A. Any Developer who, because of the nature or type of uses proposed for a Development Project, contends that application of this Fee is unconstitutional or unrelated to mitigation of the burdens of the Development Project may apply to the City Manager, in writing, for a modification or reduction of the Fee. The application shall state in detail the factual basis for the claim of modification or reduction. The City Manager shall issue a decision within 10 business days of receipt of the application for Fee modification or reduction. The requested modification or reduction shall be considered denied by the City Manager if a decision is not issued within 10 business days. The decision of the City Manager may be appealed to the City Council. Unless the requirement for timely filing is waived by the City, the appeal shall be made in writing and filed with the City Clerk not later than 10 business days after issuance of the City Manager’s decision. The appeal shall state in detail the factual basis for the claim of modification or reduction. The City Council shall consider the application at a public hearing on same, notice of which shall be provided directly to the appellant, but need not be published other than by description on the agenda of the meeting at which the public hearing is held. The City Council shall make reasonable efforts to hold the public hearing within 60 days of the filing of the appeal. The decision of the City Council shall be final. If a reduction or modification is granted, any change in use within the Development Project shall subject the Developer to payment of the Fee of the new use. The procedure provided by this section is additional to any other procedure authorized by law for protesting or challenging the Fee imposed by this chapter.

B. A Development Project, which is designated and intended as a temporary use (10 years or less) and which is conducted in facilities which are, by their natures, short-term interim facilities such as a portable or modular building (including mobile homes, trailers, etc.) may qualify for a waiver or reduction, as determined by the City Manager or designee. The City Manager’s or designee’s determination may be appealed to the City Council pursuant to subsection (A) of this section.

C. A deferral of the Fee may be granted if the City Manager, or designee, reasonably determines in his or her sole discretion that one of the following circumstances exists: (1) the Developer has demonstrated an economic hardship or funding sequencing challenge; or (2) the project offers a public benefit. The deferral shall only be granted if the City Manager or designee determines that: (1) the amount deferred will bear interest at a fair market rate, such that the City will receive an amount that is equal to, or greater than, the total amount of Fees owed prior to the deferral; and (2) the amount deferred is adequately secured by a written agreement with the applicant, the terms of which shall be subject to approval of the City Manager.

D. Any Developer who proposes the construction of a new hotel/motel, which does not otherwise receive an economic subsidy from the City, may apply to the City for a deferral and/or reduction of the Fee based on the nature of the hotel/motel.

A deferral pursuant to this subsection may be granted for a period of up to four years from the certificate of occupancy for the Development Project. The deferral period shall begin upon the issuance of a temporary certificate of occupancy, as applicable. The total amount deferred shall be secured through a written agreement between the City and the Developer, the terms of which shall be subject to approval of the City Manager.

E. At a minimum, deferral agreements pursuant to subsections (C) and (D) of this section shall require the following: