HomeMy WebLinkAboutItem 2D: Approval of Resolution on Historic Property
ECC
UGENE ITY OUNCIL
AIS
GENDA TEM UMMARY
Adoption of Resolution 4933 Adopting a Second Period of Special Assessment of
Historic Property Pursuant to SB 416 (2007 OR LAWS CH 718)
Meeting Date: March 10, 2008 Agenda Item Number: 2D
Department: Planning and Development Staff Contact: Ken Guzowski
www.eugene-or.gov Contact Telephone Number: 682-5562
ISSUE STATEMENT
The City Council is asked to adopt the attached resolution that will allow owners of commercial
properties listed in the National Register of Historic Places to apply for a second 15-year enrollment in
the Oregon Special Assessment Program. Pursuant to Senate Bill (SB) 416, this program is
administered by the Oregon State Historic Preservation Office and allows the owner to freeze property
taxes at their current assessed value for a second 15-year period, with the agreement that they will use
the tax savings to appropriately rehabilitate their historic property.
BACKGROUND
The City Council has not been involved in this program in the past. The Oregon State Historic
Preservation Office works directly with the property owner to develop their preservation plan and to
ensure compliance and timeliness. The Legislative content of SB 416 makes commercial property
eligible for a second 15-year period, provided the local government adopts a resolution authorizing a
second term on a jurisdictional basis, not on a building-by-building basis.
Currently, there are a total of 32 historic properties in Eugene enrolled in the Oregon’s Special
Assessment Program, consisting of nine historic commercial and 23 historic residential properties.
Commercial properties listed in the National Register were able to enroll in a second 15-year tax freeze
as of 1995, but with the passage of SB 416 local jurisdictions are now required to adopt a resolution to
allow commercial properties to apply for a second 15-year enrollment.
On average, a commercial property might see a savings of as much as $800 to $1,000/year or $12,000 to
$15,000 over 15 years. The equation can be extended to $108,000 to $135,000 in total tax reductions for
the nine commercial property owners for the entire 15 year period. These figures are approximate
because the condition of the property as it relates to date of enrollment might have resulted in an
unusually low freeze on the assessment, which carries forward for the full 15-year term. Upon
completion of the first 15-year term, the property is assessed at the current market value, so it is this
dollar amount that property owners use to enroll in a second 15-year term.
Adoption of the resolution will allow current and future commercial properties listed in the National Register
to enroll in a second 15-year Special Assessment Program, providing them tax savings so that they can
continue to reinvest the savings in the rehabilitation of their property.
F:\CMO\2008 Council Agendas\M080310\S0803102D.doc
Not adopting the resolution will prohibit current and future commercial properties listed in the National
Register from enrolling in a second 15-year Special Assessment Program. Upon expiration of the first 15-
year enrollment these properties will be reassessed at current market value for the purpose of taxation.
The proposed resolution has been prepared by the City Attorney’s Office and is included here as
Attachment A.
RELATED CITY POLICIES
Policy 1 of the Historic Preservation Element of the Eugene/Springfield Metro Area General Plan states:
Adopt and implement historic preservation policies, regulations, and incentive programs that
encourage the inventory, preservation, and restoration of structures; landmarks; sites; and areas of
cultural, historic, or archaeological significance, consistent with overall policies.
Adoption of the proposed resolution supports Policy 1 because it will facilitate an incentive program
administered by the Oregon State Historic Preservation Office that encourages the rehabilitation of
significant historic structures that are listed in the National Register of Historic Places.
COUNCIL OPTIONS
The City Council has the option to:
1. Adopt the resolution as drafted;
2. Not adopt the resolution, or
3. Amend the resolution.
If the City Council wants to amend any portion of the attached resolution, they should direct staff to
what issues should be addressed and in what manner.
CITY MANAGER’S RECOMMENDATION
The City Manager recommends Option 1, that the City Council adopt this resolution as drafted.
SUGGESTED MOTION
Move to adopt Resolution 4933 adopting a second period of special assessment of historic commercial
property pursuant to SB 416 (2007 OR LAWS CH 718).
ATTACHMENTS
A. Proposed Resolution
FOR MORE INFORMATION
Staff Contact: Ken Guzowski
Telephone: 682-5562
Staff E-Mail: ken.j.guzowski@ci.eugene.or.us
F:\CMO\2008 Council Agendas\M080310\S0803102D.doc
ATTACHMENT A
RESOLUTION NO. _______
A RESOLUTION AUTHORIZING A SECOND TERM OF HISTORIC
PROPERTY CLASSIFICATION AND SPECIAL ASSESSMENT FOR
COMMERCIAL PROPERTY PURSUANT TO SENATE BILL 416 (2007
OR LAWS CH 718).
The City Council of the City of Eugene finds that:
A.
The City of Eugene and its citizens value the preservation of its architectural
heritage and support tools to assist that preservation, including property tax deferment programs.
B.
The 2005 Oregon Legislature enacted House Bill 2776 which amended the
Special Assessment of Historic Property program to allow residential property owners to reapply
for a second term of special assessment providing, if the residential property is located within a
city, the governing body of the city adopts a resolution or ordinance authorizing a second term of
historic property classification and special assessment for residential property.
C.
On May 22, 2006, the City Council adopted Resolution No. 4873 which
authorized a second term of historic property classification and special assessment for owners of
residential historic property
D.
The 2007 Oregon Legislature enacted Senate Bill 416 which amended the Special
Assessment of Historic Property program to allow commercial property owners to reapply for a
second term of special assessment providing, if the commercial property is located within a city,
the governing body of the city adopts a resolution or ordinance authorizing a second term of
historic property classification and special assessment for commercial property.
E.
The City Council finds that it would be in the public interest to authorize a second
term of special assessment for commercial property subject to the provisions of Senate Bill 416.
NOW, THEREFORE,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF EUGENE, a
Municipal Corporation of the State of Oregon, as follows:
Section 1.
The City of Eugene hereby authorizes owners of commercial historic property
to apply for a second term of historic property classification and special assessment, subject to
compliance with applicable statutes of the State and rules promulgated by the Oregon State
Historic Preservation Office.
Resolution -- Page 1 of 2
S0803102D-attA.DOC
Section 2.
The City Recorder is requested to forward a copy of this Resolution to the
State Historic Preservation Officer.
Section 3.
This Resolution shall be effective immediately upon its adoption.
The foregoing Resolution adopted the ______ day of ________________, 2008.
__________________________
City Recorder
Resolution -- Page 2 of 2
S0803102D-attA.DOC