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HomeMy WebLinkAbout76-85REVZSED BEFORE THE CITY COUNCIL OF THE CITY OF DANVILKE In the t,iatter of: Amending the Municipal Code to ) Authorize the Establishment of ) Benefit Districts in Order to ) Reimburse Persons for the Instal- ) lation of Public Improvements ) ) ORDINANCE NO. 76-85 The City Council of the City of Danville does ordain as follows: SECTION 1. The Danville Municipal Code is amended by adding to Title 9 (Public Property and Works) a new Chapter 1, Benefit Districts and Public Improvement Reimbursement Agreements, to read as follows: "Chapter 1 BENEFIT DISTRICTS AND PUBLIC IMPROVEMENT REIMBURSEMENT AGREEMENTS Section 9-101 Section 9-102 Section 9-103 Section 9-104 Section 9-105 Section 9-106 Purpose. Definitions. Public Improvement Reimbursement Agreement: Procedure. Public Improvement Reimbursement Agreement: Contents. Payment by Benefited Property Owner. Implementation. Section 9-101. PurDose. As a condition of approval of the grant of a land use entitlement for the development of property, a developer may be required to install public improvements that provide a benefit to the general public and to other specific prop- erties in the vicinity of the improvements. This situation may occur when one developer elects to seek approval and begin development sooner than another. The purpose of this chapter is to establish a mechanism whereby a property owner who benefits by but does not con- tribute to certain public improvements will, at the time the benefited property owner develops property, reimburse the developer who has installed improvements. PAGE 1 ORDINANCE NO. Section 9-102. Definitions. In this chapter: (1) "benefit district" means the geographical area which benefits by a privately financed public improvement; (2) "benefited property" means a property within a benefit district for which no contribution to the cost of the public improvement was made at the time of its construction. Benefited property includes property owned by a public agency; (3) "financing party" means a property owner or developer who installs or pays for the installation of public improvements within a benefit district; (4) "land use entitlement" includes a permit or approval granted by the city for the development of property, including a subdivision map approval, land use permit, development plan approval, grading permit, building permit and architectural or design review approval. Section 9-103. Public Improvement Affreement: Procedure. Reimbursement a. General. If a property owner is required to con- struct public improvements as a condition of approval of a proposed development and the required public improvements have the capacity and capability of serving and are designed to serve additional properties not within the proposed development and to directly benefit other properties in the vicinity, the property owner may apply to the city for a reimbursement agreement as provided in this chapter. b. Application. A person requesting a reimbursement agreement shall submit an application on a form provided by the city and shall provide information as required by the city engineer, including the area of the proposed benefit district. The applicant shall also submit a proposed form of agreement. c. Notice and Hearing. The City Council shall hold a public hearing on the application. At least 10 days before the hearing the city shall notify each affected property owner in writing, advising of the hearing and providing a copy of the proposed reimbursement agreement and staff report which will be submitted to the Council. PAGE 2 ORDINANCE NO. In this subsection, "affected property owner" means (1) the record owner (as shown on the latest County Assessor's secured real property assessment roll) of each property within the proposed benefit district and (2) the financing party. An affected property owner may file written or oral comments or objections to the application before or at the hearing. No property may be added to a benefit district unless the notice is sent to the affected property owner. Failure to receive the notice required by this section shall not invalidate the reimbursement agreement. d. City Council Action: Findings. After the public hearing, the City Council may by resolution grant, grant with modification or deny approval of a reimbursement agree- ment. Before granting approval, the City Council shall make each of these findings: (1) the improvement for which reimbursement is sought is a public improvement which will, upon completion, be accepted by the city; (2) the improvement is not located within the boundaries of the proposed development; (3) the public improvement has the capacity and capability of serving and is designed to serve additional properties not within the proposed development due to the supplemental size, capacity, number or length of the improvement; (4) the proposed benefit district represents a geographical area of property which will benefit directly and substantially by the public improve- ment; and (5) the method of determining contribution and the amount of contribution is fair and reason- able to both the financing party and the benefited property owner and fairly distributes the charge among all subject parcels in proportion to the estimated benefit each will receive from the proposed improvement. e. Timing. A financing party may not request and the City Council may not approve a public improvement reim- PAGE 3 ORDINANCE NO. bursement agreement after on a public improvement. the date construction begins f. Recordation. The city shall have an approved public improvement reimbursement agreement, including a list of the benefited properties, recorded in the office of the County Recorder. Section 9-104. Public ImDrovement Agreement: Contents. Reimbursement A public improvement reimbursement agreement shall include, but is not limited to, the following provisions: (1) a statement of the total construction cost, the applicant's equitable share of the cost, and the amount of the total cost eligible for reimbursement; (2) a map approved by the city engineer showing each property included within the benefit district and a list of each property by county assessor parcel number; (3) the method of spreading the eligible reimbursement cost to be charged under the agree- ment to properties within the benefit district and the rate of interest or appreciation to be added to initial charges during the period of the agreement; (4) a provision indicating who the financing party is for the purpose of receiving reimburse- ment, i. e. whether the developer or the property owner of record at the time the reimbursement is made. (This may depend upon whether the public improvement is financed by the developer or by individual property owners through an asses- sment district.); (5) the date on which agreement takes effect and owners begin contributions; the reimbursement benefited property (6) a statement that no reimbursement charges collected by the city may be distributed to a financing party until the public improvement is completed and accepted by the city; (7) a list of the administrative costs, if any, to be charged by the city to administer PAGE 4 ORDINANCE NO. the agreement. These costs may be shown as a percentage of the charges collected by the city; (8) a provision that reimbursement to the financing party shall be paid only from charges collected by the city under the agreement from the benefited properties listed in the agreement as such properties receive a land use entitlement. Reimbursement to the financing party shall be paid only from such charges collected within ten (10) years from the date the agreement becomes effective, unless a different time period is approved by the City Council; and (9) a provision that the city is not liable to the financing party for failure of the city to collect a reimbursement charge due from a property or because of legal inability of the city to collect the charge from a property. Section 9-105. Payment by Benefited ProDerty Owner. (a) A benefited property owner shall pay to the city the applicable contribution charge set forth in the agreement whenever that person obtains a land use entitlement. The charge is payable at the time the entitlement is granted. (b) The contribution charge applies only: (1) after the reimbursement agreement is recorded; (2) during the period a reimbursement agreement is in effect; and (3) if the city engineer determines that the land use entitlement involves the scope and type of development contemplated by the agreement. Payment of the contribution charge is not required as a condition of issuing a land use entitlement for the alteration or enlargement of an existing building or structure (or the erection of an accessory building or structure) if the work: (1) is on the same parcel of land; and (2) does not create an additional dwelling unit; and (3) will not change the potential for traffic generation; and (4) in any three year period will not exceed one-half the value of all existing improvements on that parcel of land. PAGE 5 ORDINANCE (c) No property may be assessed a double fee under this chapter. (d) A benefited property owner has no obligation to pay a contribution charge if the owner does not develop the property during the effective period of the reimbursement agreement. Section 9-106. The City Council may adopt rules and regulations it considers necessary to implement this chapter. SECTION 2. Effective Date, This ordinance becomes effective 30 days after its adoption. SECTION 3. Publication. The City Clerk shall either a) have this ordinance published once within fifteen days after adoption in a newspaper of general circulation or b) have a summary of this ordinance published twice in a newspaper of general circulation once five days before its adoption and again within fifteen days after adoption. The foregoing ordinance was introduced at a meeting of the City Council of the City of Danville held on 0Ctober21 , 1985, and was adopted and ordered published at a meeting of the City Council held on November Y , 1985, by the following vote: AYES: Lane, ~lay, 0ffenhartz, Schlendorf NOES: ~4one ~~ ABSENT: McNeely Mayor ATTEST: C i ~y [.C/~ e rk 7) PAGE 6 ORDINANCE NO.