ORDINANCE No. 179009

Amend to add and modify findings and to correct a map for the Portland Aerial Tram Local Improvement District with no change in the local improvement district boundary, allocation of funding amounts or estimates of assessments. (Ordinance; amend Ordinance No. 178675; C-10009)

The City of Portland ordains:

Section 1. The Council finds:

1.  Ordinance No. 178675 was passed by City Council on August 18, 2004, forming the Portland Aerial Tram Local Improvement District (LID).

2.  Petitions signed by property owners (hereafter “Petitions for Portland Aerial Tram LID”) state:

“The LID assessment for project costs of all zones is fixed at $19,000,000 exclusive of Auditor’s costs. Auditor's costs include recording, superintendency and Local Improvement District Construction Fund (LIDCF) interest, which are estimated at $431,125.12 and will be proportionately allocated based on each zone's share of total project costs.”

3.  Petitions for Portland Aerial Tram LID are included as Exhibit A in Resolution No. 36225 adopted by City Council on June 10, 2004.

4.  Resolution No. 36225 in turn states:

“Be it further resolved, that property owners will provide funding in the fixed amount of $19,000,000 plus LID costs for Auditor’s charges including financing currently estimated at $431,126 for a total of $19,431,126, plus the costs of any extra work on private property, and the remainder shall be funded per the terms of the South Waterfront Central District Project Development Agreement.”

5.  Any significant or material changes to the estimate of the property owners’ assessments during the course of final engineering would require a subsequent hearing per Section 17.08.080 of City Code; however, the City Council reaffirms that the LID costs to be assessed to property owners will be limited to $19 million, plus Auditor’s charges including recording, superintendency and Local Improvement District Construction Fund (LIDCF) interest. The City Council also reaffirms that the costs to be assessed to property owners within each assessment zone are consistent with the amounts in Finding No. 12 of Ordinance No. 178675.

6.  Finding No. 15 of Ordinance No. 178675 states that:

“Local improvement district assessments are an incurred charge and are not subject to the property tax limitation established by Article XI, Section 11b of the Oregon Constitution.”

7.  Assessments imposed by this LID pursuant to a separate and subsequent assessment ordinance will not be an incurred charge.

8.  The original Ordinance submitted for City Council consideration at its July 29, 2004 LID Formation Hearing contained an LID boundary with four (4) internal assessment zones as shown in Exhibit A of this ordinance. The hearing was continued to August 4, 2004 and again to August 12, 2004. At the August 12, 2004 hearing, the City Council directed that a substitute ordinance be brought forward for consideration that did not change the LID boundary or the overall amount of the assessments, but directed that a fifth internal assessment zone be created and that some individual assessments be modified, none of which affected the assessments to be levied in the future on properties currently owned by Swinerton Investments and ZRZ Realty Inc. The substitute Ordinance included a replacement map (Exhibit B of Ordinance No. 178675; attached as Exhibit B of this Ordinance) which included the four assessment zones in South Waterfront but inadvertently omitted the assessment zone on Marquam Hill. Exhibit E of the substitute Ordinance included assessment amounts for the Marquam Hill assessment zone omitted from this map; this ordinance will not change the LID boundary or any of these assessment amounts. It simply clarifies City Council’s original intent to include the Marquam Hill assessment zone in the LID.

9.  This amendment to Ordinance No. 178675 does not constitute a major change to scope or cost of improvements per Section 17.08.080 of City Code; however, property owners were sent notice of a hearing on November 23, 2004 based Multnomah County property tax records as of this date.

NOW, THEREFORE, the Council directs:

a.  The City Council reaffirms that the total amount of costs that will be assessed to property owners in this LID after the final assessment hearing required by City Code will not exceed $19 million plus LID costs for Auditor’s charges, including financing.

b.  Finding No. 15 of Ordinance No. 178675 is amended by replacing the sentence “Local improvement district assessments are an incurred charge and are not subject to the property tax limitation established by Article XI, Section 11b of the Oregon Constitution” with the sentences, “Assessments for local improvements are not subject to the property tax limitation established by Article XI, Section 11b of the Oregon Constitution. Pursuant to City Code, assessment for this local improvement district will be imposed by a separate and subsequent ordinance.”

c.  Directive “c” of Ordinance No. 178675 is amended by replacing the sentence “Properties shall be assessed on a square footage basis within the four zones in the LID as indicated in Exhibit E” with the sentence “Properties shall be assessed on a square footage basis within the five (5) zones in the LID as indicated in Exhibit E.”

d.  Exhibit B of Ordinance No. 178675 is replaced in its entirety by the map attached as Exhibit C to this ordinance.

Passed by the City Council, December 22, 2004

GARY BLACKMER

Commissioner Jim Francesconi  Auditor of the City of Portland

Andrew Aebi:slg              By /S/ Susan Parsons

December 3, 2004

Tram Amended Ordinance rev7.doc            Deputy

BACKING SHEET INFORMATION

AGENDA NO. 1471 1512-2004

ACTION TAKEN:

DECEMBER 15, 2004 PASSED TO SECOND READING DECEMBER 22, 2004 9:30 AM

ORDINANCE/RESOLUTION/COUNCIL DOCUMENT NO. 179009