HomeMy WebLinkAboutOrdinance No. 19965ORDINANCE NO. 19965
AN ORDINANCE ESTABLISHING A DOWNTOWN
SERVICES DISTRICT OCCUPANCY FEE; ADDING
SECTIONS 3.650, 3.655, 3.660, 3.665, 3.670, 3.675, AND 3.680
TO THE EUGENE CODE, 1971; AND PROVIDING AN
EFFECTIVE DATE.
The City Council of the City of Eugene finds that:
A. The Eugene downtown area is a unique part of the City, combining a mix of
services and businesses with such public space as the mall and the park blocks. This
produces an area that generates a need for more concentrated management, marketing,
maintenance and security related services than other parts of the City. These .needs result
from the various occupancies in the buildings within the downtown area. It is therefore
appropriate that these needed additional services be supported by a fee tied to the
occupancy or use of buildings within the downtown area.
B. .Extensive review has occurred to determine an equitable manner in which to
recover these special and unique expenses. Property and business owners within the area
have expressed support for imposition of a fee for occupied property not otherwise exempt
from the fee.
C. It is the intent in imposing such a fee that the revenues generated thereby will
be expended for provision of management, marketing, maintenance and security related
services within the downtown area only. It is further the Council's intent that such fees will
be imposed for a three year period ending June 30, 1997 unless extended prior to that time
by the Council. It is further the Council's intent that the revenues generated by this
Ordinance will be replaced by the revenues generated by a city-wide tax on excess parking
spaces as defined by the Council, at such time as the Council adopts such an alternative
revenue source.
THE CITY OF EUGENE DOES ORDAIN AS FOLLOWS:
Section 1. Based on the above findings, which are adopted herein, the following
caption and Sections 3.650, 3.655, 3.660, 3.665, 3.670, 3.675, and 3.680 are hereby added to
the Eugene Code; 1971, to provide:
Downtown Services District Occupancy Fee
Ordinance - 1
3.650. Downtown Services District Occupancy Fee -Imposed.
(1) Unless exempt pursuant to .section 3.680 of this code, the owner of
property within the downtown services district shall pay to the city a fee based on the square
footage of space in a building which is occupied or used for non-residential purposes. No
fee shall be imposed 'for that portion of the building which is not occupied. The fee shall
be paid quarterly. The quarterly fee shall be based. on the amount of square footage of
space occupied or used for non-residential purposes measured on the first day of the quarter
as follows:
(a) Owners of property located within the inner district as defined
in subsection (3) of this section,. shall pay a fee. of $0.03 per square foot of
occupied space per quarter; and
(b) Owners of property located within the outer district as defined
in subsection (3) of this section, shall pay a fee of $0.02 per square foot of
occupied space per quarter.
(2) Notwithstanding subsection (1) of this section, the owners of hotels and
motels located within the downtown services district shall pay a fee of $7.50 per occupied
room per quarter. For purposes of this subsection, the fee for any quarter shall be based
on the daily average of occupied rooms during the immediately .preceding quarter. Such
hotels and motels also shall pay to the city a square footage occupancy fee under subsection
(1) of this section for that portion of the hotel or motel which is engaged in retail or food.
service activities.
(3) The boundaries of the downtown services district to which this
occupancy fee applies are described as:
(a) Inner district. ,That area bounded by the centerlines of 7th
Avenue on the North, Charnelton Street on the West, 11th Avenue on the
South, and the North/South alley between Pearl Street and High Street on the
East.
(b) Outer district. The properties between the centerlines of 6th
Avenue and 11th Avenue that abut the west side of Charnelton Street on the
West; the properties between the northern boundary of the inner services
district and the centerline of 6th Avenue on the North; and the properties
between the eastern boundary of the inner services district to and including
the properties that abut the East side of High Street between the centerlines
of 6th Avenue and 11th Avenue on the East.
as depicted on the map attached as Exhibit A hereto.
3.655 Downtown Services District Occupancy Fee -Administration.
(1) The city manager shall administer and implement the provisions of
sections 3.650 to 3.680 of this code. Except where otherwise indicated, as used herein, "city
manager" includes the city manager's designee, and any entity the city manager contracts
with for the administration of sections 3.650 to 3.680, and the billing and collection of the
fees due thereunder and enforcement of those provisions. The city shall not delegate to a
contractor authority to promulgate rules, establish fees, or issue final decisions regarding the
Ordinance - 2
imposition of fees or penalties.
(2) The city manager may establish rules pursuant to section 2.019 of this
code for implementation of sections 3.650 to 3.680 of this code. Such rules may include, but
are not limited to, provisions necessary for eliciting information needed to administer the
occupancy fee provisions, inducing prompt and full payment of the fee, preventing fraud or
evasion in reporting or payment of the fee, procedures to adequately apprise property
owners of their obligations under sections 3.650 to 3.680, provisions that further define what
constitutes occupied property, residential use, and other terms used in this ordinance,
procedures for resolution of disputed designations, and imposing sanctions conducive to
compliance with the rules and this code.
(3) The .city manager or designee .may obtain from each property owner
the information necessary. or convenient for determining the accuracy of the occupancy fee
report. Each person subject to the fee shall keep available and open for inspection by the
city, such records as may be necessary in making such determination.
3.660 Downtown Services District Occupancy Fee -Payment.
(1) The occupancy fee imposed pursuant to section 3.650 of this code shall
be payable in advance on a quarterly basis. The quarters to which this fee applies shall
commence July 1, 1994, and every October 1, January 1, April 1, and July 1 thereafter, to
and .including the quarter commencing April 1, 1997.
(2) Payments shall be submitted, together with the occupancy fee report
form, by no later than the 10th day of the first month of each quarter.
(3) Payments submitted after the due date, or submitted without the
required occupancy report form shall be subject to a delinquency penalty and interest as set
forth in section 3.665 of this code. Payments shall be considered timely submitted if
personally delivered to the address indicated on the occupancy report form or postmarked
on or before the due date.
3.665 Downtown Services District Occupancy Fee -Penalties and Interest.
(1) Interest at the rate of one and one-half percent per month from the
first day of the quarter to the date paid shall be imposed on payments not received by the
due date established in section 3.660.
(2) A person who has not been granted an extension of time under section
.3.675 of this code and who fails to file the occupancy fee report and pay the fee due by the
date due, or by the end of a granted extension of time, shall be required to pay, a late
penalty of an additional ten percent on the total fee, plus interest.
(3) A penalty in the amount of 15 percent of the actual amount due during
a quarter shall be imposed for failure to correct an underestimated payment prior to the. end
of the quarter.
(4) In addition to the interest and/or any penalties imposed under
subsections (1), (2} or (3) of this section, or section 3.670, the city manager or designee may
impose an administrative civil penalty pursuant to section 2.018 of this code for failure to
Ordinance - 3
file required reports, failure to pay the required occupancy fee, repeated uncorrected
estimated occupancy fee payments, filing a fraudulent occupancy fee report, or failure to
comply with the change of ownership or occupancy notice requirements of section 3.680.
(5) Any interest or penalties imposed pursuant to this section shall be due
and payable within ten days from the date of delivery of the notice. For purposes of this
subsection, the notice shall be deemed delivered on the date personally left with the owner,
or three days from the date mailed, if mailed to an owner within the city, and five days from
the date mailed, if mailed to an owner not residing within the city.
3.670 Downtown Services District Occupancy Fee -Penalty for Fraud.
(1) Upon a determination by the city manager or designee that the
nonpayment of a remittance due under sections 3.650 to 3.680 of this code is due to fraud
or intent to evade a requirement of those sections, there shall be added to the amount of
fee due a fraud penalty of 25 percent of the amount of fee due for the quarter during which
the fraud or intent to evade occurs. This penalty shall be in addition to any other penalties
imposed pursuant to section 3.665.
(2) In the event a person fails or refuses to pay the occupancy fee, makes
a fraudulent return, or otherwise attempts to evade the requirements of sections 3.650 to
3.680 of this code, or rules or regulations adopted by the city manager, the city manager or
designee shall obtain the necessary facts and information upon which to base a
determination of the amount of occupancy fee due. Notice of the amount so determined,
together with any interest or penalties thereon shall be given to the person responsible for
payment thereof. The amount so determined becomes due upon receipt of the notice, and
the determination becomes final within ten days after the .receipt of the notice, unless prior
thereto a petition for reconsideration is filed with the city manager pursuant to subsection
(4) of this section. Failure to petition for reconsideration or pay the amount due within the
ten day period may subject the person to an additional penalty of $50.00 per day for each
day thereafter the amount remains unpaid.
(3) A determination under this section shall be made and the notice mailed
within three years of the date the city manager or designee discovers the fraud, intent to
evade, or failure or refusal to pay the occupancy fee.
(4) A person against whom a determination is made under this section, or
a person financially interested in the determination may, within ten days from the date the
notice is received, petition the city manager or designee for a review of the determination.
The review of the determination shall be heard and considered by a hearings official
pursuant to the procedures of section 2.021 of this code. The decision of the hearings
official is final.
(5) The petition for review must be accompanied by the amount declared
due under the notice subject to review, together with a hearing fee established by the city
manager pursuant to section 2.020 of this code.
Ordinance - 4
3.675 Downtown Services District Occupancy Fee -Extension of Time. .Prior
to the delinquency of a fee due under section 3.650, the city manager or
designee may, for good cause, extend the time for filing an occupancy fee return and making
payment of the fee due thereunder, for a specific period of time not to exceed 30 days. A
person to whom such an extension is granted shall pay interest at the rate. ~of one and one-
half percent per month on the amount of fee due, without proration for a fraction of a
month. If the report is not filed, or the fee and interest due is not paid by the end of the
extended time, the interest shall become a part of the fee for computation of any penalty
under section 3.665.
3.680 Downtown Services District Occupancy Fee -Exemptions.
(1) No occupancy fee shall be imposed or levied where a certificate of
exemption has been issued pursuant to subsection (2) of this section. The following qualify
for a certificate of exemption:
(a) Publicly owned property occupied by any public agency; or
(b) -That portion of property occupied by an organization exempt
from the payment of taxes pursuant to 26 USC 501(c)(3); or
(c) That portion of property occupied for residential purposes; or
(d) The basement portion of property not otherwise exempt
hereunder. For purposes of this subsection, "basement" means that portion
of a building that is both below ground level and below the main entryway to
the building,
(2) In order to qualify for an exemption under subsection (1} of this section,
the owner of the property for which the exemption is sought shall file with the city manager
or designee a statement listing the property, or portion thereof, claimed to be exempt, and
the basis for the exemption. Upon finding that the property qualifies for the exemption, the
city manager or designee shall issue a certificate of exemption from the occupancy fee for
that portion of the property that qualifies for the exemption.
(3) During the period of exemption, the owner of any property for which
a certificate of exemption is issued shall notify the city manager or designee of any change
in ownership, occupancy, or use of the premises within 30 days of the date of such change.
If the change results in the property no longer being qualified for exemption, within ten days
from the date notice is provided to the city, the owner or person responsible for payment
must file an occupancy fee report form, and pay the occupancy fee due from the date of the
change to the end of that quarter.
(4) In addition to any penalties or interest imposed pursuant to section
3.665, an administrative civil penalty may be imposed pursuant to section 2.018 of this code
for failure of an owner to comply with the provisions of subsection (3) of this section.
(5) A decision of the city manager or designee denying a request for
exemption maybe appealed to a hearings official pursuant to the provisions of section 2.021
of this code. The appeal must be filed within ten days from the date of the decision and
must be accompanied by any required appeal fee.
(6) Publicly owned property occupied by a commercial tenant shall not be
Ordinance - 5
exempt from the fees imposed pursuant to section 3.650.
Section 2. It is the determination of the City Council that the occupancy fee
established by this ordinance is not subject to the limits of section llb, Article XI of the
Oregon Constitution, and the Council therefore classii"ies the occupancy fee as not subject
to those limits. The City Manager shall publish notice as authorized by ORS 305.583(8).
Section 3. Notwithstanding the effective date of this ordinance pursuant to the
provisions of the Charter and the Eugene Code, 1971, the occupancy fees established herein
shall become due July 1, 1994 and shall terminate June 30, 1997 unless earlier terminated
or extended by the Council.
Passed by the City Council this
Approved by the Mayor this
18th day of May, 1994
[_. /~ '
City Recorder /
18th day of May, 1994
Mayor
Ordinance - 6
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