In Drees, the Supreme Court of Ohio found that impact fees imposed upon an application for zoning certificates were operating as impermissible taxes as opposed to reasonable fees and were invalid and unauthorized. In 2007, the township passed an amendment to its zoning resolution. The resolution adopted a schedule of fees to be charged to applicants for zoning certificates for new construction or redevelopment. There were four categories of fees: road-impact, fireprotection-impact, police-protection impact, and park-impact. The Township Resolution stated that the, “purpose of the impact fee is to benefit the property by providing the township with adequate funds to provide the same level of service to that property that township currently affords previously developed properties.” The fees varied depending upon land use. For example: 3 Navigating the Legal Sea of Zoning Fee Schedules For the owner of a single-family detached dwelling, the total assessment was $6,153: o $3,964 for roads; o $335 for fire; o $206 for police; o $1,648 for parks. For the owner of property to be used for retail/commercial purposes the total assessment, per 1,000 square feet, was $7,962: o $7,265 for roads; o $432 for fire; o $265 for police. The township deposited all fees collected into an impact-fee account, rather than the general fund. The account was further divided into one of the four different types of impact fee. Money could only be used for the purpose of each account and was spent on a “first in/first out” basis. Money not spent within 7 years of its collection was to be refunded to the current property owner. The township would not issue a zoning certificate until the applicant paid the applicable impact fee. The Drees Co paid the impact fees (totaling $2,030.16) under protest and then sued alleging that the impact fees were unconstitutional and contrary to Ohio law. The trial court and the 12th District Court of Appeals held that the fees charged were not an impermissible tax. The Ohio Supreme Court disagreed, finding that the impact-fees did constitute a tax and that the township was unauthorized to impose such a tax. Per R.C. 504.04(A)(1), a limited-home-rule township may, by resolution, exercise powers of local self-government but “shall enact no other taxes other than those authorized by general law.” The question here was whether the impact fees were taxes “other than those authorized by general law.” The court noted that general Ohio law provides specific methods of taxation for townships to raise revenue in order to pay for police and fire, parks, and roads. There was no dispute that the impact fees here did not meet the requirements of those methods of taxation. As a result, the court stated that if the impact fees were found to be taxes, they violated RC 504.04. The Court, relying on State ex rel. Petroleum Underground Storage Tank Release Comp. Bd. v. Withrow, 62 Ohio St.3d 111 (1991), analyzed whether the assessments were taxes. The Court weighed the following four Withrow factors: Are the fees imposed in furtherance of regulatory measures “designed to address the . . . problems”? Are the assessments kept separate from the general fund and used for “narrow and specific purposes”? 4 Navigating the Legal Sea of Zoning Fee Schedules Are fees imposed in return for a service the government provides to the party? When the “unobligated balance in the fund exceeded a certain amount, there would be no assessment for that year.” Similarly, if the fund dipped below a certain amount, the authority was permitted to charge a “supplemental assessment” In applying Withrow to Hamilton Township, the Court found that the impact fees lacked a regulatory aspect as required by the first Withrow factor. The fees were revenue generators imposed to guarantee consistent levels of service, not to protect the public from certain industry harms. The Court found that although Hamilton Township placed the funds into a separate account, the use of the funds was very general in nature and all towards the normal expenditures of government. Moreover, the entire community benefited from the fees, not just the assessed parties. The Court found it persuasive that no specific services were provided in exchange for the fees, and therefore, the assessed party reaped no additional benefit from the fees. As taxpayers, they were already taxed for, and entitled to use, police and fire protection, the use of parks and roadways. Finally, Hamilton Township refunded fees only if the township decided not to spend the money instead of being tied to certain events like in Withrow. The Supreme Court also applied a three-factor test that was used by the Sixth Circuit in Am. Landfill v. Stark Solid Waste District, 166 F.3d 835 (6th Cir., 1999), and considered: 1) the entity that imposes the assessment; 2) the parties upon whom the assessment was imposed; and 3) whether the assessment is expended for general public purpose, or used for the regulation or benefit of the parties upon whom the assessment is imposed. According to the Court, the predominant factor in this analysis is the use of the funds. Under this analysis the Court found that the assessment was imposed by a legislative body, which made it more like a tax. Further, the parties upon which the assessment was imposed was not a specific group or industry, which made it more like a tax. The third factor, use of revenue, also made the impact fees a tax since they were used for public benefit (the Resolution stated that it’s “purpose” was to benefit the property to ensure the same level of service provided to that property that the township already provides to developed property. Essentially, the impact fees were intended to prevent any diminishment of services to anyone in the township. Ultimately, citing Home Builders Assn. of Mississipi Inc. v. Madison, 143 F.3d 1006 (5th Cir. 1998), the Supreme Court noted, “[I]t is difficult to imagine that an ordinance designed to protect and promote the public health, safety and welfare of an entire community could be characterized as anything but a tax.” Since the taxes were not authorized by general law, the township was not authorized to impose them under R.C. 504.04(A)(1). 5 Navigating the Legal Sea of Zoning Fee Schedules E. How do I distinguish between proper zoning fees and improper taxes? According to the Ohio Supreme Court, in Drees Co. et al v. Hamilton Township, 132 Ohio St.3d 186 (Ohio Sup. Ct., 2012) citing San Juan Cellular Tel. Co. v. Pub. Serrv. Comm. Of Puerto Rico, 967 F.2d 683, 685 (1st Cir. 1992) : The classic “tax” is imposed by a legislature upon many, or all, citizens. It raises money, contributed to a general fund, and spent for the benefit of the entire community . . . The classic “regulatory fee” is imposed by an agency upon those subject to its regulation . . . It may serve regulatory purposes directly by, for example, deliberately discouraging particular conduct by making it more expensive . . .Or, it may serve such purposes indirectly by, for example, raising money placed in a special fund to help defray the agency’s regulation-related expenses. Questions to ask in determining fees from taxes: Are fees imposed in furtherance of regulatory measures? o Is it imposed in furtherance of statutes designed to protect public from harms? o Does it encourage the assessed parties’ compliance with certain statutory obligations or protect the public from specific threats? III. Are funds placed in separates account and used only for narrow and specific purposes? o Does it inure benefit to the entire community instead of to the assessed party? o Is the use of money general in nature? Is the fee charged in return for a service the government/municipality provides? o Does the assessed party get any particular service that other non-assessed parties do not receive? o Do the targets of the assessment receive greater benefits? Is there private or public benefit? STAYING AFLOAT WITHOUT SINKING THE SHIP – CHALLENGES AND QUESTIONS REGARDING ZONING FEES A. OTHER LEGAL What if I Don’t Comply with the Ohio Public Records and Open Meetings Act? Ohio’s Public Records and Open Meetings laws, collectively known as the “Sunshine Laws,” give Ohioans access to government meetings and records. The Open Meetings Act requires public bodies in Ohio to take official action and conduct all deliberations upon official business only in open meetings where the public may attend and observe. 6 Navigating the Legal Sea of Zoning Fee Schedules B. Must provide: Openness; Notice; Minutes Executive Sessions o No vote or other decision-making may take place during executive session. Consequences for not adhering to them o If an injunction is issued, the public body must correct its actions and pay court costs, a fine of $500, and reasonable attorney fees subject to possible reduction by the court. o Any action taken by a public body while that body is in violation of the Open Meetings Act is invalidated. o A member of a public body who violates an injunction imposed for a violation of the Open Meetings Act may be subject to removal from office. Can Zoning Fees Constitute a “Takings” Under the U.S. Constitution? Village of Maineville Ohio LLC v. Hamilton Township Boards of Trustees, (6th Circuit, 2013) A company, Salt Run LLC, sought to avoid new impact fees imposed on developers by Hamilton Township by convincing the Village of Maineville to annex the land owned by the company. The impact fees would amount to $2,100 per lot that Salt Run sold to a builder once the builder applied for a zoning certificate. The zoning regulations placed significant economic pressures on Salt Run. The Village of Maineville ultimately agreed and annexed the land. When Hamilton Township was unable to stop the annexation in state court, it countered by asserting a lien on the property for payment of the impact fees. Salt Run then sued Hamilton Township for several state law claims as well as federal Section 1983 claim that the lien constituted an unconstitutional “taking.” The district court denied Salt Run’s takings claim to which it appealed to the 6th Circuit. After the annexation, the properties remained in Hamilton Township but became subject to Maineville’s control, subjecting the properties to some regulations from the former and others from the latter under O.R.C. 709.023. Essentially, Mainesville took over zoning authority and police services while Hamilton Township handled fire and parks services. The 5th Amendment, through the 14th Amendment, prevents the States from “taking private property for public use, without just compensation.” A takings claim can include the regulatory taking to which Hamilton Township allegedly subjected Salt Run through its lien and impact fees. However, if a government’s appropriation of property is directed to a public use and the government pays fair value, it has not offended the 5 th Amendment. The 6th Circuit, citing to Coles v. Granville, 448 F.3d 853 (6th Cir. 2006), noted that Ohio provides an adequate procedure for owners to request compensation for regulatory takings - through seeking a writ of mandamus. However, Salt Run did not invoke this 7 Navigating the Legal Sea of Zoning Fee Schedules procedure. The Court stated that a takings claim is generally not ripe for review unless the owner has “used the procedure and been denied just compensation.” Salt Run attempted to save its argument by stating that the procedure only applies to “as-applied” challenges, not the facial challenge it was making. An “as-applied” challenge claims that the particular impact of government action on a specific piece of property requires payment of just compensation. However, a “facial challenge” argues that the mere enactment of a statute constitutes a taking. The court rejected this argument stating that Salt Run was challenging a specific lien that applied only to it and that was never duplicated against another developer. Therefore, it was clearly an “as-applied” challenge that was forfeited when Salt Run failed to follow the mandamus procedure. The Court acknowledged, in dicta, that Salt Run’s chances would have been different if it would have challenged Hamilton’s ability to assert liens at all and sought an invalidation of ORC 5301.252 which allows any “person” to record an affidavit of lien. While this case was advancing, the Ohio Supreme Court ultimately ruled that Hamilton Township’s fees were invalid and that it lacked authority to collect the fees. See elsewhere in this outline - Drees Co. v. Hamilton Twp., 132 Ohio St.3d 186 (Ohio 2012) C. Can Zoning Fees be Challenged Under the Due Process Clause of the U.S. Constitution? The due process clause of the U.S. Constitution guarantees that people will not be deprived of their liberty interests with both procedural and substantive due process of law. 1. Procedural: requires notice and a right to be heard. 2. Substantive: zoning decisions cannot be arbitrary or irrational. instead, be rationally related to a legitimate governmental interest. a. b. They must, May violates substantive due process “on its face” (as written) or: “As applied” to a particular parcel of land. Procedural due process challenges tend to be avoidable by permitting variances to be requested and through the provision of an appeal to the BZA. See Richardson v. Township of Brady, 2000 WL 875402 (6th Cir., 2000) For substantive due process purposes, it is important that any ordinance or resolution providing for fees carefully set forth the “objective” of the fees so as to avoid any “on its face” challenges. Id. Is the rationale set forth rationally related to government’s interest in zoning? If so, it will likely survive a substantive due process challenge. For “as applied” substantive due process challenges, it is crucial that the Township utilize some method in establishing the fee structure so as to show that the fees were not arrived at arbitrarily. Id. If the method used is rationally related to the stated zoning goals, then 8 Navigating the Legal Sea of Zoning Fee Schedules it should comply with legal precedent that, “a legislate e body need not even select the best or least restrictive method of attaining its goals so long as the means selected are rationally related to those goals.” Id. D. Can a Municipality Require a County to Pay a Fee for a Zoning Permit? City of E. Cleveland v. Bd. of Cnty. Comm'rs of Cuyahoga Cnty., 23 O.O.3d 46, 430 N.E.2d 456, 458 (1982). The Cuyahoga County Board of Commissions along with the Cuyahoga County Board of Mental Retardation decided to build a school for the mentally handicapped on a parcel of land that had been originally zoned for single and two-family dwelling units by the City of East Cleveland. The City of East Cleveland filed for a restraining order and preliminary injunction contending that the county needed to obtain the appropriate zoning permit and pay the required zoning fees. The county countered that, through the power of eminent domain, it cannot be limited by a municipality in using land for a public purpose. The trial court reasoned that the Cuyahoga County Board of County Commissioners, because it possessed the power of eminent domain, was not restricted by local zoning ordinances and therefore did not have to obtain a conditional zoning use permit before applying to the East Cleveland Building Department; nor could the city impose a fee on the county for the issuance of the building permit. The Court of Appeals and the Ohio Supreme Court reversed. The Supreme Court rejected the concept of absolute governmental immunity from local zoning requirements based upon eminent domain powers. Instead, the Ohio Supreme Court instituted a balancing test for courts to consider in such situations. The Supreme Court stated: * * * Where compliance with zoning regulations would frustrate or significantly hinder the public purpose underlying the acquisition of property, a court should consider, inter alia [1] the essential nature of the government-owned facility, [2] the impact of the facility upon surrounding property, and [3] the alternative locations available for the facility, in determining whether the proposed use should be immune from zoning laws. The last issue was whether a municipality had the authority to charge a county a fee for the review of plans and specifications by the municipality's building department for the construction of a county project. The Ohio Supreme Court held: The General Assembly has not expressly granted a municipality the right to charge a fee. In R.C. 3791.07, however, the state Board of Building Standards is expressly authorized to charge a fee for review of plans and specifications. In the absence of such a provision for municipalities, . . . municipalities shall not charge a fee [to the County] for review of plans and specifications. 9 Navigating the Legal Sea of Zoning Fee Schedules The Ohio Supreme Court concluded that the City, by not being provided with express power, could not charge the county a fee for reviewing plans and specs. See also Nieaus v. State, 111 Ohio St. 47 (1924) – holding that a board of education, taking on the sovereign power of the state, cannot be required to secure a zoning permit for the erection of a public school building from a township. In the absence of a statute authorizing a township to regulate the location or type of building that a school may erect, it has no power to do so. E. Are there any limits on the fees that can be reimbursed for zoning hearings? Jewish Reconstructionist Synagogue of N. Shore, Inc. v. Inc. Vill. of Roslyn Harbor, 40 N.Y.2d 158, 352 N.E.2d 115 (1976) In this New York case, a religion corporation sought a permit for a religion house of worship. The corporation’s application provoked strong opposition from prospective neighbors. Instead of holding a hearing in its customary fashion (by holding it at a member’s home, taping the hearing, etc.), the Board decided to hire a hall to host the hearing, retained counsel, and hired a stenographer to transcribe the meeting. The corporation was charged $2,561.00 for expenses other than the stenography in connection with the hearing. The village's Ordinance specified that any applicant applying for a variance or a special use permit, other than one seeking a variance in connection with a single-family residence, in addition to the fees for the variance and permit, would have to pay the actual costs incurred by the board in passing on the matter. “Section 1 of the ordinance specifically states that such costs may include: ‘(a) Advertising (b) Stenographic minutes of meetings (c) Engineering costs (d) Inspection costs (e) Legal fees (f) Recording fees.’ No precise amounts or ceilings are spelled out.” The reasonableness of the fees was not questioned; however, the Board’s authority to impose such open-ended fees upon an application was challenged. The question to the court was whether a local government may require applicants for variances and special use permits before its board of zoning appeals to pay certain costs incurred by the board in the course of reaching its determination. The New York Court of Appeals held that the village could not, pursuant to the ordinance, require applicants for variances and special use permits to pay costs of legal fees, meeting hall rentals and costs of transcription and copying of minutes incurred by the board of zoning appeals. “The charges for legal fees, those for transcribing the record of the proceedings and supplying copies of it to each board member, and those for the rental of a capacious auditorium in which large numbers of spectators could be accommodated at each of the board's sessions, stand on a different footing. They did not represent necessary expenditures but rather conveniences to the board for fulfillment of what in the end was its own decision-making responsibility.” 10 Navigating the Legal Sea of Zoning Fee Schedules While not an Ohio decision, the holding is good, solid advice for Ohio public entities to follow when establishing reasonable (and legal) fees. F. Cost Details Matter Cassell v. Lexington Twp. Bd. of Zoning Appeals, 163 Ohio St. 340, 127 N.E.2d 11 (1955) In this case, the Ohio Supreme Court held that a township regulation providing only that a certain area be zoned for farming, residential, commercial, and recreation uses, but which does not specify which portions of the area may be used for which use, will be invalidated. ‘The zoning board of appeals was of the opinion that upon the basis of the declared purpose of zoning laws as contained in the Ohio statute, it is their proper function to deny or refuse permits in instances when it is felt that the property proposed to be built does not match the character of the improvements in the area in which the building is to be done and would have the effect of depressing property values on existing improvements.’ “Where zoning resolutions did not specify any regulation as to cost and nature of dwellings, size of lots or effect on property values, action of boards in refusing to issue building permit because of cost and nature of proposed dwelling, inadequacy of lot size and depressing of property values was arbitrary and unreasonable.” IV. RECOMMENDATIONS FOR LEGAL ZONING FEE SCHEDULES A. While it may well be that the fees will not, in each case, exactly reflect the Township’s cost of administering the ordinance as to any particular developer, they may be fixed in such manner as, over the long run, to recover in the aggregate approximately the total cost of administration of the ordinance. 4 Rathkopf's The Law of Zoning and Planning § 69:23 (4th ed.) B. Tie fees to actual costs (cost analysis) 1. Conduct periodic audits/review 2. Track costs of each component of zoning to have understanding of impact (use averages as guide) 3. EX: variance fees should cover legal and public notice costs, prorated costs of the hearing (staff, material, site visits, packet delivery, etc.) C. Place revenue from zoning fees in separate, limited fund? 1. See Dree v. Hamilton 2. Easier to track and determine if “reasonable” D. While the fees charged by other Townships may not be relevant in a legal challenge, comparable jurisdictions (size, growth, makeup, etc…) may be helpful for trustees to review as an internal guide/compass when compiling your own fee schedule. E. What has been the community impact of your fees? (increase/decrease development?) 1. Are commercial fees too high? (pushing away development) 11 Navigating the Legal Sea of Zoning Fee Schedules 2. 3. 4. V. Have they been a factor for annexation decisions? (should not result in that) Are variance fees too low? (are people asking for everything?) Track costs of each component of zoning to have understanding of impact (use averages as guide) ZONING RESOLUTION PROCESS A. Adopting the Plan 1. “Except as otherwise provided in this section, in the interest of the public health and safety, the board of township trustees may regulate by resolution, in accordance with a comprehensive plan, the location, height, bulk, number of stories, and size of buildings and other structures, including tents, cabins, and trailer coaches, percentages of lot areas that may be occupied, set back building lines, sizes of yards, courts, and other open spaces, the density of population, the uses of buildings and other structures, including tents, cabins, and trailer coaches, and the uses of land for trade, industry, residence, recreation, or other purposes in the unincorporated territory of the township.” Ohio Rev. Code Ann. § 519.02 2. Before availing itself of the powers conferred by section 519.02 of the Revised Code, the board of township trustees shall pass a resolution declaring its intention to proceed under sections 519.02 to 519.25 of the Revised Code. The board may act in the following manner: a. It may adopt such a resolution upon its own initiative. b. It shall adopt such a resolution if there is presented to it a petition, signed by a number of qualified voters residing in the unincorporated area of the township or part thereof to be included in the zoning plan equal to not less than eight per cent of the total vote cast for all candidates for governor in such area at the most recent general election at which a governor was elected, requesting the board to proceed with township zoning under such sections. Ohio Rev. Code Ann. § 519.03 3. The board of township trustees of any township proceeding under sections 519.01 to 519.99 of the Revised Code, shall create and establish a township zoning commission. The commission shall be composed of five members who reside in the unincorporated area of the township, to be appointed by the board. Ohio Rev. Code Ann. § 519.04 4. Before certifying its recommendations of a zoning plan to the board of township trustees, the township zoning commission shall hold at least one public hearing, notice of which shall be given by one publication in one or more newspapers of general circulation in the township at least thirty days before the date of such hearing. The notice shall state the place and time at which the text and maps of the proposed zoning resolution may be examined Ohio Rev. Code Ann. § 519.06 12 Navigating the Legal Sea of Zoning Fee Schedules 5. Following the hearing provided for in section 519.06 of the Revised Code the township zoning commission shall submit the proposed zoning resolution, including text and maps, to the county or regional planning commission of the county or district in which the township is located, if there is such a commission, for approval, disapproval, or suggestions. The approval of the planning commission shall be conclusively presumed unless, within twenty days after receiving the proposed zoning resolution, it notifies the zoning commission to the contrary. In the event the planning commission disapproves of the proposed zoning resolution or suggests any material change, the zoning commission shall hold a public hearing on the resolution, due notice of which shall be given as provided in section 519.06 of the Revised Code. Ohio Rev. Code Ann. § 519.07 B. 6. After receiving the certification of a zoning plan from the township zoning commission, and before adoption of any zoning resolution, the board of township trustees shall hold a public hearing on the resolution, at least thirty days' notice of the time and place of which shall be given by one publication in a newspaper of general circulation in the township. Ohio Rev. Code Ann. § 519.08 7. No change in or departure from the text or maps, as certified by the township zoning commission, shall be made by the board of township trustees unless it is first resubmitted to the commission for approval, disapproval, or suggestions. Upon receipt of the recommendations of the township rural zoning commission regarding the proposed changes, the board of township trustees shall hold a second public hearing, at least ten days notice of the time and place of which shall be given by one publication in one or more newspapers of general circulation in the township affected. If such changes are disapproved by the zoning commission, the provision so disapproved must receive the favorable vote of the entire membership of the board of township trustees in order to be adopted. Ohio Rev. Code Ann. § 519.09 8. After receiving the recommended zoning plan from the township zoning commission and holding the public hearing provided for by section 519.08 of the Revised Code, the board of township trustees shall consider such recommendations and vote upon the adoption of the zoning resolution Ohio Rev. Code Ann. § 519.10 Appeals 1. The board of township trustees may require that the owner or lessee of property filing an application to amend the zoning resolution pay a fee to defray the cost of advertising, mailing, filing with the county recorder, and other expenses. If the board of township trustees requires such a fee, it shall be required generally, for each application. The board of township trustees, upon the passage of such a 13 Navigating the Legal Sea of Zoning Fee Schedules resolution, shall certify it to the township zoning commission. Ohio Rev. Code Ann. § 519.12 2. In any township which adopts zoning regulations the board of township trustees shall appoint a township board of zoning appeals composed of five members who shall be residents of the unincorporated territory in the township included in the area zoned. Ohio Rev. Code Ann. § 519.13 (West) 3. The township board of zoning appeals may: a. Hear and decide appeals where it is alleged there is error in any order, requirement, decision, or determination made by an administrative official in the enforcement of sections 519.02 to 519.25 of the Revised Code, or of any resolution adopted pursuant thereto; b. Authorize, upon appeal, in specific cases, such variance from the terms of the zoning resolution as will not be contrary to the public interest, where, owing to special conditions, a literal enforcement of the resolution will result in unnecessary hardship, and so that the spirit of the resolution shall be observed and substantial justice done; c. Grant conditional zoning certificates for the use of land, buildings, or other structures if such certificates for specific uses are provided for in the zoning resolution. If the board considers conditional zoning certificates for activities that are permitted and regulated under Chapter 1514. of the Revised Code or activities that are related to making finished aggregate products, the board shall proceed in accordance with section 519.141 of the Revised Code. d. Revoke an authorized variance or conditional zoning certificate granted for the extraction of minerals, if any condition of the variance or certificate is violated. Ohio Rev. Code Ann. § 519.14 4. Such appeal shall be taken within twenty days after the decision by filing, with the officer from whom the appeal is taken and with the board of zoning appeals, a notice of appeal specifying the grounds. The officer from whom the appeal is taken shall transmit to the board of zoning appeals all the papers constituting the record upon which the action appealed from was taken. Ohio Rev. Code Ann. § 519.15 5. No person shall locate, erect, construct, reconstruct, enlarge, or structurally alter any building or structure within the territory included in a zoning resolution without obtaining a zoning certificate, if required under section 519.16 of the Revised Code, and no such zoning certificate shall be issued unless the plans for the proposed building or structure fully comply with the zoning regulations then in effect. 14
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