9-2-3-7: SUBDIVIDER REIMBURSEMENT AGREEMENTS:
A. Prior to the extension or construction of any public improvement or facility that is not entirely within the subdivision and for which the subdivider expects to receive reimbursement for part or all of the costs of the extension or construction (off site improvements), the subdivider shall enter into a public improvement extension agreement with the town. The agreement shall contain a description of the improvement(s) to be constructed or extended, the legal description of the real property adjacent to the subdivider's improvements (adjacent properties), the names and addresses of the current owners of the adjacent properties from whom reimbursement is sought (adjacent property owners), the terms of the reimbursement to the subdivider, which terms shall not be inconsistent with this section, and an agreement by the subdivider to provide to the town within sixty (60) days after the date of preliminary construction acceptance by the town, its actual costs for such work.
B. The agreement shall also include the following provisions:
1. The term of the agreement shall be fifteen (15) years from the date of the agreement, or until the subdivider has received reimbursement for the total reimbursement entitlement established by the agreement (plus any cost of living adjustment as hereinafter described), whichever shall first occur.
2. If at any time within the term of the agreement, a development or building permit is issued by the town for the construction of development or improvements upon any adjacent property which results in new improvements on the adjacent property being connected to, or served by, the off site improvements constructed by the subdivider, the town shall collect from the adjacent property owner at the time of the issuance of the building permit an amount which the town determines in the agreement to represent the adjacent property owner's fair and equitable share of the cost of the construction or extension of the subdivider's off site improvements. The amount of such adjacent property owner's share shall be determined using a front footage basis, unless the council determines that some other basis, or combination of basis, would result in a fairer and more equitable determination in a given case.
3. The amount due from each adjacent property owner shall be subject to the adjustment to reflect changes in the cost of living between the date of the agreement and date of collection. At the time of collection by the town, the amount due from each adjacent property owner shall be multiplied by the multiplier, the numerator of which shall be the published "Consumer Price Index" for all items, "U.S. City Average For All Urban Consumers", published by the United States department of labor, bureau of labor statistics, most recently released prior to the time of collection, and the denominator of which shall be the index most recently released prior to the date of the agreement. In the event the bureau of labor statistics shall change the base period (currently 1982-84 = 100) the new index number for the month in which the agreement was executed shall be substituted for the index originally used for the denominator as provided for above. In the event the bureau of labor statistics ceases publishing the consumer price index in its current form, the town shall select a substitute index or shall determine the means for calculating any change in the cost of living between the date of the agreement and the date of collection.
C. If the subdivider fails to comply with the terms and conditions of the agreement, the subdivider shall forfeit its right to reimbursement.
D. Nothing contained in the agreement or this section shall operate to create a lien or encumbrance of any kind upon the adjacent properties.
E. The town shall pay over to the subdivider all sums collected from the adjacent property owners pursuant to the agreement as and when collected. In no event may the actual amounts so paid to the subdivider by the town exceed the total reimbursement entitlement established by the agreement (plus any applicable cost of living adjustment). After the expiration of the fifteen (15) year term, the agreement shall become null, void and of no further effect.
F. The subdivider shall construct such oversized improvements and utilities as the town determines necessary. If such oversized improvements are determined by the town not to be required to serve the subdivider's development, the cost of such oversizing shall be included within the agreement, or at the option of the town, the town shall reimburse the subdivider for the cost of the oversized portion of such improvements or utilities.
G. A person extending or constructing off site utilities or other public improvements, but not actually engaged in a subdivision of property, may also be entitled to reimbursement in accordance with the provisions of this section. (Ord. 23, Series 1992; amd. Ord. 2, Series 2020)