12.07.100 Credits.
The City shall grant a credit against an SDC that is otherwise assessed for a New Development, for any Qualified Public Improvement constructed or dedicated as part of that New Development. The Applicant bears the burden of proof and persuasion in establishing entitlement to an SDC Credit and to a particular value of SDC Credit.
A. To obtain an SDC Credit, the Applicant must specifically request a credit within 180 days after Permit issuance for the New Development. In the request, the Applicant must identify the improvement(s) for which credit is sought and explain how the improvement(s) meet the requirements for a Qualified Public Improvement. The Applicant shall also document, with credible evidence, the value of the improvement(s) for which credit is sought. If, in the City Manager’s opinion, the improvement(s) are Qualified Public Improvement, and the City Manager concurs with the proposed value of the improvement(s), an SDC Credit shall be granted. The value of SDC Credits under this Section shall be determined by the City Manager based on the cost of the Qualified Public Improvement, or the value of land dedicated, as follows:
1. 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;
2. For improvements yet to be constructed, value shall be based upon the anticipated cost of construction. Any such cost estimates shall be certified by a professional architect or engineer or based on a fixed price bid from a contractor ready and able to construct the improvement(s) for which SDC Credit is sought;
3. For improvements already constructed, value shall be based on the actual cost of construction as verified by receipts submitted by the Applicant;
4. For all improvements for which credit is sought, only the fraction of Over Capacity in the Qualified Public Improvement is eligible for SDC Credit. There is a presumption that improvements built to the City’s minimum standards are required to serve the Applicant’s New Development and to mitigate for transportation system impacts attributable to the Applicant’s New Development and therefore have no increment of Over Capacity;
B. The City Manager will respond to the Applicant’s written credit request within 21 days of when the request is submitted. The City Manager shall provide a written explanation of the decision on the SDC Credit request.
C. If an Applicant disputes the City Manager’s decision with regard to an SDC Credit request, including the amount of the credit, the Applicant may appeal the City Manager’s decision to the City Council pursuant to Section 12.07.130. Any such appeal must be filed with the City Recorder in writing within 14 calendar days of the City Manager’s written decision on the credit request.
D. In no event shall the amount of an SDC Credit approved by the City Manager under this Section exceed the amount of the SDC assessed by the City upon a New Development. In no event shall the City issue or be liable for a refund when the value of a credit-worthy Qualified Public Improvement exceeds any SDC assessed for a New Development.