15.16.120 Credits.
(1) The City will grant to an applicant a credit against any improvement fee assessed when the applicant, or the developer from whom the applicant purchased a lot, constructs or dedicates a qualified public improvement as part of the development. The initial determination on all credit requests shall be a decision by the City Engineer, and the applicant bears the burden of evidence and persuasion in establishing entitlement to a systems development charge credit and the amount of credit in accordance with the requirements of this section.
(2) To obtain a systems development charge credit, the applicant must make the request, in writing, prior to the City’s issuance of the first building permit for the development in question. In the request, the applicant must state the following:
(a) Identify the improvement for which the credit is sought;
(b) Explain how the improvement is a qualified public improvement; and
(c) Document, with credible evidence, the value of the improvement for which credit is sought.
(3) The systems development charge credit shall be an amount equal to the fair market value of the improvement. Fair market value shall be determined by the City Engineer based on credible evidence of the following:
(a) For dedicated lands, value shall be based upon a written appraisal of fair market value by a qualified professional appraiser based upon comparable sales of similar property between unrelated parties in an arms-length transaction;
(b) For a qualified public improvement yet to be constructed, value shall be based upon the anticipated cost of construction. Any such cost estimates shall be certified by a registered professional architect or engineer or based on a fixed-price bid from a contractor ready and able to construct the improvement(s) for which the systems development charge credit is sought;
(c) For a qualified public improvement already constructed, value shall be based on the actual cost of construction as verified by receipts submitted by the applicant; or
(d) For a qualified public improvement located on, or contiguous to, the site of the development, only the over-capacity portion as described in the definition of qualified public improvement is eligible for a systems development charge credit. There is a rebuttable presumption that the over-capacity portion of such a qualified public improvement is limited to the portion constructed larger, or of greater capacity, than the City's minimum standard facility capacity or size needed to serve the particular development.
(4) Form of Credit and Limitation on Use. When given, systems development charge credits will be for a particular dollar value as a credit against a systems development charge assessed on a development. Credits may only be used to defray or pay the systems development charge for the particular capital improvement system to which the qualified public improvement related; e.g., credit from a qualified public improvement for sewer may only be used to pay or defray a sewer systems development charge.
(5) Systems Development Charge Credit Carry-Forward. Where the amount of a systems development charge credit approved under this section exceeds the amount of a systems development charge assessed on a development for a particular capital improvement system, the excess credit may be carried forward pursuant to the following rules:
(a) A systems development charge credit carry-forward will be issued by the City Engineer for a particular dollar value to the developer who earned the systems development charge credit and may be used by the developer to satisfy systems development charge requirements for future phases of the original development. Systems development charge credit carry-forwards are not negotiable or transferable to any party other than the one to whom they are issued or to any other developments within the City.
(b) Systems development charge credit carry-forwards are void and of no value if not redeemed with the City for payment of a systems development charge of the same type of capital improvement system for future phases of the original development for which the credit was issued within 10 years of the date of issuance.
(6) Systems Development Charge Credit Deadline. For all other systems development charge credits not carried forward, the applicant must formally request the systems development charge credit to the City Engineer no later than 180 days after the later of the following two conditions occurs:
(a) Acceptance of the applicable improvement by the City; and
(b) The applicant paying sufficient systems development charges for the development to cover the approved SDC credit. (Ord. 164, passed 10-8-2019)