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17.13.070 SDC Credits and SDC Reimbursements.

(Amended by Ordinance Nos. 172732, 172758, 173386, 174617, 181669 and 187150, effective July 1, 2016.)  SDC Credits:

A.  The City shall grant a Credit against the Parks SDC, which is otherwise assessed for an New Development, for any Qualified Public Improvement(s) constructed or conveyed as part of that New Development.  For purposes of this section, a Qualified Public Improvement will be considered part of a New Development when the application for a credit is made and the New Development is identified by a Building Permit Number. The Applicant bears the burden of evidence and persuasion in establishing entitlement to an SDC Credit and to a particular value of SDC Credit.

B.  To obtain an SDC Credit, the Applicant must specifically request a Credit prior to the City’s completion of the final inspection for the new Development.  In the request, the Applicant must identify the improvement(s) for which Credit is sought and explain how the improvement(s) meet the requirements for a Qualified Public Improvement.  The Applicant shall also document, with credible evidence, the value of the improvement(s) for which Credit is sought.  If, in the Administrator’s opinion, the improvement(s) is a Qualified Public Improvement, and the Administrator concurs with the proposed value of the improvement(s), an SDC Credit shall be granted.  The value of the SDC Credits under this section shall be determined by the Administrator based on the cost of the Qualified Public Improvement, or the value of Real Property Interests, as follows:

1.  For Real Property Interests, the value shall be based upon a written appraisal of fair market value by a qualified, professional appraiser based upon comparable sales of similar property between unrelated parties in an arms-length transaction;

2.  For improvements yet to be constructed, value shall be based upon the anticipated cost of construction.  Any such cost estimates shall be certified by a professional architect or engineer or based on a fixed price bid from a contractor ready and able to construct the improvement(s) for which SDC Credit is sought.  The City will give immediate credits based on estimates, but it will provide for a subsequent adjustment based on actual costs: a refund to the Applicant if actual costs are higher than estimated, and an additional SDC to be paid by the Applicant if actual costs are lower than estimated.  The City shall inspect all completed Qualified Public Improvement projects before agreeing to honor any credits previously negotiated.  The City shall limit credits to reasonable costs.  Credits shall be awarded only in conjunction with an application for development;

3.  For improvements already constructed, value shall be based on the actual cost of construction as verified by receipts submitted by the Applicant;

C.  The Administrator will respond to the Applicant’s request in writing within 21 days of when the request is submitted.  The Administrator shall provide a written explanation of the decision on the SDC Credit request.

1.  The “Request for Parks SDC Credit for Qualified Public Improvement” (Form PSDC-7) and accompanying information will be sent to the Parks SDC Administration Section, who will prepare a staff report and convene the SDC Credit Review Committee.  The Committee shall be composed of representatives of the following organizations:

a.  Metropolitan Home Builders Association

b.  Coalition for a Livable Future

c.  League of Women Voters

d.  Developer-at-Large

e.  Parks Board Member or Designee

f.  Portland Business Alliance Member or Designee

If a vacancy occurs, the organization will nominate a replacement.  Members of the committee will be nominated by their respective organizations and appointed by the Director. 

2.  The Committee shall review each proposal and forward a recommendation, along with any minority viewpoints.  The Director will make a decision within 60 days of the application. 

3.  Certified copies of the decision and the Committee recommendations will be transmitted to the Auditor of the City of Portland, who will file them in a special record of such decisions.  All such decisions of the Director shall be accessible to the public under like terms as ordinances of the City of Portland.  Any decision of the Director shall be subject to amendment, repeal, or alteration by the City Council, but any such action must take place within 30 days of the decision.

D.  If the Applicant disputes the Administrator’s decision with regard to an SDC Credit request, including the amount of the Credit, the Applicant may seek an alternative SDC Credit calculation under Section 17.13.080.  Any request for an Alternative SDC Credit calculation must be filed with the Administrator in writing within 10 calendar days of the written decision on the initial Credit request.

E.  When the construction or donation of a qualified public improvement gives rise to a credit amount greater than the improvement fee that would otherwise be levied against the project receiving development approval, the excess credit may be applied against improvement fees that accrue in subsequent phases of the original development project.    For purposes of this paragraph, “subsequent phases of the original development project” means additional New Development that is approved as part of the same regulatory development approval, (such as elements approved as part of the same conditional use master plan or planned unit development) or other portions of the same “site” (as defined by PCC 33.901.030) that are explicitly defined in the application for SDC credits as subsequent phases of the original development project.  For multi-phased developments, the applicant must describe all subsequent phases at the time application is made for SDC credits and must document to the satisfaction of the SDC Administrator that the subsequent phases are integrally connected with the original development rather than independent projects.

F.  The Applicant may request that the portion of the Park SDC credit relative to the Non-Local Access portion of the SDC fee be applied to their development anywhere within the City.  The proportional breakdown of Local Access portion to Non-Local Access portion is 43 percent Local Access and 57 percent Non-Local Access.

G.  Parks and Recreation SDC Credits are void and of no value if not redeemed with the City for payment of a Parks and Recreation SDC within 10 years of the date of issuance.

H.  Notwithstanding any other provisions of this section, with respect to conveyances of Real Property Interests specified in development agreements adopted before June 21, 2000, the value of the credit will be 25 percent of the appraised value of the Real Property Interest.