(a) Eligibility of Capital Facility. All development fee Credits must meet the following requirements:
1. One of the following is true:
a. The Capital Facility or the financial contribution toward a Capital Facility that will be provided by the Developer and for which a Credit will be issued must be identified in an adopted Infrastructure Improvements Plan as a Capital Facility for which a development fee was assessed; or
b. The Applicant must demonstrate to the satisfaction of the City that, given the class and type of improvement, the subject Capital Facility should have been included in the Infrastructure Improvements Plan in lieu of a different Capital Facility that was included in the Infrastructure Improvements Plan and for which a development fee was assessed. If the subject Capital Facility is determined to be eligible for a Credit in this manner, the City shall amend the Infrastructure Improvements Plan to (i) include the subject replacement facility and (ii) delete the facility that will be replaced. The decision of the City on such determinations is final and not subject to any appeal under this code.
2. Credits shall not be available for any Capital Facility provided by a Developer if the cost of such Capital Facility will be repaid to the Developer by the City through another agreement or mechanism. To the extent that the Developer will be paid or reimbursed by the City for any contribution, payment, construction, or dedication from any City funding source, any Credits claimed by the Developer shall be: (a) deducted from any amounts to be paid or reimbursed by the City; or (b) reduced by the amount of such payment or reimbursement.
(b) Eligibility of Subject Development. To be eligible for a Credit, the Subject Development must be located within the Service Area of the eligible Capital Facility.
(c) Calculation of Credits. Credits will be based on that portion of the costs for an eligible Capital Facility identified in the adopted Infrastructure Improvements Plan for which a development fee was assessed. If the Gross Development Fee for a particular Category of Necessary Public Service is adopted at an amount lower than the Cost per Service Unit, the amount of any Credit shall be reduced in proportion to the difference between the Cost per Service Unit and the Gross Development Fee adopted. A Credit shall not exceed the actual costs the Applicant incurred in providing the eligible Capital Facility, nor shall it exceed the amount of the applicable development fee for the Subject Development.
(d) Allocation of Credits. Before any Credit can be issued to a Subject Development (or portion thereof), the Credit must be allocated to that development as follows:
(1) The Developer and the City must execute a Credit Allocation Agreement including all of the following:
a. The total amount of the Credits resulting from provision of an eligible Capital Facility.
b. The estimated number of Service Units to be served within the Subject Development.
c. The method by which the Credit values will be allocated within the Subject Development.
(2) It is the sole obligation of the Developer to request allocation of development fee Credits by the City through an application for a Credit Allocation Agreement.
(3) If a building permit is issued or a water connection is purchased, and a development fee is paid prior to execution of a Credit Allocation Agreement for the Subject Development, no Credits may be allocated retroactively to that permit or connection. Credits may be allocated to any remaining permits for the Subject Development in accordance with this Chapter.
(4) If the entity that provides an eligible Capital Facility sells or relinquishes a development (or portion thereof) that it owns or controls prior to execution of a Credit Allocation Agreement, Credits will only be allocated to the development if the entity legally assigns such rights and responsibilities to its successor(s) in interest for the Subject Development, together with an agreement for the assignment of and assumption of all duties between entity and the City pursuant to any agreements between the entity and City.
(5) If multiple entities jointly provide an eligible Capital Facility, all entities must enter into a single Credit Allocation Agreement with the City, and any request for the allocation of Credit within the Subject Development(s) must be made jointly by the entities that provided the eligible Capital Facility. Failure by any entity to enter into a Credit Allocation Agreement with the City shall be deemed a waiver of any rights to receive credits under this Chapter.
(6) No assignment or assumption of any Credit Allocation Agreement shall be recognized by the City unless such written assignment or assumption of the Credit Allocation Agreement is filed with the City Clerk of the City.
(e) Credit Agreement. Credits shall only be issued pursuant to a Credit Allocation Agreement executed in accordance with Subsection (d) of this Section. The City Council may authorize the City Manager to enter into a Credit Allocation Agreement as part of the approval of zoning and/or development agreements with the controlling entity of a Subject Development, subject to the following:
(1) The Developer requesting the Credit Agreement shall provide all information requested by the City to allow it to determine the value of the Credit to be applied.
(2) An application for a Credit Allocation Agreement shall be submitted to the City by the Developer not later than the one year anniversary of the date that the City accepted completion of and assumed ownership and/or control of the Capital Facility. Failure to submit an application for a Credit Allocation Agreement to the City shall be deemed a waiver of any rights to receive credits under this Chapter.
(3) The City shall promulgate a form Credit Allocation Agreement that has been approved by the City Attorney pursuant to Article VIII, Section 1 of the Peoria City Charter. The Developer shall review and submit all of the information set forth in this paragraph (3) for review by the City. The Credit Allocation Agreement shall include, at a minimum, all of the following information and supporting documentation:
a. A legal description and map depicting the location of the Subject Development for which Credit is being applied. The map shall depict the location of the Capital Facilities that have been or will be provided.
b. An estimate of the total Service Units that will be developed within the Subject Development depicted on the map and described in the legal description.
c. A list of the Capital Facilities, associated physical attributes and the related costs as stated in the Infrastructure Improvements Plan.
d. Documentation showing the date(s) and letters of acceptance by the City, if the Capital Facilities have already been provided.
e. The total amount of Credit to be applied within the Subject Development and the calculations leading to the total amount of Credit.
f. The Credit amount to be applied to each Service Unit within the Subject Development for each Category of Necessary Public Services.
(4) The applicant shall pay the cost incurred by the City in making the determination as set forth in Chapter 2 of this Code. The City as a condition of proceeding with the application will require a deposit of the reasonably estimated cost. The City's determination of the Credit to be allocated is final and not subject to any further review.
(5) Upon execution of the Credit Allocation Agreement by the City and the Applicant, Credits shall be deemed allocated to the Subject Development and applied to development fee charges as incurred. No Credit Allocation Agreement shall give rise to any other financial obligation by the City other than the provision of credits against Development Fees in accordance with the terms of the Credit Allocation Agreement.
(6) Any amendment to a previously approved Credit Allocation Agreement must be initiated within two (2) years of the City's final acceptance of the eligible Capital Facility for which the amendment is requested or such right to request an amendment is deemed irrevocably waived.
(7) Development credits must be used within ten (10) years from the date of the Credit Allocation Agreement or are deemed irrevocably forfeited.
(f) Issuance of Credits. Credits allocated pursuant to Subsection (d) of this Section may be issued and applied toward the Gross Development Fees due from a development, subject to the following conditions:
(1) Credits issued for an eligible Capital Facility may only be applied to the development fee due for the applicable Category of Necessary Public Services, and may not be applied to any fee due for another Category of Necessary Public Services.
(2) Credits shall only be issued when the eligible Capital Facility from which the Credits were derived has been accepted by the City or acceptable forms of assurance are approved in writing by the City.
(3) Where Credits have been issued pursuant to paragraph (2) of this Subsection, a development fee due at the time a building permit is issued shall be reduced by the Credit amount stated in or calculated from the executed Credit Agreement. Where Credits have not yet been issued, the Gross Development Fee shall be paid in full.
(4) Credits, once issued, may not be rescinded or reallocated to another permit or parcel, except that Credits may be released for reuse on the same Subject Development if a building permit for which the Credits were issued has expired or been voided and is otherwise eligible for a refund under Section 20-32.(a)(2)(a) of this Chapter.
(Ord. No. 02-59, 6/18/02, Amended (SUPP 2002-2); Ord. No. 2014-19, 5/6/14, Enacted (SUPP 2014-2))