(A) Eligibility of capital facility. All development fee credits must meet the following requirements:
(1) One of the following is true:
(a) The capital facility, or the financial contribution toward a capital facility that will be provided by the developer and for which a credit will be issued, must be identified in an adopted Infrastructure Improvements Plan and Development Fee Report as a capital facility for which a development fee was assessed; or
(b) The applicant must demonstrate to the satisfaction of the city that, given the class and type of improvement, the subject capital facility should have been included in the Infrastructure Improvements Plan in lieu of a different capital facility that was included in the Infrastructure Improvements Plan and for which a development fee was assessed. If the subject capital facility is determined to be eligible for a credit in this manner, the city shall amend the Infrastructure Improvements Plan to: (i) include the subject replacement facility; and (ii) delete the capital facility that will be replaced.
(2) Credits shall not be available for any infrastructure provided by a developer if the cost of such infrastructure will be repaid to the developer by the city through another agreement or mechanism. To the extent that the developer will be paid or reimbursed by the city for any contribution, payment, construction, or dedication from any city funding source including an agreement to reimburse the developer with future collected development fees pursuant to Vol. II, § 7-1-16 of this Chapter, any credits claimed by the developer shall be: (a) deducted from any amounts to be paid or reimbursed by the city; or (b) reduced by the amount of such payment or reimbursement.
(B) Eligibility of subject development. To be eligible for a credit, the subject development must be located within the service area of the eligible capital facility.
(C) Calculation of credits.
(1) Credits will be based on that portion of the costs for an eligible capital facility identified in the adopted Infrastructure Improvements Plan for which a development fee was assessed pursuant to the Development Fee Report. If the gross development fee for a particular category of necessary public service is adopted at an amount lower than the cost per service unit, the amount of any credit shall be reduced in proportion to the difference between the cost per service unit and the gross development fee adopted. A credit shall not exceed the actual costs the applicant incurred in providing the eligible capital facility.
(2) Credits will be based on the included costs in the calculation of the cost per service unit for each category of necessary public service, including costs of land acquisition, improvements, engineering and architectural services, studies leading to design, design, construction, financing, and administrative costs, as well as projected costs of inflation.
(D) Allocation of credits. Before any credit can be issued to a subject development (or portion thereof), the credit must be allocated to that development by executing a credit agreement between the developer and the city stating the total amount of the credits resulting from provision of an eligible capital facility.
(1) It is the responsibility of the developer to request allocation of development fee credits through an application for a may be part of a Development Agreement entered into pursuant to Vol. II, § 7-1-16 of this Chapter).
(2) If a building permit is issued, and a development fee is paid prior to execution of a Credit Agreement for the subject development, no credits may be allocated retroactively to that permit. Credits may be allocated to any remaining permits for the subject development in accordance with this Chapter.
(3) If the entity that provides an eligible capital facility sells or relinquishes a development (or portion thereof) that it owns or controls prior to execution of a Credit Agreement or Development Agreement, credits resulting from the eligible capital facility will only be allocated to the development if the entity legally assigns such rights and responsibilities to its successor(s) in interest for the subject development.
(4) If multiple entities jointly provide an eligible capital facility, all entities must enter into a single Credit Agreement with the city, and any request for the allocation of credit within the subject development(s) must be made jointly by the entities that provided the eligible capital facility.
(E) Credit Agreement. Credits shall only be issued pursuant to a Credit Agreement executed in accordance with division (D) of this section. The City Manager or authorized designee is authorized by this Chapter to enter into a Credit Agreement with the controlling entity of a subject development, subject to the following:
(1) The developer requesting the Credit Agreement shall provide all information requested by the city to allow it to determine the value of the credit to be applied.
(2) An application for a Credit Agreement shall be submitted to the city by the developer within one year of the date on which ownership or control of the capital facility passes to the city.
(3) The developer shall submit a draft Credit Agreement to the City Manager or authorized designee(s) for review. The draft Credit Agreement shall include, at a minimum, all of the following information and supporting documentation:
(a) A legal description and map depicting the location of the subject development for which credit is being applied. The map shall depict the location of the capital facilities that have been or will be provided.
(b) An estimate of the total service units that will be developed within the subject development depicted on the map and described in the legal description.
(c) A list of the capital facilities, associated physical attributes, and the related costs as stated in the Infrastructure Improvements Plan.
(d) Documentation showing the date(s) of acceptance by the city, if the capital facilities have already been provided.
(e) The total amount of credit to be applied within the subject development and the calculations leading to the total amount of credit.
(f) The credit amount to be applied to each service unit within the subject development for each category of necessary public services.
(4) Calculation and payment of credits not involving transfer of land, non-contiguous parcels, or delayed fee payments shall be approved by the City Manager or authorized designee(s). Credit Agreements for all other subject development shall be approved by the City Manager prior to its execution. The City Manager's determination of the credit to be allocated is final.
(5) Upon execution of the Credit Agreement by the city and the applicant, credits shall be deemed allocated to the subject development.
(6) Any amendment to a previously approved credit agreement must be initiated within 2 years of the city's final acceptance of the eligible capital facility for which the amendment is requested.
(7) Any Credit Agreement approved as part of a Development Agreement shall be amended in accordance with the terms of the Development Agreement and Vol. II, § 7-1-16 of this Chapter.
(F) Issuance of credits. Credits allocated pursuant to division (D) of this section may be issued and applied toward the gross development fees due from a development, subject to the following conditions:
(1) Credits issued for an eligible capital facility may only be applied to the development fee due for the applicable category of necessary public services, and may not be applied to any fee due for another category of necessary public services.
(2) Credits shall only be issued when the eligible capital facility from which the credits were derived has been accepted by the city or when adequate security for the completion of the eligible capital facility has been provided in accordance with all terms of an executed Development Agreement.
(3) Where credits have been issued pursuant to division (F)(2) of this section, a development fee due at the time a building permit is issued shall be reduced by the credit amount stated in or calculated from the executed Credit Agreement. Where credits have not yet been issued, the gross development fee shall be paid in full, and a refund of the credit amount shall be due when the developer demonstrates compliance with division (F)(2) of this section in a written request to the city.
(4) Credits, once issued, may not be rescinded or reallocated to another permit or parcel, except that credits may be released for reuse on the same subject development if a building permit for which the credits were issued has expired or been voided and is otherwise eligible for a refund under Vol. II, § 7-1-19(A)(2)(a) of this Chapter.
(5) Notwithstanding the other provisions of this Vol. II, § 7-1-15, credits issued prior to January 1, 2019 may only be used for the subject development for which they were issued. Such credits may be transferred to a new owner of all or part of the subject development in proportion to the percentage of ownership in the subject development to be held by the new owner.
(Ord. 1521, passed 8-16-2022)