Item 5: Ordinance Levying Assessments for West University Alleys

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· Tax lot 17-03-32-23 #6600 (Alley #1 & 2) - The assessable parcel area was corrected, reducing the area from 17,688 square feet to 13,987. The original final assessment amount is $36,972.35. Staff recommends correcting the parcel area which would reduce the final assessment amount to $33,270.85. · Tax lot 17-03-32-34 #1500 (Alley #6) - The property owner provided new information showing that their parcel was subdivided and the area was reduced from 10,688 square feet to 4,676. The original final assessment amount is $14,350.80. Staff recommends correcting the parcel area which would reduce the final assessment amount to $11,185.63. · Tax lot 17-03-32-23 #10000 (Alley #8 & 22) - The property owner informed staffthat 33% of their dwelling is used as an office and the remaining portion is used as a single family dwelling. The original final assessment amount is $29,338.32. Since majority of the existing use is single family dwelling, staff recommends reducing the weighting factor for existing use from general office (10) to single family dwelling (1). This results in reducing their assessment amount to $12,468.79. . Tax lot 17-03-31-44 #10400 (Alley #24) - The property owner provided new information showing that their parcel was subdivided and the area was reduced from 10,454 square feet to 4,008. The original final assessment amount is $9,465.10. Correcting the parcel area would reduce the final assessment amount to $6,246.44. The total cost difference between the original final assessments and the reduced final assessment amounts for these four parcels is $26,954.86. There are two alternative methods to cover the costs for those adjustments. The first is to redistribute the assessment costs for each of the four affected alleys. Per Eugene Code, this would require a new public hearing, since the adjustments and cost redistribution would increase assessment costs for the other property owners in the four alleys. Also, holding this new public hearing would cause a delay in final assessment, increase the financing costs for the project and increase assessments incrementally to all the property owners in the LID and to the City. If this method is chosen, the estimated increase in assessment costs from the delay is about $8,500 per month. The second method to cover the cost of the adjustments would be for the City to pay the costs. Assessment financing, a 10-year payment plan through the City, is available to all property owners within the improvement district as identified by Eugene Code, Chapter 7. Of the 160 properties in the LID, 2 property owners qualify for a 5/6 subsidy under the low-to-moderate income subsidy program. This City funded program only applies to owner-occupied residential properties in the LID. The total cost for the low income subsidies is $8,819.96, and is funded from the Street Subsidy Fund. RECOMMENDATION The final total assessable costs are higher than those quoted at the time of the formation of the LID. Assessment costs are in accordance with Eugene Code. Staff recommends approval of the final assessments as calculated, except that the assessments for the four properties described above be adjusted as noted and the costs for those adjustments be paid by the City, and that the Council levy the final assessments.