§ 56.10. Agreements.

Any applicant may propose to enter into a Transportation Impact Fee or Escrow Agreement with the City designed to establish just and equitable fees or their equivalent and standards of service needs appropriate to the circumstances of the proposed land use.

A.

A Transportation Impact Fee Agreement shall be limited to the following:

(1)

Alternative Calculation. 56.08 Modify the presumption of maximum transportation impact set forth in of this Chapter and provide a transportation impact fee which may differ from the rate schedule set forth in Section 56.07 of this Chapter by specifying the nature of the proposed land use for purposes of computing actual trips, provided that this Agreement for Alternative Calculation shall establish legally enforceable means for ensuring that the actual number of trips generated will not exceed the estimated trips generated by the proposed land use.

(2)

Credit. Permit or recognize the construction of specific transportation improvements within the City of Orlando, in lieu of or with a credit against the transportation impact fee assessable. Such credits will expire seven (7) years from the date of the agreement.

(3)

Transportation Impact Fee Payment. Permit a schedule and method for the payment of the transportation fees in a manner appropriate to the particular and unique circumstances of the proposed land use in lieu of the requirements for payment of the transportation impact fees as set forth in Section 56.18, provided that security is posted ensuring payment of the transportation impact fees, in a form acceptable to the City, which security may be in the form of the following:

a.

Cash bond.

b.

Letter of Credit. The City may, in its sole discretion, accept a Letter of Credit as security for payment of the transportation impact fee. The following conditions are applicable in posting Letter(s) of Credit as security:

1.

The Letter(s) of Credit must be an Irrevocable Direct-Pay Letter of Credit from a domestic financial institution rated AA/Aa or better by a national rating service, or otherwise determined acceptable by the City. The applicant has the burden of providing evidence that the financial institution issuing the Letter of Credit has the necessary rating and has the duty to notify the City or any changes in such rating that may occur.

2.

Only if the greater of fifty percent (50%) of the transportation impact fee assessed or the amount of the fee not in dispute is paid in cash, then a Letter of Credit may be used as security for the balance. Security for the balance of the transportation impact fee assessed by the City must be in the form of an Irrevocable Letter of Credit directly payable to the City and placed in escrow, pursuant to subsection B below. A Letter of Credit cannot be used to post security for the full amount of the transportation impact fee payment.

3.

Letters of Credit having a provision for expiration must specify a date of expiration that shall occur no later than ten (10) City business days following the latest contingency date provided for in the Escrow Agreement.

4.

Letter(s) of Credit shall only be allowed when the applicant desires to undertake an alternative transportation impact fee calculation (see A.(1) above) for the determination of the appropriate transportation impact fee due from the proposed project or in cases of credit (see A.(2) above), which permit or recognize the construction of specific transportation improvements in lieu of or with a credit against the transportation impact fee assessable.

5.

In lieu of negotiating and drawing on the Letter of Credit, the City's escrow agent shall have the right, after determination of the transportation impact fee amount with respect to the subject property, to collect any additional sums due directly from the developer. In the event such sums are paid in cash directly from the developer to the City's escrow agent, for subsequent disbursement to the City, then the City's escrow agent shall return the Letter of Credit to the issuing bank for cancellation.

c.

An Immediate Funded Escrow Account

(4)

Assignment. Provide for a transfer of credits as provided for in Section 56.11 of this Chapter to any successor in interest of land. An executed Credit Agreement which authorizes assignment of credits does not require a separate assignment agreement.

(5)

Permit the cost of constructing non-site related public transportation projects, as a credit against the transportation impact fee assessable. Public transportation projects may include:

a.

Dedication of parking spaces for use by public transportation users who would park their cars in the dedicated area and ride public transportation to their final destinations.

b.

Dedication of land for use as a transit terminal and transfer point.

c.

Construction of bus shelters or other capital improvements which encourage the use of public transportation.

d.

Participation by the primary employer or group of employers in an employee bus subsidy program.

e.

Participation of the employer or group of employers in ridesharing program for its employees.

f.

For d, and e, above, the applicant must describe the extent of the program and expected usage by employees. The City may record a lien against the development site to secure the assessment of any additional impact fee if the program does not result in the anticipated automobile trip reduction within three (3) years of recording.

(6)

Except for assignment of credit agreements, any agreement proposed by an applicant pursuant to this subsection shall be presented to and approved by the City Council prior to the issuance of a development permit. Any such agreement shall provide for execution by mortgagees, lien holders or contract purchasers in addition to the landowner, and shall require the applicant to record such agreement in the Official Records of Orange County. The City of Orlando City Council shall approve such an agreement only if it finds that the agreement will apportion the burden of expenditure for new facilities in a just and equitable manner, consistent with the principles set forth in Florida Statutes and case law. Credits under any such agreements will expire (7) years from the date of the agreement under which the credits are established. The Transportation Planning Division Manager or his/her designee is hereby delegated and authorized to execute credit assignment agreements on behalf of the City Council, subject to approval by the City Attorney, or his/her designee.

B.

Escrow Agreement. The Transportation Planning Division Manager or his/her designee, is hereby delegated the authority to approve and execute, subject to approval by the City Attorney, escrow agreements for the payment of Transportation Impact Fees. The Escrow Agreement shall allow the Applicant to obtain a development permit prior to payment provided adequate security is posted, as outlined in subsection A(3) above and on the condition that payment is received prior to the issuance of a certificate of occupancy for any portion of the development authorized by the Permit. Escrow Agreements are intended to allow for flexibility in payment when credits are determined. Alternative Transportation Impact Fee Calculation is conducted, cash is obtained or similar types of situations.

(Ord. of 8-25-1986, Doc. #20552; Ord. of 7-16-1990, Doc. #24073; Ord. of 11-28-1994, Doc. #28057; Ord. of 9-11-2006, § 1, Doc. #0609111005; Ord. of 8-30-2010, § 7, Doc. #1008301103; Ord. No. 2012-40, § 1, 10-22-2012, Doc. #1210221201; Ord. No. 2017-73, § 5, 1-8-2018, Doc. #1801081209)