CHAPTER 259

FORMERLY

SENATE BILL NO. 294

AN ACT TO AMEND AN ACT ENTITLED "AN ACT TO RE-INCORPORATE THE TOWN OF ELLENDALE," TO GRANT THE TOWN COUNCIL OF THE TOWN OF ELLENDALE THE AUTHORITY TO IMPOSE IMPACT FEES FOR NEW DEVELOPMENT OR CONSTRUCTION, FIRST TIME OCCUPANCY OF NEW CONSTRUCTION, AND UPON ANNEXED PROPERTY AND TO ENTER INTO ANNEXATION AGREEMENTS WITH THE OWNERS OF TERRITORIES PROPOSED FOR ANNEXATION.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE (Two-thirds of all members elected to each house thereof concurring therein):

Section 1. Amend Section 18, Chapter 197, Volume 64, Laws of Delaware, as amended, by adding a new subsection (45) to read as follows:

“(45) To impose upon new development or construction, upon first time occupancy of new construction, or upon annexed property such “impact fees” as are reasonably calculated to recover the cost of installing, enlarging, improving or expanding public or municipal improvements which have a rational nexus to such new construction, including but not limited to, sewer, water, roads, parking, and/or police, volunteer fire or ambulance services within the Town.”

Section 2. Amend Section 40, Chapter 197, Volume 64, Laws of Delaware, as amended by 71 Del. Laws, c. 388, by adding a new subsection (L) therein to read as follows:

“(L) Annexation Agreements. Notwithstanding any provision herein to the contrary, the Town Council shall be empowered to enter into annexation agreements with the owners of territories proposed for annexation which annexation agreements may, by way of example and not limitation, address planning, zoning, subdivision approval, land development, fiscal impact, phasing, taxation policy, public utilities and adequate public services and facilities in the territory proposed to be annexed

and the municipality as a whole, as may be appropriate, and in the best public interest. In the event that the Town Council approves such an annexation agreement, such annexation agreement shall be deemed to be a material part of the annexation and shall be included in all subsequent steps of the annexation procedure; that is:

1. The ordinances, resolutions, and notices adopted by the Town Council proposing the said annexation shall recite that the proposed annexation includes, and is subject to, an annexation agreement, shall briefly summarize the terms of the annexation agreement, and shall state that copies of the annexation are available upon request at the Town Hall.

2. If the results of the election are favorable to the proposed annexation, the ordinance annexing the territory, as provided in §40(K) of this Charter, shall recite that the annexation is subject to an annexation agreement and shall incorporate the terms of such annexation agreement by specific reference.

3. The parties to such annexation agreements (and their successors and assigns) shall be bound to honor the provisions of any such annexation agreement unless released therefrom by the other party (or by their successors and assigns); provided further, however, that no annexation agreement shall extend beyond seven (7) years from the date such property is annexed into the Town, and any such annexation agreement shall be null, void, and unenforceable after the expiration of said seven (7) years.

4. An annexation agreement may be modified or amended by mutual agreement of the petitioner and the Town Council at any time prior to the adoption of the descriptive ordinance and fixing of the date of the annexation referendum pursuant to §40(A) of this Charter, but any substantial modification or amendment shall be deemed to be the withdrawal of the original proposal and shall require the procedures in §40(A) of this Charter to be reinitiated.

Section 3. Nothing in this Bill shall affect the Town’s obligations to comply with the provisions of the “Livable Delaware” legislation, including but not limited to, 22 Del. C. §101, 22 Del. C. §702, 29 Del. C. §§9201, et seq.

Section 4. This Bill shall become effective immediately upon the Governor’s signature.

Approved May 10, 2006