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344 ~ESOLUTION NO. 88-~ PAGE TWO 3. The use to which the abovesaid fee will be put is set forth in SAMC section 13-112 as follows: "Monies in a transportation system improvement program area fund shall be expended to improve the transportation system within the area for which such fund was established, or outside such area only when such improvement will substantially benefit such area." The public facilities to be financed by the fee are identi- fied in Exhibit A, attached hereto and incorporated herein. 4. The fee applies to all types of development projects, including residential, commercial, office and indus- trial; subject to certain limited exceptions set forth in section 8-44. The use of the fee for transportation system improvements is reasonably related to all types of develop- ment projects because the owners, occupants and visitors of all types of uses are benefitted by improved vehicular traffic flow. 5. The need for the public facilities is reason- ably related to all types of development projects because all types of development projects generate vehicular traffie. The restriction of the use of fees to transportation system improve- ments which are located in, or which substantially benefit, the area of the City from which the fees are derived assures that the fees derived from any given development project are used to provide those transportation improvements which most directly address the needs created by such develpment project. 6. As used hereinafter "project" means proposed construction which is subject to the payment of a fee pursuant to SAMC section 8-44 and as to which construction pursuant to a validly issued building permit has not commenced as of the effec- tive date of this resolution. 7. The fees established by this resolution shall apply to all projects except as otherwise hereinafter provided. 8. Any project for which a building permit has been issued prior to the effective date of this resolution shall be subject to the one percent (1%) fee formerly specified in SAMC section 8-44 unless such building permit expires without com- mencement of construction.