A. If the city or a district fails to expend or encumber the impact fees within the period established by Chapter 82.02 RCW, or where extraordinary or compelling reasons exist and have been identified in written findings by the City Council, the current owner of the property on which impact fees have been paid may receive a refund of such fees. In determining whether impact fees have been expended or encumbered, impact fees will be considered expended or encumbered on a first-in, first-out basis.

B. The city will notify potential claimants by first-class U.S. mail to the last known address of such claimants. Fees are identified with land parcels; therefore, a potential claimant or claimant must be the owner of the property at the time refunds are initiated.

C. Current owners seeking a refund of impact fees 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 impact fees for which no application for a refund has been made within this one-year period will be retained and expended on a related type of public facility for which the fees were originally collected.

E. Refunds of impact fees under this section will include any interest earned on the impact fees.

F. Per RCW 82.02.080(2), when the city seeks to terminate any or all components of the impact fee program, all unexpended or unencumbered funds from any terminated component or components, including interest earned, will be refunded pursuant to this section. Upon the finding that any or all fee requirements are to be terminated, the city will place notice of such termination and the availability of refunds in a newspaper of general circulation at least two times and will notify all potential claimants by first-class mail at the last known address of the claimants. All funds available for refund will be retained for a period of one year. At the end of one year, any remaining funds will be retained by a district, but must be expended for the appropriate facilities. This notice requirement will not apply if there are no unexpended or unencumbered balances within the account or accounts being terminated.

G. The city will also refund to the current owner of property for which impact fees have been paid all impact fees paid, including interest earned on the impact fees, when the developer does not proceed with the development activity and no impact has resulted; except that, if a district has expended or encumbered the impact fees in good faith prior to the application for a refund, the district can decline to provide the refund. (Ord. 3022 § 4 (Att. A), 2018)