RESOLUTION NO. SUBSTITUTE 36244

Initiate local improvement district proceedings and adopt Resolution of Intent regarding the Portland Mall Revitalization Local Improvement District to extend light rail services on the Fifth and Sixth Avenues in downtown Portland. (Resolution)

WHEREAS, the City Council approved Resolution No. 36188 adopting the Locally Preferred Alternative Report for the South Corridor Amended Supplemental Draft Environmental Impact Statement, which included light rail on the Portland Mall from Union Station to Portland State University, on December 4, 2003; and

WHEREAS, TriMet and the City cooperatively prepared a Conceptual Design Report-Final Supplemental (FCDR) for the Portland Mall Revitalization Project, which included, among others, the following elements:

a.  Refurbishment of the existing roadway, intersection, brick sidewalks, sidewalk furnishings and public infrastructure, such as street lights and traffic signals, between NW Irving Street and SW Jefferson Street to “like new conditions”,

b.  Installation of new brick and/or concrete sidewalks, ornamental street lights and street trees between SW Jefferson Street and Jackson Street (except at the PSU Urban Center),

c.  Construction of a continuous auto lane on Fifth and Sixth Avenues between Union Station and PSU as described in the FCDR,

d.  Construction of up to four (4) vehicle pullouts between SW Alder Street and W. Burnside as part of the project; provisions for future consideration of up to two (2) additional pullouts in the same area; and construction of up to three (3) additional pullouts at locations with special circumstances, all described in the FCDR

e.  Replacement of existing bus transit shelters with new “open’ design to be approved by the Portland City Council after public input; and

WHEREAS, the City Council approved Resolution No. 36216 adopting the FCDR and directed the Portland Office of Transportation (PDOT) to prepare a Financial Plan for the City of Portland’s contributions for the South Corridor Project, on May 19, 2004; and

WHEREAS, the Portland Office of Transportation is the responsible bureau for the Portland Mall Revitalization Project and recommends initiation of the local improvement district formation proceedings; and

WHEREAS, the Commissioner of Public Utilities recommends the initiation of the local improvement district formation proceedings; and

WHEREAS, the Portland Mall Project Management Group (consisting of PDOT, TriMet, Portland Development Commission, Metro, and the Bureau of Planning), recommended a formula for equitably assessing properties within the proposed LID boundaries in accordance with their respective special and peculiar benefits; the formula, boundaries, and other recommended features of the Portland Mall LID, which was included in a Petition for Creation of a Local Improvement District to Fund Capital Improvements Related to the Portland Mall Revitalization Project as shown in Exhibit A, attached to the original of this Resolution, and by reference made a part thereof; and

WHEREAS, the Portland Mall Revitalization Local Improvement District would assist in funding of improvements described in the FCDR; and

WHEREAS, TriMet, on behalf of PDOT, mailed letters to all property owners within the proposed LID boundary on July 1, 2004, (Exhibit B) describing the Project, and again on July 22, 2004, (Exhibit C) enclosing a LID petition for their consideration, providing a Fact Sheet describing the LID formation process, and inviting them to a public meeting on July 29, 2004; and

WHEREAS, a public open house was held on July 29, 2004, to explain the Portland Mall Local Improvement District; and

WHEREAS, testimony at the City Council session on August 4, 2004, and discussion by members of the Council resulted in a reconsideration of several elements of the Assessment Method in the Petition to be found in Exhibit A to this Resolution; and

WHEREAS, as of August 11, 2004, signed petitions have been received by owners of property representing over 52% of the total assessment amount (exclusive of Owner-Occupied Residential), showing strong support for the improvements; and

WHEREAS, Section 17.08.040 of the City Code provides for the institution of local improvement proceedings by the City Council if it determines that an improvement is necessary and should be considered.

NOW, THEREFORE, BE IT RESOLVED that the City Council declares the intent of the City to initiate local improvement district formation proceedings to construct, as part of the I-205 LRT/Mall Project, improvements on the Portland Mall from NW Irving Street, its northern terminus, to SW Jackson Street, its southern terminus; such improvements being necessary and should be constructed; and

BE IT FURTHER RESOLVED, that the local improvement district shall be known as the Portland Mall Revitalization Local Improvement District and for the purposes of the notification of the LID Formation Hearing as set forth in Section 17.08.070 of the City Code, the boundary shall be as shown in Exhibit A: and

BE IT FURTHER RESOLVED, that if constructed, the general character and scope of the improvement is to remove existing hard surfaces, grade streets to their proper grade, and construct roadways and intersections, improvements to accommodate multi-modal uses, utility relocation, sidewalk improvements, and sidewalk amenities-including street trees and public art; and

BE IT FURTHER RESOLVED, the local improvement district will fund improvements in the Mall Segment of the I-205/Mall LRT Project in the amount of $24,000,000; the remaining costs of improvements in the Mall Segment will be paid by a combination of TriMet, City, regional and federal funding sources; and

BE IT FURTHER RESOLVED, that the assessment methodology of the local improvement shall be on real market value assessment rate, proximity of the subject property to the improvements, and type of land use as described in the revised Assessment Method shown below, and with assignment of benefit in the downtown Portland area divided into three (3) zones based on distance from the Portland Mall, unless this assessment methodology is modified by City Council at the LID Formation Hearing:

Assessment Method. Properties within the LID owned by the State of Oregon and used by Portland State University will be assessed a total lump sum of $7,000,000. All other properties within the LID will be assessed an amount equal to their Land and Improvement Value (Value) multiplied by a calculated Value Assessment Rate and a Distance Factor. The current estimated Value Assessment Rate will equal an amount not to exceed $5.25 per thousand dollars of Value for Commercial properties, $3.50 per thousand dollars of Value for Local Institutional properties and $2.625 per thousand dollars of Value for Residential properties. Upon certification by the property owner of Residential property, Qualified Low Income Housing will be eligible for a reduced Value Assessment Rate of $1.3125 per thousand dollars of Value for the proportion of the units in the property benefiting tenants at 60% of Area Median Income or below. Local Institutional properties will include churches, theaters, museums, libraries, parks, places of public assembly and other publicly owned or non-profit facilities. Residential properties will include properties primarily in residential use, both owner-occupied and rentals. All other properties will be classified as Commercial properties. Federally owned properties will be exempt. The Distance Factor will be equal to 1.00, 0.667 and 0.333 for properties within Assessment Zones A, B and C, respectively; and

BE IT FURTHER RESOLVED, that the assessment methodology of the local improvement shall be on real market value assessment rate, with assignment of benefit in the downtown Portland area divided into three (3) zones based on distance from the Portland Mall, with Zone A being assessed $9,500,000, with Zone B being assessed $5,000,000, with Zone C being assessed $2,500,000, and Portland State being assessed $7,000,000; and

BE IT FURTHER RESOLVED, that the property owners will provide funding in the fixed amount of $24,000,000, plus the costs of any extra work on private property, and the remaining City of Portland share shall be funded per the terms of the intergovernmental agreement with TriMet, and TriMet’s Full Funding Grant Agreement with the Federal Transit Administration; and

BE IT FURTHER RESOLVED, that the project will be constructed by TriMet through intergovernmental agreements for project financing and engineering and construction agreements; and

BE IT FURTHER RESOLVED, that the City Council intends to construct the improvement contingent upon TriMet receiving a Full Funding Grant Agreement with the Federal Transit Administration for federal funding for the I-205/Mall LRT Project; and

BE IT FINALLY RESOLVED, that the City Council directs the City Engineer to initiate the local improvement district formation proceedings as set forth in Section 17.08.070 in city code and to schedule a Local Improvement District Formation Hearing on September 29, 2004, at 2:00 p.m., or on the earliest practical date thereafter.

Adopted by the Council August 11, 2004

   Auditor of the City of Portland

Commissioner Jim Francesconi  By /S/ Susan Parsons

Stephen Iwata/Vicky L. Diede

August 10, 2004

BACKING SHEET INFORMATION

AGENDA NO. S 965-2004

ORDINANCE/RESOLUTION/COUNCIL DOCUMENT NO. 36244 SUBSTITUTE