EID Enabling Ordinance

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AN ORDINANCE ESTABLISHING PROCEDURES FOR THE CREATION OF ECONOMIC IMPROVEMENT DISTRICTS AND FOR ASSESSMENTS TO FINANCE PROJECTS WITHIN SUCH DISTRICTS

THE CITY OF FOREST GROVE ORDAINS AS FOLLOWS:

Section 1. Purpose. The purpose of this ordinance is to implement ORS 223.112 to 223.132 by establishing procedures for the creation of economic improvement districts and for assessments to finance projects within such districts. The process for establishment includes:

(1) Initiation of an economic improvement district on motion of the City Council or on petition;
(2) Adoption of an ordinance proposing establishment of an economic improvement district and the assessments to finance economic improvement within the district;
(3) A first public hearing, after giving 30 days notice, to allow affected property owners and persons conducting business within the proposed district to comment on the proposed district, improvement project and assessments;
(4) Adoption at the first public hearing, if the Council chooses to go forward to establish the district, ofa resolution establishing the district, approving an economic improvement plan, determining the amount of assessments to be charged, the duration of the charges and setting the date, time and place of a second public hearing;
(5) A second public hearing, after giving 30 days notice, to hear and consider testimony in support and opposition to the proposed assessments and to receive written objections; and
(6) Adoption at the second public hearing, if the Council is able and chooses to go forward, of a final assessment ordinance.

Section 2. Definitions. For purposes of this ordinance, the following definitions apply:

A. Economic Improvement:

(1) The planning or management of development or improvement activities;
(2) Landscaping or other maintenance of public areas;
(3) Promotion of commercial activity or public events;
(4) Conducting activities in support of business recruitment and development;
(5) Provision of improvements in parking systems or parking enforcement;
(6) Any other economic improvement activity or project that specifically benefits property or persons conducting business.

B. Economic Improvement District or district: An economic improvement district as authorized pursuant to ORS 223.112 to 223.132.

C. Owner. Owner of the title to real property or the contract purchaser of record as shown on the last available assessment roll in the office of the county assessor.

D. Subject Property. Real property within an economic improvement district except for exempt property.

E. Exempt Property. Residential real property and any portion of a structure used for residential purposes and, in addition, those publicly owned properties exempt from general property taxation under state law.

Section 3. Initiation of District. The Council may initiate an economic improvement district on its own motion; upon the petition, for financing by assessment, of the owners of 33% or more of the area or of the assessed value of subject properties within the proposed district. The improvement shall be paid for in whole or in part by special assessments. The Council may decline for any reason to establish a proposed economic improvement district.

Section 4. Economic Improvement Plan. Any petition filed by property owners shall contain a proposed economic improvement plan for the proposed economic improvement district. if the Council, on its own motion, decides to consider such a district, it shall instruct the City Manager to prepare, or assist in preparing, an economic improvement plan. Economic improvement plans shall contain the following:

(1) A description of the economic improvement proj ect proposed to be undertaken or constructed;
(2) A preliminary estimate of the probable annual cost of the proposed economic improvements;
(3) The proposed formula for apportioning, assessing or charging the cost of economic improvements against properties that are specifically benefited by the economic improvement, which formula may be:

(a) An assessment based on the assessed value, square footage or other basis of the property involved;

(4) The proposed boundaries designated by map or perimeter description of an economic improvement district within which subject properties would be assessed to finance the cost of the economic improvement;
(5) The number of years, to a maximum of five, in which assessments are proposed to be levied or imposed;
(6) A statement whether the property assessment will be a voluntary assessment or mandatory assessment; and

(a) If voluntary, that the scope and level of improvements could be reduced depending on the amount of money collected; or

(b) If mandatory, that the assessment may be considered a tax under the Oregon Constitution, Article XI Section 1 l(b) and may be reduced to fit within the property tax limitation thereby affecting the level and scope of services described.

Section 5. Council Action on Plan. The Council may by motion approve the proposed plan, modify the plan and approve it, or abandon the proposed economic improvement, independently or as part of the Council review of the ordinance proposing creation of an economic improvement district.

Section 6. Ordinance Proposing. After the initiation of a proposed economic improvement district and improvement project, the Council may adopt an ordinance which:

(1) Calls a first public hearing to be held on the question of establishment of such economic improvement district, approval of the economic improvement plan and the proposed assessment.
(2) Provides that notices of the proposed hearing shall be mailed or delivered personally to affected property owners within the proposed district; such notices shall announce the intention of the Council to construct or undertake the economic improvement project in accordance with the proposed economic improvement plan and to assess benefited properties for a part or all of the cost; the notice shall state the time and place of the public hearing; the hearing shall be set not sooner than 30 days after the mailing or delivery of said notices to the affected property owners within the proposed district; and at the public hearing the affected property owners shall be allowed to appear at the hearing and support or object to the proposed district, improvement or assessment.
(3) Provides the information contained in the proposed economic improvement plan, that may be included by attachment of the plan as an exhibit.
(4) Provides that if, after the first hearing held under Subsection (1) above, the Council finds that the economic improvements would afford special and particular benefit to subject parcels within the proposed district different in kind or degree from that afforded to the general public, and that the district should be established and the plan adopted, then the Council may adopt a resolution stating those findings and establishing the district, determining the amount of assessments to be charged, the number of years the assessments will be charged, the notice to be given of the second public hearing and its date, time and place.
(5) Provides that the Council shall then determine whether the property benefited shall bear all or a portion of the cost.
(6) Provides that the Council shall:

(a) Determine, based on the actual or estimated cost of the economic improvement, the amount of the assessment on each lot in the district;

(b) Direct the City Manager to mail or personally deliver notice of such proposed assessment to the owner of each lot to be assessed. The notice shall state:

(i) The amount of the assessment proposed on the property of the owner receiving the notice;

(ii) That the Council will hold a public hearing on the proposed assessment on a specified date that shall not be held sooner than 30 days after the mailing or personal delivery of the notice;

(iii) The time and place of a second public hearing at which affected property owners may appear to support or object to the proposed assessment and that at the second hearing the Council may consider objections and may adopt, correct, modify or revise the proposed assessments;

(iv) That the assessments will not be made and the economic improvement project will be terminated if written objections are received at the second public hearing from owners of property upon which more than 33% of the total amount of assessments is levied;

(c) Consider objections at the second hearing and may adopt, correct, modify or revise the proposed assessments. In the case of a voluntary assessment under Section 7 of this ordinance, the Council shall exclude from assessment, property which the owner has requested to be omitted from assessment. The request shall be made in writing and must be submitted prior to the close of the hearing.

Section 7. Voluntary Assessment.

(1) Pursuant to the requirements above, the ordinance proposing creation of an economic improvement district and calling for the first public hearing may, at the discretion of the Council, provide that:

(a) When the Council receives written objections at the second public hearing only from owners of property upon which less than 33% of the total amount of assessments is levied, the economic improvement may be undertaken or constructed with the condition that the assessment not be levied on any lot or parcel of property if the owner of that property submitted written objections at the public hearing. Notwithstanding any other provision of law, an owner of property who fails to submit written objections at the public hearing as provided for in this ordinance shall be deemed to have made a specific request for the economic improvement services to be provided during the period of time specified in the assessment ordinance.

(b) The Council, after excluding from assessment property belonging to such owners, shall determine the amount of assessment on each of the remaining lots or parcels in the district.

(c) If the amount of the assessment on remaining properties is revised pursuant to subsections (a) and (b) above to an amount different than that provided in the notice of the second hearing, notice of such proposed revised assessment shall be mailed or personally delivered to the owner of each lot to be assessed, which shall state the amount of the assessment proposed on the property of the owner receiving the notice.

(2) When assessments are levied against property within an economic improvement district in accordance with an assessment ordinance that contains the provision described in subsection (1) of this section:

(a) Any new owner of benefited property in the district or any owner of benefited property who excluded the property from assessment by submitting written objections to the Council may subsequently agree to the assessment of the owner's property in the district. The Council shall apportion the costs to the property for the remaining time in which the assessments will be levied.

(b) The assessed property may not be relieved from liability for that assessment.

(c) If the Council considers it necessary to levy assessments upon property in the district for longer than the period of time specified in the assessment ordinance, the Council shall enact an ordinance that provides for continued assessments for a specified number of years and grants to property owners in the district the notice and right of remonstrance described in Section 6(6) and subsection (1) of this section.

Section 8. First Public Hearing and Resolution Establishing District. The Council shall provide notice and conduct its first public hearing in accordance with the ordinance proposing creation of an economic improvement district and as set forth in Sections 6 and 7 of this ordinance. At the conclusion of the first public hearing, if the Council determines to go forward with the district, project and proposed funding, the Council shall adopt a resolution in accordance with Subsections (4), (5) and (6) of Section 6 of this ordinance.

Section 9. Second Public Hearing and Adoption of Final Assessment Ordinance. The Council shall provide notice and conduct its second public hearing in accordance with the resolution establishing the economic improvement district and as set forth in Subsections (4), (5) and (6) of Section 6 and Section 7 of this ordinance. The Council may continue the hearing to a date and time certain. Written objections shall be considered to have been received by the Council at the hearing if actually received at the hearing or if received by the City Manager prior to the commencement of the hearing. At the conclusion of the second public hearing, if the Council determines and is able to go forward with the project and assessments, the Council shall pass a final assessment and fee ordinance in accordance with Section 10 of this ordinance. The ordinance will include the amount of assessments to be charged, the duration of the assessments, penalties for nonpayment or failure to obtain classification of assessments as to constitutional limits.

Section 10. Final Assessment Ordinance. If written objections in the requisite 33% are not received as provided in Section 6, the Council may adopt a final ordinance levying the appropriate assessments. Upon adoption of the final ordinance, the City Manager shall enter each such assessment in the docket of city liens. All such assessments shall be collected in the same manner as local improvement assessments. Failure to pay may result in foreclosure in the same manner as provided for other such assessments.

Section 11. Advisory Committee and Agreement with Existing Association. Any assessment ordinance adopted as herein provided may require creation, for each economic improvement district, ofanadvisory committee to allocate expenditure of moneys for economic improvement activities within the scope of this ordinance. If an advisory committee is created, the Council shall strongly consider appointment of owners of property within the economic improvement district to the advisory committee. An existing association of property owners, tenants or persons conducting business within an economic improvement district may enter into agreement with the City to provide the proposed economic improvement.

Section 12. Expenditure of Assessment Revenues. Money derived from assessments levied under the procedures set forth in this ordinance shall be spent only for the economic improvements set forth in the Economic Improvement Plan and for the cost of city administration of the economic improvement district.

Section 13. Limitations on Impositions of Assessments. The City is not authorized to:

(1) Levy assessments in an economic improvement district in any year that exceed one percent of the real market value of all the real property located within the district.
(2) Levy assessments on residential real property or any portion of a structure used for residential purposes.
(3) Include within an economic improvement district any area of the City that is not zoned for commercial or industrial use.

Section 14. Extension of Assessment Period. When the Council considers it necessary to levy assessments upon property in an economic improvement district for longer than the period of time specified in the ordinance that created the district, the Council shall enact an ordinance that provides for continued assessments for a specified number of years and grants to the owners of property the notice and right of remonstrance described in Section 6.

Section 15. Early Termination. By ordinance, the Council may terminate the activities of an economic improvement district in whole or in part prior to the normally scheduled termination date for the district. The ordinance shall provide that all applicable contract issues shall be resolved before activities are terminated. In the event of early termination, those fUnds remaining from assessments for the district, following payment of all obligations and costs of administration incurred on behalf of the district, shall be returned to the owners of the subject properties in the district in amounts proportionate to the amounts of the assessments they paid for the district. In the event of early termination of only a part of the activities of an economic improvement district, the Council, in the termination ordinance, may elect to apply remaining funds on a similarly proportionate basis as a credit against future district assessments, with any fUnds remaining being returned to the owners as otherwise provided in this Section.

PRESENTED AND PASSED the first reading this 22nd day of January, 2001.

PASSED the second reading this 12th day of February, 2001.

/s/ Catherine L. Jansen, City Recorder APPROVED by the Mayor this 12th day of February, 2001.

/s/ Richard G. Kidd, Mayor