(A) Credits To Be Issued: When a developer, or their predecessor in title or interest, has constructed system improvements of the same category as a city capital improvements element, or contributed or dedicated land or money towards the completion of system improvements of the same category as a city capital improvements element, and the city has accepted such construction, contribution, or dedication, the city shall issue a credit against the development impact fees otherwise due for the same city capital improvements element in connection with the proposed development, as set forth in this section. Credit shall be issued regardless of whether the contribution or dedication to system improvements was required by the city as a condition of development approval or was offered by the developer and accepted by the city in writing, and regardless of whether the contribution or dedication was contributed by the developer or by a local improvement district controlled by the developer.
(B) Limitations: Credits against development impact fees shall not be given for: 1) project improvements, or 2) any construction, contribution, or dedication not agreed to in writing by the city prior to commencement of the construction, contribution, or dedication. Credits issued for one city capital improvements element may not be used to reduce development impact fees due for a different capital improvements element. No credits shall be issued for system improvements contributed or dedicated prior to the effective date hereof.
(C) Valuation Of Credit At Present Value:
1. Land: Credit for qualifying land dedications shall, at the fee payer’s option, be valued at the present value of: a) one hundred percent (100%) of the most recent assessed value for such land as shown in the records of the county assessor, or b) that fair market value established by a private appraiser acceptable to the city in an appraisal paid for by the fee payer. In the event that city and the fee payer cannot agree upon an appraiser, either may petition the district court for appointment of an appraiser.
2. Improvements: Credit for qualifying acquisition or construction of system improvements shall be valued by the city at the present value of such improvements based on complete engineering drawings, specifications, and construction cost estimates submitted by the fee payer to the city. The city shall determine the amount of credit due based on the information submitted, or, if it determines that such information is inaccurate or unreliable, then on alternative engineering or construction costs acceptable to the city as a more accurate measure of the value of the offered system improvements to the city.
(D) When Credits Become Effective:
1. Approved credits for land dedications shall become effective when the land has been conveyed to the city in a form acceptable to the city at no cost to the city, and has been accepted by the city. When such conditions have been met, the city shall note that fact in its records. Upon request of the fee payer, the city shall issue a letter stating the amount of credit available.
2. Approved credits for acquisition or construction of system improvements shall generally become effective when: a) all required construction has been completed and has been accepted by the city, b) a suitable maintenance and warranty bond has been received and approved by the city, and c) all design, construction, inspection, testing, bonding, and acceptance procedures have been completed in compliance with all applicable requirements of the city and the state of Idaho. Approved credits for the construction of system improvements may become effective at an earlier date if the fee payer posts security in the form of a performance bond, irrevocable letter of credit, or escrow agreement and the amount and terms of such security are accepted by the development impact fee administrator or a designee. At a minimum, such security must be in the amount of the approved credit or an amount determined to be adequate to allow the city to construct the system improvements for which the credit was given, whichever is higher. When such conditions have been met, the city shall note that fact in its records. Upon request of the fee payer, the city shall issue a letter stating the amount of credit available.
(E) Application Procedures:
1. In order to obtain a credit against development impact fees otherwise due, a fee payer shall submit a written offer to dedicate to the development impact fee administrator or a designee for specific parcels of qualifying land or a written offer to contribute or construct specific system improvements to the city capital facilities in accordance with all applicable state or city design and construction standards, and shall specifically request a credit against the type of development impact fees for which the land dedication or system improvement is offered. No request for a credit against development impact fees shall be accepted unless a written offer to dedicate, contribute, or construct has previously been approved in writing by the city.
2. After receipt of the request for credit, the development impact fee administrator or a designee shall review the request and determine whether the land or system improvements offered for credit will reduce the costs of providing city capital facilities by an amount at least equal to the value of the credit. If the development impact fee administrator or a designee determines that the offered credit satisfies that criterion, then the credit shall be issued. The city shall complete its review and determination of an application for credit within thirty (30) days after receipt of an application for credit.
(F) Transferability Of Credit: A credit may only be transferred by the fee payer that has received the credit to a successor in interest pursuant to the terms of this chapter. The credit may be used only to offset development impact fees for the same city capital improvements element for which the credit was issued. Credits shall be transferred by any written instrument clearly identifying which credits issued under this chapter are being transferred, the dollar amount of the credit being transferred, and the city capital improvements element for which the credit was issued. The instrument of transfer shall be signed by both the transferor and transferee, and a copy of the document shall be delivered to the development impact fee administrator or a designee for documentation of the change in ownership before it shall become effective.
(G) Accounting Of Credits: Each time a request to use approved credits is presented to the city, the city shall reduce the amount of the development impact fees for the type of fee for which the credit is provided, and shall note in the city’s records the amount of credit remaining, if any. Upon request of the fee payer or successor in interest to whom the credit was issued, the city shall issue a letter stating the amount of credit remaining.
(H) Credits Exceeding Fee Amounts Due: If the credit due to a fee payer pursuant to subsections A through G of this section exceeds the development impact fee that would otherwise be due from the fee payer pursuant to section 11-1-5 of this chapter (whether calculated through the fee table in section 11-1-5 of this chapter or through an independent assessment), the fee payer may choose to receive such credit in the form of either: 1) a credit against future development impact fees due for the same capital improvements element, or 2) a reimbursement from development impact fees paid by future development that impacts the system improvements contributed or dedicated by the fee payer. Unless otherwise stated in an agreement with the fee payer, the city shall be under no obligation to use any city funds, other than development impact fees paid by other development for the same city capital improvements element, to reimburse the fee payer for any credit in excess of development impact fees due.
(I) Written Agreement Required: If credit or reimbursement is due to the fee payer pursuant to this section, the city shall enter into a written agreement with the fee payer, negotiated in good faith, prior to the contribution, dedication, or funding of the system improvements giving rise to the credit. The agreement shall provide for the amount of credit or the amount, time and form of reimbursement, and shall have a term not exceeding ten (10) years. (Ord. 2021-017, 10-11-2021)
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