passed ordinance

Extend Lloyd Business District property management license fee for an additional ten years and amend District Property Management License Code to update fees and due dates (amend Code Sections 6.06.260 and 6.06.270)

housing
houselessness
transportation
code amendment

Introduced by: Former Mayor Ted Wheeler
Status: Passed

Impact statement

Purpose & background

The Lloyd Enhanced Services District (Lloyd ESD), established in Portland City Code (PCC) Chapter 6.06 and specifically described in PCC 6.06.250 requires the City Council to conduct a public hearing(s) to determine whether the Lloyd ESD property management license fee should be terminated. This is required in 2024 and every ten years thereafter. The Lloyd ESD was formed in 2001 at the request of property managers/owners to allow them to fund additional transportation management and assistance, community engagement and resource sharing, neighborhood promotion, right-of-way landscaping projects, and affordable housing assistance to those experiencing houselessness in the Lloyd District. This District has been in existence since 2001. The proposed amendments to City Code 6.06.260 changes the property management fee structure, originally based on property tax assessments in 2010-2011, and adjusts to inflation rates over the past ten years, yielding a more robust projected operating revenue for the Lloyd ESD, which plans to add right-of-way cleaning to the bevy of work they currently provide their District. In addition, the timing of payment due dates is adjusted to conform to standard practices in other ESDs. These rate changes were requested by and approved by the Lloyd ESD Board.

Financial impacts

This ordinance increases the amount of the license fee paid by district property owners. This increases the resources available to the ESD Board to spend on procuring additional services within the district. The City charges administrative fees to collect and distribute these fees. These fees total between 3 and 4% of the total revenue collected and cover the Revenue Division’s costs to collect and distribute fees, a variable fee associated with the costs of the City’s ITS system replacement and a portion of the cost of the ESD Coordinator position housed within the Office of the CAO at OMF. These details are described in the new 5-year contract scheduled to be approved at the same City Council meeting by separate companion ordinance.

Community impacts

Providing additional services for this District contributes to the attractiveness and vitality of the Lloyd ESD, enhancing the vibrancy for all who live, work, or visit the Lloyd District. Furthermore, these services increase the District’s resiliency and aids in the attraction and retentions of businesses, residents, and visitors from near and far. Home to the Moda Center and the Oregon Convention Center, a vibrant and attractive Lloyd District is imperative due to this District’s ability to attract conferences, exhibitions, and sports fans from all over. A vital Lloyd District increases tourism and business revenue, which increases city tax revenue that supports the General Fund and other public services. The Lloyd ESD conducted extensive outreach to district ratepayers to assess the value of their services and build support for district renewal, with gradual rate increases reflected in the proposed PCC amendments. The City mailed a postcard and letter about the renewal process on November 17th. The mailer included a link to a survey and provided information on how to submit comments, attend a virtual open house on November 28, or participate in the City Council hearing on December 13.

▸ Full text (the legislation as adopted)

The City of Portland ordains: Section 1. The Council finds: Pursuant to Section 6.06.260 of the City Code, the City has established a property management license fee within the Lloyd Business District, also called the “Lloyd District” or the “District.” The purpose of the license fee is to provide revenues to fund supplement transportation management activities, cleaning services, funding for community-based partner organizations including the Lloyd Community Association and Right 2 Dream Too, and various economic development services within the District. Sunset review of the District is required by City Code Section 6.06.280 every ten years. Resolution No. 37043, approved by the City Council on November 20, 2013 extended the District for an additional ten years through January 31, 2024. In preparation for renewal, Lloyd BID, Inc. (the City’s hired contractor to perform District services) conducted outreach within the District to assess the District’s effectiveness and gauge support for continuation. This outreach included four open houses, several email communications, two online surveys which received 93 responses and a mailing to all ratepayers. Feedback received through these efforts were overwhelmingly supportive of continuing the District for an additional 10 years. The Lloyd District Enhanced Services District Board of Directors submitted a formal request for renewal on September 29, 2023. This request is attached as Exhibit A to this ordinance. To reflect recent inflation allow the expanded service provision desired by the District Board, gradual increases to the rates payable by licensees are proposed. These changes are supported by the District Board and require amendment of City Code Section 6.06.260. These amendments are detailed in Exhibit B to this ordinance. The parties desire to make minor adjustments to District license fee due dates for consistency with City practices in other enhanced services districts. These changes would take effect in 2025 and are detailed in Exhibit B to this ordinance. Notice of the City Council hearing on this ordinance was mailed to the current District licensees on November 20, 2023 as required by City Code Section 6.06.280. On August 13, 2020, the City Auditor released a report regarding all enhanced service districts in Portland, including the Lloyd District, entitled “Enhanced Service Districts: City provides little oversight of privately funded public services” which found the City failed to provide guidance on district governance or allowable services, and provided little oversight of services provided in districts. Renewals of other enhanced services districts since 2020 have included new contract provisions intended to increase oversight and transparency of district services and operations, as well as a commitment to work with the City on future changes in response to the Audit. A new Lloyd management agreement will include similar provisions for oversight, subcontracting and reporting to those in other recent enhanced services district management agreements, and the District is committed to working with the City to implement future changes to the enhanced services district program as needed. NOW, THEREFORE, the Council directs: The Lloyd Business District property management license fee is renewed for ten years beginning February 1, 2024. City Code Sections 6.06.260 and 6.06.270 are amended as shown in Exhibit B.

Tally

4 yea 0 nay 1 other