(A) The shared costs for the construction of the project facilities subject to apportionment pursuant to the privilege fee agreement or declaration provided for herein shall be based upon all costs of construction, including engineering costs, legal fees, survey fees, easement acquisitions, right-of-way costs and accounting costs to determine and manage the privilege fee agreement or declaration. The City of Winchester, through WMU, may institute eminent domain proceedings to obtain necessary easements and all expenses of such proceedings shall be an included project cost. Participating owners will dedicate easements free of charge.
(B) The cost for the construction of the project facilities shall be shared by all owners of property covered by the privilege fee agreement or declaration based upon acreage of each tract of land owned and developed. The shared costs for the construction of the project shall be paid by the participating owners in advance, as approved by WMU. For those land owners who choose not to participate initially (“non-participating owners”) who later decide to connect their property to the facility constructed by participating owners, the payment shall be due at the time the non-participating owner dedicates its facilities to WMU. The participating owners shall be reimbursed on a proportionate basis based upon acreage as approved by WMU. Further, after payment is made to WMU, the non- participating owner shall become a participating owner from the date of payment until the end of the privilege fee agreement.
(C) The privilege fee agreement (PFA) or declaration approved by the WMU Commission shall provide that the shared costs shall bear simple interest from the date of dedication of the project facilities to WMU at a fixed rate not to exceed the coupon yield of the 30-year treasury bill as published by the Bloomberg on the date of the approval of the PFA. (hereinafter the “fixed rate”); provided, however, if the project facilities in the PFA are to be funded solely with grant funds, the finance charge to be included in such PFA shall be limited to a one time 0.5% of the project facilities cost as an administrative fee and such PFA obligations of the non-participating owners shall not otherwise bear an ongoing interest obligation and, if a portion of the project facilities are paid for using a low interest loan (such as KIA) or grant funds, the WMUC, in its discretion, may approve a reasonable “blended” rate which is lower than the fixed rate taking into consideration the proportionate part of the project facilities that are being funded by the low interest loan or grant funds in comparison with the total funds expended on the project facilities using the fixed rate as the financing cost of the remainder of the funds. No interest shall accrue on any privilege fee agreement after seven years. All privilege fee agreements or declarations shall extend 50 years.
(Ord. 2009-2, passed 2-17-2009; Ord. 21-2011, passed 12-14-2011)