HomeMy WebLinkAboutOrdinance No. 20092ORDINANCE NO. 20092
AN ORDINANCE ESTABLISHING A WEST UNIVERSITY
SERVICES DISTRICT OCCUPANCY FEE; AMENDING
SECTIONS 3.650, 3.655, 3.660, 3.665, 3.670, 3.675 AND 3.680
TO THE EUGENE CODE, 1971; PROVIDING AN EFFECTIVE
DATE; AND DECLARING AN EMERGENCY.
The City Council of the City of Eugene finds that:
A. The West University area is a unique part of the City, combining a mix of service s
and businesses close to the University of Oregon campus. 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 West University 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 West University area.
B. Extensive review has occurred to determine an equitable manner in which to
recover these special and unique expenses. A majority of 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 generally
will be expended for provision of West University foot-patrol police officer, police sub-station,
guides, graffiti removal program for affected businesses, enhanced litter removal, limited funds
for joint advertising and promotion of the West University business area, research and
communication of issues that affect West University businesses within the West University area
only. It is further the Council's intent that such fees will be imposed for a three year period
ending September 30, .2000, unless extended prior to that time by the Council.
D. The provisions related to the City's Downtown Services District set forth in
Sections 3.650 to 3.675 should therefore be amended to include the West University Services
District.
THE CITY OF EUGENE DOES ORDAIN AS FOLLOWS:
Section 1. Based on the above findings, which are adopted herein, the caption preceding
Sections 3.650, 3.660 and 3.680 of the Eugene Code, 1971, are amended, and the catch lines of
Sections 3.655, 3.665, 3.670 and 3.675 of that Code are amended to provide:
Ordinance - 1
Special Services District Occupancy Fee
3.650 Special Services District Occupancy Fee -Imposed.
(1) Downtown Services District
(a) Unless exempt pursuant to section 3.680(1)(a) 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:
1. Owners of property located within the inner district as defined
in subsection (c) of this section, shall pay the following fees per square foo t
of occupied space, exclusive of occupied basement space, per quarter:
a. $0.03 for fiscal year commencing July 1, 1997;
b. $0.03125 for fiscal year commencing July 1, 1998;
and
c. $0.03250 for fiscal year commencing July 1, 1999;
and
2. Owners of property located within the outer district as defined
in subsection (c) of this section, shall pay the following fees per square foo t
of occupied space, exclusive of occupied basement space, per quarter:
a. $0.02 for fiscal year commencing July 1, 1997;
b. $0.02125 for fiscal year commencing July 1, 1998;
and
c. $0.02250 for fiscal year commencing July 1, 1999.
(b) Notwithstanding subsection (a) 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.
(c) The boundaries of the downtown services district to which this
occupancy fee applies are described as:
1. 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.
2. Outer district. The properties between the centerlines of 6th
Avenue and 1 lth Avenue that abut the west side of Charnelton Street on the
West; the properties between the northern boundary of the inner services
Ordinance - 2
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 centerline s
of 6th Avenue and 11th Avenue on the East.
as depicted on the map attached as Exhibit A hereto.
(d) Commencing July 1, 1997, owners of property located within both the
inner district and outer district shall pay a fee of $0.01 per square foot of occupie d
basement space per quarter.
(2) West University Services District
(a) Unless exempt pursuant to section 3.680(1)(b) of this code, the
owner of property within the West University 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-exempt 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-exempt
purposes as measured on the first day of the quarter. Owners of the property
located within the district as defined in subsection (b) of this section shall pay the
following fees on a quarterly basis, as provided in section 3.660(2) of this code:
1. $0.04 per square foot per month, up to a maximum of
$400.00 per property per month; and
2. $7.50 per occupied room per month.
(b) The boundaries of the West University services district to which this
occupancy fee applies are described as the commercial property on 13th Avenue
between Kincaid Street and Ferry Street plus the adjacent commercial property on
Alder Street and Hilyard Street between 13th Avenue and the alley south of 13th
Avenue, excepting therefrom the north side of 13th Avenue from Ferry Street to
Hilyard Street, as more particularly depicted on the map attached as Exhibit B
hereto.
3.655 Special 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 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 unde r
Ordinance - 3
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 Special Services District Occupancy Fee -Payment.
(1) The occupancy fee imposed pursuant to section 3.650(1) 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 th e
quarter commencing April 1, 2000.
(2) The occupancy fee imposed pursuant to section 3.650(2) of this code shall
be payable in advance on a quarterly basis. The quarters to which this fee applies shall commence
on October 1, 1997, and every January 1, April 1, July 1 and October 1, thereafter, to and
including the quarter commencing July 1, 2000.
(3) 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.
(4) 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 Special Services District Occupancv 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 3.67 5
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.
(3j 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 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.
Ordinance - 4
(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 Special Services District Occupancv 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.
3.675 Special 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
Ordinance - 5
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 Special Services District Occupancy Fee -Exemptions.
(1) No occupancy fee shall be imposed or levied under section 3.650 where a
certificate of exemption has been issued pursuant to subsection (2) of this section.
(a) The following qualify for a certificate of exemption under section
3.650(1):
1. Publicly owned property occupied by any public agency; or
2. That portion of property occupied by an organization exempt
from the payment of taxes pursuant to 26 USC 501(c)(3); or
3. That portion of property occupied for residential purposes.
(b) The following qualify for a certificate of exemption under section
3.650(2):
1. Publicly owned property occupied by any public agency; or
2. That portion of property owned by anon-profit corporation
which is used for overnight lodging purposes; or
3. That portion of property occupied for residential purposes;
or
4. The basement portion of property.
(2) In order to qualify for an exemption under subsection (1) or (2) 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
may be 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
exempt from the fees imposed pursuant to section 3.650(1)..
Ordinance - 6
Section 2. Notwithstanding the effective date of this ordinance pursuant to the provisions
of the Charter and the Eugene Code, 1971, the occupancy fees established herein for the West
University Services District shall become due October 1, 1997, and shall terminate September 30,
2000, unless earlier terminated or extended by the Council. The occupancy fees for the
Downtown Services District remain in effect as previously established.
Section 3. The City Recorder, at the request of, or with the concurrence of the City
Attorney, is authorized to administratively correct any reference errors contained herein or in
other provisions of the Eugene Code, 1971, to the provisions added, amended or repealed herein.
Section 4. That the matters contained herein concern the public welfare and safety and
therefore, an emergency is hereby declared to exist, and this Ordinance shall become effective
immediately upon its passage by the City Council and approval by the Mayor, retention by the
Mayor for more than ten days, or readoption over a Mayoral veto by two-thirds of all members
of the City Council.
Passed by the City Council this Approved by the Mayor this
17th day of September, 1997
y~ -
City Recor er
4
Ordinance - 7
17th day of September, 1997
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