3.02.111 Unimproved land.
A. This section shall apply in addition to the other provisions of this code, to local improvement districts meeting one or more criteria in subsection B, below. In case of conflict between the other provisions of this code and this section, the latter shall govern.
B. The purpose of this section is to minimize the risk of default and other financial risk to the City. Prior to the formation of a local improvement district the city engineer or the city engineer’s designee shall cause each proposed district to be evaluated and a written report to be made which identifies whether any of the following criteria apply:
1. whether there are one or more parcels of 10 or more acres or an owner with parcels which in aggregate exceed 10 acres;
2. whether unimproved land bears more than 50 percent of the estimated assessed cost of the improvement;
3. whether property within the district is owned by six or fewer unrelated persons and the estimated cost of improvement is in excess of $100,000;
4. whether the primary purpose of the district is to serve new development rather than serving existing development and infill.
5. whether the local improvement district was initiated by petition pursuant to BC 3.02.035. The finance director shall review the city engineer’s report and determine whether the proposed district meets one or more of the above criteria, and for this reason presents a potential financial risk to the City. If such risk is present, then this section shall apply in addition to the other provisions of this code.
C. A property owner within a proposed district who disputes the finding that the district meets one or more of the criteria in subsection B may appeal the determination within five days to the city manager, who shall render a written decision within seven days. The property owner may appeal the city manager’s decision within five days of receipt of the written decision to the council. The decision of the council shall be final.
D. When a proposed local improvement district meets one or more of the criteria in subsection B, each owner of unimproved land and any other property owner within the proposed local improvement district that may be required by council resolution, shall submit:
1. a financial statement no more than six months old audited by an independent certified public accountant; and
2. one of the following:
a. bank references;
b. the three most recent years’ federal income tax statements; or
c. a credit report from a major credit bureau.
3. proof of payment of all current and prior years real property taxes, interest and penalties collectible by Washington County for their property within the district.
4. cash or a certified check in the amount of $450.00 per owner submitted as a fee to cover the administrative costs for processing the proposed local improvement district. No petition shall be accepted by the City until this fee is submitted. The fee is not refundable unless the local improvement district is formed and assessments are levied, then the fee shall be returned to the petitioner and added to the actual costs of the local improvement district. This fee may be raised or lowered by council resolution based upon a reasonable estimation of the costs to be incurred by the City.
E. Upon the City’s receipt of the information required by subsection D, the financial statement shall be reviewed by a certified public accountant selected by the City for purposes of determining the owner’s financial ability to pay for the estimated assessment in the proposed local improvement district. The City’s certified public accountant shall present an evaluation to the City. The City may prescribe specific standards upon which to base this evaluation. The petition shall not be accepted by the council until all the information required has been received by the City.
F. A feasibility report shall be prepared by the city engineer which shall disclose all relevant financial aspects of the proposed local improvement district which will include:
1. the current value of the property as described in BC 3.02.110 in the proposed local improvement district in comparison to the estimated local improvement district cost;
2. a statement of compliance with BC 3.02.110;
3. a listing of any existing, contemporaneous or expected local improvement district assessments;
4. a statement of whether the property is planned to be resold or leased and the expected timing of these transactions;
5. any other conditions or expected conditions which are likely to affect the value of the land or the security of the City.
G.
1. each applicant required to comply with subsection D, above, who applies for installment payment shall deposit with the City or at a bank for the benefit of the City, cash, an irrevocable letter of credit, or securities from the list in ORS 279.420(5) and administrative rules thereunder, in the amount of ten percent or more of the expected assessment against the property. Any interest or increase in value in posted securities shall be the property of the applicant. If any installment is not paid when due, the City may redeem the securities for the amount due. When the assessments have been paid in full, the City shall release the securities to the applicant. In the event property within a proposed local improvement district qualifies pursuant to an improved property analysis as provided in BC 3.02.110, subsection 4, additional securities shall be provided in the form stated above equal to 100 percent of the difference between the highest value of the property as described in BC 3.02.110, subsections l, 2 or 3, and the estimated improvement costs.
2. Each applicant for payment of an assessment against an unimproved land parcel shall remain liable for the amount financed in the application, regardless of the subsequent disposition of the property. If the property is sold, the original applicant’s liability shall be for any installment debt not satisfied out of foreclosure and sale of the property. The applicant shall be jointly liable with the subsequent owner for any debt not satisfied out of foreclosure and sale proceeds.
3. A subsequent purchaser may submit to the finance director the information required in subsection D of this section. If, upon analysis of this information, the finance director determines that the subsequent purchaser meets the financial criteria, the finance director shall so inform the council. Upon completion of an application for installment payment and deposit of security as provided in subsection F of this section, the council may order the release of the original applicant from liability for the installment debt. [BC 3.02.111, added by Ordinance No. 3466, 9/17/85; amended by Ordinance No. 4794, 12/1/20]