(a) If the director determines that dedicating or providing of land in perpetuity is not in the best interest of the city, the subdivider shall pay to the city, in lieu thereof, a fee in a sum equal to the fair market value of the area otherwise required under § 22-7.5.
(b) If the area of land provided in perpetuity or dedicated by the subdivider and approved by the city is less than the area required under § 22-7.5, the subdivider shall be required to pay a fee equal to the fair market value of the land area which is the difference between the land area provided in perpetuity or dedicated and the area required under § 22-7.5.
(c) If the director determines that the subdivider shall pay a fee to the city in lieu of dedicating or providing land in perpetuity, the subdivider shall pay the fee in one of the two following ways:
(1) Payment in full of the fee before the director’s approval of the subdivider’s park dedication application; or
(2) The filing with the director of an agreement to pay the fee, such agreement to be accompanied by a financial guaranty bond from a surety company authorized to do business in Hawaii, or other security acceptable to the city to ensure payment of such fee. The agreement and surety bond or other security shall be approved by the director and the corporation counsel as to form and legality. The director of budget and fiscal services shall determine the acceptability of the financial guaranty bond or other security. The agreement shall set forth a certain date, not to exceed two years, within which time the fee shall be paid. The financial guaranty bond or other security that must be filed with the agreement shall be in an amount equal to the fee required under this article. The financial guaranty bond shall be in full force and effect until the fees have been paid. In case of security other than a financial guaranty bond, partial releases may be made equal to the portions of the fee paid to the city.
(d) Payment of fees shall be made to the director of budget and fiscal services for deposit in a special fund created and established pursuant to Charter § 9-202. Moneys in this fund shall be expended for parks and playground purposes in the following manner: Within five years from the date of receipt of the fees, the city shall expend such receipts for any one or more of the following: purchase of land for development of a new or expansion of existing parks and playgrounds; purchase of park and playground equipment; or improvement of existing parks and playgrounds, all according to the following locational priorities: locational priority for creation, expansion, and improvement of parks and playgrounds.
(1) Neighborhood and mini parks located within 0.5 mile distance from the project site shall be given the first priority.
(2) Should any one or more of the following: the creation, expansion, or improvement of a neighborhood facility prove to be unfeasible, the second priority may be given to community parks located within 1-mile distance of the project site.
(3) District parks within 2-mile distance of the project site shall be considered in the event the implementation of (1) and (2) above is unfeasible.
(4) Regional parks shall have the last priority.
(Sec. 22-7.6, R.O. 1978 (1983 Ed.)) (1990 Code, Ch. 22, Art. 7, § 22-7.6)