March 11, 2005

Commissioner Sam Adams

Commissioner Randy Leonard

Commissioner Dan Saltzman

Commissioner Erik Sten

Auditor Gary Blackmer

Dear Colleagues:

At our evening hearing on March 16, 2005, I will introduce legislation that proposes how the City of Portland should proceed with its implementation of Measure 37.

The City of Portland has an obligation to its citizens to implement this law in a reasonable way that protects claimants’ rights as well as the rights of neighborhoods and the larger community. It is my intention that we will implement Measure 37 in a fair and balanced manner. However, I also believe that Measure 37 failed to consider the rights of neighbors and the possible negative impacts these claims could have on our community’s quality of life.

The attached legislation is intended to flesh out the preliminary claims process established by Ordinance #178924 adopted by the Council on December 1, 2004. Specifically, it recommends that the City provide public notice to inform the neighbors of claims and allow them to provide input, establish a fee, and create a private right of action for property owners who may be harmed by development allowed by a waiver of land use regulations under the measure. It also recommends funding for a flexible services contract for independent property appraisals, economic analysis and title search services, to augment the City’s evaluation of claims as needed.

In addition to the administrative, financial and political challenges of implementing Measure 37, the measure also poses new legal risks. For this reason I have asked the Council to meet in Executive Session on March 15, 2005, to begin discussion of potential litigation related to specific Measure 37 claims.

Please contact Hannah Kuhn, Program Manager for Measure 37, or Nancy Hamilton, my Chief of Staff, if you have any questions.

With warm regards,

Tom Potter

Mayor