(A) Purpose. The purpose of this section is to create a policy to assist in determining procedure for the recovery or recoupment of costs expended for public sewer, water, surface drainage, or street construction (singularly or combined hereafter referred to as development) by the owner of property or the city where development has been placed on property of the owner or the city or extended beyond the boundaries of the owner(s). Any such developmental improvements will be voluntary and all costs will be paid by the owner, the city, or both in any mutually agreed to percentages, so long as such improvements are in accordance with the ordinances of the city. An agreement will be signed by all parties making such improvements and the city delineating the boundaries and scope of the project. Based upon the agreement or the declaration by the city, a map and a list will be made a part of this agreement, which will show all abutting properties subject to recoupment.
(B) Street construction and storm sewer: recoupment of costs for additional construction.
(1) All eligible costs for additional improvements to streets shall be recoverable by the owner, the city, or both as appropriate. Eligible recoverable development costs include the total improvement costs, including, but not limited to, of all right-of-way costs (both temporary and permanent) and costs for material, engineering, surveying, utility adjustments or relocation, excavation, subgrade preparation, storm sewer installation or relocation (including culverts and bridges), street pavement construction and turn lanes (in accordance with the city development standards), signalization, curbs and gutters, sidewalks, lighting, signage, other traffic control devices, and other amenities, as might be required, plus 2% of the total of all above costs as an administrative fee to the city. Any of the above items paid for by general obligation bonds, funds contributed by any private party or nongovernmental entity, or funds from any other governmental entity which are not subject to repayment by the city shall be deducted in determining the total improvement costs, except for right-of-way costs provided for in division (B)(2) below.
(2) The city and/or the owner who funded the eligible recoverable development costs shall be reimbursed for the total improvement costs of the development by the abutting property owners who are responsible for development construction. The original funding entity shall recoup the appropriate pro-rata share for such construction. Additionally, the costs for all permanent right-of-way acquisition shall be charged back specifically to that property assignable to such costs, regardless of the source of funds used to acquire the property.
(3) All properties physically contiguous to the right-of-way line of the development construction occurring after the effective date of this section shall be subject to the recoupment program charges. The only exceptions shall be those properties which have previously constructed arterial streets adjacent to such properties according to city requirements or those which have made payments for deferred construction prior to the city entering into an agreement or commencing design of a designated street. Those exceptions shall be exempt from the obligations of this section and the corresponding pro rata share shall be the responsibility of the city.
(4) Each tract of property identified in division (B)(3) above shall be subject to the total improvement cost participation expense equal to such tract’s pro rata share, any applicable permanent right-of-way costs and inflation/deflation adjustment.
(a) Calculation of the costs of each individual tract shall be determined as follows:
Pro rata share = (a - b) x (c / d) x g, where:
a = Total development costs
b = Total right-of-way costs when the individual track is exempt from paying the right-of-way costs (actual price paid for acquisition of permanent right-of-way from subject tract)
c = Front linear footage of subject tract
d = Total development front linear footage
g = Inflation/deflation adjustment from date of completion of improvements to date of assessment of recoupment fee; said adjustment shall be based on changes in the consumer price index as reported by the United States Department of Commerce
(b) Other formulas may be used, with the approval of the City Council, for determining the costs of each individual track.
(C) Water and sewer lines: recoupment of costs for additional construction.
(1) All eligible costs for oversize or extension of utility lines shall be recoverable by the owner, the city, or both as appropriate. Eligible recoverable utility line extension or oversize development costs include the total improvement costs of the utility line, including all right-of-way/easement costs (both temporary and permanent) and costs for engineering, surveying, utility adjustments or relocation, excavation, backfill, subgrade preparation, pavement repair, utility line construction, and other amenities, as might be required, plus 2% of the total of all above costs as an administrative fee to the city. Any of the above items paid for by general obligation bonds or funds from any other governmental entity which are not subject to repayment by the city shall be deducted in determining the total improvement costs, except for right-of-way costs provided for in division (C)(4)(b) below.
(2) The city and/or the owner(s) who funded the eligible recoverable utility line oversize or extension costs shall be reimbursed for the total improvement costs of the utility line by the abutting or serviced property owners who are responsible for utility line construction. The original funding entity(ies) shall recoup the appropriate pro rata share for such construction. Additionally, the costs for all right-of-way acquisition shall be charged back specifically to that property assignable to such costs.
(3) All properties physically served by the improvement occurring after the effective date of this section shall be subject to the recoupment program charges. The only exceptions shall be those properties which have previously constructed arterial streets adjacent to such properties according to city requirements or those which have made payments for deferred construction prior to the city entering into an agreement or commencing design of the improvements. Those exceptions shall be exempt from the obligations of this section and the corresponding pro rata share shall be the responsibility of the city.
(4) Each tract of property identified in division (C)(3) above shall be subject to the total water or sewer line oversize or extension cost participation expense equal to such tract’s pro rata share, any applicable right-of-way costs, and inflation/deflation adjustment. Calculation of the costs for each individual tract shall be determined as follows:
(a) Pro rata share = (a - b) x (c / d) x g, where:
a = Total improvement costs
b = Right-of-way costs when the individual track is exempt from paying the right-of-way costs
c = Total square footage of liable property
d = Total square footage of the project service area
g = Inflation/deflation adjustment from date of completion of improvements to date of assessment of recoupment fee; said adjustment shall be based on changes in the consumer price index as reported by the United States Department of Commerce
(b) Other formulas may be used, with the approval of the City Council, for determining the costs of each individual track.
(D) Recoupment district administration.
(1) The total payments calculated above shall become a liability against property subsequent to the contracting for the improvements. All such obligations shall be paid in full before the filing of a plat, applying for a building permit, or making any improvements to the tract subject to this section.
(2) Within 60 days following acceptance by the city of the completed improvements of the subject development, the Community Development Director, or his or her designee, shall prepare a tract map and list of the individually affected tracts and the estimated pro rata share attributable to each such tract, hereinafter referred to as the map and list. The map and list will also include all costs, if any, for right-of-way acquisition attributable to each tract. The map and list shall be made available to the owners of all fee interests in the affected properties. Notice of the map and list shall be filed of record in the office of the City Clerk and the County Clerk. Upon written request to the Community Development Department of the city, notice shall be given within a reasonable time to the requesting party of the most current estimate of the dollar value of the participation cost of any identified tract of property. Except with reference to the filing of notice of the map and list with the office of the City Clerk, nothing shall be deemed a defect preventing the city from collecting the applicable recoupment cost under this section.
(3) Any owner of a tract of property may, at any time after preparation of the map and list, cause the tract’s total obligation to be paid to the city. Unless previously paid, the right-of-way cost and the pro rata share attributable to each tract, with appropriate Consumer Price Index adjustments, is due prior to the filing of a final plat for any portion of the subject tract making application for a building permit or causing any improvements to be made to a tract subject to a recoupment fee assessment. If less than the total subject tract is being final platted, the pro rata share for that final plat shall be the greater amount of either the percent of the total property final platted or the percent of the property frontage included in the plat. No such final plat shall be released for filing until the then due total costs are actually paid.
(4) Each identified tract of property shall be subject to participation in the recoupment program commencing with the date that the improvement contract is approved by the city. As the total development cost cannot be determined and notice of the assessment of same cannot be delivered until completion of the improvement, the City Engineer and the Community Development Director are authorized to develop procedures for the review and approval, irrespective of the other provisions of this section, of platting procedures after authorization of the improvement, but prior to the time that the property’s total share of the participation cost is determined and can be paid. The procedures are directed to include, to the extent feasible, the assurance to property owners and developers that plat approval may proceed so as not to retard the progress of private development plans, while, at the same time, to provide financial security to the city that the property’s recoupment share will be paid upon final ascertainment of the amount owed.
(5) Unless earlier paid, each defined tract’s share of the participation cost shall continue as an obligation of the property for its determined share of the total improvement cost, plus the appropriate inflation/deflation increase as outlined in this section, for and through a period of 20 years from the date of issuance of the map and list required in this section. Beginning at year 21 and continuing through year 30, the pro rata share shall decrease at a rate of 10% of the pro rata amount existing at the end of the twentieth year until the pro rata share obligation is reduced to $0.00 and thus terminates at the end of the thirtieth year from the date of issuance of the map and list.
(E) Developer harmless for impact of later development on subject infrastructure. A developer shall not be responsible for any later required upgrades to infrastructure, when the upgrade requirement is caused by other city approved development which accesses said infrastructure.
(F) Intensive use or development. Due to the speculative nature of a development, the designed capacity of the infrastructure installed may not be adequate for a later use that is more intense than originally designed. When an intense use or development is proposed that will exceed the designed capacity of the infrastructure, as determined by the City Engineer, the new use developer shall be responsible for any required upgrading cost.
(G) City Council approval required. All recoupment districts and agreements shall require the approval of the City Council. Approval or disapproval by the City Council to enter into a recoupment agreement shall not have any bearing on the developer’s responsibility to install any and all infrastructure required by any ordinance, regulation, or policy of the city.
(Prior Code, § 156.088) (Ord. 1360, passed 2-12-2002; Ord. 1586, passed 1-8-2008) Penalty, see § 155.999