13.35.100 Credits.
A. When a development occurs that would be subject to a system development charge, and SDCs have been paid for preexisting uses located on the property, the proposed development may be eligible for a credit. The system development charge for the existing use, if applicable, shall be calculated and if it is less than the system development charge for the new use that will result from the development, the difference between the system development charge for the existing use and the system development charge for the proposed use shall be the system development charge. If the change in the use results in the system development charge for the proposed use being less than the system development charge for the existing use, no system development charge shall be required. However, no refund or credit shall be given unless provided for by another subsection of this section.
B. A credit shall be given to the permittee for the cost of a qualified public improvement upon acceptance by the city of the public improvement. The credit shall not exceed the improvement fee even if the cost of the capital improvement exceeds the applicable improvement fee and shall only be for the improvement fee charges for the type of improvement being constructed.
C. If a qualified public improvement is located in whole or in part on or contiguous to the property that is the subject of the development approval and is required to be built larger or with greater capacity than is necessary for the particular development project, a credit shall be given for the cost of the portion of the improvement that exceeds the city’s minimum standard facility size or capacity needed to serve the particular development project or property. The applicant shall have the burden of demonstrating that a particular improvement qualifies for credit under this subsection. The request for credit shall be filed in writing prior to the commencement of any such improvement.
D. When the construction of a qualified public improvement located in whole or in part or contiguous to the property that is the subject of development approval gives rise to a credit amount greater than the improvement fee that would otherwise be levied against the project, the credit in excess of the improvement fee for the original development project may be applied against improvement fees that accrue in subsequent phases of the original development project.
1. In the event that no subsequent phases are anticipated the city shall seek alternative methods of financing to pay for the additional costs. These may include one or more of the following: grants, bonds, advance financing agreements, or capital improvement funding (if available).
2. Credits cannot be transferred to another project that the developer may be planning or has under construction within the city limits.
E. Credits can only be applied to projects that are included in the city’s capital improvement plan, which shall be updated from time to time.
F. Credits can only be applied on collectors and arterials as related to street SDCs.
G. When credits are applied, no more than 80 percent of the assessed SDCs can be used as a credit for a particular project.
H. If land is required to be deeded to the city for right-of-way for collector or arterial streets as a condition of development approval, the development shall be credited for the exaction. Land dedicated for any other classification of streets will be deemed to be for the developer’s benefit and will not be compensated.
1. The value of land dedicated for a collector or arterial street will be determined by the real market value last recorded on the tax assessor’s records for the parcel being developed.
2. The developer has the option to pay for an appraisal by a licensed fee appraiser selected by the city provided the developer agrees in writing to pay for the appraisal and deposits the estimated cost in advance. In the event an appraisal is secured, that value shall be used for the purpose of determining the real market value.
3. The right-of-way credit shall be determined by the difference between the required right-of-way width for the arterial or collector street and the maximum right-of-way width for a local street, times the length of the dedication, times the real market value in dollars per square foot.
I. All credit requests must be in writing and filed with the city manager prior to any improvements being made.
J. Improvement acceptance shall be in accordance with the usual and customary practices, procedures and standards of the city of Talent. The amount of any credit shall be determined by the city manager and based upon the subject improvement construction contract documents, or other appropriate information, provided by the applicant for the credit. Upon a finding by the city manager that the contract amounts exceed prevailing market rate for a similar project, the credit shall be based upon market rates. The city manager shall provide the applicant with a credit on a form provided by the city. The credit shall state the actual dollar amount that may be applied against any SDC imposed against the subject property.
K. Any credits as provided in the ordinance are assignable; however, they shall apply only to that property subject to the original condition for land use approval upon which the credit is based or any partitioned or subdivided parcel or lots of such property to which the credit has been apportioned. Credits shall only apply against SDCs, are limited to the amount of the fee attributable to the development of the specific lot or parcel for which the credit is sought, and shall not be a basis for any refund.
L. Any application for credit must be submitted before the issuance of a building permit or, if deferral was permitted, issuance of the final occupancy permit. The applicant is responsible for presentation of any credit and no credit shall be considered after issuance of a building permit or, if deferral was granted, issuance of the final occupancy permit.
M. Credits shall not be allowed more than 10 years after the acceptance of the applicable improvements by the appropriate jurisdiction. No extension of this deadline shall be granted or authorized. [Ord. 792 § 10; Ord. 725 § 10.]