Title
(First Reading) An Ordinance to Amend Section 6 of Ordinance 21-2015 An Ordinance Creating Impact Fees To Be Charged New Developments To Fund City Park, Recreation, And Transportation Infrastructure
Body
WHEREAS, Ordinance 21-2015 was adopted on July 6, 2021 to create an impact fees and an Impact Fee Review Committee, and
WHEREAS, Section 9 (a) of Ordinance was 21-2015 was amended by Ordinance 23-2029 on November 20, 2023
WHEREAS, there is a need to amend Section 6 of Ordinance 21-2015 in order to add Section 6 (h) and to state as follows:
Section 6 - Collection of Impact Fees; Exceptions.
(h) Exception for Churches or Places of Worship
1. Purpose and Scope of Exception
An exception to the City of Foley Impact Fee Ordinance is granted for bona fide churches or places of worship. This exception applies to principal worship buildings and ancillary facilities
that support the religious mission, including worship and outreach. The purpose is to acknowledge the public benefits of these institutions while ensuring compliance with the ordinance and preventing misuse.
2. Definition of Church or Place of Worship
For the purposes of this ordinance, a "church" or "place of worship" is defined as a tax-exempt organization under Section 501(c)(3) of the Internal Revenue Code, primarily engaged in regular and organized religious worship and activities. To qualify for this exemption, the following criteria must be met:
a) Primary Purpose: The organization’s principal purpose must be religious worship, teaching, and faith-based outreach.
b) Regular Weekly Service: The organization must hold regular, public worship services in its principal worship facility.
c) Qualified Facilities:
i. The principal facility must be primarily used for religious worship, mission and outreach.
ii. Ancillary facilities (e.g., fellowship halls, classrooms, or administrative offices) must directly support the church’s religious mission.
d) Non-Commercial Use: Facilities must not be used for profit-driven or commercial activities unrelated to the religious mission.
Failure to meet these criteria or misrepresentation of use will result in revocation of the exemption and retroactive collection of impact fees, along with applicable penalties and interest.
3. Applicability of Exception
a) Qualified Structures
The exception applies to the following:
i. Principal worship facilities, such as sanctuaries or chapels, where regular religious services are held.
ii. Ancillary facilities, including fellowship halls, classrooms for religious education, and administrative offices, provided they are directly tied to the church’s religious mission.
b) Excluded Uses
The exception does not apply to facilities or buildings used for profit-driven or commercial purposes, including but not limited to:
i. Commercial enterprises, such as bookstores, coffee shops, cafes, or gift shops.
ii. Rental halls or event spaces used primarily for weddings, parties, or events unrelated to the church’s religious mission.
iii. Recreational or athletic facilities rented to non-congregational groups.
iv. Residences, except those directly tied to clergy or staff involved in the church’s religious mission.
Impact fees for excluded uses will be assessed in accordance with the City of Foley Impact Fee Ordinance.
4. Requirements for Application
To apply for this exception, churches or places of worship must submit the following to the City of Foley Community Development Department prior to the issuance of a building permit:
a) Proof of 501(c)(3) tax-exempt status.
b) A notarized affidavit affirming that all buildings will be used exclusively for religious worship or related ancillary purposes.
c) A site plan and floor plan identifying the buildings for which the exception is sought and their intended uses.
d) A signed acknowledgment of the reversionary clause outlined in Section 5.
5. Reversionary Clause for Change of Use
a) Fee Due Upon Change of Use
If a building granted an exception is sold, leased, or used for purposes not directly related to religious worship or the church’s mission, the impact fee originally exempted shall immediately become due and payable. The fee will equal the amount applicable at the time of construction or the most recent assessment, whichever is greater.
6. Definition of Change of Use
A change of use occurs if the building or facility is no longer primarily or directly used for religious purposes, including:
a) Sale or transfer of ownership to a non-religious entity.
b) Leasing the facility for commercial purposes.
c) Operating the facility for profit-driven or unrelated activities, such as fee-based schools, rental venues, or retail operations.
7. Notification Requirement
The property owner must notify the City of Foley in writing within 30 days of any sale, lease, or change in use of the exempted property.
8. Collection and Enforcement
a) Unpaid fees not received within 90 days of notification will accrue interest and penalties as prescribed by City policy.
9. Revocation of Exemption
The City of Foley may revoke the exemption retroactively if:
a) A change of use is identified without proper notification
BE IT ORDAINED that the Foley City Council as follows:
Section 1. Amends Section 9 (a) of Ordinance 21-2015 to state, "There is hereby created an Impact Fee Review Committee which shall be chaired by the Mayor and comprised of the Mayor, the City Clerk, the City Administrator, the City Engineer, the department heads from finance, parks & recreation, public works, and the executive directors from infrastructure and development and leisure services".
Section 2. "The terms and provisions of this ordinance are severable. If any part or portion of this ordinance is declared invalid, void, or unconstitutional, that portion shall be deemed severed, and the remaining portions of the ordinance shall remain in full force and effect."
Section 3. All ordinances or parts of ordinances, in any manner conflicting herewith are hereby repealed.
Section 4. This ordinance shall become effective upon its publication as required by law.