75th OREGON LEGISLATIVE ASSEMBLY--2009 Regular Session
HA to HB 3056
LC 2775/HB 3056-5
HOUSE AMENDMENTS TO
HOUSE BILL 3056
By COMMITTEE ON SUSTAINABILITY AND ECONOMIC DEVELOPMENT
May 4
On page 1 of the printed bill, line 2, after the second
semicolon delete the rest of the line and insert 'amending ORS
457.190, 457.220, 457.420, 457.440, 457.450 and 457.460; and
declaring an emergency.'.
Delete lines 4 through 31 and delete page 2 and insert:
' { + SECTION 1. + } ORS 457.190 is amended to read:
' 457.190. (1) An urban renewal agency may borrow money and
accept advances, loans, grants and any other form of financial
assistance from the federal government, the state, county or
other public body, or from any sources, public or private, for
the purposes of undertaking and carrying out urban renewal
projects.
' (2) An urban renewal agency may do all things necessary or
desirable to secure such financial aid, including obligating
itself in any contract with the federal government for federal
financial aid to convey to the federal government the project to
which the contract relates upon the occurrence of a substantial
default thereunder, in the same manner as a housing authority may
do to secure such aid in connection with blighted area clearance
and housing projects under the Housing Authorities Law.
' (3)(a) Each urban renewal plan adopted by ordinance on or
after July 14, 1997, that provides for a division of taxes
pursuant to ORS 457.440 shall include in the plan the maximum
amount of indebtedness that may be issued or incurred under the
plan. Notwithstanding subsection (1) of this section, if a
maximum amount of indebtedness is not included in the plan, the
urban renewal agency may not issue indebtedness for which taxes
divided under ORS 457.440 are to be pledged to carry out the
plan.
' (b) Each urban renewal plan adopted by ordinance on or after
December 6, 1996, and before July 14, 1997, that provides for a
division of taxes pursuant to ORS 457.440 but does not include a
maximum amount of indebtedness that may be issued or incurred
under the plan shall be changed, by substantial plan amendment
pursuant to ORS 457.220, to include the maximum amount of
indebtedness that may be issued or incurred under the plan before
July 1, 2000. Notwithstanding subsection (1) of this section, if
a maximum amount of indebtedness is not included in the plan on
or before July 1, 2000, the urban renewal agency may not on or
after July 1, 2000, issue indebtedness for which taxes divided
under ORS 457.440 are to be pledged to carry out the plan.
' (c)(A) Each existing urban renewal plan that provides for a
division of taxes pursuant to ORS 457.420 to 457.460 may be
changed by substantial amendment no later than July 1, 1998, to
include a maximum amount of indebtedness that may be issued or
incurred under the plan determined as described in subparagraph
(B) of this paragraph. The additional notices required under ORS
457.120 are not required for an amendment adopted pursuant to
this paragraph.
' (B) The maximum amount of indebtedness that may be issued or
incurred under the plan, as determined for purposes of meeting
the requirements of this paragraph, shall be based upon good
faith estimates of the scope and costs of projects, including but
not limited to increases in costs due to reasonably anticipated
inflation, in the existing urban renewal plan and the schedule
for their completion as completion dates were anticipated as of
December 5, 1996. The maximum amount of indebtedness shall be
specified in dollars and cents.
' (C) Notwithstanding subsection (1) of this section, if a
maximum amount of indebtedness is not adopted for an existing
urban renewal plan as described in this paragraph before July 1,
1998, the urban renewal agency may not collect funds under ORS
457.435.
' { + (4) For an urban renewal plan first approved on or
after the effective date of this 2009 Act, other than for a large
metropolitan plan as defined in section 10 of this 2009 Act, the
initial maximum indebtedness that may be issued or incurred under
the plan shall be established as follows:
' (a) If the total assessed value in the certified statement
under ORS 457.430 is less than or equal to $50 million, the
initial maximum indebtedness may not exceed $50 million.
' (b) If the total assessed value in the certified statement is
more than $50 million and less than or equal to $150 million, the
initial maximum indebtedness may not exceed $50 million plus 50
percent of the total assessed value in the certified statement
that is over $50 million.
' (c) If the total assessed value in the certified statement
exceeds $150 million, the initial maximum indebtedness may not
exceed $100 million, plus 35 percent of the total assessed value
in the certified statement that is over $150 million.
' (d) Beginning July 1, 2010, the dollar limits set forth in
this subsection may be increased on July 1 of each year by the
index used in the urban renewal report to compute the future
costs of projects that will be financed under the plan.
' (e) The limits in this subsection do not apply if the agency
obtains concurrence as provided in section 10 of this 2009
Act. + }
' { + SECTION 2. + } ORS 457.220 is amended to read:
' 457.220. (1) Except for the provisions of
{ - subsection - } { + subsections + } (2) { + and (4) + } of
this section, an urban renewal agency shall carry out the urban
renewal plan approved under ORS 457.095.
' (2) Any substantial change made in the urban renewal plan
shall, before being carried out, be approved and recorded in the
same manner as the original plan.
' (3) No land equal to more than 20 percent of the total land
area of the original plan shall be added to the urban renewal
areas of a plan by amendments.
' { + (4)(a) On or after the effective date of this 2009 Act,
the urban renewal agency may amend a plan that is not a large
metropolitan plan as defined in section 10 of this 2009 Act to
increase the maximum indebtedness.
' (b) The aggregate of all amendments under this subsection may
not exceed 20 percent of the plan's initial maximum indebtedness,
as adjusted pursuant to paragraph (c) of this subsection.
' (c) For purposes of computing the 20 percent limit on
increases in maximum indebtedness, the initial maximum
indebtedness may be increased annually on the anniversary date of
initial approval of the plan by the index used in the urban
renewal report to compute the future costs of projects that will
be financed under the plan, beginning on the later of July 1,
1999, or the first anniversary of plan approval. This increase
may be applied only to the first amendment to the maximum
indebtedness that is made on or after the effective date of this
2009 Act.
' (d) The limits in this subsection do not apply if the agency
obtains concurrence as provided in section 10 of this 2009
Act. + }
' { + SECTION 3. + } ORS 457.420 is amended to read:
' 457.420. (1) Any urban renewal plan may contain a provision
that the ad valorem taxes, if any, levied by a taxing district in
which all or a portion of an urban renewal area is located, shall
be divided as provided in section 1c, Article IX of the Oregon
Constitution, and ORS 457.420 to 457.460. Ad valorem taxes shall
not be divided if there is no provision in the urban renewal plan
for the division.
' (2) No plan adopted after October 3, 1979, shall provide for
a division of ad valorem taxes under subsection (1) of this
section if:
' (a) For municipalities having a population of more than
50,000, according to the latest state census:
' (A) The assessed value for the urban renewal areas of the
plan, when added to the total assessed value previously certified
by the assessor for other urban renewal plans of the municipality
for which a division of ad valorem taxes is provided { + , + }
exceeds a figure equal to 15 percent of the total assessed value
of that municipality, exclusive of any increased assessed value
for other urban renewal areas { + and without regard to
adjustments made pursuant to ORS 457.435 (2)(c) or section 7 or
10 (2) to (5) of this 2009 Act + }; or
' (B) The urban renewal areas of the plan when added to the
areas included in other urban renewal plans of the municipality
providing for a division of ad valorem taxes, exceed a figure
equal to 15 percent of the total land area of that municipality.
' (b) For municipalities having a population of less than
50,000, according to the latest state census:
' (A) The assessed value for the urban renewal areas of the
plan, when added to the total assessed value previously certified
by the assessor for other urban renewal plans of the municipality
for which a division of ad valorem taxes is provided { + , + }
exceeds a figure equal to 25 percent of the total assessed value
of that municipality, exclusive of any increased assessed value
for other urban renewal areas { + and without regard to
adjustments made pursuant to ORS 457.435 (2)(c) or section 7 or
10 (2) to (5) of this 2009 Act + }; or
' (B) The urban renewal areas of the plan, when added to the
areas included in other urban renewal plans of the municipality
providing for a division of ad valorem taxes, exceed a figure
equal to 25 percent of the total land area of that municipality.
' (3) Property may not be included in more than one urban
renewal area.
' { + SECTION 4. + } 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) For plans that are first approved or substantially
amended to increase maximum indebtedness on or after the
effective date of this 2009 Act, the notice must comply with
section 10 of this 2009 Act.
' (e) If the agency limits the amount that may be raised by the
division of taxes, as provided in section 7 of this 2009 Act, the
notice shall comply with section 7 of this 2009 Act. + }
' { - (d) - } { + (f) + } If the plan is not { - an
existing plan - } { + described in paragraph (a), (b), (c), (d)
or (e) of this subsection + }, the notice shall state
{ - that - } the { - maximum - } amount of funds that may be
raised by dividing the taxes { + , which amount may not exceed
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.
' (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.
' { + (11) Notwithstanding any other provision of this
chapter, a city with a population of more than 500,000 on the
effective date of this 2009 Act may, in lieu of its urban renewal
agency, take any actions that an urban renewal agency is
authorized to take under this section and any other actions that
are required to certify, collect, receive, hold and apply tax
revenues raised for the urban renewal agency under section 1c,
Article IX of the Oregon Constitution, and taxes authorized for
the urban renewal agency by section 11 (16), Article XI of the
Oregon Constitution. + }
' { + SECTION 5. + } ORS 457.450 is amended to read:
' 457.450. (1)(a) ORS 457.440 shall first apply to the
assessment roll next following the tax roll referred to in ORS
457.430 if the assessor is provided notice of a plan adoption or
amendment changing area boundaries by the agency prior to January
1 before the tax year to which the plan first applies.
' (b) If the assessor is not provided notice of plan adoption
or amendment changing area boundaries by the agency prior to
January 1 before the tax year to which ORS 457.440 would
otherwise first apply, then ORS 457.440 shall first apply to the
assessment roll next following the assessment roll described in
paragraph (a) of this subsection.
' (2) When the principal and interest on { + the maximum + }
indebtedness { + of an urban renewal plan + } to which the
portion of taxes is irrevocably pledged for payment under ORS
457.435 or 457.440 is fully paid, or it is found that deposits in
the special fund are sufficient to fully pay principal and
interest on { - that - } { + the maximum + } indebtedness
either through direct payment of the indebtedness or by payment
of principal and interest on bonds or notes issued to finance the
indebtedness, the agency shall notify the assessor of that fact.
' (3) All moneys remaining unexpended from the special fund
provided for in ORS 457.435 or 457.440, after payment of all the
principal and interest on indebtedness is provided for, shall be
turned over to the county treasurer by the agency and prorated by
the treasurer back to the taxing districts in which the area, or
part thereof, is located, in proportion to the amount of money in
the fund attributable to each taxing district for the last fiscal
year in which tax levy moneys were paid into the special fund of
the agency under ORS 457.435 or 457.440.
' { + SECTION 6. + } { + Section 7 of this 2009 Act is added
to and made a part of ORS chapter 457. + }
' { + SECTION 7. + } { + (1) If the maximum amount of funds
under ORS 457.440 is not required to pay the principal and
interest on indebtedness incurred for an urban renewal plan, the
urban renewal agency may take formal action to limit collections
under a plan for a single fiscal year, and may notify the county
assessor pursuant to ORS 457.440 (2)(e) to compute the division
of taxes for the urban renewal area using an assessed value that
is equal to the amount specified by the agency. The agency may
not specify an amount that is greater than the increment.
' (2) If the maximum amount of funds under ORS 457.440 is not
required to pay the principal and interest on indebtedness
incurred for an urban renewal plan, the entity authorized to
exercise the powers of an urban renewal agency pursuant to ORS
457.045 may limit future collections under a plan by notifying
the county assessor to permanently increase the amount of the
total assessed value included in the certified statement filed
under ORS 457.430. The assessed value included in the certified
statement may not be subsequently decreased except in connection
with boundary changes.
' (3) Before taking formal action under this section, the urban
renewal agency shall consult and confer with each taxing district
affected by the urban renewal plan. + }
' { + SECTION 8. + } ORS 457.460 is amended to read:
' 457.460. (1) { - An agency shall, by August 1 of each
year, - } { + Not later than January 31 of each year, an urban
renewal agency shall + } prepare a statement on the same basis on
which its financial statements are prepared containing:
' (a) The amount of money received during the preceding fiscal
year under ORS 457.420 to 457.460 and from indebtedness incurred
under ORS 457.420 to 457.460;
' (b) The purposes and amounts for which any money received
under ORS 457.420 to 457.460 and from indebtedness incurred under
ORS 457.420 to 457.460 were expended during the preceding fiscal
year;
' (c) An estimate of moneys to be received during the current
fiscal year under ORS 457.420 to 457.460 and from indebtedness
incurred under ORS 457.420 to 457.460;
' (d) A budget setting forth the purposes and estimated amounts
for which the moneys which have been or will be received under
ORS 457.420 to 457.460 and from indebtedness incurred under ORS
457.420 to 457.460 are to be expended during the current fiscal
year; and
' (e) An analysis of the impact, if any, of carrying out the
urban renewal plan on the tax collections for the preceding year
for all taxing districts included under ORS 457.430.
' (2) The statement required by subsection (1) of this section
shall be filed with the governing body of the municipality.
Notice shall be published that the statement has been prepared
and is on file with the municipality and the agency and the
information contained in the statement is available to all
interested persons. The notice shall be published once a week for
not less than two successive weeks before { - September 1 - }
{ + March 1 + } of the year { - for - } { + in + } which the
statement is { - required - } { + filed, + } in accordance
with ORS 457.115. The notice shall summarize the information
required under subsection (1)(a) to (d) of this section and shall
set forth in full the information required under subsection
(1)(e) of this section.
' { + SECTION 9. + } { + Section 10 of this 2009 Act is
added to and made a part of ORS chapter 457. + }
' { + SECTION 10. + } { + (1) As used in this section,
unless the context requires otherwise:
' (a) 'Assumed increment' means the assessed value of the
increment in the prior year, increased by the average percentage
increase of the increment, if any, during the three prior years.
' (b) 'Frozen base' means the assessed value of the property
located in an urban renewal area as specified in the certified
statement prepared pursuant to ORS 457.430, without regard to
adjustments made pursuant to subsection (9) of this section or
ORS 457.435 (2)(c) or section 7 of this 2009 Act.
' (c) 'Large metropolitan plan' means a plan for an urban
renewal area by a city with a population of more than 500,000 on
the effective date of this 2009 Act and that is either first
approved on or after the effective date of this 2009 Act or is
substantially amended to increase maximum indebtedness on or
after the effective date of this 2009 Act.
' (d) 'Maximum division of taxes' means 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, as described in ORS 457.440 (5), without regard to
assessed values specified in notices to assessors under this
section or adjustments of the frozen base made pursuant to
subsection (9) of this section or ORS 457.435 (2)(c) or section 7
of this 2009 Act.
' (e) 'Transition amount' means the maximum division of taxes
for a plan in the year in which the plan is first substantially
amended to increase maximum indebtedness on or after the
effective date of this 2009 Act.
' (2)(a) Except as provided in paragraphs (b) and (c) of this
subsection, an urban renewal agency may notify the assessor to
collect the maximum division of taxes for a plan, other than a
large metropolitan plan, that is first approved on or after the
effective date of this 2009 Act.
' (b) Beginning with the later of the eleventh year after the
initial approval of the plan or the first year after the year in
which the maximum division of taxes equals or exceeds 10 percent
of the initial maximum indebtedness in the plan, the agency shall
notify the assessor pursuant to ORS 457.440 (2)(d) to compute the
division of taxes for the urban renewal area using an assessed
value that is the sum of:
' (A) The amount of assessed value the agency estimates will
produce division of tax revenues equal to 10 percent of the
initial maximum indebtedness in the plan; and
' (B) 25 percent of the amount by which the assumed increment
exceeds the assessed value of the increment the agency estimates
will produce division of tax revenues that are equal to 10
percent of the initial maximum indebtedness in the plan.
' (c) Beginning with the first year after the year in which the
division of taxes equals or exceeds 12.5 percent of the initial
maximum indebtedness in the plan, the agency shall notify the
assessor pursuant to ORS 457.440 (2)(d) to compute the division
of taxes for the urban renewal area using an amount of assessed
value that the agency estimates will produce division of tax
revenues equal to 12.5 percent of the initial maximum
indebtedness in the plan.
' (d) After computing the assessed value as required under
paragraph (b) or (c) of this subsection, an urban renewal agency
shall further modify the value if, for reasons other than use of
the assumed increment, the value included in the prior year's
notice to the assessor resulted in division of tax revenues
different from the respective target amounts under paragraphs (b)
and (c) of this subsection. The modification under this paragraph
may not exceed an amount that would result in the difference
between the actual revenues and the target amounts.
' (3)(a) Except as provided in paragraphs (b) and (c) of this
subsection, an urban renewal agency may notify the assessor to
collect the maximum division of taxes for a plan, other than a
large metropolitan plan, that is substantially amended on or
after the effective date of this 2009 Act to increase maximum
indebtedness.
' (b) Beginning with the later of the year after the year in
which the plan is substantially amended or the eleventh year
after the plan was initially approved, when the maximum division
of taxes exceeds 10 percent of the initial maximum indebtedness
in the plan, the agency shall notify the assessor pursuant to ORS
457.440 (2)(d) to compute the division of taxes for the urban
renewal area using an assessed value that is the sum of:
' (A) The amount of assessed value the agency estimates will
produce division of tax revenues equal to the greater of:
' (i) 10 percent of the initial maximum indebtedness in the
plan; or
' (ii) The transition amount; and
' (B) 25 percent of the amount by which the assumed increment
exceeds the assessed value of the increment the agency estimates
will produce division of tax revenues that are equal to the
greater of:
' (i) 10 percent of the initial maximum indebtedness in the
plan; or
' (ii) The transition amount.
' (c) Beginning with the first year after the year in which the
division of taxes equals or exceeds the greater of 12.5 percent
of the initial maximum indebtedness in the plan or the transition
amount, the agency shall notify the assessor pursuant to ORS
457.440 (2)(d) to compute the division of taxes for the urban
renewal area using an amount of assessed value that the agency
estimates will produce division of tax revenues equal to the
greater of 12.5 percent of the initial maximum indebtedness in
the plan or the transition amount.
' (d) After computing the assessed value as required under
paragraph (b) or (c) of this subsection, an agency shall further
modify the value if, for reasons other than use of the assumed
increment, the value included in the prior year's notice to the
assessor resulted in division of tax revenues different from the
respective target amounts under paragraphs (b) and (c) of this
subsection. The modification under this paragraph may not exceed
an amount that would result in the difference between the actual
revenues and the target amounts.
' (4)(a) Except as provided in paragraphs (b) to (d) of this
subsection, an urban renewal agency may notify the assessor to
collect the maximum division of taxes for a large metropolitan
plan that is first approved on or after the effective date of
this 2009 Act.
' (b) In the first year after the year in which the maximum
division of taxes exceeds three percent of the initial maximum
indebtedness in the plan, the agency shall notify the assessor
pursuant to ORS 457.440 (2)(d) to compute the division of taxes
for the urban renewal area using an assessed value that is the
sum of:
' (A) The amount of assessed value the agency estimates will
produce division of tax revenues equal to three percent of the
initial maximum indebtedness in the plan; and
' (B) 75 percent of the amount by which the assumed increment
exceeds the assessed value of the increment the agency estimates
will produce division of tax revenues equal to three percent of
the initial maximum indebtedness in the plan.
' (c) Except as provided in paragraph (d) of this subsection,
beginning with the year after the year described in paragraph (b)
of this subsection, the agency shall notify the assessor pursuant
to ORS 457.440 (2)(d) to compute the division of taxes for the
urban renewal area using an assessed value that is the sum of:
' (A) The amount of assessed value the agency estimates will
produce division of tax revenues equal to the greatest amount of
division of tax revenues the agency was permitted to use in any
prior year to compute assessed value under this paragraph or
paragraph (b) of this subsection; and
' (B) 75 percent of the amount by which the assumed increment
exceeds the assessed value of the increment the agency estimates
will produce division of tax revenues equal to the greatest
amount of division of tax revenues the agency was permitted to
use in any prior year under this paragraph or paragraph (b) of
this subsection.
' (d) Beginning with the first year after the year described in
paragraph (c) of this subsection in which the division of tax
revenues equal or exceed 10 percent of the initial maximum
indebtedness in the plan, the agency shall notify the assessor
pursuant to ORS 457.440 (2)(d) to compute the division of taxes
for the urban renewal area using an amount of assessed value the
agency estimates will produce division of tax revenues equal to
10 percent of the initial maximum indebtedness in the plan.
' (e) After computing the assessed value as required under
paragraph (b), (c) or (d) of this subsection, an agency shall
further modify the value if, for reasons other than use of the
assumed increment, the value included in the prior year's notice
to the assessor resulted in division of tax revenues different
from the respective target amounts under paragraphs (b) to (d) of
this subsection. The modification under this paragraph may not
exceed an amount that would result in the difference between the
actual revenues and the target amounts.
' (5)(a) Except as provided in paragraphs (b) to (d) of this
subsection, an urban renewal agency may notify the assessor to
collect the maximum division of taxes for an urban renewal plan
that becomes a large metropolitan plan because it is
substantially amended to increase its maximum indebtedness on or
after the effective date of this 2009 Act.
' (b) In the first year following a year on or after the
effective date of this 2009 Act in which the plan was
substantially amended to increase maximum indebtedness that the
maximum division of taxes exceeds three percent of the maximum
indebtedness in effect for the plan immediately before the plan
was amended, the agency shall notify the assessor pursuant to ORS
457.440 (2)(d) to compute the division of taxes for the urban
renewal area using an assessed value that is the sum of:
' (A) The amount of assessed value the agency estimates will
produce division of tax revenues equal to the greater of:
' (i) The transition amount; or
' (ii) Three percent of the maximum indebtedness in the plan
immediately before the plan was amended to increase maximum
indebtedness; and
' (B) 75 percent of the amount by which the assumed increment
exceeds the assessed value of the increment the agency estimates
will produce division of tax revenues equal to the greater of:
' (i) The transition amount; or
' (ii) Three percent of the maximum indebtedness in the plan
immediately before the plan was amended to increase maximum
indebtedness.
' (c) Except as provided in paragraph (d) of this subsection,
beginning with the year after the year described in paragraph (b)
of this subsection, the agency shall notify the assessor pursuant
to ORS 457.440 (2)(d) to compute the division of taxes for the
urban renewal area using an assessed value that is the sum of:
' (A) The amount of assessed value the agency estimates will
produce division of tax revenues equal to the greatest amount of
division of tax revenues the agency was permitted to use in any
prior year to compute assessed value under this paragraph or
paragraph (b) of this subsection; and
' (B) 75 percent of the amount by which the assumed increment
exceeds the assessed value of the increment the agency estimates
will produce division of tax revenues equal to the greatest
amount of division of tax revenues the agency was permitted to
use in any prior year under this paragraph or paragraph (b) of
this subsection.
' (d) Beginning with the first year after the year described in
paragraph (c) of this subsection in which the division of tax
revenues equal or exceed the greater of the transition amount or
10 percent of the maximum indebtedness in effect for the plan
immediately before the plan was amended to increase maximum
indebtedness, the agency shall notify the assessor pursuant to
ORS 457.440 (2)(d) to compute the division of taxes for the urban
renewal area using an amount of assessed value the agency
estimates will produce division of tax revenues equal to the
greater of the transition amount or 10 percent of the maximum
indebtedness in effect for the plan immediately before the plan
was amended to increase maximum indebtedness.
' (e) After computing the assessed value as required under
paragraph (b), (c) or (d) of this subsection, an agency shall
further modify the value if, for reasons other than use of the
assumed increment, the value included in the prior year's notice
to the assessor resulted in division of tax revenues different
from the respective target amounts under paragraphs (b) to (d) of
this subsection. The modification under this paragraph may not
exceed an amount that would result in the difference between the
actual revenues and the target amounts.
' (6)(a) The initial maximum indebtedness for a large
metropolitan plan that is first approved after the effective date
of this 2009 Act may not exceed the sum of:
' (A) $50 million;
' (B) 50 percent of the amount by which the initial frozen base
for the plan exceeds $50 million but is less than or equal to
$150 million; and
' (C) 35 percent of the amount by which the initial frozen base
exceeds $150 million.
' (b) The dollar amounts in this subsection may be adjusted as
provided in this subsection. Dollar amounts for large
metropolitan plans that are subject to adjustment under this
subsection may be increased on July 1 of any year beginning in
2010, by the percent change in average construction costs since
July 1, 2009, according to the Engineering News-Record Northwest
(Seattle, Washington) Construction Cost Index. The adjusted
dollar amounts may be used only when a large metropolitan plan is
first approved.
' (c) The maximum indebtedness may not be increased by more
than 20 percent of the initial maximum indebtedness of the plan.
' (d) The maximum indebtedness for a plan that becomes a large
metropolitan plan because it is substantially amended on or after
the effective date of this 2009 Act to increase its maximum
indebtedness may not be increased above 20 percent of the maximum
indebtedness in effect for the plan immediately before the first
substantial amendment to increase maximum indebtedness in effect
for the plan that was made on or after the effective date of this
2009 Act.
' (7) Limitations on maximum indebtedness do not apply to the
extent the municipality approving a plan obtains the written
concurrence of taxing districts imposing at least 75 percent of
the amount of taxes imposed under permanent rate limits in the
urban renewal area. For plans that are initially approved or
substantially amended on or after the effective date of this 2009
Act, compliance with this section is determined based on the
amount of taxes imposed under permanent rate limits in the fiscal
year prior to the fiscal year in which the plan is approved or
amended, as applicable.
' (8) For purposes of this section, a plan is treated as
approved or amended on the day on which the municipality took
final action to enact the nonemergency ordinance approving or
amending the plan.
' (9) The amounts shown in the certified statement filed under
ORS 457.430 are not affected by subsections (2) to (5) of this
section. If the increment for an area is less than the assessed
value that the assessor is directed to use under subsections (2)
to (5) of this section, the division of taxes shall be computed
based on the increment and the assessor shall collect the maximum
division of taxes for the plan.
' (10)(a) Notwithstanding subsection (1) of this section, as
used in this subsection, 'transition amount' means the maximum
division of taxes for the plan in the fiscal year that the first
amendment made after June 1, 2008, to increase maximum
indebtedness takes effect.
' (b) Notwithstanding any provisions in this section to the
contrary, an urban renewal plan that was first approved in 1998
and had an initial maximum indebtedness of $224,780,350 may be
substantially amended after June 1, 2008, to increase maximum
indebtedness by not more than $343,719,650.
' (c) Except as provided in paragraph (d) of this subsection,
an urban renewal agency may notify the assessor to collect the
maximum division of taxes for an urban renewal plan described in
paragraph (b) of this subsection that is substantially amended to
increase its maximum indebtedness after June 1, 2008.
' (d) Beginning with the first fiscal year after the fiscal
year in which the first amendment made after June 1, 2008, to
increase maximum indebtedness in the plan described in paragraph
(b) of this subsection takes effect that the maximum division of
taxes exceeds three percent of the maximum indebtedness in effect
for the plan immediately after the first amendment made after
June 1, 2008 to increase maximum indebtedness takes effect, the
agency shall notify the assessor pursuant to ORS 457.440 (2)(d)
to compute the division of taxes for the urban renewal area using
an assessed value that is the sum of:
' (A) The amount of assessed value the agency estimates will
produce division of tax revenues equal to the greater of:
' (i) The transition amount; or
' (ii) Three percent of the maximum indebtedness in effect for
the plan immediately after the first amendment made after June 1,
2008, to increase maximum indebtedness takes effect; and
' (B) 75 percent of the amount by which the assumed increment
exceeds the assessed value of the increment the agency estimates
will produce division of tax revenues equal to the greater of:
' (i) The transition amount; or
' (ii) Three percent of the maximum indebtedness in effect for
the plan immediately after the first amendment made after June 1,
2008, to increase maximum indebtedness takes effect.
' (e)(A) To the extent permitted by law, a plan amendment
described in this subsection shall provide direct economic
benefits to the county in which the plan's urban renewal area is
located in the following amounts:
' (i) If the plan is substantially amended to increase maximum
indebtedness by $343,719,650 or more, at least $35,000,000.
' (ii) If the plan is amended to increase maximum indebtedness
by less than $343,719,650, no less than 10.18 percent of any
increase in maximum indebtedness.
' (B) Benefits required under subparagraph (A) of this
paragraph shall be paid as follows:
' (i) $10,000,000 no later than June 30, 2014; and
' (ii) The balance no later than June 30, 2021.
' (11)(a) The Director of the Department of Revenue shall adopt
rules necessary to apportion assessed value among tax code areas
in an urban renewal area for which the urban renewal agency has
notified the assessor pursuant to this section or ORS 457.440
(2)(d) or section 7 of this 2009 Act to compute the division of
taxes.
' (b) The director may adopt any rule necessary or convenient
for the imposition and collection of taxes under this section or
section 7 of this 2009 Act.
' (12) The taxing bodies within the urban renewal area and the
urban renewal agency are not liable for any amount by which
amounts intended to be collected pursuant to this section exceed
actual tax collections. The sole remedy for any shortfall is the
agency's modification of assessed value in subsequent years'
notices as provided in subsections (2)(d), (3)(d), (4)(e) and
(5)(e) of this section. + }
' { + SECTION 11. + } { + This 2009 Act being necessary for
the immediate preservation of the public peace, health and
safety, an emergency is declared to exist, and this 2009 Act
takes effect on its passage. + } ' .
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