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.