A. If the City fails to expend or encumber the impact fees within ten (10) years of payment (or where extraordinary or compelling reasons exist, such other time periods as established pursuant to Section 21.03.090), the current owner of the property for which impact fees have been paid may receive a refund of the fee. In determining whether impact fees have been expended or encumbered, impact fees shall be considered expended or encumbered on a first-in, first-out basis.

B. The City shall notify potential claimants by first class mail deposited with the United States Postal Service at the last known address of such claimants.

C. Property owners seeking a refund of impact fees must submit a written request for a refund of the fees to the Director within one (1) year of the date the right to claim the refund arises or the date that notice is given, whichever is later.

D. Any impact fees for which no application for a refund has been made within the one (1) year period shall be retained by the City and expended on the appropriate public facilities.

E. Refunds of impact fees under this chapter shall include any interest earned on the impact fees by the City.

F. If the City terminates the impact fee program, all unexpended or unencumbered funds, including interest earned, shall be refunded pursuant to this chapter. The City shall publish notice of the termination and the availability of refunds in a newspaper of general circulation at least two (2) times and shall notify all potential claimants by first class mail to the last known address of the claimants. All funds available for refund shall be retained for a period of one (1) year after the second publication. At the end of one (1) year, any remaining funds shall be retained by the City, but must be expended for the appropriate public facilities. This notice requirement shall not apply if there are no unexpended or unencumbered balances within the account.

G. The City shall refund the impact fee paid plus interest to the current owner of property for which the impact fee had been paid, if the development was never completed or occupied; provided, that if the City expended or encumbered the impact fee in good faith prior to the application for a refund, the Director may decline to provide the refund. If, within a period of three (3) years, the same or subsequent owner of the property proceeds with the same or substantially similar development, the owner can petition the Director for an offset. The petitioner shall provide receipts of impact fees previously paid for a development of the same or substantially similar nature on the same property or some portion thereof. The Director shall determine whether to grant an offset, and the determinations of the Director may be appealed pursuant to the procedures in Section 21.03.140. (Ord. 3037, 10/24/23)