Chapter 19.06
TRANSPORTATION IMPACT FEES

Sections:

19.06.010    Purpose.

19.06.020    Definitions.

19.06.030    Transportation impact fee.

19.06.040    Transportation impact fee rate schedule and zone.

19.06.050    Appeals.

19.06.060    TIF accounts – Refunds.

19.06.010 Purpose.

It is the purpose of this transportation impact fee ordinance to:

A. Ensure that adequate transportation facilities are available to serve new growth and development.

B. Promote orderly growth and development by establishing citywide standards by which new developments pay a fair and proportionate share of the cost of citywide transportation facilities necessary to serve new growth.

C. Provide a means for financing citywide growth-related transportation improvements which allows for the imposition of fees levied through established consistent procedures and criteria.

D. Maintain a minimum level of service E (LOS E) calculated as a volume-to-capacity ratio of 0.901 to 1.001 for the qualitative and quantitative service level of arterial street transportation facilities throughout the city, unless an alternative LOS standard has been adopted in the Bellingham comprehensive plan. [Ord. 2006-11-106; Ord. 2006-03-021].

19.06.020 Definitions.

For the purposes of this chapter, the terms listed shall have the following definitions and meanings consistent with RCW 82.02.090:

“Capital improvement program (CIP)” means the section of the annual city budget that contains a comprehensive list of the adopted citywide capital improvement needs, including specific transportation facility improvements. The CIP is cross-referenced in the capital facilities element of the Bellingham comprehensive plan and transportation capital improvements are derived from the annually adopted six-year transportation improvement program (TIP).

“Development activity” means any construction or expansion or use of a building, structure, or use, any change in use of a building or structure, or any changes in the use of land that creates additional demand and need for public transportation facilities.

“Development approval” means any written authorization from a county, city, or town which authorizes the commencement of development activity.

“ITE Trip Generation Manual” means Institute of Transportation Engineers Trip Generation Manual (most current edition).

“Level of service (LOS)” means the ratio of the forecast peak hour traffic volume to the capacity of an arterial street or signalized intersection compared to the level of service (LOS) standard, as adopted in the transportation element of the Bellingham comprehensive plan.

“Owner” means the owner of record of real property, although when real property is being purchased under a real estate contract, the purchaser shall be considered the owner of the real property if the contract is recorded.

“Peak hour project trips” means the traffic estimated to be generated by a proposed development during the one-hour weekday afternoon period during which the greatest volume of traffic uses the road system. The peak hour project trips shall be estimated based on procedures identified in the city’s development guidelines and improvement standards manual.

“Peak hour traffic” means traffic volumes during the one-hour weekday afternoon period during which the greatest volume of traffic uses the road system, as identified separately for each segment of a transportation facility. Bellingham measures the heaviest 60-minute traffic period between the hours of 4:00 p.m. and 6:00 p.m. during weekdays Monday through Friday.

“Project improvements” means site improvements and facilities that are planned and designed to provide service for a particular development project and that are necessary for the use and convenience of the occupants or users of the project, and are not system improvements. No improvement or facility included in a capital facilities plan approved by the governing body of the county, city, or town shall be considered a project improvement.

“Proportionate share” means that portion of the cost of public facility improvements that are reasonably related to the service demands and needs of new development.

“Six-year transportation improvement program (TIP)” means the expenditures programmed by the city for capital purposes over the next six-year period in the six-year transportation improvement program pursuant to RCW 35.77.010. The financial plan underlying the adopted six-year transportation improvement program identifies all applicable and available revenue sources, and the plan forecasts these revenues through the six-year period with reasonable assurance that such funds will be timely put to such ends.

“Transportation impact” means the generation of new vehicle trips on the citywide transportation network, which reduces the transportation capacity available to the general public and/or causes public arterial streets to fall below adopted LOS standards.

“Transportation impact fee (TIF)” means a payment of money imposed upon development as a condition of development approval to pay for public facilities needed to serve new growth and development, and that is reasonably related to the new development that creates additional demand and need for public facilities, that is a proportionate share of the cost of the public facilities, and that is used for facilities that reasonably benefit the new development. “Impact fee” does not include a reasonable permit or application fee.

“Transportation service area” means the entire geographic area defined by the incorporated city limits of Bellingham in which the publicly funded transportation network provides service to new and existing development throughout the city. Land in the designated Bellingham urban growth area (UGA) is under the jurisdiction of Whatcom County until annexed into the corporate limits of the city of Bellingham.

“Transportation strategies” means transportation demand management strategies and other techniques or programs that reduce single-occupant vehicle commute travel or improve the capacity of a transportation facility and that are approved by the public works department. Strategies may include but are not limited to vanpooling, carpooling, and public transit, access management, signalization, and channelization.

“Transportation system improvements” means those publicly funded transportation facilities projects that are included in the six-year transportation improvement program and capital improvement plan and are necessary to accommodate the transportation demands generated by land use development as adopted in the Bellingham comprehensive plan.

“Travel demand forecast model” is the city’s computerized transportation model, which is used to develop and analyze peak hour travel demands on the city’s transportation facilities. The model is used to forecast travel demand on the Bellingham arterial street network based on current land use designations and employment data. This information is used as the basis for the transportation element of the Bellingham comprehensive plan and in other transportation planning and traffic engineering applications. [Ord. 2006-11-106; Ord. 2006-03-021].

19.06.030 Transportation impact fee.

A. A transportation impact fee (TIF) shall be levied upon each development that produces one or more peak hour project trip(s).

1. The number of peak hour project trips generated by a development shall be calculated based upon the latest version of the ITE Trip Generation Manual.

2. The TIF shall be determined based upon the distribution of peak hour project trips generated by future development throughout the city using the travel demand forecast model. The TIF will be calculated by the summation of future developments’ proportionate impact on transportation improvement projects identified in the city’s adopted six-year TIP and CIP. The proportionate share factor for computing the cost of the improvements reasonably related to growth shall be based upon the ratio of future developments’ peak hour project trips to the peak hour capacity used by development of the transportation facilities required to maintain the city’s adopted arterial street level of service standard at LOS E. Residential development TIFs shall be calculated on a per unit basis whereas commercial development TIFs shall be calculated on a per square foot basis, as shown on Table 19.06.040(A), Transportation Impact Fee Worksheet, incorporated herein by this reference.

B. Payment of the TIF shall be made prior to issuance of a building permit, or if no building permit is required, prior to approval by the city of the development. Payment of the TIF for single-family detached and attached residential construction may also be deferred as allowed per Chapter 19.10 BMC.

C. Reductions in PM peak hour traffic volume from a development as a result of traffic demand management strategies, linked trips, or other incentives to reduce PM peak hour traffic loads will be considered; and if valid, reduce the TIF.

1. Specific vehicle trip reduction credits are available in Table 19.06.040(B) for urban village development in close proximity to WTA transit. Auto-oriented commercial and drive-through are not eligible.

D. The TIF shall include a credit for the value of any dedication of land for, improvement to, or new construction of any system improvements provided by the developer, to facilities that are identified in the six-year TIP and CIP and are required as a condition of the development.

E. Upon application by the owner, a partial exemption of not more than 80 percent of transportation impact fees, with no explicit requirement to pay the exempted portion of the fee from public funds, may be granted to a low-income housing development, as defined below:

1. The director of planning and community development, after consultation with the director of public works, may grant an exemption to a low-income housing project listed in an annual consolidated action plan approved by city council.

2. The city council may grant an exemption to a low-income housing project not included in an annual consolidated action plan.

3. The decision to grant, partially grant or deny an exemption shall be based on the public benefit of the specific project, the extent to which the applicant has sought other funding sources, the financial hardship to the project of paying the impact fees, the impacts of the project on public facilities and services, and the consistency of the project with adopted city plans and policies relating to low-income housing.

4. An exemption granted under this subsection must be conditioned upon requiring the developer to record a covenant approved by the director of planning and community development that prohibits using the property for any purpose other than for low-income housing. At a minimum, the covenant must address price restrictions and household income limits for the low-income housing, and require that, if the property is converted to a use other than for low-income housing as defined in the covenant, the property owner must pay the applicable impact fees in effect at the time of any conversion. Covenants required by this subsection must be recorded with the Whatcom County auditor.

5. “Low-income housing” means housing with a monthly housing expense that is no greater than 30 percent of 80 percent of the median family income adjusted for family size, for Bellingham, as reported by the United States Department of Housing and Urban Development. [Ord. 2016-08-031 § 3; Ord. 2015-07-029 § 2; Ord. 2011-01-003; Ord. 2009-04-021; Ord. 2006-11-106].

19.06.040 Transportation impact fee rate schedule and zone.

A. The TIF rate schedule shall be as shown in Table 19.06.040(A). A revised schedule shall be adopted each year by the city council concurrent with, or subsequent to, the adoption of the six-year transportation improvement program for arterial streets. The public works department shall present projects for adoption each year along with the estimated project costs.

B. TIFs will be responsive to the cost of improvements included in the six-year transportation improvement program for arterial streets, and the type of development contemplated.

C. For purposes of this chapter, the city is comprised of one transportation impact fee zone as set forth in Table 19.06.040(A), Transportation Impact Fee Worksheet, incorporated herein by this reference. A TIF rate is identified for one peak hour project trip for each land use type classified in the ITE Trip Generation Manual.

D. The TIF rate shall be determined by the computerized travel demand forecast model. A basic fee shall be established for one peak hour project trip. The total TIF is determined using the ITE Trip Generation Manual and the land use designation by the development to determine the total number of peak hour project trips generated by the development. The TIF shall be equivalent to the TIF rate multiplied by the number of peak hour project trips.

E. To further implement the infill land use strategy and multimodal transportation goals and policies of the Bellingham comprehensive plan, new development and redevelopment in urban villages with adopted master plans or mixed use urban development center zoning, are eligible for vehicle trip reduction credits listed in Table 19.06.040(B), Urban Village Vehicle Trip Reduction Credits. Auto-oriented commercial and drive-through are not eligible.

 

Table 19.06.040(A)

2017 TIF Base Fee:

$2,138/p.m. trip

Urban Village Trip/TIF Reduction Program

Land Use Group

ITE Code1

ITE Land Use Category1

*Common land uses in Bellingham, but not all-inclusive of ITE 9th Edition.

ITE Trip Rate2

Passby, Diverted Link %3

Net New Trips per Dev Unit1

Citywide Impact Fee per Development4

Less 22% Trip Rate7

Less 22% Impact Fee per Development7

Less 25% Trip Rate7

Less 25% Impact Fee per Development7

Less 50% Trip Rate7

Less 50% Impact Fee per Development7

Residential

210

Single-Family House

1.00

0%

1.00

$2,138

Unit

0.78

$1,667.64

Unit

0.75

$1,603.50

Unit

0.50

$1,069.00

Unit

845

221

1 – 2 Story (Low-Rise) Apartment/ADU

0.58

0%

0.58

$1,240

Unit

0.45

$967.23

Unit

0.44

$930.03

Unit

0.29

$620.02

Unit

 

223

3 – 10 Story (Mid-Rise) Apartment

0.39

0%

0.39

$834

Unit

0.30

$650.38

Unit

0.29

$625.37

Unit

0.20

$416.91

Unit

 

231

1 – 2 Story Condo/Townhouse/Duplex

0.78

0%

0.78

$1,668

Unit

0.61

$1,300.76

Unit

0.59

$1,250.73

Unit

0.39

$833.82

Unit

 

232

3+ Story Condo/Townhouse

0.38

0%

0.38

$812

Unit

0.30

$633.70

Unit

0.29

$609.33

Unit

0.19

$406.22

Unit

Residential – Hotel

310

Hotel (Hampton/Marriott/La Quinta)

0.70

0%

0.70

$1,496.60

Room

0.55

$1,167.35

Room

0.53

$1,122.45

Room

0.35

$748.30

Room

320

Motel (Exterior Corridors & Stairs)

0.58

0%

0.58

$1,240.04

Room

0.45

$967.23

Room

0.44

$930.03

Room

0.29

$620.02

Room

Public Education

520

Public Elementary School

1.76

0%

1.76

$3,762.88

Employee

1.37

$2,935.05

Employee

1.32

$2,822.16

Employee

0.88

$1,881.44

Employee

 

540

Community/Technical College

2.54

0%

2.54

$5.43

Sq. Ft.

1.98

$4.24

Sq. Ft.

1.91

$4.07

Sq. Ft.

1.27

$2.72

Sq. Ft.

 

550

University/College (WWU)

0.17

0%

0.17

$363.46

Student

All WWU Students Pay For and Possess WTA Bus Passes for High-Frequency Service to WWU

Private Education

534

Private School K-8 & K-12

0.17

0%

0.17

$363.46

Student

0.13

$283.50

Student

0.13

$272.60

Student

0.09

$181.73

Student

 

565

Day Care Center6

0.81

90%

0.08

$173.18

Student

0.06

$135.08

Student

0.06

$129.88

Student

0.04

$86.59

Student

 

560

Church

0.55

0%

0.55

$1.18

Sq. Ft.

0.43

$0.92

Sq. Ft.

0.41

$0.88

Sq. Ft.

0.28

$0.59

Sq. Ft.

Industrial

110

General Light Industrial

0.97

0%

0.97

$2.07

Sq. Ft.

0.76

$1.62

Sq. Ft.

0.73

$1.56

Sq. Ft.

0.49

$1.04

Sq. Ft.

 

120

General Heavy Industrial

0.68

0%

0.68

$1.45

Sq. Ft.

0.53

$1.13

Sq. Ft.

0.51

$1.09

Sq. Ft.

0.34

$0.73

Sq. Ft.

 

140

Manufacturing

0.73

0%

0.73

$1.56

Sq. Ft.

0.57

$1.22

Sq. Ft.

0.55

$1.17

Sq. Ft.

0.37

$0.78

Sq. Ft.

 

150

Warehouse

0.32

0%

0.32

$0.68

Sq. Ft.

0.25

$0.53

Sq. Ft.

0.24

$0.51

Sq. Ft.

0.16

$0.34

Sq. Ft.

 

151

Mini-Warehouse (Storage Units)6

0.22

0%

0.22

$0.47

Sq. Ft.

0.17

$0.37

Sq. Ft.

0.17

$0.35

Sq. Ft.

0.11

$0.24

Sq. Ft.

Offices

710

General Office (Admin/Finance, Etc.)

1.49

0%

1.49

$3.19

Sq. Ft.

1.16

$2.48

Sq. Ft.

1.12

$2.39

Sq. Ft.

0.75

$1.59

Sq. Ft.

 

720

Medical/Dental Office

3.57

0%

3.57

$7.63

Sq. Ft.

2.78

$5.95

Sq. Ft.

2.68

$5.72

Sq. Ft.

1.79

$3.82

Sq. Ft.

Recreation

492

Health Fitness Club (BAC, Gold’s, Etc.)

3.53

0%

3.53

$7.55

Sq. Ft.

2.75

$5.89

Sq. Ft.

2.65

$5.86

Sq. Ft.

1.77

$3.77

Sq. Ft.

 

495

Recreational Community (YMCA)

1.45

0%

1.45

$3.10

Sq. Ft.

1.13

$2.42

Sq. Ft.

1.09

$2.33

Sq. Ft.

0.73

$1.55

Sq. Ft.

Retail – Automotive

841

Automobile Sales6

2.45

0%

2.45

$5.24

Sq. Ft.

Automotive Uses Not Eligible for Urban Village TIF Reduction

 

843

Automobile Parts Sales

5.98

43%

3.41

$7.29

Sq. Ft.

n/a

n/a

n/a

n/a

n/a

n/a

n/a

n/a

n/a

941

Quick Lube Vehicle Shop

5.19

42%

3.01

$6,436

VSP

n/a

n/a

n/a

n/a

n/a

n/a

n/a

n/a

n/a

 

942

Auto Care Center (Harmony Motors)

3.11

28%

2.24

$4.79

Sq. Ft.

n/a

n/a

n/a

n/a

n/a

n/a

n/a

n/a

n/a

 

944

Gas Station6

13.87

42%

8.04

$17,199

VSP

n/a

n/a

n/a

n/a

n/a

n/a

n/a

n/a

n/a

 

945

Gas Station w/Convenience Market

13.51

56%

5.94

$12,709

VSP

n/a

n/a

n/a

n/a

n/a

n/a

n/a

n/a

n/a

Retail – Services

812

Building Materials & Lumber Store

4.49

0%

4.49

$9.60

Sq. Ft.

3.50

$7.49

Sq. Ft.

3.37

$7.20

Sq. Ft.

2.25

$4.80

Sq. Ft.

 

816

Hardware/Paint Store

4.84

0%

4.84

$10.35

Sq. Ft.

3.78

$8.07

Sq. Ft.

3.63

$7.76

Sq. Ft.

2.42

$5.17

Sq. Ft.

 

826

Specialty Retail5 (Merch Bot, Etc.)

2.71

25%

2.03

$4.35

Sq. Ft.

1.59

$3.39

Sq. Ft.

1.52

$3.26

Sq. Ft.

1.02

$2.17

Sq. Ft.

 

820

Shopping Center (Sunset Square)

3.71

34%

2.45

$5.24

Sq. Ft.

1.91

$4.08

Sq. Ft.

1.84

$3.93

Sq. Ft.

1.22

$2.62

Sq. Ft.

 

850

Supermarket (Haggen/Cost Cutter)

9.48

36%

6.07

$12.97

Sq. Ft.

4.73

$10.12

Sq. Ft.

4.55

$9.73

Sq. Ft.

3.03

$6.49

Sq. Ft.

 

851

Convenience Market (Open 24 Hrs.)

52.41

61%

20.44

$43.70

Sq. Ft.

15.94

$34.09

Sq. Ft.

15.33

$32.78

Sq. Ft.

10.22

$21.85

Sq. Ft.

 

854

Discount Supermarket (Winco)

8.34

23%

6.42

$13.73

Sq. Ft.

5.01

$10.71

Sq. Ft.

4.82

$10.30

Sq. Ft.

3.21

$6.86

Sq. Ft.

 

857

Discount Club (Costco)

4.18

0%

4.18

$8.94

Sq. Ft.

3.26

$6.97

Sq. Ft.

3.14

$6.70

Sq. Ft.

2.09

$4.47

Sq. Ft.

 

876

Apparel Store

3.83

25%

2.87

$6.14

Sq. Ft.

2.24

$4.79

Sq. Ft.

2.15

$4.61

Sq. Ft.

1.44

$3.07

Sq. Ft.

 

880

Pharmacy/Drug Store

8.40

53%

3.95

$8.44

Sq. Ft.

3.08

$6.58

Sq. Ft.

2.96

$6.33

Sq. Ft.

1.97

$4.22

Sq. Ft.

881

Pharmacy/Drug Store w/Drive-Up

9.91

49%

5.05

$10.81

Sq. Ft.

Drive-Thru Uses Not Eligible for Urban Village TIF Reduction

 

890

Furniture Store

0.45

53%

0.21

$0.45

Sq. Ft.

0.16

$0.35

Sq. Ft.

0.16

$0.34

Sq. Ft.

0.11

$0.23

Sq. Ft.

 

912

Bank with Drive-Up Teller(s)

33.24

90%

3.32

$7,107

Window

Drive-Thru Uses Not Eligible for Urban Village TIF Reduction

 

918

Hair/Nail Salon

1.45

0%

1.45

$3.10

Sq. Ft.

1.13

$2.42

Sq. Ft.

1.09

$2.33

Sq. Ft.

0.73

$1.55

Sq. Ft.

Retail – Food/Drink

925

Drinking Place6

11.34

75%

2.84

$6.06

Sq. Ft.

2.21

$4.73

Sq. Ft.

2.13

$4.55

Sq. Ft.

1.42

$3.03

Sq. Ft.

 

931

Quality Restaurant (Hearth Fire)

7.49

44%

4.19

$8.97

Sq. Ft.

3.27

$6.99

Sq. Ft.

3.15

$6.73

Sq. Ft.

2.10

$4.48

Sq. Ft.

 

932

High Turnover Restaurant (Busara)

9.85

43%

5.61

$12.00

Sq. Ft.

4.38

$9.36

Sq. Ft.

4.21

$9.00

Sq. Ft.

2.81

$6.00

Sq. Ft.

 

933

Fast Food (Pita Pit/Jimmy John’s)

26.15

50%

13.08

$27.95

Sq. Ft.

10.20

$21.80

Sq. Ft.

9.81

$20.97

Sq. Ft.

6.54

$13.98

Sq. Ft.

 

934

Fast Food w/Drive-Up (McDonald’s)

32.65

50%

16.33

$34.90

Sq. Ft.

Drive-Thru Uses Not Eligible for Urban Village TIF Reduction

 

938

Drive-Up Coffee Stand6 (Cruise Coffee)

2.00

0%

2.00

$4,276

Window

Drive-Thru Uses Not Eligible for Urban Village TIF Reduction

1 Institute of Transportation Engineers, Trip Generation (9th Edition). *This worksheet represents only the most common uses permitted in Bellingham and is not all-inclusive of the 172 ITE land use categories.

2 Trip generation rate per development unit, for p.m. peak hour of the adjacent street traffic (weekday, 4:00 to 6:00 p.m.). Note: Sq. ft. rate expressed per 1,000 SF for convenience of development community.

3 Average pass-by rates, per Trip Generation Handbook: An ITE Recommended Practice (2nd Edition), June 2004.

4 Unit = dwelling unit; sq. ft. = square feet; VSP = vehicle servicing position; student = WWU student with bus pass; Room = available hotel/motel room.

5 Public works allows some mixed-use and commercial development to be categorized as “specialty retail centers” with 25 percent pass-by.

6 Local trip generation studies performed by consulting engineers and accepted by Bellingham Public Works.

7 Only in urban villages adopted in Bellingham comprehensive plan and shown on attached map.

Table 19.06.040(B) – Urban Village Vehicle Trip Reduction Credits

Credit

Menu of Location Factors and Performance Measures to Reduce Vehicle Trips

 

 

Note: Reductions below are additive and may not exceed a total of 50%

 

1.

MIXED USE URBAN VILLAGE LOCATION

15%

 

(Based on ITE Internal Trip Capture – Mixed Use Urban Environment)

 

2.

WTA TRANSIT PROXIMITY (Only one transit proximity reduction below may be used)

 

 

Development fronts on a high-frequency WTA GO Line

10%

 

Development within 1/4 mile of WTA GO Line

7%

 

Development fronts on standard WTA Route (30 – 60 min)

5%

 

Development within 1/4 mile of standard WTA Route (30 – 60 min)

2%

3.

EMPLOYER MANDATORY COMMITMENT TO COMMUTE TRIP REDUCTION (CTR)

 

 

CTR/TDM commitment combining economic incentives with transportation services

10%

4.

VOLUNTARY ANNUAL WTA TRANSIT PASS PROVISION (NON-CTR)

 

 

2-year transit pass provided for residential units = 1% unit pass

1%

 

2-year transit pass provided for employees = 1% per employee pass

1%

5.

VOLUNTARY CAR SHARE PARTICIPATION OR PROVISION (NON-CTR)

 

 

Car share vehicles parked on residential or employment site = 2% per vehicle

2%

 

Car share membership fee provided for residential units = 2% per unit

2%

 

Car share membership fee provided for employees = 2% per employee

2%

[Ord. 2017-01-001 § 2 (Exh. A); Ord. 2015-12-052 § 2 (Exh. A); Ord. 2014-12-067 § 2 (Exh. A); Ord. 2013-12-093 § 2 (Exh. A); Res. 2012-34 § 2; Res. 2011-29; Ord. 2011-01-003; Ord. 2006-11-106; Ord. 2006-03-021].

19.06.050 Appeals.

A. A TIF determination may be appealed to the public works director in writing describing the alleged defect of the TIF determination within 10 days of the appellant being notified of the TIF determination.

B. The public works director’s decision under this section may be appealed to the Bellingham hearing examiner for resolution pursuant to Chapter 2.56 BMC by filing a written request for hearing with the hearing examiner, with a copy to public works, within 10 days of the public works director’s decision.

C. Only the following determinations may be appealed pursuant to this section and the provisions of this chapter shall be presumed valid:

1. TIF rate.

2. Total number of peak hour project trips.

3. Interpretation of the ITE Trip Generation Manual.

4. Reduction of the TIF rate.

D. The appellant shall have the burden of producing and presenting technical evidence that clearly shows the basis and substantiation of the appeal upon submittal.

E. The public works director and the hearing examiner shall have authority to affirm, modify or reverse the determination upon appeal. The TIF may be modified upon a finding that the original determination was erroneous or when, due to unique circumstances of the development, the TIF as determined by this chapter imposes upon the development more than its fair pro rata share of the cost of facilities in the six-year transportation improvement program.

F. A TIF may be paid under protest in order to obtain a permit or approval of development activity. [Ord. 2006-11-106; Ord. 2006-03-021].

19.06.060 TIF accounts – Refunds.

A. All TIF receipts shall be retained in a separate interest bearing account of the street program. TIFs and interest thereon shall only be expended for the purpose for which the TIFs were imposed.

B. TIFs shall be expended or encumbered within 10 years of receipt, unless the city council, in writing, finds that there are extraordinary or compelling reasons for the TIFs to be held longer than 10 years.

C. In the event a TIF is not expended or encumbered within 10 years of receipt, or such longer period of time as is established in this section, on public facilities intended to benefit the development for which the TIF was paid, the current owner of the property for which the TIF was paid may receive a refund of the unspent and unencumbered portion of the TIF, together with interest earned thereon. In order to receive a refund, the request must be submitted to the city in writing within one year of the expiration date. Notice of a potential refund is placed in the U.S. Mail, First Class, to the property owner as is then shown on the records of the Whatcom County assessor. Any TIF not expended within the above-stated time limits for which no request for a refund is received shall be held and expended on the indicated transportation facility.

D. A developer who has paid a TIF but does not proceed with a development, shall receive, upon request, a refund of the TIF, together with interest earned thereon, provided no impact has resulted from the development, minus an appropriate administrative processing fee. [Ord. 2011-07-037; Ord. 2006-11-106; Ord. 2006-03-021].