When do Scottsdale commercial projects pay water and sewer development fees?

Development fees for water (Table A-1) and wastewater (Table A-2) are "calculated and collected before issuance of permission to begin development." The section then sorts projects:

• Residential. Paid "before issuance of the first building permit," unless a development agreement under Sec. 49-84 says otherwise.
• Commercial, industrial or multi-family. "Development Fees shall be paid at the time the first building permit is issued; or, alternatively, the Division may require that the Development Fees be paid when a water meter is purchased."
• No building permit, but a water or sewer connection. Paid when the water service connection is purchased. If only a sewer connection is needed, paid before the sewer connection is approved.
• Who owes wastewater fees. Anything that "connects to the public sewer," or that the division director finds "is capable of discharging sewage to a City public sewer."

Then the enforcement line: "No building permit, water or sewer connection, or certificate of occupancy shall be issued if a Development Fee is not paid."

Four more rules matter on a commercial job:

1. 1Expansions and changes of use. A change in building use, more square footage, a change of land use, or an addition that changes the meter type or number of meters is assessed on the additional EDUs. Earlier purchases count as a credit if you bring the receipt.
2. 2No refunds. "There will be no refunds to the development under any circumstances," whether the credit is more or less than the fee paid before.
3. 3Fee freeze. For non-residential and multi-family uses, the fee schedule is frozen for 24 months from site plan approval, or from final plat approval if there is no site plan. The city will issue a written statement of the frozen schedule on request.
4. 4Exceptions. No fee is owed if fees were already paid and the triggering approval has not expired, or if a modification adds no EDUs, does not increase their impact, and does not change the land-use type to one needing a different meter.

• Development fee. A one-time charge for capacity in the city water and wastewater systems. It is not a monthly bill.
• EDU. Equivalent dwelling unit, the unit Tables A-1 and A-2 use to count demand. The section's example equates a 1 inch meter to one EDU and a 1.5 inch meter to five.
• Credit. EDUs already bought for the site, applied against the new total.
• Special fee determination. Under 49-82(d), a project that does not fit a category can be asked for an alternative fee analysis, and the director's decision is appealable under Sec. 49-85.

New commercial, industrial and multi-family projects, new homes, and existing buildings that change use or grow enough to need more EDUs or a different meter. This does not apply to a remodel that adds no EDUs, does not increase their impact, and does not move the site to a land-use type that needs a different meter.

A restaurant replacing a dry retailer. The old store had a 1 inch meter. The restaurant needs 1.5 inch for its kitchen. Using the section's own example, the 1.5 inch meter takes five EDUs and the old 1 inch meter credits one, so the fee is assessed on the difference, and only with the old receipt.

A septic-to-sewer conversion. Scottsdale's Water and Sewer Planning page says conversion from septic to public sewer requires "Sewer Development Fees," and that "Development fees are based on meter size." With no building permit involved, 49-82(a)(2) puts payment before the sewer connection is approved.

The edge case. An owner overpaid years ago under an older schedule and now downsizes. The answer does not flip in the owner's favor: the credit can offset new EDUs, but the code says no refunds "under any circumstances."

1. 1Ask Planning and Development for a written statement of the frozen fee schedule once your site plan is approved.
2. 2Find your old development fee receipts before a change of use or meter upsize; the credit depends on them.
3. 3Size the meter early (Sec. 49-27), because meter type drives EDUs.
4. 4Budget the fee for the day the first building permit issues, or the meter purchase date if the division requires it.
5. 5If your project does not fit a category, ask about a special fee determination before you file.
6. 6For engineering questions, contact Development Engineering at 480-312-8979.

• Myth: development fees are part of the meter fee. They are separate. The meter and tap charges are in Sec. 49-21.
• Myth: you can pay at the certificate of occupancy. The code bars the certificate of occupancy itself until the fees are paid, and commercial fees are due when the first building permit issues.
• Myth: unused credit comes back as cash. The code says there will be no refunds under any circumstances.
• Myth: a fee increase hits approved projects right away. Non-residential and multi-family schedules are frozen for 24 months from site plan approval.

The city withholds the building permit, the water or sewer connection, and the certificate of occupancy until the development fee is paid.