Res. 2224 - SDC Conversion of buildings from Commercial to Residential use in non industrial zones COUNCIL BILL NO. 3235
RESOLUTION NO. 2224
A RESOLUTION ADOPTING A POLICY REGARDING SYSTEM DEVELOPMENT CHARGES
FOR CONVERSION OF BUILDINGS FROM COMMERCIAL TO RESIDENTIAL USE IN NON-
INDUSTRIAL ZONES
WHEREAS, the Oregon State Legislature adopted House Bill ("HB") 2984 in the
2023 Legislative Session to allow for the conversion of buildings from commercial
use to residential use and prohibiting local governments from requiring a zone
change or conditional use permit before allowing the new residential use; and
WHEREAS, among other things, HB 2984 permits cities to charge system
development charges ("SDC") for residential conversion only if "(A) The charge is
calculated pursuant to a specific adopted policy for commercial to residential
conversions adopted on or before December 31, 2023; or (B) The charge is for
water or wastewater and includes an offset for at least 100 percent of the water or
wastewater system development charges paid when the building was originally
constructed"; and
WHEREAS, ORS 223.299(4)(a) defines a "system development charge" as a
reimbursement fee, an improvement fee or a combination thereof assessed or
collected, at the time of increased usage of a capital improvement or issuance or
a development permit, building permit, or connection to the capital improvement;
and
WHEREAS, the City does not currently have a specifically adopted policy for
commercial to residential conversions, and typically SDC's for all new uses,
including conversions, are based on the most recently adopted rates for that use at
the time of building permit issuance,with limited offsets or reductions available; and
WHEREAS, the City Council finds it to be in the best interest of the City to
preserve the City's full local authority to assess and set the policy for charging
SDCs for the conversion of commercial buildings to residential uses; NOW,
THEREFORE,
THE CITY OF WOODBURN RESOLVES AS FOLLOWS:
Section 1. Pursuant to HB 2984 regulating the charge of SDCs for the
conversion of property from commercial use to residential use, the City of
Woodburn adopts the following policy:
A. For Water SDCs: When conversion requires a new or upsized water meter
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RESOLUTION NO. 2224
to serve the subject property, the City shall charge the difference in SDC
rate between the size of the old meter (if existing) and the size of the
new/upsized meter.
B. For Storm SDCs: When conversion results in a physical increase in
impervious surface area on the property, the City shall charge the SDC
rate only for that area of increased impervious surface area.
C. For Sewer, Parks & Rec, and Transportation SDCs: The City shall charge
the difference between the SDC rate for the new residential use resulting
from the conversion and the current SDC rate attributable to the most
recent legally approved use conducted on the subject
ject pro'perfy, unless
that use ceased more than three years ago. If the property has been
vacant for a period of more than three years, the prior use will be
considered terminated and no offset or reduction in the SDC rate shall
apply.
Section 2. If the SDC attributable for the prior use is not clearly identifiable
in the adopted Fee Resolution for the subject SDC, the City Administrator or
designee shall in their sole discretion utilize the land use category or
classification that is most similar with respect to the prior use.
Section 3. With the above calculations for conversion, no refund shall be
given by the City if the change in use or redevelopment results in a lower SDC
for the present development or use of the property.
Section 4. This Resolution shall become effective immediately upon its
passage by the City Council.
Approved as to form: ;�111 / /I
City Attorney Date'
Approved:
Frank Lonerga,h, Mayor
Passed by the Council Z,013
Submitted to the Mayor ,2 0 .
Approved by the Mayor .20 a3
Filed in the Office of the Recorder D&Cemb0r /-3,, 20 Z3
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RESOLUTION NO. 2224
ATTEST:
Heather Pierson, City Recorder
City of Woodburn, Oregon
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RESOLUTION NO. 2224