Chapter 15.110
TRANSFER CREDIT

Sections:

15.110.010    Purpose and scope.

15.110.020    Definitions.

15.110.030    Transfer credit generally.

15.110.040    Transfer credit valuation.

15.110.050    Transfer credit application.

15.110.060    Transfer credit agreement.

15.110.070    Transfer credit.

15.110.080    Transfer credit limitations.

15.110.090    Administration fee.

15.110.010 Purpose and scope.

In order to implement the goals of the city’s general plan, including the improvements contained in the capital improvement program, and to mitigate the impacts caused by new development in the city, a development impact fee and credit program has been established in the city. The city council has determined that a transfer credit is needed to encourage the removal of dilapidated, blighted and/or unsafe structures and to encourage the development of newer structures which comply with current fire, building and other applicable life safety codes in the city. The use of transfer credit promotes orderly city development and adequate city infrastructure relating to public services and facilities concerning water, sewer, roads and parks and is necessary to promote the health, safety and welfare of the people.

Nothing in this chapter shall be construed to relieve a property owner or developer of the duty to comply with other applicable laws related to the construction and demolition of structures in the city, including the provisions of this title and the city building code. [Ord. 09-1314 § 2, 2009.]

15.110.020 Definitions.

As used in this chapter:

“Applicant” means the owner of the subject residential property applying for transfer credit pursuant to this chapter.

“City engineer” means the city engineer or his or her designee.

“Development impact fees” means, individually and collectively, those fees imposed upon new development in the city as required by Chapters 13.08 (Water Service Connections), 13.24 (Sewer Service Charges), 15.90 (Transportation Mitigation Fee), 15.100 and 15.102 (Regional Transportation Mitigation Fees) PMC and PMC 17.32.020 (Park dedication).

“Emergency incident” means an unanticipated destructive event, including fires, floods, acts of war or natural disasters, that substantially destroys, demolishes or otherwise renders uninhabitable a structure on a subject property or requires the demolition of a structure on a subject property for health and safety reasons.

“Recipient property” means the real property in the city receiving the benefit of transfer credit from the subject property.

“Subject property” means the real property in the city upon which a legally established residential structure is to be demolished or removed by an applicant.

“Transfer credit” means the individual development impact fee credit authorized by this chapter and acquired by a successful applicant in exchange for the demolition or removal of existing residential structures in the city. [Ord. 09-1314 § 2, 2009.]

15.110.030 Transfer credit generally.

The amount of a development impact fee which would otherwise be due and payable in accordance with the provisions of the Pittsburg Municipal Code may be reduced by transfer credit provided to an applicant for the demolition of a structure in the city constituting a prior, legal established use. The availability, term, transfer and amount of transfer credit shall be in accordance with the provisions of this chapter. [Ord. 09-1314 § 2, 2009.]

15.110.040 Transfer credit valuation.

A. Transfer credit, if any, shall be given on the basis of the last legally established use of the structure on the subject property.

B. Transfer credit, if any, shall be established on an equivalent dwelling unit basis for each applicable development impact fee. Transfer credit shall not be based on the dollar amount of any development impact fees previously paid on the subject property.

C. No structure demolished or otherwise removed prior to January 1, 2004, is eligible for transfer credit pursuant to this chapter. Notwithstanding any other provision in this chapter, structures demolished or otherwise removed between January 1, 2004, and July 1, 2009, shall be eligible for transfer credit upon the execution of a transfer credit agreement as provided in PMC 15.110.060 on or before December 31, 2009. [Ord. 09-1314 § 2, 2009.]

15.110.050 Transfer credit application.

A. An applicant for transfer credit shall submit a written request to the city at least 30 calendar days prior to demolition or removal of the structure on the subject property. The written request must establish to the city’s satisfaction that the subject property is eligible for transfer credit in accordance with the provisions of this chapter. The written request shall include at a minimum a description, including both the address and assessor parcel number, of the subject property, evidence related to prior legal uses of the subject property, the proposed date of demolition or removal, and other information or documentation required by the city engineer. The written request shall be submitted in a form satisfactory to the city engineer prior to the issuance of a demolition permit for the subject property.

B. In the event an emergency incident beyond an applicant’s control prohibits the applicant from complying with the 30-day request period and prior notification requirements identified in subsection (A) of this section, the applicant may submit a written request to the city within 30 calendar days of the emergency incident seeking transfer credit for the structure on the subject property. In addition to the applicable requirements identified in subsection (A) of this section, a transfer credit application submitted pursuant to this subsection shall include evidence satisfactory to the city engineer that an emergency incident beyond the applicant’s control now necessitates the demolition on the subject property.

C. No transfer credit is available to an applicant under this chapter unless a written request is submitted as required by this section and approved in writing by the city engineer. [Ord. 09-1314 § 2, 2009.]

15.110.060 Transfer credit agreement.

A. The city may, at its sole discretion, require that an applicant enter into a transfer credit agreement related to transfer credit available for the subject property. The transfer credit agreement, if any, shall address the amount of transfer credit available for each applicable type of development impact fee and any other applicable limitations. The transfer credit agreement shall be in a form satisfactory to the city engineer.

B. A transfer credit agreement is required for any transfer credit from the subject property to a recipient property. In the event the city issues a transfer credit, the transfer credit agreement shall identify the recipient property, the proposed use of the recipient property, the development plans for the recipient property, and other information as required by the city engineer. The applicant must also present evidence satisfactory to the city that the proposed use of transfer credit is consistent with applicable laws, including the Pittsburg Municipal Code and the nexus requirements of the Mitigation Fee Act. [Ord. 09-1314 § 2, 2009.]

15.110.070 Transfer credit.

A. Transfer credit may be transferred from the subject property to a recipient property subject to city approval and the execution of a transfer credit agreement pursuant to PMC 15.110.060.

B. If the city approves a transfer credit, the applicant shall record a document on the subject property, subject to the city’s sole satisfaction, identifying the specific transfer credit removed from the subject property and providing notice to subsequent purchasers that any new development on the subject property will require the full payment of any applicable development impact fees. The transfer credit shall not be valid until the city receives a copy of the recorded document.

C. If the city approves a transfer credit, any future development on the subject property shall be subject to the full payment of all applicable development impact fees related to the proposed development. [Ord. 09-1314 § 2, 2009.]

15.110.080 Transfer credit limitations.

A. Transfer credit provided pursuant to this chapter is valid for a period of 10 years from the city’s issuance of the transfer credit. For purposes of this section, transfer credit is deemed to be issued on the day the city receives the recorded document, referenced in PMC 15.110.070(B), or the city accepts an executed transfer credit agreement, referenced in PMC 15.110.060, whichever occurs later. Transfer credit may only be used by an applicant in conjunction with the payment of all other applicable development impact fees for an approved and permitted development project.

B. No transfer credit shall be given for a structure or use established prior to the annexation of the subject property to the city.

C. Transfer credit has no cash value and the applicant is not entitled to reimbursement in the event that the applicant’s transfer credit exceeds the amount of development impact fees due on any proposed new development or expire. Each applicable development impact fee and corresponding transfer credit shall be calculated separately.

D. Transfer credit may only be used for a recipient property which is required to pay the same type of fees as the subject property.

E. Once development impact fees have been paid in conjunction with the issuance of a building permit or other approval for a replacement structure on the subject property or new development on a recipient property, the city shall not consider a request for the application of transfer credit or refund those development impact fees paid.

F. No transfer credit is valid unless approved in writing by the city engineer.

G. Transfer credit is valid for the applicant only and may not be assigned, sold or otherwise transferred to any third party. Any attempt by the applicant to assign, sell or otherwise transfer such transfer credit authorized by this chapter shall be void and unenforceable. [Ord. 09-1314 § 2, 2009.]

15.110.090 Administration fee.

The city council may, by resolution, adopt fees for the administration of the transfer credit program including specific fees related to the use of transfer credits. Alternatively, the city may enter into reimbursement agreements with each transfer credit applicant to recover the city’s administrative costs related to the transfer credit program. [Ord. 09-1314 § 2, 2009.]