4.3.16. RESPONSIBILITY FOR IMPROVEMENT COSTS.
A. Generally. The subdivider shall be responsible for the costs of all streets, alleys, sidewalks, and other improvements required by this Section 146-4.3 unless the oversizing provisions of Subsections B or C below apply, or unless the subdivider has entered into an agreement approved by the City Council providing for a different allocation of costs.
B. Street Oversizing or Extensions.
1. In the event that the street construction standards of this UDO require an applicant to construct all or part of a street along property that is not part of the subdivision application (for example, along property that separates the applicant's land from a street to which a connection is required), the City will use its best efforts to assist the applicant to recover that portion of the street construction costs that represent an unearned benefit conferred upon other landowners, under the following conditions:
a. The City Engineer shall determine the allocation of benefits between property owners benefiting from an oversized road, based on an approved Traffic Impact Study submitted by the applicant addressing probable development densities and traffic generation from each property.
b. The City may use any legal mechanism to recover reimbursement from later property owners benefiting from the oversized street, including but not limited to subdivision improvements agreements, escrow of funds, conditions on plat approval, conditions on building permit issuance, conditions on any development approval or permit, the collection of fees and charges, direct reimbursement agreements between property owners, or required participation in street districts.
c. The City's obligation to use its best efforts to attempt to collect reimbursement from benefiting property owners shall terminate10 years after the acceptance of the oversized street by the City (or, in the case of a private street,10 years after the final approval of such street construction).
d. The failure or inability of the City to obtain such reimbursement from benefiting property owners within such 10-year period shall not create any legal or financial liability for the City to repay or reimburse any such sums or any alleged damages related to the failure or inability to obtain reimbursement.
2. In the event that the City constructs all or part of a street along property that has not contributed to the construction of such street, the City shall have the same authority to attempt to collect reimbursement as it would have if the street had been constructed by a private party, and shall be authorized to retain any amounts collected to reimburse itself for street construction costs incurred. However, the City shall not be required to attempt to obtain reimbursement if, in the opinion of the City Engineer, it would be inequitable, impracticable, or not in the City's best interests to do so.
C. Reimbursement for Other Improvements.
1. When any subdivider constructs or installs an extension of a water transmission line, sewer interceptor line, street, or other public improvement through intervening undeveloped property to serve the subdivider's property, the entire cost of the improvement shall be the responsibility of such subdivider.
2. The City Council is authorized to enter into agreements to reimburse any subdivider that constructs or installs a public improvement through intervening undeveloped property. Such reimbursement shall be made solely from funds collected from the owner or owners of each parcel of land that abuts the improvement at the time such parcel develops within the City. The amount of the reimbursement to be paid shall not exceed the original cost of the improvement, plus reasonable interest, as agreed to by the City and the subdivider. To defray the costs of administering the reimbursement agreement, the City shall withhold a fee not to exceed 2½ percent of the amount of the reimbursement.
3. The City's obligation to reimburse shall be subject to the creation of an Improvement Reimbursement District, the development of the intervening property, the collection of funds from the owner or owners of such property, and the appropriation of such funds by the City Council. The term of each such reimbursement agreement shall be within the sole discretion of the City Council and, in any event, shall not exceed 20 years.
4. Each subdivider that enters into a reimbursement agreement with the City shall submit a written application to the City, on a form approved by the City, for the creation of an Improvement Reimbursement District. Such application shall be in a form approved by the City Manager and shall include, at a minimum, the following information:
a. A map and legal description of the boundaries of the proposed district and the properties contained therein;
b. A list of the current owners of the properties contained in the proposed district and their last known mailing addresses;
c. Preliminary plans and specifications for the improvement or improvements to be constructed or installed by the subdivider;
d. A certified list of the costs incurred or expected to be incurred by the subdivider based upon unit quantities; and
e. The proposed share of costs to be assessed on a front foot basis to each intervening parcel of land.
5. Within 60 calendar days after receiving the subdivider's completed application regarding the creation of an Improvement Reimbursement District and the assessment of public improvement costs, intervening undeveloped properties shall be noticed and processed in compliance with the procedures in Sections 146-5.3.7 (Notice) and 146-5.3.8 (Public Hearings).
6. At the conclusion of the public hearing, the City Council may adopt an ordinance approving, conditionally approving, or denying the creation of an Improvement Reimbursement District and the assessment of public improvement costs to intervening undeveloped properties.
7. The City shall record a notice of a reimbursement obligation with the clerk and recorder of the county in which the property so obligated is located. The notice shall include a provision stating that at the time of development of the property, the City shall require the owner to pay the assessment for the described improvements at the time of issuance of a building permit.
8. In the event that the City extends public improvements, the City is authorized to receive reimbursement from intervening undeveloped properties that abut such improvements; provided that the City has followed the public hearing process consistent with the requirements of Article 146-5 (Zoning and Subdivision Procedures).
9. The City may deduct from funds collected any costs or expenses that the City has incurred in repairing, correcting, or improving any defect that the subdivider who constructed or installed such improvement failed to correct during the applicable warranty period.
10. A building permit shall not be issued for the construction of any structure on the abutting, intervening property until payment of the assessment per foot of property frontage is received by the City.
11. Nothing in this Section shall be deemed to relieve any owner of property located within an Improvement Reimbursement District of any obligation imposed upon such owner by virtue of a valid annexation agreement with the City. (Ord. No. 2019-49 § 1, 08-19-2019)