A. When a fee is to be paid in lieu of land dedication, the amount of the fee shall be based on the fair market value, plus 20% for off-site improvements like utility line extensions, curb, gutter and pavement, and street lights.
B. For purposes of calculating the in-lieu fee under this section, the fair market value is determined as follows:
1. Appraisal. The subdivider shall request that an appraisal be prepared pursuant to the procedures set forth below, and shall pay the in-lieu fee based upon the fair market value established in that appraisal.
a. Upon request of the subdivider, the city shall cause an appraisal to be made by a person on the city's list of approved appraisers, who is qualified as a certified general real estate appraiser by the California office of real estate appraisers, and who meets the standards specified in the uniform standards of professional appraisal practice. The costs of the appraisal and the city's review of the appraisal must be paid by the subdivider to the city in advance. The appraiser shall appraise the property at its unencumbered (free and clear) value, as if at the approved tentative map stage of development and as if any assessments or other encumbrances to which the property is subject had been paid in full prior to the date of the appraisal. Factors to be considered during the evaluation shall include the following:
i. Conditions of the tentative subdivision map, including all required street and utility improvements facilitating use of the property;
ii. The general plan;
iii. Zoning and density;
iv. Property location;
v. Offsite improvements facilitating use of the property;
vi. Site characteristics of the property; and
vii. Existing public improvements.
b. The appraisal shall value the property as of a date no earlier than 90 days prior to the recording of the final map or parcel map, or the payment of the fee, whichever occurs later. The appraisal shall clearly state the fair market value of the property.
2. Alternative: Area Valuation. The city council may, by resolution, approve a fixed market value per acre of land as determined to be appropriate by the city council. The values so established shall be updated periodically, and once established may be used, at the option of the subdivider, in place of the appraisal process provided in paragraph 1 of this subsection to determine the market value per acre of the property to be subdivided for purposes of calculating the inlieu fee. (Ord. 2017-0009 § 14)