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City of Portland

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17.13.070 SDC Credits.

(Amended by Ordinance Nos. 172732, 172758, 173386, 174617, 181669, 187150 and 189244, effective November 7, 2018.)  SDC Credits:

A.  The City may grant a Credit against the Parks SDC, which is otherwise assessed for New Development, for any Qualified Public Improvements constructed by or conveyed by the Applicant as part of that New Development.  At the time the application for a credit is made, the New Development must be identified by a Building Permit Number. Credit will not be allowed for a Qualified Public Improvement that was conveyed more than 36 months prior to the date of the request for the Credit, unless a Development Agreement provides otherwise.  The Applicant bears the burden of evidence and persuasion in establishing entitlement to an SDC Credit and to a particular value of SDC Credit.

B.  To obtain an SDC Credit, the Applicant must specifically request a Credit prior to the City’s completion of the final inspection for the New Development.  In the request, the Applicant must identify the improvements for which Credit is sought and explain how the improvements meet the requirements for a Qualified Public Improvement.  The Applicant must also document, with credible evidence, the value of the improvements for which Credit is sought.  If, in the Administrator’s opinion, the improvements are Qualified Public Improvement, and the Administrator concurs with the proposed value of the improvements, an SDC Credit can be granted, if approved as outlined below.  The value of the SDC Credits under this section shall be determined by the Administrator based on the cost of the Qualified Public Improvement, or the value of Real Property Interests, as follows:

1.  For Real Property Interests, the value shall be based upon a written appraisal of fair market value by a qualified, professional appraiser based upon comparable sales of similar property between unrelated parties in an arms-length transaction.

2.  For improvements yet to be constructed, value will be based upon the anticipated cost of construction.  Any such cost estimates must be certified by a professional architect or engineer or based on a fixed price bid from a contractor ready and able to construct the improvement(s) for which SDC Credit is sought.  The City will give immediate credits based on estimates, but it will provide for a subsequent adjustment based on actual costs: a refund to the Applicant if actual costs are higher than estimated, and an additional SDC to be paid by the Applicant if actual costs are lower than estimated.  The City will inspect all completed Qualified Public Improvement projects before agreeing to honor any credits previously negotiated.  The City will limit credits to reasonable costs.  Credits will be awarded only in conjunction with an application for development.

3.  For improvements already constructed, value will be based on the actual cost of construction as verified by receipts submitted by the Applicant.

C.  The Administrator will acknowledge receipt of the Applicant’s request in writing within 21 days of when the request is submitted.  The Administrator will confirm whether the application is complete or indicate additional information needed.  The Administrator will provide a written explanation of the process for making the decision on the SDC Credit request.

1.  The “Request for Parks SDC Credit for Qualified Public Improvement” (Form PSDC-7) and accompanying information will be sent to the Parks SDC Administration Section, who will prepare a staff report and convene the SDC Credit Review Committee.  If Requests are received, the Committee will be convened quarterly.  Applications not deemed complete 1 month prior to a committee meeting may not be heard until the following quarterly meeting.  The Committee will be appointed by the Commissioner-in-Charge, after consultation with the Director, and include, but not be limited to, representatives of the following interests:

a.  Development Community (e.g., Metropolitan Home Builders Association).  Up to two representatives.

b.  Environmental (e.g., Portland Audubon Society)

c.  Public Interest (e.g., League of Women Voters, Urban League).  Up to two representatives.

d.  Neighborhood (one for each SDC Sub-Area)

e.  Park Advocate (Portland Parks Board Member)

f.  Business Community (e.g., Portland Business Alliance)

2.  A representative of the Commissioner-in-Charge may attend and participate in the discussion but may not vote.

3.  The Applicant may attend the Committee meeting to respond to questions and provide relevant testimony but may not be present during the Committee’s deliberation and vote.  The Administrator will present the public interest to the committee, including staff findings regarding the application.  City Attorney staff may be present to respond to any legal questions.  The Committee will review each proposal and the Administrator will provide a record of the Committee members present, the recommendation, along with any minority viewpoints, and minutes of the Committee’s discussion, including a summary of factors considered to the Director and Commissioner-in-Charge.  If a member of the Committee has a conflict of interest related to a specific application, the member must withdraw from the deliberations and recommendations.  Each neighborhood interest representative may only participate in discussions of and recommendations for applications that pertain to the SDC Sub-Area that the member does not represent. 

4.  The Director (for SDC credits under $250,000) or Commissioner-in-Charge (for SDC credits of $250,000 and over) will make a decision within 30 days of the SDC Credit Review Committee meeting date.  If a minority viewpoint is presented along with a majority recommendation, the Commissioner and Director will meet to review jointly before issuing a decision.

5.  Copies of the decision and the Committee recommendations will be shared with the applicant and members of the SDC Credit Review Committee digitally, or as a hard copy if requested.  Copies of the decision and Committee recommendations will also be available in the digital City Archives, with a link on the Parks SDC Webpage.    

D.  If the Applicant disputes the decision to grant or deny an SDC Credit, including the amount of the Credit, the Applicant may appeal as provided in Section 17.13.120.

E.  When the construction or donation of a qualified public improvement gives rise to a credit amount greater than the improvement fee that would otherwise be levied against the project receiving development approval, the excess credit may be applied against improvement fees that accrue in subsequent phases of the original development project.  For purposes of this paragraph, “subsequent phases of the original development project” means additional New Development that is approved as part of the same regulatory development approval (such as elements approved as part of the same conditional use master plan or planned unit development) or other portions of the same “site” (as defined by PCC 33.901.030) that are explicitly defined in the application for SDC credits as subsequent phases of the original development project.  For multi-phased developments, the applicant must describe all subsequent phases at the time application is made for SDC credits and must document to the satisfaction of the SDC Administrator that the subsequent phases are integrally connected with the original development rather than independent projects.

F.  Parks and Recreation SDC Credits are void and of no value if not redeemed with the City for payment of a Parks and Recreation SDC within 5 years of the date of issuance.

G.  Notwithstanding any other provisions of this section, with respect to conveyances of Real Property Interests specified in Development Agreements adopted before June 21, 2000, the value of the credit will be 25 percent of the appraised value of the Real Property Interest.