Loading...
Agenda Item - 2022-11-15 - Number 11.1 - Ordinance 2917, Affordable Housing and Deconstruction Incentives 11 .1 COUNCIL REPORT 0 ORE00� Subject: Residential Structure Demolition Tax Update (Ordinance 2916 I PP 22-0006) Meeting Date: November 15, 2022 Staff Member: Scot Siegel, Community Development Director Report Date: November 7, 2022 Department: Community Development Action Required Advisory Board/Commission Recommendation ❑ Motion ❑X Approval ❑X Public Hearing ❑ Denial ❑X Ordinance ❑ None Forwarded ❑ Resolution ❑ ❑ Information Only Comments: Sustainability Advisory Board and Historic ❑ Council Direction Resources Advisory Board recommend approval ❑ Consent Agenda Staff Recommendation: Conduct a public hearing and enact Ordinance 2916. Recommended Language for Motion: Move to enact Ordinance 2916. Project/ Issue Relates To: ▪Council Goals/Priorities Conserve the community's quality of life by planning for growth and change. ISSUES BEFORE COUNCIL Issues include whether to: • Remove the sunset on Ordinance 2831 (LOC 24.06 Residential Demolition Tax), • Modify the incentives for affordable housing and deconstruction in LOC 24.06, • Amend LOC chapter 45 (Building Code) to make deconstruction mandatory for structures built in 1940 or earlier, and • Exempt from the demolition tax all types of deed-restricted affordable housing, including those exempt from system development charges. Respect. Excellence. Trust. Service. 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO,OR 97034 WWW.LAKEOSWEGO.CITY Page 2 EXECUTIVE SUMMARY The primary purpose of Ordinance 2831, Residential Demolition Tax was to raise revenue for parks maintenance. It is a general tax—not a system development charge under ORS 223.297— .314 or a construction excise tax under ORS 320.195. Section 3 of Ordinance 2831 is a three- year sunset requirement (expires January 2, 2023). The $15,000 tax applies to demolitions of residential structures, including single-family homes and duplexes. Demolitions of dangerous/condemned buildings and demolitions for the purpose of developing multifamily affordable housing are exempt. The rate was designed to meet the Parks Department goal of raising $400,000 annually. As of September 2022, the tax, effective Jan. 2, 2020, had raised $1,230,000. Thus, the average annual amount raised is on-track with the original estimate. The tax is reduced by $5,000 for projects that utilize a certified deconstruction contractor (manual deconstruction) as an alternative to mechanical demolition. Two builders in the past three years have taken advantage of the credit. Recently, the definition of demolition was amended to include major remodels where more than 50% of a dwelling's exterior walls or foundation are removed (Ordinance 2894). This change has the potential to increase the number of demolition permits. At the City Council's October 18, 2022 study session, the Council provided the following direction for staff to prepare an ordinance: 1. Remove the sunset on Ordinance 2831. (There was not a consensus for establishing a new sunset.) 2. Replace the existing tax reduction for manual deconstruction (deconstruction) projects with a full tax exemption, to encourage resource conservation. 3. Research the effect of requiring deconstruction for older houses (1940s or earlier), to encourage reuse of valuable building materials that are no longer produced. When the tax ordinance was adopted in 2019, the Council received testimony in opposition from the Home Builders Association of Metro Portland (HBA). Staff has reached out to the HBA and understands that they are tracking this policy and are concerned about its effects on housing costs. The HBA recommended demolitions for development of middle housing be exempt. They also suggested the City exempt moderate-income housing from the tax, defined as housing that is affordable to those earning 120 percent or less of area median income, in place of the existing criteria (80 percent or less of area median income). During the October 18 study session, Council did not reach consensus on whether to exempt demolitions for middle housing. Council noted that middle housing is not necessarily affordable to people with low incomes, though it provides other public benefits compared to single-family detached housing, including reduced carbon footprint and more efficient delivery of urban Respect. Excellence. Trust. Service. 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO,OR 97034 WWW.LAKEOSWEGO.CITY Page 3 services such as utilities and transit. While it is unclear how much the tax might be a barrier to middle housing development, it was noted that the cost of a tax can be spread out over more dwelling units in a middle housing development as compared to single-family development. The City Manager also noted that an exemption dependent upon later construction of middle housing would add complexity to the permit process, requiring staff time for administration and enforcement. Council has not previously discussed changing the affordability criteria as suggested by the HBA. If Council were interested in considering that policy change, staff recommends taking it up as part of the City's work toward implementing House Bill 2003 (Housing Production Strategy). Included as part of Ordinance 2916 (Attachment 1), staff is proposing an amendment to the demolition tax that would exempt all types of housing that meet the City's established affordability criteria, as defined in the SDC exemption (LOC 39.06.105(5)(a)(ii)). The proposed ordinance exempts any type of housing that meets these criteria, instead of limiting the exemption to developments of multifamily rental housing as is currently the case. The change would make the demolition tax exemption consistent with the system development charge fee exemption in Ordinance 2885. The Sustainability Advisory Board (SAB) and Historic Resources Advisory Board (HRAB) reviewed the demolition tax and provided their recommendation in Attachment 2. Among other recommendations, SAB and HRAB suggested deconstruction of older houses (built in 1940 or earlier) become mandatory, to reduce the environmental impact of demolitions and to encourage reuse of valuable building materials that are no longer produced. Accordingly, and pursuant to City Council's direction during the October 18 study session on the tax, staff researched the number of demolitions approved for structures that were built in 1940 or earlier. See Discussion, below. BACKGROUND In 2016, the City Council amended the City's local Building Code (LOC 45.12.100) to require a 14-day waiting period for all residential demolitions, with notice of the demolition mailed to adjacent property owners and posted on the site (Ordinance 2727). The City also requires certification and abatement of asbestos and lead-based paint as part of the demolition process. In 2018, the City Council adopted System Development Charge (SDC) financial incentives for the development of affordable housing and measures to encourage the retention of existing housing. These measures included fee waivers for accessory dwelling units and affordable housing (Ordinance 2810), and a streamlined land use permit process for ADUs (Ordinance 2784). In 2019, the City Council adopted the residential demolition tax with a 3-year sunset provision.' Unless the sunset is removed or modified, Ordinance 2831 expires on January 2, 2023. 1 Lake Oswego is the only Oregon local government with a demolition tax.The City of Portland considered but abandoned a similar tax proposal in 2018. Respect. Excellence. Trust. Service. 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO,OR 97034 WWW.LAKEOSWEGO.CITY Page 4 In 2022, the City Council amended the SDC financial incentives for affordable housing to include more types of income-targeted housing (not limited to multifamily rental housing), including for-sale homes (Ordinance 2885). On October 18, 2022, the City Council held a study session on the demolition tax and provided direction for preparing proposed Ordinance 2916. DISCUSSION The existing demolition tax enacted with Ordinance 2831 (Lake Oswego Code Article 24.06) applies to demolitions of residential structures, as follows: 1. A tax of$15,000 per demolition is levied at the time of permit issuance. 2. A $5,000 tax reduction or credit is provided for projects that use a City of Portland Certified Deconstruction Contractor as an alternative to mechanical demolition. 3. Demolitions of structures that are removed for development of affordable housing, or where the City declares the structure unsafe/condemns it, are exempt from the tax. 4. The tax revenue is dedicated to parks maintenance. It is general tax, not an SDC or a construction excise tax. When the existing tax was approved in late 2019, revenue was projected based on permitting activity over the previous five years, which had averaged approximately 30 demolitions per year. This assumed the economy remained strong. By setting the rate at $15,000, the tax was to meet the Parks Department's annual goal of$400,000 in revenue, or approximately 10%-15% of the Department's maintenance budget2. To date, the tax has exceeded this goal, as follows: Table 1. 2019-2022 Demolition & Revenue By Demo Type, as of September 2022 Demolition Permits Demolition Permit Deconstruction- Deconstruction- Issued Revenue Demolition Demolition Revenue Permits Issued 2019 37 $0 0 2020 16 $240,000 0 2021 36 $540,000 2 $20,000 _ 2022 29 $405,000 0 _ 2022(applied but not 9 0 issued) Total issued 118 $ 1,185,000 2 $20,000 Total issued+applied 127 2 According to the Parks and Recreation Department,the total Parks, Natural Areas and Athletic Fields Maintenance budget is$3.6M annually;the demolition tax equals 13.9%of the budget. Respect. Excellence. Trust. Service. 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO,OR 97034 WWW.LAKEOSWEGO.CITY Page 5 Deconstruction Incentive The City Council adopted the deconstruction tax incentive because of the environmental benefits of reusing building materials instead of disposing of them in the landfill or recycling, consistent with the City's sustainability goals. When the City was first considering the demolition tax and deconstruction incentive, staff had researched Portland's deconstruction program, which at the time provided a good model for the proposed incentive3, even though Portland requires deconstruction for older houses. In 2016, Portland was the first city in the country to require deconstruction, as opposed to mechanical demolition. At first, they required deconstruction for removal of any designated historic landmark and homes built in 1916 or earlier, but in 2019, Portland amended its policy and changed the cutoff date to 1940 or earlier. Staff asked SAB and HRAB to make recommendations for City Council consideration, which are provided in Attachment 2. The advisory boards jointly recommend making deconstruction mandatory for older houses undergoing demolition. Staff researched Portland's program in July 2022. At that time, Sustainability Manager Amanda Watson contacted program manager Shawn Wood who reported that certified deconstruction contractors have additional capacity to take on more projects. Mr. Wood also indicated the market for salvaged materials was good. Staff can confirm that with deconstruction contractors and salvage companies. Based on Council's direction at the October 18 study session on the tax, staff researched the number of demolition applications for structures that were built in 1940 or earlier using Metro's Regional Land Information System and the City's GIS. Although the data are incomplete, we were able to identify "year built" for 90 out of 91 demolition permits applied for during 2020 through September 2022. A total of 30 out of 90 of those houses were built in or before 1940. Previously, it was reported there were no deconstruction projects that utilized the deconstruction incentive; in fact, there were two, both in 2021. One house was originally built in 1960, and the other in 1935. See Attachment 3. IMPACTS AND ALTERNATIVES The demolition tax adds to the cost of housing production and disproportionately impacts lower-value properties because the tax is a flat amount (not tied to the value of the demolished structure). The tax also targets neighborhoods that are redeveloping rather than the city as a whole, which some residents may view as unfair because the tax is used for parks maintenance citywide. Alternatives to removing the sunset on the demolition tax include allocating additional general funds to Parks, adopting a park utility fee, or asking voters to approve a tax levy to help pay for maintenance of new parkland that may be acquired and facilities constructed under the 2019 Parks and Open Spaces Bond. 3 The stated purpose of Portland's deconstruction ordinance is to"maximize salvage of building materials for reuse, reduce carbon emissions and landfill waste,and to minimize the adverse impacts associated with building removal." Respect. Excellence. Trust. Service. 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO,OR 97034 WWW.LAKEOSWEGO.CITY Page 6 FISCAL IMPACT Removing the sunset on the residential demolition tax would have a positive impact on revenue for parks maintenance. Currently, the tax raises approximately $400,000 per year. By exempting houses built in 1940 or earlier, Council should plan for a reduction in tax revenue by as much as 30%; though the effect of the exemption may decrease over time as fewer older houses are demolished. RECOMMENDATION Conduct a public hearing and adopt Ordinance 2916. ATTACHMENTS 1. Ordinance 2916, with Exhibit A 2. SAB and HRAB Joint Recommendation, August 31, 2022 3. Demolition Data by Year Built for Demolitions Approved 2019-2022 (September) 4. Article 24.06 and 45.12 code amendments, with full section text for context Respect. Excellence. Trust. Service. 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO,OR 97034 WWW.LAKEOSWEGO.CITY ATTACHMENT 1 ORDINANCE 2916 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAKE OSWEGO REMOVING THE SUNSET ON ORDINANCE 2831 (LOC 24.06 RESIDENTIAL DEMOLITION TAX), MODIFYING THE AFFORDABLE HOUSING AND DECONSTRUCTION INCENTIVES IN LOC ARTICLE 24.06, AND AMENDING LOC ARTICLE 45.12 (DEMOLISHING OR MOVING BUILDINGS) TO MAKE DECONSTRUCTION MANDATORY FOR STRUCTURES BUILT IN THE YEAR 1940 OR EARLIER. WHEREAS, the City of Lake Oswego demolition tax, as established by Ordinance 2831 and codified in Lake Oswego Code Article 24.06, provides needed revenue for maintaining City park properties and facilities; and WHEREAS, manual deconstruction can be a more sustainable method of demolition than mechanical demolition by providing opportunities for reuse of valuable building materials, as opposed to recycling or landfill disposal; WHEREAS, the demolition tax reduction for manual deconstruction performed by a certified deconstruction contractor (LOC 24.06.050), could be more effective at encouraging deconstruction as an alternative to mechanical demolition; WHEREAS, it is in the public interest to require deconstruction by a certified deconstruction contractor where the demolition permit is issued for removal of a residential structure originally built in or prior to 1940, to encourage reuse of valuable building materials; WHEREAS, it is in the public interest to exempt from the demolition tax any demolition that is for the purpose of developing housing that meets the City's adopted affordable housing criteria; and WHEREAS,the demolition tax is for revenue purposes and is not a fee for recovering administrative costs, nor is it regulatory in any manner; The City of Lake Oswego ordains as follows: Section 1. Sunset Provision. Section 3, the Sunset Provision, of Ordinance 2831 is hereby repealed. Section 2. The Lake Oswego Code, Article 24.06 (Demolition Tax) and Lake Oswego Code, Article 45.12 (Demolishing or Moving of Buildings), are hereby amended by adding new text shown in double underlined type and by deleting text shown with strikeouts, in Exhibit A. (Sections or subsections within LOC Article 24.06 and LOC Article 45.12 that are omitted in Exhibit A, and not marked for deletion or addition, are neither amended nor deleted by this Ordinance.) Ordinance 2916 Page 1of2 Section 3. Effective Date. As provided under Section 35.C. of the Lake Oswego Charter, this ordinance shall take effect on the 30th day following enactment. Section 4. 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 15th day of November 2022. AYES: NOES: ABSTAIN: EXCUSED: Joseph M. Buck, Mayor ATTEST: Kari Linder, City Recorder APPROVED AS TO FORM: Evan Boone, City Attorney Pro Tem Ordinance 2916 Page 2 of 2 Exhibit A —Ord. 2916 24.06.010 Purpose. The demolition of residential structures in the City of Lake Oswego has contributed to the waste stream through disposal of building materials. Demolition has also reduced the diversity of housing stock and decreased the availability of affordable housing within the City. Subsequent redevelopment has contributed to increases in housing prices that make it more difficult to provide affordable housing. The permit fees relating to building demolitions cover the administrative costs of the regulatory program, but do not address other impacts of demolition of residential structures. The tax imposed under this article is not for the purpose of recovering administrative costs and is not regulatory in any manner. The tax is strictly for revenue purposes, to provide funding to maintain City park properties and facilities. The tax shall be in addition to any regulatory demolition permit fees established from time to time by the City Council and all other applicable regulatory fees and charges. 24.06.040 Exemptions. *** 2. The demolition tax imposed in LOC 24.06.030 shall not apply to: a. Any residential structure being demolished due to a catastrophic loss such as fire, landslide, flood, earthquake or other disaster; b. Any residential structure that is subject to a vacation or demolition order by the City Building Official by reason of being an unsafe building or structure under LOC 45.09.060, or a dangerous building under LOC 45.09.065; c. Any residential structure located on publicly owned property; Of d. Any residential structure being demolished to clear a site for development of multi family affordable housing described in LOC 39.06.105(5)(a)(ii); provided, that: i. The owner of the property including the residential structure has received a development permit for development on the property that qualifies for the system development charge exemption under LOC 39.06.105(5); ii. The covenant required by LOC 39.06.105(5) based upon the approved development is recorded; and iii. All of the terms of the covenant are complied with. e. Any residential structure where the demolition permit is issued for removal of a residential structure through deconstruction by a certified deconstruction contractor under LOC 24.06.050. Page 1 of 3 Exhibit A —Ord. 2916 3. Any demolition tax paid under LOC 24.06.030 shall be refunded to the property owner if, within one year following issuance of the demolition permit: a. The property owner obtains a building permit for development of multi family affordable housing described in LOC 39.06.105(5)(a)(ii) on the property from which the residential structure was removed; b. The development has qualified for the system development charge exemption under LOC 39.06.105(5); and c. The covenant required by LOC 39.06.105(5) is recorded. 24.06.050 Tax Reduction Exemption for Deconstruction of Residential Structures. 1. The demolition tax imposed in LOC 24.06.030 shall be waived reduced by$5,000 where the demolition permit is issued for removal of a residential structure through deconstruction by a certified deconstruction contractor. 2. To be eligible for the demolition tax exemption for deconstruction reduction, a pre-deconstruction form, in a form approved by the City Manager, must be completed and submitted as part of the application for the demolition permit. The form must be completed by the certified deconstruction contractor assigned to the project. Information required on the form must include, but is not limited to: 3. *** 24.06.070 Failure to Comply with Requirements of Exemption for Affordable Housing or Exemption Reduction—for Deconstruction. 1. This section shall apply when: a. An exemption from the demolition tax has been granted under LOC 24.06.040(2)(d), or a demolition tax has been refunded under LOC 24.06.040(3), but the covenant is violated, or is terminated according to its terms before the expiration date; or b. An exemption from reduction of the demolition tax has been granted under LOC 24.06.050, but the residential structure is not removed through deconstruction that complies with all requirements of that section and all applicable rules and procedures adopted by the City Manager. *** 3. The exemption, reduction or refund will be terminated and the entire exempted, reduced or refunded amount of the demolition tax, plus the processing fee, together with interest from the date the exemption, refund, or permit with tax reduction was granted at a rate established by the City Council, shall become immediately due and payable by the current owner of the property. *** Page 2 of 3 Exhibit A —Ord. 2916 Article 45.12 Demolishing or Moving Buildings. // 45.12.100 Demolition of Dwellings. 1. Definitions. a. "Building Official" means the person appointed by the City Manager to enforce the provisions of the Building Code, or designee. b. "Certified Deconstruction Contractor" means as defined in LOC 24.06.020. c. "Deconstruction" means as defined in LOC 24.06.020. d . "Demolition" or"demolish" means removal of 50% or more of the total surface area of exterior walls or perimeter foundation of a residential structure as it existed on June 2, 2022, either as a single project or cumulatively over five years or less. ec. "Exterior wall"for the purpose of this section 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. *** 45.12.110 Deconstruction of Dwellings Required. Demolition of residential structures built in the year 1940 or earlier shall be by deconstruction only and follow the procedures for deconstruction under LOC 24.06.050, LOC 24.06.070 and LOC 24.06.080,. *** Page 3 of 3 ATTACHMENT 2 E�.r MEMORANDUM TO: Members of the City Council FROM: Historic Resources Advisory Board Sustainability Advisory Board SUBJECT: Demolition Tax Renewal DATE: August 31, 2022 On August 10, 2022, members of the Historic Resources Advisory Board and Sustainability Advisory Board met jointly to discuss the renewal of the City of Lake Oswego's Demolition Tax and corresponding deconstruction incentive. City staff solicited Board members' input on potential updates that might be needed to the tax, including changes that would encourage more demolition projects to use deconstruction. Incentivizing deconstruction aligns with the City's sustainability and climate action goals because deconstruction enables the reuse of building materials that would otherwise be placed in landfills and reduce the overall carbon footprint of new construction. The Sustainability Advisory Board and HRAB members have encouraged City staff to evaluate policy options to require deconstruction of older homes, following City of Portland's model. The group also discussed whether the City should consider additional incentives connected to the demolition tax that would allow volunteers permission from the property owner to access older properties to document older homes and add to the existing database before they are demolished. In response to the increasing number of older homes being demolished throughout the City, the Historic Resources Advisory Board worked with Planning, Building, and Library staff to develop an administrative procedure for documenting homes built more than 45 years ago. Documenting these older homes can contribute to the City's architectural history. In light of the City's sustainability and historic preservation goals, we recommend that Council consider the following actions in relation to the Demolition Tax: • Follow Portland's model to require deconstruction of any homes built prior to 1940. • Raise the demolition tax to $25,000 and allocate some of the revenue to the Historic Preservation Grant Program. Respect. Excellence. Trust. Service. 503-675-3984 380 A AVENUE PO BOX 369 LAKE OSWEGO,OR 97034 WWW.LAKEOSWEGO.CITY Page 2 of 2 • Raise the incentive for a deconstruction permit from $5,000 to $10,000. Information on the differences in cost between demolition and deconstruction could be used to determine the appropriate amount of the incentive relative to the tax. • Direct staff to investigate why the deconstruction incentive has not been utilized, and what strategies could help overcome barriers that might exist. For example: a. If the permit process is a barrier, streamline the permit application process for deconstruction permits. Possibly, create an expedited process for deconstruction permit applications. b. If the incentive is not being used because residents are not aware of it, educate the public and discuss the deconstruction option in greater detail when homeowners apply for a permit. Perhaps develop a brochure that describes the process. Conduct additional education outreach to contractors, deconstruction contractors and property owners with homes that are 40 years old or older. • Integrate more sustainable construction incentives to support Sustainability and Climate Action Plan goals. Allow for more demolition permit cost reduction (or other incentives, potentially funded by demolition tax revenue) if the property owner integrates more sustainable practices at the building phase that lower the carbon footprint of buildings. • Extend waiting period for demolition permits issued for homes that are greater than 40 years old from 14 days to 30 days. This would allow more time for city volunteers to document the property and provide more opportunities to consider deconstruction. Thank you for your consideration. Respectfully, Members of the Historic Resources Advisory Board and Sustainability Advisory Board Respect. Excellence. Trust. Service. ATTACHMENT 3 DEMOLITION APPLICATIONS (2020-2022 SEPT) BY YEAR BUILT page 1 of 2 NUMBER STREET TYPE City PARCEL YEARBUIL_2019 1455•CHANDLER RD LAKE OSWEGO '21E03CCO2500 0 540.E AVE LAKE OSWEGO '21E03DC06600 1900 769'4TH ST LAKE OSWEGO '21E03DA06100 1910 718'5TH ST LAKE OSWEGO '21E03DB08000 1910 523LAUREL ST LAKE OSWEGO '21E10DA04100 1915 53'D AVE LAKE OSWEGO '21E03DA02200 1920 330'6TH ST LAKE OSWEGO '21E03DC13200 1920 3525•LAKE GROVE AVE LAKE OSWEGO '21E08CA00100 1922 15655•TWIN FIR RD LAKE OSWEGO '21E08ACO2700 1924 718'3RD ST LAKE OSWEGO '21E03DA05000 1925 16140'REESE RD LAKE OSWEGO '21E08CA04200 1928 743'6TH ST LAKE OSWEGO '21E03DB07600 1928 4330•LAKEVIEW BLVD LAKE OSWEGO '21E08CC05300 1933 2945•UPPER DR LAKE OSWEGO '21E08AD00700 1934 1625'CLOVERLEAF RD LAKE OSWEGO '21E16BD01800 1935 608•CABANA LN LAKE OSWEGO '21E10AB09500 1935 *604 CABANA LN LAKE OSWEGO '21E10AB09300 1935 13741KNAUS RD LAKE OSWEGO '21E04BD01300 1936 16720•ALDER CIR LAKE OSWEGO '21E17AB04700 1937 13962•KNAUS RD LAKE OSWEGO '21E04DB00900 1938 13561:GOODALL RD LAKE OSWEGO '21E04BC00900 1938 1037•LAKE FRONT RD LAKE OSWEGO '21E10DB02000 1939 17437•CANAL CIR LAKE OSWEGO '21E17BA06900 1939 920•EVERGREEN RD LAKE OSWEGO '21E03CD09800 1939 527'NORTH SHORE RD LAKE OSWEGO '21E10AC00600 1939 534'D AVE LAKE OSWEGO '21E03DB13400 1940 853E AVE LAKE OSWEGO '21E03BD07100 1940 937'9TH ST LAKE OSWEGO '21E03BD06300 1940 1334•MAPLE ST LAKE OSWEGO '21E10CA09400 1940 1425•MAPLE ST LAKE OSWEGO '21E10CA04000 1940 13800 GOODALL RD LAKE OSWEGO '21E04BD01800 1940 755 ELLIS AVE LAKE OSWEGO '21E03CD10900 1946 17561 LAKE HAVEN DR LAKE OSWEGO '21E17BCO2500 1947 2305 GLEN HAVEN RD LAKE OSWEGO '21E16BB02500 1947 4257 LORDS LN LAKE OSWEGO 21E17BCO2400 1947 2301:HAZEL RD LAKE OSWEGO '21E04BC01500 1947 825'ELLIS AVE LAKE OSWEGO '21E03CD10700 1948 1012•LAKE FRONT RD LAKE OSWEGO '21E10DB02500 1948 1111:BAYBERRY RD LAKE OSWEGO '21E03CA04000 1948 370'9TH ST LAKE OSWEGO '21E03CD07600 1948 17495'KELOK RD LAKE OSWEGO '21E17BD08700 1949 2275•GLEN HAVEN RD LAKE OSWEGO '21E16BB02400 1949 807'ELLIS AVE LAKE OSWEGO '21E03CD10800 1950 732'ELLIS AVE LAKE OSWEGO '21E10BA00600 1950 18024'EASTRIDGE LN LAKE OSWEGO '21E14CB02200 1950 1107•YATES ST LAKE OSWEGO '21E10DD01300 1950 230LAUREL ST LAKE OSWEGO '21E10DA07200 1952 16885•FERNWOOD DR LAKE OSWEGO '21E16BB04500 1952 2320•GLEN HAVEN RD LAKE OSWEGO '21E16BB03900 1952 915.OAK TER LAKE OSWEGO '21E09DA02200 1953 15780•TWIN FIR RD LAKE OSWEGO '21E08AC05300 1954 2485'GREENTREE RD LAKE OSWEGO '21E16BB05500 1954 2679•GLEN EAGLES RD LAKE OSWEGO '21E08AA03500 1954 2101'WEMBLEY PARK RD LAKE OSWEGO '21E04CCO2800 1955 2245•GLEN HAVEN RD LAKE OSWEGO '21E16BB02200 1955 16873•CANYON DR LAKE OSWEGO '21E17AA06800 1955 1132•TROON RD LAKE OSWEGO '21E10BB03300 1955 1250 SUNNINGDALE RD LAKE OSWEGO 21E03CB00100 1956 DEMOLITION APPLICATIONS (2020-2022 SEPT) BY YEAR BUILT - page 2 of 2 628 5TH ST LAKE OSWEGO 21E03DB12600 1956 17337'WESTVIEW DR LAKE OSWEGO '21E17AC03200 1956 2740•GLEN HAVEN RD LAKE OSWEGO '21E17AA05800 1957 2090•CREST DR LAKE OSWEGO '21E04CC06600 1958 13041 THOMA RD LAKE OSWEGO '21E04BB02600 1958 259•PINE VALLEY RD LAKE OSWEGO '21E10BB01100 1959 517LAUREL ST LAKE OSWEGO '21E10DA04300 1959 17104•CANAL CIR LAKE OSWEGO '21E17BA04400 1959 *726 •MCVEY AVE LAKE OSWEGO '21E10DB00700 1960 17950'KELOK RD LAKE OSWEGO '21E17CA00300 1961 19175•PILKINGTON RD LAKE OSWEGO '21E19BA02900 1962 3610'EENA RD LAKE OSWEGO '21E17AB07000 1964 18707'BRYANT RD LAKE OSWEGO '21E17CC01301 1964 668'MCVEY AVE LAKE OSWEGO '21E10AD99020 1964 1108'SPRUCE ST LAKE OSWEGO '21E10DC08900 1965 15530•DIAMOND HEAD RD LAKE OSWEGO '21E09AC01000 1965 4680•UPPER DR '21E07DD05200 1966 17663'HILL WAY LAKE OSWEGO '21E18AD07200 1966 4595•WILDWOOD ST LAKE OSWEGO '21E18AD00400 1967 4241:C0BB WAY LAKE OSWEGO '21E17BB11500 1969 17952•CARDINAL DR LAKE OSWEGO '21E17CA01200 1969 18975.OLSON CT LAKE OSWEGO '21E20BA00800 1970 4200•OLD GATE RD LAKE OSWEGO '21E20BB02204 1972 4141:C0BB WAY LAKE OSWEGO 21E17BB12000 1972 18015•CARDINAL DR LAKE OSWEGO '21E17CA03400 1972 17570'HILL WAY LAKE OSWEGO '21E18AD08600 1976 63•AQUINAS LAKE OSWEGO '21E06AA00106 1976 820•TIMBERLINE DR LAKE OSWEGO '21E04AA03404 1976 3331:FIR RIDGE RD LAKE OSWEGO '21E08AB00800 1977 2111:SUMMIT DR LAKE OSWEGO '21E09BCO2400 1977 2442•PALISADES CREST DR LAKE OSWEGO '21E17DA02826 1980 13041:KNAUS RD LAKE OSWEGO '21E04BB00700 1984 1445.OAK TER LAKE OSWEGO '21E09CA00305 1984 4357•SOUTH SHORE BLVD LAKE OSWEGO '21E08CC09200 1986 15012•TWIN FIR RD LAKE OSWEGO '21E08AB03202 1989 3759•LANEWOOD ST LAKE OSWEGO '21E08BD02602 1993 *Demoltion by deconstruction .. a ...- -,� o:' 7,..:►`o," -,-;,di::■l� n�_-- =�ir�vtA - - 4.. . III ,- 11- �,��1 ,/1 ��� �r� 'r ■`�i Year Built ,;. ' '� �. di ._�� No Year Given I I 4,44 , g Olin mg ram issiiiiiipm-iim,*,-, er,.____,".4-�� �� il-�� 1900 - 1929 =? r •"115a`---�::toa si . .■ ir moo �1T� - 11■� ■ice�1�_�1��/�� '1fir •� siiii� III nor �� ►�I11411111� $k! ' #1950 - 1969 — 0 ` I I t ♦ �:- �'`' 1 1\z, • / i�✓:ice Ir ■,q/ll■/J r ._ • -Mi '■■� Ell 111II'Il liu- �, f.e ■_ I�~ Jam. I • it.i..ilo„r.. 1970 - 1989 _ ... ► 1 41 �h� ` ♦�.��•y. C � 1►\.i Ii.■A\ 1� ■I� I ► III/��1:: \ I; ,��- .1 ® - � i 1 1990 - 1993 .. ....f tom, ..�' 'e:.. ®�;SI- ' .ram .�.� ,.I .,, 1 gt • .;,,,1,. • \�..iO:��...� III 1�1�®�® ■ ,c '1� 1\� I 1 s. cimipool ..uni a -p ■ter ►� .■ .11/ 011 4►`•Ii.--� i I� — �illir h'� • \�I\KIA:. ik�11l_■�■of •■'G 1■ '1 iiZ 1 ` T 3 � ._.. , i ,,, ■ �"ern►� ••11� • �•� ' ��L�,� •�.i��1/®II �1 _., a. 1 .14:1 IIIIIP :-'bill; :u► of u. �►*w kt.�/..,, �, _.�1`red,,JII'„'r, �'� 1. �i■�0,B.. �i�pl%I`kit„ �r,`��`� Ii O , 7 • 7,ld ��� `� .� , ♦ , ■--- 1'■Ij iNvisI,/III.. OHO ,' �,� aI���� 0 ■F ~�♦�� � ,`.�♦ �i�: III �III111► �.11 �iy al t��...i - X� •....�1 I -■n /1�II I1� ea' 1: ■ 1111111III� /�IIII, pu ■ unuul J■�r.�1111 ; �,. �" 1. 1 9•i . 1111111111 `� ,11 v+°°6 n _ � ,� ■■_ L, `� ^' uuul'�� .,� '�`�1■ pi V 0 Q Vak �'r�••.m: i �i ' ME I• _.., 1`,,"10 _14eitill MI_■ ,R �•'■ -1111` - ''� �`. :_ Lake �•C �1.• ,., E:wul'^ ■ ... �4 • \` =�u ► ��.�II::': j� o �� ,� .��\\�J l�\� Il/lllllnlll' �� -■ �� voOlaMii �i♦Q�`�11C .ulll ?��t! 1 ♦/i' r■ / ap T i I at►i 1 �� -... ♦`\p I\_.���- MINNfill; ,1 ► �� ♦►�� .1• ,` u�\\I/ ���•• �� ► i,*,• _ e. � �. -/4.4, . •,. -_gi ili1r1111i'pip, . `31. tw �,`� ,o �`� '►.� iI .��j..i , :la-Nil‘ ��� _ _ u■■ \�►per►� ♦ �, \\A\► o �� I ��.......�1111 1 \►1.■ .. LI 0 I{ Ini1ali_�4,��S, ►,���i�`\*.1‘..•�f, 0S,Ne9 `,,♦♦'''"II_ • �55 '�11. ,%:: = C :.I "* _ ' ♦ .1 440,4 1il �.♦♦.♦�♦0., 1.►�"/1 it 1111 _�" - * �:\O� ` t+ `\ . / ��♦O♦��.�.�,u? ■■1\/I�/ III.i►•:i 1 ���" ■ ■ 11 1 : ����� ♦�, :'i\ _ ® 71 ?► West a I- I•• ' Q fl �� ►p1•.. ►■.►�� ■,fir.•..♦��� �1 1 nu • . 755-i llai\...'*:,,..!.„--. , hVr 1■ ... , - .Inn r ` .:.0 ter\` ,�i�j ‘ iii•.s.i, ,wII.i li,d i;-4A.1-1#Si • �lo .,.l -;a._;;llllil-l7f • .4 / .11 Q. i4. N• �O ten■_,\ ,V-■ E ,r�1 ; •♦ -Y ■, , 0i\ ! ' t!1L :o - 47 7, ...1 ' , 1,t/i.4t1411411111 Ift.,- '-- trot":Its:I .7 'Q /►► */ ♦•`e•_ 6r' w.V 4, ■IIIIIII�1Li. ri. .■ e . .\ ._ Q 11-4■! Jim\■ ►r.Iil■ii��►_ ! �1�•t�.. �q► ' 4• , ..0.. miagialion,,i0Aps . , tem.. L. IIMIr/WM _AMPLIIII° Idl■■li u■II:_. .... .....m. ■+ ,J j ,♦♦i.a •4 r� i ilirid:it gr.; _. 1111111111.e."!..!FS‘. , �'� ,,,��I ,��•e�•' .♦ 11,7p .T'.___■riot■ :. - 11 �IJ - .'- _ Pv 111,11.■■... �;,,.I. - - 2020 2 DemoPermits 11111�1■IIu�1uu�11.1 •. G� - _, i ■ii Flu g/. �� re 2 ' 1,1...■■• .• -11.1u --- :� ��'... =-� li7��� and Year Built .11�,1. 1..:--mENI It al�. r" r „I,,,ii .IL1 ' ,.. ■ «-. i e Mile ATTACHMENT 4 Article 24.06 Demolition Tax Sections: 24.06.010 Purpose. 24.06.020 Definitions. 24.06.030 Demolition Tax Imposed; Use of Revenue. 24.06.040 Exemptions. 24.06.050 Tax Exemption Reduction for Deconstruction of Residential Structures. 24.06.060 Authority of City Manager. 24.06.070 Failure to Comply with Requirements of Exemption for Affordable Housing or Reduction Exemption for Deconstruction. 24.06.080 Violations. Editor's Note: Section 3 of Ordinance 2831 provides, "The provisions of this ordinance shall be null, be repealed, on and after January 2, 2023." 24.06.010 Purpose. The demolition of residential structures in the City of Lake Oswego has contributed to the waste stream through disposal of building materials. Demolition has also reduced the diversity of housing stock and decreased the availability of affordable housing within the City. Subsequent redevelopment has contributed to increases in housing prices that make it more difficult to provide affordable housing. The permit fees relating to building demolitions cover the administrative costs of the regulatory program, but do not address other impacts of demolition of residential structures. The tax imposed under this article is not for the purpose of recovering administrative costs and is not regulatory in any manner. The tax is strictly for revenue purposes, to provide funding to maintain City park properties and facilities. The tax shall be in addition to any regulatory demolition permit fees established from time to time by the City Council and all other applicable regulatory fees and charges. 24.06.020 Definitions. As used in this article, unless the context requires otherwise: Certified Deconstruction Contractor means a contractor licensed with the Oregon Construction Contractors Board (CCB)that has successfully completed the deconstruction training and certification program offered by the Building Material Reuse Association, or other program recognized by the City Manager, and that has been approved as a credentialed Certified Deconstruction Contractor by the Director of the City of Portland Bureau of Planning and Sustainability, or the Director's designee. A firm will be considered certified if at least one person currently employed by the firm is certified. City Manager means the person holding the position of City Manager of the City of Lake Oswego, or that person's designee. Attachment 4 Page 1 of 8 Deconstruction means the systematic dismantling of a structure, typically in the opposite order from which it was constructed, in order to maximize the salvage of materials for reuse, in preference over salvaging materials for recycling, energy recovery or disposal in a landfill. Demolition or Demolish means as defined in LOC 45.12.100(1)(b). Demolition Permit means the permit required under LOC 45.02.200. Residential Structure means a single-family dwelling or a duplex, as defined in LOC 50.10.003.2. Reuse means the utilization of a product or material that was previously installed for the same or similar function to extend its life cycle. Materials salvageable for reuse include but are not limited to cabinets, doors, hardware, fixtures, flooring, siding, and framing lumber. (Ord. 2831, Added, 12/03/2019) 24.06.030 Demolition Tax Imposed; Use of Revenue. 1. On or after January 2, 2020, the owner of property that includes a residential structure for which a demolition permit is issued shall pay a tax to the City in the sum of$15,000. The tax shall be paid at the time the demolition permit is issued. 2. Revenue received from the tax imposed in subsection (1) of this section shall be used solely to maintain City park properties and facilities, including, without limitation, repair, renovation and replacement of existing improvements. 24.06.040 Exemptions. 1. The demolition tax imposed in LOC 24.06.030 shall not apply if: a. A complete and unexpired application for a demolition permit for the residential structure was on file with the City before January 2, 2020; b. A complete and unexpired application for a development permit under LOC Chapter 50 was on file with the City before January 2, 2020, for development that, as proposed in the application, necessitates demolition of the residential structure; or c. An unexpired development permit under LOC Chapter 50 issued before January 2, 2020, for the property containing the residential structure approves development that necessitates demolition of the residential structure, or includes a condition of approval that requires demolition of the residential structure. 2. The demolition tax imposed in LOC 24.06.030 shall not apply to: a. Any residential structure being demolished due to a catastrophic loss such as fire, landslide, flood, earthquake or other disaster; Attachment 4 Page 2 of 8 b. Any residential structure that is subject to a vacation or demolition order by the City Building Official by reason of being an unsafe building or structure under LOC 45.09.060, or a dangerous building under LOC 45.09.065; c. Any residential structure located on publicly owned property; or d. Any residential structure being demolished to clear a site for development of multi family affordable housing described in LOC 39.06.105(5)(a)(ii); provided, that: i. The owner of the property including the residential structure has received a development permit for development on the property that qualifies for the system development charge exemption under LOC 39.06.105(5); ii. The covenant required by LOC 39.06.105(5) based upon the approved development is recorded; and iii. All of the terms of the covenant are complied with. e. Any residential structure where the demolition permit is issued for removal of a residential structure through deconstruction by a certified deconstruction contractor under LOC 24.06.050, 3. Any demolition tax paid under LOC 24.06.030 shall be refunded to the property owner if, within one year following issuance of the demolition permit: a. The property owner obtains a building permit for development of multi family affordable housing described in LOC 39.06.105(5)(a)(ii) on the property from which the residential structure was removed; b. The development has qualified for the system development charge exemption under LOC 39.06.105(5); and c. The covenant required by LOC 39.06.105(5) is recorded. 24.06.050 TaxReel-Li-GU-en Exemption for Deconstruction of Residential Structures. 1. The demolition tax imposed in LOC 24.06.030 shall be waived reduced by$5,000 where the demolition permit is issued for removal of a residential structure through deconstruction by a certified deconstruction contractor. 2. To be eligible for the demolition tax exemption for deconstruction reduction, a pre-deconstruction form, in a form approved by the City Manager, must be completed and submitted as part of the Attachment 4 Page 3 of 8 application for the demolition permit. The form must be completed by the certified deconstruction contractor assigned to the project. Information required on the form must include, but is not limited to: a. Name of the certified deconstruction contractor; b. Whether heavy machinery will be used on the deconstruction project (exclusive of foundation removal); c. List of materials that are intended to be salvaged for reuse; d. List of materials that are not salvageable and the reason why the materials cannot be salvaged; and e. Expected dates for deconstruction activity. 3. A post-deconstruction form, in a form approved by the City Manager, must be completed by the certified deconstruction contractor assigned to the project and submitted to the City Manager no more than 30 days after completion of the deconstruction work. The City Manager must review and approve the post-deconstruction form before the demolition permit can be finaled. The form must include responses to all of the following in order to be considered complete: a. Name of the certified deconstruction contractor. b. List of materials salvaged for reuse. c. List of materials not salvaged for reuse, as indicated on the pre-deconstruction form, and the reasons materials were not salvaged. d. Copies of the following: i. Itemized receipt of materials and quantities donated to a nonprofit. ii. Itemized receipts for materials and quantities sold. iii. Photos of salvaged material that will be reused on site or at another site. iv. Transaction receipts of weight tickets for the disposal of hazardous material abated during the course of deconstruction. v. List and photos of materials given or sold to members of the public. 24.06.060 Authority of City Manager. The City Manager is authorized to adopt rules, procedures, and forms to implement the provisions of this article. Attachment 4 Page 4 of 8 24.06.070 Failure to Comply with Requirements of Exemption for Affordable Housing or Exemption Reduction-for Deconstruction. 1. This section shall apply when: a. An exemption from the demolition tax has been granted under LOC 24.06.040(2)(d), or a demolition tax has been refunded under LOC 24.06.040(3), but the covenant is violated, or is terminated according to its terms before the expiration date; or b. An exemption from reduction of the demolition tax has been granted under LOC 24.06.050, but the residential structure is not removed through deconstruction that complies with all requirements of that section and all applicable rules and procedures adopted by the City Manager. 2. The current owner of the property on which the residential structure was located shall pay the City a processing fee in an amount established by resolution of the City Council. 3. The exemption, reduction or refund will be terminated and the entire exempted, reduced or refunded amount of the demolition tax, plus the processing fee, together with interest from the date the exemption, refund, or permit with tax reduction was granted at a rate established by the City Council, shall become immediately due and payable by the current owner of the property. 4. The City Manager shall furnish a notice of the noncompliance under subsection (1)(a) or(1)(b) of this section, together with a statement of the charges and fees under this section and a description of the objection and hearing process, to the current owner of the property in person or by certified mail, return receipt requested, addressed to the current owner at the last known address as shown in the county property tax assessment records. If no objection is filed with the City Recorder within 15 days of the date the notice is mailed, the reinstated demolition tax amount, processing fee, and interest shall be a lien against the property. 5. If the current owner files an objection within the 15-day period, the City Council shall hold a public hearing, upon notice sent to the current owner by first class mail not less than 15 days in advance, to consider the oral and written testimony and materials provided by the City Manager, the current owner, or other interested persons. Following the hearing, the City Council shall determine whether the events described in subsection (1)(a)or(1)(b)of this section have occurred and, if so, the amounts that are due and payable under this section. The amounts determined by the City Council shall be a lien against the property on which the residential structure was located. The City Council's decision shall be final. 6. The City Manager shall docket the lien in the City lien docket. The lien shall be enforceable in the manner provided in ORS Chapter 223. Attachment 4 Page 5 of 8 24.06.080 Violations. 1. Violation of any provision of this article shall constitute a civil violation that shall be processed according to the procedures established in LOC Article 34.04. Each violation of a separate provision of this article shall constitute a separate offense and each day that a violation is committed or permitted to continue shall constitute a separate offense. Without waiving the generality of the foregoing, it shall be a violation for any person to: a. Fail or refuse to pay the tax established in this article; b. Provide any false or fraudulent information, or fail to provide any required information or documentation, with relation to the tax imposed or the exemptions, reductions or refunds allowed under this article; c. Demolish a residential structure other than by the required deconstruction after being granted a tax reduction for deconstruction under LOC 24.06.050; d. Construct development on property on which a residential structure has been demolished other than by the required deconstruction after a demolition tax reduction has been granted under LOC 24.06.050, unless the entire amount of the reduction together with the processing fee and interest, have been paid to the City under LOC 24.06.070; or e. Fail to comply with the requirements of a covenant under LOC 24.06.040(2)(d) or(3)(c). 2. The remedies provided in this section are not exclusive and shall not prevent the City from exercising any other remedy available under the law. *** Attachment 4 Page 6 of 8 Article 45.12 Demolishing or Moving Buildings. // 45.12.100 Demolition of Dwellings. 1. Definitions. a. "Building Official" means the person appointed by the City Manager to enforce the provisions of the Building Code, or designee. b. "Certified Deconstruction Contractor" means as defined in LOC 24.06.020. c. "Deconstruction" means as defined in LOC 24.06.020. db. "Demolition" or"demolish" means removal of 50% or more of the total surface area of exterior walls or perimeter foundation of a residential structure as it existed on June 2, 2022, either as a single project or cumulatively over five years or less. ec. "Exterior wall"for the purpose of this section 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. 2. The owner of real property upon which a dwelling exists that the owner intends to demolish shall: a. Not less than 15 consecutive days before commencing work to demolish the dwelling, complete a written certification that the property will be posted and abutting property owners notified pursuant to subsection (2)(b) of this section, and submit the certification to the Building Official; b. Not less than 14 consecutive days before commencing work to demolish a dwelling: i. Post a public sign displaying a notice of demolition (form of sign available from the Building Official)on the subject property or access easement abutting the property, in a location that is clearly visible and readable from vehicles traveling on a public street and to persons walking by the property; and ii. Mail a notice of demolition (form of notice available from the Building Official)to the street address of each abutting residential property informing residents of the demolition; and c. Maintain the posting for 14 consecutive days following the posting of the property and until the demolition commences. Attachment 4 Page 7 of 8 3. Notice of Demolition. The posted and mailed notices of demolition shall state that the owner intends to commence demolition for the dwelling(s)on the property, and include the date of posting or mailing, planned date or dates of demolition, and contact information for the owner. 4. If demolition activities cease on the property for more than 60 days, a new notice of demolition is required pursuant to subsection (2) of this section. 45.12.110 Deconstruction of Dwellings Required, Demolition of residential structures built in the year 1940 or earlier shall be by deconstruction only and follow the procedures for deconstruction under LOC 24.06.050, LOC 24.06.070 and LOC 24.06.080, *** Attachment 4 Page 8 of 8