74th OREGON LEGISLATIVE ASSEMBLY--2007 Regular Session
NOTE: Matter within { + braces and plus signs + } in an
amended section is new. Matter within { - braces and minus
signs - } is existing law to be omitted. New sections are within
{ + braces and plus signs + } .
LC 2139
Senate Bill 28
Sponsored by Senator SCHRADER
SUMMARY
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.
Requires urban renewal districts to include school capital
construction and improvement projects in certain urban renewal
plans. Authorizes urban renewal districts to utilize tax
increment attributable to school district taxes on school capital
construction and improvements.
Applies to urban renewal plans adopted or substantially amended
after July 1, 2007.
Takes effect on 91st day following adjournment sine die.
A BILL FOR AN ACT
Relating to school capital projects in urban renewal districts;
creating new provisions; amending ORS 457.085, 457.170 and
457.440; and prescribing an effective date.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 457.085 is amended to read:
457.085. (1) An urban renewal agency shall provide for public
involvement in all stages in the development of an urban renewal
plan.
(2) An urban renewal plan proposed by an urban renewal agency
shall include all of the following:
(a) A description of each urban renewal project to be
undertaken.
(b) An outline for the development, redevelopment,
improvements, land acquisition, demolition and removal of
structures, clearance, rehabilitation or conservation of the
urban renewal areas of the plan.
(c) A map and legal description of the urban renewal areas of
the plan.
(d) An explanation of its relationship to definite local
objectives regarding appropriate land uses and improved traffic,
public transportation, public utilities, telecommunications
utilities, recreational and community facilities and other public
improvements.
(e) An indication of proposed land uses, maximum densities and
building requirements for each urban renewal area.
(f) A description of the methods to be used for the temporary
or permanent relocation of persons living in, and businesses
situated in, the urban renewal area of the plan.
(g) An indication of which real property may be acquired and
the anticipated disposition of said real property, whether by
retention, resale, lease or other legal use, together with an
estimated time schedule for such acquisition and disposition.
(h) If the plan provides for a division of ad valorem taxes
under ORS 457.420 to 457.460 { - , - } { + :
(A) + } The maximum amount of indebtedness that can be issued
or incurred under the plan { - . - } { + ; and
(B) An outline of school capital construction or improvements
anticipated as part of the plan. + }
(i) A description of what types of possible future amendments
to the plan are substantial amendments and require the same
notice, hearing and approval procedure required of the original
plan under ORS 457.095 as provided in ORS 457.220, including but
not limited to amendments:
(A) Adding land to the urban renewal area, except for an
addition of land that totals not more than one percent of the
existing area of the urban renewal area.
(B) Increasing the maximum amount of indebtedness that can be
issued or incurred under the plan.
(j) For a project which includes a public building, an
explanation of how the building serves or benefits the urban
renewal area.
(3) An urban renewal plan shall be accompanied by a report
which shall contain:
(a) A description of physical, social and economic conditions
in the urban renewal areas of the plan and the expected impact,
including the fiscal impact, of the plan in light of added
services or increased population;
(b) Reasons for selection of each urban renewal area in the
plan;
(c) The relationship between each project to be undertaken
under the plan and the existing conditions in the urban renewal
area;
(d) The estimated total cost of each project and the sources of
moneys to pay such costs;
(e) The anticipated completion date for each project;
(f) The estimated amount of money required in each urban
renewal area under ORS 457.420 to 457.460 and the anticipated
year in which indebtedness will be retired or otherwise provided
for under ORS 457.420 to 457.460;
(g) A financial analysis of the plan with sufficient
information to determine feasibility;
(h) A fiscal impact statement that estimates the impact of the
tax increment financing, both until and after the indebtedness is
repaid, upon all entities levying taxes upon property in the
urban renewal area; and
(i) A relocation report which shall include:
(A) An analysis of existing residents or businesses required to
relocate permanently or temporarily as a result of agency actions
under ORS 457.170;
(B) A description of the methods to be used for the temporary
or permanent relocation of persons living in, and businesses
situated in, the urban renewal area in accordance with ORS 35.500
to 35.530; and
(C) An enumeration, by cost range, of the existing housing
units in the urban renewal areas of the plan to be destroyed or
altered and new units to be added.
(4) An urban renewal plan and accompanying report shall be
forwarded to the planning commission of the municipality for
recommendations, prior to presenting the plan to the governing
body of the municipality for approval under ORS 457.095.
(5) An urban renewal plan and accompanying report shall be
forwarded to the governing body of each taxing district affected
by the urban renewal plan and the agency shall consult and confer
with the taxing districts prior to presenting the plan to the
governing body of the municipality for approval under ORS
457.095. Any written recommendations of the governing body of
each taxing district shall be accepted, rejected or modified by
the governing body of the municipality in adopting the plan.
(6) No urban renewal plan shall be carried out until the plan
has been approved by the governing body of each municipality
pursuant to ORS 457.095 and 457.105.
SECTION 2. ORS 457.170 is amended to read:
457.170. An urban renewal agency may plan or undertake any
urban renewal project to carry out an approved urban renewal
plan. In planning or undertaking an urban renewal project, the
urban renewal agency has the power:
(1) To carry out any work or undertaking and exercise any
powers which a housing authority is authorized to perform or
exercise under ORS 456.055 to 456.235, subject to the provisions
of this chapter provided, however, that ORS 456.155 and 456.160
do not limit the power of an agency in event of a default by a
purchaser or lessee of land in an urban renewal plan to acquire
property and operate it free from the restrictions in those
sections.
(2) To carry out any rehabilitation or conservation work in an
urban renewal area.
(3) To acquire real property, by condemnation if necessary,
when needed to carry out the plan.
(4) To clear any areas acquired, including the demolition,
removal or rehabilitation of buildings and improvements.
(5) To install, construct or reconstruct streets, utilities and
site improvements in accordance with the urban renewal plan.
(6) To carry out plans for a program of the voluntary repair
and rehabilitation of buildings or other improvements in an urban
renewal area in accordance with the urban renewal plan.
(7) To assist in relocating persons living in, and property
situated in, the urban renewal area in accordance with the
approved urban renewal plan and to make relocation payments.
(8) To dispose of, including by sale or lease, any property or
part thereof acquired in the urban renewal area in accordance
with the approved urban renewal plan.
(9) To plan, undertake and carry out neighborhood development
programs consisting of urban renewal project undertakings in one
or more urban renewal areas which are planned and carried out on
the basis of annual increments in accordance with the provisions
of this chapter for planning and carrying out urban renewal
plans.
{ + (10) To enter into an intergovernmental agreement with
any school district within the urban renewal district for:
(a) School capital construction or improvement projects in
accordance with the approved urban renewal plan; or
(b) The administration of the special urban renewal agency fund
for school capital construction or improvement projects under ORS
457.440. + }
{ - (10) - } { + (11) + } To accomplish a combination of
the things listed in this section to carry out an urban renewal
plan.
SECTION 3. ORS 457.440 is amended to read:
457.440. During the period specified under ORS 457.450:
(1) The county assessor shall determine the amount of funds to
be raised each year for urban renewal within the county levied by
taxing districts in accordance with section 1c, Article IX of the
Oregon Constitution, and ORS 457.420 to 457.460.
(2) Not later than July 15 of each tax year, each urban renewal
agency shall determine and file with the county assessor a notice
stating the amount of funds to be raised for each urban renewal
area as follows:
(a) If the municipality that activated the urban renewal agency
has chosen Option One as provided in ORS 457.435 (2)(a), the
notice shall state that the maximum amount of funds that may be
raised by dividing the taxes under section 1c, Article IX of the
Oregon Constitution, shall be raised for the agency.
(b) If the municipality that activated the urban renewal agency
has chosen Option Two as provided in ORS 457.435 (2)(b), the
notice shall state the amount of funds to be raised by the
special levy.
(c) If the municipality that activated the urban renewal agency
has chosen Option Three as provided in ORS 457.435 (2)(c), the
notice shall state the amount of funds to be raised by special
levy in addition to the amount to be raised by dividing the taxes
as stated in the ordinance adopted under ORS 457.435 (1).
(d) If the plan is not an existing plan, the notice shall state
that the maximum amount of funds that may be raised by dividing
the taxes under section 1c, Article IX of the Oregon
Constitution, shall be raised for the agency.
(3) If a municipality has chosen Option Three pursuant to ORS
457.435, the maximum amount of funds that may be raised for an
urban renewal agency by dividing the taxes as provided in section
1c, Article IX of the Oregon Constitution, may be limited by the
municipality in which the urban renewal agency is located. The
decision of the municipality to limit the amount of funds to be
included in the notice filed under subsection (2) of this section
shall be reflected in the certified statement filed by the urban
renewal agency with the county assessor.
(4) Not later than September 25 of each tax year, the assessor
of any county in which a joint district is located shall provide,
to the assessor of each other county in which the joint district
is located, the assessed values of the property in the joint
district that is located within the county, including the
certified statement value and the increment for each code area
containing any urban renewal area located within the joint
district, and a copy of the notice filed by the urban renewal
agency for the area located within the joint district under
subsection (2) of this section.
(5) The maximum amount of funds that may be raised for an urban
renewal plan by dividing the taxes as provided in section 1c,
Article IX of the Oregon Constitution, shall be computed by the
county assessor as follows:
(a) The county assessor shall compute the total consolidated
billing tax rate for each code area in which an urban renewal
area of the plan is located.
(b) The assessor shall determine the amount of taxes that would
be produced by extending the tax rate computed under paragraph
(a) of this subsection against the increment of each code area.
(c) The total amount determined for all code areas containing
urban renewal areas included within the urban renewal plan is the
maximum amount of funds to be raised for the urban renewal plan
by dividing the taxes.
(6)(a) The maximum amount of funds that may be raised for an
urban renewal agency as determined under subsection (5) of this
section, or the maximum amount, as determined under subsection
(2) of this section, shall be certified by the county assessor to
the tax collector. The tax collector shall include the amount so
certified in the percentage schedule of the ratio of taxes on
property prepared under ORS 311.390 and filed with the county
treasurer. Notwithstanding ORS 311.395 (6), the county treasurer
shall credit the amount to the urban renewal agency and shall
distribute its percentage amount to the urban renewal agency as
determined by the schedule at the times other distributions are
made under ORS 311.395 (7).
(b) The county assessor shall notify the urban renewal agency
of the amounts received under subsection (5) of this section or
amounts received pursuant to the notice provided in subsection
(2) of this section for each urban renewal plan area. Any amounts
received by the urban renewal agency under paragraph (a) of this
subsection shall be attributed to the urban renewal plan in which
the urban renewal area is included, shall be paid into a special
fund of the urban renewal agency for the urban renewal plan and
shall be used to pay the principal and interest on any
indebtedness issued or incurred by the urban renewal agency to
finance or refinance the urban renewal plan { + , except that the
increment for school districts within the urban renewal district
shall be paid into a special fund of the urban renewal agency for
school capital construction or improvement projects and shall be
used to pay the principal and interest on any indebtedness issued
or incurred to finance or refinance school capital construction
or improvement projects in compliance with the urban renewal
plan + }.
(7) Unless and until the total assessed value of the taxable
property in an urban renewal area exceeds the total assessed
value specified in the certified statement, all of the ad valorem
taxes levied and collected upon the taxable property in the urban
renewal area shall be paid into the funds of the respective
taxing districts.
(8) The agency may incur indebtedness, including obtaining
loans and advances in carrying out the urban renewal plan, and
the portion of taxes received under this section may be
irrevocably pledged for the payment of principal of and interest
on the indebtedness.
(9) The Department of Revenue shall by rule establish
procedures for giving notice of amounts to be raised for urban
renewal agencies and for determination of amounts to be raised
and distributed to urban renewal agencies.
(10) The notice required under this section shall serve as the
notice required under ORS 310.060 for the special levy described
under ORS 457.435.
SECTION 4. ORS 457.440, as amended by section 17, chapter 190,
Oregon Laws 2003, is amended to read:
457.440. During the period specified under ORS 457.450:
(1) The county assessor shall determine the amount of funds to
be raised each year for urban renewal within the county levied by
taxing districts in accordance with section 1c, Article IX of the
Oregon Constitution, and ORS 457.420 to 457.460.
(2) Not later than July 15 of each tax year, each urban renewal
agency shall determine and file with the county assessor a notice
stating the amount of funds to be raised for each urban renewal
area as follows:
(a) If the municipality that activated the urban renewal agency
has chosen Option One as provided in ORS 457.435 (2)(a), the
notice shall state that the maximum amount of funds that may be
raised by dividing the taxes under section 1c, Article IX of the
Oregon Constitution, shall be raised for the agency.
(b) If the municipality that activated the urban renewal agency
has chosen Option Two as provided in ORS 457.435 (2)(b), the
notice shall state the amount of funds to be raised by the
special levy.
(c) If the municipality that activated the urban renewal agency
has chosen Option Three as provided in ORS 457.435 (2)(c), the
notice shall state the amount of funds to be raised by special
levy in addition to the amount to be raised by dividing the taxes
as stated in the ordinance adopted under ORS 457.435 (1).
(d) If the plan is not an existing plan, the notice shall state
that the maximum amount of funds that may be raised by dividing
the taxes under section 1c, Article IX of the Oregon
Constitution, shall be raised for the agency.
(3) If a municipality has chosen Option Three pursuant to ORS
457.435, the maximum amount of funds that may be raised for an
urban renewal agency by dividing the taxes as provided in section
1c, Article IX of the Oregon Constitution, may be limited by the
municipality in which the urban renewal agency is located. The
decision of the municipality to limit the amount of funds to be
included in the notice filed under subsection (2) of this section
shall be reflected in the certified statement filed by the urban
renewal agency with the county assessor.
(4) Not later than September 25 of each tax year, the assessor
of any county in which a joint district is located shall provide,
to the assessor of each other county in which the joint district
is located, the assessed values of the property in the joint
district that is located within the county, including the
certified statement value and the increment for each code area
containing any urban renewal area located within the joint
district, and a copy of the notice filed by the urban renewal
agency for the area located within the joint district under
subsection (2) of this section.
(5) The maximum amount of funds that may be raised for an urban
renewal plan by dividing the taxes as provided in section 1c,
Article IX of the Oregon Constitution, shall be computed by the
county assessor as follows:
(a) The county assessor shall compute the total consolidated
billing tax rate for each code area in which an urban renewal
area of the plan is located.
(b) The assessor shall determine the amount of taxes that would
be produced by extending the tax rate computed under paragraph
(a) of this subsection against the increment of each code area.
(c) The total amount determined for all code areas containing
urban renewal areas included within the urban renewal plan is the
maximum amount of funds to be raised for the urban renewal plan
by dividing the taxes.
(6)(a) The maximum amount of funds that may be raised for an
urban renewal agency as determined under subsection (5) of this
section, or the maximum amount, as determined under subsection
(2) of this section, shall be certified by the county assessor to
the tax collector. The tax collector shall include the amount so
certified in the percentage schedule of the ratio of taxes on
property prepared under ORS 311.390 and filed with the county
treasurer. Notwithstanding ORS 311.395 (5), the county treasurer
shall credit the amount to the urban renewal agency and shall
distribute its percentage amount to the urban renewal agency as
determined by the schedule at the times other distributions are
made under ORS 311.395 (6).
(b) The county assessor shall notify the urban renewal agency
of the amounts received under subsection (5) of this section or
amounts received pursuant to the notice provided in subsection
(2) of this section for each urban renewal plan area. Any amounts
received by the urban renewal agency under paragraph (a) of this
subsection shall be attributed to the urban renewal plan in which
the urban renewal area is included, shall be paid into a special
fund of the urban renewal agency for the urban renewal plan and
shall be used to pay the principal and interest on any
indebtedness issued or incurred by the urban renewal agency to
finance or refinance the urban renewal plan { + , except that any
amounts received by the urban renewal agency that are
attributable to the increment for school districts within the
urban renewal district shall be paid into a special fund of the
urban renewal agency for school capital construction or
improvement projects and shall be used to pay the principal and
interest on any indebtedness issued or incurred to finance or
refinance school capital construction or improvement
projects + }.
(7) Unless and until the total assessed value of the taxable
property in an urban renewal area exceeds the total assessed
value specified in the certified statement, all of the ad valorem
taxes levied and collected upon the taxable property in the urban
renewal area shall be paid into the funds of the respective
taxing districts.
(8) The agency may incur indebtedness, including obtaining
loans and advances in carrying out the urban renewal plan, and
the portion of taxes received under this section may be
irrevocably pledged for the payment of principal of and interest
on the indebtedness.
(9) The Department of Revenue shall by rule establish
procedures for giving notice of amounts to be raised for urban
renewal agencies and for determination of amounts to be raised
and distributed to urban renewal agencies.
(10) The notice required under this section shall serve as the
notice required under ORS 310.060 for the special levy described
under ORS 457.435.
SECTION 5. { + The amendments to ORS 457.085, 457.170 and
457.440 by sections 1 to 3 of this 2007 Act apply to urban
renewal plans adopted or substantially amended after July 1,
2007. + }
SECTION 6. { + The amendments to ORS 457.440 by section 4 of
this 2007 Act apply to urban renewal plans adopted or
substantially amended on or after July 1, 2008. + }
SECTION 7. { + This 2007 Act takes effect on the 91st day
after the date on which the regular session of the Seventy-fourth
Legislative Assembly adjourns sine die. + }
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