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Ord 2512-Economic Improvement DistrictCOUNCIL BILL NO. 2943 ORDINANCE NO. 2512 AN ORDINANCE ENABLING THE FORMATION OF ECONOMIC IMPROVEMENT DISTRICTS PURSUANT TO OREGON STATE LAW WHEREAS, the City Council at its October 28, 2013 meeting heard a report from the Urban Renewal Manager regarding Economic Improvement Districts; and WHEREAS, it was the consensus of the City Council that staff prepare a draft enabling ordinance so that this document could be further discussed by the City Council and circulated to interested parties; and WHEREAS, Oregon statutes permit cities to create Economic Improvement Districts consistent with the state law requirements; NOW, THEREFORE, THE CITY OF WOODBURN ORDAINS AS FOLLOWS: Section 1. Purpose. A. The purpose of this Ordinance is to establish procedures for the creation of Economic Improvement Districts. B. Pursuant to ORS 223.117, the City Council may create an Economic Improvement District where the assessment is mandatory and applied to all properties except Exempt Properties. C. Pursuant to ORS 223.1 18, the City Council may create an Economic Improvement District where the assessment is voluntary. Owners of property who initially object to the assessment are excluded from the assessment. The amount of the assessment for the remaining lots is determined after excluding the objecting properties. D. Pursuant to ORS 223.144, the City Council may create an Economic Improvement District by employing a business license fee to raise revenue for the cost of economic improvement and imposing this fee on the persons/entities Conducting Business within the District. Page- I - Council Bill No. 2943 Ordinance No. 2512 E. All costs of administering and operating any type of Economic Improvement District will be paid for entirely from assessments and fees actually received from the District; the City will not pledge its credit on behalf of the District; and the City will not loan funds to the District. F. This Ordinance shall not give to any person the right to have an Economic Improvement District established. The City Council may decline for any reason within its sole discretion to establish a proposed Economic Improvement District. Section 2. Definitions. The following words and phrases when used in this Ordinance shall have the following meanings, except where the context requires a different meaning: A. "Advisory Committee" means, as allowed by ORS 223.119, a committee of persons representative of the owners and/or tenants of property within an Economic Improvement District and may consist of an existing association of property owners or tenants or both. B. "City Administrator" means the Woodburn City Administrator or designee. C. "Conducting Business," means to engage in any business, trade, occupation or profession in pursuit of gain including activities carried on by a person through officers, agents and employees as well as activities carried on by a person on that persons own behalf. D. "District," means Economic Improvement District. E. "Economic Improvement," as provided in ORS 223.141, means: 1. The planning or management of development or improvement activities. 2. Landscaping, maintenance and provision of security for public areas. 3. The promotion of commercial activity or public events. 4. The conduct of activities in support of business recruitment and development. Page -2- Council Bill No. 2943 Ordinance No. 2512 5. The provision of improvements in parking systems or parking enforcement. 6. Any other economic improvement activity that specially benefits property. F. "Preliminary Economic Improvement Plan" means a plan setting out: 1. A description of economic improvements proposed to be carried out; 2. The number of years, to a maximum of five, in which assessments are proposed to be levied; 3. A preliminary estimate of annual cost of the proposed economic improvements; 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 improvements; 5. The proposed formula for assessing the cost of the economic improvements against subject properties; 6. A preliminary estimate of the cost of City administration of the proposed Economic Improvement District; and 7. A statement of why the proposed economic improvements are not likely to be satisfactorily and equitably accomplished except through establishment of an Economic Improvement District. G. "Final Economic Improvement Plan" means a plan setting out: 1. A description of economic improvements to be carried out; 2. The number of years, to a maximum of five, in which assessments will be levied; 3. The annual cost of the proposed economic improvements; Page- 3 - Council Bill No. 2943 Ordinance No. 2512 4. The boundaries designated by map or perimeter description of the Economic Improvement District within which subject properties will be assessed to finance the costs of the Economic Improvement District; 5. The formula for assessing the cost of the economic improvements against subject properties, and 6. The cost of City administration of the Economic Improvement District. H. "Lot" means a lot, block, or parcel or land. I. "Owner' means the owner of the title to real property or the contract purchaser of record as shown on the last available complete assessment roll in the Office of the Marion County Assessor. J. "Subject Properties" means the real property within an Economic Improvement District except for Exempt Property. K. "Exempt Property" means any real property that is not zoned for commercial or industrial use. Section 3. Preliminary Institution of Economic Improvement District. A. The City Council may consider creation of an Economic Improvement District whenever owners of Subject Properties or persons/entities Conducting Business file with the City Recorder a petition for the establishment of a District or the City Administrator files a report recommending the establishment of a District. A petition or report shall contain a Preliminary Economic Improvement Plan. B. The City Council may adopt a resolution directing the City Administrator to begin the Economic Improvement District formation process if the City Council finds that the economic improvements would afford a special and peculiar benefit to subject properties within the Economic Improvement District different in kind or degree from that afforded to the general public. Section 4. Final Plan and Ordinance Preparation. A. Immediately following the City Council adoption of a resolution under Section 3B, the City Administrator shall prepare for the City Council a report including but not limited to: Page- 4 - Council Bill No. 2943 Ordinance No. 2512 1. Ownership of Subject Properties in the District, if the District is to be based upon property ownership; 2. Identification of the persons/entities Conducting Business within the District, if the District is to be based upon persons/entities Conducting Business within the District; 3. Status of payments of taxes and city liens and other fees and charges; 4. True cash value of properties in the District, based on county tax records; 5. A proposed Final Economic Improvement Plan; and 6. Recommendations of the Advisory Committee, if one has been formed. B. The report also shall be accompanied by a proposed ordinance that: 1. States the City Council's intention to proceed with formal notification regarding the proposed Economic Improvement District; 2. States whether the District will be based on persons/entities Conducting Business within the District or property ownership. 3. States whether the assessments will be mandatory or voluntary; 4. Contains the information in the Final Economic Improvement Plan, which may be included by attachment of the Plan as an exhibit; and 5. Directs notice to be given in the manner provided by Section 6. Section 5. Consideration of Final Economic Improvement Plan and Ordinance. On consideration of the report and ordinance, the City Council may approve, modify, or reject the report including any aspect of the Final Economic Improvement Plan, and the ordinance. If the City Council determines that the proceedings for the proposed Economic Improvement District should go Page- 5 - Council Bill No. 2943 Ordinance No. 2512 forward, the City Council shall adopt the ordinance including any modifications. Section 6. Notice. A. Following adoption of the ordinance under Section 5, the City Recorder shall mail notice to the property owners or persons/entities Conducting Business within the proposed Economic Improvement District which contains the following information: 1. The City Council's intent to form an Economic Improvement District; 2. Assessment on benefitted properties; 3. The formula for determining the assessment; 4. The scope of the improvements and the description of the District boundaries; 5. The estimated cost of the proposal and that it may be reduced to the amount of money actually received; 6. The classification or types of properties which are Exempt Property; 7. That the proposed Final Economic Improvement Plan is on file with the City Recorder: 8. The date, time and place of the hearing; 9. That the proposal can be modified as a result of public testimony; 10. That if the District is based on property ownership, if the owners of property upon which greater than thirty-three percent (33%) of the total amount of the assessment is levied oppose creation of the District, then the District shall not be formed and the assessment shall not be made; and 11. That if the District is based upon persons/entities Conducting Business within the District, if written objections are received at the public hearing from more than thirty-three percent (33%) of persons Page- 6 - Council Bill No. 2943 Ordinance No. 2512 Conducting Business within the District, then the District shall not be formed and the proposed business license fee will not be imposed; and 12. Any owner or person/entity Conducting Business within the District who fails to submit written objection to the formation of the District or the classification of its property before or at the public hearing on assessment shall have waived challenges to the classification. Section 7. Hearing Exemption Process and Ordinance Establishing District. A. The City Council shall hold a public hearing on the proposed Economic Improvement District at the time and place stated in the notice provided pursuant to Section b. The public hearing shall be held no sooner than 30 days after mailing the notice. B. At the public hearing on consideration of the District ordinance, the City Council shall hear objections to the formation of the District, and objections to classification of property for assessment. C. If the District is based on property ownership, if the owners of property upon which greater than thirty-three percent (33%) of the total amount of the assessment is levied oppose creation of the District, then the District shall not be formed and the assessment shall not be made. If the District is based upon persons/entities Conducting Business within the District, if written objections are received at the public hearing from more than thirty-three percent (33%) of persons Conducting Business within the District, then the District shall not be formed and the proposed business license fee will not be imposed; D. The City Council may continue the hearing to such other time and place as it may deem appropriate. At the hearing, persons supporting or objecting to the proposed improvement and assessment shall be entitled to be heard. E. If the City Council, at the conclusion of the hearing, finds that the economic improvements will afford a special and peculiar benefit to subject properties within the Economic Improvement District different in kind or degree from that afforded to the general public and that the Economic Improvement District should be established, then the City Council may adopt an ordinance establishing the District. Page- 7 - Council Bill No. 2943 Ordinance No. 2512 Section 8. Preparation and Notice of Assessments. A. Following the City Council's adoption of an ordinance establishing an Economic Improvement District based on the Final Economic Improvement Plan, the City Recorder shall prepare the proposed assessment for each lot in the District that is a Subject Property and shall file a proposed assessment ordinance, with a list of proposed assessments attached, with the City Council. The amount of assessment shall be based on the cost of the economic improvements and the cost of City administration of the Economic Improvement District. B. Following preparation of the proposed assessments, the City Recorder shall mail to the owner of each lot to be assessed a notice containing the following information: 1. The description of the property being assessed. 2. The name of the District. 3. The duration of the assessment (life of the Dist(ct) and the total cost of the project, the assessment formula, and the amount of the assessment on the property. 4. The time, date and place of the assessment hearing; 5. That written objections may be filed with the City Recorder prior to or at the time of the hearing. An objection to the assessment must explain the reasons the assessment is incorrect or exceeds the amount of benefit. 6. That if an owner fails to submit a written objection before or at the public hearing, the owner shall be deemed to have waived challenge to assessment; 7. That the assessment will be due and payable immediately. 8. That property included in the District and assessed cannot be withdrawn from the District and the assessment will continue through the life of the District. Page- 8 - Council Bill No. 2943 Ordinance No. 2512 Section 9. Hearing on Assessment Ordinance. A. The City Council shall hold a public hearing on the proposed assessment ordinance. The public hearing shall be held no sooner than 30 days after mailing the notice. At the hearing, property owners supporting or objecting, to the amount of the assessment, shall be entitled to be heard. B. Written objections shall be considered to have been received by the City Council at the hearing if actually received at the hearing or if received by the City Recorder prior to commencement of the hearing. C. At the hearing, the City Council shall consider any objections and may adopt, correct, modify, or revise the proposed assessment ordinance. Section 10. Assessments. A. The City Council shall not levy assessments in a District in any year that exceed one percent of the true cash value of all the real property located within the District. B. Any new owner of benefitted property or any owner of benefitted property that was exempted from assessment may subsequently agree to the assessment of the property. The City Council shall apply the assessment formula to the property and apportion the costs to the property for the remaining time in which the assessment is levied. C. An assessed property may not be relieved from liability for an assessment for any reason including change of ownership. Section 11. Limitation on Boundaries. The City Council shall include within the Economic Improvement District only property that is zoned for commercial or industrial use. Section 12. Expenditure of Moneys. Money derived from assessments levied under this Ordinance and from interest earned on that money shall be spent only for the economic improvements and for the cost of City administration of the Economic Improvement District described in the Final Economic Improvement Plan. Page- 9 - Council Bill No. 2943 Ordinance No. 2512 Section 13. Limitation on Expenditures. Money spent for carrying out a Final Economic Improvement Plan shall be limited to money actually received from assessments or from other public or private contributions to assist in carrying out the Plan. Section 14. Administration. The City Administrator shall be responsible for administration of the economic improvements to be carried out and, pursuant to applicable law, may charge an administrative fee for the cost of the administrative services provided by the City. Approved as to form: City Attorney Date CO Passed by the Council Submitted to the Mayor Approved by the Mayor Filed in the Office Recorder ATTEST: Heather Pierson, City Recorder City of Woodburn, Oregon Page- 10 - Council Bill No. 2943 Ordinance No. 2512 R Kathrkn Fig 5«-n..•� is ao, y