A. Purpose. The purpose of this section is to adopt an infill incentive program to encourage development and redevelopment within the city’s downtown urban village established in BMC 20.37.210 and the old town overlay district established in BMC 20.35.060 by providing a partial reduction of system development charges and permit fees for eligible projects.

B. Definitions. The following definitions apply throughout this section:

“Development charges” means all planning and permit fees, including, but not limited to, the public works, building, mechanical, plumbing, electrical, land use and fire permit fees established in Chapter 14.32 BMC and Resolutions 2004-20, 2005-28, 2006-40, 2007-23, 2007-26, 2009-26, and 2011-18, as amended, and all system development charges established in BMC 15.08.250, 15.12.175, and 15.16.030.

“Director” means the director of the city of Bellingham planning and community development department.

“Eligible project” means a major construction project or major renovation project located within the downtown district urban village established in BMC 20.37.210 or old town overlay district established in BMC 20.35.060; provided, that the project is consistent with the applicable urban village plan and development regulations.

“Major construction project” means construction of a new building with at least three stories or 35 feet in height as defined in BMC 20.08.020.

“Major renovation project” means construction of improvements to a building existing as of the date of adoption of the ordinance codified in this section of at least 10,000 total square feet and two stories in height where the cost of construction is reasonably anticipated to exceed 50 percent of the assessed value of the existing building.

“Program allocation” means the amount of general fund money allocated to the infill incentive program by city council through the budget process for fiscal years 2016, 2017, and 2018. The term also includes any funds allocated to the infill incentive program that remain unencumbered at the end of 2018 and that are reappropriated by city council through the budget for expenditure in subsequent years.

C. Program Allocation. City council shall determine, through the budget process, the amount of general fund money to be allocated in 2016, 2017, and 2018 to pay the cost of the infill incentive program. Any funds allocated to the program during the budget process that remain unencumbered at year end may be reappropriated to the program for expenditure in subsequent years.

D. Term. The infill incentive program established through this section shall commence January 1, 2016, and expire December 31, 2018; provided, that the infill incentive program shall extend beyond December 31, 2018, for the limited purpose of administering any funds remaining in the program allocation.

E. Application for Infill Incentive. Applications shall be made in accordance with the forms and procedures developed by the director. The director shall review and decide applications on a first-come, first-served basis.

F. Application – Review. Upon application by the developer, the director shall grant a partial exemption of 50 percent of development charges applicable to the project; provided, that the following requirements are met:

G. Vesting. Exemptions granted under this section shall vest upon execution of an infill incentive contract signed by the applicant and the director, and approved as to form by the office of the city attorney, which establishes benchmarks for project completion and allows the director to revoke any exemption granted under this section if established benchmarks are not met. The base amount of applicable development charges shall be determined on the date such charges are due and payable, without regard to the date the exemption vested.

H. Administrative Procedures. The director may establish administrative procedures for the implementation of this section. These procedures will include an annual report to city council on the program’s effectiveness. [Ord. 2015-12-048 § 1].