RESOLUTION No. 36420

Declare intent to initiate local improvement district formation proceedings to construct improvements to extend Portland Streetcar from SW Gibbs Street to SW Lowell Street (Resolution; C-10018)

WHEREAS, on August 22, 2003, the Portland Development Commission entered into the South Waterfront Central District Project Development Agreement with Oregon Health & Science University (OHSU); River Campus Investors, LLC; North Macadam Investors, LLC and Block 39 LLC (Development Agreement); and

WHEREAS, the Portland Development Commission (PDC) recognized that it would be necessary over time to amend the Development Agreement because of changing conditions and opportunities affecting this complex and substantial project; and

WHEREAS, on April 11, 2006, the Portland Development Commission (PDC) authorized the Executive Director of PDC to enter into an Eighth Amendment to the Development Agreement, which, among others things calls for the Portland Office of Transportation to contract for the construction of the improvements needed to extend Portland Streetcar from SW Gibbs Street to SW Lowell (Project), and to enter into such contract by August 1, 2006; and

WHEREAS, Portland Streetcar, Inc. (PSI) is under contract to the City for project management and engineering services to complete final design of the Project and to assist the City with securing the resources for both the capital operating plans; and

WHEREAS, PSI has assisted the City by recommending an assessment methodology and by conducting an informal meeting of property owners on June 15, 2006, in order to discuss the project design, schedule, construction plans and details of the proposed local improvement district (LID); and

WHEREAS, the Portland Office of Transportation (PDOT) is the responsible bureau for the Portland Streetcar Lowell Extension Project and recommends initiation of local improvement district formation proceedings; and

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

NOW, THEREFORE, BE IT RESOLVED, the City Council declares the intent of the City to initiate local improvement district formation proceedings to construct the improvements necessary to extend Portland Streetcar service from SW Gibbs Street to SW Lowell Street, such improvements being necessary and should be constructed; and

BE IT FURTHER RESOLVED, that the local improvement district shall be known as the Portland Streetcar Lowell Extension 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 attached to this Resolution and, by reference, made a part hereof; and

BE IT FURTHER RESOLVED, that the general character and scope of the improvements are the design and construction of trackway, stops, overhead electrification system, traffic and train signals, utility relocations, street construction or reconstruction and other improvements; but local improvement district assessments will be used only for direct streetcar improvements. The improvements will extend service approximately 0.4 miles to SW Lowell Street on a SW Moody and Bond couplet, as set for the in Exhibit B attached to this Resolution and, by reference, made a part hereof; and

BE IT FURTHER RESOLVED, that the preliminary estimate of the cost of the improvements is $13.2 million and that the local improvement district will fund the improvements in a fixed amount of $4.8 million with the remaining costs paid by savings from the Portland Streetcar Gibbs Extension Project; U.S. Department of Housing and Urban Development grants; a portion of the proceeds of the land sale, known as the Harbor/Naito properties, to the Portland Development Commission; tax increment financing already committed to South Waterfront transportation projects and a ConnectOregon grant application scheduled to be awarded on July 19, 2006; and

BE IT FURTHER RESOLVED, that the assessment methodology of the local improvement district is such that the total assessment amount of $4.8 million will be prorated among individual benefited properties based a calculated assessment rate, in dollars per square foot, times the land area of the property, in square feet times, a distance factor from 0 –1.0, based on the nearest distance of the property to a streetcar street, minus the final assessment on the property from the Portland Streetcar Gibbs Extension Project LID; and

BE IT FURTHER RESOLVED, that, under conditions and requirements that are agreed to by the City, a process will be developed enabling a property owner to assign a portion or all of the LID assessment on one or more properties to one or more other properties within the LID boundary owned by that property owner or another property owner agreeing to the assignment; and

BE IT FURTHER RESOLVED, that the assessment of property in this LID will be credited against any assessment on the same property under a future LID to finance an extension of the streetcar that is formed within 10 years from the date of forming this LID; and

BE IT FURTHER RESOLVED, that the City Council directs PDOT in initiate the local improvement district formation proceedings, as set forth in Section 17.08.070 of the City Code and to schedule a Local Improvement District Formation Hearing on July 26, 2006, or on the earliest practical date thereafter.

Adopted by the Council, June 21, 2006

 GARY BLACKMER

 Auditor of the City of Portland

Commissioner Sam Adams  By /S/ Colleen Phillips

Vicky Diede:slg

June 9, 2006                    DEPUTY

BACKING SHEET INFORMATION

AGENDA NO. 841-2006

ORDINANCE/RESOLUTION/COUNCIL DOCUMENT NO. 36420