A. When a development occurs that must pay a system development charge, the SDC for the existing use shall be calculated, and if it is less than the SDC for the proposed use, the difference between the SDC for the existing use and the SDC charge for the proposed use shall be the system development charge required. If the change in use results in the SDC for the proposed use being less than the SDC for the existing use, no SDC charge shall be required, however, no refund or credit shall be given.

B. The limitations on the use of credits contained in this subsection shall not apply when a-edits are given under subsection (C) of this section. A credit shall be given for the cost of a qualified public improvement associated with a development. If a qualified public improvement is located in whole or in part on or contiguous to property that is the subject of development approval and required to build a larger facility or a facility with greater capacity than is necessary for the particular development project to which the improvement fee is related, then the City Council may grant a credit only for the cost of that portion of sum improvement that exceeds the City's minimum standard facility size or capacity needed to serve the particular development project or property. The applicant shall have the burden of demonstrating that a particular improvement qualifies for credit under this subsection.

C. In establishing the methodology for each charge, the City Council may provide a greater credit, or establish a system providing for the transferability of credits from one phase of development to another phase of a development. or provide a credit for a capital improvement not identified in the plan adopted pursuant to ORS 223.309, or provide a share of the cost of such improvement by other means.

D. Credits as herein set forth shall not be transferable from one type of capital improvement to another.