Ordinance 1978COUNCIL BILL NOS: 1014
ORDINANCE N0. 1978
AN ORDINANCE PROVIDING FOR INCREMENTAL PROPERTY TAX AS A SUBSIDY FOR
A PORTION OF CERTAIN DEVELOPMENT CONNECTION FEES, AND DECLARING AN EMERGENCY.
WHEREAS, the City of Woodburn is pursuing a more active role
in encouraging economic development; and
WHEREAS, an incentive partnership is desired between the
developer and the City vdhich will allow the benefits of development to
help pay the costs of development; NOW, THEREFORE,
THE CITY OF WOODBURN ORDAINS AS FOLLOWS:
Section 1. Purpose. The City Council finds that the stimulation
of new development within the community vaill broaden the economic base
of community livability for all residents of the City. As an incentive
to promote new development, a subsidy of development fee responsibility
is promoted between the owner and the City. This sharing of responsibility
is based upon the premise that development pay the expense of development
and said public subsidy come from tax revenue generated by the specific
development project. Incremental property tax generated from new development
is proposed to subsidize one-half the applicable development fees over
time.
Section 2. Definitions. The following definitions apply:
(A) "Development connection fees" shall mean those specific
charges for capacity or capital improvement so identified under the Applica-
bility Section of this ordinance.
(D) "Owner" shall mean any person, firm, corporation or other
entity having legal title to the real property subject to the applicable
development connection fees and possessing legal authority to authorize
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ORDINANCE N0. 1978
the docketing of a lien against said property.
(C) "New construction" shall mean all construction resulting
in a permanent improvement on or to land which is undeveloped or developed
for which an applicable connection fee as defined in this ordinance is
charged and which meets the following conditions:
(1) Said applicable development connection fees in total
aggregate meet or exceed the amount of fifteen hundred
dollars ($1500.00), and
(2) The incremental increase in assessed valuation for
said property, that is the difference between before
and after improvement assessed valuation, meets
or exceeds the amount of twenty-five thousand dollars
($25,000.00). In general, remodels, alterations,
and improvements to existing developed property
shall not constitute new construction unless it
is significant enough to require applicable development
connection fees which meets the above described conditions.
(D) "Incremental Property Tax Subsidy" shall mean those property
taxes derived from new construction attributable only to the amount levied
by the City of UJoodburn and no other taxing jurisdiction; which amount
is determined as the incremental difference between before construction
and after construction assessed valuation multiplied by the applicable
City tax rate. This subsidy will not alter the rate of taxation levied
by any taxing jurisdiction, but only provide a method of determining.
a subsidy amount which the City will transfer from property tax receipts
to applicable capital improvement funds as satisfaction of the City's
application of this cost-sharing subsidy of applicable development connection
fees.
Section 3. Applicability. The specific development connection
fees eligible for the general provisions of this ordinance are identified
and referenced as the following:
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ORDINANCE N0. 1978
(A) Street and Storm Drainage Connection Permit Fee as described
in Section 3, Ordinance No. 1842.
(B) Water System Capacity Fee as described in Section 8,
Ordinance ado. 1866 as amended by Ordinance No. 1973.
(C) Sanitary Sewer Connection Fee as described in Section 2,
Ordinance No. 1678 as amended by Ordinance No. 1972.
(D) Cas Payment in Lieu of Parkland Dedication Fee as described
in Section 38.040 of Ordinance No. 1947.
Section 4. General Provisions.
(A) The owner is responsible for satisfactory payment of
all permits, fees, and other charges related to development of real property.
(B) The owner responsible for payment of applicable development
connection fees associated with new construction as defined in this ordinance
shall be eligible for an incremental property tax subsidy of fifty percent
(50%) of said applicable development connection fees.
(C) The defined 50% incremental property tax subsidy shall
be enforced until the amount collected and attributable to said new construction
satisfies the 50% amount as determined by the Building Official, or until
six (6) annual collections and distribution of the incremental property
tax subsidy for said new construction have been completed; whichever
occurs first.
(D) The owner is liable for any and all remaining balance
of the applicable development connection fees not satisfied at the expiration
term of the incremental property tax subsidy, which is six annual tax
assessments. The Finance Director shall bill the owner for any such
remaining balance and enforce the balance owing in accordance with the
Security section provisions of this ordinance.
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ORDINANCE N0. 1978
(E) The exercise of this incremental property tax subsidy
is at the option of the eligible owner; and written application for such
option must be filed by the o-vner prior to issuance of the building permit.
(F) The failure of the owner to satisfy in full his annual
assessment of general property taxes to the City of Woodburn as a taxing
jurisdiction will be considered a delinquency. Delinquency in satisfying
property tax commitments to the City shall constitute immediate grounds
for termination of the incremental property tax subsidy. The remaining
balance shall constitute a lien as described in the Security section
provisions of this ordinance.
Section 5. Administration.
(A) The Building Official of the City of Woodburn shall be
designated the administrator of this specific development incentive program
providing an incremental property tax subsidy for applicable development
connection fees.
(B) The administrator shall establish appropriate application,
monitoring, financial, and other management forms and procedures necessary
for the administration of this ordinance.
Section 6. Security.
(A) The unpaid balance of applicable development connection
fees elgible for the incremental property tax subsidy shall constitute
a lien upon the property until paid in full. If at the end of the six (6)
annual collections and distributions of the incremental property tax
subsidy for said development a balance owing still remains, said balance
shall be due and payable in full by the owner.
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ORDINANCE N0. 1978
(B) The City Finance Director is hereby directed to enter
the unpaid balance of applicable development connection fees eligible
for incremental property tax subsidy as a lien onto the docket of unbonded
liens at the time of issuance of the occupancy permit for said development.
(C) Said lien shall be prior and superior to all other liens
or encumbrances upon the property insofar as State law permits.
(D) Said lein may be foreclosed in the manner provided by
ORS 223.010, or in any other manner provided by State law or City ordinance.
Section_7. Severability. In any section, clause or phrase
of this ordinance, or its application to any statute is determined by
any court of competent jurisdiction to be invalid or unenforceable for
any reason, such determination shall not affect the validity of the remainder
of this ordinance or its application to any other statute, but shall
continue to be in full force and effect.
Section 8. Retroactivity. Upon passage, this ordinance is
retroactive to ~1ay 1, 1987.
Section 9. Emergency Clause. This ordinance being necessary
for the immediate preservation of the public peace, health, and safety,
an emergency is declared to exist and this ordinance shall take effect
immediately upon passage by the Council and approval by the Mayor.
Approved as to form: ~ ` ~~` ~ 6m--
City Attorney Date
APPROVED: `~~ ~~...., , ~~~~~~~
NA CY A. ~KSEY MAYO
Passed by the Council
Submitted to the P~ayor
June 8, 1987
June 10. 1987
Approved by the Mayor
Filed in the ,gffice of the ,,Recorder.:,.
ATTEST ,,~~~" ~ ~. ~ ~~
Barney O~urr~s, Recorder
City of Woodburn, Oregon
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ORDINANCE N0. 1978
June 10, 1987
June 10 1987