Add Detention Facility Impact Fee Code to ensure fair cost sharing in high-impact land uses and to reduce burden on Portland taxpayers (add Code Chapter 5.80)

The Detention Facility Impact Fee establishes a framework for addressing the extraordinary public costs associated with detention facilities in the City of Portland. The proposed change creates an annual impact fee levied on private property owners who lease or permit their property to be used as detention facilities. The revenue generated from this fee will be dedicated to mitigating the unique costs that detention facilities create, including but not limited to police overtime, environmental cleanup, public health services, and support for Portland households and businesses directly impacted by facility operations. Detention facilities, whether operated by government agencies or private contractors, consistently impose unique costs on City infrastructure and services that are not generated by other land uses. These costs include heightened demand on police and emergency response, disproportionate use of public safety resources, and environmental or community health impacts. Without a dedicated revenue stream, these expenses fall to the City's general fund, effectively ensuring that the substantial costs of a highly specialized land use are subsidized by small businesses and residents. The Detention Facility Impact Fee shifts this financial burden away from residents and onto the property owners who directly benefit from leasing their property for detention use. Impact fees are a well-established policy tool used by cities to ensure that the costs and externalities of specialized land uses are borne by those who profit from them rather than by the public. This legislation adapts that model to the detention facility context, ensuring that the public is not left to absorb costs arising from a highly specialized land use. This ordinance further addresses, in the context of detention facilities, the particular harms of 1) release of chemical substances and residues into public rights-of-way and 2) contamination that renders nearby properties, such as apartment complexes, unsafe. This ordinance allows the City to impose civil penalties on a property owner who allows their land to be used for detention if they cause or fail to prevent these environmental harms. The ordinance allows the City to use the revenue from those penalties for enforcement and to reimburse property owners or occupants in the vicinity of that facility for cleanup, remediation, and protective measures taken in response to the facility's environmental nuisance. In line with the Detention Facility Impact Fee, these regulations ensure that the public, specifically individuals and families that happen to live and work in the vicinity of a detention facility, are not asked to subsidize and absorb the significant costs of the facility, introduced by the decision of the property owner to financially benefit from this costly land use.

Revenue from the Detention Facility Impact Fee will be used exclusively for mitigation of facility-related costs, such as City enforcement, environmental remediation, public health services, police overtime, and community safety programs. In addition to offsetting direct City expenditures, the fee will help compensate for the economic and social harms borne by community partners and neighborhood organizations that are adversely impacted by detention facility operations.

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