US Laws, Codes, Statutes & Cases

Chapter 223 — Local Improvements and Works Generally

 

2005 EDITION

 

 

LOCAL IMPROVEMENTS AND WORKS GENERALLY

 

CITIES

 

GENERAL PROVISIONS

 

223.001     Definitions

 

CONDEMNATION FOR CITY IMPROVEMENTS; SPECIAL PROCEDURE

 

223.005     Condemnation for public use within and without city limits

 

223.010     Right of city to enter upon, survey, examine and select property to be condemned

 

223.015     Manner of condemnation; compensation

 

223.020     Scope of condemnation

 

MUNICIPAL CONDEMNATION PROCEEDINGS

 

223.105     Proceedings to condemn property for city improvements when owner and city disagree on price

 

ECONOMIC IMPROVEMENT DISTRICTS

 

223.112     Definitions for ORS 223.112 to 223.132

 

223.114     Economic improvement district; assessment ordinance

 

223.117     Requirements of assessment ordinance

 

223.118     Remonstrance against assessment; exclusion of property

 

223.119     Advisory committee; functions

 

223.122     Effect of urban renewal districts or local improvement districts

 

223.124     Extension of assessment period

 

223.127     Application of certain assessment statutes to economic improvement districts

 

223.129     Expenditure of assessment revenues; liability for unauthorized expenditures

 

223.132     Formation of economic improvement districts as additional power of cities

 

223.141     Definitions for ORS 223.141 to 223.161

 

223.144     Economic improvement district; business license ordinance

 

223.147     Requirements of business license ordinance

 

223.151     Advisory committee; functions

 

223.154     Extension of business licensing period

 

223.157     Expenditure of business license revenues; liability for unauthorized expenditures

 

223.161     Effect of urban renewal districts or local improvement districts

 

FINANCING LOCAL IMPROVEMENTS (BANCROFT BONDING ACT)

 

223.205     Scope and application; validation of bond issues by cities of 100,000 or more

 

223.207     Purpose of ORS 223.208

 

223.208     System development and connection charges of local government subject to Bancroft Act

 

223.210     Right of property owners to apply for installment payment of assessment

 

223.212     Right of educational, religious, fraternal or charitable organizations and public corporations to bond the assessment

 

223.215     Contents of application to pay in installments; computation of installments

 

223.225     Record of application to be kept

 

223.230     Lien docket; interest; priority; public access

 

223.235     Issuance of bonds; limitations

 

223.245     Budget to include bond payments

 

223.260     Sale of bonds; disposition of proceeds from bond sales

 

223.262     Assessment contracts; transfer of contract rights by local government; use of proceeds

 

223.265     Payment of installments; due dates

 

223.270     Procedure for collection on default

 

223.275     Notice to pay; receipts and entries on lien docket

 

223.280     Right of owner to prepay balance and discharge lien

 

223.285     Separate funds kept for moneys received; investments authorized

 

223.290     Payments entered on lien docket; lien discharge

 

223.295     Limit on city indebtedness

 

SYSTEM DEVELOPMENT CHARGES

 

223.297     Policy

 

223.299     Definitions for ORS 223.297 to 223.314

 

223.301     Certain system development charges and methodologies prohibited

 

223.302     System development charges; use of revenues; review procedures

 

223.304     Determination of amount of system development charges; methodology; credit allowed against charge; limitation of action contesting methodology for imposing charge; notification request

 

223.307     Authorized expenditure of system development charges

 

223.309     Preparation of plan for capital improvements financed by system development charges; modification

 

223.311     Deposit of system development charge revenues; annual accounting

 

223.313     Application of ORS 223.297 to 223.314

 

223.314     Establishment or modification of system development charge not a land use decision

 

APPORTIONMENT OF GOVERNMENT ASSESSMENTS UPON PARTITION

 

223.317     Apportionment of special assessment among parcels in subsequent partition of tract

 

223.322     Prorate of unpaid installments

 

223.327     Procedure for equitable apportionment by ordinance or regulation

 

ASSESSMENTS FOR LOCAL IMPROVEMENTS

 

223.387     Description of real property; effect of error in name of owner

 

223.389     Procedure in making local assessments for local improvements

 

223.391     Notice of proposed assessment to owner of affected lot

 

223.393     Estimated and final assessments become liens

 

223.395     Deficit assessments or refunds when initial assessment based on estimated cost

 

223.399     Powers of local government concerning assessments for local improvements

 

223.401     Review of assessment

 

REASSESSMENT

 

223.405     Definitions for ORS 223.405 to 223.485

 

223.410     Authority of governing body to make reassessment

 

223.415     Basis for, amount and method of reassessment

 

223.420     Effect of reassessment; exceptions

 

223.425     Resolution to reassess

 

223.430     Publication of notice of reassessment; contents

 

223.435     Personal notice to each owner; right to file objections

 

223.440     Hearing on objections; revision of reassessment

 

223.445     Reassessment ordinance or resolution

 

223.450     Lien docket entry; crediting prior payments

 

223.455     Right of purchaser at sale under prior assessment

 

223.462     Review of reassessment

 

223.485     Additional reassessment procedure; time limitation

 

METHODS OF ENFORCING LIENS AND COLLECTING ASSESSMENTS

 

223.505     Definitions for ORS 223.505 to 223.595

 

223.510     Authority to sell property for delinquent liens and assessments

 

223.515     Preparation, transmission and contents of delinquent list

 

223.520     Procedure in collecting delinquencies

 

223.523     Notice of sale; publication; personal notice to property owner and occupant

 

223.525     Conduct of foreclosure sale

 

223.530     Title of purchaser

 

223.535     Record of sales; receipts for lien payments

 

223.540     Payment of sale price

 

223.545     Purchase by local government in absence of bids

 

223.550     Certificate of sale; contents

 

223.555     Lien docket entries mandatory

 

223.560     Unsold property reoffered; exceptions

 

223.565     Procedure and conditions of redemption

 

223.570     Execution and contents of deed to purchaser

 

223.575     Legal and evidentiary effect of deed

 

223.580     Grantee of deed entitled to possession

 

223.585     Time limitation on actions to recover sold property

 

223.590     Tender of purchase price in action to recover property

 

223.593     Alternate redemption procedure; cash payment required

 

223.594     Lien for water service to certain real property through single water meter; owner as water user; foreclosure

 

223.595     Validation of prior foreclosure proceedings

 

223.605     Definitions for ORS 223.605 to 223.650

 

223.610     Foreclosure of certain liens by suits in equity

 

223.615     Recovery of attorney fees in foreclosure proceeding

 

223.620     Laws applicable to foreclosure proceedings

 

223.625     Liens which may be included in foreclosure suit

 

223.630     Joinder of parties in interest as defendants

 

223.635     Complaint served on owner; issues tried separately

 

223.640     Allegations of jurisdictional facts

 

223.645     Right of local government to bid at execution sale

 

223.650     Redemption; no deficiency judgment

 

FINANCING OF LOCAL IMPROVEMENTS; REBONDING; REINSTATEMENT; TYPE OF

BONDS ACCEPTED IN PAYMENT OF LIENS; ASSESSMENT OF PUBLIC PROPERTY

 

223.705     Rebonding of unpaid assessments

 

223.710     Rebonding application; form; prerequisites

 

223.715     Payment of rebonded assessment

 

223.720     Amount of lien; priority

 

223.725     Issuance and sale of bonds

 

223.730     Application of proceeds from sale of bonds

 

223.735     Debt limitation of local government not applicable

 

223.740     General provisions applicable

 

223.745     Scope of power granted

 

223.750     Enactment of rulemaking ordinances; effect of irregularities

 

223.755     Reinstatement of delinquent bonded assessments authorized

 

223.760     H.O.L.C. bonds accepted in payment of assessment liens

 

223.765     Bonds accepted as payment for assessment liens

 

223.770     Assessment of public property benefited by improvements

 

223.775     Assessment of property of cemetery authority benefited by certain improvements

 

SPECIAL CITY IMPROVEMENTS; PARKING FACILITIES; STREETS; SIDEWALKS;

AIDS TO WATER COMMERCE

 

223.805     Short title of ORS 223.805 to 223.845

 

223.810     Establishment of motor vehicle parking facilities

 

223.815     Acquisition of property for parking facilities

 

223.820     Planning, constructing and contracting for the operation of or leasing parking facilities

 

223.825     Financing of parking facilities

 

223.830     Service concessions in parking facilities

 

223.835     Fees and regulations of parking facilities

 

223.840     Disposing of property acquired for parking facilities

 

223.845     Limitation on operation of parking facilities; use of revenues after issuance of revenue bonds; disbursement of excess revenues

 

223.851     Special assessment for street lighting, street maintenance and street cleaning; approval by electors

 

223.856     Measure imposing assessments; contents

 

223.861     Basis of assessment

 

223.866     Levy of assessment; manner of collection; effect of nonpayment

 

223.876     Charter authority not affected

 

223.878     Inclusion of property outside city in city assessment for local street improvement

 

223.880     Public roads included in sidewalk improvement district; assessment on property benefited

 

223.882     Acquisition of property by city to aid water commerce

 

223.884     Authority to take property within and without city limits

 

223.886     Loans authorized to finance improvements; security for loans; consent of electors

 

223.888     Authority of city to carry out law

 

223.900     Leasing property to individuals

 

MISCELLANEOUS PROVISIONS

 

223.905     Duration of Public Works Acts

 

223.910     Validation of bonds issued under Public Works Act of 1937

 

223.915     Operation of municipal debt limitations on bonds issued under Public Works Act of 1937

 

223.920     Manner of paying bonds

 

223.925     Power of cities to secure payment of bonds

 

223.930     Streets along city boundaries or partly within and without city

 

223.935     Basis for legalization of road

 

223.940     Proceedings for legalization of roads; report; notice

 

223.945     Compensation for property affected by road legalization

 

223.950     Order under road legalization proceeding

 

GENERAL PROVISIONS

 

      223.001 Definitions. As used in ORS 223.112 to 223.132, 223.205 to 223.295, 223.297 to 223.314, 223.317 to 223.327, 223.387 to 223.399, 223.405 to 223.485, 223.505 to 223.595, 223.605 to 223.650, 223.705 to 223.755, 223.765, 223.770, 223.775 and 223.805 to 223.845, unless the context requires otherwise:

      (1) “Actual cost” has the meaning given the term under ORS 310.140.

      (2) “Capital construction project” means a project for “capital construction,” as defined under ORS 310.140.

      (3)(a) “Estimated assessment” means, with respect to each property to be assessed in connection with a local improvement, the total assessment that, at the time of giving notice of the assessment and the right to object or remonstrate, the local government estimates will be levied against the property following completion of the local improvement. The estimate shall be based on the local government’s estimate at that time of the actual costs of the local improvement and the proposed formula for apportioning the actual costs to the property.

      (b) “Estimated assessment” shall be determined by:

      (A) Excluding from estimated actual costs the estimated financing costs associated with any bonds issued to accommodate the payment of the assessment in installments; and

      (B) Including in estimated actual costs the estimated financing costs associated with interim financing of the local improvement.

      (4) “Final assessment” means, with respect to each property to be assessed in connection with a local improvement, the total assessment levied against the property following completion of the local improvement. The total assessment shall be based on the actual costs of the local improvement and the formula for apportioning the actual costs to the property.

      (5)(a) “Financing” means all costs necessary or attributable to acquiring and preserving interim or permanent financing of a local improvement.

      (b) The costs of financing may include the salaries, wages and benefits payable to employees of the local government to the extent the same are reasonably allocable to the work or services performed by the employees in connection with the financing of a local improvement or any part thereof. However, as a condition to inclusion of any salaries, wages or benefits payable to employees of a local government as financing costs of a local improvement or any part thereof, the local government shall establish a record keeping system to track the actual work done or services performed by each employee on or in connection with such local improvement.

      (c) Financing costs that are to be incurred after the levy of a final assessment may be included in the final assessment based on the local government’s reasonable estimate of the financing costs if the local government first documents the basis for the estimate and makes the documentation available to interested persons on request.

      (6) “Governing body” means the council, commission, board or other controlling body, however designated, in which the legislative powers of a local government are vested.

      (7) “Installment application” means an application filed by a property owner to have a final assessment paid in installments over a period of years.

      (8) “Local government” means a local government as defined in ORS 174.116 that has authority to undertake the acquisition, construction, reconstruction, repair, betterment or extension of a local improvement.

      (9) “Local improvement” has the meaning given the term under ORS 310.140.

      (10) “Lot” means a lot, block or parcel of land.

      (11) “Owner” means the owner of the title to real property or the contract purchaser of real property of record as shown on the last available complete assessment roll in the office of the county assessor.

      (12) “Recorder” means the auditor, recorder, clerk or other person or officer of a local government serving as clerk of the local government or performing the clerical work of the local government, or other official or employee as the governing body of a local government shall designate to act as recorder.

      (13) “Structure” has the meaning given the term under ORS 310.140.

      (14) “Treasurer” means the elected or appointed official of a local government, however designated, charged by law with the responsibility for acting as custodian of and investment officer for the public moneys of the local government. [1991 c.902 §3; 2003 c.802 §2]

 

CONDEMNATION FOR CITY IMPROVEMENTS; SPECIAL PROCEDURE

 

      223.005 Condemnation for public use within and without city limits. Any incorporated city may:

      (1) Appropriate any private real property, water, watercourse and riparian rights to any public or municipal use or for the general benefit and use of the people of the city, including but not limited to appropriation for an aviation field, park, city hall, city buildings, jail, or to protect the city from overflow by freshets.

      (2) Appropriate any real property, water, watercourse and water and riparian rights, including power sites, to any public or municipal use or for the general benefit and use of the people within or without the city, and to build dams, reservoirs and conduits for the purpose of storing and using water to aid in developing the necessary power to generate electricity for the use and benefit of the people within or without the city.

      (3) Condemn for its use private property for the purpose of erecting and maintaining electric lines thereon for the purpose of generating and conveying power to light and heat the city, and to be used and sold by the city for manufacturing, transportation, domestic and other purposes, either within or without the corporate limits of the city, and for the purpose of constructing electrical systems for municipal uses. [Amended by 1971 c.134 §1]

 

      223.010 Right of city to enter upon, survey, examine and select property to be condemned. For the purposes of ORS 223.005, a city may enter upon, survey and examine property in the manner provided by ORS 35.220 and may select any such property or rights for the purpose of constructing any ditch, drain, dam, dike, canal, flume, sewer, reservoir, septic tank, filter bed, sewer form or purifying plant or laying or constructing and maintaining any pipe, sewer, drain, aqueduct, dam, dike, canal, flume, reservoir, septic tank, filter bed, sewer form or purifying plant or other plant, building or electric lines or system for municipal uses, including but not limited to, aviation fields, parks, city hall, city buildings, jails, docks, piers, slips, shore and terminal structures. [Amended by 1971 c.134 §2; 2003 c.477 §4]

 

      223.015 Manner of condemnation; compensation. After selection of such rights and property under ORS 223.010 in such manner as the council provides, the city seeking to make the appropriation may proceed in the manner prescribed by the statutes for the appropriation of land for corporate purposes, and not otherwise, unless otherwise provided by law, to have such property appropriated and the compensation therefor determined and paid. However, the compensation for such condemnation by a city shall be paid by a deposit in the court of an order drawn upon the city treasurer for the amount of compensation.

 

      223.020 Scope of condemnation. Appropriation of property under ORS 223.005 may extend beyond the corporate limits of the city to or along and including any lake, spring, stream or power site.

 

      223.025 [Repealed by 1963 c.297 §1]

 

      223.030 [Repealed by 1963 c.297 §1]

 

      223.035 [Repealed by 1963 c.297 §1]

 

      223.040 [Repealed by 1963 c.297 §1]

 

MUNICIPAL CONDEMNATION PROCEEDINGS

 

      223.105 Proceedings to condemn property for city improvements when owner and city disagree on price. (1) The provisions of this section apply to every city, whether organized under general law or otherwise.

      (2) Whenever the council of any incorporated city deems it necessary to take or damage private property for the purpose of establishing, laying out, extending or widening streets, or other public highways and places within any city, or for rights of way for drains, sewers or aqueducts, or for widening, straightening or diverting channels of streams and the improvement of waterfronts, and the council cannot agree with the owner of the property as to the price to be paid, the council may direct proceedings to be taken under the general laws of this state to procure the same.

 

      223.110 [Repealed by 1971 c.741 §38]

 

ECONOMIC IMPROVEMENT DISTRICTS

 

      223.112 Definitions for ORS 223.112 to 223.132. As used in ORS 223.112 to 223.132, unless the context requires otherwise:

      (1) “Council” means the city council or other controlling body of a city.

      (2) “Economic improvement” means:

      (a) The planning or management of development or improvement activities.

      (b) Landscaping or other maintenance of public areas.

      (c) Promotion of commercial activity or public events.

      (d) Activities in support of business recruitment and development.

      (e) Improvements in parking systems or parking enforcement.

      (f) Any other economic improvement activity for which an assessment may be made on property specially benefited thereby. [1985 c.576 §1; 1991 c.902 §4]

 

      223.114 Economic improvement district; assessment ordinance. (1) A council may enact an ordinance establishing a procedure to be followed by the city in making assessments for the cost of an economic improvement upon the lots which are specially benefited by all or part of the improvement.

      (2) In any ordinance adopted under subsection (1) of this section, a city shall not be authorized to:

      (a) Levy assessments in an economic improvement district in any year that exceed one percent of the real market value of all the real property located within the district.

      (b) Include within an economic improvement district any area of the city that is not zoned for commercial or industrial use.

      (c) Levy assessments on residential real property or any portion of a structure used for residential purposes. [1985 c.576 §2; 1989 c.1018 §3; 1991 c.459 §350; 1991 c.902 §5]

 

      223.115 [Repealed by 1971 c.741 §38]

 

      223.117 Requirements of assessment ordinance. (1) An ordinance adopted under ORS 223.114, shall provide for enactment of an assessment ordinance that:

      (a) Describes the economic improvement project to be undertaken or constructed.

      (b) Contains a preliminary estimate of the probable cost of the economic improvement and the proposed formula for apportioning cost to specially benefited property.

      (c) Describes the boundaries of the district in which property will be assessed.

      (d) Specifies the number of years, to a maximum of five, in which assessments will be levied.

      (e) Contains provision for notices to be mailed or delivered personally to affected property owners that announce the intention of the council to construct or undertake the economic improvement project and to assess benefited property for a part or all of the cost. The notice shall state the time and place of the public hearing required under paragraph (f) of this subsection.

      (f) Provides for a hearing not sooner than 30 days after the mailing or delivery of notices to affected property owners at which the owners may appear to support or object to the proposed improvement and assessment.

      (2) The ordinance shall also:

      (a) Provide that if, after the hearing held under subsection (1)(f) of this section, the council determines that the economic improvement shall be made, the council shall determine whether the property benefited shall bear all or a portion of the cost and shall determine, based on the actual or estimated cost of the economic improvement, the amount of assessment on each lot in the district.

      (b) Require the city recorder or other person designated by the council to prepare the proposed assessment for each lot in the district and file it in the appropriate city office.

      (c) Require notice of such proposed assessment to be mailed or personally delivered to the owner of each lot to be assessed, which notice shall state the amount of the assessment proposed on the property of the owner receiving the notice. The notice shall state the time and place of a public hearing at which affected property owners may appear to support or object to the proposed assessment. The hearing shall not be held sooner than 30 days after the mailing or personal delivery of the notices.

      (d) Provide that the council shall consider such objections and may adopt, correct, modify or revise the proposed assessments.

      (e) Provide that the assessments will not be made and the economic improvement project terminated when written objections are received at the public hearing from owners of property upon which more than 33 percent of the total amount of assessments is levied. [1985 c.576 §3; 1989 c.1018 §4]

 

      223.118 Remonstrance against assessment; exclusion of property. (1) In addition to the requirements listed in ORS 223.117 (2), an assessment ordinance adopted under ORS 223.114 and 223.117 may, at the discretion of the council, provide that:

      (a) When the council receives written objections at the public hearing only from owners of property upon which less than 33 percent of the total amount of assessments is levied, the economic improvement project may be undertaken or constructed, but that assessments shall not be levied on any lot or parcel of property if the owner of that property submitted written objections at the public hearing. Notwithstanding any other provision of law, an owner of property who fails to submit written objections at the public hearing as provided for in the ordinance shall be deemed to have made a specific request for the economic improvement services to be provided during the period of time specified in the assessment ordinance.

      (b) The council, after excluding from assessment property belonging to such owners, shall determine the amount of assessment on each of the remaining lots or parcels in the district.

      (c) Notice of such proposed assessment be mailed or personally delivered to the owner of each lot to be assessed, which notice shall state the amount of the assessment proposed on the property of the owner receiving the notice.

      (2) When assessments are levied against property within an economic improvement district in accordance with an assessment ordinance that contains the provisions described in subsection (1) of this section:

      (a) Any new owner of benefited property in the district or any owner of benefited property who excluded the property from assessment by submitting written objections to the council may subsequently agree to the assessment of the owner’s property in the district. The council shall apportion the costs to the property for the remaining time in which assessments will be levied.

      (b) The assessed property may not be relieved from liability for that assessment.

      (c) If the council considers it necessary to levy assessments upon property in the district for longer than the period of time specified in the assessment ordinance, the council shall enact an ordinance that provides for continued assessments for a specified number of years and grants to property owners in the district the notice and right of remonstrance described in ORS 223.117 (2)(b) to (e) and subsection (1)(a) to (c) of this section. [1991 c.773 §2]

 

      223.119 Advisory committee; functions. An ordinance adopted under ORS 223.114, may require creation, for each economic improvement district, of an advisory committee to allocate expenditure of moneys for economic improvement activities within the scope of ORS 223.112 to 223.132. If an advisory committee is created, the council shall strongly consider appointment of owners of property within the economic improvement district to the advisory committee. An existing association of property owners or tenants may enter into an agreement with the city to provide the proposed economic improvement. [1985 c.576 §4; 1989 c.1018 §5]

 

      223.120 [Repealed by 1971 c.741 §38]

 

      223.122 Effect of urban renewal districts or local improvement districts. The existence of local improvement districts or urban renewal districts in a city does not affect the creation of economic improvement districts under ORS 223.112 to 223.132. [1985 c.576 §5]

 

      223.124 Extension of assessment period. When the council considers it necessary to levy assessments upon property in an economic improvement district for longer than the period of time specified in the assessment ordinance that created the district, the council shall enact an ordinance that provides for continued assessments for a specified number of years and grants to property owners in the district the notice and right of remonstrance described in ORS 223.117 (2)(b) to (e). [1985 c.576 §6]

 

      223.125 [Repealed by 1971 c.741 §38]

 

      223.127 Application of certain assessment statutes to economic improvement districts. (1) ORS 223.387 and 223.391 to 223.395 apply to economic improvement districts created by a city in accordance with ORS 223.112 to 223.132.

      (2) The rights and duties accorded local governments and the owners of property for financing assessments under ORS 223.205 and 223.210 to 223.295 apply to assessments levied upon property in an economic improvement district for financing all or part of the cost of an economic improvement. [1985 c.576 §7; 1991 c.902 §6; 2003 c.802 §3]

 

      223.129 Expenditure of assessment revenues; liability for unauthorized expenditures. (1) A city council shall not expend any moneys derived from assessments levied under ORS 223.112 to 223.132 for any purpose different from the purpose described in the ordinance adopted under ORS 223.114.

      (2) Any public official who expends any moneys derived from assessments levied under ORS 223.112 to 223.132 for any purpose different from the purpose described in an ordinance adopted under ORS 223.114 shall be civilly liable for the return of the moneys by suit of the district attorney of the county in which the city is located or by suit of any taxpayer of the city. [1985 c.576 §8]

 

      223.130 [Repealed by 1971 c.741 §38]

 

      223.132 Formation of economic improvement districts as additional power of cities. The authority granted to cities by ORS 223.112 to 223.132, is in addition to any other authority a city may have under state law, its charter or its ordinances to create or finance economic improvement districts. [1989 c.1018 §2]

 

      223.135 [Repealed by 1971 c.741 §38]

 

      223.140 [Repealed by 1971 c.741 §38]

 

      223.141 Definitions for ORS 223.141 to 223.161. As used in ORS 223.141 to 223.161, unless the context requires otherwise:

      (1) “Business license fee” means any fee paid by a person to a city for any form of license that is required by the city in order to conduct business in that city.

      (2) “Conducting business” means to engage in any business, trade, occupation or profession in pursuit of gain including activities carried on by a person through officers, agents and employees as well as activities carried on by a person on that person’s own behalf.

      (3) “Council” means the city council or other controlling body of a city.

      (4) “Economic improvement” means:

      (a) The planning or management of development or improvement activities.

      (b) Landscaping or other maintenance of public areas.

      (c) Promotion of commercial activity or public events.

      (d) Activities in support of business recruitment and development.

      (e) Improvements in parking systems or parking enforcement.

      (f) Any other economic improvement activity for which an assessment may be made on property specially benefited thereby. [1991 c.698 §1]

 

      223.144 Economic improvement district; business license ordinance. (1) A council, on its own motion or after receiving a petition for the formation of an economic improvement district signed by 33 percent or more of persons conducting business within the proposed district, may enact an ordinance establishing a procedure to be followed by the city in imposing a business license fee to raise revenue for the cost of an economic improvement. The business license fee authorized under this subsection may be in the form of a surcharge on an existing business license fee imposed by the city on any business, trade, occupation or profession carried on or practiced in the economic improvement district.

      (2) In any ordinance adopted under subsection (1) of this section, a city shall not be authorized to:

      (a) Include within an economic improvement district any area of the city that is not zoned for commercial or industrial use.

      (b) Impose a business license fee to raise revenue for an economic improvement that does not primarily benefit persons conducting business within the economic improvement district. [1991 c.698 §2]

 

      223.145 [Repealed by 1971 c.741 §38]

 

      223.147 Requirements of business license ordinance. (1) An ordinance adopted under ORS 223.144, shall provide for enactment of a business license fee ordinance that:

      (a) Describes the economic improvement project to be undertaken or constructed.

      (b) Contains a preliminary estimate of the probable cost of the economic improvement.

      (c) Describes the boundaries of the district in which property will be assessed.

      (d) Specifies the number of years, to a maximum of five, in which business license fees for the economic improvement will be imposed.

      (e) Contains provision for notices to be mailed or delivered personally to affected persons that announce the intention of the council to construct or undertake the economic improvement project and to impose a business license fee upon persons conducting business within the district for a part or all of the cost. The notice shall state the time and place of the public hearing required under paragraph (f) of this subsection.

      (f) Provides for a hearing not sooner than 30 days after the mailing or delivery of notices to affected persons at which the persons may appear to support or object to the proposed improvement and business license fee.

      (2) The ordinance shall also:

      (a) Provide that if, after the hearing held under subsection (1)(f) of this section, the council determines that the economic improvement shall be made, the council shall determine whether the businesses benefited shall bear all or a portion of the cost and shall determine, based on the actual or estimated cost of the economic improvement, the amount of the business license fee.

      (b) Require notice of such proposed business license fee to be mailed or personally delivered to each person conducting business within the proposed economic improvement district, which notice shall state the amount of the business license fee. The notice shall state the time and place of a public hearing at which affected persons may appear to support or object to the proposed business license fee. The hearing shall not be held sooner than 30 days after the mailing or personal delivery of the notices.

      (c) Provide that the council shall consider the objections of persons subject to the proposed business license fee and may adopt, correct, modify or revise the proposed business license fee.

      (d) Provide that the business license fee will not be imposed and the economic improvement project terminated when written objections are received at the public hearing from more than 33 percent of persons conducting business within the economic improvement district who will be subject to the proposed business license fee. [1991 c.698 §3]

 

      223.150 [Repealed by 1971 c.741 §38]

 

      223.151 Advisory committee; functions. An ordinance adopted under ORS 223.144, may require creation, for each economic improvement district, of an advisory committee to develop a plan and to allocate expenditure of moneys for economic improvement activities within the scope of ORS 223.141 to 223.161. If an advisory committee is created, the council shall appoint persons conducting business within the economic improvement district to the advisory committee. An existing association of persons conducting business within an economic improvement district may enter into an agreement with the city to provide the economic improvement. [1991 c.698 §4]

 

      223.154 Extension of business licensing period. When the council considers it necessary to impose business license fees upon persons conducting business in an economic improvement district for longer than the period of time specified in the ordinance that created the district, the council shall enact an ordinance that provides for continued business license fees for a specified number of years and grants to persons conducting business in the district the notice and right of remonstrance described in ORS 223.147 (2)(b) to (d). [1991 c.698 §5]

 

      223.155 [Repealed by 1971 c.741 §38]

 

      223.157 Expenditure of business license revenues; liability for unauthorized expenditures. (1) A city council shall not expend any moneys derived from business license fees levied under ORS 223.141 to 223.161 for any purpose different from the purpose described in the ordinance adopted under ORS 223.144.

      (2) Any public official who expends any moneys derived from business license fees levied under ORS 223.141 to 223.161 for any purpose different from the purpose described in an ordinance adopted under ORS 232.144 shall be civilly liable for the return of the moneys by suit of the district attorney of the county in which the city is located or by suit of any taxpayer of the city. [1991 c.698 §6]

 

      223.160 [Repealed by 1971 c.741 §38]

 

      223.161 Effect of urban renewal districts or local improvement districts. (1) The existence of local improvement districts or urban renewal districts in a city does not affect the creation of economic improvement districts under ORS 223.141 to 223.161.

      (2) The authority granted to cities by ORS 223.141 to 223.161 is in addition to any other authority a city may have under state law, its charter or its ordinances to create or finance economic improvement districts. [1991 c.698 §7]

 

      223.165 [Repealed by 1971 c.741 §38]

 

      223.170 [Repealed by 1971 c.741 §38]

 

      223.175 [Repealed by 1971 c.741 §38]

 

FINANCING LOCAL IMPROVEMENTS (BANCROFT BONDING ACT)

 

      223.205 Scope and application; validation of bond issues by cities of 100,000 or more. (1) ORS 223.205 and 223.210 to 223.295 may be cited as the Bancroft Bonding Act.

      (2) The provisions of the Bancroft Bonding Act are not mandatory. Any governmental body having charter provisions, or ordinance provisions authorized by charter, for bonding improvement assessments and selling bonds may follow those provisions or the provisions of the Bancroft Bonding Act, or the provisions of any other statute.

      (3) All bonds issued prior to March 20, 1939, in accordance with the charter provisions of any city which, as of March 20, 1939, has or after that date attains a population of 100,000 or more inhabitants, according to the published federal census, and all action taken and proceedings adopted by a city prior to that date for issuing bonds in accordance with charter provisions are ratified, approved and confirmed. [Amended by 1957 c.103; §1; 1959 c.653 §1; 1965 c.282 §2; 1975 c.642 §1; 1991 c. 902 §7]

 

      223.207 Purpose of ORS 223.208. The Legislative Assembly hereby declares that the purpose of ORS 223.208 and this section is to provide purchasers of homes or multifamily dwellings with Bancroft financing of system development charges as an alternative to absorbing those charges into the long-term permanent financing of their homes. [1977 c.722 §2]

 

      223.208 System development and connection charges of local government subject to Bancroft Act. (1) Subject to subsection (2) of this section, the rights and duties accorded local governments and the owners of property for financing and assessments under ORS 223.205 to 223.775 shall apply to the following:

      (a) A system development charge designed to finance the purchase or development of a public park or recreational facility or the construction, extension or enlargement of a street, community water supply, storm sewer or sewerage or disposal system as defined in ORS 199.464 imposed by a local government as a condition to issuance of any occupancy permit or imposed by a local government at such other time as, by ordinance, it may determine.

      (b) That portion of a connection charge imposed by a local government that is greater than the amount necessary to reimburse the local government for its costs of inspection and installing connections with system mains.

      (2) Notwithstanding ORS 223.230, the financing of system development or connection charges under this section may, at the option of the governing body, be a second lien on real property, which lien shall be inferior only to the mortgage or other security interest held by the lender of the owner’s purchase money. Bonds issued under this subsection shall be issued separately from bonds otherwise issued under ORS 223.205 to 223.775 and shall comply with all applicable federal regulations. [1977 c.722 §3; 1979 c.837 §1; 1983 c.349 §1; 1991 c.902 §8; 1997 c.249 §62; 2001 c.662 §1; 2003 c.802 §4]

 

      223.210 Right of property owners to apply for installment payment of assessment. (1) If the governing body of a local government has proceeded to cause any local improvement to be constructed or made within the corporate limits of the local government, and has determined the final assessment for the local improvement against the property benefited thereby or liable therefor, according to applicable law, the local government shall cause notice of the final assessment to be published. The notice shall identify the local improvement for which the assessment is to be made, each lot to be assessed and the final assessment for each lot. In addition, the notice shall state that the owner of any property to be assessed shall have the right to make application to the local government for payment of the final assessment in installments as provided in this section. A copy of the notice shall be mailed or personally delivered to the owner of each lot to be assessed.

      (2) The owner of any property to be so assessed, at any time within 10 days after notice of final assessment is first published, may file with the recorder a written application to pay:

      (a) The whole of the final assessment in installments; or

      (b) If part of the final assessment has been paid, the unpaid balance of the assessment in installments.

      (3) At the option of the local government, an installment application may be filed more than 10 days after notice of the final assessment is first published. [Amended by 1957 c.103 §2; 1957 c.397 §1; 1967 c.239 §1; 1991 c.902 §9; 2003 c.802 §5]

 

      223.212 Right of educational, religious, fraternal or charitable organizations and public corporations to bond the assessment. Any educational, religious, fraternal or charitable organization or public corporation owning property assessed for its proportionate share of the cost of constructing a local improvement shall have the same right to bond the final assessment therefor and having bonded the final assessment shall be subject to the same duties and liabilities as a natural person bonding an assessment. However, the limitations on the amount of an assessment that may be bonded do not apply to an educational, religious, fraternal or charitable organization or public corporation. The organization or public corporation shall be permitted to bond to the full extent of the assessment. [1957 c.95 §2; 1991 c.902 §10]

 

      223.215 Contents of application to pay in installments; computation of installments. (1)(a) The installment application shall state that the applicant does thereby waive all irregularities or defects, jurisdictional or otherwise, in the proceedings to cause the local improvement for which the final assessment is levied and in the apportionment of the actual cost of the local improvement.

      (b) The application shall provide that the applicant agrees to pay the final assessment over a period of not less than 10 years nor more than 30 years and according to such terms as the governing body of the local government may provide. The governing body may provide that the owner of the assessed property may elect to have the final assessment payable over a period of less than 10 years and according to such terms as the governing body may provide.

      (c) The application shall also provide that the applicant acknowledges and agrees to pay interest at the rate provided by the governing body of the local government on all unpaid assessments, together with an amount, determined by the governing body, sufficient to pay a proportionate part of the cost of administering the bond assessment program and issuing the bonds authorized under ORS 223.235, including but not limited to legal, printing and consultant’s fees.

      (d) The application shall also contain a statement, by lots or blocks, or other convenient description, of the property of the applicant assessed for the improvement.

      (2) In connection with the final assessments for any local improvement, the governing body of the local government may establish a procedure by which an owner of any property to be assessed may irrevocably elect in writing to have the final assessment levied for a number of years less than 10, which shall be determined by the governing body. The written election shall:

      (a) Be signed by the owner or a duly authorized representative of the owner;

      (b) Contain a description of the assessed property and the local improvement for which the assessment is made; and

      (c) Contain a statement by the owner acknowledging that the improvement is a local improvement as described under ORS 223.001 (9), that payment of the final assessment against the properties benefited by the local improvement plus interest may be spread over at least 10 years and that, notwithstanding any provision of law, the owner consents to make payments over a period of less than 10 years and to have the assessment levied on the benefited property accordingly.

      (3) The election under subsection (2) of this section shall be recorded in the bond lien docket for the local improvement to which the assessment relates. From and after the time at which the written election is so recorded, it shall be valid and binding upon all subsequent owners of the property or any part thereof. [Amended by 1957 c.103 §3; 1959 c.653 §2; 1969 c.531 §1; 1971 c.100 §1; 1975 c.320 §1; 1981 c.322 §1; 1985 c.656 §1; 1991 c.902 §11; 2003 c.802 §6]

 

      223.220 [Amended by 1957 c.103 §4; 1957 c.397 §2; 1975 c.642 §2; repealed by 1991 c.902 §121]

 

      223.225 Record of application to be kept. The recorder of the local government shall:

      (1) Keep all applications filed under ORS 223.210 in convenient form for examination. The applications received for each local improvement shall be separate.

      (2) Enter in a book kept for that purpose, under separate heads for each local improvement, the date of filing of each application, the name of the applicant, a description of the property and the amount of the final assessment, as shown in the application. [Amended by 1957 c.103 §5; 1991 c.902 §12; 2003 c.802 §7]

 

      223.230 Lien docket; interest; priority; public access. (1) After expiration of the time for filing application under ORS 223.210, the local government shall enter in a docket kept for that purpose, under separate heads for each local improvement, by name or number, a description of each lot or parcel of land or other property against which the final assessment is made, or which bears or is chargeable for a portion of the actual cost of the local improvement, with the name of the owner and the amount of the unpaid final assessment. The entries shall be made as of the date of initial determination and levy of the final assessment.

      (2) The docket shall stand thereafter as a lien docket as for ad valorem property taxes assessed and levied in favor of the local government against each lot or parcel of land or other property, until paid, for the following:

      (a) For the amounts of the unpaid final assessments therein docketed, with interest on the installments of the final assessments at the rate determined by the governing body of the local government under ORS 223.215; and

      (b) For any additional interest or penalties imposed by the local government with respect to any installments of final assessments that are not paid when due.

      (3) All unpaid final assessments together with accrued and unpaid interest and penalties are a lien on each lot or parcel of land or other property, respectively, in favor of the local government, and the lien shall have priority over all other liens and encumbrances whatsoever.

      (4) For a local improvement district assessment lien or system development charge installment payment contract lien to continue, each local government shall make the appropriate lien record, as prescribed by this section and ORS 223.393, available on hard copy or through an online electronic medium. [Amended by 1957 c.103 §6; 1959 c.653 §3; 1969 c.531 §2; 1975 c.642 §2a; 1981 c.94 §10; 1981 c.322 §2; 1991 c.902 §13; 1995 c.709 §2; 1997 c.840 §2; 2003 c.195 §10; 2005 c.46 §1]

 

      223.235 Issuance of bonds; limitations. (1) When in any local government a bond lien docket is made up, as provided in ORS 223.230, as to the final assessments for any local improvement, the local government shall by ordinance or resolution of the governing body authorize the issue of its bonds pursuant to the applicable provisions of ORS chapter 288 and in accordance with this section.

      (2) The bonds authorized to be issued under this section must be issued in an amount that does not exceed the unpaid balance of all final assessments for the related local