7.197 Local Improvements – Deferral of Assessment Payment – Eligibility Based on Delay of Benefit

7.197 Local Improvements – Deferral of Assessment Payment – Eligibility Based on Delay of Benefit.

(1) As used in this section, “undeveloped real property” means a single parcel of land or several contiguous parcels of land in single ownership with an area free of permanent structures capable of being divided into four or more developable lots.

(2) Collection of the portion of the street construction assessment representing the costs in excess of that for a 28-foot street may be deferred if:

(a) The real property is located in an R-1 zone and is undeveloped property; or

(b) The real property is in any other zone but is used for an owner-occupied single-family dwelling. (If the property has the potential for development as more than one lot, deferral will be allowed only on the portion where the dwelling is located, including minimum side yard setbacks.)

(3) Collection of a portion of an assessment for improving an alley may be deferred when real property specifically benefited by the improvement is the site of only an owner-occupied single-family dwelling and structures accessory thereto, and is located in a zone other than AG or R-1. The portion of the assessment which is to be deferred may not exceed the difference between the amount of the assessment as it is computed on the basis of the zone on which the property is located and the amount as it would be computed if the property were in an AG or R-1 zone.

(4) Collection of an assessment for construction of a new street opened through action of the council may be deferred when the abutting real property does not have driveway access to the street and is not developed for a purpose which makes use of the street.

(5) Collection of a sewer improvement assessment may be deferred when a sanitary sewer or a storm sewer trunk line is installed across or adjacent to undeveloped real property which is located within 160 feet of the sewer, which has not been subdivided, which does not have access to a sanitary sewer lateral system, and which is located more than 160 feet away from a dedicated road or street.

(6) Collection of an assessment for construction of a sanitary sewer service line may be deferred if:

(a) The service connection will not be used until a subdivision occurs;

(b) Installation with a paving project will eliminate a future street cut; or

(a) Collection of a street construction assessment may be deferred if:

1. A funding source is available from a public entity or any other source approved by the council at the time the project is initiated that will provide the city with sufficient funds to ensure no initial cost to the city or affected property owners for the construction;

2. The council finds that the deferral is consistent with council goals and policies, and otherwise is in the public interest; and

3. The real property is located inside the Urban Growth boundary, is capable of being divided into four or more developable lots, is not part of a phased development, and consists of a vacant or partially developed parcel with over 200 feet of street frontage.

(b) A deferral under this subsection shall terminate:

1. Upon the sale of the property or transfer of ownership, except sales or transfers between persons related by blood, marriage, or adoption;

2. Upon initiation of subdivision platting of the real property; or

3. Upon issuance of a building permit that would intensify the level of use of the property.

Upon termination of the deferral, the owner of the real property shall thereupon be required to pay the assessment according to the terms in the original assessment ordinance.

(c) Nothwithstanding a deferral granted under this subsection, the owner of any real property affected by the deferral may elect to pay the assessment at the time it is levied, in the manner provided in section 7.190 of this code.

(d) Following full payment of the assessment, the public entity or other source providing the temporary funds for construction of the improvement shall be reimbursed the amount it had provided.