A. Notwithstanding the requirements of Section 17.30.040, the payment of the required parking in-lieu fees may be made in ten (10) equal installments as follows:
1. The first ten (10) percent installment shall be due at the time a building permit or certificate of occupancy is issued and/or intensification or initiation of use that causes the fee to be assessed.
2. The remaining ninety (90) percent shall be paid in twenty (20) percent installments annually on the anniversary of the first installment. The interest rate shall be a fixed rate computed initially on the basis of an interest rate equal to the most recently calculated average annual interest received on all of the city's investment funds plus two (2) percent.
B. Any portion of the in-lieu fee that is not paid prior to the issuance of a building permit, certificate of occupancy and/or intensification or initiation of use that causes the fee to be assessed, and alternatively employs the payment method outlined in subsection A of this section, shall be adequately secured. Such security shall be subject to approval by the city manager or his/her designee and shall be one of the following types:
1. A bond or bonds by one or more duly authorized corporate sureties; or
2. A deposit, either with the city or a responsible escrow agent or trust company, at the option of the city, or money or negotiable bonds of the kind approved for securing deposits of public moneys; or
3. An instrument of credit from one or more financial institutions subject to regulation by the state or federal government and pledging that the funds necessary to carry out the act or agreement are on deposit and guaranteed for payment, or a letter of credit by such a financial institution; or
4. A note secured by a deed of trust in real property. If the deed of trust is subordinate to other deeds of trust against the property, the total encumbrances against the property, including the proposed subordinate deed of trust, shall not exceed eighty-five (85) percent of the appraised value of the
property. The applicant requesting such type of security shall obtain, at its expense, an appraisal of the property by a certified real estate appraiser.
5. Rolling the balance due, including interest, to the property tax roll. This method is only available to the owner of the property, or in the case of a leasehold or rental interest, with the property owner's consent. Owner shall work with the Finance Department of the city and execute the documents necessary to implement this alternative. The placement on the property tax roll may cause the second installment payment to occur earlier or later than one year after the initial payment depending on the timing of the placement on the property tax roll. The collection on the property tax roll shall not preclude the earlier payment of the balance due.
6. Notwithstanding the requirement for security as prescribed in this subsection, the city manager or his/her designee may allow the owner-applicant to make the installment payments on the anniversary of the first installment without the requirement of security described herein subject to a signed agreement that provides that should any installment payment become thirty (30) or more days delinquent, that installment and accrued interest shall be placed on the property tax roll. Any remaining installments due and owing shall continue to become due on the anniversary of the initial installment and are subject to being rolled to the tax role if not paid within thirty (30) days of when due. The collection on the property tax roll shall not preclude the earlier payment of the balance due.
C. The ten (10) equal installment plan shall be contingent upon proper security and subject to the execution of a covenant accepting the terms of the approval, in a form approved by the city attorney, which covenant shall run with the land and be recorded with the county recorder by the city clerk. (Ord. 2017-01 (part), 2017: Ord. 2008-06 § 1, 2008: Ord. 2002-01 § 2, 2001)