HomeMy WebLinkAboutOrdinance No. 19253ORDINANCE NO. ~~
AN ORDINANCE REGARDING THE DOWNTOWN DEVELOPMENT
DISTRICT; AUTHORISING A TAX LEVY OF $190,000;
SATISFYING DEBT DUE THE DOWNTOWN DE~~ELOPMENT
DISTRICT FUND ENO, 113} FROM THE 10TH & OAK
OVERPARK FUND ENO, 521}; ADJUSTING THE TAX
LIABILITY OF INDIVIDUAL PROPERTY WITHIN THE
DOWNTOWN DEVELOPMENT DISTRICT FOR SATISFACTION
OF DEBT
The City Council of the Cit of Eu ene finds tha
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~.. In November, 1966, when the City created the 10th & Oak
Overpark Assessment District Assessment District} it determined
the excess .net operating revenues from the 10th & Oak Over ark
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Off -Street Parking Facility would be used to reduce the s ecial
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benefit assessments made to parcels cif real propert within the
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Assessment District.
2, The assessments levied against property specially bene-
fited by the construction of the 10th & Oak Over ark Off-Street
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Parking Facility were created and modified by the following
ordinances:
Date Ord. No. Ex lanation Amount
11/21/66 14615 Original assessment $2,000,000
2/28/72 16390 Deficit assessment 470,000
11/27/72 16658 Property status change 73,?38
11/28/77 18087 Property status change 200 999
Total Assessed: $2,74,737
3. In order to construct 10th & Oak Overpack Off-Street
Parking Facilityr the City Council authorized the issuance of
general obligation improvement bonds under the Bancroft .Banding
Act as follows:
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.Date Ord. No. Amount
4/29/69 15635 $1,995,000
5/21/74 17481 445 404
Total Band Issue: $2,44,440
4. In 1972, with voter approval, the City Council created
the Downtown Development District which included the Assessment
District to finance and administer a program of economic romo-
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tion and development, free public parking for vehicles and the
promotion of alternate modes of transportation within the Down-
town Development District. The Downtown Development District
provided a new method of taxation within the Downtown Development
District to finance, among other thins free off-street ub '
g ~ p lic
parking and included a scheme of credits and deferrals for 14th &
Oak Dverpark special benefit assessments which resulted in a debt
from the 14th & Oak Dverpark Fund ~No. 521} to the Downtown
Development District Fund ~No. 113} .
5 . There now exist sufficient funds in the 14th & Oak
Dverpark Fund ~No. 521} to retire the outstanding unpaid general
obligation bonds. Further, there exist excess net o eratin
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revenues in the 14th & Oak Dverpark Fund ~No. 521} which have
never been declared as rebates and applied to lflth & Oak Dverpark
special benefit assessments or the debt of the 10th & Oak
Dverpark Fund ~No. 521} to the Downtown Development District Fund
~No. 113} as contemplated by the Eugene Cade.
6. For the vitality of the downtown area of the City it is
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in the public interest for the City to adjust the 10th & Oak
Overpack special benefit assessments; to extin wish the liens
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the 14th & Oak Overpack special benefit assessments; to settle
the debt of the .10th & Oak Overpack Fund ~No. 521} to the Down-
town Development District Fund ~No. 113}; and to close and
distribute the 14th & Oak Overpack Fund No. 521 .
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7. Based on the January 24, 1984 recommendation of the
Downtown Commission, on March 12, 1984, the City Council:
~a} Directed the City staff to make calculations
necessary for adjusting the 10th & Oak Overpack special bene-~
fit assessments and rebating the 10th & Oak Overpack excess
net operating revenues.
tb} Adapted Resolution No. 3838 calling for the redemp-
tion of outstanding unpaid 10th & Oak Overpack Improvement
Bonds and directing funds be deposited with the Cit ~s fiscal
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agent far the redemption.
~c} Adopted Ordinances No. 19232 and No. 19233 which
amended the City Code to limit the obligations of the loth &
Oak Overpack Fund ~No. 521} , to facilitate adjustment of the
10th & Oak Overpack special benef~.t assessments, and to
facilitate satisfaction of the debt of the 10th & Oak Over-
park Fund ~No. 521} to the Downtown Development District Fund
~No. 113} .
8 . On May 15 , 1984 , the electors of the City authorized the
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City Council to levy $190 x000 outside the constitutional 6~ ' ~-
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Cation far the Downtown Develo ment District
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9. As of July l~ 1984, it is projected:
~a} The 10th & oak overpark Fund ~No. 5~1} will have a
sum in excess of the amount delivered to the Cit 's fiscal
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agent to retire all outstanding unpaid bonded indebtedness
due to the 10th & oak overpark Improvement Bonds and interest
thereon and the amount to provide for operation and main-
tenance of the 10th & oak overpark off -Street Parkin
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Facility during fiscal year 1984--85;
fib} There will be $1,612~379.~5 of excess undistributed
net operating revenue in the 10th & oak overpark Fund ~No.
521} ;
~c} There will be a debt due and payable to the Down-
town Development District Fund ~No. 113} of approximatel
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$888,000 in credits and deferrals from the 10th & oak
overpark Fund ~No. 5zl} upon the declaration of rebates of
the excess undistributed net operating revenue b the Cit
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Council.
14. After public and such other notice deemed necessar b
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the City Council it is intended that the '
City Council adopt an
ordinance authorizing the equitable adjustment of the 10th & oak
overpark special benefit assessments, including those which have
already been paid in full as well as those for which amounts are
past due.
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11. It is now necessary to declare rebates of excess net
operating revenues and to direct how such revenues shall be dis-
tributed,
lz, As required by §2,153 of Eugene Code, 1971, for fiscal
year 1984-85, the Downtown Commission has recommended a budget
for Downtown Development District activities with the fallowing
amounts to be levied on real property and businesses and occupa-
tions within the Downtown Development District:
Gross levy upon the ownership
of real property $19o,00a
Gross levy upon businesses and '
occupations $z4z,aoo
It appears necessary for the City to levy the above taxes within
the Downtown Development District and not elsewhere,
13. The City Council has received a legal opinion from
Thorp, Dennett, Purdy, Golden & Jewett, P.C., dated January 16,
1984, addressed to Ms. Carol James, Department of Finance, City
of Eugene, which has interpreted provisions of the Eugene Code,
1971, to assist the City Council and staff in making distribution
of the funds in the 10th & Gak Overpark Fund ~No, 5z1~ . The
interpretations contained in the opinion express the Council's
interpretation of each section of the Eugene Cade, 1971, and
define the obligations of the City to affected ersons and ro --
P A p
erty within the Downtown Development District as of June 30,
1984 ,
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THE CITY GF EUGENE DGES QRDAIN AS FCLLaWS:
Section 1. The City Council hereby approves and adopts the
findings set forth above.
Section 2. Effective July ~., 1984 , a gross tax of $190 , 000
outside the Oregon constitutional 6~ limitation is hereby levied
and assessed on the ownership of real property within the Down-
town Development District only and not elsewhere for the opera t-
ing expenses of the Downtown Development District July 1, 1984 to
June 30, 1985. The levy is to be spread among the owners of real
property within the Downtown Development District as required by
X3.760 of Eugene Code, 1971.
Section 3.
~1} As of June 30, 1984, in the 10th & Oak Dverpark Fund
~No. 521}, far each fiscal year indicated, there are hereb
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determined to be excess net operating revenues of:
Year Amount
1972 $184 ,174.30
1973 199 , 340.02
1974 140,403,21
1975 80,923.60
1976 65,554.32
1977 54,959.24
1978 44,956.37
1979 271,955.34
1980 222,87$,07
1981 104,484.43
198 2 163 ,183 , 45
1983 79,566.90
1984
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~2} Excess net operating revenues determined under subsec-
tion ~1} of this Section are hereby declared as rebates, T
he
amount thereof equal to the entire debt of the 10th & Oak
overpack Fund ~No. 521} to the Downtown Develo meat District F
p and
{No. 113} shall be paid to the Downtown Develo ment Distri t
P c Fund
~No. 113} to satisfy such debt in fully and then a lied or
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distribute~,_..as_~.pr,o:uided for in Section 4 of this Ordinan
ce. Anv
.remaining excess net operating revenues in the 1Dth & oak
Overpack Fund ~No. 521} shall. be rebated to the res ective owne s
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of property within the 1Dth & Oak Overpack Assessment District on
the same basis as the original 10th & Oak over ark s ecial ben
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fit assessments were made and adjusted b Ordinance Nas. 14615
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1639D, 16658 and 18087, to be a lied as .~
pP provided for ~.n subset
tion ~3} of this Section.
~3} The rebate provided for in subsection ~2} of this Sec-
tion shall be entered as a credit on the lien docket for the
appropriate 10th & qak Overpack special benefit assessments• ro~-
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vided~ however, such credit shall not be entered until such tim
e
as the City Council adopts an ordinance authori~in the ad'ust-
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ment of the 1Dth & qak Overpack special benefit assessments. If
such entry results in a credit balances then such balance shall
be distributed in cash to the persons, or their le al re resen-
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tatives~ who made the previous lflth & qak Over ark s ecial bene-~
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fit assessment payments,
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Section 4.
41} The finance officer shall take all payments to the
Downtown Development District Fund ~No. 113} from the 10th & Oak
Overpark Fund ~No, 521} for such latter Fund's debt payable to
the Downtown Development District Fund tNo. 113} as of June 30,
19$4, and shall segregate the total payments into two amounts.
One amount shall equal the total credits applied against the
gross sales and receipts taxes and/or professional taxes of all
bona fide owner-occupants of property in the 10th & Oak Over ark
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Assessment District pursuant to X3.710 of Eugene Code, 1.97., as
it existed prior to March 12, 1954. The other amount shall e ual
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the total credits applied against the Downtown Development
District special ad valorem taxes pursuant to subparts fie} and
~i} of Section 3.?60 of Eugene Code, 1971, as it existed prior to
March 12, 1984.
. ~2} The amount of payments received by the Downtown
Development District Fund ~No, 113} described in subsection ~1}
of this Sectian equal to the total Downtawn. Development District
special ad valorem tax credits is $772,932.44. This amount shall
be apportioned among and restricted to the owners of those par-
cels which have received partial or no credit for 14th & Oak
overpark special benefit assessments against their Downtown
Development District special ad valorem tax in prior years. The
apportionment shall be based on and restricted to the total addi-
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tional Downtown Development District special ad valorem tax bur~-
den attributable to the owner's parcel because of the Downtown
Development District special ad valorem tax credits allowed since
the creation of the Downtown Development District.
~3} Except as otherwise provided in this subsection, each
owners proportionate share described in subsection ~2} of this
Section shall be distributed in cash to those persons or their
legal representatives who .are determined by the finance officer
to be the owners of those parcels which received partial or nv
credit for 14th & Qak ~verpark special benefit assessments
against their Downtown Development District special ad valorem
tax in any fiscal year for which there is determined to be excess
net operating revenue and a rebate is declared under Section 3 of
this ordinance. Such distributions shall be made for the first
fiscal year in which there were Downtown Development District
special, ad valorem tax credits and each fiscal year thereafter
until the debt of the 10th & oak overpark Fund ~No. 521} to the
Downtown Development District Fund tNo. 113} for Downtown
Development District special ad valorem tax credits is satisfied
in full. The amount distributed to owners, or their legal repre-
sentatives, for each fiscal year shall be limited to their pra~-
portionate share of the excess net operating revenue declared for
such fiscal year. Any distribution provided far under this sub-
section may be applied to offset, in whole or in part, the Down-~
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town Development District special ad valorem tax liability for
1984--85 or any prior year or any other liquidated liability to
the City of any owner otherwise entitled to such distribution.
Affected owners shall be notified of such offsets in the manner
deemed appropriate by the finance officer.
~4} The amount of payments received by the Downtown
Development District Fund ~No. 113} described in subsection ~l}
of this Section equal to the total gross sales and receipts tax
and/or professional tax credits shall be retained and expended
pursuant to the Local Budget Law, ORS Chapter 294.
Section 5. Any unexpended funds remaining in the lath & oak
Overpark Fund ~No. 5~1} after making all payments or transfers as
provided in this Ordinance and after recalculation and adjustment
of the 10th & Oak Overpark special benefit assessment, shall be
applied to the use and benefit of developing, maintaining,
operating or promoting facilities or programs for the downtown
area. Unless authorized otherwise by the City Council, the 14th
& oak Overpark Fund ~No. 521} shall be closed no later than June
34, 1985, and no person who has at any time paid, or owned prop
erty which was subject for the 14th & Oak Overpark special bene~-
fit assessment shall have any claim to any operating revenues or
rental income accruing from the lath & Oak Overpark Off^Street
Parking Facility after June 3D, 1984.
Passed by the City Council this
\\~In day of , 1984
~~CCity Recorder
Approved by the Mayor this
1~.~ day of 1984
Mayor of ;.,fanuf
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