A. Vacations initiated by petition. Ordinances granting a petition to vacate any street which has not been acquired at public expense shall provide that the vacation shall not take effect until a sum equal to one-half (1/2) of the fair market value of the area vacated is paid to the City. Where the area vacated was acquired at public expense, or is a water front street under Section 12.10.080, the sum to be paid to the City shall be equal to the full fair market value of the area vacated.

B. In-lieu transfers of property. Conveyance of other property acceptable to the City may be made in lieu of the payment required by subsection (A), whether required to mitigate adverse impacts of the vacation or otherwise. When such conveyance is made for street purposes, one-half (1/2) of the fair market value of the land conveyed shall be credited to the required payment. When the conveyance is made in fee for other than street purposes, the full fair market value of the land conveyed shall be credited to the required payment. When the value of the in-lieu parcel is less than the payment required by subsection (A), the petitioner shall pay the difference to the City. When the value of the in-lieu parcel exceeds the payment required by subsection (A), the City shall pay the difference to petitioner.

C. Vacations initiated by council resolution. The City Council may pass an ordinance to vacate a street without requiring that the abutting property owners make payment to the City for such vacation where the vacation was initiated by city council resolution and not by a petition signed by more than two-thirds of the abutting property owners.