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Res 1554 - Reimb Fees Arney Rd '- COUNCn.. Bll..L NO. 1993 RESOLUTION NO. 1554 AN RESOLUTION ESTABLISHING A REIMBURSEMENT DISTRICT FOR THE IMPROVEMENT OF ARNEY ROAD; DESIGNATING THE REIMBURSEMENT FEES PAYABLE BY PARCELS LOCATED WITHIN THE DISTRICT BOUNDARIES; FIXING THE ADMINISTRATION CHARGE AND INTEREST RATE; AND SETTING AN EFFECTIVE DATE. WHEREAS, Craig Realty' Group, Woodburn LLC (hereinafter "the Developer") previously applied for and was granted land use approvals by the City for Phase I of its development project in 1998~ and WHEREAS, one condition of development approval was that the Developer improve Arney Road~ and WHEREAS, there are properties which are not owned by the Developer which will benefit by the Arney Road improvement~ and WHEREAS, the City Council previously passed Ordinance No. 2237, "An Ordinance Establishing a Process for the Formation of a Reimbursement District in Order to Provide a Mechanism Whereby the Properties Which 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"; and WHEREAS, the Developer has applied to the City Council for the establishment of a reimbursement district under Ordinance No. 2237 for the construction of the Arney Road public improvement~ and WHEREAS, the Public Works Director has reviewed and evaluated the Developer's application and has submitted a written report to the City Council~ and WHEREAS, the City has provided mailed notice of the proposed reimbursement district to the Developer and all owners of property within the proposed district; and WHEREAS, the City Council held an informational public hearing on September 13, 1999, to consider the Public Works Director's report and to allow any interested persons an opportunity to comment on formation of the proposed reimbursement district; NOW, THEREFORE, THE CITY OF WOODBURN RESOLVES AS FOLLOWS: Page 1 - COUNCIL BILL NO. 1993 RESOLUTION NO. 1554 '. -' ,-"",~." "--"-r-"--'--- '~ Section 1. The Public Works Director's report, attached to this resolution as Exhibit A, and by this reference incorporated herein, is hereby approved. Section 2. A reimbursement district for the improvement of Arney Road is hereby established. Section 3. Payment of the applicable reimbursement fee specified in the Public Works Director's report is a precondition of receiving City permits applicable to the development of parcels located within the reimbursement district pursuant to Ordinance No. 2237. . '. Section 4. The amount of the administration charge, payable to the City by the Developer at the time the agreement specified in Section 6 below is signed, shall be fixed at $4,518.82. Section 5. The interest rate to be applied to the reimbursement fees is set at 8.25%. This interest rate shall be computed against the reimbursement fee as simple interest and shall not compound. Accrual of interest shall start 30 days after this resolution is effective. Section 6. The City Administrator is instructed to enter into an agreement with the Developer, as specified in Section 6 C of Ordinance 2237. The form of this agreement is attached to this resolution as Exhibit B and is, by this reference, incorporated herein Section 7. This resolution is effective at the time the agreement referred to in Section 6 is signed by both Partil')J Approved as to form: .~r>tO q-jo - 0;1 City Attorney Date , < Passed by the Council Submitted to the Mayor Approved by the Mayor Filed in the Office of the Recorder ATI'EST: /1~ ~ Mary T ant, City Recorder City of Woodburn, Oregon September 13, 1999 September 14, 1999 September 14, 1999 Seotember 14. 1999 Page 2 - COUNCIL BILL NO. RESOLUTION NO. ,_......-...... ..'""'-~."~-'-"_......~......,,-~_.. 6 EXHIBIT A Page --'- of 1/) PUBLIC WORKS DIRECTOR'S REPORT In Response to Application by Craig Realty Group, Woodburn LLC for Establishment of a Reimbursement District for Arney Road Street, Sidewalk and Storm Drainage Improvements in the Proposed Amount of $863,143 SECTION 1: CONTENT OF PUBLIC WORKS DIRECTOR'S REPORT This report follows the criteria established in Ordinance 2237 which was approved by council on June 28, 1999. This written report considers and makes a recommendation concerning each of the following factors: A. The project, Attachment "A", for which an application has been made for formation of a reimbursement district, the reasons for the cost distribution proposal, and an evaluation of the public interest served by the project. B. The actual or contracted cost of the public improvement serving the area of the proposed reimbursement district and the portion of the public improvement cost that is reimbursable. C. The boundary and size of the reimbursement district. D. A methodology for spreading the cost among the properties within the reimbursement district and, where appropriate, defining a Uunit" 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. SECTION 2: APPLICATION FOR ESTABLISHMENT OF REIMBURSEMENT DISTRICT Craig Realty Group, Woodburn LLC made application to the City of Woodburn for the establishment of a reimbursement district for a public improvement as outlined in Section 2 of City of Woodburn Ordinance 2237. The project is: . The widening and extension of Arney Road to Woodland Avenue and improvement of a portion of Woodland Avenue toward Hwy 219. Page 1 of 5 - Public Works Director's Report ~-'~'" ," ,.."" '.. ,~," EXHIBIT A Page 2- of I () The application was made in accordance with the requirements of Section 2 of Ordinance 2237. I have read the project description in the application, reviewed project plans, reviewed the project with technical staff and have made site visits which indicated that the Arney Road street improvements have been designed and constructed to comply with city standards and provide safe and effective transportation service to the affected area. The concept of financing this project utilizing a Local Improvement District (LID) has been acceptable to the City Council. This improvement has been considered to be important and beneficial to the properties in the area and, therefore, cost sharing conditions were placed on certain properties prior to the site developmental approval by the council. The properties which have not, at this time, made application for any development but which will benefit from the improvements, when developed, are included in the reimbursement district. Although the developer did not utilize the LID process, the developer did discuss this concept as well as the concept of voluntary cost sharing among the property owners by agreement without city involvement. The reimbursement district, if approved by council, will provide a mechanism for cost distribution among the properties which benefit from the improvements made by the applicant. In the absence of the LID process or an agreement among the benefitted property owners, it is fair and in the public interest to create a reimbursement district for the Arney Road street improvements because the improvement benefits the public and provides a safer and more efficient transportation system. SECTION 3: FINANCING FOR THE ARNEY ROAD IMPROVEMENT REIMBURSEMENT DISTRICT The developer indicates that he has financed all of the costs associated with the Arney Road improvements, and the services provided by this public improvement are available to property other than that owned by the developer. The contracted costs financed by the developer were included in the application. SECTION 4: COST OF THE PUBLIC IMPROVEMENT SERVING THE PROPOSED REIMBURSEMENT DISTRICT The modified cost of the improvements to Arney Road has been determined as $806,526. The application fee of $1,000 is a reimbursable expense as allowed by ordinance. The improvement costs provided by Craig Realty Group in their application were modified by the City Engineer after review. It is recommended that the final reimbursable cost, not subject to future changes, be established at $ 807,526 . Page 2 of 5 - Public Works Director's Report '---w-'.,,--' EXHIBIT A Page~ of iO The modifications included several items. Costs for an ineligible concrete island and duplicate costs for a small portion of roadway work and storm drain basins were removed. Costs for vaults and conduit for Portland General Electric (PGE) were reduced based on the final cost information provided by the applicant's contractor. Similarly, gas line trenching was reduced and phone relocation cost was eliminated. The street intersection drainage improvement cost, in the amount of $7,610.00 plus traffic lane configuration cost in the amount of $5,999.00 have been shifted from Arney Road project to traffic signal project. The unit costs from previously awarded city contracts were compared with and utilized to determine the overall cost of the project. Also, the engineer's estimate provided by the developer was utilized for comparative purposes. The project cost has been found to be within 3.6 percent of the final cost estimate of the developer's engineer and determined to be within 2.5 percent of city estimate based on the unit cost. Therefore, the project cost is acceptable for cost sharing purposes. SECTION 5: BOUNDARY AND SIZE OF THE REIMBURSEMENT DISTRICT In accordance with Ordinance 2237 the reimbursement district provides a mechanism whereby both previously conditioned properties and future developable properties will share in the costs of the public improvements that have been constructed by Craig Realty Group-Woodburn LLC. Property owned by or dedicated to the City or the State of Oregon is excluded from the reimbursement district. Craig Development Realty and Offspring Holdings-Hershberger were conditioned in their land use approval that they contribute to the costs of the Arney Road improvements. There are certain other undeveloped properties along Arney Road that will benefit from the improvement when they are developed in the future. They include one parcel owned by Dale W. Baker, one parcel owned by Craig Development Realty and two parcels owned by Moore Clear Company. The following reimbursement district properties are to be considered as part of the reimbursement agreement for the improvements to Arney Road: 1. Craig Realty Group (2 parcels) 2. Moore Clear Company (2 Parcels) 3. Offsprings Holdings-Herschberger 4. Dale W. Baker These properties are outlined in the map included as Attachment fiB". Page 3 of 5 - Public Works Director's Report ,__,,,_ _'___,.~'_.._...,... .___,'.-._,.,' M____.... ,. EXHIBIT A page.i/-- of I () SECTION 6: METHODOLOGY FOR REIMBURSEMENT FEE ALLOCATION TO REIMBURSEMENT DISTRICT The reimbursement district for the Arney Road street improvements includes property that is all commercially zoned. Not all of the reimbursement properties, however, are located along the improvement. Two properties, Craig Realty (two parcels) and Offsprings-Hershberger, are located off of the improvement. All of the other properties that are considered part of the reimbursement district adjoin the public improvement. There are two common methods, area and front footage, for apportionment of costs for a reimbursement agreement for roadway construction that are most applicable to the Arney Road project. As discussed above, some of the properties that have been determined to be part of the reimbursement district are located adjacent to Arney Road, and other properties are off the improvement but contribute a significant portion of the traffic that required that the improvement be made. The area of the properties is appropriate as a measure to determine responsibility for the improvements. For the properties that are not located on the roadway, but do contribute to the roadway traffic, this is a fair method since all of the properties involved have similar zoning and all current and projected future uses are commercial in nature. For properties that are tocated adjacent to Arney Road, front footage is a fair method of determining cost responsibility since this would make these properties responsible for the street improvement adjacent to their property. Since there are properties adjacent to and off of the improvement project, it is fair and reasonable that the basis for reimbursement fee be shared between the "area" and "front footage" methods of determining a unit for cost share allocation. The share between these two methods will be determined on a percentage contribution basis. The properties with frontage on Arney Road will also be proportionally responsible for the area of their property. It has been determined that, to avoid an unreasonable subsidy to any property, a reasonable split will be to factor sixty (60) percent (%) for area and forty (40) percent (%) for front footage in computation of the percentage responsibility for all properties in the reimbursement district for the project. Attachment "c" includes the distribution of costs in accordance with the above procedure. Page 4 of 5 - Public Works Director's Report '---y--' EXHIBITk. A Page~ of It) SECTION 7: ADMINISTRATIVE FEE AND INTEREST RATE TO BE APPLIED TO REIMBURSEMENT DISTRICT A. It is recommended that the administration fee as outlined in Section 3 of Ordinance 2237 shall be as follows: 1. Project cost up to $ 250,000 at one percent (1 %). 2. Project cost from $250,001 to $500,000 at one-half percent (% %). 3. Project cost greater than $500,000 at one-quarter percent (% %). B. It is recommended that the interest rate to be applied to the unpaid reimbursement fee be fixed at eight and 1/4 percent (8.25 %), the prime interest rate on September 1, 1999. It is proposed that interest accrual on the reimbursement fee start 30 days after the effective date of the formation of the reimbursement district. The approved ordinance defines that the interest rate shall be fixed and computed against the reimbursement fee as simple interest and will not compound. RR\ArneyRoad-PWDirecRpt Page 5 of 5 - Public Works Director's Report "'-T' Pa~ 1f 2 ATTACHMENT II A" EXHIBit A Page ... t.:7 of J n ARNEY ROAD/WOODLAND AVENUE STREET IMPROVEMENT Looking East Along New Arney Road Connection to Woodland Avenue DESCRIPTION: The street improvements involve approximately 2,050 linear feet of road construction. Arney Road construction extends from the south edge of the Hershberger dealership to Woodland Avenue. Woodland Avenue was improved in the vicinity of Myrtle Street and at the intersection with the highway. Also a new intersection to connect the old Arney Road segment with the new roadway was also constructed. The new road is 48' wide allowing for two travel lanes, a two way center turn lane and bike lanes. Sidewalks were also constructed and storm drainage was added to the roadway and a box culvert was installed at the east tributary of Senecal Creek under Arney Road. "~"._,._-" .-._-,--~""~..,..".,_._._,,_.,,._, --z-$- z o~ ~z ~~ ~~ co~ ~~ ffitu ~w ~~ z u.., 00 Z e__'p_ .,..e ....'" , ATTACHMENT "A" MAP SHOWING REIM BURSABLE PORTION OF ARNEY ROAD IMPROVEMENTS ~ a:: a CD :::> -I u ~O~ HdlOONV~ D\ ovo~ 8nlJ A~lNnOJ "3^V ~V03:) pagt. ' 2 EXHIBIT A page..2- of 10 a <( o a:: a:: w Z ~ "t ~ C'l o Z ). ~ :x: w j ~ AVM NOD3~O 'O~ N33HDH3/l3 '3^V ONVlOOOM Page 1 ~ ATTACHMENT "8" EXHIBIJ.- A page-L of 10 PROPOSED REIMBURSEMENT DISTRICT PROPERTIES In Accordance with Ordinance 2337 ARNEY ROAD Marion County Map Number Tax Lot(s) Property Owner Mailing Address 1. 052W12B 1101 Dale W. Baker 2874 Newberg Highway Woodburn, OR 97071 2. 052W12B 600 Moore Clear Co. (Parcel 1) 535 Third Street lake Oswego, OR 97034 3. 052W12B 601 Moore Clear Co. (Parcel 2) 535 Third Street lake Oswego, OR 97034 4. 052W12B 701 Offsprings Holdings, LLC PO Box 586 Woodburn, OR 97071 5. 052W12B 200 Craig Realty Group- 1500 Quail Street 301 Woodburn, LlC (Parcel 1 ) Suite 100 702 Newport Beach, CA 92660 800 Attention: Steven L. Craig 6. 052W12B 101 Craig Realty Group- 1500 Quail Street Woodburn, lLC (Parcel 2) Suite 100 Newport Beach, CA 92660 Attention: Steven L. Craig RR\ReimburseDislProperties ._---y-' ,_",_. ,'._,_. ,,___,n" _,,,., .", " ATTACHMENT liB" REIMBURSEMENT PROPERTIES ARNEY ROAD Page 2 EXH181I, _ It Page -2- of I () SEEl052W01c ,'4 COR G80 06 41E (1356 is) 6,OOAC i03 03 03 0 HI.8+4 0-1 (723_12041 $&a nE 10.11 CM @ ~ ~ /...... <r:v: ~ ~ ~ t<)TE' ~E~.~~ ~ "",00<- 300 20,32 .<C i ! s ~ 200 g ~ Ii U.... i ..... CID 103 00 03 0 '>.. t<<>lE'~~~ .,..en 1\') 9~-/ 602 ...,.ca. r' 9.1UC (s' l .) 9 j\5 103 03 03 0 / ~!Y 0~35 <0 O' 0 ~ ~ #- ...;f i;Q.~ ' (:) ~, S! It, ~ ~I ~"?: , o f $ I ~ I ~ I ! I , I f I I I @ IO.,.'" 1000 ...... . . ."""'."""#"~""""."'.,. . .,,~,...~~.~0.".""" .... 00 v~ ~ 1',<0 , __ f....v .- .. -t~~C.-n AlTACHMENT "c" ALLOCATION OF IMRPOVEMENT COST~ N ~ FOR THE PROPERTIES LOCATED IN THl N ARNEY ROAD REIMBURSEMENT DISTRIC ci <D M 0> 0> """ """ <D EXHIBIT A- M ex> N ('i) ~ ~ iO ('i) '" 10 ~ M 0 Page /0 of 0> 0 '" N ex> 0 I-LU """ cO ~ ci u1 r-..: <D (/)0:: M N 0 ~ 10 <D N O~ N "it. 10 r-... """ 10 <D 0 """ ....: ex) ri '" o(/) "it ('i) 0 0 '" ~ 0 """ """ """ M ~ ~ ~ ~ ~ ~ ::R "$. 0 N N '" ex> <Xi r-... N "it , , <i ml "$. ::R "$. "$. "$. "$. ::R 0 0 """ 10 '" '" 10 10 0 1-<<5 """ """ 10 0 '" ('i) 0 0<( cO <0 N cO a) &ri 0 """ """ """ M 0 I- """ e!)o::: ::R ::R '#. "$. ::R "$. ::R 0 0 0 0 co ('i) .... 0 0 0 0 t-ZO! ~ C'! M 0 0 0 0 en-I-o cO 0 c:i ci ci ci o O::u "it ('i) ()~<(m .... .... .... 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('i) "it C!- O) Z . ex) ~ 0 ci ex) ..- ri Iii :5(/) 10 ex> <D ~ 0> "it I- """ ('i) """ """ 0 """ N Z ~ """ ~ """ ~ ~ :tt :tt ~ .... .... ~ ~ ~ m m m m 21 LU U U ~ 0- 0- 0::: 0:: 0 .... ~ ~ 0) 0) ~ 0:: Q) ~ 8 .~ .~ 0- ~ Q) ::E ~ U U J: --..,..-. .-,...........--........-,~..~,.".._'"..,..~, ~._"_~_.~,,_~I_m._. ..,.,.~~.... -',,~~.~__.~_,'" EXHIBIT J3 Page --L of 3 RE~BURSEMENTAGREEMENT ARNEY ROAD IMPROVEMENT This Agreement is entered into by and between Craig Realty Group, Woodburn LLC (hereinafter the "Developer") and the City of Woodburn, an Oregon municipal corporation, (hereinafter the "City"). WITNESSETH WHEREAS, the Woodburn City Council, pursuant to Ordinance No. 2237, created a reimbursement district for the improvement of Arney Road by passage of Resolution No. 1554; and WHEREAS, the City Council has determined, consistent with Ordinance No. 2237, that the City Administrator should enter into this Agreement on behalf of the City; and WHEREAS, said Resolution No. 1554 is effective at the time this Agreement is signed by the City and the Developer. 1. Creation of Reimbursement District. The parties acknowledge and agree that pursuant to Resolution No. 1554 the City created a reimbursement district for the improvement of Arney Road. Resolution No. 1554 and the Public Works Director's Report, which was approved by the City Council when the reimbursement district was created, are hereby incorporated herein and affixed hereto as Attachment" A", and shall become a part of this Agreement as if fully set forth herein. 2. Inspection of the Improvement. The City has inspected the public improvement and found that it meets all applicable standards, requirements and codes. 3. Total Amount of Potential Reimbursement. Pursuant to Resolution No. 1554, the parties agree that the total amount of potential reimbursement to the Developer is $421,329.98. The total amount of potential reimbursement does not exceed the actual cost of the public improvement plus the amount of the application fee as provided by Ordinance 2237. 4. Description of the Public Improvement. The public improvement which is the subject of the reimbursement district is described in Attachment "~'. 5. Property Owners Within the Reimbursement District. The affected parcels of property, the owners thereof and methodology employed by the City to spread the construction cost for the public improvement is set out in Attachment" A". Page 1 - Reimbursement Agreement - Arney Road Improvement .,_...,....-,., .,_",,,,0, .., ,__."",.."""".""",.."".,___ " p) EXHIBIt. ..?J page~ of - 6. Indemnification of City. 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 1O(H) of Ordinance No. 2237. 7. Developer's Waiver of All Claims Against City. The Developer agrees that the City cannot be held liable for any of the Developer's alleged damages. including all costs and attorney fees under this 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 benefitted by the City's approval of its development and the required improvements. 8. Guarantee. All work is guaranteed by the Developer for a period of twelve (12) months from the date of acceptance of the reimbursement district public improvements by the City. Developer warrants that all practices and procedures, workmanship and materials were the best available unless otherwise specified. Upon written demand by City, Developer shall immediately cure any defects in workmanship and/or materials in the improvements. City may use any funds due Developer under this Agreement to correct such defects if Developer fails to do so within thirty (30) days. In the event City takes such action. Developer remains liable for any amount necessary to correct the identified defects (as well as any and all other direct or consequential costs incurred by the City) that exceeds any amount(s) due Developer under this Agreement. 9. Ownership of Public Improvements. The improvements described in this Agreement shall become and remain the sole property of the City. 10. Collection of Reimbursements. The Developer acknowledges that the City is not obligated to pursue collection of the reimbursement from property owners within the district, and that Developer is only entitled to receive such funds actually paid to City by property owners within the district. The Developer's right to reimbursement shall end on September 13, 2009. 11. Administrative Fee. The Developer shall pay an administrative fee in the amount of $4,518.82 for administration of the Agreement by the City. The administration fee is due and payable to the City at the time the Agreement is signed. 12. Complete Agreement. This Agreement and the attachment constitute the complete agreement between the City and Developer and supersede all prior written or oral discussions or agreements. Page 2 - Reimbursement Agreement - Arney Road Improvement ""'-y"'.' "" .~." ' ,."..-- ,.-..-"., ,- .'" ..'.,.._--"". EXHIBIT 13 page:...2... of ~ IN WITNESS WHEREOF, the city has caused this Agreement to be executed by its duly authorized undersigned officer and the Developer has executed this Agreement on the date herein above first written. CRAIG REALTY GROUP-WOODBURN LLC By: Steven L. Craig Date STATE OF ) ) ss. ) County of The foregoing instrument was acknowledged before me this . 1999 by day of Notary Public for My Commission Expires: CITY OF WOODBURN By: John C. Brown, City Administrator Date STATE OF OREGON ) ) ss. ) County of Marion The foregoing instrument was acknowledged before me this ,1999. day of Notary Public for Oregon My Commission Expires: Page 3 - Reimbursement Agreement - Arney Road Improvement _.~"., .--y- ," , "".." ,._~-,_....'_.'-,,-, .~".,,-~--~-,,-_.