Minutes - 09/30/1996
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COUNCIL WORKSHOP MEETING MINUTES
September 30, 1996
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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
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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
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COUNCIL WORKSHOP MEETING MINUTES
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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
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COUNCIL WORKSHOP MEETING MINUTES
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2853 ADJOURNMENT.
The workshop concluded at 8:23 p.m..
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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
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