In-lieu fee credits for construction of improvements may be approved by the City under the following circumstances or as otherwise applied:
a. A developer that has been required by the City to construct any facilities or improvements (or a portion thereof) described in Section 3-8.2 as a condition of approval of a development permit may request an in-lieu credit of the specific development impact fee(s) involved for the same development. Upon request, an in-lieu credit of fees shall be granted for facilities or improvements that mitigate all or a portion of the need therefor that is attributable to and reasonably related to the given development.
b. Only costs proportional to the amount of the improvement or facility that mitigates the need therefor attributable to and reasonably related to the given development shall be eligible for in-lieu credit, and then only against the specific fee(s) involved to which the facility or improvement relates.
c. Fees required under this article shall be reduced by the actual construction costs of the facilities or improvements that relate to said fees, as demonstrated by the applicant and reviewed and approved by the City. If the cost of the facilities or improvements is greater than the required relevant fees, this article does not create an obligation on the City to pay the applicant the excess amount.
d. An amount of in-lieu credit that is greater than the specific fee(s) required under this article may be reserved and credited toward the fee applicable to any subsequent phase of the same development, if determined appropriate by the City. The City may set a time limit for reservation of the credit.
e. Credits shall be calculated by the City in accordance with the City’s fee schedule set forth in the resolution to be adopted pursuant to Section 3-8.3 as follows:
1. Developer Construction of Facilities Exceeding Needs Related to Development Project. Whenever an applicant is required, as a condition of approval of a development permit, to construct any facility or improvement (or a portion thereof) described in the resolution adopted pursuant to Section 3-8.3 which facility or improvement is determined by the City to exceed the need therefor attributable to and reasonably related to the given development project, a reimbursement agreement with the applicant and a credit against the specific relevant fee which would otherwise be charged pursuant to this article on the development project shall be offered. The credit shall be applied with respect to that portion of the improvement or facility that is attributable to and reasonably related to the need therefor caused by the development. The amount to be reimbursed shall be that portion of the cost of the improvement or facility that exceeds the need therefor attributable to and reasonably related to the given development. The reimbursement agreement shall contain terms and conditions mutually agreeable to the developer and the City, and shall be approved by the City Attorney.
2. Site-Related Improvements. Credit shall not be given for site-related improvements, including, but not limited to, traffic signals, right-of-way dedications, or providing paved access to the property, which are specifically required by the project in order to serve it and do not constitute facilities or improvements specified in the resolution referenced in Section 3-8.3.
3. Determination of Credit. The developer seeking credit and/or reimbursement for construction of improvements or facilities, or dedication of land or rights-of-way, shall submit such documentation, including without limitation engineering drawings, specifications, and construction cost estimates, and utilize such methods as may be appropriate and acceptable to the City Administrator to support the request for credit or reimbursement. The City Administrator shall determine the credit for construction of improvements or facilities based upon either these cost estimates or upon alternative engineering criteria and construction cost estimates if he or she determines that such estimates submitted by the developer are either unreliable or inaccurate. The City Administrator shall determine whether facilities or improvements are eligible for credit or reimbursement.
f. Time for Making Claim for Credit. Any claim for credit must be made no later than the application for a building permit. Any claim not so made shall be deemed waived.
g. Transferability of Credit – Council Approval. Credits shall not be transferable from one project or development to another without the approval of the City Council.
h. Appeal of Determination of City. Determinations made by the City pursuant to the provisions of this section may be appealed to the City Council by filing a written appeal (setting forth in detail the factual basis therefor) with the City Clerk, together with a fee established by resolution of the City Council, within ten (10) calendar days of the determination of the City. The appeal shall be considered by the City Council at a public hearing to be held, noticed and conducted within sixty (60) days after the filing of the appeal. The decision of the City Council on the appeal shall be final. (Ord. #247-2020, S2 (Exh. A))