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Ordinance 1656 - Amends Ordinance 1587 - Establishes Procedure for Contributions in Lieu of Impact Fee Payments to Fund Capital ImprovementsORDINANCE NO. 1656 AN ORDINANCE AMENDING PORTIONS OF ORDINANCE 1587 ENACTED ON OCTOBER 16, 2006 CODIFIED AS KALISPELL CITY CODE 8-32 AUTHORIZING AND ESTABLISHING THE PROCEDURE FOR CONTRIBUTIONS IN LIEU OF IMPACT FEE PAYMENTS TO FUND CAPITAL IMPROVEMENTS IN THE CITY OF KALISPELL AND DECLARING AN EFFECTIVE DATE. WHEREAS, Montana state law at MCA 7-6-1601 through 7-6-1604 authorizes the establishment and imposition of impact fees by municipalities to fund capital improvements made necessary by new demand on public facilities; and WHEREAS, an impact fee represents a fee for service payable by all users creating additional demand on a city facility; and WHEREAS, the Kalispell City Council enacted Ordinance 1587 on October 16, 2006 that authorized and established, among other things, the procedures for contributions in lieu of impact fee payments to fund capital improvements in the City of Kalispell; and WHEREAS, it is the finding of the City Council that it is in the best interests of the City of Kalispell that certain impact fees be imposed to fund capital improvements and that current established procedures be amplified to ensure compliance with state law. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF KALISPELL, MONTANA, THAT THE KALISPELL CITY CODE BE AMENDED TO READ AS FOLLOWS: SECTION I. 8-32 Contributions in Lieu of Impact Fee Payments - Offsets. A. Offsets against the amount of a development impact fee due from a new development shall be provided for contributions made or to be made in the future by the affected property owner in cash, or by dedication of land, or by actual construction of all or part of a public facility or public facilities identified in an adopted CIP and meeting or exceeding the demand generated by the new development. B. The amount of any excess contribution shall be determined by the Director of Public Works and the Director of Finance upon receipt of an application form requesting an offset; provided, however, that (a) the City will make no reimbursement for excess contributions unless and until the particular development impact fee account has sufficient revenue to make the reimbursement without overdrawing the account or jeopardizing the continuity of the City's Capital Improvements Program; and (b) the excess contribution may not be transferred or credited to any other types of development impact fees calculated to be due from that development for other types of public facilities. The determination of the eligibility for and the amount of the offset shall be made by the Director of Public Works and the Director of Finance, based on the fair market value of the proposed dedication, construction, or contribution, as established by appraisals and construction receipts or construction bids, as applicable. If the applicant contends that any aspect of the City`s decision constitutes an abuse of discretion, the applicant shall be entitled to appeal pursuant to Kalispell City Code 8-33. C: Offsets for dedication of land or provision of public facilities shall be applicable only as to development impact fees imposed for the same types of public facilities that are proposed to be dedicated or provided. Even if the value of the dedication of land or provision of a public facility exceeds the development impact fee due for the type of public facility, the excess value may not be transferred to development impact fees calculated to be due from the applicant for other types of public facilities for which development impact fees may be imposed. Offsets for excess capacity may, however, be transferred to the same applicant or to other applicants for new development that creates a demand for the same type of public facility and which development impact fees are due pursuant to this Chapter. D. Any offset or reimbursement shall be pursuant to a duly executed development agreement. E. No offsets shall be given for the construction of local on -site facilities, structures, improvements, or other project improvements required by zoning, subdivision, or other city, state or federal regulations unless the improvement is identified in the Capital Improvement Program or there is a finding that the proposed improvements meet the same need as improvements identified in the Capital Improvements Program. SECTION II. This Ordinance shall be effective thirty (30) days from and after the date of its final passage and approval. PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR THIS 23RD DAY OF MARCH, 2009. Pamela B. Kenne y Mayor ATTEST: Theresa White City Clerk