05/22/1978 Meeting - Laserfiche WebLink

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facilities that are creating the demand for this investment. He said it was consideration of an allocation of who will pay for the particular kinds of investments for growth in the city. He noted the cost of housing ~ is going up, and he felt there was no question that it was not by virtue .., of this kind of tax that inequities are being created in the housing market. He noted the purchase of many homes as investments and public policy programs that create that kind of situation. He would be suppor- tive of considering some of those concerns, but did not think that this particular tax is the problem. He would be in favor of looking at amendments if he thought it could be done in a short period of time. He favored the exemption as proposed by Mr. Obie, but said there was more research that needed to be done to establish the exempted dollar amount as it could have other affects on City policies, i.e., increasing single- family residences when multiple-family residences are needed. In summary, Mr. Delay felt the ordinance could probably be amended to be more workable, but he did not think there could be any resolution of the inevitable front-end costs. He did not think it could be done in 30-60 days. Vote was taken on the motion to reconsider which failed with Haws, lieuallen, Bradley, and Delay voting no; Hamel, Obie, and Smith voting aye. Mr. Delay requested that staff consider the questions that had been raised regarding the ordinance, and suggested perhaps Mr. Obie and other interested parties could work with staff in proposing various amendments. Manager noted that some time in June staff would be bringing to Council some studies regarding amendment suggestions. Mr. Lieuallen wondered what the experience of other jurisdictions had ~ been with such a tax. Don Gilman, Assistant Public Works Director, said experiments in Corvallis had shown that the tax was not recorded as a charge during the initial stage, the builders were bancrofting, and the homeowners were paying it off when they got their final home mortgage. It is considered a lien right from the start. He said it was found there was no way to get around the front-end charge. Manager noted staff could check with Cottage Grove, Florence, and perhaps Salem in their experiences with the tax. IV. Ordinances for Second Reading A. Hearings Panel Report May 15, 1978 (attached) Manager noted the appeal by Bruce Halverson from Zoning Board of Appeals was being carried over to the June 5 Hearings Panel meeting. Mr. Delay moved, seconded by Ms. Smith, to accept hearings panel report dated May 15, 1978. Motion carried unanimously. . 5/22/78--14 31'