TR9303-CS 921014MEMORANDUM
TO: Frank Trando, Director of Finance
FROM: Gary L. Sieb, Director of Planning and Community Services
SUBJECT: Impact Fees-Streets
DATE: October 15, 1992
Thanks for the copy of the state law regarding impact fees (SB 336). As I reviewed the
bill, I was struck by Sec. 1, (B) which states in part: "Impact fees do not include...(ii)
dedication of rights-of-way,...or construction of streets...when required by valid ordinances
and are necessitated by and attributable to the new development."
There is no question (in my mind, anyway) that the subdivision ordinance grants us the
right to require dedication, construction, and escrow funding. The only "cloudy" issue
relates to "...necessitated by and attributable to the new development". I submit that
interpretation is subject to differing opinions, but would be willing to challenge the
Bamburg meaning based on the substantial amount of funding involved if the Bamburg
case sets some sort of precedence.
,'.;
rIES TOWNS AND VILLAGES
~ , Title 28
inmatured coupons appurtenant
"f t ne State of Texas, but to the
;.,:ol1sistent with the provisions of
prevail; and this Act shall take
c'itv charter provisions
to'; amended by Acts 1,96'7, 60.~h Leg;,
~, 1967, 60.th Leg" p, 12,39, ch ~63, 9 ",
Leg., p. 180.9, ch. 536, 9 1, eff. .June 1,
..h 536, 9 2, eff. June 1, 1971: Sec. 2
/.7, 1973: Acts 1973. 63rd Leg" p. 791,
':l. 63rd Leg" p. 797. eh 358. 9 2, ef.f.
, 798. ch, 358, 9 3. eff, June 12, 1970;
f March 20., 1975: Sec. 3a amended by
Sec. :k(a) amended by Acts 1977, 6?~h
d by Acts 1977, 65th Leg.. p. 41, ch. 2;),
I Leg., p. 960., ch. 366. 9 2, eff. 9ct. 1,
. art. 2. 9 1, eft Aug. 31, ] 981; ::;ec. 3f
.ff. Aug. 31. 1981; See. 3a amended by
:1 Sec. 3c amended by Acts 1983, 68th
'v' Acts 1983, 68th Leg., p. 4930., ch. 879,
19, 9 1, eff. Sept. 1, 1983; Sec. 3f(a), Ic),
pt, 1, 1985; Sec, 3ala) amended by Acts
, amended by Acts 1987, 70th Leg., ch.
",70th Leg" ch. 1125, 9 3, e!f. ~ept. 1,
200 9 1, eff. Sept. 1. 198,; ::;ec. 3h
q 2. eft Sept. 1, 1987.
Act:
.t authorizing certain cities u) establish.
purchase, construct. improve. .enlarge,
'pair, operate and maintain certam pubhc
ments such as civic centers, CIVIC center
s auditoriums, opera houses, musIc
,hibitJon halls, coliseums, museums.. h.
or other city buildings, and to estabilsh,
purchase. construct, improve, enlarge,
'epair. operate and mamtam structures,
areas or facilities. located at or III the
.te vicinity of such public Improvements;'
,sed in connection with such pubilc Im-
<,nts for off-street parkmg or storage. of
chicles or other conveyances; proVldmg
.,h city may lease such structures, park-
as or- facilities to any person. persons.
,tlon or corporations on such terms ar.d
'ns "" said city shall deem appropriate;
zing such CIties to issue negotIable reve-
,nds to provide funds for estabhshmg,
~g. purchasing. constructmg, Improvmg,
ng, equipping and repamng. such pubhc
!'ments and containing prOVISIons relatmg
i bonds and the revenues pledged m pay-
ilereof; authorizing the Issuance of reve-
funding bonds and eontaining provIsions
g to said bonds and the revenues pledged
ment thereof; providing that thiS Act IS
itJve "f existing laws but provldmg that
:.it shall take precedenct' over inCOnSIstent
,fllcting laws and llver all city charter
.ons; prOVIding a severabilIty clause; con~
, othf'r provisions relatlllg w the subject.
1
""
--,--
,,~,r ,,~"",'./
}.,..--; (,r-it. c<: 1>(..
/:YJ'k
,)J /7J~
,11
-"~ il
., h", (/El.~..v
CITIES, TOWNS AND VILLAGES
Title 28
and declaring an emergency. Acts 1965, 59th
I..€g., p. 148, ch 63.
Cross References
AlcoholIc beverage permits and lIcenses. local
fee authorized under this arbcle, see V.T.C.A.
Alcoholic Beverage Code, 99 11.38. 61.36.
Auditoriums, joint establIshment and oper-dtion
by certain counties and cities, see art. 2372d-9.
ColIseum, auditorium or building for annual
exhibits, power of commissioners court to pur-
chase or construct, see art, 2372d-2.
C...oliseums or stadiums of counties in excess of
;,00.,000., sale to cities to which this article ap-
plies, see art. 1269j--4.2.
C.ountJes, public improvements to attract visi-
tors and tourists, bonds. and occupancy tax, see
art, 2372d--8.
Exposition and conventJon halls in cities of
290.,000 or more population, see art. 1182e.
Joint establishment and operation of muse-
ums, counties of 20,000 or less and cities of
10,000 or more. see art. 2372d-5.
"
Art. 1269j-4.11
Joint establishment and operation of recrea-
tional facilities, exercise of powers under this
article, see art. 60.8H, 9 2a.
Joint establishment of recreational facilities,
operation under this arbcle, see V.T.C,A. Local
Government C.ode, 9 332.021.
Municipal hotel occupancy tax, pledge of tax
receipts to pay bonds issued under this article,
see V,T.C,A. Tax C.ode, U 351.102, 351.104, 351.-
105, 351.106,
Validation of proceedings, see art. 1269j-9,
Law Review Commentaries
Law and the arts: Protecting artist's "moral
rights", Karen F, Leback, 20 Houston Lawyer
37 (Dec. 1982).
Library References
Municipal Corporations *,,956(3), 962.
C,J.S, Municipal Corporations n 1978, 1993,
1994,
Art. 1269j-4.11. Impact fees for capital improvements or facility expansions
Definitions
Sec. 1. In this Act:
(1) "Capital improvements plan" means a plan required by this Act which identifies
capital improvements or facility expansions pursuant to which impact fees may be
assessed.
(2) "Capital improvement" means water supply, treatment, and distribution facilities;
wastewater collection and treatment facilities; stonn water, drainage, and flood control
facilities; whether or not located within the service area, or roadway facilities, with a life
expectancy of three or more years, owned and operated by or on behalf of a political
subdivision,
(3) "Facility expansion" means the expansion of the capacity of an existing facility
which serves the same function as an otherwise necessary new capital improvement, in
order that the existing facility may serve new development. "Facility expansion" does
not include the repair, maintenance, modernization, or expansion of an existing facility to
better serve existing development.
(4)(A) "Impact fee" means a charge or assessment imposed by a political subdivision
against new development in order to generate revenue for funding or recouping the costs
of capital improvements or facility expansions necessitated by and attributable to such
new development. As used in this Act, the tenn "impact fee" includes amortized charges
as well as lump-sum charges and includes capital recovery fees, contributions in aid of
construction, and any other fee which functions as described in this definition.
(B) Impact fees do not include (i) dedication of land for public parks or payment in lieu
thereof to serve park needs; (ii) dedication of rights-of-way or easements, or construction
or dedication of on-site water distribution, wastewater collection or drainage facilities, or
streets, sidewalks, or curbs when such dedications and construction are required by valid
ordinances and are necessitated by and attributable to the new development; or (ill) lot or: Q
acreage fees to be placed in trust funds for the purpose of reimbursing developers for I' \-J
oversizing or constructing water or sewer mains or lines; provided, however, no item '
which is included in the capital improvements plan shall be required to be constructed
except pursuant to Subdivision (2) of Subsection (h) of Section 2 of this Act, and,d
shall ~ .reqWrecl to eoaatnet: ... ,. tn.......: '< -.' ... .. , .
facilitiel.
(5) "Land use assumptions" includes a description of the service area and projections of
changes in land uses, densities, intensities, and population therein over at least a lO-year
period.
57
Art. 1269j-4.11
l
I
CITIES. TOWNS AND VILLAGES
Title 28
!6l "New development" means the subdivision of land; or the construction, reconstruc-
tion, redevelopment, conversion, structural alteration, relocation, or enlargement of any
structure. or any use or extension of the use of land; any of which increases the number
of service units.
(7) "Political subdivision" means a city or town, whether operating under general law
or under special or home-rule charter, a district or authority created under Article III,
Section 52 or Article XVI, Section 59 of the Texas Constitution, or, for the purposes set
forth in Section 10 of this Act, certain counties described in Section 10.
t81 "Roadway facilities" means arterial or collector streets or roads which have been
designated on an officially adopted roadway plan of the political subdivision, together
with all necessary appurtenances, but does not include any roadways or associated
improvements designated on the federal or Texas highway system.
(9) "Service area" means the are, within the corporate boundaries, or extraterritorial
Jurisdiction as defined by the Municipal Annexation Act (Article 970a, Vernon's Texas
Civil Statutes) 1 of the political subdivision to be served by the capital improvements or
facilities expansions specified in the capital improvements plan, except roadway facilities.
The service area, for the purposes of this Act, may include all or part of the land within
the political subdivision or its extraterritorial jurisdiction, except for roadway facilities.
For roadway facilities, the service area is limited to an area within the corporate
boundaries of the political subdivision and shall not exceed a distance equal to the average
trip length from the new development, but in no event more than three miles, which
service area shall be served by the roadway facilities designated in the capital improve-
ment plan.
(10) "Service unit" means a standardized measure of consumption, use, generation, or
discharge attributable to an individual unit of development calculated in accordance with
generally accepted engineering or planning standards for a particular category of capital
improvements or facility expansions,
1 Repealed S'*'. now, V.T.e.A. Local Government Code, ~ 43.001.
Authorization of Impad Fee
Sec. 2. (a) Unless otherwise specifically authorized by state law or this Act, no
governmental entity or political subdivision shall enact or impose an impact fee. Political
subdivisions are authorized to enact or impose impact fees on land within their corporate
boundaries or extraterritorial jurisdictions only by complying with this Act, except impact
fees shall not be enacted or imposed in the extraterritorial jurisdiction for roadway
facilities. A municipality may contract to provide capital improvements, except for
roadway facilities, to an area outside of its corporate boundaries and extraterritorial
jurisdiction and may charge an impact fee pursuant to the contract, but if an impact fee is
charged therein, the municipality must comply with this Act.
. (b) An., ,~.. .... fee may. be. ,imposed~~:'.,.IiMl'.iIMl." ~. "". .%.>.
bbptvfttllleAt.e Of tad1:it1 ~.,~ .... UlIIlrdt.Icl ~tlt
price, aurvejibg an,s ~'~" ., "~.~.'.' ~."'~ . ,.,
court awaiilar~ .++~.. ,. ". :ucV.wnAOOt ... . .'
paidCir~t:l:~~~7.~,."
.~. ... ~.tiDc the capital improvements plan who IS not Ul
poJiQeaJ -Bubdmaion. Notwithstanding any other provision of this Act, the Edwards
Underground Water District or a river authority, which is authorized elsewhere by state
law to charge fees which function as impact fees as defined in this Act, may use ~mpact
fees to pay a staff engineer who prepares or updates a capital imPT<?vements. plan und~r
this Act. Projected interest charges and other finance costs may be mcluded m det~rmm-
ing the amount of impact fees only if the impact fees are used for the payment of
principal and interest on bonds, notes, or other obligations is~~ed by or ~m ~half. o.f t~e
political subdivision to finance the capital improvements or faCIlIty expansIOns IdentifIed m
the capital improvements plan and are not used to reimburse bond funds expended for
facilities that are not identified in the capital improvements plan.
(c) Impact fees shall not be adopted or used to pay for any of the following:
(1) construction, acquisition, or expansion of public facilities or assets other than capital
improvements or facility expansions identified in the capital improvements plan;
58
;,
j
I
t
i
!
j
CITIES, TOWNS AND VIL
Title 28
(2) repair, operation, or ma
expansions;
(3) upgrading, updating, ex
existing development in Of(
regulatory standards;
(4) upgrading, updating, t
provide better service to exis
(5) administrative and oper
Underground Water District
law to charge fees which fu
impact fees to pay its admini
(6) principal payments and
ness, except as allowed by Sl
(d)(l) The political subdivis
improvements plan and to cal
contain specific enumeration
(A) a description of the exi
costs to upgrade, update, imp]
needs and usage and stricter
which shall be prepared by ~
professional engineering serv
(B) an analysis of the total
usage of capacity of the exii
qualified professional enginee:
in the State of Texas;
(C) a description of all or t
sions and their costs necessit<
area based on the approved la
professional engineer licensed
State of Texas;
(D) a defmitive table estab]
generation, or discharge of a
facility expansions and an eq
service unit to various type~
commercial, and industrial;
(E) the total number of proj
development within the serne
calculated in accordance with
(F) the projected demand fa
new service units projected 0
(2) The impact fee per servil
the costs of the capital improw
total number of projected serv
the number of new service un
the total number of new servicl
development of the service a
calculated by dividing the costs
and attnbutable to projected
subsection by the projected ne
required by Paragraph (C) of
within the service area for t
expansion for the designated s
(e)(l) This subdivision appliei
effective date of this Act. FOl
231, Acts of the 40th Legislat
Civil Statutes), I or the subdivisi
the effective date of this Act,
CITIES, TOWNS AND VILLAGES Alt. 1269j-4.11
Title 28
(2) repair, operation, or maintenance of existing or new capital improvements or facility
expansions;
(3) upgrading, updating, expanding, or replacing existing capital improvements to serve
existing development in order to meet stricter safety, efficiency, environmental, or
regulatory standards;
(4) upgrading, updating, expanding, or replacing existing capital improvements to
.provide better service to existing development;
(5) administrative and operating costs of the political subdivision, except the Edwards
Underground Water District or a river authority, which is authorized elsewhere by state
law to charge fees which function as impact fees as defined in this Act, may expend
impact fees to pay its administrative and operating costs;
(6) principal payments and interest or other finance charges on bends or other indebted-
ness, except as allowed by Subsection Co) of this section.
(d)(1) The political subdivision shall use qualified professionals to prepare the capital
improvements plan and to calculate the impact fee. The capital improvements plan shall
contain specific enumeration of the following items:
(A) a description of the existing capital improvements within the service area and the
costs to upgrade, update, improve, expand, or replace such improvements to meet existing
needs and usage and stricter safety, efficiency, environmental, or regulatory standards,
which shall be prepared by a qualified professional engineer licensed to perform such
professional engineering services in the State of Texas;
(B) an analysis of the total capacity, the level of current usage, and commitments for
usage of capacity of the existing capital improvements, which shall be pm.pared b.y
qualified professional engineer licensed to perform such professional engineering serwces
in the State of Texas;
(C) a description of all or the portions of the capital improvements or facility expan-
sions and their costs necessitated by and attributable to new development in the service
area based on the approved land use assumptions, which shall be prepared by a qualified
professional engineer licensed to perform such professional engineering services in the
State of Texas;
(D) a definitive table establishing the specific level or quantity of use, eousumption,
generation, or discharge of a service unit for each category of capital improvements or
facility expansions and an equivalency or conversion table establishing the ratio of
service unit to various types of land uses, including but not limited to residential,
commercial, and industrial;
(E) the total number o~ projected service units necessitated by and attrfoutable to new
development within the service area lmsed on the approved land use assumptions and
calculated in accordance with generally accepted engineering or planning criteria;
(F) the projected demand for capital improvements or facility expansions required by
new service units projected over a reasonable period of time, not to exceed 10 years.
(2) The impact fee per service unit slmll not exceed the amount determined by dividing
the costs of the capital improvements described in Paragraph (C) of this subsection by the
total number of projected service units descrfeed in Paragraph (E) of ~ subsection- If
the number of new service units projected over a reasonable period of time is I~s than
the total number of new service units shown by the approved land use assumptions st full
development of the service area, the maximum impact fee per service unit ~ be
calculated by dividing the costs of the portion of the capital improvements necessitated by
and attrfoutable to projected new service units desc~"eed in Paragraph (F) of this
subsection by the projected new service units desc~ed in that paragraph. The analysis
required by Paragraph (C)of this subsection may be prepared on a system-wide hasls
within the service area for each major category of capital improvement or facflity
expansion for the designated service area.
(eX1) This subdivision applies only to impact fees adopted and land platted prior to the
effective date of this A~- For land which has been platted in accordance with
231, Acts of the 40th Legislature, Regular Session, 1927 (Article 974a, Vernon's Tex~
Civil Statutes),~ or the subdivision or platting procedures of a political subdivision prior to
the effective date of this A~ or land on which new development occurs-or is propmed
59
Art. 1269j-4.11 crr~Es, TOWNS AND
Title 28
without platting, the political subdivision may assess the impact fees at any time during
the development approval and building process and, except as provided in Subsection
of this section, may collect the fees at either the time of recordation of the subdivision
plat or connection to the political subdivision's water or sewer system or at the time the
political subdivision issues either the building permit or the certificate of occupancy.
(2) This subdivision applies to impact fees adopted prior to the effective date of this Act
and land platted subsequent to the effective date of this Act. For new development
which is platted in accordance with Chapter 231, Acts of the 40th Legislature, Regular
Session, 1927 (Article 974a, Vernon's Texas Civil Statutes), or the subdivision or platting
procedures of a political subdivision after the effective date of this Act, the political
subd. i¥is?.n m_ay. ass.e, ss the impact fees before or at the time of recordation and, except as
provmea m ~ul)section (h) of this section, may collect the fees at either the time of
recordation of the subdivision plat or connection to the political subdivision's water or
sewer system or at the time the political subdivision issues either the building permit or
the certificate of occupancy.
(3) This subdivision applies only to impact fees adopted subsequent to the effective date
of this Act. For new development which is platted in accordance with Chapter 231, Acts
of the 40th Legislature, Regular Session, 1927 (Article 974a, Vernon's Texas Civil
Statutes), or the subdivision or platting procedures of a political subdivision prior to the
adoption of an impact fee, no impact fee shall be collected on any service unit for which a
valid building permit is issued within one year subsequent to the date of adoption of the
impact fee.
(4) This subdivision applies to land which is platted in accordance with Chapter 231,
Acts of the 40th Legislature, Regular Session, 1927 (Article 974a, Vernon's Texas Civil
Statutes), or the subdivision or platting procedures of a political subdivision subsequent to
adoption of an impact fee which is adopted after the effective date of this Act. The
political subdiv:mion shall assess the impact fees before or at the time of recordation of a
subdivision plat or other plat pursuant to Chapter 231, Acts of the 40th Legislature,
Regular Session, 1927 (Article 9q4a, Vernon's Texas Civil Statutes), or the subdivision or
platting ordinaoes or procedures of any political subdivision in the official records of the
county clerk of the county in which the tract is located and, except as provided in
Subsection (h) of this section, may collect the fees at either the time of recordation of the
subdivision plat or connection to the political subdivision's water or sewer system or at
the time the political subdivision issues either the building permit or the certificate of
(5) For land on which new development occurs or is proposed to occur without platting,
the political subdivisio~ may assess the impact fee at any time during the development
and building process and may collect the fees at either the time of recordation of the
subdivision plat or connection to the political subdivision's water or sewer system or at
the time the political subdivision issues either the building permit or the certificate of
(6) Assessment means a determination of the amount of the impact fee in effect on the
date or occurrence provided in this subdivision and is the maximum amount which can be
charged per service unit of such development~ No specific act by the political subdivision
(f) After assessment of the impact fees attributable to the new development or
execution of an agreement for payment of impact fees, no additional impact fees or
increases thereof shall be assessed against such tract for any reason, unless the number
of service units to be developed on such tract increases. In the event of the increase in
the number of service units, the impact fees to be imposed shall be limited to the amount
attn'outable to the additional service unite.
(g) A political subdivision is authorized to enter into an agreement with the owner of a
tract of land for which the plat has been recorded providing for the time and method of
payment of the impact fees.
(h) Except for roadway facilities, impact fees may be assessed, but shall not be
collected, in areas where services are not currently available unless:
CITIES, TOWN8 AND ¥
Title Z8
(1) collection is made to
been identi~md in the capit
within two years, comme
contracts or commitments,
provide service, and have
considering the type of cap
no event longer than five ~
(2) the political subdivisi~
or finance the capital imp
incurred or funds advance~
the new development or ag
paid from other new deveh
expansions, which fees sba
other new development rec,
(3) an owner voluntarily
future development, and tt
agreement.
(i) Any new development
permanent use and benefit
entiUed to receive immedlat
serve the new service units
(37 Political subdivisions a
to pay for all or a portion of
amount of impact fees.
(k) Political subdivisions e
fees imposed pursuant to th
(l) Any construction of, ~
agreed to or required by a
shall be credited against roa
ment.
1 Repe~ see, now, V.T.C,L Lo
Sec. 3. (a) Except as oth
Section 2 of this Act shall be
provisions set forth in this s
Co) A political subdivision
ordinance, or resolution esta
tions within the designated s
ments plan.
(c) Not later than the day ~
subdivision shall appoint an,
(d) On or before the date ~
shall nmke available to the
projections, and a daseriptior
which may be proposed.
(e) The political subdivisioz
(1) At least 30 days before
the hearing by certified mail
requesting notice of such hes
resolution or order setting th
(2) The political subdivisioz
consecutive weeks, the first n
the date set for the hearing,
authorized elsewhere by state
t
,t
r
g
d
f
r
,r
e
r
f
r
r
r
n
t
CITIES, TOWNS AND VILLAGES Art. 1269j-4.1i
Title ~8
(1) collection is made to pay for a capital improvement or facility expansion which has
been identified in the capital improvements plan and the political subdivision commits to,
within two years, commence construction, pursuant to duly awarded and executed
contracts or commitments of staff time covering substantially all of the work required to
provide service, and have the service available within a reasonable period of time
considering the type of capital improvement or facility expansion to be constructed, but in
no event longer than five years;
(2) the political subdivision agrees that the owner of a new development may construct
or finance the capital improvements or facility expansions and agrees that the costs
~curred or funds advanced will be credited against the impact fees otherwise due from
the new development or agrees to reimburse the owner for such costs from impact fees
paid from other new developments which will use such capital improvements or facility
expansions, which fees shall be collected and reimbursed to the owner at the time the
other new development records its plat; or
(3) an owner voluntarily requests the political subdivision to reserve capacity to serve
future development, and the political subdivision and owner enter into a valid written
agreement.
(i) Any new development for which an impact fee has been paid shall be entitled to the
permanent use and benefit of the services for which the fee was exacted and shall be
entitled to receive immediate service from any existing facilities with actual capacity to
serve the new service units, subject to compliance with other valid regulations.
(j) Political subdivisions are authorized to expend funds from any other lawful source
to pay for all or a portion of the capital improvements or facility expansions to reduce the
amount of impact fees.
(k) Political subdivisions and other governmental entities are authorized to pay impact
fees imposed pursuant to this Act
(l) Any construction of, contributions to, or dedications of off-site roadway f~/lit~
agreed to or required by a polit/cal subdivision as a condit/on of development approv~
shall be credited against roadway fac/lit/es impact fees otherwise due from such develop-
ment.
1 Repe~led; see, now, V.T.C.A. ~ Government Code, § 212.001 et seq.
Proe~l~r~ for Adolgion of Imlmet
Sec. 3. (a) Except as otherwise provided in this Act, an impact fee as authorized by
Section 2 of this Act shall be levied by a political subdivision only upon complying with the
provisions set forth ~ this sect/on.
Co) A polit/cal subdivision intending to impose an impact fee shall adopt an order,
ordinance, or rosolution establhhing a public hearing date to consider land use nssump-
tions within the designated service area that will be used to develop the capital improve-
ments plan.
(c) Not later than the day of adoption of such order, the governing body of the political
subdivision shall appoint an advisory committee in accordanco with Sect/on 7 of this Aet~
(d) On or before the date of the fwst publication of the notice, the political subdivision
shall make available to the public its ]and use assumptions, the time period of the
projections, and a description of the general nature of the capita] improvement facilities
which may be proposed.
(e) The political subdivision shall provide public notice of the hearing.
(1) At least 30 days before the hearing, the political subdivision shah send a not/ce of
the hearing by certified mail to any person who has given written notico by certified or
registered mail to the city secretary or other designated official of the political subdivision
requesting notice of such hearing within two years preceding the date of adoption of the
resolution or order setting the public hearing.
(2) The political subdivision shall publish notiee of the hearing once a Week for three
consecutive weeks, the fwst notice to appear at least 30, but not more than 60 days before
the date set for the hearing, in one or more' newspapers with general circulation in each
county in which the political subdivision lies. However, a river authority which is
author/zed elsewhere by state law to charge fees which function as impact fees as defined
61
ArL 1269j-4.11 crrIEs, TOWNS AND V~.~.aGES
in this Act may publish the required newspaper notice only in each county in which the
service area lies. The notice of public hearing shall not be in the part of the paper in
which legal notices and classified ads appear and shall not be smaller than one-quarter
page of a standard.size or tabloid-size newspaper, and the headline on the notice must be
in 18-peint or larger type.
(3) The notice shall contain the following:
(A) a headline to road as follows:
"NOTICE OF PUBLIC HEARING ON LAND USE ASSUMPTIONS RELATING TO
POSSIBLE ADOPTION OF IMPACT FEES"
(B) the time, date, and location of the hearing;
(C) a statement that the purpose of the hearing is to consider the land use assumptions
that will be used to develop a capital improvements plan pursuant to which an impact fee
may be imposed;
(D) an easily understandable map of the service area to which the land use assumptions
apply; and
rE) a statement that any member of the public has the right to appear at the hearing
and prosent evidence for or against the land use assumptions.
(O After the public hekring, the political subdivision shall determine whether to adopt
or rojeet an ordinance, order, or resolution approving the land use assumptions.
(g) The political subdivision shall have 30 days from the date of the public hearing
within which to approve or d~sapprove such land use assumptions.
(h) An ordinance, order, or resolution approving land use assumptions shall not be
adopted as an emergency measure.
(i) If the governing body adopts an ordinance, order, or resolution approving the land
use assumptions, the political subdivision shall provide for a capital improvements plan to
be developed by qualified professionals using generally accepted engineering and plan-
ning practicos in accordance with Subsection (d) of Section 2 of this Act.
(J) Upon completion of the Capital improvements plan, the governing body shall adopt
an order or resolution setting a public hearing to discuss the adoption of the plan and
imposition of the impact fee.
(k) A public hearing must be held by the governing body of the political Subdivision to
discuss the proposed ordinance, order, or rosolution adopting a capital improvements plan
and imposing an impact fee. On or before the date of the first publication of the notice,
the capital improvements plan shall be available to the public.
(l) The political subdivision shall provide public notice of the hearing.
(1) At least 30 days before the hearing, the political subdivision shall send a notice of
the hearing by certified mail to any person who has given written notice by certified or
rogistered mail to the city secm. tary or other designated official of the political subdivision
requesting notice of such hearing within two years preceding the date of adoption of the
resolution or order settinl~ the public hearing.
(2) The political subdivision shall publish notice of the hearing once a week for three
consecutive weeks, the first notice to appear at least 30, but net moro than 60 days beforo
the date set for the hearing, in one or more newspapers with general circulation in each
county in which the political subdivision lies. However, a river authority which is
authorized elsewhero by state law to charge fees which function as impact fees as defined
in this Act may publish the required newspaper notice only in each county in which the
service area lies. The notice of public hearing shall not be in the part of the paper in
which legal notices and classified ads appear and shall not be smaller than one-quarter
.page of a Standard-sise or tabloid-sise newspaper, and the headline on the notice must be
m 18-point or larger type.
(3) The notice shall contain the foliowinw
(A) a headline to read as follows:
62
"NOTICE OF PUBL
(B) the time, date, and loc
(C) a statement that the pt
fee;
(D) an easily understanda[
levied;
(E) the amount of the pro~
(F) a statement that any
and prosent evidence for or
(m) The advisory eommitt
improvements plan and imp~
healing.
(n) The political subdivisk
improvements plan and im~
hearing.
(o) An ordinance, order,
imposition of an impact fee
Sec. 4. (a) The order, ordi
all funds collected through t
bearing accounts clearly i&
expansions within the servic
impact fees shall be conside~
subject to all restrictions pla
Expenditures of impact fee
impact fee was imposed as st
this Act. Tbe rocords of the
for public inspection and cop
Co) The governing body s
capita] improvements plan in
Sec. 5. (a) Upon the requ,
been paid, the political subdi
available and service is deni
when service was not avall~
service is not available withh
improvement or facih'ty exp~
from the date of payment pm
Section 2 of this A~
(b) Upon completion of the
capital improvements plan, t~
the actual costs of the cai)ii
calculated based on actual cc
siml] rofund the difference if
percent.
(e) The political subdivisios
expended u anthori~ed b~ tt
(d) Any rofund shall ~ i
rofund at the statutory rste s
5069-1.03, Vemon's Texas Ci
(e) Ali rofunds shall be ma~
is paid; provided, howoer, if
entity.
,le
the
~rter
TO
tion8
tions
~ug
~]opt
~ng
~t be
land
plan-
~dopt
~ ~d
on ~
plan
o~,
ed or
~ision
,f the
efore
each
chis
freed
h the
~r in
_after
stbe
crr~Es, TOWSS ASD ¥~LLAGES Art. 1269j-4.11
Title z8
"NOTICE OF PUBLIC HEARING ON ADOPTION OF IMPACT FEES"
(B) the time, date, and location of the hearing;
(C) a statement that the purpose of the hearing is to consider the adoption of an impact
fee;
(D) an easily understandable map of the service area on which the proposed fee will be
levied;
(E) the amount of the proposed impact fee per service unit; and
(F) a statement that any member of the public has the right to appear at the hearing
and present evidence for or against the plan and proposed fee.
(m) The advisory committee shall file its written comments on the proposed capital
improvements plan and impact fees not less than five business days prior to the public
hearing.
(n) The political subdivision shall approve or disapprove the adoption of the capital
improvements plan and imposition of an impact fee within 30 days after the public
hearing.
(o) An ordinance, order, or resolution approving the capital improvements plan and
imposition of an impact fee shall not be adopted as an emergency measure.
Use of Proeeeds
Sec. 4. (a) The order, ordinance, or resolution levying an impact fee shall provide that
all funds collected through the adoption of an impact fee shall be deposited in interest-
bearing accounts clearly identifying the category of capital improvements or facility
expansions within the service area for which the fee was adopted. Interest earned on
impact fees shall be considered funds of the account on which it is earned and shall be
subject to all restrictions placed on use of impact fees under the provisions of this Act.
Expenditures of impact fee funds shall be made only for the purposes for which the
impact fee was imposed as shown by the capital improvements plan and as authorized by
this Ack The records of the accounts into which impact fees are deposited shall be open
for public inspection and copying during ordinary business hours.
(b) The governing body shall be responsible for supervising implementation of the
capital improvements plan in a timely manner.
Sec. 5. (a) Upon the request of an owner of the property on which an impact fee has
been paid, the political subdivision shall refund the impact fees if exis~ng facilities are
available and service is denied or the political subdivision has, after collecting the fee
when service was not available, failed to commence construction within two years or
service is not available within a reasonable period of time considering the type of capital
improvement or facility expansion to be constructed, but in no event later than five years
from the date of payment pursuant to the provisions of Subdivision (1) of Subsection (h) of
Section 2 of this Act.
Co) Upon completion of the capital improvements or facility expansions identified in the
capital improvements plan, the political subdivision shall recalculate the impact fee using
the actual costs of the capital improvements or facility expansion. If the imlmet fee
calculated based on actual cost is less than the imp~t fee paid, the political subdivision
shall refund the difference if the difference exceeds the impact fee paid by more titan 10
percent.
(c) The political subdivision shall refund any impact fee or portion thereof which is not
expended as authorized by this Act within 10 years from date of payment.
(d) Any refund shall bear interest calculated from the date of collection to the date of
refund at the statutory rate as set forth in Article 1.03, Title 79, Revised Statutes (Article
5069-1.03, Vernon's Texas Civil Statutes), or its successor statute.
(e) All refunds shall be made to the record owner of the property at the time the refund
is paid; provided, however, ff the impact fees were paid by another political subdivision or
governmental entity, payment shall be made to such political subdivision or governmental
entity.
Art. 1269j-4.11. crr~r.s, TOWNS ~ WLL~a~S
(f) The owner of the property on which an impact fee has been paid or another political
subdivision or governmental entity which paid the impact fee shall have standing to sue
for a refund under the provisions of this section.
Plan Ui~l&t~
Sec. 6. (a) A political subdivision imposing an impact fee shall update the land use
assumptions and capital improvements plan at least every three years, which three-year
period shall commence from the date of the adoption of the capital improvements plan.
(b) The political subdivision shall review and evaluate its current land use assumptions
and shall cause an update of the capital improvements plan to be prepared in accordance
with Section 2 of this Act.
(c) The governing body of the political subdivision shall, within 60 days of receiving the
update of the land use assumptions and the capital improvements plan, adopt an order
setting a public hearing to discuss and to review the update and shall determine whether
to amend the plan.
(d) A public hearing must be held by the governing body of the political subdivision to
discuss the proposed ordinance, order, or resolution amending land use assumptions, the
capital improvements plan, or the impact fee. On or before the date of the first
publication of the notice, the land use assumptions and the capital improvements plan,
including the amount of any proposed amended impact fee per service unit, shall be
available to the public.
(e) The political subdivision shall provide public notice of the hearing.
(1) At least 30 days before the hearing, the political subdivision shall send a notice of
the hearing by certified mail to any person who has given written notice by certified or
registered mail to the city secretary or other designated official of the political subdivision
requesting notice of such hearing within two years preceding the date of adoption of the
resolution or order setting the public hearing.
(2) The political subdivision shall publish notice of the hearing once a week for three
consecutive weeks, the first notice to appear at least 30, but not more than 60 days before
the date set for the hearing, in one or more newspapers with general circulation in each
county in which the political subdivision lies. However, a river authority which is
authorized elsewhere by state law to charge fees which function as impact fees as defined
in this Act may publish the required newspaper notice only in each county in which the
service area lies. The notice of public hearing shall not be in the part of the paper in
which legal notices and classified ads appear and shall not be smaller than one-quarter
page of a standard-size,or tabloid-size newspaper, and the headline on the notice must be
in 18-point or larger type.
(3) The notice shall contain the following:
(A) a headline to read as follows:
"NOTICE OF PUBLIC HEARING ON AMENDMENT OF IMPACT FEES"
(B) the time, date, and location of the hearing;,
(C) a statement that the purpose of the hearing is to consider the amendment of land
use assumptions and a capital improvements plan and the imposition of an impact fee;
(D) an easily understandable description and map of the service area on which the
update is being prepared; and
(E) a statement that any member of the public has the right to appear at the hearing
and present evidence for or against the update.
(f) The advisory committee shall file its written comments on the proposed amendments
to the land use assumptions, capital improvements plan, and impact fee not less than five
business days prior to the public hearing.
(g) The political subdivision shall apProve or disaPprove the amendment of the land use
assumptions and the capital improvements plan and modification of an impact fee within
30 days after the public hearing.
cmos, TOWNs
(h) An ordinanee, order, or
adopted as an emergency me~
Sec. 7. (a) A capital improv,
members, shall be appointed
subdivision. Not less than 40 1
be representatives of the real
employees or officials of a po]
subdivision has a planning a~
advisory committee, provided t
the real estate, development, o
political subdivision or gove. rn.n
pl,,nl,g and zonin~ comm~
if at least one such repmeent~
voting member of the plau~
committee. If tbe impact fee i
polit/eal subdivision, said met
Fo) The advisory committee
perform the following functlm
(1) to advise and assist
(~) to review the capital im~
(~) to monito~ and evaluate
(4) to file semiannual report
plan or imposing the impact
(~) to advise the politkal s
assumptions, capital improvem
(e) The political subdivision
sional reports with respect to d
(d) The governing body of t~
committee to follow in carryin
Sec. 8. (a) If the governini
imposed under this Act withi
impact fee or an owner of lar
right to present s written r~
stating the nature of the unpe~
days of the ~luest~ If the go
commem~ within 60 days of t
Co) A record must be made,
shall be maintained and be ma,
for st ~ 10 years after th~
(c) Any state or local restr
· politic~! subdivision where s
(d) An impact fee which is i
years of said effec~e date~
provided, however, any politl,
replaced pursuant to this Act
liable to any party who, after
maximum permitted under Sul
for an amount equal to two
,LAGES
Title Z8
political
? to sue
· nd use
cee-year
its plan.
mptions
ordance
~ing the
~n older
whether
~ision to
ohs, the
he fL~st
,ts plan,
~hall be
ot~ce of
:ified or
~division
a of the
)r three
~ before
in each
chich is
defined
hich the
)aper in
quarter
nust be
of land
act fee;
~ich the
hearing
~dments
lan five
and use
~ within
crrms, TOWNS AND WLLAG~S Art. 1269j-4.11
(h) An ordinance, order, or resolution approving the amendment to the land uee
assumptions, the capital improvements plan, and imposition of an impact fee shall not be
adopted as an emergency measure.
Advisory Committee
~e~. ?. (a) A capital improvements advisory commiU2e, composed of not less than five
members, shall be appointed by a majority vote of the governing body of the political
subdivision. Not less than 40 percent of the membership of the advbory committee shall
be representatives of the real estate, development, or building industries who are not
employees or officials of a political subdivision or governmental entity. If the political
subdiv~ion has a planning and zoning commission, the commission may act aa the
advisory committee, provided that the commiesion includes at least one representative of
the real estate, development, or building industry who is not an employee or official of a
political subdivision or governmental entity. If no such representative is a member of the
planning and zoning commission, the commbsion may still act aa the advisory committee
ff at least one such representative is appointed by the political subdivision aa an ad bec
voting member of the planning and zoning commission when it acts as the advisory
committee. If the impact fee is to be applied within the extraterr~rial juriadie~' n of the
political subdivision, said membership shall include a representative from such area.
(b) The advisory committee shall serve in an advisory capacity and is established to
perform the following functions:
(1) to advi~e and assist the political subdivision in adopting land use ussumptious;
(2) to review the capital improvements plan and file written comments;
($) to monitor and evaluate implementation of the capital improvements plan;
(4) to file semiannual reports with respect to the progress of the capital improvements
plan and to report to the political subdivision any pereeived inequities in implementing the
pla~ or imposing the impact fee; and
(5) to advise the politkal subdivision of the need to update or revise the land use
assumptions, capital improvements plan, and impact fee.
(c) The political subdivision shall make available to the advkory comn~ttee any profe~
sional reports with respect to developing and implementing the capital improvements plan.
(d) The governing body of the political subdivision shall adopt procedural rules for the
committee to follow in carrying out its duties.
General Frovbiom
~ec. $. (a) I~ the governing body of the pelit/cal subdivision does not perform a duty
imposed under this A~ within the present, ecl Lime period, a person who has paid an
impact fee or an owner of land upon which an impact fee has been paid shall have the
right to present a written request to the governing body of the political subdivb~o' n
stating the ua~re of the unperformed duty and requesting that it be performed within GO
days of the requesL If the governing body of the political subdivision finds that the duty
is required under, this ACt and is late in being performed, it shall cause the duty to
commence w~thin 60 days of the request and continue until completion.
(b) A record must be made of any public hearing provided for in t~ Ac~ Such record
shall be maintained and be made available for public iGspection by the political subdivision
for at least 10 years after the hearing.
(c) Any state or local re~tr~tious that apply to the impcait/on of an impact fee in a
political subdiv~ion where an impact fee is proposed will be cumulative with the
restrictions in this Act~
(d) An impact fee which is in place on the effective date of this Act must, ~ three
years of said effective date, be replaced by an impact fee made parsuant to this ACt;
provided, however, any political subdivision having an impact fee which has not been
replaced pursuant to this Act within one year of the effective date of this Act shall be
liable to any party who, after the one-year period, pays an impact fee which exeseds the
maximum permitted under Subsection (d) of Section 2 of this Act by more than 10 pereent
for an amount equal to two times the difference between the maximum impact fee
65
Art. 1269j-4.11 CITruS, TOWNS AND ~.~.~o~:~
allowed stat the actual impaet fee imposed, plus reasonable attorney's fees and court
(e) Tlds ACt slufll not be construed to prohibit, affect, or regulate any tax, fee, charge,
or assessment which is speeifioslly authorized by state law.
(f) No moratorium shall be placed on new development for the purpose of awsiting the
completion of all or any part of the process necessary to develop, adopt, or update the
impact fe~.
See. 9. A person who has exhausted all administrative remedies within the political
subdivision and who is aggrieved by a f'mal decision is entitled to trial de novo under this
Act. A suit to contest an impact fee must be ~ed within 90 days from the date of
adoption of the ordinance, order, or resolution establishing the impact fee. Except for
roadway facilities, a person who has paid an impact fee or an owner of property on which
an impact fee has been paid shall be entitled to specific performance of the services by the
political subdivision for which the fee was paid. Nothing in this section shall require
construction of a specific facih'ty to provide such services. Any suit must be filed in the
county in which the major portion of the land area of the political subdivision is located.
A successful litigant shall be entitled to recover reasonable attorney's fees and court
costs. An impact fee shall not be held invalid because the public notice requirements
were not complied with if compliance was substantial and in good faith.
8form Writer, Drain~, and Flood Control
See. 10. (st) Any eount~ with a population of at least 2.2 million, according to the most
recent federal census, oP which borders a county with a population of at least 2.2 million,
and any district or stuthority ereatad under Article X%rI, Section 59, of the Texas
Constitution within any such ~ounty that is authOrized to provide storm water, drainage,
and flood control facifities, is authorized to impose impact fees to provide storm water,
drainage, and flood control improvements necessary to accommodate new development.
(b) The imposition of impact fees authorized by Subsection (a) of this section is exempt
from the requirements of S~etlon 5, Section 6, and Subsection (d) of Seetion 8 of this Act,
unless the political subdivision proposes to increase the impact fee.
(c) Any political subdivision described in Sub~ction (a) of t~s section is authorized to
pledge or otherwise contractually obligate all or part of the impact fees to the payment of
principal and interest on bonds, notes, or other obligations issued or incurred by or on
behalf of such pelitical subdivision and to the payment of any other eonb, actual obli-
(d) An impact fee adopted by a politios] subdivision pursuant to Subsection (a) of this
section sba/] not bm reduced if (1) the political subdivision has pledged or otherwise
contraetuafly obligated aL1. or part of the impact fees to the payment of principal and
inter~t on bonds, notes, or other obligations issued by or on behalf of such political
subdivision and (2) the political subdivision agrees in such pledge or contract not to reduce
such impact fees during the term of such bonds, notes, or other contractual obligations.
l~zempt TrmmacUom
See. 11. (st) This Act does not apply to impact fees, charges, fees, usessments, or
contzibutiom paid by or charged to a district ereatod under Article XVI, Section 59, of the
Texas Comtitution to another district created under Article XVI, Section 59, of the Texas
Constitution If both districts are required by law to obtain stpproval of their bonds by the
Texas Water Commission.
(b) This &ct dram not apply to impact fees, charges, fees, assessments, or contributions
charged which are stpproved by the Texas Water Commission. Any district e~eated
pursuant to Article XVI, Section 59, or Article II1, Section 52, of the Texas Constitution,
may petition the Texas Water Commission for approval of any such proposed fees. The
commission slmll adopt rules for reviewing any such petition and may charge the
petitioner fees which are adequate to cover the cost of processing and corm§tiering the
petition. The ru]ee slml] req .tdre notice substantially the same as that required herein for
CITIES, TOWN8 AND VILL~
Titk ~
the adopt/on of impact fees s
Acts 198~/, 70th Leg., ch~ 957, ~ 1
Title of Act: .
An Act relating to ~n~ncing 0
provements by politieal subdiv~siom
Section I of Acts 1987, 70th L
repealing this Lrticle, enacts the ~
merit
For disposition of the subject n
repealed L~'ticle, see Dispe~it~on Ta
V.T.C.A~ Local Government C~de.
The repealed L,'ticie, relating t
prevement districts, was derived fr~
p. 3794, ch. 58~, § 1.
Without reference to the repeal ~
by Acts 1987, ?0th Leg., eh. 149, § ~.
l(b), ~ 4, 5(a), ?lb), 8(I), 10(a), n~
l?(g) of this article were amended 1
?0th Leg., eh. 815, §§ I to 10, eft..a
For text of the enumerated section:
cie as so amended, see the italicized
lng V.?.C.A. Local Government Cod
to 372.006, 372.009, 3/2.010, 372.
372.018, and 3/2.023.
Sections 11 and 12 of Acts 198/. ·
816, provide:
"Sec. 11. All petitions here. tof~
accepted by the city secretary or
who performs the functions of ¢
Art. 1269j-4.15. Park purpo~
1~00,000 or mor~
Section 1. This Act shall b~
cities, having a population of ]
A~l~isitlom constru~o
Sec. 2. Any such city is stut.~
all, properlar (real, personal, or ~
equip any property for pm4t pu
lng, ~quiring, leasing, or
improving, enlarging, equippin
courses, clubhouses, s~! pro sh
recreation eenters, rugby field
transpom~tion systems and e~
serviee facilities, and any ot~
"Facility" or '"F~lTdiee"), toge
improve, enlm'ge, equip, repeir,
or parl~_~ f~ee to !~
of motor whicl~ or other conw
may be on such terms ~ cone
shall have anthority to ent~ in
ES
ge,
Lhe
the
cai
his
of
for
ich
~he.
dre
~he
ed.
~e,
nt.
~o
of
o~!
~li-
his
ise
md
cai
or
)118
on,
~he
the
the
for
crrms, TOWNS AND WLLAGES Art. 1269j-4.15
Title ~8
the adoption of impact fees and shall afford opportunity for all affected parties to
Acts 1987, 70th Leg., ch. 957, §§ 1 to 11, elf. June 20, 1987.
~itle of Act:
An Act relating to financing of. capital im-
provements by political subdivisions. Acts 1987,
70th Leg., ch. 957.
Art. 1269j-4.12.
Section 1 of Acts 1987, 70th Leg., ch. 149,
repealing this article, enacts the Local Govern-
ment Code.
For disposition of the subject matter of the
repealed article, see Disposition Table preceding
V.T.C.A. Local Government Code.
The repealed article, relating to public im-
provement districts, was derived from Acts 1977,
65th Leg., p. 1205, ch. 467; Ac-ts 1983, 68th Leg.,
p. 3794, ch. 587, § I.
Without reference to the repeal of this article
by Acts 198/, 70th Leg., ch. 149, § 49(1), sections
1fo), 2, 4, 5(a), 7fo), 8(a), 10(a), 11(5), 12fo), and
17(g) of this article were amended by Acts 1987,
70th Leg., ch. 816, §§ 1 to 10, eft. Aug. 31, 1987.
For text of the enumerated sections of this arti-
cie as so amended, see the italicized notes follow-
lng V.T.C.A. Local Government Code, §§ 372.003
to 372.005, 372.009, 372.010, 372.014, 372.016,
372.018, and 372.023.
Sections 11 and 12 of Acts 1987. 70th Leg., ch.
816, provide:
"Sec. 11. All petitions heretofore filed and
accepted by the city secretary or other officer
who' performs the functions of city secretary
Repealed by Acts 1987, 70th Leg., ch. 149, § 49(1), eft. Sept. 1, 1987
regarding the establishment of a public improve-
ment district are deemed to meet the require-
ments of Section ~o. Public Improvement District
A.~sessment Act- (Article 1269j-4.12, Vernon's
Texas Civil Statutes), and are hereby in all re-
spects validated, ratified, confirmed, and held to
be enforceable, and any resolution heretofore
adopted by a city pursuant to said petitions are
hereby in all respects validated, ratified, con-
firmed, and held to be enforceable.
"Sec. 12. (a) The actions of cities establishing
improvement districts and undertaking improve-
merit projects or services before the effective
date of this Act are governed by the law in
effect at the time the actions were t,d~en. The
former law is continued in effect for this put-
"fo) By enacting these amendments to the
Public Improvement District Assessment ACt
(Article 1269j-4.12, Vernon's Texas Civil Stat-
utes), the legislature does not imply that cit~m
could not under the former law undertake ira-
provement projects or services within their ex-
traterritorial jurisdiction."
Art. 1269j-4.15. Park puFpnses; acquisition and improvement of property by cities of
1~00,000 or more
Appficabifity of Act
Section 1. This Act shall be applicable to all incorporated cities, including home-rule
cities, having a population of 1,200,000 or moro according to the last preceding federal
Acquisition, construction and improvement of property; operating eontructs
Sec. 2. Any such city is authorized to acquire by purchase, lease, or otherwise, any or
all, property (real, personal, or mixed) and to construct or otherwise acquire, improve, and
equip any property for park purposes, including, but not by way of limitat~ establish-
ing, acquiring, leasing, or contracting as lessee or lessor, purchasing, constructing,
improving, enlarging, equipping, ropairing, operating, or maintaining. (any or all) golf
courses, clubhouses, and pro shops, tennis courts, and facilities, swimmm~ pools, marinas,
recreation centers, rugby fields, baseball fields, zoos, clarification lakes or pools, park
transportation systems and equipment~ theaters, bicycle trails, multipurpose shelters,
service facilities, and any other recreational facilities, all or any (heroinaftor called
"Facility" or "Facilities"), tegether with all necessary water, sewer, and drainage facili-
t~s, and to establish, acquire, lease, or contract as lessee or lessor, purchase, construct,
improve, enlarge, equip, repair, operate, or maintain (any or all) structures, parking areas,
or parking facilities to be used in connection with such Facilities for parking and storage
of motor vehicles or other conveyances; and provided that any of such leases or contracts
may he on such terms and conditions as said city shall deem appropriate. Also, such city
shall have authority to enter into a contract or agreement under which the Facilities may
67