As an alternative to providing the mitigation required by this chapter, the applicant may choose to seek approval to implement one of the following alternative mitigation options.
(A) As authorized by the City of Tulare, an applicant for conversion of critical farmland may satisfy the mitigation obligation set forth in this chapter by paying to a qualified entity a fee in lieu ("in-lieu fee") of conveying an agricultural conservation easement.
(B) Payment of an in-lieu fee is available only for conversion of legal parcels that are smaller than 20 acres.
(C) To obtain authorization to pay an in-lieu fee, the applicant must also demonstrate one of the following:
(1) No qualified entity exists;
(2) The applicant has met with all qualified entities and all such entities have certified in writing to the City of Tulare that they are unable or unwilling to assist with the acquisition of an agricultural conservation easement; or
(3) Working with a qualified entity, the applicant has made at least one good faith offer to purchase an agricultural conservation easement, but all such offers have been declined by the potential seller or sellers.
(D) Any in-lieu fee shall include each of the following components:
(1) The purchase price of an agricultural conservation easement in mitigation land that complies with all of the requirements in § 10.222.070. This component shall be adjusted for inflation based on estimate of the time required to acquire mitigation land following payment of the fee.
(2) All transaction costs associated with acquisition of the agricultural conservation easement.
(3) An amount sufficient to endow the cost of monitoring, administering, and enforcing the agricultural conservation easement in perpetuity.
(4) The applicant's pro rata share of the qualified entity's administrative costs in implementing the in-lieu fee program.
(5) A reasonable amount to cover additional contingencies.
(E) In no event shall the in-lieu fee established pursuant to this section exceed a reasonable estimate of the total of:
(1) The cost of acquiring and managing the agricultural conservation easement that the applicant would otherwise be required to create to satisfy its mitigation obligation under this chapter; and
(2) The cost of administering the in-lieu fee.
(F) In-lieu fees received by the qualified entity shall be expended solely for the purpose of acquiring and managing agricultural conservation easements in mitigation land that meets the criteria set forth in § 10.222.070, and funding the qualified entity's cost of implementing the in-lieu fee program.
(G) If authorized by the City of Tulare, an applicant for conversion of critical farmland may satisfy the mitigation obligation set forth in this chapter by acquiring mitigation credits created under § 10.222.050(I), (J) and (K), which are permitted to be passed through to another purchaser.
(H) The city, in conjunction with a qualified entity, shall make available to any applicant who requests it, the ledger of mitigation credits provided for in § 10.222.050(M). The City of Tulare shall have no further responsibility for facilitating any private transaction involving mitigation credits.
(I) Mitigation credits may be used to satisfy the mitigation obligation created by this chapter only after the City Council has made the findings required by § 10.222.070 with respect to the land proposed for conversion and the mitigation land covered by the mitigation credits.
(J) An applicant choosing to use mitigation credits to comply with this chapter shall pay the qualified entity administering the credits a fee in the amount equivalent to the inflation adjustment on the administrative fee that the creator of the mitigation credits originally paid pursuant to § 10.222.050(K), if in fact the creator of the mitigation credits passed through the administrative fee for the creation of the credits to a future purchaser of those credits.
(K) An applicant proposing conversion of critical farmland may propose an alternative method of mitigation for review and approval by the City Council subject to satisfying all of the following criteria:
(1) The proposed mitigation must result in permanent protection of mitigation land;
(2) The applicant must bear all costs of reviewing, approving, managing, and enforcing the mitigation;
(3) The proposed mitigation must be in substantial compliance with the requirements for mitigation land and agricultural conservation easements set forth in § 10.222.070; and
(4) The proposed mitigation must be in all respects at least as protective of agricultural land as the mitigation required by this chapter.
(L) The mitigation obligation imposed by this chapter is that set forth in § 10.222.050. Each alternative mitigation option in this section (§ 10.222.060) is wholly optional and made available solely for the applicant's convenience. Under no circumstances shall the City of Tulare require any applicant to implement any such alternative mitigation option, if applicant is willing to implement the mitigation obligations imposed in § 10.222.050.
(Ord. 20-03, passed 2-18-2020)