ORDINANCE NO. 2023
An Ordinance creating the State Street Local Improvement District and levying assessments upon all specially benefitted properties for the construction of street improvements, sidewalks and access
The City Council for the City of Hood River finds as follows:
WHEREAS, at the City Council’s regular March 28, 2016 meeting, the City Engineer presented his report on the now complete State Street Urban Renewal Project No. 410 pursuant to HRMC 13.16.020, described the project, the public benefits and the project’s special benefits that would accrue specifically to abutting properties in the form of sidewalks, improved access and related street improvements; and
WHEREAS, at its regular meeting on April 25, 2016, the City Council adopted Resolution 2016-16, pursuant to HRMC 13.16.030, by which the Council approved the City Engineer’s Final Report on the State Street Urban Renewal Project No. 410, dated July 27, 2015, and declared its intent to form the State Street Local Improvement District (“State Street LID”) pursuant to ORS 223.387 to 223.401 and HRMC chapter 13.16, and the Council scheduled a public hearing on the proposed local improvement district formation for May 23, 2016; and
WHEREAS, the City Engineer has calculated the actual final cost of the local improvements associated with the completed construction of the Urban Renewal Project No. 410 to be $5,877,797.67, and has identified those abutting properties that are specially and tangibly benefitted by the State Street project improvements (the “specially benefitted properties”); and
WHEREAS, consistent with state law and HRMC chapter 13.16, the City Engineer provided an allocation of the final total construction cost of the State Street project divided equitably over all of the specially benefitted properties based on each property’s liner street frontage. The total area of the State Street LID is 25.28 acres, consisting of 37 specially benefitted properties. The cost of the improvements and property-specific improvements allocated to each property where those improvements are located is set forth in the cost allocation in Exhibit A, attached hereto and by this reference incorporated herein; and
WHEREAS, at the Council’s March 28, 2016 regular meeting, the City Engineer presented the proposed assessments to the City Council for review and approval; and
WHEREAS, at the conclusion of the March 28th meeting, the City Council accepted the Engineer’s report and proposed assessments and, in accordance with HRMC 13.16.090, directed the City Engineer to notify by mail the owners of the specially benefited properties of the formation of the State Street LID and the cost allocated to each of the specially benefitted properties, and that a public hearing on the District’s formation would be held before City Council on May 23, 2016; and
WHEREAS, on April 25, 2016 the City Council adopted Resolution No. 2016-16, in which it expressly accepted and approved the City Engineer’s report (dated July 27, 2015) that had been presented on March 28, 2016 and directed the City Engineer to issue notice of the District’s formation and a May 23, 2016 public hearing to each owner of the specially benefitted properties; and
WHEREAS, the notice of the proposed formation of the State Street LID and the May 23, 2016 public hearing on the district formation was provided, as required by HRMC 13.16.090, along with individually mailed notice of the proposed assessment to the owner(s) of each specially benefitted property, and each owner was allowed the opportunity to file a written objection to the assessment on or before May 18, 2016 and to testify on the proposed formation of the State Street LID at the May 23rd public hearing; and
WHEREAS, the City Council convened a duly noticed public hearing at its May 23, 2016 regular meeting to consider written objections to the proposed assessments, to hear any additional verbal testimony and objections, and to determine the amount of the final assessment for each specially benefitted property in the proposed State Street LID; and
WHEREAS, at the May 23rd hearing, the City Council received three remonstrances to the District’s formation from three property owners in the proposed District, totaling 4.37 acres, which is less than two-thirds of the property in this proposed District needed to delay formation of the District under Section 35 of the Hood River Municipal Charter.
NOW, THEREFORE, based on the foregoing findings, the City Council for the City of Hood River Oregon ordains as follows:
Section 1 – State Street Local Improvement District formed. The Council hereby declares and creates the State Street Local Improvement District, consisting of the properties listed and illustrated in Exhibit A, attached hereto and by this reference made a part hereof.
Section 2 – Project Cost and allocation upon Specially Benefitted Properties. The City Council determines that each parcel of property described in Exhibit A is specially benefited to the extent of the assessment set forth therein. The actual total project cost for the State Street Local Improvement District Project, consisting of street, sidewalk and driveway improvements is $233,666.41, which is hereby assessed equitably upon all properties specially benefitted by these improvements according to the cost allocation set forth in Exhibit A.
Section 3 – Adoption of Engineering reports. The City Engineer’s reports attached in Exhibit B, incorporated herein by this reference, are accepted, approved and made a part of the Council's record in these proceedings in support of this Ordinance.
Section 4 – Notice of Final Assessments and payment. Within 10 days of adoption of this Ordinance, the City Engineer shall provide individual mailed notice of the final assessments to the owners of the all specially benefitted properties, which shall be assessed in accordance with HRMC 13.16.140. Assessments that remain unpaid after 20 days following the Engineer’s Notice shall become liens upon the respective lots, parts of lots or parcels of land against which the assessments are made. The Engineer’s Notice shall explain a property owner’s right to financing of the unpaid assessment, in accordance with HRMC 13.16.140 and Section 5 of this Ordinance.
Section 5 – Financing of assessments and recordation of liens for unpaid balances. Any property owner who wishes to finance all or a portion of the assessment imposed herein may finance that assessment as provided in this section, consistent with HRMC 13.16.150 to 13.16.190 and ORS 223.205 to 223.295. To obtain such financing, the property owner must apply in writing and execute a promissory note to the City for the unpaid balance of the assessment that will be financed. The City Recorder shall record in the docket of City Liens, and elsewhere as appropriate, a statement of the unpaid assessment for each specially benefitted property to include the following:
5.1 A description of each parcel of property specially benefited by the improvements constructed as part of the State Street Local Improvement District project;
5.2 The name of the record owner(s) of each specially benefitted property; and
5.3 The amount of unpaid assessment for each specially benefitted property as of the date the assessment is recorded in the City’s lien docket or elsewhere as appropriate, a statement of interest accrual, and the date from which the accrual of interest begins.
Section 6 – Financing terms. The unpaid amount of all assessments financed as provided herein shall be subject to the following terms and conditions:
6.1 Financing Period: All assessment amounts up to $10,000 and financed hereunder shall be paid in full no later than one year after entry of the assessment as a lien. All assessment amounts greater than $10,000 and financed hereunder shall be paid in full no later than two years after entry of the assessment as a lien.
6.2 Payments: Annual payments shall be due by June 30 of each year, with the first installment due on June 30, 2017.
6.3 Interest rate: Zero percent interest for the first two years following entry of the assessment as a lien. All outstanding unpaid assessments remaining after June 30, 2019 shall accrue simple interest at the rate of prime plus 2.5% per year until paid in full.
6.4 Late payment penalty: A late payment penalty of $100 shall be added each year for all assessments with an unpaid balance remaining after June 30, 2019.
Section 7 – Enforcement of assessment lien and foreclosure. Any assessment remaining unpaid two years after entry of the assessment as lien shall continue to accrue interest and the annual late payment penalty until paid in full, and may be foreclosed as provided in ORS 223.505 to 223.650. The proceeds from the payment or foreclosure of assessments levied pursuant to this ordinance shall be deposited to the city funds which advanced the cost of construction, engineering and related expenses for the State Street Urban Renewal Project 410, now the State Street LID, or which are used to retire any indebtedness incurred as construction costs for the improvements associated with the State Street Urban Renewal Project 410, now the State Street LID.
Read for the first time: _________________, 2016.
Read for the second time and passed: ____________________, 2016, to become effective 30 days after the second reading.
Paul Blackburn, Mayor
Jennifer Gray, City Recorder