Chapter 3.24
ADVANCE FINANCING OF PUBLIC IMPROVEMENTS
Sections:
3.24.020 Receipt of application.
3.24.040 Public hearing – Notification.
3.24.060 Advance financing district ordinances and agreements.
3.24.070 Advance financed reimbursement.
3.24.080 Calculation of reimbursement – Intervening properties.
3.24.090 Calculation of reimbursement – Future properties.
3.24.100 Interest applied to reimbursements.
3.24.110 Collection of an advance financed reimbursement.
3.24.120 Voluntary imposition of lien.
3.24.130 Disposition of an advance financed reimbursement.
3.24.010 Definitions.
The following words and phrases for the purposes of this chapter and for the purposes of any advance financing agreement entered into pursuant hereto and for any actions taken as authorized pursuant to this chapter or otherwise shall have the meanings set out in this section:
“Advance financing” is a method of recapturing costs by a developer, where such developer installs public improvements, and where such public improvements may be utilized by intervening or future properties.
“Advance financing agreement” means an agreement between a developer and the city, as authorized by the council, which provides for the installation of and payment for advance financed public improvements and which agreement contains improvement guarantees, provisions for reimbursement by the intervening and future properties that may utilize such improvement, inspection guarantees, as determined in the best interest of the public by the council.
“Advance financing district ordinance” means an ordinance adopted by the council designating a public improvement to be an advance financed public improvement and creating an advance financing district and containing provisions for financial reimbursement by intervening and future properties that may utilize the improvement and such other provisions as determined in the best interest of the public by the council. The advance financing district ordinance is neither a public utility district or local improvement district and does not pertain to system development charges.
“City” means the city of Eagle Point, Oregon.
“Council” means the council of Eagle Point, Oregon.
“Developer” means an individual, a partnership, a joint venture, a corporation, a subdivider, a partitioner of land or any other entity, without limitation, who will bear, under the terms of this chapter, the expense of design, construction, purchase, installation, or other expenses associated with the creation of a public improvement. The rights of a developer, created under this chapter, also apply to his or her heirs, successors or assigns. The city of Eagle Point should not be considered a developer for the purposes of this chapter.
“Development” means that real property being developed by the developer and for which property the advance financing district ordinance is adopted.
“Future property” means that real property which has the potential to be served by the installation of oversized or over-capacity public improvements, but does not include the development or intervening property.
“Intervening property” means that real property abutting an advance financed public improvement, but does not include the development or future property.
“Owner” means the fee holder of record of the legal title to the real property in question. Where such real property is being purchased under a recorded land sales contract, then such purchasers shall also be deemed owner(s).
“Public improvement” means the following:
1. The grading, graveling, paving or other surfacing of any street, or opening, laying out, widening, extending, altering, changing the grade of or constructing any street;
2. The construction of sidewalks;
3. The construction or upgrading of any storm sewer or water main;
4. The construction of water pump stations;
5. The construction or upgrading of any flood control dike, dam, structure, or facility;
6. The construction of railroad crossings;
7. Those “local improvements” as provided in any city street, storm water, water or other adopted capital improvement plan, and ORS 223.387 as now written or hereafter amended;
8. Any other public improvement authorized by the council;
9. A public improvement under this chapter shall exclude any improvement by the city as a developer. [Ord. 2005-19 § 1].
3.24.020 Receipt of application.
The council will receive applications for advance financing from developer that have been submitted to the city with the appropriate fee set by this chapter. The fee will be applied for the cost of administrative analysis of the proposed advance financing district, the cost of notifying the property owners, recording costs, and such other costs reasonably associated with processing the application. [Ord. 2005-19 § 2].
3.24.030 City analysis.
Upon receipt of the advance financing application, the city engineer shall make an analysis of the advance financing proposal and shall prepare a report to be submitted to the council for discussion at a public hearing. Such report shall include a map showing the location and front footage of the development and intervening properties, as well as the location and total acreage of all future properties. The report shall also include an estimate of the total cost of the advance financed public improvement. [Ord. 2005-19 § 3].
3.24.040 Public hearing – Notification.
Not less than 10 nor more than 30 days prior to any public hearing being held pursuant to this chapter, the developer and all intervening and future property owners shall be notified of such hearing and the purpose thereof. Such notification shall be accomplished by regular mail or by personal service. If notification is accomplished by mail, notice shall be made on the date that such letter of notification is posted. Failure of any owner to be so notified shall not invalidate or otherwise affect any advance financing district ordinance or the council’s action to approve or not to approve the same. [Ord. 2005-19 § 4].
3.24.050 Public hearing.
Once the city engineer has completed the analysis, an informational public hearing shall be held in which all affected parties and the general public shall be given the opportunity to express their views and ask questions pertaining to the proposed advance financed public improvement. Since advance financed public improvements do not give rise to assessments, the public hearing is for informational purposes only, and is not subject to remonstrances. The council has the sole discretion after the public hearing to decide whether or not an advance financing district ordinance shall be adopted. [Ord. 2005-19 § 5].
3.24.060 Advance financing district ordinances and agreements.
After the public hearing, held pursuant to EPMC 3.24.050, if the council desires to proceed with the advance financed public improvement, it shall adopt an advance financing district ordinance. The ordinance shall designate the improvement as an advance financed improvement and provide for advance financed reimbursement by intervening and future property owners pursuant to this chapter. The advance financing district ordinance may instruct the city to enter into an agreement between the developer and the city pertaining to the advance financed improvement, and may, in such agreement, require such guarantee or guarantees as the city deems best to protect the public, intervening and future properties, and may make such other provisions as the council determines necessary and proper.
All agreements entered into must contain and have distributed costs to all future and intervening properties. A copy of the agreement must be filed with the finance officer and city recorder. [Ord. 2005-19 § 6].
3.24.070 Advance financed reimbursement.
An advance financed reimbursement is imposed on all intervening and future properties for projects that utilize an advance financed public improvement district. Such reimbursement is made at the time of utilization of the advance financed public improvement or development application that seeks to use the public improvement. [Ord. 2005-19 § 7].
3.24.080 Calculation of reimbursement – Intervening properties.
A. The advance financed reimbursements, imposed on intervening properties, when future properties are not involved, shall be calculated by dividing the total actual cost of the advance financed public improvement by the front footage or square footage of land from which a fair share value of the project can be assessed to all intervening properties determined by unit cost. The unit cost (cost per foot) is then multiplied by the front footage or square footage of each intervening property. In addition, the city may use any other method of apportioning costs on those properties specially benefited that is just and reasonable. Interest is then applied and calculated as set out in EPMC 3.24.100.
B. When the advance financed improvement includes future properties, then the above calculation will be the same except that the total cost of the improvement shall be reduced by the cost which relates to the oversizing or over capacity of the advance financed improvement.
C. In both subsections A and B of this section and EPMC 3.24.090, advance financing reimbursements for odd-shaped lots shall be individually established and consistent with the benefit received by the lot and the reimbursement required of other lots in the area. If inequities are created through the strict implementation of the above formulas, the council will modify lots impact on a case-by-case basis. [Ord. 2005-19 § 8].
3.24.090 Calculation of reimbursement – Future properties.
The advance financed reimbursement imposed on future properties shall be calculated by dividing the total actual cost of the advance financed public improvement that relates to oversizing or over capacity by the total acreage of all future properties which determines unit cost. The unit cost (cost per acre) is then multiplied by the acreage of each future property. In addition, the city may use any other method of apportioning costs on those properties specially benefited that is just and reasonable. Interest is then applied and calculated as set out in EPMC 3.24.100. [Ord. 2005-19 § 9].
3.24.100 Interest applied to reimbursements.
In both EPMC 3.24.080 and 3.24.090, the reimbursements will be increased by an annual interest rate as set forth by council in the advance financing district ordinance. The interest will be calculated from the date the council adopts the advance financing district ordinance to the date of collection of the reimbursement. [Ord. 2005-19 § 10].
3.24.110 Collection of an advance financed reimbursement.
A. The advance financed reimbursement is immediately due and payable to the city by intervening or future property owners benefiting from the improvement upon their development or redevelopment of their property including approval of permits, modifications, partitions where improvements exceed 25 percent of the assessed value of the property assessed in any one year. If connection is made or construction commenced without the proper permits, then the advance financed reimbursement is immediately due and payable upon the earliest date that any such permit was required.
B. No permit for connection or construction shall be issued until the advance financed reimbursement is paid in full or otherwise processed under the terms of EPMC 3.24.130. Whenever the full and correct advance financed reimbursement has not been paid and collected for any reason, the city shall take all necessary steps to enforce delinquent liens or assessments as provided by law, ordinance or the charter of any governmental unit. [Ord. 2005-19 § 11].
3.24.120 Voluntary imposition of lien.
A. The council may allow financing for an advance financed reimbursement. If such option is allowed, it shall be so stated in the ordinance creating the district. If so allowed, when an advance financed reimbursement is due and collectable, the intervening or future property owner within the city limits may apply, upon forms provided by the city, for the voluntary imposition of a lien upon the parcel for the full amount of the advance financed reimbursement and the payment of that lien in 20 equal semiannual installments, including interest. The applicant must provide a certificate from a licensed title insurance company showing the identity and amount of all other liens already on record against the property and a certificate from the county tax assessor showing the assessed valuation of the property. The city shall not permit a lien greater than that allowed by law. Such property that lies outside the city limits must have the permission of Jackson County in accordance with Oregon law.
B. Upon receipt of such certificates and application, the city shall compute the amount of the advance financed reimbursement and shall report to the finance officer the amount of the advance financed reimbursement, the date upon which the reimbursement is due, the name or names of the applicant/owners and the description of the property; and upon receiving that report, the city administrator shall docket the lien in the docket of liens. From the time that docketing is completed, the city shall have a lien upon that land. That lien shall be enforced in the manner as provided by law. [Ord. 2005-19 § 12].
3.24.130 Disposition of an advance financed reimbursement.
A. Developers shall receive the advance financed reimbursement collected by the city for their advance financed public improvements. Such reimbursements shall be delivered to the developer for a period of 10 years after execution of the advance financing agreement unless extended by EPMC 3.24.120.
B. Payments will be made to the developer by the city within 30 days of receipt of the advance financed reimbursements, and any advance financed reimbursements not paid the developer under the terms of this chapter shall be retained by the city to be used for related system improvements as authorized from time to time by the council.
C. The city shall collect an amount of 10 percent for administrative services performed in collecting and distributing the reimbursements. Such administrative fee shall reasonably reflect the service performed and shall be set in the advance financing district ordinance for the particular development. [Ord. 2005-19 § 13].
3.24.140 Recording.
All advance financing district ordinances and agreements shall be recorded by the city in the official records of the county. The ordinance and agreement shall contain full legal descriptions of the development, intervening properties and future properties. Failure to make such recording shall not affect the legality of an advance financing ordinance or agreement. [Ord. 2005-19 § 14].
3.24.150 Public improvements.
Public improvements installed pursuant to advance financing agreement shall become and remain the sole property of the city pursuant to the advance financing agreement. Advance financed reimbursements, plus interest, not paid to the developers as set forth in EPMC 3.24.130 shall be paid to the city to be used for related system improvement as authorized from time to time by the council. [Ord. 2005-19 § 15].