Chapter 2.50
REAL PROPERTY COMPENSATION

Sections:

2.50.010    Purpose.

2.50.020    Definitions.

2.50.030    Claim filing procedures.

2.50.040    City administrator or designee investigation and recommendation.

2.50.050    City council public hearing.

2.50.060    City council action on claim.

2.50.070    Processing fee.

2.50.080    Private cause of action.

2.50.010 Purpose.

This real property compensation chapter is intended to implement the provisions added to Chapter 197 of Oregon Revised Statutes by Ballot Measure 37 (November 2, 2004). These provisions establish a prompt, open, thorough and consistent process that enables property owners an adequate and fair opportunity to present their claims to the city; preserves and protects limited public funds; and establishes a record of the city’s decision capable of circuit court review. (Ord. 278-2004 § 1)

2.50.020 Definitions.

As used in this chapter, the following words and phrases mean:

“City administrator” means the city administrator of the city of Hubbard, or his or her designee.

“Claim” means a claim filed under Ballot Measure 37.

“Exempt land use regulation” means a land use regulation that:

(a) Restricts or prohibits activities commonly and historically recognized as public nuisances under common law;

(b) Restricts or prohibits activities for the protection of public health and safety, such as fire and building codes, health and sanitation regulations, solid or hazardous waste regulations, and pollution control regulations;

(c) Is required in order to comply with federal law;

(d) Restricts or prohibits the use of property for the purpose of selling pornography or performing nude dancing; or

(e) Was enacted prior to the date of acquisition of the property by the owner or a family member of the owner who owned the subject property prior to acquisition or inheritance by the owner, whichever occurred first.

“Family member” includes the wife, husband, son, daughter, mother, father, brother, brother-in-law, sister, sister-in-law, son-in-law, daughter-in-law, mother-in-law, father-in-law, aunt, uncle, niece, nephew, stepparent, stepchild, grandparent, or grandchild of the owner of the property, an estate of any of the foregoing family members, or a legal entity owned by any one or combination of these family members or the owner of the property.

“Land use regulation” includes:

(a) Any statute regulating the use of land or any interest therein;

(b) Administrative rules and goals of the land conservation and development commission;

(c) Local government comprehensive plans, zoning ordinances, land division ordinances, and transportation ordinances;

(d) Metropolitan service district regional framework plans, functional plans, planning goals and objectives; and

(e) Statutes and administrative rules regulating farming and forest practices.

“Owner” means the present owner of the property, or any interest therein.

“Valid claim” means a claim submitted by the owner of real property that is subject to a land use regulation adopted or enforced by the city not more than two years prior to the filing of the claim, that restricts the use of the private real property in a manner that reduces the fair market value of the real property. (Ord. 278-2004 § 2)

2.50.030 Claim filing procedures.

(1) A person seeking to file a claim under this chapter must be the present owner of the property that is the subject of the claim at the time the claim is submitted. The claim shall be filed with the city administrator or designee’s office, or another city office if so designated by the city administrator or designee.

(2) A claim shall include:

(a) The name(s), address(es) and telephone number(s) of all owners, and anyone with any interest in the property, including lien holders, trustees, renters, lessees, and a description of the ownership interest of each;

(b) The address, tax lot, and legal description of the real property that is the subject of the claim, together with a title report issued no more than 30 days prior to the submission of the claim that reflects the ownership interest in the property, or other documentation reflecting sole ownership of the property by the claimant, and the date the property was acquired;

(c) The current land use regulation(s) that allegedly restricts the use of the real property and allegedly causes a reduction in the fair market value of the subject property;

(d) The amount of the claim, based on the alleged reduction in value of the real property supported by an appraisal by an appraiser licensed by the Appraiser Certification and Licensure Board of the State of Oregon; and

(e) Copies of any leases or Covenants, Conditions and Restrictions (CCRs) applicable to the real property, if any, that impose restrictions on the use of the property.

(3) Notwithstanding a claimant’s failure to provide all of the information required by subsection (2) of this section, the city may review and act on a claim. (Ord. 278-2004 § 3)

2.50.040 City administrator or designee investigation and recommendation.

(1) Following an investigation of a claim, the city administrator or designee shall forward a recommendation to the city council that the claim be:

(a) Denied;

(b) Investigated further;

(c) Declared valid, and waive or modify the land use regulation, or compensate the claimant upon completion of an appraisal; or

(d) Evaluated with the expectation of the city acquiring the property by condemnation.

(2) If the city administrator or designee’s recommendation is that a claim be denied, and no elected official informs the city administrator or designee within 14 days that the official disagrees, then the city administrator or designee may deny the claim. If an elected official objects, then the city administrator or designee shall wait an additional seven days to see whether two more elected officials object to the proposed denial. If they do, then the city administrator or designee shall schedule a work session with the city council. If not, the city administrator or designee may deny the claim. (Ord. 278-2004 § 4)

2.50.050 City council public hearing.

The city council shall conduct a public hearing before taking final action on a recommendation from the city administrator or designee. Notice of the public hearing shall be provided to the claimant, to owners and occupants of property within 300 feet of the perimeter of the subject property, and neighborhood groups or community organizations officially recognized by the city council whose boundaries include the subject property. (Ord. 278-2004 § 5)

2.50.060 City council action on claim.

(1) Upon conclusion of the public hearing, and prior to the expiration of 180 days from the date the claim was filed, the city council shall:

(a) Determine that the claim does not meet the requirements of Measure 37 and this chapter, and deny the claim; or

(b) Adopt a resolution with findings therein that supports a determination that the claim is valid and either direct that the claimant be compensated in an amount set forth in the resolution for the reduction in value of the property, or remove, modify or direct that the challenged land use regulation not be applied to the property.

(2) The city council’s decision to waive or modify a land use regulation or to compensate the owner shall be based on whether the public interest would be better served by compensating the owner or by removing or modifying the challenged land use regulation with respect to the subject property.

(3) If the city council removes or modifies the challenged land use regulation, it may, at its discretion, put back into effect, with respect to the subject property, all of the land use regulations in effect at the time the claimant acquired the property.

(4) A decision by the city council to remove or modify a land use regulation shall be personal to the claimant(s) and shall automatically become invalid and void upon the transfer of any ownership interest in the subject property by the claimant to anyone. (Ord. 278-2004 § 6)

2.50.070 Processing fee.

(1) The city administrator or designee shall collect a deposit from each claimant in the amount of $500.00. The city administrator or designee shall maintain a record of the city’s costs incurred in processing the claim, including the costs of obtaining information required by HMC 2.50.030 that the property owner does not provide to the city. Following final action by the city on the claim at the local level, the city administrator or designee shall withdraw from such deposit, as a reimbursement to the city, the amount of such costs and shall send to the property owner an itemized invoice for any excess costs, including staff and legal costs, that the city incurred in reviewing and acting on the claim. If the amount of the deposit exceeds the costs incurred by the city, the unused portion of such deposit shall be refunded to the claimant.

(2) If the property owner does not pay the amount due within 30 days after invoice, then the city shall pursue collection, including filing a lien on the property. (Ord. 278-2004 § 7)

2.50.080 Private cause of action.

If the city council’s approval of a claim by removing or modifying a land use regulation causes a reduction in value of the other property located in the vicinity of the claimant, the neighbor(s) shall have a cause of action in state circuit court to recover from the claimant the amount of the reduction, and shall also be entitled to attorneys’ fees. (Ord. 278-2004 § 8)