§ 49-84. Development agreements.

Development Agreements containing provisions regarding Development Fees, Development Fee Credits, and/or disbursement of revenues from Development Fee accounts shall comply with the following:

(a)

Development Agreement Required. A Development Agreement is required to authorize any of the following:

(1)

To issue Credits before the City's acceptance of a Water or Wastewater Capital Facility.

(2)

To allocate Credits to a parcel that is not contiguous with the Subject Development and that does not meet the requirements of Section 49-83(d)(7) of this Article.

(3)

To reimburse the developer of a Water or Wastewater Capital Facility using funds from Development Fee accounts.

(4)

To allocate different Credit amounts per EDU to different parcels within a Subject Development.

(5)

For a Single-Family Residential Dwelling Unit, to allow Development Fees to be paid at a later time than the issuance of a building permit as provided in this Section.

(b)

General Requirements. All Development Agreements shall be prepared and executed in accordance with A.R.S. § 9-500.05 and any applicable requirements of the City Code. Except where specifically modified by this Section, all provisions of Section 49-83 of this Article shall apply to any Credit Agreement that is authorized as part of a Development Agreement.

(c)

Early Credit Issuance. A Development Agreement may authorize the issuance of Credits before acceptance of a Water or Wastewater Capital Facility by the City when the Development Agreement specifically states the form and value of the security (i.e. bond, Letter of Credit, etc.) to be provided to the City before issuance of any Credits. The City shall determine the acceptable form and value of the security to be provided.

(d)

Non-Contiguous Credit Allocation. A Development Agreement may authorize the allocation of Credits to a non-contiguous parcel only if all of the following conditions are met:

(1)

The non-contiguous parcel is in the City Service Area.

(2)

The non-contiguous parcel receives Water or Wastewater Services from the eligible Capital Facility.

(3)

The Development Agreement specifically states the value of the Credits to be allocated to each parcel and/or EDU, or establishes a mechanism for future determination of the Credit values.

(e)

Uneven Credit Allocation. The Development Agreement must specify how Credits will be allocated amongst different parcels on a per-EDU basis, if the Credits are not to be allocated evenly. If the Development Agreement is silent on this topic, all Credits will be allocated evenly amongst all parcels on a per-EDU basis.

(f)

Use of Reimbursements. Funds reimbursed to developers from development fee accounts for construction of a Water or Wastewater Capital Facility or Water Supply acquisition must be utilized in accordance with applicable law for the use of City funds in construction or acquisition of Capital Facilities, including any procurement requirements in A.R.S. § 34-201 et seq.

(g)

Deferral of Fees. A Development Agreement may provide for the deferral of payment of Development Fees for a residential development beyond the issuance of a building permit; provided that a Development Fee may not be paid later than fifteen (15) days after the issuance of the certificate of occupancy for that Dwelling Unit. The Development Agreement shall provide for the value of any deferred Development Fees to be supported by appropriate security, including a surety bond, letter of credit, or cash bond.

(h)

Waiver of Fees. If the City agrees to waive any Development Fees assessed on development in a Development Agreement, the City shall reimburse the appropriate Development Fee account for the amount that was waived. Reimbursement funds will be drawn from the City's General Fund.

(i)

No Obligation. Nothing in this Section obligates the City to enter into any Development Agreement or to authorize any type of Credit Agreement permitted by this Section.

(Ord. No. 4130, § 3(Res. No. 9620, § 1, Exh. A), 2-25-14, eff. 7-1-14)