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17.15.010 Scope and Purposes.

(Amended by Ordinance Nos. 181322, 182652 and 184756, effective November 1, 2011.)

A.  New development within the City of Portland contributes to the need for capacity increases for roads, multi-modal transportation and related transportation improvements, to enable new development to take advantage of transit systems and, therefore, new development should contribute to the funding for such capacity increasing improvements.  This SDC will fund a portion of the needed capacity increases for arterial, boulevard and collector roads, multi-modal transportation improvements and associated bus and transit improvements, sidewalks, bicycle and pedestrian facilities, street lighting and stormwater drainage  and treatment facilities, and other public facilities specified in the City of Portland Transportation System Plan.

B.  ORS 223.297 through 223.314 grant the City authority to impose a SDC to equitably spread the costs of essential capacity increasing capital improvements to new development. 

C.  The SDC is incurred upon application to develop property for a specific use or at a specific density.  The decision regarding uses, densities, and/or intensities causes direct and proportional changes in the amount of the incurred charge.  This SDC is separate from other fees provided by law or imposed as a condition of development.  It is a fee for service because it contemplates a development’s receipt of transportation services based upon the nature of that development.

D.  The SDC imposed by this Chapter is not a tax on property or on a property owner as a direct consequence of ownership of property within the meaning of Section 11b, Article XI of the Oregon Constitution or legislation implementing that section.  This Chapter does not shift, transfer or convert a government product or service, wholly or partially paid for by ad valorem property taxes, to be paid for by a fee, assessment or other charge, within the meaning of Section 11g, Article XI of the Oregon Constitution.

E.  The funding provided by this Chapter constitutes a mandatory collection method based upon the guidelines set forth in ORS 223.297 through 223.314 to assure the construction of capacity increasing improvements to arterial, boulevard and collector roads as well as to bicycle, pedestrian and transit facilities as contemplated in the Transportation Element of the City Comprehensive Plan, City of Portland Transportation System Plan and the list of projects, referred to as the SDC-CIP, to be funded with money collected under this Chapter and incorporated as Table 3-2 in the attached Update of Transportation System Development Charges rate study, (dated July 2007), as well as Table 3-2 in the attached North Macadam Transportation System Development Charge TSDC Overlay Rate Study, (dated January 2009) and Table 3-1 in the attached Innovation Quadrant Transportation System Development Charge Overlay Project Report (dated May 2011).  The SDC-CIP is not to be confused with the City of Portland Capital Improvement Program.

F.  This Chapter is intended only to be a financing mechanism for the capacity increases needed for major City traffic and collector streets, multi-modal improvements associated with new development and capacity increasing transportation improvements and does not represent a means to fund maintenance of existing roads or the elimination of existing deficiencies.

G.  The City hereby adopts the methodology report and rate study entitled Update of Transportation System Development Charges, (dated July 2007), as well as the attached North Macadam Transportation System Development Charge TSDC Overlay Rate Study, (dated January 2009), and the attached Innovation Quadrant Transportation System Development Charge Overlay Project Report (dated May 2011) and incorporates herein by this reference the assumptions, conclusions and findings in the report which refer to the determination of anticipated costs of capital improvements required to accommodate growth.  These reports are hereinafter referred to as “City Rate Study” and is attached to Ordinance No. 181322 as Exhibit A, “North Macadam Overlay Rate Study”, attached to Ordinance No. 182652 as Exhibit A, and “Innovation Quadrant Overlay Project Report”, attached to  Ordinance No.184756 as Exhibit A.  The City Council may from time to time amend or adopt a new City Rate Study by Ordinance.

H.  The Transportation SDC provided for in this Chapter is designed to help finance the Transportation System facilities listed in Table 3-2 in the SDC-CIP as a means of ensuring that adequate capacity is maintained in the City’s Transportation System.  However, the City specifically recognizes that the entire project list will likely not receive full funding from the proceeds of this SDC, and it is unlikely that every one of the projects listed will be constructed.  The City recognizes that the project list in the SDC-CIP is not complete but that construction of other projects, not included on the SDC-CIP, may also advance the policy objective of maintaining capacity in the City’s Transportation System. 

I.  In conjunction with the Transportation System capacity objectives of this Chapter, the City also seeks to encourage certain types of development by granting a partial or full credit for the Transportation SDC.  In particular, the city places a high priority on the development of low-income housing.  The City has also recognized a higher public purpose in Transit Oriented Development (TOD) in creating a more dense, mixed-use urban design that promotes and integrates transit ridership with housing.  Likewise, the development of low-income housing promotes the public purpose of providing quality housing options for families and individuals earning 60 percent or less of the Area Median Income.  Providing a credit for the Transportation SDC will make it possible to develop more and better low income housing within the metropolitan area where jobs and shopping are available by transit and non-motorized modes.  For both the low income housing and TOD credit, the City has made the policy decision that the entire SDC-CIP project list may not be fully funded, but that other policy objectives, equally important as maintaining transportation system capacity, will be advanced.