Amend Lloyd Business District Fee Code to correct inadvertent change (amend Code Sections 6.06.260 and 6.06.270)
The City of Portland ordains.
Section 1. The Council finds:
- Portland City Code Sections 6.06.260 Lloyd Business District Fee Rates for Engaging in Property Management Activity and 6.06.270 Revisions to License Fee Year Schedule were amended when City Council passed Ordinance 191561 effective January 19, 2024.
- Ordinance 191960, that was intended to adjust the Code Sections of the Downtown Portland Clean and Safe Enhanced Services District only, repealed and replaced City Code Chapter 6.06 with Exhibit A that contained the entire Code Chapter 6.06 District Property Management License, effective January 1, 2025. This had the unintended consequence of changing rates for the Lloyd Districts. This Ordinance corrects the error.
- Code Chapter 6.06 provided with Ordinance 191960 contained the pre-January 19, 2024 Code Sections 6.06.260 and 6.06.270.
- Code Sections 6.06.260 and 06.06.270 were inadvertently overridden by Ordinance 191960 with Exhibit A that contained the entire Code Chapter 6.06 District Property Management License.
NOW, THEREFORE, the Council directs:
- Amend City Code Sections 6.06.260 and 6.06.270 as shown in Exhibit A, as previously approved by Ordinance 191561.
Official Record (Efiles)
An ordinance when passed by the Council shall be signed by the Auditor. It shall be carefully filed and preserved
in the custody of the Auditor (City Charter Chapter 2 Article 1 Section 2-122)
Passed by Council
Auditor of the City of Portland
Simone Rede
Impact Statement
Purpose of Proposed Legislation and Background Information
This ordinance will restore the previously approved Ordinance 191561 PCC 6.06.260 and PCC 6.06.270 Code Sections which were inadvertently overwritten by the unrelated Ordinance 191960 Code Section changes.
On 12/20/2023, City Council passed Ordinance 191561 changing the Lloyd Enhanced Services District (Lloyd ESD), fee rates and structure codes PCC 6.06.260 and PCC 6.06.270 effective 1/19/2024.
The fee structure was originally based on property tax assessment in 2010-2011. The Ordinance 191561 code change adjusted the structure to inflation rates over the past ten years, yielding a more robust projected operative revenue for the Lloyd ESD, which plans to add right-of-way cleaning to the bevy of work they currently provide their District. Also, the timing of payments due dates were adjusted to conform to standard practices in the other ESDs. These rate changes were requested by and approved by the Lloyd ESD board and city council.
On 11/23/2024, City Council passed Ordinance 191960 for changes to Clean & Safe effective 1/1/2025 and 10/1/2025. The exhibit submitted with Ordinance 191960 contained the entire 6.06 code, but in it contained the old (pre-1/19/2024) version of code sections PCC 6.06.260 and PCC 6.06.270. This exhibit inadvertently overrode the Ordinance 191561 Lloyd district code changes.
This new council item is to change the Lloyd District Code Sections PCC 6.06.260 and PCC 6.06.270 back to the previously council approved Ordinance 191561 Code Sections as shown in Exhibit A.
Financial and Budgetary Impacts
This ordinance will restore the previously approved Ordinance 191561 PCC 6.06.260 and PCC 6.06.270 Code Sections which were inadvertently overwritten by an unrelated Ordinance 191960. Ordinance 191561 was intended to increase the amount of license fee paid by the Lloyd district property owners. This increases the resources available to the Enhanced Services District (ESD) Board to spend on procuring additional services within the district. The City charges administrative fees to collect and distribute these fees. These fees total between 3% and 4% of the total revenue collected and cover the Revenue Division's costs to collect and distribute fees, a variable fee associated with the costs of the City's ITS system replacement, and a portion of the cost of the ESD Coordinator position. If this ordinance is not based, this will result in a decrease in the anticipated Lloyd ESD funds.
Economic and Real Estate Development Impacts
Not applicable.
Community Impacts and Community Involvement
Providing additional services for this District contributes to the attractiveness and vitality of the Lloyd ESD, enhancing the vibrancy for all who live, work, or visit the Lloyd District. Furthermore, these services increase the District's resiliency and aid in the attraction and retention of businesses, residents, and visitors from near and far. Home to the Moda Center and the Oregon Convention Center, a vibrant and attractive Lloyd District is imperative due to this District's ability to attract conferences, exhibitions, and sports fans from all over. A vital Lloyd District increases tourism and business revenue, which increases city tax revenue that supports the General Fund and other public services.
The Lloyd ESD conducted extensive outreach to district ratepayers to assess the value of their services and build support for district renewal, with gradual rate increases reflected in the previously council approved PCC amendments.
100% Renewable Goal
Not applicable.
Economic and Real Estate Development Analysis
Analysis provided by Prosper Portland
An Economic and Real Estate Development Impact Analysis was not submitted for this proposed action. Pursuant to City Council Resolution 37664, Prosper Portland staff has reviewed the action and agree that it does not require an Economic and Real Estate Development Impact Analysis.
Financial and Budget Analysis
Analysis provided by City Budget Office
This ordinance restores the previously approved Lloyd District property management license fee rates and payment schedule that were unintentionally overwritten by a later ordinance, thereby maintaining the district's projected revenue. if the ordinance is not passed, it will result in a decrease in the anticipated Lloyd ESD funds. To recap, In December 2023, Council adopted Ordinance 191561, which increased Lloyd District fees to reflect inflation and fund expanded services. A subsequent ordinance (191960) intended for the Downtown Clean & Safe District inadvertently replaced those sections with outdated rates.The City Budget Office's prior analysis for Ordinance 191561, which this action restores, noted the following adjustments: the rate on assessed value increased from $0.40 to $0.45 per $1,000; the rate on improvements rose from $2.25 to $3.50 per 290 square feet; and the land rate increased from $0.015 to $0.022 per square foot for the license year commencing February 1, 2024, with annual step-ups to $0.03 by FY 2028. A one-time 12.3% escalator applied in 2024 (2.3% ongoing plus 10% adjustment).
Document History
Document number: 2025-435
President's referral: Finance Committee