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The City of Portland, Oregon

Portland Bureau of Transportation

Phone: 503-823-5185

Fax: 503-823-7576

1120 SW Fifth Ave, Suite 1331, Portland, OR 97204

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How can you form a Local Improvement District in your neighborhood?

Step One: Getting Started
Property owners almost always initiate the LID process. The first things to do if you are considering forming an LID are to:
  • Contact the Bureau of Transportation at 503-823-5648.
  • Let us know the general scope of what you would like done. This may change, but we will work with you and your neighbors to develop a project scope.
  • Talk to other nearby property owners to see whether they would be interested in attending a meeting.
  • Work with us to schedule and host the meeting, during which City staff will work with you and your neighbors to clarify the scope of the proposed project, explain the LID process, and discuss possible alternatives. City staff will notify you and your neighbors of this meeting.
If there is sufficient interest among property owners on your street to proceed, City staff will:
  • Inspect your street.
  • Develop one or more alternatives for improvements.
  • Provide an initial project cost estimate.
  • Provide property owners with a preliminary cost estimate for each individual property and explore alternatives for sharing costs.
  • Identify which properties benefit from the project and therefore should be included in the LID.
  • Identify properties whose owners who should be asked to sign the LID petition.
  • Communicate horizontal impacts to property owners.
  • Prepare the petition.
  • Organize a more formal follow up meeting, if desired.
  • Individually distribute the petitions to property owners for their consideration.
If a majority of property owners within the proposed LID have signed a petition in favor (as measured by assessment methodology), then City staff will:
  • Communicate to all property owners opportunities to provide comments on the project to City Council.
  • Submit to a City Council vote whether to pass the Resolution of Intent and direct initiation of LID formation proceedings.
  • Modify the proposal as appropriate, incorporating feedback from property owners and City Council, and will schedule an LID Formation Hearing.
  • Notify property owners of the LID Formation Hearing.
  • Respond to and present to City Council any written remonstrances received.
  • Begin design work if City Council approves the project by voting in favor of the LID. 
  • If City Council declines to form the LID, no further action is taken.
Step Two: Project Design
The design phase is a cooperative effort between property owners and City staff. City staff will hold public meetings to ensure that owners' and residents' perspectives are incorporated into the project design. We encourage all property owners to give their input to ensure that the project is built to their satisfaction. Property owners will be involved in decisions about:
  • Driveway widths
  • Driveway connections to the street
  • Parking availability
  • Street widths
  • Preservation of existing vegetation and fences
Certain street features will be required to comply with safety and maintenance needs, and to accommodate stormwater drainage and environmental concerns, emergency vehicles, and pedestrian access.
Step Three: City Council Authorization of Construction Contract
Once design work has been completed, City staff will:
  • Prepare a bid package for interested contractors.
  • Advertise for bids from responsible, qualified contractors.
  • Seek City Council authorization to award the bid (smaller projects may not require City Council approval).
  • Award the bid to the lowest responsible bidder.

Step Four: Construction

City staff will:
  • Give authorization to the successful contractor to begin work.
  • Inspect the work during construction to assure that it meets all standards and specifications.
  • Work with property owners to resolve construction-related issues.
  • Work with property owners to complete a "punch list" of construction items in order to complete the project.
There may be times when the work may temporarily interfere with access to homes and driveways. Staff will coordinate project scheduling with residents to reduce inconvenience caused by construction.
Step Five: Assessments and Payments
In this final step, City staff will:
  • Ask City Council to certify the project as complete.
  • Mail property owners a notice of their proposed final assessment.
  • Arrange a public hearing before City Council so property owners may comment on their final assessment.
  • Respond to and present to City Council any written objections received.
  • Ask City Council to approve or modify the final assessments.
  • Mail a final assessment to property owners upon City Council approval of the final assessment.
  • Close out the LID, which will no longer exist.
  • Accept maintenance responsibility for the newly-constructed street.
Property owners then have 30 days to either pay the City in full or sign an assessment loan contract with the City Auditor's Office. Once property owners have received their final assessments, payments and financing are handled by the Auditor’s Office.