Chapter 13.16
REIMBURSEMENT OF
DEVELOPMENT COSTS FOR PUBLIC IMPROVEMENTS
Sections:
13.16.050 Advance financed reimbursement.
13.16.010 Purpose.
The purpose of this chapter is to provide the means to allow reimbursement of off-site and/or intervening parcel improvement costs to developments which have been required to construct certain public improvements, i.e., streets, curbs, gutters, sewer, water, and storm sewer systems. [Ord. 03-03B, 2003.]
13.16.020 Definitions.
The following terms and definitions for the purposes of this chapter mean as follows:
“Advance financing” means payment by a developer for installation of one or more public improvements installed pursuant to this chapter, which intervening property owners may utilize upon reimbursing a proportional share of the cost of such public improvement to the developer.
“Advance financing agreement” means the agreement between a developer and the city which is authorized by the city council and executed by the mayor, providing for the reimbursement of costs for advance financed public improvements.
“Advance financing reimbursement” means the payment made by an intervening property owner to the city for utilization of an advance financed public improvement.
“Advance financing resolution” means a resolution adopted by the city council which designates a public improvement as an advance financed public improvement and which contains provisions for an advanced financing agreement between the developer and the city.
“Developer” means the city, an individual, a partnership, a joint venture, a corporation, or any other entity, without limitation, who bears the expense of construction, purchase or installation of an advance financial public improvement.
“Development” means the real property owned by the developer.
“Intervening property” means the real property contiguous to or served by an advance financed public improvement between the development and existing public facilities.
“Owner” means the fee holder of record of the legal title to an intervening property or the purchaser under a recorded land sales contract.
“Public improvement” means any construction, reconstruction, or upgrading of a water, sanitary sewer, or storm sewer line, public street (including bicycle lanes) or sidewalk or undergrounding of public utilities.
“Utilize” means to apply for a building permit which will use or increase the use of an advance financed public improvement, to connect to an advance financed public improvement, or to otherwise increase the use of an advance financed public improvement. “Increase the use” means:
1. For sanitary sewer or storm sewer lines: to make a physical change requiring a building or development permit on the intervening property which increases the volume discharged into the line.
2. For water lines: to make a physical change requiring a building or development permit on the intervening property which increases the amount of water used.
3. For public streets: to make a physical change requiring a building or development permit on the intervening property which increases the trips on the street or creates a new entrance onto the street. [Ord. 03-03B § 1, 2003.]
13.16.030 Application.
A. An application shall be required from a developer for city council approval of advance financing of public improvements. The application must be submitted before installation of the advance financed public improvement and no later than submission of the plans for the public improvement to be installed. The application shall be accompanied by a fee established by resolution sufficient to cover the cost of administrative review and notice pursuant to this chapter.
B. The application shall include the following:
1. A description of the location, type, size and cost of the public improvement to be advance financed.
2. A map showing intervening properties, both front footage, and total area computation of intervening properties, the development, and a list of intervening property owners with current mailing addresses.
3. The estimated date of completed installation.
4. The estimated cost of the public improvement.
5. The estimated reimbursement amount from each intervening property.
6. An acknowledgment by the developer that the application will be automatically withdrawn if the public improvements are tendered to and accepted by the city before the advance financing resolution is adopted and the advance financing agreement is entered into. [Ord. 03-03B § 2, 2003.]
13.16.040 Procedure.
A. Report. Upon receiving the application, the city engineer shall review the advance financing proposal and submit a report to the city council for its review and discussion at a public hearing. The public hearing shall be scheduled no more than 90 days from the date a completed application with all required information is received. The hearing shall not be held and the application shall be deemed withdrawn if the public improvements are tendered to and completed by the city before the hearing.
The report shall include a map showing the location and area of intervening properties and of the development. The report shall also include the city engineer’s analysis of whether the estimated cost of the public improvements is reasonable, and the estimated advance financed reimbursement due from each intervening property owner.
B. Public Hearing. Any person has the right to comment on the proposed advance financed public improvement and proposed reimbursement at the informational public hearing. Because an advance financed public improvement does not result in an assessment or lien, the public hearing is for informational purposes only and is not subject to mandatory termination because of remonstrances. The city council has the sole discretion after the public hearing to decide whether an advance financing resolution shall be adopted. The public hearing may not be continued past the date of acceptance by the city of the advance financed improvement.
C. Notice. Notice of the application will be provided to the applicant and all intervening property owners at least 10 days before the hearing. Notice is effective when mailed. Failure of the developer or any intervening property owner to be sent or receive notice shall not invalidate or otherwise affect any advance financing resolution or the city council’s action.
D. Advance Financing Resolutions and Agreements. After the public hearing pursuant to subsection B of this section, if the city council desires to proceed with an advance financed public improvement, it shall pass an advance financing resolution. The resolution shall designate the advance financed improvements and provide for advance financed reimbursement by intervening property owners pursuant to this chapter. The resolution shall state the methodology for determining the amount of advance financed reimbursements. The city shall adopt a methodology that requires payment in proportion to geographic area, taking into account the geographic area of all intervening properties and the development, unless the geographic area methodology is inequitable. City owned properties and land unlikely to be developed, i.e., outside the city’s jurisdiction at the time of the construction of the improvements, shall be exempt from any reimbursement fees for advance financed public improvements. If the final cost of the advance financed improvements is known at the time of the resolution, the resolution shall set forth those costs. The resolution shall acknowledge any payment by an intervening property owner or agreement between intervening property owner and development that the city has notice of at the time the resolution is adopted. When the developer is other than the city, the advance financing resolution shall instruct the mayor to enter into an agreement with the developer pertaining to the advance financed public improvements. The agreement shall be signed by both parties before the city accepts the advance financed improvements. The agreement shall contain the following provisions:
1. The advance financed public improvements shall meet all applicable city standards.
2. The total advance financed reimbursement shall not exceed the actual cost of public improvements.
3. The developer shall guarantee the advance financed public improvement for a period of 18 months from the date of acceptance by the city.
4. The developer shall indemnify and hold harmless the city from any and all losses, claims, damage, judgments or other costs or expense associated with the advance financed resolution and agreement.
5. The developer shall acknowledge that the city is not obligated to collect the advance financed reimbursement from intervening property owners.
6. Other provisions as the city council determines necessary and proper to carry out the provisions of this chapter.
E. Notice of Adoption of Resolution. The city shall notify all intervening property owners and the developer of the adoption of an advance financing resolution. The notice shall be sent by first class mail and shall include a copy of the resolution, the date it was adopted, and a short explanation of that ordinance. The city shall record a copy of the resolution in the county clerk deed records for each intervening property.
F. Approval of Cost Amount. If the full costs of the advance financed improvements are not known when the advance financing resolution is adopted, the developer shall provide the city and all intervening property owners notice of the full amount of the costs within 10 business days of completion of the advanced financed public improvements. Any noticed recipient may object to the cost by filing a written objection within 14 days with the city manager. If no objection to the costs is received within 14 days of the notice, the costs as stated in the notice shall not be subject to challenge unless modified by the city council. If written objections are received, the amount of actual costs shall be determined by the city council after a public hearing. [Ord. 03-03B § 3, 2003.]
13.16.050 Advance financed reimbursement.
A. Advance Financed Reimbursement on Intervening Properties. An advance financed reimbursement fee shall be imposed on all intervening properties, at such time as an intervening property owner or agent, employee or independent contractor or the intervening property owner, utilizes the advance financed improvements, provided, the utilization is within 10 years of the approval date of the advanced financing agreement.
B. Reimbursement Rate. The intervening property owner shall be liable for advance financing reimbursement calculated as follows:
The intervening property’s proportionate share, as determined in the advance financing resolution, of the actual cost of the advance financed public improvement, increased by the current Prime Rate annual simple interest upon the anniversary of execution of the agreement.
C. Collection. The advance financed reimbursement is immediately due and payable to the city by intervening property owners upon utilization of an advance financed public improvement. If connection is made or construction commenced without required city permits, then the advance financed reimbursement is immediately due and payable upon the earliest date that any such permit was required. No city permit of any kind for the intervening property shall be issued until the advance financed reimbursement is paid in full. As an alternative to payment through the city, an intervening property owner may pay the developer directly; provided, that both the intervening property owner and developer report the payment to the city.
D. Public Hearing for Unpaid Advance Financed Reimbursement. Whenever the full advance financed reimbursement has not been paid and collected for any reason after it is due, the city engineer shall report to the city council the amount of the uncollected reimbursement, the legal description of the intervening property on which the reimbursement is due, the date upon which the reimbursement was due and the intervening property owner’s name or names. The city council shall then, by motion, set a public hearing date and direct the city engineer to give notice of that hearing to each of the identified intervening property owners, together with a copy of the city engineer’s report concerning the unpaid advance financed reimbursement. Such notice may be either by certified mail or personal service. At the public hearing, the city council may accept, reject or modify the city engineer’s report. If the city council accepts or rejects the city engineer’s report and determines that the advance financed reimbursement is due but has not been paid for whatever reason, the city may take any action including all legal or equitable means necessary to collect the unpaid amount. An unpaid advance financing reimbursement shall prohibit any issuance of permits by the city for the intervening property. [Ord. 03-03B § 4, 2003.]
13.16.060 Payment.
A. Payment to Developer. Developers shall receive all advance financed reimbursement collected by the city for their advance financed public improvements. Such reimbursement shall be delivered to the developer for a period of 10 years from and after the date the advance financing agreement has been executed. Such payments shall be made by the city within 90 days of receipt of the reimbursements.
B. Recording. The advance financing resolution and agreement shall be recorded by the city in the deed records of Jefferson County. Failure to record the resolution and agreement shall not affect the legality of an advance financing resolution or agreement.
C. Public Improvements. Public improvements installed pursuant to advance financing agreements shall become and remain the sole property of the city.
D. Multiple Public Improvements. More than one public improvement may be the subject of an advance financing agreement or resolution.
E. Other Fees and Charges. The advance financing reimbursement fee is in lieu of a local improvement district charge for the improvements installed pursuant to the reimbursement district agreement. The reimbursement fee is not intended to replace or limit any other fee or charge collected by the city. [Ord. 03-03B § 5, 2003.]