ORDINANCE No. 177198

* Amend Code for Transportation System Development Charges. (Ordinance; amend Code Chapter 17.15)

The City of Portland ordains:

Section 1. The Council finds:

1.  Ordinance 171301, passed June 18, 1997, established a Transportation System Development Charge (SDC) on new development, adopted the Transportation System Development Charges Rate Study, dated June 11, 1997 and enacted City Code Chapter 17.15.

2.  Chapter 17.15 provides the waiver of SDC charges for a change in use of an existing building where the gross enclosed floor area does not exceed 3,000 square feet.

3.  This waiver was intended to encourage the adaptive reuse of small buildings and provide opportunities for small businesses to locate or relocate without incurring a Transportation SDC.

4.  Chapter 17.15 also provides an incentive for non-vehicular oriented development that encourages the use of transit and non-motorized forms of transportation through a transit oriented development discount.

5.  It has become apparent that there are situations where the existing waivers and discounts do not adequately address the intention of the City to encourage the adaptive reuse of existing buildings and compact development which encourages the use of transit and non-motorized forms of transportation.

6.  Amendments to both the exemption and discount provisions of the Transportation SDC would support Council priorities to encourage neighborhood business development, reuse of existing buildings and promote the use of transit and non-motorized forms of transportation.

NOW, THEREFORE, the Council directs:

a.  Sections 17.15.050 Partial and Full Exemptions. D and E are amended as follows:

 D.  Transit Oriented Development (TOD) shall be exempt from the SDC in the following way:

 1.  Within the Central City Plan District, New Development that qualifies as TOD meets Transit Oriented Development definition GG.1, GG.2.a. or GG.2.b. shall be liable for only 10% of the vehicle portion of the SDC and 90% of the transit and non-motorized portion of the SDC.

2.  For all areas outside of the Central City Plan District, New Development that qualifies as TOD meets Transit Oriented Development definition GG.3.a., GG.3.b., or GG.3.c. shall be liable for only 50% of the vehicle portion of the SDC and 90% of the transit and non-motorized portion of the SDC.

3.  For all areas outside of the Central City Plan District, New Development that meets the density requirements in Transit Oriented Development definition GG.2.a, or GG.2.b. shall be liable for only 10% of the vehicle portion of the SDC and 90% of the transit and non-motorized portion of the SDC.

 E.  A change in occupancy of an existing building where the gross enclosed floor area does not exceed 3,000 square feet is fully exempt. A change in occupancy of an existing building where the gross enclosed floor area is between 3,000 square feet and 5,000 square feet shall be assessed on a graded scale. The percentage of the rate to be assessed on the entire existing building shall be calculated by the following equation:

(size of existing building – 3,000 square feet) / 2,000 square feet

 Examples of Graded Scale Assessment Calculations

 (4,000 – 3,000) / 2,000 = 0.50  Existing 4,000 sf building assessed at 50% of the rate

 (3,200 – 3,000) / 2,000 = 0.10  Existing 3,200 sf building assessed at 10% of the rate

 (4,900 – 3,000) / 2,000 = 0.95  Existing 4,900 sf building assessed at 95% of the rate

Section 2. Any person or entity that paid a Transportation SDC after December 31, 2000, and

believes that their development would have met the criteria set forth in Chapter 17.15 as amended above, may apply for a reimbursement. For purposes of this Section, the term “paid” shall include the payment of a Transportation SDC assessment with cash, check, credit card, SDC credit certificate, or entering into a deferral agreement or installment contract. Reimbursement shall only be that portion of the SDC which would not have applied had this provision been in effect at the time of original application. Determination as to who may make application and be eligible to receive a reimbursement shall be done in the following manner:

(1)  If the Transportation SDC assessment for which reimbursement is requested is under a deferral agreement or installment contract with the City of Portland, the request must be from the property owner and the reimbursement will be granted only to the property owner.

(2)  If the Transportation SDC assessment was paid in full at the time of building permit issuance, the person or entity who paid the assessment shall be the party eligible for the reimbursement. If the property has been sold since the SDC assessment was paid in full, then the present owner of the property shall be the party eligible to apply for and receive any approved reimbursement.

(3)  Approved reimbursement shall only be issued in the form by which the assessment was originally paid. Payments in the form of credit certificate shall be reimbursed in credit certificates, cash or other payments shall be reimbursed by check and reimbursements due to installment contract holders shall be by adjustment to the installment contract. The provisions of Chapter 17.15.060 paragraphs A.6.,7., and 8. regarding SDC credits shall apply.

(4)  For reimbursements made on deferral agreements and installment contracts, the Auditor is authorized upon notification from the SDC administrator to cancel the contract or to adjust the amount of the contract to reduce the balance by the amount of new credits applied against the SDC. Interest paid on the installment contract shall not be reimbursed and any accrued interest shall be paid prior to cancellation or adjustment of the contract. For the purposes of computing interest accrual, the date of a complete application for reimbursement shall be considered the last day interest was due if the application is approved.

(5)  The application for an SDC credit under this provision shall be submitted on the form provided by the Transportation System Development Charge Administrator. The System Development Charge Administrator may require such proof as he or she finds necessary to establish eligibility for the SDC credit.

(6)  Application for reimbursement credits shall be made within one year of the effective date of this ordinance.

(7)  The System Development Charge Administrator shall notify by mail all applicable property owners and make reimbursement forms available within 60 days of passage of this ordinance. The System Development Charge Administrator shall make a determination on any reimbursement request within 45 days of receiving a complete application, and notify the applicant in writing of his or her determination.

(8)  There shall be no interest due any person or entity on any amount of the SDC assessment eligible for reimbursement.

(9)  The City of Portland shall not be responsible for nor have any responsibility to honor or enforce agreements made by private parties regarding the payment or collection of SDC assessments.

Section 3.  The Council declares an emergency exists because these amendments bring clarity to

the SDC program; therefore, this Ordinance shall be in full force and effect from and after its

passage by the Council.

Passed by the Council, JAN 15 2003

         GARY BLACKMER

Commissioner Jim Francesconi  AUDITOR OF THE CITY OF PORTLAND

J. Reyman:slg        By /S/ Susan Parsons

December 30, 2002

[SDC\ORDINANC\ORD 3000SF to 5000SF & CC TODD.doc]

         DEPUTY

BACKING SHEET INFORMATION

AGENDA NO. 27-2003

ORDINANCE/RESOLUTION/COUNCIL DOCUMENT NO. 177198