Update April 5, 2018: The second reading for the LTIC ordinance has been scheduled for the week of April 9th, 2018.  The date of the second reading of the council package will be posted Friday, April 6, 2018 by 3:00 pm https://www.portlandoregon.gov/auditor/26997.

In Portland, less than 4% or 50 miles of the 1,181 miles of streets are unimproved – dirt and gravel. Another 17% or 200 miles of streets are under-improved – some pavement and/or sidewalks, but no street curb. Over the years, the pace of infill development on these neighborhood streets have increased, but the policies for building complete and connected improvements has not kept up. These 250 miles of unimproved streets make it difficult for neighbors to safely and easily walk through their communities to get to work, school, parks and shopping destinations.

In Spring 2016, the City adopted the Local Transportation Infrastructure Charge (LTIC), a charge on new infill development occurring on these streets in single-dwelling residential zones.  The LTIC provides a more predictable and simple option for developers to meet their obligations.

At $600 a linear foot for a ½ street improvement, it costs $6.3 million per mile to construct a complete street. 

600 x 2 (full street) = $1,200 a linear foot x 5280 linear feet (in 1 mile) = $6.3 million.

Allocation Methodology: Council directed the Bureau of Transportation to collect the LTIC funds but not spend them until the allocation methodology was approved. PBOT has completed the implementation of a community centered plan (see also appendices: phone survey results, resident focus group summary, resident focus group exit questionnaire, neighborhood leaders focus group notes, neighborhood leaders focus group exit questionnaire, neighborhood streets program handout) to design the allocation methodology, the project team conducted research, engagement, outreach and feedback activities (including an online survey and phone survey) to develop the allocation methodology, standards and funding. Click here to view the 2018 Allocation Methodology proposal.

Once approved, the Allocation Methodology will be applied in 2018 as follows: 

- Map: 2018 Step One: Equity

- Map: 2018 Step Two: Effectiveness

- Maps: 2018 Step Three: Project Readiness

LTIC Maximum: As of July 2017, $1.8 million has been collected.  

* LTIC collection totals as of July 2017

To address applicants’ concerns regarding certain property’s maximum frontage being unusually long, thereby making the LTIC cumbersome, PBOT is proposing the LTIC Maximum* along with adding affordable housing to LTIC exemptions.

R2.5: no maximum

R5: 50 feet x LTIC ($600) = $30,000

R7: 70 feet x LTIC ($600) = $42,000

R10: 100 feet x LTIC (600) = $60,000

R20 & RF: 200 feet x LTIC (600) = $120,000

• Proposed fees as of January 1,2018

Neighborhood Streets Program

Based on community input, the Neighborhood Streets program framework has been developed to include additional program elements to further address deficient neighborhood streets infrastructure.  Proposed elements are:

1. Ongoing maintenance of gravel streets
2. Neighborhood collector enhancements
3. Residential Local Investment District (LID) enhancements

Click to view a map of LTIC eligible streets in Portland.

When and Where the LTIC is Applied

Located within a Single-Dwelling Zone as identified in Title 33 of the City Code. As of March 2016, Single-Dwelling Zones included RF, R20, R10, R7, R5, R2.5. (Note: zoning districts and definitions can change. Confirm Single-Dwelling Zones in Title 33.); and

Frontage on a local service traffic street without a curb (i.e. unimproved or under-improved street), other than a local street that has been formally accepted by the Bureau of Transportation as fully built under an alternative street standard not requiring a curb.

Exemptions
The LTIC does NOT apply to:
»» Accessory dwelling units
»» Disaster replacement
»» Alterations of existing structures
»» Property line adjustments or lot confirmations
»» Properties that have already paid the LTIC for a previous land use or development action
»» Instances when applicant elects to build the required frontage improvements on adjacent local service traffic streets to the City’s adopted standard. An applicant cannot appeal the frontage improvement requirements as part of this exemption.

Calculating the Charge

The LTIC is based on the total linear frontage of the property adjacent to an under-improved local service traffic street without a curb. The Bureau of Transportation staff will assess the LTIC using information included in the permit application.

Total Length (linear feet) of qualifying property frontage x LTIC rate* = $600/linear foot

^{*as of March 2016}

The initial rate is based on historical data for the cost of building standard local service traffic streets in Portland and is subject to change. Consult the City’s Fee Schedule for the most current rate.

• Time of payment
  »» For new residential building permit applications, payment is due prior to issuance of permit.
  »» For land division partitions, the LTIC is due prior to the approval of the final plat.

For more information regarding the LTIC, contact at 503.823.6964 or kurt.krueger@portlandoregon.gov.

For information on the Neighborhood Street Program, contact Anne Hill at 503.823.7239 or anne.hill@portlandoregon.gov.