Agenda Item - 2022-05-03 - Number 8.1 - Ordinance 2894, Amending the Definition of Demolition 8.1
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Subject: Ordinance 2894, Residential Demolition and Nonconforming Development
Hearing Date: May 3, 2022 Staff Member:
Scot Siegel, Director
Report Date: April 22, 2022 Brian Don, Building Official
Department: Community Development
Action Required Advisory Board/Commission Recommendation
Z Motion ❑ Approval
Z Public Hearing ❑ Denial
Z Ordinance ❑ None Forwarded
❑ Resolution Z Not Applicable
❑ Information Only Comments:
❑ Council Direction This ordinance is limited to amending the definition of
❑ Consent Agenda demolition. The City Council will review the
Demolition Tax at a future date. The Planning
Commission is separately reviewing the requirements
for nonconforming residential developments.
Staff Recommendation: Conduct a public hearing and consider adoption of Ordinance 2894,
amending the definition of demolition and adding related definitions in LOC Chapter 45
Building Code.
Recommended Language for Motion: Move to enact Ordinance 2894, specifying the
percentage of residential structure removal constituting Demolition.
Project/ Issue Relates To: This proposal follows direction the City Council provided at the
March 17, 2022 study session on demolition policies.
Issue before Council (Highlight Policy Question):
®Council Goals/Priorities:
"Conserve the community's quality of life by planning for growth and change."
503.635.0215 380 A Avenue PO BOX 369 Lake Oswego, OR 97034 www.lakeosweao.city
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ISSUE BEFORE COUNCIL
Whether to amend the definition of demolition and add related definitions in LOC 45.12.100,
establishing a percentage of structure removal. This action is likely to result in an increase in the
number of residential building projects requiring a demolition permit and subject to the City's
demolition tax.
EXECUTIVE SUMMARY
On March 17, 2022, the City Council reviewed the demolition permit procedures in LOC
45.12.100, including the definition of demolition, neighbor-notification requirements, and the
demolition tax.
LOC 45.12.100(1)(b) defines "demolition" of dwellings and requires that applicants for dwelling
demolitions notify owners of abutting residential properties prior to commencing demolition. This
is intended to help protect public health and safety and promote neighborhood livability.
LOC Article 24.06 requires the owners of properties where demolition permits under LOC
45.12.100 are issued for residential structures to pay a demolition tax. However, under the
existing definition of demolition, a residential structure may be almost entirely removed (only one
wall left standing) without qualifying as a demolition, contravening the purposes of the
demolition noticing requirement and the demolition tax.
The Oregon Residential Specialty Code, Section R101.2.3 and the Oregon Structural Specialty Code,
Sec. 101.2,permit local jurisdictions to regulate demolitions through their own ordinances and these
local regulations are not subject to State Building Codes. Because these are non-land use
regulations'.
Ordinance 2894,amending the definition of demolition and adopting related definitions, is intended
to address Council's concern that the existing definition allows builders to contravene the purposes
of the demolition noticing requirements and the demolition tax. The ordinance does not however
modify the existing demolition tax or incentive for manual deconstruction (as an alternative to
mechanical demolition).
BACKGROUND
On June 15, 2021, the City Council appointed the Middle Housing Code Advisory Committee
(Committee) to recommend code concepts for attaining compliance with Oregon
Administrative Rules, OAR 660, Division 46 (HB 2001 implementing rules). In addition to the
1 Additionally,the Building Department follows Oregon Department of Environmental Quality requirements
related to hazardous materials abatement, including requirements that builders disclose the presence of and
certify the removal of asbestos and lead-based paint.
503.635.0215 380 A Avenue PO BOX 369 Lake Oswego, OR 97034 www.lakeoswego.city
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addressing Division 46 minimum requirements, the Committee identified other optional
measures the City could adopt to help maintain neighborhood character as residences are
remodeled and properties redevelop. Specifically, the Committee recommended, and the
Council agreed, that the City should amend the definition of"demolition" to require a greater
percentage of a dwelling remain in order for a building project to be considered a remodel,
versus demolition.
Based on the Committee's recommendations, and City Council direction, staff convened a
workgroup in February 2022 to study the issues of demolition and nonconforming
development. The workgroup was tasked with reviewing current code and recommending
changes to protect neighborhood character and quality of life, consistent with the
Comprehensive Plan and City Council goals.2
On February 28, the Planning Commission reviewed the workgroup recommendations and
generally agreed that the City should amend the definition of demolition.The Commission also
agreed that the City should consider changing how it regulates the continuation of
nonconforming residential developments, particularly as this relates to major additions to
dwellings. The Commission also advised that the City take more time to review its options and
seek public input before amending the development code.
On March 17, the City Council received the workgroup's recommendations and Planning
Commission input. Based on Council's direction, the Commission has added the review of
nonconforming development regulations to its 2022 work program.
ANALYSIS
On November 1, 2016, the City Council enacted Ordinance 2727 defining "demolition" (of
dwellings) and establishing a demolition permit procedure. Demolition permits are ministerial
permits administered by the Building Department under the Building Code (LOC Chapter 45).
Demolition applicants are required to notify abutting property owners by mail and by posting
the site not less than 14 days before commencing demolition. This is a courtesy notice for
neighbors so that they can prepare for the eventual, albeit temporary, disturbance of a
demolition.There is no comment period or opportunity for appeal; the notice is solely to
inform neighbors that a demolition has been approved.
Since enactment of Ordinance 2727, on average, the City has processed approximately 30
residential demolitions permits annually. This represents approximately 50% of all new single-
family dwellings constructed.
2 This workgroup was comprised of Planning and Building staff,the chair of the Middle Housing Code Advisory
Committee,a neighborhood association chair,and a local builder with experience developing both single-family
residences and middle housing.
503.635.0215 380 A Avenue PO BOX 369 Lake Oswego, OR 97034 www.lakeoswego.city
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Amending the definition of demolition would affect the demolition permit process and tax,
potentially increasing workload for Planning and Building staff but also increasing revenue from
the demolition tax, which is currently dedicated to parks maintenance.
Existing Definition of Demolition
The existing definition of demolition contained in LOC 45.12.100 (below) is very forgiving. Under
this definition, a residential structure may be almost entirely removed (only one wall left
standing) without qualifying as a demolition, as follows:
"Demolition"or "demolish"means:
i. Removal of all exterior walls;
ii. Removal of the superstructure (the part of the building or construction above the
lowest subflooring; "lowest subfloor"is the bottommost structural floor laid as a base for
a finished floor), such that none of the existing superstructure is maintained; or
iii. Alteration, abandonment or removal of all of the existing perimeter foundation.
As discussed in the City Council's March 17, 2022 study session, the Council is concerned that
this definition contravenes the purposes of the demolition noticing requirement, which is to
inform neighbors when the City approves demolitions, and the demolition tax.
Proposed Definition with Options
The proposed definition of demolition contained in Attachment 1 -Ordinance 2894 is also
provided below. City Council should decide on a threshold for what constitutes demolition by
choosing a percentage of residential structure "removal". Staff recommends using a percentage
of the residential structure's exterior walls and perimeter foundation to trigger the demolition
permit and tax. Based on a review of other cities' regulations, staff recommends using 50%
removal to define residential demolition. Council may also choose a different percentage or
direct staff to consider other metrics.
"Demolition" or "demolish" means removal 50 percent or more of the total surface area
of exterior walls or perimeter foundation of a residential structure as it existed on
[effective date of ordinance), either as a single project or cumulatively over five years or
less;
"Exterior walls" and "gross building floor area" are also defined in the proposed ordinance. At
the May 3 City Council public hearing, staff will present additional background.
RECOMMENDATION
Conduct a public hearing and enact Ordinance 2894 specifying a preferred percentage of
residential structure removal constituting demolition and adding related definitions.
503.635.0215 380 A Avenue PO BOX 369 Lake Oswego, OR 97034 www.lakeoswego.city
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FISCAL IMPACT
The amendment is likely to result in an increase in the number of residential building projects
subject to the demolition tax. A 20% increase, for example, would generate approximately
$100,000 gross demolition tax revenue annually. Assuming 15% overhead, net revenue would
be approximately$85,000.
ATTACHMENTS
1. Ordinance 2894, 04/22/2022
503.635.0215 380 A Avenue PO BOX 369 Lake Oswego, OR 97034 www.lakeoswego.city
ATTACHMENT 1
ORDINANCE 2894
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAKE OSWEGO AMENDING THE
DEFINITION OF DEMOLITION AND ADDING RELATED DEFINITIONS IN LOC 45.12.100
DEMOLITION OF DWELLINGS.
Whereas, LOC 45.12.100(1)(b) defines "demolition" or "demolish" as pertains to dwellings, and
requires that applicants for dwelling demolitions notify owners of abutting residential properties
prior to commencing demolition;
Whereas, LOC Article 24.06 requires the owners of properties where demolition permits under
LOC 45.12.100 are issued for residential structures to pay a demolition tax;
Whereas,the requirement that applicants for dwelling demolitions notify abutting property owners
prior to commencing demolition helps protect public health and safety and promotes neighborhood
livability;
Whereas, under this definition of demolition, a residential structure may be almost entirely
removed (only one wall left standing) without qualifying as a demolition, contravening the
purposes of the demolition noticing requirement and the demolition tax.
Whereas, the Oregon Residential Specialty Code, Section R101.2.3 and the Oregon Structural
Specialty Code, Sec. 101.2 permit local jurisdictions to regulate demolitions through their own
ordinances and these local regulations are not subject to State Building Codes;
The City of Lake Oswego ordains as follows:
Section 1. Section LOC 45.12.100(1) of the Lake Oswego Code is hereby amended by adding the
text shown in bold. double-underlined type and deleting the text shown in strikcthrough type, as
follows:
45.12.100 Demolition of dwellings.
1. Definitions.
//
b. "Demolition" or "demolish" means: i. Rcmoval of all cxtcrior walls; removal of 50
percent or more of the total surface area of exterior walls or perimeter foundation of a
residential structure as it existed on )effective date of ordinance). either as a single
project or cumulatively over five years or less)
Ordinance 2894
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ii. Removal of thc superstructure (thc part of thc building or construction above thc
arAfl3Gx-ice; "13wo t' bfl3x" the bottommotrwa al floor laid as a
base c finichcd floor), such thc- none of thc cMicting cuperstructurc is mcintcin
iii. Alteration, caxidonmcnt or removal of all of the perimeter foundation.
c. "Exterior wall" for the purpose of LOC 45.12.100 means a wall enclosing a dwelling
that has a surface exposed to the outside. including all framing and sheathing. from top
plate to bottom plate on all stories.
Section 2. Severability. The provisions of this ordinance are severable. If any portion of this
ordinance is for any reason held to be invalid, such decision shall not affect the validity of the
remaining portions of this ordinance.
Enacted at the regular meeting of the City Council of the City of Lake Oswego held on the 3rd day of
May, 2022.
AYES:
NOES:
ABSTAIN:
EXCUSED:
Joseph M. Buck, Mayor
ATTEST:
Kari Linder, City Recorder
APPROVED AS TO FORM:
Jason Loos, City Attorney
Ordinance 2894
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