The purpose of this Chapter is to establish procedures for the creation of two types of Economic Improvement Districts, one in which the assessment is mandatory and applied to all properties except Exempt Properties, the second type in which the property owner can decide whether to be assessed, a voluntary assessment, as authorized by state law. The City will be ultimately responsible for administering and operating any Economic Improvement District, although the administration and operation may be carried out by others under contract with the City. All costs of administering and operating any Economic Improvement District will be paid entirely from assessments and fees actually received from the District; the City will not pledge its credit on behalf of the District; and the City will not loan funds to the District.

1. The following words and phrases when used in this Chapter will have the following meanings, except where the context requires a different meaning:
2. A.Advisory committee means a committee of persons representative of the owners and tenants of property within an Economic Improvement District and may consist of an existing association of property owners or tenants or both.
3. B.Economic improvement means:
   1. 1. The planning or management of development or improvement activities.
   2. 2. Landscaping, maintenance and provision of security for public areas.
   3. 3. The promotion of commercial activity or public events.
   4. 4. The conduct of activities in support of business recruitment and development.
   5. 5. The provision of improvements in parking systems or parking enforcement.
   6. 6. Any other economic improvement activity that specially benefits property. Economic improvement does not include any services to be provided on private property.
4. C.Preliminary Economic Improvement Plan means a plan prepared by the property owners or tenants within the proposed District or their designees setting out:
   1. 1. A description of economic improvements proposed to be carried out;
   2. 2. The number of years, to a maximum of three, in which assessments are proposed to be levied;
   3. 3. A preliminary estimate of annual cost of the proposed economic improvements;
   4. 4. The proposed boundaries designated by map or perimeter description of an Economic Improvement District within which subject properties would be assessed to finance the cost of the economic improvements;
   5. 5. The proposed formula for assessing the cost of the economic improvements against subject properties;
   6. 6. A preliminary estimate of the cost of City administration of the proposed Economic Improvement District;
   7. 7. A statement whether the assessment will be a voluntary assessment or mandatory assessment, and
      1. a. If voluntary, that the scope and level of improvements could be reduced depending upon the amount of money collected; or,
      2. b. If mandatory, that the assessment will be considered a tax under the Oregon Constitution, Art. XI § 11b, and it may be reduced to fit within the property tax limitation, thus affecting the scope and level of services described; and
   8. 8. A statement of why the proposed economic improvements are not likely to be satisfactorily and equitably accomplished except through establishment of an Economic Improvement District.
5. D.Final Economic Improvement Plan means a plan setting out:
   1. 1. A description of economic improvements to be carried out;
   2. 2. The number of years, to a maximum of three, in which assessments will be levied;
   3. 3. The annual cost of the proposed economic improvements;
   4. 4. The boundaries designated by map or perimeter description of the Economic Improvement District within which subject properties will be assessed to finance the costs of the Economic Improvement District;
   5. 5. The formula for assessing the cost of the economic improvements against subject properties;
   6. 6. A statement whether the assessment will be a voluntary assessment or mandatory assessment, and
      1. a. If voluntary, that the scope and level of improvements could be reduced depending upon the amount of money collected; or,
      2. b. If mandatory, that the assessment will be considered a tax under the Oregon Constitution, Art. XI § 11b, and it may be reduced to fit within the property tax limitation, thus affecting the scope and level of services described; and
   7. 7. The cost of City administration of the Economic Improvement District.
6. E.Lead bureau means the City office, bureau or commission determined by the City Administrator to have the principal interest in a proposed Economic Improvement District.
7. F.Lot means a lot, block, or parcel or land.
8. G.Owner means the owner of the title to real property or the contract purchaser of record as shown on the last available complete assessment roll in the Office of the County Assessor.
9. H.Subject properties means the real property within an Economic Improvement District except for exempt property.
10. I.Exempt property means:
    1. 1. Residential real property and any portion of a structure used for residential purposes. In the event a structure is used for both residential and nonresidential purposes, the land on which the structure is located will not be exempt property. For purposes of this Subsection, “residential real property” and “residential purposes” will not include hotels and hotel uses, as defined in Section 33.12.420 of this Code, and motels and motel uses, as defined in Section 33.12.560 of this Code, but will include hotel and hotel uses if, for the entire hotel or entire hotel use:
       1. a. The average rent per unit is less than $2 per day, or
       2. b. A majority of the units regularly are occupied by the same tenants for more than 30 consecutive days, or
       3. c. A majority of the units regularly are occupied by occupants who pay for lodging on a monthly basis.
    2. 2. Property owned or being purchased by religious organizations including:
       1. a. All houses of public worship; and other additional buildings and property used solely for administration, education, literary, benevolent, charitable, entertainment, and recreational purposes by religious organizations, the lots on which they are situated, and their pews, slips, and furniture. However, any part of any house of public worship or other additional buildings or property which is kept or used as a store or shop or for any purpose other than those stated in this Section will not be exempt property.
       2. b. Parking lots used for parking or any other use as long as that parking or other use is permitted without charge.
       3. c. Land and the buildings thereon held or used solely for cemetery or crematory purposes, including any buildings solely used to store machinery or equipment used exclusively for maintenance of such lands.
11. J.Task force means a committee whose membership consists of representatives of those City offices, bureaus, and commissions that have a significant interest in a proposed Economic Improvement District and a representative appointed by the Advisory Committee. A representative designated by the City Administrator will be a member of each task force.

Whenever the Council determines that economic improvements would be appropriate and would afford a special benefit to subject properties within a particular District, the Council, subject to the provisions of this Chapter, may establish an Economic Improvement District and provide for payment of all or a portion of the cost by collection of assessments on either a mandatory or voluntary basis. The Council may decline for any reason within its sole discretion to establish a proposed Economic Improvement District. This Chapter does not give to any person the right to have an Economic Improvement District established.

Statutory provisions applicable to Economic Improvement Districts must be followed by the City and by owners in all cases. The provisions of this Chapter are intended to supplement and to implement the statutory provisions.

1. A. The Council will consider creation of an Economic Improvement District whenever owners of subject properties file with the Revenue Division a petition for the establishment of a District containing the signatures of the owners of 33 percent or more of the area or of the assessed value of subject properties within the proposed District or whenever the Mayor files a report recommending the establishment of a District. A petition or report must contain a Preliminary Economic Improvement Plan. For the purposes of this Chapter, Revenue Division means the revenue service and program of the City Administrator under Chapter 3.06.
2. B. The Council may adopt a resolution directing the lead bureau to begin the Economic Improvement District formation process if the Council finds that:
   1. 1. The costs of administering the proposed Economic Improvement District would not be substantial in relationship to the cost of the economic improvements;
   2. 2. It is not likely that the economic improvements would be satisfactorily and equitably accomplished except through establishment of the Economic Improvement District;
   3. 3. Establishment of the Economic Improvement District would be in the public interest;
   4. 4. In the case of a District intended to impose a mandatory assessment, that the assessment can be accommodated within the property tax limitation and City budget; and
   5. 5. The economic improvements would afford a special and peculiar benefit to subject properties within the Economic Improvement District different in kind or degree from that afforded to the general public.
3. C. The resolution may contain such revisions to the preliminary economic improvement plan as the Council deems appropriate based on the criteria set out in Subsections 1. through 5. of this Subsection B. and will designate those City offices, bureaus, and commissions to be represented on the task force for the proposed District.
4. D. Upon adoption by the Council of a resolution under Subsection B. of this Section, the Mayor will designate a lead bureau for the proposed Economic Improvement District from among those designated to be represented on the task force and will refer the matter to the City Administrator.
5. E. Immediately following the referral under Subsection D. of this Section, the Mayor will appoint an advisory committee to assist the task force in development of the final economic improvement plan. The Mayor will strongly consider appointment of owners of property within the Economic Improvement District to the advisory committee. The Mayor may appoint as the advisory committee an existing association of property owners or tenants or both. The task force will encourage participation of the advisory committee in the plan development and administration process. The advisory committee will appoint a representative to the task force.

1. A. Immediately following Council adoption of a resolution under Subsection 3.122.050 B., the head of each office, bureau and commission to be represented on the task force will appoint its representative and notify the head of the lead bureau of the appointment.
2. B. The City Administrator’s representative will provide to the task force a report setting out:
   1. 1. Whether the petitioners under Subsection 3.122.050 A. are owners of subject property in the proposed District;
   2. 2. Delinquencies in taxes or City liens on subject properties in the proposed District;
   3. 3. The true cash value of all real property located within the proposed District; and
   4. 4. The zoning of land within the District, including verification that only land zoned for commercial or industrial use is included within the District.
3. C. The lead bureau will be responsible for preparing the documents referred to in Subsection D.
4. D. The task force will prepare for the City Administrator a report recommending whether the owners of property within the proposed Economic Improvement District will be formally notified of the proposal to establish the District, taking into consideration the criteria set out in Subsection 3.122.050 B. If the report recommends formal notification, the report will include a proposed Final Economic Improvement Plan and the report of the City Administrator’s representative provided under Subsection B. The report also will include a proposed ordinance that:
   1. 1. States the Council’s intention to proceed with formal notification regarding the proposed Economic Improvement District;
   2. 2. States whether the assessments will be mandatory or voluntary;
   3. 3. Contains the information in the Final Economic Improvement Plan, which may be included by attachment of the Plan as an exhibit; and
   4. 4. Directs notice to be given in the manner provided by Section 3.122.080.

1. A. If the City Administrator deems it appropriate, the City Administrator may request that the Mayor, in their sole discretion, file for Council consideration the report and ordinance prepared under Subsection 3.122.060 D.
2. B. On consideration of the report and ordinance, the Council may approve, modify, or reject the report including any aspect of the Final Economic Improvement Plan, and the ordinance. If the Council determines that the proceedings for the proposed Economic Improvement District should go forward, the Council will adopt the ordinance including any modifications.

1. A. Following adoption of the ordinance under Subsection 3.122.070 B., the Revenue Division will mail notice to the property owners within the proposed Economic Improvement District which contains the following information:
   1. 1. The Council’s intent to form an Economic Improvement District.
   2. 2. Benefitted properties will be assessed unless it is a voluntary assessment in which case only property owners who specifically request to be assessed will be assessed. An owner who fails to submit a written objection before or at the public hearing on assessment will be deemed to have made a specific request to be assessed.
   3. 3. The formula for determining the amount of the assessment.
   4. 4. The scope of the improvements and that the description of the boundaries of the proposed District and the full scope of the project are on file with the Revenue Division and where the file can be viewed. It should state that:
      1. a. In the case of a voluntary assessment the scope and level of the improvements may be reduced depending on the amount of money collected; or
      2. b. In the case of a mandatory assessment the scope and level of the improvements may be reduced if the amount of the assessment is compressed to fit within the property tax limitation imposed by the Oregon Constitution, Art. XI § 11b.
   5. 5. The estimated cost of the proposal, and that it may be reduced to the amount of money actually received.
   6. 6. The date, time and place of the hearing and that the proposal could be modified as a result of public testimony.
   7. 7. The classification or types of properties which are exempt and that a request for an exemption on an enclosed form must be filed not later than 21 days after the notice is mailed.
   8. 8. In the case of a voluntary assessment that it is an incurred charge and is not a tax and is a charge outside the property tax limitations in the Oregon Constitution, Art. XI, §11b.

1. A. Property within the proposed District is conclusively presumed subject to assessment unless the owner files with the Revenue Division a claim for exemption not later than 21 days after the date of mailing or personal delivery of the notice.
2. B. The Revenue Division, in its discretion, may examine a claim or claims for exemption to determine whether property claimed to be exempt from assessment is exempt property. The examination may include review of such evidence as the Revenue Division deems appropriate and may include a viewing of the property. In the event the Revenue Division determines that the property for which an exemption is claimed is not exempt, the Revenue Division will give the owner written notice of the determination and the reasons, by mail or personal delivery. The notice must give the owner 10 days’ time within which to provide written evidence as to why the property is exempt. In the event the owner provides no written evidence within the time allowed, the property conclusively will be presumed not to be exempt property. In the event the owner submits written evidence, the Revenue Division will review the evidence and either approve or disapprove the claim for exemption and provide written notice to the owner, including a statement of the reasons for the Revenue Division’s decision. The Revenue Division’s approval or disapproval following review of the evidence will be final. 

1. A. The Council will hold a public hearing on the proposed Economic Improvement District at the time and place stated in the notice to owners of properties. The public hearing will be held no sooner than 30 days after mailing the notice The Council may continue the hearing to such other time and place as it may deem appropriate. At the hearing, persons supporting or objecting to the proposed improvement and assessment will be entitled to be heard.
2. B. If the Council, at the conclusion of the hearing, finds that the economic improvements will afford a special and peculiar benefit to subject properties within the Economic Improvement District different in kind or degree from that afforded to the general public and that the Economic Improvement District should be established, then the Council may adopt a resolution stating those findings and establishing the District.

1. A. Following Council adoption of a resolution establishing an Economic Improvement District based on the final Economic Improvement Plan, the Revenue Division will prepare the proposed assessment for each lot in the District that is a subject property and will file a proposed assessment ordinance, with a list of proposed assessments attached, with the City Council. The amount of assessment will be based on the cost of the economic improvements and the cost of City administration of the Economic Improvement District.
2. B. Following preparation of the proposed assessments, the Revenue Division will mail to the owner of each lot to be assessed a notice containing the following information:
   1. 1. The description of the property being assessed.
   2. 2. The name of the District and whether it is a voluntary or mandatory assessment. In the case of a voluntary assessment a statement that the property will be assessed unless the property owner specifically requests in writing not to be assessed.
   3. 3. The length of the District and the total cost of the project, the assessment formula, and the amount of the assessment on the property.
   4. 4. The assessment will not change unless the Council finds it exceeds the benefit of the improvements, but the total amount and scope of the improvements and level of services could change to correspond to the amount of money collected. Further, the scope of the improvements and level of services could change as a result of the testimony.
   5. 5. The time, date and place of the hearing and that the following forms of objection may be filed:
      1. a. A written objection to being assessed in which case no assessment will be placed on the property if it is a voluntary assessment. An owner who fails to submit a written objection before or at the public hearing will be deemed to have made a specific request for the economic improvement service to be provided during the time specified in the assessment ordinance;
      2. b. An objection to the amount of the assessment on the grounds it is incorrect or exceeds the amount of benefit; and
      3. c. An objection to the formation of the District.
   6. 6. A written objection may be filed with the Revenue Division prior to the hearing or made orally at the hearing. An objection to the assessment must explain the reasons the assessment is incorrect or exceeds the amount of benefit.
   7. 7. The assessment is due and payable immediately, and whether it may be paid in installments. The amount of interest if any and the fact there will be billing charges. The unpaid balance will become a lien on the property and failure to pay could result in foreclosure.
   8. 8. A voluntary assessment is an incurred charge and is a charge outside the property tax limitation imposed by the Oregon Constitution, Art. XI, §11b.
   9. 9. Property included in the District and assessed cannot be withdrawn from the District and the assessment will continue through the life of the District.
   10. 10. The name and phone number of a City staff person who can answer questions.

1. A. The Council will hold a public hearing on the proposed assessment ordinance. The public hearing will be held no sooner than 30 days after mailing the notice. The Council may continue the hearing to a date and time certain. At the hearing, property owners supporting or objecting to being assessed, to the amount of the assessment or to the formation of the District, will be entitled to be heard.
2. B. Written objections will be considered to have been received by the Council at the hearing if actually received at the hearing or if received by the Revenue Division prior to commencement of the hearing. A written objection signed by a person purporting to have authority as agent or attorney to sign an objection on behalf of an owner will be considered received from the owner only if there is included with the objection a copy in writing of the authority to act on behalf of the owner.
3. C. If the Council at the hearing receives written objections to the formation of the District from owners of property upon which more than 33 percent of the total value of assessments are levied, then the Economic Improvement District will not be established and assessments will not be made.
4. D. At the hearing, the Council will consider any objections and may adopt, correct, modify, revise the proposed assessment ordinance. In the case of a voluntary assessment, the Council must exclude from assessment property which the owner has requested be omitted from assessment. The request will be made in writing and submitted prior to the close of the hearing. 

1. A. At the hearing under Section 3.122.100, the Council may amend by ordinance the initial ordinance adopted under Section 3.122.070. The procedures required by Sections 3.122.080 and 3.122.100 will be repeated if the amendment:
   1. 1. Changes the economic improvements to be carried out except this provision will not apply to a voluntary assessment;
   2. 2. Increases the likely assessment upon one or more properties; or
   3. 3. Enlarges the Economic Improvement District;
2. B. At the hearing under Section 3.122.120, the Council may amend by ordinance the initial ordinance adopted under Section 3.122.070 as subsequently amended. If the amendment increases the likely assessment upon one or more properties, then the procedures required by Sections 3.122.110 and 3.122.120 must be repeated. The procedures required by Section 3.122.080 through 3.122.120 must be repeated if the amendment:
   1. 1. Changes the economic improvements to be carried out except this provision will not apply to a voluntary assessment; or
   2. 2. Enlarges the Economic Improvement District.

1. A. The Council will not levy assessments in an Economic Improvement District in any year that exceed one percent of the true cash value of all the real property located within the District.
2. B. Any new owner of benefitted property or any owner of benefitted property who excluded the property from assessment by submitting written objections may subsequently agree to the assessment of the property. The Council will apply the assessment formula to the property and apportion the costs to the property for the remaining time in which the assessment is levied.
3. C. The assessed property may not be relieved from liability for that assessment for any reason including change of ownership.

The Council will not include within an Economic Improvement District any area of the City that is not zoned for commercial or industrial use.

If the Council has established an Economic Improvement District and thereafter determines that it is necessary to levy assessments upon subject property in the District for longer than the period of time specified in the assessment ordinance that created the District, the Council will enact an ordinance that provides for continued assessments for a specified number of years, to a maximum of three. The assessment of lots under such an ordinance will be subject to the procedures required by Sections 3.122.110 and 3.122.120.

Money derived from assessments levied under this Chapter and from interest earned on that money must be spent only for the economic improvements and for the cost of City administration of the Economic Improvement District described in the final Economic Improvement Plan. Subject to the requirements of any labor agreements to which the City is a party and to any applicable requirements of state law, the Council in its discretion may authorize an agreement or agreements with the advisory committee appointed under Subsection 3.122.050 D. for the committee to provide all or part of the economic improvements described in the final economic improvement plan.

The cost of City administration of an Economic Improvement District must include the actual cost of administrative services provided by the City related to the District.

Money spent for carrying out a final Economic Improvement Plan must be limited to money actually received from assessments or from other public or private contributions to assist in carrying out the Plan.

The task force for an Economic Improvement District will be responsible for administration of the economic improvements to be carried out. With the concurrence of the head of the lead bureau, the task force may designate an employee of the lead bureau as the person responsible for day-to-day administration of the economic improvements. In the event the task force determines that the economic improvements should be performed by a contractor or contractors, the task force will prepare for Council consideration contracts for the work. In each case, the contract for work must include not less than the following:

1. A. A description of the work to be done;
2. B. A description of the method of compensation for the work;
3. C. A description of records to be kept by the contractor to evidence performance of the work and of the documentation to be provided to the City to justify payment for work;
4. D. A description of any liability to be born and insurance to be provided by the contractor; and
5. E. A description of the rights of the City to terminate the contract prior to its completion.

The Council may terminate the activities of an Economic Improvement District in whole or in part prior to the normally scheduled termination date for the District by an ordinance. However, all applicable contract issues must be resolved before activities are terminated. In the event of early termination, those funds remaining from assessments for the District, following payment of all obligations and costs of administration incurred on behalf of the District, must be returned to the owners of subject properties in amounts proportionate to the amounts of the assessments they paid for the District. In the event of early termination of only a part of the activities of an Economic Improvement District, the City Council, in the termination ordinance, may elect to apply remaining funds on a similarly proportionate basis as a credit against future District assessments against subject properties, with any funds remaining being returned to the owners as otherwise provided in this Chapter.

In the event, following the normally scheduled termination of an Economic Improvement District, including the payment of all obligations and costs of administration incurred on behalf of the District, there remain excess funds from assessments paid by owners of subject properties, then the Council, by ordinance, must provide for either:

1. A. The return of the excess funds to the owners of subject properties in amounts proportionate to the amounts of the assessments they paid for the District;
2. B. Use of the excess funds for continued provision of the economic improvements until the excess funds are fully spent; or
3. C. Use of part of the excess funds as provided in Subsection B. and return of the balance of the excess funds as provided in Subsection A.

1. A. On adoption of an assessment ordinance under Subsection 3.122.120 D., the Revenue Division will enter each assessment in the docket of City liens. All such assessments will be collected in the same manner as local improvement assessments and failure to pay may result in foreclosure in the same manner as provided for other assessments.
2. B. The assessments may be paid in semi-annual payments, however the City may charge a billing fee.