USA Statutes : oregon
Title : TITLE 24 PUBLIC ORGANIZATIONS FOR COMMUNITY SERVICE
Chapter : Chapter 280 Financing of Local Public Projects and Improvements;
(a) “Local option tax” means a tax described under section 11 (4)
or (7)(c), Article XI of the Oregon Constitution.
(b) “Subdivision” includes only such counties, municipal
corporations, quasi-municipal corporations and civil or political
corporations or subdivisions as are empowered by law to levy ad valorem
property taxes, except that “subdivision” does not include an education
service district.
(2) All ad valorem tax revenues that are received by any
subdivision as a result of a levy under ORS 280.040 to 280.090 and that
are derived from an ad valorem tax levied for purposes other than general
operations shall be:
(a) Kept by the treasurer or other financial officer in a fund that
is separate and distinct from other funds of the subdivision.
(b) Expended only for the purpose for which the taxes were imposed.
[Amended by 1997 c.541 §302; 1999 c.632 §21; 1999 c.1094 §1]Funds may be obtained as prescribed in ORS
280.040 to 280.145 for the purpose of financing the cost of any service,
project, property or equipment which a subdivision has lawful power to
perform, construct or acquire, and of repairs and improvements thereto
and of maintenance and replacement thereof. [Amended by 1967 c.203 §4]Funds may be obtained by a county as prescribed by ORS 280.040
to 280.145 for the purpose of advancing funds to a district established
under ORS 451.410 to 451.610 to finance the cost of any service facility
which the district is authorized to construct, maintain and operate.
[1969 c.646 §17]
A local option tax levied by a community college district or community
college service district may not exceed the amount of reduction in ad
valorem property taxes caused under ORS 310.200 to 310.242. [1997 c.541
§308b]Note: 280.057 was added to and made a part of 280.040 to 280.145 by
legislative action but was not added to any smaller series therein. See
Preface to Oregon Revised Statutes for further explanation.(1)
Upon approval of a majority of the electors of a subdivision in a manner
that qualifies under section 11 (8), Article XI of the Oregon
Constitution, a subdivision may levy local option taxes outside the
limitation imposed by section 11 (3), Article XI, Oregon Constitution,
over the period of time that is authorized by the electors. The amount
levied each year shall be:
(a) Uniform, or substantially so, throughout the period during
which the taxes are levied; or
(b) Computed annually at the same dollar rate per thousand dollars
assessed value in the subdivision, such rate to be declared in and made a
part of the ballot measure to be submitted to the electorate.
(2) Notwithstanding subsection (1) of this section, a subdivision
may certify for extension on the assessment and tax roll under ORS
310.060 a lesser amount of local option tax or a lesser rate of local
option tax if the subdivision decides to collect less than the entire
local option tax authorized by electors. The subdivision shall certify
the lesser amount or rate in the written notice required to be made under
ORS 310.060.
(3)(a) The period of time authorized by the electors shall not
exceed five years or, if the local option tax is for capital projects,
the lesser of:
(A) The expected useful life of the capital projects to be financed
by the tax; or
(B) Ten years.
(b) A local option tax for capital projects does not exceed the
expected useful life of the capital projects financed by the tax if the
estimated weighted average life of the tax does not exceed the estimated
dollar weighted average of the capital assets comprising the capital
projects that are to be financed by the tax. The estimated dollar
weighted average life of capital projects shall be calculated under rules
of the Department of Revenue that ensure that a local option tax for
capital projects is levied for no more than 10 years and no more than the
useful life of the component of the capital projects financed by the tax
that has the longest useful life.
(4)(a) All local option taxes authorized by ORS 280.040 to 280.145
that are for capital projects and that have a term of more than five
years shall be submitted to electors separately from local option taxes
with a term of five years or less.
(b) For purposes of this subsection, “capital project” means the
acquisition of land upon which to construct an improvement, the
acquisition of a building, the acquisition or construction of
improvements, the acquisition of an addition to a building which
increases the square footage of the building, the construction of a
building, the construction of an addition to an existing building which
increases the square footage of the building or the acquisition of and
installation of machinery and equipment which will become an integral
part of a building or an addition to a building, the purchase of
furnishings, equipment or other tangible property with an expected useful
life of more than one year or a combination of those items.
(5) If a ballot measure authorizing a local option tax states that
the taxing district may issue bonds that are payable from that tax, voter
approval of the tax shall constitute voter approval of the bonds, except
that the approval shall not entitle the taxing district to collect a
greater amount of tax than the taxing district would have been entitled
to collect if the ballot measure only authorized local option taxes and
did not authorize bonds. If the local option tax is approved by voters in
a manner that qualifies under section 11 (8), Article XI of the Oregon
Constitution, then the taxing body may issue the bonds in a principal
amount that, together with the estimated interest to be paid on the bonds
while the bonds are outstanding, does not exceed the revenues estimated
to be received from the local option tax levy. A taxing district may
pledge the revenues received from the local option tax and the taxing
district’s full faith and credit to pay bonds authorized under this
subsection. [Amended by 1953 c.134 §2; 1977 c.730 §1; 1979 c.241 §24;
1981 c.804 §79; 1989 c.658 §1; 1997 c.541 §303; 1999 c.21 §6; 1999 c.559
§4; 1999 c.1094 §2]
Subject to ORS 294.305 to 294.565 and the applicable provisions of a
charter, ordinance or resolution of a subdivision, a subdivision may use
revenues raised by a local option tax beyond the period of years during
which the subdivision is authorized to levy the local option tax if the
revenue is used for the purpose authorized by the electors. [2003 c.195
§6]Note: 280.064 was added to and made a part of 280.040 to 280.145 by
legislative action but was not added to any smaller series therein. See
Preface to Oregon Revised Statutes for further explanation.(1) An
election within a county for the purpose of approving a tax levy or tax
rate under ORS 280.060 shall be called by the county court or board of
county commissioners and shall be held on a date specified in ORS 203.085.
(2) An election within a city for the purpose of approving a tax
levy or tax rate under ORS 280.060 or under section 11 (3)(c), Article XI
of the Oregon Constitution, shall be called by the governing body of the
city and held on a date specified in ORS 221.230.
(3) An election within a political subdivision other than a county
or city for the purpose of approving a tax levy or tax rate under ORS
280.060 or under section 11 (3)(c), Article XI of the Oregon
Constitution, shall be called by the governing body of the subdivision
and held on a date specified in ORS 255.345.
(4)(a) The ballot title for a measure authorizing the imposition of
local option taxes shall contain the following additional statement:
___________________________________________________________________________
___
This measure may cause property taxes to increase more than three percent.
___________________________________________________________________________
___
(b) The statements required by this subsection shall not be
considered for purposes of the word count limitations under ORS 250.035.
(c) The statements required by this subsection shall be placed
after the question on the ballot title.
(5) As part of the question, the ballot title for a measure
authorizing the imposition of local option taxes shall state:
(a) The length in years of the period during which the proposed
local option tax will be imposed.
(b) The first fiscal year in which the proposed local option tax
will be imposed.
(6) As part of the question, the ballot title for a measure
authorizing the establishment of a permanent rate limitation shall
contain the following information:
(a) The tax rate per $1,000 of assessed value of the proposed
permanent rate limitation.
(b) The first fiscal year in which the proposed permanent rate
limitation will be imposed.
(7) The ballot title for a measure authorizing the imposition of
local option taxes or a permanent rate limitation shall be in compliance
with ORS 250.036. [Amended by 1983 c.350 §133; 1997 c.541 §304; 1999
c.632 §22] (1)
Notwithstanding any other law and when not inconsistent with or otherwise
provided for in the Oregon Constitution, whenever a proposed local option
tax is submitted to a vote of the people by any subdivision, the
statement in the ballot title for the measure that explains the chief
purpose of the measure and gives reasons for the measure shall state the
total amount of money to be raised by the proposed local option tax, in
dollars and cents. If the statement in the ballot title for the measure
submitted includes an estimated tax impact, it shall be based on the most
current estimate of assessed value from the county assessor. The measure
shall bear the statement: “The estimated tax cost for this measure is an
ESTIMATE ONLY based on the best information available from the county
assessor at the time of estimate.”
(2) Subsection (1) of this section does not apply to a local option
tax described in ORS 280.060 (1)(b). For a levy described in ORS 280.060
(1)(b), an estimate of the total amount of money to be raised for each
year of the proposed local option tax shall be stated in dollars and
cents. If the levy described in ORS 280.060 (1)(b) raises more money than
estimated, the excess collections above that estimate shall be considered
a budget resource for the levy fund in the next fiscal year of the
subdivision. This section has no application to elections and levies with
respect to bonds, for which provision is made in ORS 287.004 to 287.022
and 287.052 to 287.488 or other laws.
(3) The statement or statements required by subsections (1) and (2)
of this section shall be added to and made a part of the 175-word
statement required by ORS 250.035. The number of words contained in the
statements described in subsections (1) and (2) of this section shall not
be included in the 175-word limitation. [Formerly 310.395]Note: 280.075 was added to and made a part of 280.040 to 280.145 by
legislative action but was not added to any smaller series therein. See
Preface to Oregon Revised Statutes for further explanation.The order, resolution or ordinance, as the case may be,
pursuant to which the election required by ORS 280.060 is called and
held, shall set forth:
(1) The purpose for which the funds to be provided by the tax
levies are to be expended.
(2) The estimated total outlay for such purpose.
(3) The period of time authorized by the electors pursuant to ORS
280.060 (3). [Amended by 1977 c.730 §2; 1997 c.541 §305; 1999 c.1094 §3]If more than one proposal to impose local option taxes is
submitted to the electors at the same election, the several ballot
measures shall be voted upon separately. However, not more than four
separate ballot measures proposing local option taxes may be submitted to
the electors under the provisions of ORS 280.040 to 280.145 within a
single calendar year. [Amended by 1979 c.241 §25; 1981 c.804 §80; 1999
c.21 §7] Notwithstanding the
amendments to ORS 280.040, 280.060, 280.070 and 280.080 by sections 302
to 305, chapter 541, Oregon Laws 1997, a serial levy described in section
11 (7)(b), Article XI of the Oregon Constitution, may be levied by the
subdivision, including a school district, as provided in ORS 280.040 to
280.140 (1995 Edition). [1997 c.541 §308; 1999 c.21 §8]Incorporated cities, school districts and
counties of this state may jointly, in such manner as they shall agree
upon, construct, acquire, own, equip, operate and maintain facilities
which will directly aid each participating governmental unit in
performing a duty or duties imposed upon it or aid in exercising a power
or powers conferred upon it, and may appropriate money and may issue
bonds therefor.CITY AND COUNTY ECONOMIC DEVELOPMENT PROJECTS(Cities) As used in ORS
280.410 to 280.485 unless the context requires otherwise:
(1)(a) “Economic development project” includes any properties, real
or personal, used or useful in connection with a revenue producing
enterprise.
(b) “Economic development project” also includes multiple unit
residential housing development, including low income single room
occupancy housing, on land having an assessed valuation of $8 per square
foot or more on September 13, 1975, land within a designated urban
renewal or redevelopment area formed pursuant to ORS chapter 457, or
projects which benefit low or moderate income tenants, or address slum
and blight as defined by the 1974 Housing and Community Development Act.
(c) “Economic development project” shall not include any facility
or facilities designed primarily for the operation, transmission, sale or
distribution of electrical energy.
(2) “Eligible project” means an economic development project found
by the city to meet standards adopted pursuant to ORS 280.410 to 280.485.
(3) “City” means any city with a population of 70,000 or more.
(4) “Cost” as applied to any project includes:
(a) The cost of construction and reconstruction;
(b) The cost of acquisition of property, including rights in land
and other property, both real and personal and improved and unimproved
and the cost of site improvements;
(c) The cost of demolishing, removing or relocating any buildings
or structures on lands so acquired, including the cost of acquiring any
lands to which the buildings or structures may be moved or relocated;
(d) The cost of eligible machinery and equipment and related
financing charges;
(e) The cost of engineering and architectural surveys, plans and
specifications;
(f) The cost of financing charges and interest prior to and during
construction, and if deemed advisable by the city for a period not
exceeding one year after completion of construction; and
(g) The cost of consultant and legal services, other expenses
necessary or incident to determining the feasibility or practicability of
constructing a project, administrative and other expenses necessary or
incident to the construction of the project, including, but not limited
to, costs of relocation and moving expenses according to a project plan
developed by the city, and the financing of the construction of the
project thereof, including reimbursement to any state or other
governmental agency or any lessee of such project for the expenditures
made with the approval of the city that would be costs of the project
under ORS 280.410 to 280.485 had they been made directly by the city.
(5) “Low income” means an income not exceeding 80 percent of the
prevailing median income, based on family size, within the city. [1977
c.772 §2; 1979 c.865 §1; 1981 c.368 §1; 1991 c.560 §1; 2003 c.286 §1] The Legislative Assembly finds that:
(1) Cities with a population of 70,000 or more should be granted
the powers granted to the state by ORS 285B.320 to 285B.371 in order to
reduce substantially within their boundaries the occurrence of economic
conditions requiring more expensive remedial action. There exist in
Oregon’s larger cities substantial adverse economic conditions requiring
immediate remedial action. Such conditions include decreasing
opportunities for gainful employment and lack of sites and facilities for
orderly and necessary retail, commercial and industrial growth.
Amelioration of these conditions is deemed a public purpose and the
acquisition of property for such purpose is deemed a public use. To meet
the needs of these cities it is necessary to grant them full authority to
undertake and complete development and redevelopment projects, and to
assist public and private organizations engaged in such projects,
including the issuance of industrial or other nonrecourse revenue bonds.
It is the purpose of ORS 280.410 to 280.485 to authorize the exercise of
such powers by cities with a population of 70,000 in addition to and not
in lieu of any other powers such cities may possess.
(2) The lack of residential housing in the core and inner areas of
Oregon’s larger cities also is a cause of adverse economic conditions.
Development of housing in such areas can be a factor which contributes to
orderly economic growth by providing decent housing for workers necessary
to attract and promote desirable retail, commercial and industrial
growth. Therefore it is also the purpose of ORS 280.410 to 280.485 to
permit cities with a population of 70,000 or more authority to issue
revenue bonds for housing purposes. The Legislative Assembly, in granting
this authority, intends to increase Oregon’s available housing stock. In
exercising options under that authority, preference should be given by
cities to those projects which add housing units through new construction
or rehabilitation of nonresidential buildings. For low income single room
occupancy housing, however, cities may renovate existing single room
housing, convert nonresidential buildings or construct new buildings.
(3) Cities with a population of 70,000 or more suffer from a lack
of available mortgage financing for the purchase of multiple unit homes
in such cities. There is a need for a low-cost mortgage financing for
multiple unit home purchasers in order to prevent urban decay and blight
and to promote the economic well-being of those cities. [1977 c.772 §1;
1979 c.865 §2; 1981 c.368 §2; 2003 c.286 §2]Prior to exercising any power granted by ORS 280.410 to
280.485 the governing body of a city shall:
(1) Adopt by ordinance standards to determine the eligibility of
economic development projects. In determining such standards, the
governing body shall consider all relevant data without giving priority
to one factor over others. The governing body may consider but is not
limited to the following:
(a) Density of use and potential impact in the area affected by the
proposed project;
(b) City’s ability to support other needed services resulting from
economic development projects;
(c) Effect of economic development projects on balanced economic
development of the city;
(d) Employment opportunities; and
(e) Suitability of various areas in the city for particular types
of economic development projects.
(2) Adopt by ordinance procedures for the acceptance and processing
of applications for consideration of the eligibility of economic
development projects. The ordinance shall state what city officers shall
receive such applications and shall provide for the content of any
application form. [1977 c.772 §3] Low income single room
occupancy housing projects need not meet the standards of an eligible
project and any city standards adopted pursuant to ORS 280.410 to
280.485. [1981 c.368 §6]Single room occupancy rental housing financed
with bonds authorized by ORS 280.410, 280.415, 280.422 to 280.425 and
280.431 must conform to the requirements of the Federal Mortgage Subsidy
Bond Tax Act of 1980. [1981 c.368 §8; 2003 c.286 §8] In carrying out the
provisions of ORS 280.410 to 280.485, a city may:
(1) Acquire by agreement, donation or exercise of eminent domain,
construct and hold in whole or in part any lands, buildings, easements,
water and air rights, improvements to lands and buildings and capital
equipment to be located permanently or used exclusively on such lands or
in such buildings, which are deemed necessary in connection with an
eligible project to be situated within the city and construct,
reconstruct, improve, better and extend such projects, and enter into
contracts therefor.
(2) Sell and convey all properties acquired in connection with
eligible projects, including without limitation the sale and conveyance
thereof subject to any mortgage and the sale and conveyance thereof under
an option granted to the lessee of the eligible project, for such price,
and at such time as the city may determine. However, no sale or
conveyance of such properties shall ever be made in such manner as to
impair the rights of interests of the holder, or holders, of any bonds
issued under the authority of ORS 280.410 to 280.485.
(3) Make or participate in the making of loans, including mortgage
loans, to provide for the construction, substantial rehabilitation or
permanent financing of eligible projects and undertake commitments to
make such loans. Mortgage loans under this section may include loans for
the development of multiple unit residential housing and low income
single room occupancy housing to housing sponsors qualified under
standards adopted by the city pursuant to ORS 280.410 to 280.485.
(4) For mortgage loans under subsection (3) of this section and ORS
280.430 (5), purchase and sell those mortgage loans at public or private
sale; modify or alter such mortgages; foreclose on any such mortgage or
security interest or commence any action to protect or enforce any right
conferred upon the city by any law, mortgage, security, agreement,
contract or other agreement and bid for and purchase property that is
subject to such mortgage or security interest at any foreclosure or other
sale; acquire or take possession of any such property and complete,
administer, pay the principal and interest on any obligations incurred in
connection with such property and dispose of such property in such a
manner as the city determines necessary to protect its interest under ORS
280.410 to 280.485. [1977 c.772 §5; 1979 c.865 §3; 1981 c.368 §3; 2003
c.286 §3]In addition to any other powers granted by law or charter, a
city may:
(1) Make loans from bond proceeds to finance eligible projects or
lease or sublease eligible projects to any person, firm or public or
private corporation or federal or state governmental subdivision or
agency. Such agreement shall provide that:
(a) The borrower or lessee shall operate, repair and maintain the
project which is leased or financed with the loan;
(b) Rents to be charged for the use of the projects shall be fixed,
and revised from time to time as necessary, so as to produce income and
revenue sufficient to provide for the prompt payment when due of
principal of, and interest on, all bonds issued under ORS 280.410 to
280.485;
(c) The loan or lease shall terminate not earlier than the date on
which all bonds and all other obligations incurred by the local agency in
connection with the project or projects leased or financed by the loan
shall be paid in full, including interest, principal and redemption
premiums, if any, or adequate funds for such payment are deposited in
trust;
(d) The lessee’s obligation to pay rent shall not be subject to
cancellation, termination or abatement by the lessee until payment of the
bonds or provision for payments is made;
(e) The lessee shall be required to provide adequate insurance in
the project and insurance against all liability for injury to persons or
property arising from its operation; and
(f) The lessee shall pay all taxes and special assessments levied
upon or with respect to the leased premises and payable during the term
of the lease, during which term ad valorem taxes shall be assessed in the
same amount and to the same extent as though the lessee were the owner of
all real and personal property comprising the project;
(2) Acquire, sell and enter into installment sale contracts for
eligible projects and land sale contracts for eligible projects;
(3) Pledge and assign to the holders of such bonds or a trustee
therefor all or any part of the revenues of one or more eligible projects
owned or to be acquired by the city and define and segregate such
revenues or provide for the payment thereof to a trustee;
(4) Mortgage or otherwise encumber eligible projects in favor of
the holders of such bonds or a trustee therefor. However, in creating any
such mortgages or encumbrances the city can not obligate itself except
with respect to the project;
(5) Purchase, service, sell and make commitments to purchase,
service and sell mortgage loans originated by private lending
institutions for residential housing for owner-occupied dwelling units in
the form of condominium or cooperative interests in multiple unit housing
projects located within the areas specified in ORS 280.410 (1)(b) to
persons whose income does not exceed 150 percent of the prevailing median
income for families within the city, whether or not the projects are
financed in whole or in part pursuant to ORS 280.410 to 280.485. A city
shall equitably allocate the origination and servicing of mortgages under
this subsection to private lending institutions in accordance with
standards adopted by the city;
(6) Make all contracts, execute and deliver all instruments,
including any loan agreements or notes, and do all things necessary or
convenient in the exercise of the powers granted by this section, or in
the performance of its covenants or duties, or in order to secure the
payment of its bonds, including a contract entered into prior to the
construction, acquisition and installation of the eligible project
authorizing the borrower or lessee, subject to such terms and conditions
as the city shall find necessary or desirable and proper, to provide for
the construction, acquisition and installation of the buildings,
improvements and equipment to be included in the project by any means
available to the borrower or lessee and in the manner determined by the
borrower or lessee, and without advertisement for bids as may be required
for the construction, acquisition or installation of other public
facilities;
(7) Perform any other duties that the city considers necessary in
carrying out ORS 280.410 to 280.485, including but not limited to,
efforts to minimize the effects of displacement of residents resulting
from projects financed under ORS 280.425 (3);
(8) Enter into and perform such contracts and agreements with
political subdivisions and state agencies as the respective governing
bodies of the same may consider proper and feasible for or concerning the
planning, construction, installation, lease, or other acquisition, and
the financing of such facilities, which contracts and agreements may
establish a board, commission or such other body as may be deemed proper
for the supervision and general management of the facilities of the
eligible project; and
(9) Accept from any authorized agency of the federal government
loans or grants for the planning, construction, acquisition, leasing, or
other provision of any eligible project, and enter into agreements with
such agency respecting such loans or grants. [1977 c.772 §4; 1979 c.865
§4; 2003 c.286 §4]Low income single room occupancy housing projects shall
not be sold to any purchaser who does not agree as a condition of
purchase to maintain the property as low income single room occupancy
housing for at least 30 years or the term of the mortgage, whichever
period is shorter. [1981 c.368 §7](1) Cities, in purchasing or
servicing or making commitments to purchase or service residential
mortgage loans under ORS 280.430 (5), shall not participate in the
refinancing of housing by existent owners or purchasers of that housing
and shall not allow the assumption of those loans by persons not eligible
for them.
(2) No owner-purchaser shall have more than one mortgage loan under
ORS 280.430 (5) outstanding at any time.
(3) No city shall make or participate in the making of a mortgage
loan to a multiple unit residential housing project under ORS 280.425 (3)
unless the housing sponsor has agreed to not discriminate against any
dwelling unit purchaser or tenant who is a parent or legal guardian with
whom a child resides or is expected to reside. This subsection shall not
apply to housing projects occupied exclusively by households, the heads
of which are 62 years of age or older.
(4) Regardless of the ownership of property used for a multiple
unit housing project financed under ORS 280.425 (3), a city shall, in
financing the project, provide a plan for relocation of displaced persons.
(5) A city shall not finance projects under ORS 280.425 (3) which
result in the conversion of existing occupied residential rental units to
cooperative or condominium projects. [1979 c.865 §2d]Except as provided in ORS 280.425
(2), the city shall not have power to operate any eligible project as a
business or in any manner whatsoever, and nothing in ORS 280.410 to
280.485 authorizes the city to expend any funds on any eligible project,
other than the revenues of such projects, or the proceeds of revenue
bonds issued hereunder, or other funds granted to or appropriated by the
city for the purposes of an eligible project. [1977 c.772 §6; 2003 c.286
§5] (1) A city may authorize
and issue revenue bonds secured by revenues from eligible economic
development projects to finance or refinance in whole or part the cost of
acquisition, construction, reconstruction, improvement or extension of
projects. The bonds shall be identified by project.
(2) A city may also authorize and issue revenue bonds secured by
revenues from mortgage payments by purchasers of units within multiple
unit housing projects. Such housing bonds need not be identified by
project but may include more than one project or purpose within a single
bond issue.
(3) In issuing bonds under this section, the city shall designate
an underwriter, trustee and bond counsel and enter into appropriate
agreements with each to carry out the provisions of ORS 280.410 to
280.485. The bonds shall be issued in the manner prescribed by law and
refunding bonds may be issued to refinance such revenue bonds. [1977
c.772 §7; 1979 c.865 §5]
In determining whether to issue revenue bonds under ORS 280.410 to
280.485, the governing body of the city shall consider:
(1) The bond market for the types of bonds proposed for issuance.
(2) The terms and conditions of the proposed issue.
(3) Whether the borrower, lessee or purchaser is financially
responsible and fully capable and willing to fulfill its obligations
under the loan agreement, agreement of lease or contract, including the
obligation to pay rent in the amounts and at the times required, the
obligation to operate, repair and maintain at its own expense the project
financed, leased or sold, and to serve the purposes of ORS 280.410 to
280.485 and such other responsibilities as may be imposed under the loan
agreement, lease or contract. In determining financial responsibility of
the borrower, lessee or purchaser, consideration shall be given to the
borrower’s, lessee’s or purchaser’s ratio of current assets to current
liabilities, net worth, earning trends, coverage of all fixed charges,
the nature of the industry or business involved, its inherent stability,
any guarantee of the obligations by some other financially responsible
corporation, firm or person, and other factors determinative of the
capability of the borrower, lessee or purchaser, financially and
otherwise, to fulfill its obligations consistently with the purposes of
ORS 280.410 to 280.485.
(4) Such other relevant factors as the governing body considers
necessary to protect the financial integrity of the city. [1977 c.772 §8;
2003 c.286 §6]Bonds authorized under ORS 280.410 to
280.485 shall be issued in accordance with the provisions of the charter
of the city relating to bonds payable from income of revenue producing
facilities. Bond issues may mature at any time within 40 years from the
date of issue, may be sold at public or private sale and shall be sold in
accordance with the provisions of ORS 288.515 to 288.600. [1977 c.772 §9;
1979 c.865 §6; 1981 c.94 §16] The administrative expenses of the
city with respect to bonds issued under ORS 280.410 to 280.485 shall be
charged against bond proceeds or project revenues. [1977 c.772 §10] The city shall have the power, whenever it
deems refunding expedient, to refund any bonds issued under ORS 280.410
to 280.485 by the issuance of new bonds, whether the bonds to be refunded
have or have not matured. The refunding bonds may be exchanged for bonds
to be refunded and the proceeds applied to the purchase, redemption or
payment of such bonds. [1977 c.772 §11] The validity of bonds issued under ORS
280.410 to 280.485 shall not be dependent on or be affected by the
validity or regularity of any proceeding relating to the acquisition,
purchase, lease, construction, installation, reconstruction, improvement,
betterment or extension of the eligible project for which the bonds are
issued. The official action authorizing such bonds may provide that the
bonds shall contain a recital that they are issued pursuant to ORS
280.410 to 280.485 and such recital shall be conclusive evidence of their
validity and of the regularity of their issuance. [1977 c.772 §12] The official action authorizing the
issuance of bonds under ORS 280.410 to 280.485 to finance or refinance in
whole or in part, the acquisition, construction, installation,
reconstruction, improvement, betterment or extension of any eligible
project may contain covenants, notwithstanding that such covenants may
limit the exercises of powers conferred by ORS 280.410 to 280.485 in the
following respects and in such other respects as the city may decide:
(1) The rents to be charged for the use of properties acquired,
constructed, installed, reconstructed, improved, bettered or extended
under the authority of ORS 280.410 to 280.485;
(2) The use and disposition of the revenues of such projects;
(3) The creation and maintenance of sinking funds and the
regulation, use and disposition thereof;
(4) The creation and maintenance of funds to provide for
maintaining the eligible project and replacement of properties
depreciated, damaged, destroyed or condemned;
(5) The purpose or purposes to which the proceeds of sale of bonds
may be applied and the use and disposition of such proceeds;
(6) The nature of mortgages or other encumbrances on the eligible
project made in favor of the holder or holders of such bonds or a trustee
therefor;
(7) The events of default and the rights and liabilities arising
thereon and the terms and conditions upon which the holders of any bonds
may bring any suit or action on such bonds or on any coupons appurtenant
thereto;
(8) The issuance of other or additional bonds or instruments
payable from or constituting a charge against the revenue of the eligible
project;
(9) The insurance to be carried upon the eligible project and the
use and disposition of insurance moneys;
(10) The keeping of books of account and the inspection and audit
thereof;
(11) The terms and conditions upon which any or all of the bonds
shall become or may be declared due before maturity and the terms and
conditions upon which such declaration and its consequences may be waived;
(12) The rights, liabilities, powers and duties arising upon the
breach by the municipality or redevelopment agency of any covenants,
conditions or obligations;
(13) The appointing of and vesting in a trustee or trustees of the
right to enforce any covenants made to secure or to pay the bonds; the
powers and duties of such trustee or trustees, and the limitation of
their liabilities;
(14) The terms and conditions upon which the holder or holders of
the bonds, or the holders of any proportion or percentage of them, may
enforce any covenants made under ORS 280.410 to 280.485;
(15) A procedure by which the terms of any official action
authorizing bonds or of any other contract with bondholders, including
but not limited to an indenture of trust or similar instrument, may be
amended or abrogated, and the amount of bonds the holders of which may
consent thereto, and the manner in which such consent may be given; and
(16) The subordination of the security of any bonds issued under
ORS 280.410 to 280.485 and the payment of principal and interest thereof,
to the extent deemed feasible and desirable by the city, to other bonds
or obligations of the city issued to finance the eligible project or that
may be outstanding when the bonds thus subordinated are issued and
delivered. [1977 c.772 §13] (1) Revenue bonds issued
under ORS 280.410 to 280.485:
(a) Shall not be payable from nor charged upon any funds other than
the revenue pledged to the payment thereof, except as provided in this
section, nor shall the city be subject to any liability thereon. No
holder or holders of such bonds shall ever have the right to compel any
exercise of the taxing power of the city to pay any such bonds or the
interest thereon, nor to enforce payment thereof against any property of
the city except those projects or portions thereof, mortgaged or
otherwise encumbered under the provisions and for the purposes of ORS
280.410 to 280.485.
(b) Shall not constitute a charge, lien or encumbrance, legal or
equitable, upon any property of the city, except those eligible projects,
or portions thereof, mortgaged or otherwise encumbered, under the
provisions and for the purposes of ORS 280.410 to 280.485.
(2) Each bond issued under ORS 280.410 to 280.485 shall recite in
substance that the bond, including interest thereon, is payable solely
from the revenue pledged to the payment thereof, and that no such bond
shall constitute a debt of the city or a lending of the credit of the
city within the meaning of any constitutional or statutory limitation.
However, nothing in ORS 280.410 to 280.485 is intended to impair the
rights of holders of bonds to enforce covenants made for the security
thereof as provided in ORS 280.480. [1977 c.772 §14] Subject to any
contractual limitation binding upon the holders of any issue of revenue
bonds, or a trustee therefor, including but not limited to the
restriction of the exercise of any remedy to a specified proportion or
percentage of such holders, any holder of bonds, or any trustee therefor,
for the equal benefit and protection of all bondholders similarly
situated, may:
(1) By action or proceeding for legal or equitable remedies,
enforce their rights against the city and any of its officers, agents and
employees, and may require and compel the city or any such officers,
agents or employees to perform and carry out its and their duties and
obligations under ORS 280.410 to 280.485 and its and their covenants and
agreements with bondholders;
(2) By action, require the city to account as if it was the trustee
of an express trust;
(3) By action, enjoin any acts or things which may be unlawful or
in violation of the right of the bondholders;
(4) Bring action upon the bonds;
(5) Foreclose any mortgage or lien given under the authority of ORS
280.410 to 280.485 and cause the property standing as security to be sold
under any proceedings permitted by law or equity; and
(6) Exercise any right or remedy conferred by ORS 280.410 to
280.485 without exhausting and without regard to any other right or
remedy conferred by ORS 280.410 to 280.485 or any other law of this
state, none of which rights and remedies is intended to be exclusive of
any other, and each is cumulative and in addition to every other right
and remedy. [1977 c.772 §15; 1979 c.284 §131] A city shall report to the State
Housing Council and the Legislative Assembly, not later than February 1
of each odd-numbered year on the disposition within that city of the
proceeds of bonds issued for the purposes of making mortgage loans under
ORS 280.425 (3) and 280.430 (5). The report shall, as a minimum, identify
the population, income levels and areas served by the housing program,
the length of residence in dwellings purchased under the program and the
degree to which the city considers the program’s initial objectives have
been achieved. The report shall be reviewed by the State Housing Council
and the council shall make its comments on the report known to the city
and the Legislative Assembly. [1979 c.865 §7; 2003 c.286 §9] ORS
280.410 to 280.485 is additional, alternative and supplemental authority
for cities with a population of 70,000 or more and shall not abrogate any
power, right or authority otherwise granted by law or charter to such
cities. [1977 c.772 §16; 2003 c.286 §7](Counties) In addition to,
and not in lieu of, any of the powers granted counties under the laws of
this state, a county may develop and implement a program of economic
development. To do so, a county shall have the power to:
(1) Following public hearings, adopt an economic development plan,
either through its own efforts or in combination with other public bodies
and advisory committees, which plan, if adopted, shall:
(a) Recognize and reflect the need for adequate employment and
income for residents, considering both present and expected future
population levels.
(b) Clearly state community economic goals and provide a detailed
program to carry out those goals.
(c) Be based on an analysis of the present and expected future
economic base, which analysis shall consider, but not be limited to,
natural resources, human resources, industrial and commercial structure,
land use and ownership, public facilities and services, transportation,
housing, availability of capital and regional economic interactions.
(d) Provide industrial and commercial sites suitable for the
expected future amount and type of growth and expansion and appropriate
for their intended purpose, site size and site distribution,
transportation access and available services.
(e) Consider housing in the area and show the availability of
housing is sufficient for the projected workforce increase or include
definitive plans for expanding the housing stock to meet the anticipated
workforce growth.
(f) Stress cost-effectiveness and the need for a timely government
response to private sector development efforts.
(g) Set forth the boundaries the economic development plan
encompasses, if different from county boundaries.
(2) Assemble, hold and develop sites and facilities for industrial
and commercial activities as provided in ORS 271.510 to 271.540, with the
power to make available real property to private or public entities at a
value determined by the county to be its fair market value. [1979 c.182
§1; 1991 c.878 §2]In developing and implementing a plan of economic development
under ORS 280.500, a county shall:
(1) Provide that each city within the plan boundaries may by
resolution of the city governing body become a part of, or exclude itself
from, the economic development plan within the city.
(2) Assure that all city governing bodies wishing to participate
are fairly represented in the development of an economic development plan.
(3) Assure that an economic development plan considers and is
coordinated with the economic development programs of cities, port
districts and other public entities.
(4) Assure that the economic development plan considers and is
coordinated with all relevant local comprehensive plans and planning
efforts. [1979 c.182 §2] When moneys are
received by a county upon condition or with the intent of the receiving
county that the moneys be used for a public purpose revolving loan fund,
the county may dedicate the moneys for the purposes of the revolving loan
fund and payment of the expenses of administering the fund by enacting an
ordinance that:
(1) Establishes a separate fund into which all moneys to be used
for economic development revolving loans or grants may be deposited
together with proceeds, including loan fees and interest, received from
processing and repayment of such loans;
(2) Specifies the public purpose and the scope and limitation of
uses of moneys in the fund; and
(3) Provides for distribution of fund assets if the governing body
of the county determines, after a public hearing, that dissolution of the
fund is in the best interests of the public. [1991 c.332 §1](Lottery Financed Projects)Any economic development program financed with proceeds from the
state lottery authorized by section 4, Article XV of the Oregon
Constitution, and ORS chapter 461 shall have displayed conspicuously on
the site or as part of the program information specifying that the
program is being financed by the state lottery. [Formerly 284.430 and
then 461.710 in 1991]
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