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A. Any traffic impact fee payment made pursuant to this Chapter shall be subject to the following provisions:

1. The payment is required prior to building permit issuance unless the project proponent elects to defer payment utilizing the process outlined in 14.295.135. Payment for a subdivision or short subdivision shall be made prior to the recording of the final plat, provided that if no building permit will be associated with a change in occupancy or conditional use permit, then payment is required prior to approval of occupancy.

2. The payment shall be held in a reserve account and shall be expended to fund improvements on the street system.

3. An appropriate and reasonable portion of payments collected may be used for administration of this Chapter.

4. The fee payer may receive a refund of such fees, if the City fails to expend or encumber the impact fees within six (6) years of when the fees were paid or other such period of time established pursuant to RCW 82.02.070(3), for transportation facilities intended to benefit the development for which the transportation impact fees were paid, unless the City Council finds that there exists an extraordinary and compelling reason for fees to be held longer than six (6) years. Such findings shall be set forth in writing and approved by the City Council. In determining whether traffic impact fees have been encumbered, impact fees shall be considered encumbered on a first in/first out basis. The City shall notify potential claimants by first class mail deposited with the United States Postal Service at the last known address of claimants.

5. A request for a refund must be submitted by the applicant to the City in writing within ninety (90) days of the date the right to claim the refund arises, or the date that notice is given, whichever is later. Any traffic impact fees that are not expended within these time limitations, and for which no application for a refund has been made within this ninety (90) day period, shall be retained and expended on projects identified in the Transportation Facilities Plan. Refunds of traffic impact fee payments under this subsection shall include interest earned on the impact fees.

B. Credit for offsite improvements.

1. Offsite improvements include construction of improvements to mitigate an arterial unit in arrears and/or specific inadequate street condition locations.

2. If a developer chooses to construct improvements to mitigate an arterial unit in arrears or inadequate street condition problem, and the improvements constructed are part of the cost basis of any traffic impact fee imposed under this Chapter to mitigate the development’s impact on the future capacity of City streets, the cost of these improvements will be credited against the traffic impact fee amount.