A. If the school district fails to expend or encumber the impact fees within ten years of when the fees were paid, or where extraordinary or compelling reasons exist, such other time periods established pursuant to LMC 14.25.120, 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 shall be considered expended or encumbered on a first in, first out basis.

B. The city shall notify claimants by first class mail deposited with the United States Postal Service at the last known address of such claimants. The potential claimant must be the current owner of record of the property for which the impact fee was paid.

C. Current owner(s) seeking a refund of impact fees must submit a written request for a refund of the fees to the school district within one year of the date that 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 by the claimant within this one year period shall be retained by the school district and expended on the appropriate public facilities. Claimants shall have no right to refund if not timely requested pursuant to subsection C of this section.

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

F. 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, shall be refunded pursuant to this section. Upon the finding that any or all fee requirements are to be terminated, the city shall place notice of such termination and the availability of refunds in the newspaper of general circulation at least two times and shall notify all potential claimants by first class mail at the last known address of the claimants. All funds available for refund shall be retained for a period of one year. At the end of one year, any remaining funds shall be retained but must be expended for the appropriate public facilities. This notice requirement shall not apply if there are no unexpended or unencumbered balances within an account or accounts being terminated.

G. The school district shall also refund the current owner of property for which impact fees have been paid all impact fees paid, including interest earned on the impact fees, if the development activity for which the impact fees were imposed did not occur; provided that if the school district has expended or encumbered the impact fees in good faith prior to the application for a refund, the school district can decline to provide the refund. If within a period of three years, the same or subsequent owner of the property proceeds with the same or substantially similar development activity, the owner can petition the school for an offset against the actual impact fee amounts paid. The petitioner must provide receipts of impact fees previously paid for a development of the same or substantially similar nature on the same property or some portion thereof. In the case of school district impact fees, the school district shall forward its determination to the director, and the director may adopt the determination of the school district and may grant or decline to grant an offset, or the director may make an alternative determination and set forth rationale for the alternative determination. Determinations of the director shall be in writing and shall be subject to the appeals procedures set forth in LMC 14.25.110(A). (Ord. 1507 §7 (part), 2017).