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.,, ,,, HUG,,i~ '"04 09:22AM LEAGUE OF' OR CITIES P. 11/33
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<br /> ,, ,', .,,' ; ~harge¢ or other mechanisms currently paid by largely the developer that don't directly
<br /> .. ,,. . "., ,' place die bm:den on the mdi¥idual ~axpayer.
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<br /> ,~ ',Th~ magnitude of claim liability for this initiative is difficult to determine- but we know
<br /> ' ," ~ . .: it would be substantial. ECONortltwest prepared a entitled "Fiscal impacts of Ballot
<br /> ,, ,, ,"', , Measure, 7 on State and Local Governments: An Artalysis of Selected...Uegulations,' ' "in
<br />,, ' ' ",which ,their nine case stud/es resulted in $9-16 billion i~ compensation claims.
<br /> ,, , ,' ,","Additionally, shortly after Measure 7 passed, Jackson County received a sir~gle
<br /> , ·':compensation claim for over $5 milliorL
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<br /> " ' ' i ,, Oregon has approximately 27,000,000 acres of private property. 'If an average parcel siZe
<br /> , ' ' w,as 10 acres- both inside and outside the urban growth boundary,- and 1% of the property
<br /> · ' ..... ' ,d¢ners filed and received compensation in the amount of $150,000, it would cost local
<br /> ~; :. , . ,:g6vermnents $4.5 billion per year in claims costs alone. Or, if 5% of the property owners
<br /> .... '"' ' rebeived compensation in the amount of $28,000, it would cost loeaI govemmetats
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<br />.;,. .... ,, ,approximately $4 billion per year irt claims costs( These'amounts of'claims and/or
<br />., ,,,, ~', · :" c,,o'nil~ensation liability are very sm~ill considering the potential both in terms of numbers
<br />,., ,,.' ,.of claims, or costs of compensation.
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<br /> , , , '. ' ' ' ' U,tilizing these same parcel and claim rate assumptions, administrative costs to process
<br />.. '" ' . e,taims will cost local governments, fi'om $162- 830 million dollars per year u~der this
<br />, ,' ~ , ,, .frti.~iativc.2
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<br /> · ,, A more detailed comprehensive fi seal analysis of the proposed statutory amendment
<br /> ,. : , ,. ,, . ;'would require a through a~alysis of potential claims for each individual property in a
<br /> . .; ,control group. Additional!y, in order to detemfine the complete costs of the initiative, an
<br /> " ': ' ,' analysis would be required o£ a new administrative process that local government would
<br /> : ' ," · ,. ,. likely, enact' in order to make the claim determination necessary under the language of the
<br /> " '~ inidativh.
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<br /> ,, ,,' :', ,,Without a comprehensive property-by-property type analysis, we believe the
<br /> . * ~ ., ,esti,'mates of claim costs for Initiative #36 in the amount of $3.8 billion per year and
<br /> ,,' ",, , adm~mstrattve costs in the amount of $162 - 830 million per year to be reasonable.
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<br /> ,' : '~ I *Chose figures assume acres inside urban growth boundaries as 740,560; outside urban growth boundaries
<br /> ,' ", ,' i"' ' as £611ows: farm zoned, 15.5 million; forest and farm/forest, 10.5 million, rural/other rural, l million.
<br /> ,. ~' .,&vet, age density m~es are assumed as follows; inside urban growth boundaries, 4 parcels per acre; farm
<br /> , ~ ' ., ' ¢,ohed, 80'acres per pamel; forest and farm/foresk 300 acres per parcel; rural/other rural, 10 acres per
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<br /> ' ", ' ' ', ~. Fhese figures assume an average claim cost at $6,000 for appraisals, assessment, and processing.
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