Chapter 12.44
BENEFIT DISTRICTS AND PUBLIC IMPROVEMENT REIMBURSEMENT AGREEMENTS1
Sections:
12.44.030 Public improvement reimbursement agreement – Procedure.
12.44.040 Public improvement reimbursement agreement – Contents.
12.44.050 Payment by benefited property owner.
12.44.010 Purpose.
A. As a condition of approval of the grant of a land use entitlement for the development of property, a developer may be required to install public improvements that provide a benefit to the general public and to other specific properties in the vicinity of the improvements. This situation may occur when one developer elects to seek approval and begin development sooner than another. In connection with such a development, governmental entities such as the city, the redevelopment agency or others may contribute to the cost of additional or oversized improvements.
B. The purpose of this chapter is to establish a mechanism whereby a property owner who benefits by, but does not contribute to, certain public improvements will, at the time the benefited property owner develops property, reimburse the developer or government agency that has installed improvements. [Ord. 1169 § 1, 2000.]
12.44.020 Definitions.
In this chapter:
A. “Benefit district” means the geographical area which benefits by a privately or governmentally financed public improvement.
B. “Benefited property” means a property within a benefit district for which no contribution to the cost of the public improvement was made at the time of its construction. Benefited property can include property owned by a public agency.
C. “Financing party” means a property owner, developer or governmental entity that installs or pays for the installation of public improvements within or of benefit to a benefit district.
D. “Land use entitlement” may include any of the following as specified in a reimbursement agreement: a permit or approval granted by the city for the development of property, a use permit, final subdivision map (but not a tentative subdivision map unless accompanied by another entitlement described herein), a land use permit, a development agreement, a grading permit, and an architectural or design review approval. [Ord. 1169 § 1, 2000.]
12.44.030 Public improvement reimbursement agreement – Procedure.
A. General. If a property owner is required to construct public improvements as a condition of approval of a proposed development and the required public improvements have the capacity and capability of serving and are designed to serve additional properties not within the proposed development and to directly benefit other properties in the vicinity, the property owner may apply to the city for a reimbursement agreement as provided in this chapter.
B. Application. A person requesting a reimbursement agreement shall submit an application on a form provided by the city and shall provide information as required by the city engineer, including the area of the proposed benefit district. The applicant shall also submit a proposed form of agreement.
C. Governmental Contributions and Reimbursement. Notwithstanding any other provision hereof, if the city of Pittsburg, the redevelopment agency of the city or any other governmental agency contributes to the cost of an improvement for which a benefit district is established pursuant to this chapter, such contributing entity may also request a reimbursement agreement as a financing party.
D. Notice and Hearing. The city council shall hold a public hearing on the application. At least 10 days before the hearing the city shall notify each affected property owner in writing, advising of the hearing and providing a copy of the proposed reimbursement agreement and staff report which will be submitted to the council. In this subsection, “affected property owner” means (1) the record owner (as shown on the latest county assessor’s secured real property assessment roll) of each property within the proposed benefit district, and (2) the financing party.
1. An affected property owner may file written or oral comments or objections to the application before or at the hearing.
2. No property may be added to a benefit district unless the notice is sent to the affected property owner. Failure to receive the notice required by this section shall not invalidate the reimbursement agreement.
E. City Council Action – Findings. After the public hearing, the city council may by resolution grant, grant with modification or deny approval of a reimbursement agreement. Before granting approval, the city council shall make each of these findings:
1. The improvement for which reimbursement is sought is a public improvement which will, upon completion be accepted by the city;
2. The public improvement has the capacity and capability of serving and is designed to serve additional properties not within the proposed development due to the supplemental size, capacity, number or length of the improvement;
3. The proposed benefit district represents a geographical area of property which will benefit directly and substantially by the public improvement; and
4. The method of determining contribution and the amount of contribution is fair and reasonable to both the financing party and the benefited property owner and fairly distributes the charge among all subject parcels in proportion to the estimated benefit each will receive from the proposed improvement.
The findings of the city council shall be deemed to be legislative findings and shall be final and conclusive.
F. Timing. A financing party may not request and the city council may not approve a public improvement reimbursement agreement after the date construction begins on a public improvement. For purposes of this section, the date construction begins is the later of: (1) the first date on which physical construction of the improvement is commenced, or (2) the first date that privately owned and constructed improvements are dedicated to or acquired by the city. Design work, soil testing, environmental study or other similar activity shall not be considered construction under this section.
G. Recordation. The city shall have an approved public improvement reimbursement agreement, including a list of the benefited properties, recorded in the office of the county recorder.
H. Limitation of Actions. The validity of a benefit district, reimbursement agreement or any of the findings or actions of the city council under this chapter shall not be contested in any action or proceeding unless the action or proceeding is commenced within 30 days after the approval of the reimbursement agreement pursuant to subsection (E) of this section. Any appeal from a final judgment in such an action or proceeding shall be perfected within 30 days after the entry of judgment. [Ord. 1169 § 1, 2000.]
12.44.040 Public improvement reimbursement agreement – Contents.
A public improvement reimbursement agreement shall include, but is not limited to, the following provisions:
A. A statement of the total construction cost, the applicant’s equitable share of the cost, and the amount of the total cost eligible for reimbursement;
B. A map approved by the city engineer showing each property included within the benefit district and a list of each property by county assessor parcel number;
C. The method of spreading the eligible reimbursement cost to the charges under the agreement to properties within the benefit district and the rate of interest (not to exceed 12 percent), to be added to the initial charges during the period of the agreement; provided, however, that the total accumulated interest payable at the time of reimbursement under the reimbursement agreement shall not exceed an amount equal to 200 percent of the initial charges;
D. A provision indicating who the financing party is for the purpose of receiving reimbursement, i.e., whether the developer or the property owner of record at the time the reimbursement is made. (This may depend upon whether the public improvement is financed by the developer or by individual property owners through an assessment district);
E. The date on which the reimbursement agreement takes effect and benefited property owners begin contributions;
F. A statement that no reimbursement charges collected by the city may be distributed to a financing party until the public improvement is completed and accepted by the city;
G. A list of the administrative costs, if any, to be charged by the city to administer the agreement. These costs may be shown as a percentage of the charges collected by the city;
H. A provision that reimbursement to the financing party shall be paid only from charges collected by the city trader the agreement from the benefited properties listed in the agreement as such properties receive a land use entitlement. Reimbursement to the financing party shall be paid only from such charges collected within 25 years from the date the agreement becomes effective, unless a different time period is approved by the city council; and
I. A provision that the city is not liable to the financing party for failure of the city to collect a reimbursement charge due from a property or because of legal inability of the city to collect the charge from a property. [Ord. 1169 § 1, 2000.]
12.44.050 Payment by benefited property owner.
A. A benefited property owner shall pay to the city the applicable contribution charge set forth in the agreement whenever that person obtains a land use entitlement. The charge is payable at the time the entitlement is granted.
B. The contribution charge applies only: (1) after the reimbursement agreement is recorded; (2) during a period a reimbursement agreement is in effect; and (3) if the city engineer determines that the land use entitlement involves the scope and type of development contemplated by the agreement. Payment of the contribution charge is not required as a condition of issuing a land use entitlement for the alteration or enlargement of an existing building or structure (or the erection of an accessory building or structure) if the work:
1. Is on the same parcel of land; and
2. Does not create an additional dwelling unit; and
3. Will not change the potential for traffic generation; and
4. In any three-year period will not exceed one-half the value of all existing improvements on that parcel of land.
C. No property may be assessed a double fee under this chapter.
D. A benefitted property owner has no obligation to pay a contribution charge if the owner does not develop the property during the effective period of the reimbursement agreement. [Ord. 1169 § 1, 2000.]
12.44.060 Implementation.
The city council may adopt rules and regulations it considers necessary to implement this chapter. [Ord. 1169 § 1, 2000.]
Prior legislation: Ord. 981.