Ord 2237 - Reim Dist Craig Realt
COUNCIL BILL NO. 1976
ORDINANCE NO. 2237
AN ORDINANCE ESTABLISHING A PROCESS FOR THE FORMATION OF A
REIMBURSEMENT DISTRICT IN ORDER TO PROVIDE A MECHANISM
WHEREBY THE PROPERTIES WIDCH WILL BENEFIT BY THE CONSTRUCTION
OF THE REQUIRED PUBLIC IMPROVEMENTS BY CRAIG REALTY GROUP,
WOODBURN LLC, WILL SHARE IN THE COST OF THOSE IMPROVEMENTS;
PROTECTING THE PUBLIC INTEREST; AND DECLARING AN EMERGENCY.
WHEREAS, the City in 1998 previously approved land use applications in City of
Woodburn File Nos, Annexation 98-02, Comprehensive Plan Map Amendment 98-01, Zone Map
Amendment 98-03, Finding of Conformance 92-01 and 92-02, Site Plan Review 98-05 and
Variances 98-04,98-05 and 98-06 (hereinafter "the land use approvals") submitted by Craig
Realty Group, Woodburn LLC (hereinafter "the Developer"); and
WHEREAS, one development condition, contained in the land use approvals, related to
the installation of the traffic signal to be located at the intersection of Woodland Avenue and State
Highway 219:
"The applicant shall install a traffic signal at the intersection of Woodland
Avenue and State Highway 219, using applicant's proceeds, as well as those of
previously conditioned applicants, and other subsequently benefitted properties,
and funds from any local improvement district ("UD ''). In the event the LID is
not approved. the applicant shall abide bv the cost sharin~ decision of the City
Council, The installation of the signal shall be subject to ODOT approval.
(emphasis added)" and;
WHEREAS, another development condition, contained in the land use approvals, related
to the improvement and extension of Arney Road to Woodland Avenue and its connection to
State Highway 219:
"To accomplish the portion of the project for which costs are to be shared by
other benefitted properties, a formal city UD process shall be followed Exhibits
"A" and "B" demonstrate a possible method of sharing costs within the UD, In
the event the LID is not aoproved the applicant shall abide bv the decision of the
City Council as to oroject transportation improvement cost sharing, (emphasis
added) "and;
WHEREAS, the Developer cannot now appeal these development conditions to the Land
Use Board of Appeals because the time for this appeal has passed; and
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Ordinance No. 2237
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WHEREAS, the Developer has not petitioned the City for approval of an LID, no LID
has been approved by the City, and according to the terms of both development conditions, if an
LID is not approved, the Developer shall abide by the decision of the City Council; and
WHEREAS, there are certain properties not owned by the Developer, (the property
owned by Waremart, Inc, and the property owned by Offsprings Holdings LLC) which will
benefit from the Developer's construction of the above-referenced public improvements, and
which have previously imposed City development conditions which require them to share a
portion of the cost of constructing the public improvements after the public improvements are
completed (hereinafter "the previously conditioned properties"); and
WHEREAS, there are certain other properties not owned by the Developer, (the property
owned by Dale W. Baker and the property owned by Moore Clear Company, Inc) which will
benefit from the Developer's construction of the above-referenced public improvements, and
which should be required to share a portion of the costs of constructing the public improvements
at the time these properties develop (hereinafter "the future developable properties"); and;
WHEREAS, the Developer has benefitted by the land use approvals and is in the process
of completing the construction of its project; and
WHEREAS, the City Council finds that establishing a process for the formation of a
reimbursement district will provide a mechanism whereby both the previously conditioned
properties and the future developable properties will share in the cost of the public improvements
constructed by the Developer; and
WHEREAS, the Developer's share of the cost of the required public improvements will
be the cost of installing the improvements offset by that portion of the costs that can be recovered
by the Developer from the previously conditioned properties and the future developable
properties, through the reimbursement district process; and
WHEREAS, the City Council further finds that it has a duty to safeguard any involved
public funds and, to the best of its ability, protect the public against any costs or litigation related
to private development; NOW, THEREFORE,
THE CITY OF WOODBURN ORDAINS AS FOLLOWS:
Section 1. Definitions. The following terms are defined as follows for the purposes of
this Ordinance,
A. "City" means the City of W oodbum, Oregon.
B, "Developer" means a person who is required or chooses to finance some or all of
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Ordinance No. 2237
the cost of a street, water or sewer improvement which is available to provide
service to property, other than property owned by the person, and who applies to
the City for reimbursement for the expense of the improvement.
C. "Development Permit" means any final land use decision, limited land use
decision, expedited land division decision, partition, subdivision, or driveway
permit.
D. "Person" means a natural person, the person's heirs, executors, administrators or
assigns; a firm, partnership, corporation, association or legal entity, its or their
successors or assigns; and any agent, employee or representative thereof
E, "Public Improvement" means any construction, reconstruction or upgrading of
water, stormwater, sewer or street improvements
F. "Public Works Director" means the Public Works Director of the City of
Woodburn.
G. "Reimbursement Agreement" means the agreement between the Developer and the
City which is authorized by the City Council and executed by the City
Administrator, providing for the installation of and payment for reimbursement
district public improvements.
H, "Reimbursement District" means the area which is determined by the City Council
to derive a benefit from the construction of public improvements, financed in
whole or in part by the Developer,
I. "Reimbursement Fee" means the fee required to be paid by a resolution of the City
Council and the reimbursement agreement, The City Council resolution and
reimbursement agreement shall determine the boundaries of the reimbursement
district and shall determine the methodology for imposing a fee which considers
the cost of reimbursing the Developer for financing the construction of the
improvement within the reimbursement district,
Section 2.
Application to Establish a Reimbursement District.
A. A person who is required to or chooses to finance some or all of the cost of a
public improvement which will be available to provide service to property other
than property owned by the person may by written application filed with the
Public Works Director request that the City establish a reimbursement district.
The public improvement must be of a size greater than that which would otherwise
ordinarily be required in connection with an application for a building permit or
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Ordinance No. 2237
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development permit or must be available to provide service to property other than
property owned by the Developer, so that the public will benefit by making the
improvement,
B, The application shall be accompanied by an application fee, in the amount of
$1000, which the City Council has determined reasonable to cover the cost of the
preparation of the Public Works Director's Report and notice pursuant to this
ordinance,
C, The application shall include the following:
1. A written description of the location, type, size and cost of each public
improvement which is to be eligible for reimbursement.
2. A map showing the boundaries of the proposed reimbursement district, the
tax account number of each property, its size and boundaries,
3, A map showing the properties to be included in the proposed
reimbursement district~ the zoning district for the properties~ the front
footage and square footage of said properties, or similar data necessary for
calculating the apportionment of the cost~ the property or properties owned
by the Developer~ and the names and mailing addresses of owners of other
properties to be included in the proposed reimbursement district.
4, The actual or estimated cost of the public improvements,
D, The application may be submitted to the City prior to the installation of the public
improvement but not later than 180 days after completion and acceptance of the
public improvements by the City.
Section 3. Public Works Director's Report. The Public Works Director shall
review the application for the establishment of a reimbursement district and evaluate whether a
district should be established. The Public Works Director may require the submission of other
relevant information from the Developer in order to assist in the evaluation. The Public Works
Director shall prepare a written report for the City Council that considers and makes a
recommendation concerning each of the following factors:
A. Whether the Developer will finance, or has financed some or all of the cost of the
public improvement, thereby making service available to property, other than that
owned by the Developer.
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Ordinance No. 2237
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B. The boundary and size of the reimbursement district.
C, The actual or estimated cost of the public improvement serving the area of the
proposed reimbursement district and the portion of the cost for which the
Developer should be reimbursed for each public improvement,
D, A methodology for spreading the cost among the properties within the
reimbursement district and, where appropriate, defining a "unit" for applying the
reimbursement fee to property which may, with City approval, be partitioned,
subdivided, altered or modified at some future date,
E, The amount to be charged by the City for an administration fee for the
reimbursement agreement, The administration fee shall be fixed by the City
Council and will be included in the resolution approving and forming the
reimbursement district. The administration fee is due and payable to the City at the
time the agreement is signed.
F, Whether the public improvements will or have met City standards,
G, Whether it is fair and in the public interest to create a reimbursement district.
Section 4.
Amount to be Reimbursed.
A. A reimbursement fee shall be computed by the City for all properties within the
reimbursement district, excluding property owned by or dedicated to the City or
the State of Oregon, which have the opportunity to use the public improvements,
including the property of the Developer, for formation of a reimbursement district.
The fee shall be calculated separately for each public improvement. The Developer
for formation of the reimbursement district shall not be reimbursed for the portion
of the reimbursement fee computed for its own property,
B. The cost to be reimbursed to the Developer shall be limited to the cost of
construction engineering, construction, and off-site dedication of right of way,
Construction engineering shall include surveying and inspection costs and shall not
exceed 7.5% of eligible public improvement construction cost. Costs to be
reimbursed for right of way shall be limited to the reasonable market value ofland
or easements purchased by the Developer from a third party in order to complete
off-site improvements.
C, No reimbursement shall be allowed for the cost of design engineering, financing
costs, permits or fees required for construction permits, land or easements
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dedicated by the Developer, the portion of costs which are eligible for systems
development charge credits or any costs which cannot be clearly documented.
D. Reimbursement for legal expenses shall be allowed only to the extent that such
expenses relate to the preparation and filing of an application for reimbursement.
E, Reimbursement for the amount of the application fee required by Section 2 on this
ordinance.
Section 5.
Public Hearinv:.
A. Within 45 days after the Public Works Director has completed the report required
in Section 3, the City Council shall hold an informational public hearing in which
any person shall be given the opportunity to comment on the proposed
reimbursement district, Because formation of the reimbursement district does not
result in an assessment against property or lien against property, the public hearing
is for informational purposes only and is not subject to mandatory termination
because of remonstrances. The City Council has the sole discretion after the public
hearing to decide whether a resolution approving and forming the reimbursement
district shall be adopted.
B. Not less than ten (10) days prior to any public hearing held pursuant to this
Ordinance, the Developer and all owners of property within the proposed district
shall be notified of the public hearing and the purpose thereof. Such notification
shall be accomplished by either regular and certified mail or by personal service,
Notice shall be deemed effective on the date that the letter of notification is mailed
Failure of the Developer or any affected property owner to be so notified shall not
invalidate or otherwise affect any reimbursement district resolution or the City
Council's action to approve the same,
C. If a reimbursement district is formed prior to construction of the improvement(s), a
second public hearing, subject to the same notice requirements, shall be held after
the improvement has been accepted by the City. At that time, the City Council at
its discretion may modify the resolution to reflect the actual cost of the
improvement( s).
Section 6.
City Council Action.
A. After the public hearing held pursuant to Section 5(A), the City Council shall
approve, reject or modify the recommendations contained in the Public Works
Director's report. The City Council's decision shall be contained in a resolution,
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Ordinance No, 2237
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If a reimbursement district is established, the resolution shall include the Public
Works Director's report as approved or modified, and specify that payment of the
reimbursement fee, as designated for each parcel, is a precondition of receiving any
city permits applicable to development of that parcel as provided for in Section 10.
B, The resolution shall establish an interest rate to be applied to the reimbursement
fee as a return on the investment of the Developer, The interest rate shall be fixed
and computed against the reimbursement fee as simple interest and will not
compound.
C. The resolution shall instruct the City Administrator to enter into an agreement with
the Developer pertaining to the reimbursement district improvements If the
agreement is entered into prior to construction, the agreement shall be contingent
upon the improvements being accepted by the City. The agreement shall contain at
least the following provisions:
1. The public improvement(s) shall meet all applicable City standards.
2, The total amount of potential reimbursement to the Developer shall be
specified,
3, The total amount of potential reimbursement shall not exceed the actual
cost of the public improvement(s),
4. The Developer shall guarantee the public improvement(s) for a period of
twelve (12) months after the date ofinstallation.
5, A clause in a form acceptable to the City Attorney stating that the
Developer shall defend, indemnify and hold harmless the City from any and
all losses, claims, damage, judgments or other costs or expense arising as a
result of or related to the City's establishment of the reimbursement
district, including any City costs, expenses and attorney fees related to
collection of the reimbursement fee should the City Council decide to
pursue collection of an unpaid reimbursement fee under Section 10(H),
6. A clause in a form acceptable to the City Attorney stating that the
Developer agrees that the City, can not be held liable for any of the
Developer's alleged damages, including all costs and attorney fees, under
the agreement or as a result of any aspect of the formation of the
reimbursement district, or the reimbursement district process, and that the
Developer waives, and is estopped from bringing, any claim, of any kind,
including a claim in inverse condemnation, because the Developer has
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Ordinance No. 2237
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benefited by the City's approval of its development and the required
improvements.
7. Other provisions the City determines necessary and proper to carry out
the provisions of this Ordinance,
C. Ifa reimbursement district is established by the City Council, the date, of the
formation of the district shall be the date that the City Council adopts the
resolution forming the district.
Section 7. Notice of Adoption of Resolution, The City shall notify all property
owners within the district and the Developer of the adoption of a reimbursement district
resolution. The notice shall include a copy of the resolution, the date it was adopted and a short
explanation specifying the amount of the reimbursement fee and that the property owner is legally
obligated to pay the fee pursuant to this ordinance.
Section 8. Recordina the Resolution. The City Recorder shall cause notice of
the formation and nature of the reimbursement district to be filed in the office of the Marion
County Clerk so as to provide notice to potential purchasers of property within the district.
Said recording shall not create a lien. Failure to make such recording shall not affect the
legality of the resolution or the obligation to pay the reimbursement fee.
Section 9. Contestina the Reimbursement District. No legal action intended to
contest the formation of the district or the reimbursement fee, including the amount of the
charge designated for each parcel, shall be filed after sixty (60) days following the adoption of
a resolution establishing a reimbursement district and any such legal action shall be exclusively
by Writ of Review pursuant to ORS 34,010 to ORS 34.102.
Section 10. Obliaation to Pay Reimbursement Fee.
A. The applicant for a permit related to property within any reimbursement district
shall pay the City, in addition to any other applicable fees and charges, the
reimbursement fee established by the Council, if within 10 years after the date of
the passage of the resolution forming the reimbursement district, the person applies
for and receives approval from the City for any of the following activities:
1, A building permit for a new building;
2. Building permits(s) for any addition(s) modification(s), repair(s) or
alteration( s) of a building, which exceed twenty five percent (25%) of the
value of the building within any 12-month period, The value of the
building shall be the amount shown on the most current records of the
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Ordinance No, 2237
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county Department of Assessment and Taxation for the building's real
market value. This paragraph shall not apply to repairs made necessary
due to damage or destruction by fire or other natural disaster;
3. A development permit, as that term is defined by this ordinance,
4. A City permit issued for connection to a public improvement.
B. The City's determination of who shall pay the reimbursement fee and when the
reimbursement fee is due is final.
C. In no instance shall the City, or any officer or employee of the City, be liable
for payment of any reimbursement fee, or portion thereof, as a result of the
City's determination as to who should pay the reimbursement fee. Only those
payments which the City has received from or on behalf of those properties
within a reimbursement district shall be payable to the Developer. The City's
general fund or other revenue sources shall not be liable for or subject to
payment of outstanding and unpaid reimbursement fees imposed upon private
property.
D. Nothing in this ordinance is intended to modify or limit the authority of the City
to provide or require access management.
E. Nothing in this ordinance is intended to modify or limit the authority of
the City to enforce development conditions which have already been
imposed against specific properties.
F. Nothing in this ordinance is intended to modify or limit the authority of
the City, in the future, to impose development conditions against specific
properties as they develop.
G. No person shall be required to pay the reimbursement fee on an application or
upon property for which the reimbursement fee has been previously paid, unless
such payment was for a different type of improvement. No permit shall be
issued for any of the activities listed in subsection lO(A) unless the
reimbursement fee, together with the amount of accrued interest, has been paid
in full. Where approval is given as specified in subsection lO(A), but no permit
is requested or issued, then the requirement to pay the reimbursement fee lapses
if the underlying approval lapses.
H. The date of reimbursement under this Ordinance shall extend ten (10) years
from the date of the formation of a reimbursement district formation by City
Council resolution.
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Ordinance No. 2237
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I. The reimbursement fee is immediately due and payable to the City by property
owners upon use of a public improvement as provided by this ordinance in
section lO(A). If connection is made or construction commenced without
required city permits, then the reimbursement fee is immediately due and
payable upon the earliest date that any such permit was required.
J. Whenever the full reimbursement fee has not been paid and collected for any
reason after it is due, the City Administrator shall report to the City Council the
amount of the uncollected reimbursement, the legal description of the property
on which the reimbursement is due, the date upon which the reimbursement was
due and the property owner's name or names. The City Council shall then, by
motion, set a public hearing date and direct the City Administrator to give
notice of that hearing to each of the identified property owners, together with a
copy of the City Administrator's report concerning the unpaid reimbursement
fee. Such notice may be either by certified mail or personal service. At the
public hearing, the City Council may accept, reject or modify the City
Administrator's report. If the City Council determines that the reimbursement
fee is due but has not been paid for whatever reason, the City Council may, at
its sole discretion, act, by resolution, to take any action, it deems appropriate,
including all legal or equitable means necessary to collect the unpaid amount.
After the City Council has made the determination that the reimbursement fee is
due but has not been paid, the Developer shall have a private cause of action
against the person legally responsible for paying the reimbursement fee.
Section 11. Public Improvements. Public improvements installed pursuant to
reimbursement district agreements shall become and remain the sole property of the City,
Section 12. Multiple Public Improvements, More than one public improvement may
be the subject of a reimbursement district.
Section 13. Collection and Payment: Other Fees and Charees,
A. The Developer shall receive all reimbursement collected by the City for
reimbursement district public improvements, Such reimbursement shall be
delivered to the Developer for as long as the reimbursement district agreement is
in effect. Such payments shall be made by the City within ninety (90) days of
receipt of the reimbursements.
B. The reimbursement fee is not intended to replace or limit, and is in addition to, any
other existing fees or charges collected by the City.
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Ordinance No, 2237
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Section 14. Nature of the Fees. The City Council finds that the fees imposed by this
Ordinance are not taxes subject to the property tax limitations of Article XI, section 11(b) of the
Oregon Constitution.
Section 15. Severability. If any part of this ordinance is held invalid by a court of
competent jurisdiction, the remainder of this ordinance shall remain in effect.
Section 16. Emereency 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 City Council and approval by the
::::~ed as to fO~ ({Yo ~ 6 - '25 - '1 '1
City Attorney Date
APPROVED:~' 4. ~ "-- ~
Richard Jennings, M or ,
Passed by the Council June 28 , 1999
Submitted to the Mayor June 30, 1999
Approved by the Mayor June 30, 1999
Filed in the Office of the Recorder June 30. 1999
ATTEST: a.A..t.
Mary ant, City Recorder
City of Woodburn, Oregon
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Ordinance No, 2237
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