§ 19-1014. Credits.

(a)

Policies. The following requirements shall apply to all credits against development impact fees otherwise permitted by this section:

(1)

No credits shall be given for project improvements.

(2)

Except for reimbursements allowed pursuant to subsection 19-1014(d)(4), credits shall be allowable and payable only to offset future development impact fees and shall not result in reimbursement from, nor constitute a liability of, the city.

(3)

Credits shall be given only for the present value of any construction of improvements or contribution or dedication of land or money by a developer or his predecessor in title or interest for system improvements of the same category and in the same service area for which a development impact fee was imposed, except where further specific restrictions are set forth in this section. Any transfer or assignment of credits shall be expressly stated in writing, and in the absence of an express transfer or assignment of the right to any credit, the credit shall be deemed "not to run with the land."

(4)

In the event that any development impact fee schedule is subsequently changed to reflect increases in construction costs or other relevant factors, a credit holder may request a recalculation of credits to fairly reflect such changed circumstances. In the event that any development impact fee schedule is subsequently changed to reflect decreases in construction costs or other relevant factors, the city may recalculate such credits to fairly reflect such changed circumstances.

(5)

Any claim for a credit that is based upon any construction of improvements or contribution or dedication of land or money which was required or accepted by the city prior to the effective date shall be treated as a pre-ordinance credit regardless of the actual date of acceptance of the construction, contribution or dedication by the city.

(b)

Computation of Credits. All credits shall be computed in accordance with the requirements set forth in this subsection.

(1)

The present value of cash contributions shall be based on the face value of the cash payment at the time of contribution.

(2)

For the present value of any contribution or dedication of land accepted for system improvements by the city from the developer, or his predecessor in title or interest, the value of contributed land shall be determined by the director based on a review of property appraisals applicable to the date of the dedication prepared by qualified professionals.

(3)

The present value of construction of system improvements shall be the present value of the lower of the value of the completed improvements based on an appraisal prepared by qualified professionals acceptable to the city, or the actual construction cost of the improvements. The cost or appraisal basis shall be adjusted to the date of actual construction or dedication.

(4)

The person claiming any credit shall be responsible for providing appraisals of land and improvements, construction cost figures, and documentation of all contributions and dedications necessary to the computation of the credits claimed. The city shall have no obligation to grant credit under this section to any person who cannot provide such documentation in such form as the director may reasonably require. The director may accept appraisals from the developer that were conducted contemporaneously with the original dedication or construction if the director determines that said appraisals are reasonably applicable to the computation of credit due. The director shall accept subsequent appraisals only if conducted by a certified appraiser or otherwise approved by the director in accordance with guidelines promulgated by the director.

(5)

The city shall give credit only for construction of improvements or contribution or dedication of land or money actually accepted by the city. Deposit of a check shall be deemed acceptance of cash by the city. Only land dedications formally accepted by the city council or accepted by operation of law shall constitute acceptance for purposes of computing credits under this section. System improvements shall be deemed to be accepted only if and when the commissioner of public works or other applicable official has determined that such improvements meet applicable city standards and agreed on behalf of the city to accept such improvements for maintenance. The acceptance of an offer of dedication of land shall not constitute acceptance of any improvements located thereon unless the action accepting the dedication or other applicable city ordinance shall so provide.

(6)

For the present value of any previously paid development impact fee, credit shall be equal to the amount of the development impact fee paid.

(7)

In making the present value calculation, the percentage rate used shall be that of a State of Georgia "A-rated" or better municipal bond sold at the bond sale nearest the date on which the present value calculation is made.

(c)

Time to Claim Credits.

(1)

Any person claiming a credit shall apply to the director to claim such a credit no later than the date of application for the building permit to which the person applying wishes to have the credit apply. Any portion of a credit not claimed by such date shall be deemed waived.

(2)

Any person claiming a pre-ordinance credit for construction, contributions or dedications pursuant to subsection 19-1014(e) shall file an application claiming the full amount of such credit with the director on or before April 1, 1994.

(3)

Any person entitled to a pre-ordinance credit for construction, contributions or dedications pursuant to subsection 19-1014(e) must utilize said credit within ten years of the effective date.

(4)

No credits of any kind shall be available for construction, contributions or dedications that occurred more than ten years prior to the effective date.

(5)

The time for persons entitled to a pre-ordinance credit for construction, contributions or dedications pursuant to subsection 19-1014(e), and limited by subsection 19-1014(c)(3) to 10 years from the effective date, is extended until March 26, 2007.

(d)

Post-Ordinance Credits/Reimbursements. Credit shall be given for the present value of the construction of improvements or contribution or dedication of land or money by a developer required or accepted by the city from the developer or his predecessor in title or interest for system improvements subsequent to the effective date ("Post-ordinance credits") in accordance with the following requirements:

(1)

A person claiming post-ordinance credits shall submit to the director a project description in sufficient detail to allow the commissioner of the department of public works to prepare an engineering and construction cost estimate. A person proposing credit for system improvements shall present cost estimates and property appraisals prepared by qualified professionals to be used by the director in determining the amount of the credit. All construction must be made in accordance with applicable city development and design standards. A person proposing post-ordinance credits for land dedication shall present the director with property appraisals prepared by qualified professionals to be used by the director in determining the amount of credit. The director retains the right to determine the amount to be credited by causing to be prepared engineering and construction cost estimates and/or property appraisals for those improvements and/or right-of-way dedications.

(2)

All other requirements of this section 19-1014 are met.

(3)

In the event that post-ordinance credits are claimed prior to the completion of construction of the system improvements for which the post-ordinance credits is claimed, security to insure completion of the system improvements in the form of a performance bond, irrevocable letter of credit, or escrow agreement shall be posted with the city, made payable to the city in the amount approved by the director equal to 110 percent of the full cost of the construction of system improvements. If a system improvement will not be constructed within one year of the acceptance of the offer by the city, the amount of the security shall be increased by ten percent compounded, for each year of the life of the security. The security shall be reviewed and approved by the city's chief financial officer prior to the acceptance of the security by the city.

(4)

In the event a developer contracts with the city to construct, fund, or contribute toward system improvements so that the amount of the post-ordinance credit created by such construction, funding or contribution is in excess of the development impact fee which would have been otherwise due and owing, the developer shall be reimbursed for such excess contribution, funding, or contribution from, and to the extent that, funds from development impact fees for the same category of system improvements located in the service area which has benefited by such improvements are available, provided such system improvements are included in the capital improvements program of the comprehensive development plan. A developer who is a party to such a contract may apply for reimbursement only after completing all buildings or other private improvements shown on any approved or proposed plans of that developer within the service area and thereby exhausting all available development impact fee credit opportunities. The city shall reimburse the developer within 180 days after the date development impact fees from other development in the service area are received by the department of finance.

(e)

Pre-Ordinance Credits. Credit shall be given for the present value of the construction of improvements or contribution or dedication of land or money by a developer required or accepted by the city from the developer or his predecessor in title or interest for system improvements prior to the effective date as set forth in subsection 19-1014(a)(5) ("Pre-ordinance credit") in accordance with the following requirements:

(1)

Said credits shall be applied only to development impact fees otherwise due for future development within the same service area and within the same category of system improvements.

(2)

All other requirements of this section 19-1014 are met.

(3)

The director shall deduct from the present value of the pre-ordinance credit the present value of the development impact fee that would have been charged for buildings or improvements within the project had this chapter been in effect on the date that the building permit(s) for construction of said buildings or improvements was filed, provided that said deductions will apply only to buildings or improvements for which a building permit was issued within ten years prior to the effective date.

(4)

The time for the director to deduct from the present value of the development impact fee the present value of the development impact fee that would have been charged for buildings or improvements within the project had this chapter been in effect on the date that the building permit(s) for construction of said buildings or improvements was filed and which is limited by subsection 19-1014(e)(4) to permits filed prior to ten years from the effective date is extended until March 26, 2007.

(f)

Abandonment of Building Permit. In the event that a developer pays a development impact fee and then abandons the building permit or other permit to which it was appurtenant without constructing the building or other improvement, the developer shall receive credit for the present value of any development impact fees paid. These credits shall be available only for use in payment of future development impact fees for the same lot or parcel of land for which they were originally paid.

(Code 1977, § 19-1014; Ord. No. 2003-13, §§ 1, 2, 2-25-03; Ord. No. 2003-109, §§ 1, 2, 12-9-03)

State law reference

Credits for certain construction, O.C.G.A. § 36-71-7.