Kozak v. City of Bend

217 P.3d 1118, 231 Or. App. 163, 2009 Ore. App. LEXIS 1502
CourtCourt of Appeals of Oregon
DecidedSeptember 30, 2009
Docket06CV0095MA, A134616
StatusPublished

This text of 217 P.3d 1118 (Kozak v. City of Bend) is published on Counsel Stack Legal Research, covering Court of Appeals of Oregon primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kozak v. City of Bend, 217 P.3d 1118, 231 Or. App. 163, 2009 Ore. App. LEXIS 1502 (Or. Ct. App. 2009).

Opinion

*165 HASELTON, J.

Defendant, the City of Bend, appeals a general judgment in which the trial court declared that an ordinance and resolution that created an economic improvement district (EID) within the city and imposed assessments against affected property owners, including plaintiffs, were “null, void and unenforceable.” On appeal, defendant contends that (1) the trial court lacked jurisdiction to issue a declaration concerning the validity of the ordinance because plaintiffs’ exclusive remedy was by writ of review; and (2) the trial court erred in granting plaintiffs summary judgment based on its conclusion that defendant failed to substantially comply with ORS 223.117(l)(a), the statutory requirement that an assessment ordinance describe “the economic improvement project to be undertaken or constructed.” We agree with the trial court that it had jurisdiction to issue a declaration, and we conclude, as an alternative basis for affirmance, that the ordinance failed to comply with another statutory requisite, ORS 223.117(2)(b). 1 Accordingly, we affirm.

The operative facts are not in dispute. Defendant gave notice to affected property owners that it would “hold a public hearing during its regular City Council meeting on October 19, 2005, on the proposal by the Bend Downtowners Association [(the Downtowners)] for the City to create an Economic Improvement District (EID) within the Downtown core as reflected on the attached map.” After that hearing, on November 2, 2005, defendant adopted Ordinance NS-1985 (the ordinance). Five aspects of the ordinance are pertinent to the issues on appeal.

*166 First, the ordinance created the EID. Specifically, the ordinance provided:

“The City Council of Bend hereby approves and creates the ‘Bend Downtown Economic Improvement District’ for the purpose of promoting within said district economic improvements by planning and/or management of development or improvement activities; by landscaping or other maintenance of the public areas; by promotion of commercial activity or public events; by activities in support of business expansion, and development; and by improvements in parking systems or parking enforcement including but not limited to the provision of private security services for the District.”

The ordinance limited the duration of the EID to three consecutive years beginning January 2006, unless extended in accordance with the requirement of the pertinent statutes.

Second, the ordinance subjected all commercial properties within the EID’s boundaries to an assessment of “$0.11 per square foot per year of real property.” The annual assessments were “expected to be approximately $100,000.00,” which the city council found was the “probable cost” of the funded activities.

Third, the ordinance established the specific boundaries of the EID and the general standards governing assessments. The city council’s findings in the ordinance explained that (1) “[t]he area within the boundaries of the proposed district is zoned commercial”; (2) “[n]o residential real property or any portion of a structure used primarily for residential purposes will be assessed”; and (3) “[t]he rate to be assessed each benefited and assessed property is in proportion to the benefit” that the property may derive from the EID.

Fourth, the ordinance established the procedure for assessing affected property owners and for challenges to assessments. Specifically, the ordinance provided:

“(a) The City Clerk shall promptly mail to property owners within the boundaries of the [EID], a notice identifying the amount of the proposed assessment for each property, and informing the property owner of a meeting scheduled for December 7, 2005, at which the property owners may appear to submit written objections to the assessment.
*167 “(b) The City Council will consider the objections and may adopt, correct, modify or revise the proposed assessment. The Council will not impose the assessment if written remonstrances are received at the public hearing from owners of property upon which more than 33 percent of the total amount of assessment is imposed.
“(c) After the December 7 hearing, if the Council decides to impose the assessment, it shall impose the assessment by resolution, determine whether the properties within the district shall bear all or a portion of the costs of the activities to be funded, and approve the amount of assessment on each lot.”

Fifth, the ordinance required that defendant “shall enter into an agreement with the [Downtowners], for the Downtowners to administer the EID funds, provide for public meetings, budget adoption and consideration at open publicly noticed meetings, limitations on expenditures and other appropriate matters.”

Consistently with the ordinance, defendant sent notices to affected property owners, including plaintiffs, concerning the December 7 hearing. Those notices indicated that “[t]he purpose of the second hearing is to allow property owners to file written remonstrances (also referred to as objections) with the City regarding their proposed assessment.”

At the December 7 hearing, defendant considered the objections to the proposed assessments and determined that the cost of the improvements had been properly apportioned. Following that hearing and consistently with the procedure outlined in the ordinance, defendant adopted Resolution No. 2546 (the resolution), which was entitled “resolution of assessment.” (Capitalization omitted.) Noting that the EID had been created in the ordinance and that “the City Council [had] considered the proposed assessment and objections thereto” at the December 7 hearing, the resolution provided that (1) based on an attached listing of property owners that included plaintiffs, “the following assessments against property in the Bend Downtown Economic Improvement District shall be made” and (2) those assessments “shall be entered into the City of Bend lien docket records.” 2 Defendant *168 then sent each affected property owner an invoice concerning the assessment.

Thereafter, in February 2006, plaintiffs filed a complaint against defendant, seeking declaratory and injunctive relief. In general terms, that complaint alleged that the ordinance failed to comply with the pertinent statutes governing EIDs, ORS 223.112 to 223.132, in several particulars.

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Cite This Page — Counsel Stack

Bluebook (online)
217 P.3d 1118, 231 Or. App. 163, 2009 Ore. App. LEXIS 1502, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kozak-v-city-of-bend-orctapp-2009.