[Ord. No. 2831, Added, 12-3-2019; Ord. No. 2916, Amended, 11-15-2022]
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.
[Ord. No. 2831, Added, 12-3-2019]
As used in this article, unless the context requires otherwise:
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.
Means the person holding the position of City Manager of
the City of Lake Oswego, or that person’s designee.
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.
Means as defined in LOC § 45.12.100(1)(b).
Means the permit required under LOC § 45.02.200.
Means a single-family dwelling or a duplex, as defined in LOC § 50.10.003.2.
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. No. 2831, Added, 12-3-2019]
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.
[Ord. No. 2831, Added, 12-3-2019; Ord. No. 2916, Amended, 11-15-2022]
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;
c.
Any residential structure located on publicly owned property;
d.
Any residential structure being demolished to clear a site for development of 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;
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 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.
[Ord. No. 2831, Added, 12-3-2019; Ord. No. 2916, Amended, 11-15-2022]
1.
The demolition tax imposed in LOC § 24.06.030 shall be waived 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 reconstruction, 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:
a.
Name of the certified deconstruction contractor;
b.
Whether heavy machinery will be used on the deconstruction project
(exclusive of foundation removal); and
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;
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.
[Ord. No. 2831, Added, 12-3-2019]
The City Manager is authorized to adopt rules, procedures, and
forms to implement the provisions of this article.
[Ord. No. 2831, Added, 12-3-2019; Ord. No. 2916, Amended, 11-15-2022]
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
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 or refund will be terminated and the entire exempted or
refunded amount of the demolition tax, plus the processing fewe, 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.
[Ord. No. 2831, Added, 12-3-2019]
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.
