Chapter 3.75
ASSESSMENT REIMBURSEMENT AGREEMENTS

Sections:

3.75.010  Traffic impact mitigation required.

3.75.020  Authorization of assessment reimbursement agreements.

3.75.030  Reimbursement by other property owners — Reimbursement share.

3.75.040  Application for reimbursement agreement.

3.75.050  Notice and hearing procedure.

3.75.060  Execution and recording.

3.75.070  Contract finality.

3.75.080  Title to improvements and assignment of benefit.

3.75.090  Tender of charges.

3.75.100  Release of assessments.

3.75.110  Administrative fee.

3.75.010 Traffic impact mitigation required.

The development of real property can create traffic impacts that result in a traffic facility(ies) falling below the adopted level of service for that facility. For such developments, the City shall require appropriate traffic mitigation measures, as determined by the City, as a prerequisite to further property development, pursuant to RCW 35.72.010. (Ord. 05-010 § 2, 2005).

3.75.020 Authorization of assessment reimbursement agreements.

A. The City establishes a procedure for authorizing assessment reimbursement agreements with developers, owners of real property, and the City for the purpose of providing reimbursement of a pro rata portion of the original costs of street and sidewalk improvements including design, grading, paving, installation of curbs, gutters, sidewalks, street lighting, traffic signalization, storm drainage associated with streets and sidewalks, and other similar improvements when such improvements are required by an ordinance as a prerequisite to further property development.

B. A reimbursement agreement may provide for the partial reimbursement to the owner or the owner's assigns for a period not to exceed 15 years of a portion of the costs of the project by other property owners who:

1. Are determined to be within the assessment reimbursement area pursuant to SVMC 3.75.030;

2. Are determined to have a reimbursement share based upon a benefit to the property owner pursuant to SVMC 3.75.030;

3. Did not contribute to the original cost of the street mitigation project; and

4. Subsequently develop their property within the 15-year period and at the time of development were not required to install similar street projects because they were already provided for by the reimbursement agreement. (Ord. 05-010 § 2, 2005).

3.75.030 Reimbursement by other property owners — Reimbursement share.

The reimbursement amount shall be a pro rata share of construction costs and reimbursement of contract administration costs of the street project. The city manager or designee shall determine the reimbursement share by using a method of cost apportionment which is based on the benefit to the property owner from such project. The City may determine the parcels benefited by considering the following factors, without limitation: comprehensive plan designation, zoning, current use, planned use upon development or redevelopment, size of parcel, proximity to proposed improvements, and access to areas of proposed improvement. The City may establish various classes of benefited parcels based upon the same factors. (Ord. 05-010 § 2, 2005).

3.75.040 Application for reimbursement agreement.

Application for a reimbursement agreement shall be made prior to the installation of the improvement. Application shall be made upon forms prepared by the public works department. Any application for a reimbursement agreement under this chapter shall contain, at a minimum, the following information:

A. A legal description of the applicant's property;

B. A legal description of the anticipated benefited properties;

C. Vicinity maps of the applicant's property, properties anticipated to be benefited, and the location of the improvement or improvements;

D. The itemized cost data for the improvements; and

E. Proposed pro rata share of the cost of the improvements to be borne by the properties anticipated to be benefited, and a proposed method of assessment of that pro rata share to the individual properties anticipated to be benefited. (Ord. 05-010 § 2, 2005).

3.75.050 Notice and hearing procedure.

A. Private Improvements. Upon drafting of the preliminary assessment roll, the preliminary determination of the assessment reimbursement area boundaries and assessments, along with a description of the property owners' rights and options to participate in the reimbursement agreement, shall be forwarded by the City by certified mail, return receipt requested, to the property owners within the proposed reimbursement assessment area. A property owner whose property is included in the preliminary assessment roll may request a hearing before the city hearing examiner within 10 days of the mailing to contest the preliminary determination of inclusion of his/her property and assessment amount. The hearing examiner shall hold a public hearing, establish a record, and make a decision which shall be given the effect of a recommendation to the city council, all pursuant to Chapter 10.04 SVMC. The city council's ruling shall be determinative and final.

B. City Improvements. The City may participate in a reimbursement agreement where the City has provided or joined in the financing of the improvements that will benefit other properties. The notice and hearing provisions in subsection A of this section shall apply to this subsection. No improvements that benefit the general public may be subject to a City-held reimbursement agreement. The City may be reimbursed for its investment in the improvements in the same manner as owners of real property who participate in an improvement project and request a reimbursement agreement. Authority of the City to participate in a reimbursement agreement is in addition to the power of the City to impose special utility connection charges and special assessment district charges. In the event the City participates in financing an improvement, it must specify the conditions of its participation in an ordinance. (Ord. 05-010 § 2, 2005).

3.75.060 Execution and recording.

Following receipt of the assessment roll, the city council, if provided with sufficient information and if the improvement and cost thereof are consistent with the preliminary approval, shall by motion authorize the city manager or designee to sign the reimbursement agreement(s). The fully executed reimbursement agreement(s) shall be recorded in the official property records of Spokane County, Washington. (Ord. 05-010 § 2, 2005).

3.75.070 Contract finality.

Once the reimbursement agreement is recorded with the Spokane County auditor's office, it shall be binding on all properties and owners within the assessment area who are not party to the agreement, and the obligation shall run with the land. A second notice reflecting final costs shall be mailed to the property owners by certified mail, return receipt requested, together with a copy of the reimbursement agreement, bearing the Spokane County auditor's file number. For any real property which is burdened by a reimbursement agreement, the City shall not grant any construction permits, including, but not limited to, grading permits, forms and foundation permits, building permits, or an occupancy permit, until such time as full reimbursement is made on behalf of the burdened property in satisfaction of the reimbursement agreement. (Ord. 05-010 § 2, 2005).

3.75.080 Title to improvements and assignment of benefit.

Before the City will collect any reimbursement charge, the holder of the reimbursement agreement shall transfer title to all of the improvements to the City. The holder of the reimbursement agreement shall also assign to the City the benefit and right to the reimbursement charge should the City be unable to locate the holder of the reimbursement agreement at the time of attempting to tender any charges received by the City pursuant to the reimbursement agreement. The holder of the reimbursement agreement shall be responsible for keeping the City informed of a current mailing address. Should the City be unable to locate the holder of the reimbursement agreement in order to deliver a reimbursement charge, the same shall be held by the City for a period of two years from the date of first attempted notification by the City. At any time within the two-year period, the holder of the reimbursement agreement may receive the charge, without interest, by requesting payment of the City. If, after the expiration of the two-year period, the holder of the reimbursement agreement has not requested reimbursement under the agreement, all rights of the holder of the reimbursement agreement to that charge shall expire, and the City shall be deemed to be the owner of the funds. (Ord. 05-010 § 2, 2005).

3.75.090 Tender of charges.

When the City has received a reimbursement charge, it will forward the funds to the holder of the reimbursement agreement within 30 days of receipt. Funds received by negotiable instrument, such as check, will be deemed received 10 days after delivery to the City. (Ord. 05-010 § 2, 2005).

3.75.100 Release of assessments.

When funds are received pursuant to a reimbursement agreement, the City shall record a certificate of payment and release of assessment as to the real property owned by the party paying the reimbursement charge, within 30 days of receipt of the funds. (Ord. 05-010 § 2, 2005).

3.75.110 Administrative fee.

There shall be a fee to the City for the administration, processing and collecting of the reimbursement agreement charges, in the amount of five percent of the total amount to be collected. This administrative fee shall be calculated into the amount of reimbursement to be paid by the nonparty participants in the reimbursement agreement. Prior to the granting of the final reimbursement agreement, there shall be paid to the City a processing fee in the amount of $1,000. The said processing fee shall be credited against the total five percent fee. The five percent fee shall be collected by deduction from each individual reimbursement charge payment and the balance shall be forwarded to the developer. (Ord. 05-010 § 2, 2005).