A. If the city fails to expend or encumber impact fees paid by a property owner under this chapter within 10 years of payment, or within such other time periods pursuant to ACC 19.04.090 where extraordinary or compelling reasons exist, the current owner of the property for which the impact fees were paid may receive a refund of the fees. Impact fees shall be considered expended or encumbered on a first-in, first-out basis, unless any party voluntarily elects to use the alternative fee payment method in ACC 19.04.040. If electing the alternative fee payment method, the party shall waive any right to recover transportation fees not expended or encumbered within the above time frames.

B. The city shall notify potential refund claimants by first class mail deposited with the United States Postal Service at the last known address of such claimants. A potential claimant or claimant must be the owner of the property.

C. Owners seeking a refund of impact fees must submit a written request for a refund of the fees to the director within one 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 this one-year period shall be retained by the city and expended on appropriate transportation system improvements.

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

F. If and when the city seeks to terminate any or all components of the transportation impact fee program, all unexpended or unencumbered funds from any terminated component or components, including interest earned, shall be refunded pursuant to this section. If any fee requirements are to be terminated, the city shall place notice of such termination and the availability of refunds in a newspaper of general circulation at least two times and shall notify all potential claimants by first class mail to their last known address. All funds available for refund shall be retained for a period of one year. At the end of one year, any remaining funds shall be retained by the city, but must be expended for appropriate transportation system improvements. This notice requirement shall not apply if there are no unexpended or unencumbered balances within an account or accounts being terminated.

G. The city shall also refund to the developer of property for which impact fees have been paid all impact fees paid, including interest earned on the impact fees, if the development activity for which the impact fees were imposed did not occur. (Ord. 6792 § 1 (Exh. A), 2020; Ord. 6341 § 3, 2011; Ord. 5763 § 1, 2003; Ord. 5506 § 1, 2001.)