Development Agreements containing provisions regarding development fees, development fee credits, and/or disbursement of revenues from development fee accounts shall comply with the following:
   (A)   Development agreement required. A development agreement is required to authorize any of the following:
      (1)   To issue credits prior to the city's acceptance of an eligible capital facility.
      (2)   To allocate credits to a parcel that is not contiguous with the subject development and that does not meet the requirements of Vol. II, § 7-1-15(E)(7)of this Chapter.
      (3)   To reimburse the developer of an eligible capital facility using funds from development fee accounts.
      (4)   To allocate different credit amounts per service unit to different parcels within a subject development.
      (5)   For a single unit residential dwelling unit, to allow development fees to be paid at a later time than the issuance of a building permit as provided in this section.
   (B)   General requirements. All Development Agreements shall be prepared and executed in accordance with A.R.S. § 9-500.05 and any applicable requirements of the City Code. Except where specifically modified by this section, all provisions of Vol. II, § 7-1-15 of this Chapter shall apply to any Credit Agreement that is authorized as part of a Development Agreement.
   (C)   Early credit issuance. A Development Agreement may authorize the issuance of credits prior to acceptance of an eligible capital facility by the city when the Development Agreement specifically states the form and value of the security (i.e. bond, letter of credit, and the like) to be provided to the city prior to issuance of any credits. The city shall determine the acceptable form and value of the security to be provided.
   (D)   Non-contiguous credit allocation. A Development Agreement may authorize the allocation of credits to a non-contiguous parcel only if all of the following conditions are met:
      (1)   The non-contiguous parcel is in the same service area as that served by the eligible capital facility.
      (2)   The non-contiguous parcel receives a necessary public service from the eligible capital facility.
      (3)   The Development Agreement specifically states the value of the credits to be allocated to each parcel and/or service unit, or establishes a mechanism for future determination of the credit values.
   (E)   Uneven credit allocation. The Development Agreement must specify how credits will be allocated amongst different parcels on a per-service unit basis, if the credits are not to be allocated evenly. If the Development Agreement is silent on this topic, all credits will be allocated evenly amongst all parcels on a per-service unit basis.
   (F)   Use of reimbursements. Funds reimbursed to developers from development fee accounts for construction of an eligible capital facility must be utilized in accordance with applicable law for the use of city funds in construction or acquisition of capital facilities, including A.R.S. §§ 34-201 et seq.
   (G)   Deferral of fees. A Development Agreement may provide for the deferral of payment of development fees for a residential development beyond the issuance of a building permit; provided that a development fee may not be paid later than the 15 calendar days after the issuance of the certificate of occupancy for that dwelling unit. The Development Agreement shall provide for the value of any deferred development fees to be supported by appropriate security, including a surety bond, letter of credit, or cash bond.
   (H)   Waiver of fees. If the city agrees to waive any development fees assessed on development in a Development Agreement, the city shall reimburse the appropriate development fee account(s) for the amount that was waived pursuant to A.R.S. § 9-463.05.
   (I)   No obligation. Nothing in this section obligates the city to enter into any Development Agreement or to authorize any type of Credit Agreement permitted by this section.
(Ord. 1521, passed 8-16-2022)