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Minutes - 09/30/1996 .~ COUNCIL WORKSHOP MEETING MINUTES September 30, 1996 TAPE READING QQQl DATE. COUNCIL CHAMBERS, CITY HALL, CITY OF WOODBURN, COUNTY OF MARION, STATE OF OREGON, SEPTEMBER 30,1996. QQQ3. CONVENED. The Council met in a workshop session at 7:00 p.m. with Mayor Kirksey presiding on the topic of Tax Exempt/Pilot Housing issues. ROLL CALL. Mayor Councilor Councilor Councilor Councilor Councilor Councilor Kirksey Chadwick Figley Hagenauer Jennings Pugh Sifuentez Present Present Present Present Present Present Present Staff Present: City Administrator Childs, Community Development Director Goeckritz, Finance Director Gillespie, City Recorder Tennant Planning Commission members present: Laten Frawley, Mary Schultz, Lillian Warzynski, E. Walter Lawson Marion County: Commissioner Gary Heer, Wayne Day (Assessor's office), Debbie Eppley (Marion County Housing Authority), Craig Luedeman (County Housing Authority and County Community Development Director), Dennis Kilfofil (MCHA Finance Manager), Ray Teasley (Council of Governments) QQQ5. Mayor Kirksey provided the participants and members of the audience a general overview on the workshop discussion topic regarding tax exempt property within the City along with pilot housing projects currently operated by the County Housing Authority. 0090 Director Goeckritz stated that concern has been expressed by members of the community regarding the number of single and multi-family housing units in Woodburn in comparison to other communities within Marion County. Additionally, these housing units are property tax exempt under state/federal law , which in turn, places the burden of paying for government and school services on other property taxpayers. Under a federal law, payments are made in-lieu-of taxes (also known as PILOT) on federally owned taxed exempt property for services provided by local governments. These payments amount to 10% of the rent collected less utility payments. Another issue of concern within the community is Woodburn's fair share of the housing stock owned by Page 1 - Council Workshop Meeting Minutes, September 30, 1996 T-.. .~_..- ....~-~-.....-.~--.."^-, II I -,---.., ...,.. COUNCIL WORKSHOP MEETING MINUTES September 30, 1996 TAPE READING the County Housing Authority as it compares to other communities in Marion County along with the City of Salem. He briefly reviewed a report compiled by the 3-Valleys Project dated August 1996 which discussed affordable housing for individuals living in Marion County. Director Goeckritz also reviewed a table of County Housing Authority housing stock located in various communities in Marion County which showed that Woodburn had 19 out of 40 single family homes and 44 out of 95 multi-family dwellings. 0300 Finance Director Gillespie discussed the tax issue and provided a brief explanation on the differences between privately owned subsidized housing (which pays full cost of property taxes) and publicly owned housing. It was noted that PILOT payments are only made on federally owned units whereas residential property owned by a non-profit charitable corporation is tax-exempt and no provisions have been made that would provide for payments in-lieu-of taxes for services. It was also noted that the City does receive all of the PILOT payments for those rental units in Woodburn. Last year, the City received approximately $11,000 in PILOT payments. Mayor Kirksey read a letter into the record which was signed by four (4) former Mayors objecting to the placement of additional farmworker housing within the City since the City already carries a more than their fair share of farmworker housing. 0575 Craig Luedeman, County Housing Authority Director and Marion County Community Development Director, reviewed the number of farmworker housing units not only in Woodburn but throughout Marion County that is owned and operated by the County Housing Authority. He stated that the Housing Authority is in the process of selling some of their homes that they are unable to support and these homes will be placed back onto the tax roles. He also informed the group that Salem has their own Housing Authority which is why Marion County Housing Authority only has 9 units listed on the table of housing stock. The County Housing Authority does own one lot in Woodburn which they want to develop, however, this lot does not have to be migrant housing and it can be developed and sold to a low income first time buyer. Councilor Jennings questioned Mr. Luedeman on future Housing Authority's plans to develop more farmworker housing in Woodburn. Mr. Luedeman stated that the Housing Authority has no plans at this time to place more housing stock in Woodburn. They are looking toward the potential development of housing stock in the Jefferson area in order to address some of the housing needs of that area. He also discussed funding issues and restrictions imposed by federal government agencies which has made it difficult in more recent years to build additional housing units. 1127 Brief discussion was also held on Section 8 housing within the City. It was noted that Page 2 - Council Workshop Meeting Minutes, September 30, 1996 -r .... -'"~.'-. ..,.,..,-"......~...+._--_._~ - . ..,., COUNCIL WORKSHOP MEETING MINUTES September 30, 1996 TAPE READING property owners who receive these subsidized housing payments do pay full value of property taxes. Discussion was also held on temporary housing units built by local farmers. County land use laws do allow for temporary housing but long term housing must be in an urban area where water and sewer are available. It was also noted that temporary housing is allowed as an outright use if the housing is limited to less than 100, otherwise, a conditional use permit is required. There are approximately 5 farms in Marion County that provide for temporary housing of migrant laborers. There is a financial aid program available to farmers who do elect to provide temporary housing. 1550 Ray Teasley, Council of Governments, stated that regulatory agencies make it very difficult for farmers to place temporary housing on their property. In regards to tax payments made by farmers, a farm use assessment does provide farmers with a deferral of taxes. 1672 Tom Waggonner, 849 Woodland, expressed his concern regarding the cost to the City not only for public services but education. In his opinion, residential property should not be tax-exempt since it does represent a burden for all of the other taxpayers in the taxing district. Preston Tack, 2197 Camellia Way, stated that farmers used to be organized into local granges and, if this is still the case, he suggested that the problem of providing temporary housing be turned over to the Grange with the support of local government. 1847 Dennis KilfofIl, County Housing Authority Finance Manager, reviewed statistical information regarding changes in population, housing assistance, and Section 8 program. He stated that the Housing Authority owns 150 housing units in Marion County of which Woodburn has 63 units. He also reviewed the PILOT program which was passed by Congress many years ago and sets a limit on how much the Housing Authority can pay in-lieu-of taxes to a local government. Laten Frawley, Planning Commission member, expressed his concern over the number of total housing units in Woodburn that do not pay taxes. Sy Meigs, 1710 Woodland Avenue, stated that farm areas around the City should help pay for the services being provided since they use the workers that live in the City. It was the consensus of several members in attendance that this is an issue that needs to addressed at higher levels - either state or federal. 2818 Councilor Jennings expressed his appreciation to the County officials who participated at this meeting and for sharing their future plans with the City which includes not placing more housing units in the City. Page 3 - Council Workshop Meeting Minutes, September 30, 1996 -.- ~*~,_.---_._.,.. - .~..... .,...-.-.--- .."-_....,,...~._,,-~-_._._--_."..,_.. - 'h COUNCIL WORKSHOP MEETING MINUTES September 30, 1996 TAPE READING 2853 ADJOURNMENT. The workshop concluded at 8:23 p.m.. ~l ail APPROVED!- / h1~ ~ .~~ NANCY A. SEY, MAY I R ATTEST (Y\0-'1-~'--Y~-=f- Mary Te ant, Recorder City of Woodburn, Oregon Page 4 - Council Workshop Meeting Minutes, September 30, 1996 .-- ^ H.,^...,~.. .~"" ...._.~____,....._.~~__.,"_._" .-"_. '_"'~_"~~.'.,""-__..". WI .. '.