Res 1553 - Reim Dis Lt Woodland
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COUNCIL BILL NO. 1992
RESOLUTION NO. 1553
AN RESOLUTION ESTABLISHING A REIMBURSEMENT DISTRICT FOR
CONSTRUCTION OF A TRAFFIC SIGNAL PUBLIC IMPROVEMENT LOCATED AT
STATE HIGHWAY 219 AND WOODLAND AVENUE; DESIGNATING THE
REIMBURSEMENT FEES PA Y ABLE BYPARCELSWCATED WITHIN TBEDISTRICT
BOUNDARIES; FIXING THE ADMINISTRATION CHARGE AND INTEREST RATE;
AND SETTING AN EFFECTIVE DATE.
WHEREAS, Craig Realty Group, WoodbumLLC (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 install a traffic
signal at the intersection of State Highway 219 and Woodland Avenue; and
WHEREAS, there are properties which are not owned by the Developer which will benefit
by construction of the traffic signal~ 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 UC 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 traffic signal public
improvement located at State Highway 219 and Woodland Avenue; 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:
Section 1. The Public Works Director's report, attached to this resolution as Exhibit A, and
by this reference incorporated herein, is hereby approved.
Page 1 - COUNCIL BILL NO. 1992
RESOLUTION NO. 1553
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Section 2. A reimbursement district for the construction of the traffic signal public
improvement, located at State Highway 219 and Woodland Avenue 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 pennits applicable to the development of parcels
located within the reimbursement district pursuant to Ordinance No. 2237.
Section 4. The amount ofthe 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 $1,762.66.
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 parties.
Approved as to form7J~~ 1- /0- '11
City Attorney Date
APPROVED: I ~
Ric ard Jennings, Ma r
Passed by the Council
Submitted to the Mayor
Approved by the Mayor
Filed in the Office of the Recorder
ArrEST /ll~ ~
Mary Te ant, City Recorder
City of Woodburn, Oregon
September 13. 1999
September 14, 1999
September 14. 1999
September 14, 1999
Page 2 - COUNCIL BILL NO. 1992
RESOLUTION NO. 1553
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EXHIBIT A
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PUBLIC WORKS DIRECTOR'S REPORT
In Response to Application by Craig Realty Group, Woodburn LLC
for Establishment of a Reimbursement District for Traffic Signal
Installation at the Woodland Avenue/Highway 219 Intersection in
the proposed Amount of $160,263
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 "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.
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 installation of a traffic signal at the intersection of Woodland Avenue and
State Highway 219 including related pavement improvements.
Page 1 of 5 - Public Works Director's Report
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EXHIBIT A
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The application was made in accordance with the requirements of Section 2 of
Ordinance 2237. Clarifying communication on the application is also included.
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
Woodland Avenue/Highway 219 traffic signal improvements have been designed and
constructed to comply with city standards which 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 Woodland Avenue/Highway 219
traffic signal improvements because the improvement provides a safer and more
efficient transportation system to benefit the public and is an identified project in the
city's Transportation System Plan.
SECTION 3: FINANCING FOR THE WOODLAND AVENUE/ 219 TRAFFIC SIGNAL
IMPROVEMENT REIMBURSEMENT DISTRICT
The developer indicates that he has financed all of the costs associated with the traffic
signal improvement and the services provided by this public improvement are available
to property other than that owned by the developer. The costs financed by the
developer were included in the application.
SECTION 4: COST OF THE PUBLIC IMPROVEMENT SERVING THE PROPOSED
REIMBURSEMENT DISTRICT
The cost of the traffic signal improvements at the intersection of Woodland Avenue and
Highway 219 after modification is $ 175,266. The application fee of $1,000 is a
reimbursable expense as allowed by ordinance. The improvement costs provided by
Page 2 of 5 - Public Works Director's Report
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EXHIBIT A
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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 $ 176,266.00.
The modification allocated appropriate roadway improvement costs reported in the
Arney Road application, associated with the construction of the traffic signal, to the
project. Costs for an ineligible concrete island were removed. A small portion of the
storm drainage system improvement costs, belonging with the intersection project, and
approximately 30' of pavement improvements on Woodland Avenue for proper lane
configuration have been transferred from the Arney Road/Woodland Avenue portion of
the project. The construction cost of storm drain improvement transfer has been
$7,610 and the street portion of the cost has been $5,999. 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 comparison purposes.
SECTION 5: BOUNDARY AND SIZE OF THE REIMBURSEMENT DISTRICT
Craig Development Realty, Waremart Inc., and Offspring Holdings-Hershberger were
conditioned in their land use approvals that they contribute to the costs of the
Woodland A venue traffic signal improvement when traffic increased to a level that a
signal was warranted.
In accordance with Ordinance 2237 the reimbursement district provides a mechanism
whereby both previously conditioned properties and future development 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. Miles Chevrolet, which was
proposed to be included as a reimbursement district property in the developer's
application, was not previously conditioned and is, therefore, not eligible for inclusion in
the reimbursement district by the ordinance. It appears that Miles Chevrolet was not
conditioned to share the cost of this traffic signal because of the requirement to
dedicate right of way so that connection of Arney Road and Woodland Avenue could
take place and the requirement to construct a portion of the connecting roadway.
There are certain other undeveloped properties, which are development in the future, in
the vicinity of the new traffic signal that will benefit from the improvement. They
include one parcel owned by Dale W. Baker, one parcel owned by Craig Development
Realty and two parcels owned by Moore Clear Company.
Page 3 of 5 - Public Works Director's Report
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EXHIBIT ---L1-
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For cost distribution purposes, the following properties are recommended to be part of
the proposed reimbursement district for the traffic signal improvements at the
intersection of Woodland Avenue and Highway 219:
1. Dale W. Baker
2. Waremart, Inc.
3. Craig Realty Group (two parcels)
4. Moore Clear Company (two parcels)
5. Offspring Holdings-Hershberger
These properties are further defined in Attachment "B".
SECTION 6: METHODOLOGY FOR REIMBURSEMENT FEE ALLOCATION TO
REIMBURSEMENT DISTRICT
The reimbursement district for the traffic signal includes both commercially and
industrially zoned land. In a situation where land uses of the reimbursement district
properties were common, land area would be a logical method to determine the
proportion of benefits. Commercially zoned property, however, has different traffic
impacts on the transportation system than industrially zoned property. The area
method by itself, therefore, would not fairly proportion costs in this situation.
A method that utilizes the area of the properties in conjunction with the traffic
generation created by each property was selected as the method to fairly proportion the
impacts of the reimbursement district properties for the traffic signal costs. The traffic
generation portion of the distribution method will be apportioned on the basis of the
number of average daily trips generated for the development. It has been determined
that, to avoid an unreasonable subsidy to any property, a reasonable split will be to
factor the area of properties at seventy-five percent (75%) and traffic generation at
twenty-five percent (25 %).
The traffic generation impacts of the developed properties will be based on the traffic
generation that was used as the basis for the computation of traffic impact fees.
Traffic generation for an additional 70,000 square feet of warehouse space planned in
the future was included in the Waremart traffic generation.
The potential traffic generation of the undeveloped parcels must also then be
considered from the potential for traffic generation associated with traffic impact fees.
The undeveloped Craig Realty property is intended to be developed as follow on phases
of the factory outlet center and potential use would be evaluated for that use. Craig
Realty, in their proposal for phase two and three of the factory outlet center, indicated
that an additional 162,000 square feet of store area would be built on the undeveloped
Page 4 of 5 - Public Works Director's Report
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EXHIBIT -' .A
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portion of their property. The other undeveloped properties have no planned use at this
time, therefore, these parcels would be considered at a best reasonable commercial use
that may be anticipated for that particular parcel. The following are those best
reasonable uses for those properties:
Property
Dale W. Baker
Moore Clear Parcel 1
Moore Clear Parcel 2
Best Reasonable Use
2,500 Square Foot Fast Food
2,500 Square Foot Fast Food
9,000 Square Foot Sit Down Restaurant
The traffic generation for the planned use of the Craig Realty property and the best
reasonable use for the three properties listed above will also be determined on the basis
of trip generation that would be the basis for traffic impact fee computation for each of
the uses described above.
Attachment "C" includes the distribution of costs to the reimbursement district
properties based on the area and trips-generated-per-vehicle.
SECTION 7: ADMINISTRATIVE FEE AND INTEREST RATE TO BE APPLIED TO
REIMBURSEMENT DISTRICT
A. is recommended that the administration fee as outlined in Section 3 of Ordinance
2237 be one percent (1 %) of the project cost.
B. It is recommended that the interest rate to be applied to the unpaid reimbursement
fee be fixed at eight and one-fourth percent (8.25%), the prime interest rate on
September 1, 1999. It is proposed that the 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\ TRAFFICSIG NAL, PWDirecRpt
Page 5 of 5 - Public Works Director's Report
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ATTACHMENT "A"
EXHIBit ...A
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TRAFFIC SIGNAL AT HIGHWAY 219/WOODLAND AVENUE
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Looking South on Woodland Avenue at Traffic Signal at Highway 219 Intersection
DESCRIPTION:
Installation of a new traffic signal with single pole mast arms
and pedestrian boxes at each of the four corners. Traffic
detector loops extend approximately 65' from the signal on
Woodland Avenue and approximately 230' from the signal on
Highway 219. The intersection was modified to allow two left
turn lanes on southbound Woodland Avenue. The southeast
corner of the intersection was widened to allow safe truck
turning movements from Woodland Avenue. ADA sidewalk
ramps and bike lanes were also included.
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ATTACHMENT "8"
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exHIBIT A
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PROPOSED REIMBURSEMENT
DISTRICT PROPERTIES
In Accordance with Ordinance 2337
STATE HIGHWAY 219
AND
WOODLAND AVENUE SIGNAL
Marion County
Map Number Tax Lot(s) Property Owner Mailing Address
1. 052W11 100 Waremart, Inc. c/o Burke & Nickel
3336 E. 3200 St
Suite 317
Tulsa, OK 74135
2. 052W12B 1101 Dale W. Baker 2874 Newberg Hwy
Woodburn, OR 97071
3. 052W12B 600 Moore Clear Co. Warcef 1) 535 Third St.
Lake Oswego, OR 97034
4. 052W12B 601 Moore Clear Co. (Parcel 2) 535 Third St.
Lake Oswego, OR 97034
5. 052W12B 701 Offsprings Holdings,LLC PO Box 586
Woodburn, OR 97071
6. 052W12B 200 Craig Realty Group - 1500 Quail St.
301 Woodburn, LLC (Parcel 1) Suite 100
702 Newport Beach, CA 92660
800 Attn: Steven L. Craig
7. 052W12B 101 Craig Realty Group 1500 Quail St.
Woodburn, LLC (Parcel 2) Suite 100
Newport Beach, CA 92660
Attn: Steven L. Craig
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AlTACHMENT "C"
SHARE OF IMPROVEMENT COST FOR THE
PROPERTIES LOCATED IN THE TRAFAC SIGNAl
CJ) <0 REIMBURSEMENT DISTRICT
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EXHIBIT, 8
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REIMBURSEMENT AGREEMENT
TRAFFIC SIGNAL IMPROVEMENT AT STATE HIGHWAY 219
AND WOODLAND AVENUE
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 construction of a traffic signal public improvement located at State
Highway 219 and Woodland Avenue by passage of Resolution No. 1553; 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. 1553 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. 1553, the City created a reimbursement district for construction of a traffic
signal public improvement located at State Highway 219 and Woodland Avenue.
Resolution No. 1553 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" N', 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. 1553, the parties
agree that the total amount of potential reimbursement to the Developer is $108,458.64.
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 "A".
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
Page 1 - Reimbursement Agreement - Traffic Signal
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for the public improvement is set out in Attachment "):'.
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 10(1) 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
$1,762.00 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
Page 2 - Reimbursement Agreement - Traffic Signal
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discussions or agreements.
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 - Traffic Signal
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