A. If the city fails to expend or encumber the PIFs within 10 years of when the fees were paid, the current owner of the property on which PIFs have been paid may receive a refund of such fees. In determining whether PIFs have been expended or encumbered, PIFs shall be considered expended or encumbered on a first in, first out basis.

B. The city shall notify potential claimants by first class mail deposited with the United States Postal Service at the last known address of such claimants of the availability of a refund. A potential claimant or claimants must be the owner of record of the real property against which the PIF was assessed.

C. Property owners seeking a refund of PIFs 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 PIFs for which no application for a refund has been made within this one-year period shall be retained by the city and expended on the appropriate system improvements.

E. Refunds of PIFs or offsets against subsequent PIFs under this section shall include any interest earned on the PIFs by the city.

F. When the city seeks to terminate any or all components of the PIF program, all unexpended or unencumbered funds from any terminated component or components, including interest earned, shall be refunded pursuant to this section. Upon the finding that any or all 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 within the city at least two times and shall notify all potential claimants by first class mail at the last known address of the claimants. All funds available for refund shall be retained for a period of one year after the second publication. At the end of one year, any remaining funds shall be retained by the city, but must be expended for the appropriate public facilities. This notice requirement shall not apply if there are no unexpended or unencumbered balances within the account or accounts being terminated.

G. The city shall also refund to the current owner of property for which PIFs have been paid all PIFs paid, including interest earned on the PIFs, if the development activity for which the PIFs were imposed did not occur; provided, however, that, if the city has expended or encumbered the PIFs in good faith prior to the application for a refund, the director can decline to provide the refund. If, within a period of three years, the same or subsequent owner of the property proceeds with the same or substantially similar development activity, the owner can petition the director for an offset in the amount of the fee originally paid and not refunded. The petitioner must provide receipts of PIFs previously paid for a development activity of the same or substantially similar nature on the same real property or some portion thereof. The director shall determine whether to grant an offset, and the determinations of the director may be appealed pursuant to the procedure in LMC 3.107.180. (Ord. 3288 § 3, 2018)