UR-50 Letter - Plan Type Determ
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WOODBURN
ORE G 0 N
Incorporated 1889
July 30, 2003
Doug Ebner
Marion County Assessor
550 Court Street
Salem, OR 97301
VIA: Fax
RE: Woodburn Urban Rencwal Agency
Form UR-50 for Fiscal Year 2003-04
Dear Mr. Ebner:
On July 15,2003, Form UR-50 was filed with the Assessor's office identifying Part 5: "New"
Plans (Reduced Rate) - (Adoptcd after October 6,2001) as the 2003-04 ad valorem tax increment
amount to be collected for the Woodburn Urban Renewal Agency plan area. The selection of
Part 5 was based on a legal opinion thc Woodburn Urban Renewal Agency received from our
consulting attorney, a copy of which is enclosed for reference.
On July 29,2003, I received a telephone call from your staff member Marci Ferries, stating that
the plan area needed to be corrected to be shown as Part 4: "Window" Plans (Standard Rate)-
(Adopted after December 6, 19%, but prior to October 6,2001). Prior to making the change
from Part 5 to Part 4, we are requesting a written determination on your office's official position
on the type of plan.
The City Council adopted Ordinance No. 2298 (Urban Renewal Plan Area) on August 13,2001.
A referendum petition was filed and this ordinance was referred to the voters. The special
election on this ordinance was held on March 12, 2002 and the voters passed the measure which
authorized the Urban Renew.al Plan Area. Our legal counsel advised us that the March 12,2002
election is the official date in whiGh the plan area was adopted while your office has taken the
position that August 13, 200 I isthe adoption.date. As our filin.g officer, a written determination
will provide us with the appropriate designation of the plan area not only for fiscal year 2003-04
but also for future year tilings })ftIJe UR-50fonn,
Office of the City Recorder
270 Montgomery Street · Woodburn, Oregon 97071
Ph.503-982-5210 . Fax 503-982-5244
Page 2 - D. Ebner, Marion County Assessor
July 30, 2003
Upon receipt of your written dctemlination, corrections to the previously submitted form UR-50
will be made if necessary to insure the Woodburn Urban Renewal Agency's ability to collect ad
valorem taxes. If you have any questions, feel free to contact either myself or City Attorney
Shields at (503)982-5228.
Sincerely,
/llG~
Mary Tennant
City Recorder
enclosure (1)
cc N. Robert Shields, City Attorney
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JEANNETTE~.LAUNER
A T TOR N E Y
P.O. Box 217
Pacific City, OR 97135
* REC'D *
MAY 1 0 2002
Phone 503-502-1030 . Fax 503-221-7045
e-mail jmlauner@internetcds.com
WOODBURN
CITY ATTORNEY
May 8, 2002
Mr, N, Robert Shields
City Attorney, City of Woodburn
270 Montgomery Street
Woodburn, OR 97074
RE: Legal Opinion on Necessity to Amend the Woodburn Urban Renewal Plan
Dear Bob,
You have asked my opinion whether it is legally necessary or prudent for the Woodburn
Urban Renewal Agency ("Agency") to amend the Woodburn Urban Renewal Plan ("Plan")
given that the Plan's effective date was delayed by referral of the Plan to the voters, I do not
believe it is legally necessary to amend the Plan, The Agency may wish to take some action
currently or in the future to clarify the record relating to tax increment estimates and the debt
service schedule in the Report, but this is not legally necessary.
Facts
To summarize, I understand that the Woodburn City Council adopted the Plan by
Ordinance No. 2298 on August 13,2001 ("Ordinance"). Thereafter, the Plan was referred to the
voters and passed in the March 2002 election. You have opined, and I agree, that the ordinance
approving the Plan was not adopted until after March 2002 for purposes of certifying the "frozen
base" value in the urban renewal area under ORS 457.430. This means that instead of the
assessor certifying the frozen base from the 2000-2001 assessed values, the assessor will use the
2001-2002 assessed values. In addition, the initial collection of tax increment funds will be
delayed from the 2001-2002 tax year to the 2002-2003 tax year.
I note that the Ordinance specifically adopts the Plan, but does not adopt the Report on
the Plan ("Report").' Reference to the Report is included in FINDINGS, Section 1 of the
Ordinance,
I Each urban renewal plan must be accompanied by a "Report" satisfying the requirements ofORS 457.085(3).
, N. Robert Shields
May 8, 2002
Page 2 of3
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"9. That the Woodburn City Council further relies on the report on the
Woodburn Urban Renewal Plan, attached to this ordinance as Exhibit "B", which
is incorporated by reference, the recommendation of the Planning Commission,
the public hearing and the entire record before the City Council on this matter,"
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Analysis of Legal Issues
1, The Woodburn City Council need not amend the Plan. The Ordinance adopts
only the Plan and the Plan contains no references to the information that has changed
because of the delay in Plan adoption, The only financial reference in the Plan itself
is to the limit on maximum indebtedness, which will not change. Since the Council
did not adopt the Report2, there is no need to formally amend the Report,
2, The Woodburn City Council need not adopt a new ordinance approving the
Plan even though the Report was incorporated as part of the findings supporting
the Plan adoption.
The Report does include information relating to the financial feasibility of the Plan
that may change as a result of the delay in Plan adoption. Specifically, the
information in Section 100,A, Property Valuation; Section 500,B, Anticipated Start
and Finish Dates of Project Activities; and Section 500.C, Estimated Expenditures
and Year of Debt Retirement (Table 4) may be revised because of a different frozen
base year or the delay in tax increment collections. The Council adopted the Report
as part of its findings in support of the Plan adoption, However, the possible changes
in this information since the time the Council passed the Ordinance does not compel
an amendment to the Ordinance,
I view the Ordinance referral to the voters as analogous to an appeal of a land use
decision. The land use decision of the local body, if appealed, is not a final decision
until all appeals are exhausted, However, the fact that some of the facts relied on to
make the initial local decision may have changed does not affect the legality of the
decision. In this case, the facts relied on by the Council to adopt the Ordinance may
have changed3, but the decision is still legally valid after the referral vote.
I will point out that there is nothing illegal about adopting a new ordinance approving
the Plan and making reference to a corrected Report, even though a new ordinance is
not legally required, but that ordinance would then be subject again to appeal and/or
referral.
2 The Council's action in adopting only the Plan was legally correct under ORS 457.095.
3 Based on my understanding of the modified facts, I believe that there is no material change to these facts.
. N. Robert Shields
May 8, 2002
Page 3 of3
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The Agency is Cree to make changes to the Report either currently or in the
Cuture to inCorm the public oC the updated financial Cacts.
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Since I have concluded no action is legally necessary to reflect possible changes in
the Report contents, the Agency need take no additional action at this point. Staff
may wish to inform the Agency of the changes as a matter of information.
However, if the Agency chose, it could adopt an amended Report (or a list of changes
to the Report) to inform itself and its constituents as to those changes based on the
delayed effective date for the Plan confirm that the changes are not material to the
conclusions of the original Report, thereby "closing the loop" as to the Plan's basis in
fact. There is no special procedure in ORS 457 for taking any action relating to the
Report, Therefore, the Agency can approve the changes by its usual manner of
making decisions, which may be by resolution or even by a motion approving a staff
report with the changes listed.
Finally, the Agency can always consider these Report changes to such time as the
Agency ma; take another action relating to the Plan that would require a change in
the Report,
In conclusion, I believe that the Ordinance adopting the Plan is a valid and effective
Ordinance. The Plan is therefore effective without additional Agency or Council action. I would
be happy to discuss these conclusions with you at your convenience.
Sincerely,
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Jeannette M. Launer
4 The Report should be reviewed for any changes whenever the Agency considers a substantial amendment.