A. Where a vacation has been initiated by petition, the owners of the property abutting the area vacated shall pay to the City, prior to the effective date of the ordinance vacating the area, a sum equal to one-half of the appraised value of the area vacated plus the full cost of physical closure and road repairs as required by the City Manager or designee. If the property sought to be vacated, however, has been part of a dedicated public right-of-way, whether open or unopened for 25 years or more, or if the property or portions thereof were acquired at public expense, the City may require the petitioner(s) to pay compensation in an amount that does not exceed the full appraised value of the area vacated. Where the vacation was initiated by the City or was required by the City as a condition of a permit or approval, the owners of the property abutting the area vacated shall not be required to compensate the City.

B. Conveyance of other property acceptable to the City may be made in lieu of the required payment, whether required to mitigate adverse impacts of the vacation or otherwise. When the conveyance is made for street purposes, one-half of the fair market value of the land conveyed shall be credited to the required payment. When the conveyance is made in fee for purposes other than street purposes, the full appraised value of the land conveyed shall be credited to the required payment.

C. When the value of the in-lieu parcel is less than the required payment, the petitioners shall pay the difference to the City. When the value of the in-lieu parcel exceeds the required payment, the City shall pay the difference to the petitioners.

D. One-half of the revenue received by the City as compensation for vacated public property shall be dedicated to the acquisition, improvement, development, and related maintenance of public open space or transportation projects within the City. [Ord. 501 § 3, 2009.]