Payment of in-lieu parking fees shall be made as follows:
A. Four (4) equal installments of twenty five percent (25%) of the in-lieu parking fees due shall be paid to the city within a four (4) year period. The first installment shall be due prior to the issuance of the certificate of occupancy for the structure or, in the case where such fees are due by virtue of a change or expansion of use which does not require a certificate of occupancy, before such change or expansion takes place. The remaining twenty five percent (25%) installments shall be due and payable annually on the anniversary of the first installment. Interest shall not accrue on any unpaid balance of such fees, however, the balance shall be adjusted annually to account for increases in the consumer price index. Such adjustment shall not exceed ten percent (10%). If any portion of the unpaid balance is paid in advance of its due date, any such premature payment shall be credited with a discount to the present monetary value of the payment otherwise due.
B. Notwithstanding the provisions of subsection A of this section, the payment of the required in-lieu parking fees by a lessee or sublessee, whose lease term (including options) is fifteen years or less, for a restaurant use in an existing building may be made in ten (10) equal installments within a ten (10) year period. The first installment shall be due prior to the issuance of the certificate of occupancy for the structure or, in the case where such fees are due by virtue of a change or expansion of use which does not require a certificate of occupancy, before such change or expansion takes place. The remaining ten percent (10%) installments shall be due and payable annually on the anniversary of the first installment. Interest shall not accrue on any unpaid balance of such fees, however, the balance shall be adjusted annually to account for increases in the consumer price index. Such adjustment shall not exceed ten percent (10%). If any portion of the unpaid balance is paid in advance of its due date, any such premature payment shall be credited with a discount to the present monetary value of the payment otherwise due. This subsection shall not apply when the owner of the existing building or any other lessor or sublessor thereof whose lease term (including options) is more than fifteen (15) years has a direct or indirect beneficial interest in the lessee or sublessee conducting the restaurant use therein.
C. Any portion of the in-lieu parking fees which is not paid prior to the issuance of the certificate of occupancy or the change or expansion of use shall be adequately secured. Such security shall be subject to approval by the city manager or his designee, and shall be one of the following types of security:
1. A bond or bonds by one or more duly authorized corporate sureties;
2. A deposit, either with the local agency or a responsible escrow agent or trust company, at the option of the local agency, or money or negotiable bonds of the kind approved for securing deposits of public monies;
3. An instrument of credit from one or more financial institutions subject to regulation by the state or federal government and pledging that the funds necessary to carry out the act or agreement are on deposit and guaranteed for payment, or a letter of credit by such a financial institution; or
4. A note secured by a first deed of trust in real property; provided, further, the first deed of trust shall not exceed eighty five percent (85%) of the city's appraisal value of the property. The applicant requesting such type of security shall pay to the city all costs associated with the appraisal of the property and other city costs directly related to such type of security.
D. In the event that a lessee or sublessee making payments pursuant to this section ceases to occupy the leased premises prior to making payment of the full in-lieu parking fee, no in- lieu fee credit may be transferred to the new occupant of the property unless the new use of the property is the same as the prior use, the new use is not a change of use or an expansion thereof, and the new occupant agrees to assume the obligation to make the balance of the payments. (Ord. 76-O-1608, eff. 6-17-1976; amd. Ord. 91-O-2112, eff. 3-22-1991; Ord. 94-O-2206, eff. 8-5-1994)