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Item 4O City of Southlake, Texas MEMORANDUM Date: November 28, 2016 To: Mayor and City Council From: Kenneth M Baker, Sr. Director of Planning and Development Services Subject: Item 40—Approve a Permit Fee for Existing Commercial Building For Lease or Sale Signs Action Requested: Approve a sign permit fee (expires March 15, 2017) for Existing Commercial Building For Lease or Sale signs. The fee will be structured such to allow a permit applicant one of the following options: • Pay a permit fee of$100 for each Existing Commercial For Lease or Sale sign; or • Pay a $200 sign contractor registration fee and register all Existing Commercial Building For Lease or Sale signs currently installed. Sign owners will have until January 13, 2017 to pay the fee according to one of the options above. Based on information derived from the sign inventory (sign registration) and prior to March 15, 2017, the City Council will establish a permanent fee structure for Existing Commercial For Lease or Sale signs. Background Information: On October 4, 2016, the City Council adopted Sign Ordinance 704- I. As part of the motion to approve the Sign Ordinance, the City Council established a permit fee of $100 for each Existing Commercial Building for Lease or Sale sign and required that each sign be permitted by the City. The sign permit is valid for one year. Since the adoption of the ordinance staff has received concerns from the Southlake Brokerage Community relating to the $100 annual fee per sign and the economic impact that the fee has on firms that represent multiple properties. Attached is a memo from Steve Shrum (Glacier Commercial Realty) which outlines a proposed fee modification. The memo indicates that the proposal represents a consensus of the majority of the commercial brokers in Southlake (See Attachment A). The proposal for a temporary fee would allow the City staff to gather information on the number of signs and locations and provide this information to City Council. Based on this information the City Council can better assess the potential monetary impact on sign applicants and use this information in the establishment of a permanent fee prior to March 15, 2017. Based on the final fee established by City Council applicants may either receive a refund for fees already paid or be invoiced to make up any differential. Citizen Input/ Board Review: None Legal Review: None Alternatives: 1) Maintain the fee established with the adoption of Sign Ordinance 7041 -$100 per sign 2) Establish an alternative fee schedule. Supporting Documents: Memo dated November 28, 2010 from Steve Shrum, Glacier Commercial Realty '0Attachment A Off, GIACIER CRMRIEICIRI R[RITT,I.l. 433 Las Colinas Blvd Suite 1100 . ...... Irving,Texas 75035 214.637.4300 214,637.4301 Fax November 28, 2016 Ken Baker Director of Planning and Zoning City of Southlake Dear Ken: Thanks for meeting with the Glacier Commercial Realty Team on Thursday,November 17th at your office. Since that meeting,we have met with the majority of the Southlake Commercial Brokers and there are additional questions and concerns regarding the changes to the sign ordinance relating to Commercial Properties For Sale/Lease/Development,but this email focuses only on the Sign Permit Fee. The following Sign Permit Fee listed below is a consensus from our meeting with the Southlake Brokers. SIGN PERMIT FEE- Proposed Fee Modification: • Contractor Registration-A Property Owner or Real Estate Company with multiple properties owned or represented may register with the City of Southlake for a Contractor Registration in connection with the installation of Commercial For Sale or Lease and New Construction/Development Signage. (For example: Commercial Real Estate company represents 20+properties in Southlake,they would submit 1 Contractor Registration which would be applicable for all properties represented by that firm for a 12 month period,which may and most likely include more than 1 property owner and change throughout the term based on leasing and sale activity.) • Annual Contractor Registration Fee would be $300.00 • Contractor Registration would be signed by the Owner or Owner's Representative and include list of anyone authorized to Sign Permit Applications on behalf of Owner and initial list of all properties associated with the Contractor,which is updated as needed throughout the 12 month period. • Registration Fee would cover all new Sign Permit Applications by Contractor throughout the 12- month period and no additional fees required for individual properties during annual registration period. • Each Property Owner or Real Estate Company would as a consideration for the annual Contractor Registration option fill out a spreadsheet with all of the listings For Lease/For Sale/Development Signage properties in the City of Southlake associated with the Contractor, The spreadsheet would include the property address and suite#s to reflect leased,vacant,or in transition. Rising Above the Ordinary • Contractor will submit a Sign Application Form with each new sign and update spreadsheet to reflect changes of new properties or spaces available for sale/lease/development;however,the fee would have been pre-paid in connection with the Contractor Registration. • Individual Property Sign Permit Fee-A Property Owner or Real Estate Company that represents 1- 3 properties may choose to not register as a Contractor since they have limited for For Sale/Lease/Development projects in the City of Southlake. These applicants that choose not to register annually would pay$100.00 per Sign Permit Application for each individual property if not a Registered Contractor. • All existing Commercial Real Estate Signs erected prior to December 6,2016 shall be exempt from initial$100 Sign Fee and sign drawing and general plan to scale requirements of the new Sign Permit Application until the earlier of a)the individual property is 100%leased and sign removed,property sold,or development project has received final building permit approval,or b) December 6, 2017. Assuming the City Council agrees to our recommendation,those wanting to go ahead and register as a Contractor may go ahead and pay the annual$300.00 fee which would cover all new Sign Permit Applications for 2017. This final point is important so that all of our existing signs will not be non- compliant and need to be removed as of December 6,2016.However,signs that are non-compliant under the previous Sign Ordinance would not be subject to this grandfather clause. (eg.-wrong size, wrong color,wrong construction materials). Ken,we are eager to work with you and the City of Southlake. The Brokerage Community works as an extension of the Economic and Development Group to help promote the City of Southlake and to bring new business and new tax dollars to the City. Please let us know if you have any comments or wish to discuss anything in more detail. Sincerely, S____ Steve Shrum Co-Managing Partner Andrew Beckman Co-Managing Partner Paul Blight Vice President Cc: Dennis Killough Rising Above the Ordin