08/13/1984 Meeting (2) - Laserfiche WebLink

Home Browse Search

Roll call vote; the motion carried unanimously, 8:0. e DOWNTOWN DEVELOPMENT DISTRICT CODE AMENDMENT (memo, ordinance distributed) V. Assistant City Manager David Whitlow introduced the agenda item. Carol James of Administrative Services presented the staff report, reviewing her August 8, 1984, memorandum to the City Manager regarding the taxation of not-for-profit businesses within the DDD. She said the City Attorney's Office felt that the ODD taxes applied to these businesses but had advised against any attempts to collect the taxes in court based on the potential for negative public relations and the possible length of such a case. She said the Downtown Commission had directed staff to resolve the issue. Ms. James then reviewed the changes proposed by the ordinance which would establish exemptions to DDD taxes for residential properties and not-for-profit organizations in the DDD area and to establish a user fee for those businesses. She said the Downtown Commission voted unanimously on July 10 to recommend Council approval of the proposed ordinance. In response to a question by Councilor Hansen, Ms. James stated that businesses to be exempt from the ODD taxes would be as defined by the Oregon Revised Statutes. She stated that two such organizations had refused to pay the ad valorem taxes for the past three years based on their non-for-profit status. She again stated that the City Attorney's Office felt that the businesses were rightly subject to the taxes but that any efforts to collect the unpaid taxes would be costly and time-consuming. She said the ordinance was being offered as a compromise. She explained that the City would write off a portion of the e accounts receivable; she said an agreement was in process to collect a portion of those accounts. She said the agreements tended to be contingent on the removal of future taxes. Councilor Ball asked if any rebate would be offered to those businesses who had been faithfully paying the taxes. Ms. James said no rebate was being considered; she added that Finance has attempted to allow identified not-for-profit businesses to pay a reduced rate if qualified. She added that the taxes paid for economic development programs for the downtown area and the parking program. In response to a question by Councilor Ball regarding payments by Olive Plaza, Ms. James stated that the prior assessment of the property was $12,000; she said the assessment on the commer- cial aspect of the property was not determinable because it had not been developed. In response to a question by Councilor Hansen, Ms. James stated that the ordinance would mean an increase of approximately .5 percent to the other businesses--approximately $10,000 to $12,000 total for the ad valorem tax. She said figures were not available for the gross receipts collection issue. She said Lane Community College would pay approximately $2,500 to $3,000 per year if the user fee were applied. CB No. 2768--An ordinance concerning the Downtown Development District user fees; amending Sections 3.700, 3.705, 3.750, 3.755, and 3.760 of the Eugene Code, 1971; renumbering Section 3.745 of that code; adding new Sections 3.742, 3.743, 3.744, 3.745, 3.746, and 3.765 to that code; and providing an effective date. e MINUTES--Eugene City Council August 13, 1984 Page 5