§ 39-8. Construction credits.

(a)

Any person subject to an impact fee pursuant to this chapter may apply for a credit against any arterial street impact fee for any contribution, payment, bond submitted securing completion of improvements, or construction accepted and received by the city for any arterial street, including parkways and boulevards as defined herein, identified in the city's adopted major street plan. Credit provided for in this section shall be in addition to those recurring revenue credits factored into the impact fee schedule. Credit shall only be provided for arterials that are or will be the responsibility of the city. No credit shall be provided for the following:

(1)

Improvements to state roads or federal highways, with the exception of at-grade intersections of city-maintained arterials with state roads or federal highways (if the intersection improvement was a necessary part of the arterial street improvement), and with the exception of state highways and roads which are included within the definition of arterial street or arterial systems in section 39-2(d).

(2)

Dedication of rights-of-way, since land costs were not included in calculating the arterial street impact fee.

(3)

Improvements to city streets other than arterial streets, with the exception that improvements to the intersections of city arterials and city non-arterials shall be eligible if they expand the capacity of the arterial.

(4)

Any improvement that is primarily related to serving an individual development project, such as acceleration-deceleration lanes, turn lanes or traffic signals that primarily serve traffic entering or exiting the development project.

(5)

Improvements for which reimbursement or direct funding are being provided for under an approved tax increment financing plan. Notwithstanding the foregoing, any person may apply for a credit and a credit may be provided for arterial street improvements identified in the city's adopted major street plan if at the time of application for a credit under this section 39-8, an election to waive payment or reimbursement under the tax increment financing plan is filed with the tax increment financing commission of the city, with a copy provided to the city.

(6)

Improvements to arterial streets not located in one of the eight benefit districts established in this chapter.

(b)

Credits shall be calculated as follows:

(1)

No credit shall be provided under this section for contributions, payments or construction made more than 25 years prior to the effective date of this chapter, unless it can be shown by the applicant for such credit that the city has not undertaken any significant amount of reconstruction, resurfacing, installation or replacement of curb and gutter, or other renovation required to extend the life of the facility beyond normal and routine maintenance.

(2)

Credits for contributions, payments or construction received and accepted by the city prior to May 1, 2002 shall be provided if the development for which the contribution, payment or construction was made has not been completed and/or the contributions, payments or construction received were listed as improvements in Table 14 of the Duncan Associates, Arterial Street Impact Fee Study dated October 2000 for which the impact fee schedules were established. The term completed shall mean that all structures which require a certificate of occupancy within the currently approved development plan on file with the city at the time of building permit issuance have received a temporary or permanent certificate of occupancy, or have been occupied, if occupation occurs first. For developments that include structures for which a certificate of occupancy is not required, the term completed with regard to those structures shall mean that the work has reached a state of construction sufficient to qualify the work for consideration by the director of city development as being substantially complete. The current owner of the property for which such contribution, payment or construction was made as a condition of development approval shall file an application for credit by May 1, 2003; however, any person who applied for credit on or before May 1, 2003 and was denied may request that his application be reconsidered until August 1, 2006 and his application will be reconsidered consistent with the above definition of completed. If the application is not made by May 1, 2003, no credit shall be provided. The application for credit shall be submitted and reviewed as provided in this section. The amount of the credit for a contribution, payment or construction made prior to May 1, 2002 shall be the current value of the contribution, payment or construction, less the total amount of arterial street impact fees that would have been owed for the building permits already issued for the project had those permits been subject to the maximum fees specified in subsection 39-4(b). The value of any construction shall not include costs for improvements that are in excess of city standards, unless the city specifically required the higher standard construction. The current value shall be determined using the engineering news-record construction cost index or an equivalent index if such index is discontinued.

(3)

Any contribution, payment or construction received and accepted by the city on or after the effective date of this chapter shall be credited in an amount equal to 100 percent of the contribution or payment or the estimated cost of the construction for required arterial street improvement that expands the capacity of the city's arterial system. The estimated cost shall be based on the lowest responsive bid by a qualified bidder, which bid is approved by the impact fee administrator; or, if no bid is available, the estimated cost certified by a licensed engineer and approved by the impact fee administrator. In the event that the impact fee schedule is revised to account for cost inflation prior to the use of the credits, the credits shall be adjusted to current value to the time of the fee schedule update based on the engineering news record construction cost index, or an equivalent index if such index is discontinued.

(4)

An impact fee credit may be applied against arterial street impact fees that would otherwise be due for building permits issued anywhere within the benefit district of the development for which the arterial improvement or contribution was required as a condition of development approval. The city shall maintain an accounting of the amount of the credit held by an impact fee credit holder and shall reduce the amount of the credit as authorized by the impact fee credit holder. After the credit balance is exhausted, no additional credits shall be applied to subsequent building permits.

(5)

Impact fee credits held by an impact fee credit holder may be transferred or sold to be used for another development within the same benefit district. No such credits may be transferred or sold by the impact fee credit holder until the impact fee administrator has certified the amount of the credits held by the impact fee credit holder. Anyone attempting to use impact fee credits shall be responsible for proving ownership of the credits to the satisfaction of the impact fee administrator. In the event that the impact fee schedule is revised to account for cost inflation prior to the use of the credits, the credits shall be adjusted to current value to the time of the fee schedule update based on the engineering news-record construction cost index, or an equivalent index if such index is discontinued.

(c)

The determination of any allowable credit shall be undertaken through the submittal of an application for credit agreement, which shall be submitted to the impact fee administrator. The application for credit agreement shall include the following information:

(1)

If the proposed application for credit agreement involves construction:

a.

The proposed plan of the specific construction prepared and certified by a duly qualified and licensed engineer or contractor; and

b.

The lowest responsive bid by a qualified bidder, or, if no bid is available, projected costs for the suggested capital improvement, which shall be based on local information for similar improvements, along with the construction timetable for the completion thereof. Such estimated costs shall include the cost of construction or reconstruction; the cost of plans and specifications; the costs of professional services; and all other expenses necessary or incident to such construction or reconstruction.

(2)

If the proposed application for credit agreement involves a credit for any contribution or payment:

a.

A copy of the document in which the contribution or payment was agreed;

b.

If payment has been made, proof of payment; or

c.

If payment has not been made, the proposed method of payment.

(d)

Upon receipt of the proposed application for credit agreement, the impact fee administrator shall determine if the application is complete. If it is determined that the application is not complete, the impact fee administrator shall send a written statement by certified mail, return receipt requested, to the applicant at the address for the applicant set forth in the application, outlining the deficiencies. The impact fee administrator shall not take further action on the proposed application until all deficiencies have been corrected or otherwise settled. Failure of the applicant to receive the written statement shall not constitute a failure by the city to send said written statement or a failure of notice.

(e)

Once the impact fee administrator determines that the proposed application is complete, the impact fee administrator shall review it within one month. The impact fee administrator shall determine the amount of credit due based on the information submitted, or, if it determines that such information is inaccurate or unreliable, then on alternative engineering or construction costs acceptable to the city. The value of the credits may be determined using maximum unit costs based on current low bid results received on other projects through the city's public bidding process.

(f)

If the application is approved by the impact fee administrator, a credit agreement that specifically outlines the contribution, payment or construction, the time by which it was or shall be completed or paid and any extensions of time therefore and the dollar credit that the applicant shall receive for the contribution, payment or construction shall be prepared. The credit agreement shall not become effective until the city accepts the facilities or receives the contribution or payment or receives a bond securing completion of the improvements to the arterial street. Any credit may be transferred or sold within the same benefit district pursuant to subsection 39-8(b)(5).

(g)

After determination of the amount of the credit, an applicant may appeal such determination to the board of zoning adjustment of the city, pursuant to section 39-9. The applicant must file a notice of appeal with the impact fee administrator within ten working days following the determination of the credit.

(Ord. No. 011258, § 1, 9-27-01; Ord. No. 050865, § A, 7-28-05; Ord. No. 051437, § 1, 2-9-06)