(1) As used in this section and in the definition of “Qualified public improvements” in section 7.010, the word “contiguous” means: in a public way which abuts.

(2) When development occurs which does not change the use of a building in its entirety and which must pay a system development charge under section 7.705 of this chapter, the system development charge for the existing use(s) shall be calculated and if it is less than the system development charge for the proposed use(s), the difference shall be the system development charge. If the change in use results in the system development charge for the proposed use being less than the system development charge for the existing use, no system development charge shall be required; however, no reimbursement or credit shall be given and an administrative charge shall be imposed.

(3) When development occurs that demolishes an entire building or will change the use(s) of a building in its entirety and which must pay a system development charge under section 7.705 and/or an administrative charge per the SDC methodology adopted under section 7.710 of this chapter, the system development charge for the previous most intense verifiable use per system (i.e. parks, stormwater, transportation, wastewater) shall be calculated and if it is less than the system development charge for the proposed use, the difference shall be the system development charge. If the change in use results in the system development charge for the proposed use being less than the system development charge for the previous most intense verifiable use per system, no system development charge shall be required for that system; however, no reimbursement or credit shall be given and an administrative charge shall be imposed.

(4) A credit shall be given for the cost of a qualified public improvement associated with a development. The credit provided for by this subsection shall apply only to the improvement fee imposed for the type of improvement being constructed, and shall not exceed the improvement fee even if the cost of the capital improvement exceeds the applicable improvement fee. Credit may be granted only for the cost of that portion of such improvement that exceeds the government unit’s minimum standard facility size or the capacity needed to serve the particular development project or property.

(5) The methodology may provide for a credit against the public improvement fee, the reimbursement fee, or both, for a capital improvement constructed as part of the development that reduces the development’s demand upon existing capital improvements or the need for future capital improvements or that would otherwise have to be constructed at city expense under the then-existing council policies.

(6) Except to the extent that a capital improvement for which a credit is given is part of the phasing of a larger project and that the credit received against the systems development charge is greater than the charge for the phase where the capital improvement is constructed, credit shall not be transferable from one development to another.

(7) Credit shall not be transferable from one type of capital improvement to another.