11/25/1985 Meeting (2) - Laserfiche WebLink

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B. 10th and Oak Assessment District--Adjustment of Assessments e (memo, ordinance, background information distributed) City Manager Mike Gleason introduced the agenda item. Audit Supervisor Carol James presented the staff report. She said the proposed ordinance would reduce the original assessment by 30.86 percent, or a total of $652,869.38. Ms. James said the action would allow for the resolution of many long-standing issues, including the distribution of more than $1.8 million in excess net operating revenues and distribution of $800,000 in remaining funds. She presented a history of the assessment district. The 10th and Oak Special Benefit Assessment District was formed in 1966 when a $2 million levy was assessed against benefitted properties within the district to finance construction of a five-level parking facility. Ms. James outlined the district on a map. She said Bancroft bonds related to the assessment were sold in 1969, and the Overpark first opened for paid parking in fall 1969, although the structure was not completed until after that. A deficit assessment of $440,000 was levied in 1972 to finance completion of the structure, and related Bancroft bonds were sold in 1974. Code provisions at the time called for the rebate of excess operating revenues, less operating expenses, with the rebates to be applied as credits to the assessments outstanding. The structure's revenues had been projected to be sufficient to service the debt. Ms. James said the Downtown Develoment District was formed in 1972, and free e parking was established in surrounding areas, including the Overpark. To avoid double taxation of properties within the assessment district, a program of tax credits and deferrals was established as part of the DDD ad valorem and business and professional tax systems. Under the system, those in the 10th and Oak district received credits on their ODD ad valorem taxes in the amount of their annual assessment payments, including interest. Surrounding ODD properties were assessed higher ad valorem taxes to make up for the revenue deferred as credits to 10th and Oak district properties. Code provisions at that time called for reimbursement, to the ODD property owners who had paid the additional taxes, when the rebate from the Overpark net operating revenues was declared. Ms. James said no rebates had been declared before 1984. In March 1984, the council reviewed the issues and directed the call of the related Bancroft bonds remaining outstandtng. The council also directed staff to determine amounts available to be rebated' and to remove from the code provisions for future rebates and for the ODD-10th and Oak credit program. In June 1984, the council adopted ordinance 19253, declaring the rebate of $1.6 million in excess net operating revenues, an amount that included interest earnings on unrebated amounts. This ordinance set the stage for court action to confirm the council's interpretation of Eugene code provisions related to the rebate program. In July 1984, the council passed resolution 3868, directing staff to return to appropriate 10th and Oak assessment payers any funds remaining in the Overpark Fund after satisfaction of the bonds, distribution of the rebates, and satisfaction of any related administrative and legal costs. In August 1984, e MINUTES--Eugene City Council November 25, 1985 Page 8 ~