Development agreements containing provisions regarding development impact fees, development impact fee credits, and/or disbursement of revenues from development impact 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 town'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 § 154.12(D).
      (3)   To reimburse the developer of an eligible capital facility using funds from development impact fee accounts.
      (4)   To allocate different credit amounts per ERU to different parcels within a subject development.
      (5)   For a single family residential dwelling unit, to allow development impact 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 by resolution or in accordance with ordinance, A.R.S. § 9-500.05 and any applicable requirements of the Town Code.  Development agreements relating to property located outside the incorporated area do not become operative unless annexation proceedings are completed within the time period specified in the development agreement. Development agreements shall be consistent with the town General Plan.  Development agreements shall be recorded with the county recorder within 10 days of entering into the agreement and the effective date cannot be less than 30 days after final approval. Except where specifically modified by this section, all provisions of § 154.12 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 town 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 town prior to issuance of any credits.  The town 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 ERU, 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-ERU 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-ERU basis.
   (F)   Use of reimbursements. Funds reimbursed to developers from impact fee accounts for construction of an eligible capital facility must be utilized in accordance with applicable law for the use of town funds in construction or acquisition of capital facilities.
   (G)   Waiver of fees. If the town agrees to waive any development impact fees assessed on development in a development agreement, the town shall reimburse the appropriate development impact fee account for the amount that was waived.
   (H)   No obligation. Nothing in this section obligates the town to enter into any development agreement or to authorize any type of credit agreement permitted by this section.
(Ord. 2015-01, passed 2-18-2015)