Ordinance 05-010 Authorizes Assessment Reimbursement Area CITY OF SPOKANE VALLEY
SPOKANE COUNTY, WASHINGTON
ORDINANCE NO. 05-010
AN ORDINANCE OF THE CITY OF SPOKANE VALLEY, SPOKANE
COUNTY, WASHINGTON, ADOPTING CONDITIONS f'O.k AVITHOKI:%,IiNG
ASSESSMENT REIMBURSEMENT AGREEMENTS PURSUANT TO RCW 35.72
FOR THE CITY OF SPOKANE VALLEY.
WHEREAS, the City of Spokane Valley (hereinafter "the City") may require that improvements
to the City's infrastructure be constructed as a result of certain developments by the owners of said
developments pursuant to RCW 35.72; and
WHEREAS, the City has adopted an Interim Comprehensive Plan that requires that infrastructure
needs must be provided concurrent with new development; and
WHEREAS, RCW 36.70A, the Growth Management Act, requires that communities such as
Spokane Valley ensure that infrastructure needs are provided concurrent with new development; and
WHEREAS, the City desires to provide a mechanism that ensures some certainty for how new
infrastructure needs can be provided.
NOW THEREFORE, the City Council for the City of Spokane Valley, Spokane County,
Washington, ordains as follows:
Section 1. Purpose. The purpose and intent of this Ordinance is to establish a mechanism
whereby public or private entities that participate financially in providing needed infrastructure
improvements can receive reimbursement from other benefiting properties.
Section 2. Creation of New Chapter Providinz for Assessment Reimbursement Agreements
pursuant to RCW 35.72. The City of Spokane Valley adopts a new chapter to the Spokane Valley
Municipal Code, 3.75 entitled "Assessment Reimbursement Agreements," which is set forth as follows:
3.75.010 Traffic impact mitigation required. The development of real property can
create traffic impacts that result in a traffic facility(s) 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.
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.
•
Ordinance 05-010 Reimbursernent District Page 1 of 4
B. A reimbursement agreement may provide for the partial reimbursement to the owner or
the owner's assigns for a period not to exceed fifteen (15)years of a portion of the costs of the project by
other property owners who:
I. Are determined to be within the assessment reimbursement area pursuant to
Spokane Valley Municipal Code Section 3.75.030;
2. Are determined to have a reimbursement share based upon a benefit to the
property owner pursuant to Spokane Valley Municipal Code Section 3.75.030;
3. Did not contribute to the original cost of the street mitigation project; and
4. Subsequently develop their property within the fifteen-year (15) 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.
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
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.
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 assessnicnts, 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 ten (10)clays
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 10.35 of
the Spokane Valley Municipal Code. The City Council's ruling shall be determinative and final.
Ordinance 05-010 Reimbursement District Page 2 of4
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 SIIMC 3.75.040(A) shall apply to this subsection. No improvements
that benef t 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 sxmc manner as owners of real property who
participate in an improvement project and request a reimbursement agreement. Authority of the City 10
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.
175,060 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 preliminai ' 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.
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. Igor 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_
3.75.080 Title to Improvement Hurl Assi nrr�ent rrf 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 deriver a reimbursement charge, the same shall be held by the
City for a period of two (2) 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.
3.5.090 Tender of Charges. When the City has received a reimbursement charge, it
l+riII forward the. funds to the holder of the reimbursement agreement within thirty (30) clays of receipt_
Funds received by negotiable instrument, such as check, will be deemed received ten (10) days after
deliver to the City.
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
ordinance 05-010 Reimbursement District Page 3 of 4
the real property owned by the party paying the reimbursement charge, within thirt:y (30) days of receipt
of the funds.
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(5%)of
the total amount to be collected. This administrative fee shall be calculated into the amount of
reimbursement to be paid by the non-party 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$1,000.00. The said processing fee shall be credited against the total 5% fee. The 5% fee
shall be collected by deduction from each individual reimbursement charge payment and the balance
shall be forwarded to the developer.
Section 3. Severability. If any section, subsection, sentence or clause of this chapter is for
any reason held to be invalid, such decision shall not affect the validity of the remaining provisions of
this chapter.
Section 4. Additional Provisions. The provisions of this chapter shall be in addition to and
not a substitute for or limited by any other applicable laws.
Section 5. Effective Date. This Ordinance shall become effective five days after
publication of the ordinance, or a summary thereof, in the official newspaper of the City.
Adopted this 8'11 day of March, 2005.
City of Spokane Valley
Oi WQ1L(Akke
Mayor,Diana Wilhite
ATTEST:
M~/
Clerk,Christine Bainbridge /
Ap roved as to Form:
/
Depu • 'ity Attome, ary P. Driskell
Published Date: .3 —7,43--
Effective Date:
Ordinance 05-010 Reimbursement District Page 4 of 4