From: Dan Huff
Sent: Wed Aug 09 16:20:19 2017
To: Gerald Fisher
Subject: FW: SDC Installment Plans
Importance: Normal
-----Original Message-----
From: Jimmy Thompson [mailto:jthompson@cityofmolalla.com]
Sent: Wednesday, August 09, 2017 3:22 PM
To: Dan Huff <dhuff@cityofmolalla.com>
Subject: RE: SDC Installment Plans
The $200k would allow then to pay $10k twice a year for the next 10 years,
plus interest, in the case of the daycare. Far more managable.
And, I have actually had it brought up with the business group I meet with.
They didn't know we even offered it. If all we do is tell a potential
developer it is going to be $200k, that might be enough tp send them
elsewhere, whereas, if we stop them from the sticker shock by mentioning an
installment plan, we might see more development.
The county has roughly $100k on the books, primarily residential.
It can also be helpful if someone is doing an add on to their home, or
otherwise.
I think even if we only get PR for being more business friendly it might be
worth it--and no real loss to us.
Currently they get only 2 years, even though they can pay a 5th. The code
doesnt make sense.
Jimmy
----- Original Message -----
From: Dan Huff <dhuff@cityofmolalla.com>
To: Jimmy Thompson <jthompson@cityofmolalla.com>
Sent: Wed, 09 Aug 2017 15:12:28 -0700 (PDT)
Subject: RE: SDC Installment Plans
I believe only a couple of developers have even considered the current
installment plan and backed off because it didn’t really get them anywhere.
-----Original Message-----
From: Jimmy Thompson [mailto:jthompson@cityofmolalla.com]
Sent: Wednesday, August 09, 2017 3:00 PM
To: Dan Huff <dhuff@cityofmolalla.com>
Subject: SDC Installment Plans
Dan,
I was reviewing our code (13.14.095) regarding installment plans again, and
that really does not do a whole lot.
The county allows semi-annual payments over a 10 year period after a $500
administrative fee, secured by a lien on the property, and accruing interest
at prime +2 or prime +3%. I really think a similar program would be
beneficial to us. For one, in the case of the daycare--or any other business
trying to get started, it eases the entry costs. Secondly, it actually
provides the city a better return than the money sitting in the LGIP.
Here is the language from county code (11.03.040):
D. When a TSDC is due and payable, the parcel owner may apply to the County
for payment in twenty (20) semiannual installments, secured by a lien on the
property upon which the development is to occur, to include interest on the
unpaid balance, if that payment option is required to be made available to
the permittee by ORS 223.207.
1. A parcel owner may request installment payments for up to $500,000 in
TSDC assessments; any remaining balance must be paid in full prior to
issuance of the DEVELOPMENT PERMIT.
2. The County shall prepare the agreement for installment payments, which
shall include a waiver of all rights to contest the validity of the lien,
except for the correction of computational errors. The application fee for
this option shall be set by resolution.
3. The applicable interest rate shall be determined as follows:
Principal Interest Rate
$0-24,999 Current prime lending rate plus 3.0 percentage points
$25,000-$500,000 Current prime lending rate plus 2.0 percentage points
4. An applicant requesting installment payments shall have the burden of
demonstrating the authority to assent to the imposition of a lien on the
property and that the interest of the permittee is adequate to secure
payment of the lien. The Department Director may order the imposition of the
lien as recommended by the Department.
5. Upon the Department Director, or Director’s Designee, order the
Department shall cause the lien to be recorded on the lien docket kept by
the County Clerk. From that time the County shall have a lien upon the
described parcel for the amount of the TSDC, together with interest on the
unpaid balance at the rate established by the Department Director, or
Director’s Designee. The lien shall be enforceable in the manner provided in
ORS Chapter 223, and shall be superior to all other liens pursuant to ORS
223.230. Upon satisfaction of the obligation the Department Director shall
request the County Clerk to release the lien.
6. With the passage of Article XI, Section 11 B of the Oregon Constitution,
progressive payment shall be taken for all unpaid debt. The Department
Director, or Director’s Designee, will be notified immediately by the
Department of any account thirty (30) days or more past due. The Department
Director shall then send a letter to the defaulting party demanding payment
no later than thirty (30) days following the date of the demand letter. The
demand letter shall require payment of all amounts to bring the account
current including any applicable interest or other penalty and shall demand
full compliance with a “time is of the essence” clause according to the type
of obligation at issue. The time for payment to bring the account current
shall be left to the best professional judgment of the Department Director
depending upon the type of debt and amount owed but in no event shall time
for payment exceed the next payment due date or any other requirements
imposed by debt instruments executed by the County in favor of any third
party or other agreements that may have been executed by the County.
7. If payment has not been made following the first notice, the Department
Director shall refer the matter to legal counsel who shall send a second
notice, detailing the prior defaults and notices thereof indicating that
further action, including legal action, will be taken.
8. If, following the second notice, time for payment has expired, then legal
counsel shall include the defaulting person or entity on a list entitled
“Collection/Foreclosure” and consult with appropriate staff regarding the
most efficient and cost effective method for collection of the debt.
9. Legal counsel shall determine if the matter will be retained for pursuit
by legal counsel, or referred to a debt collection agency or other method
for collection. If retained by legal counsel, a demand letter to the debtor
shall be sent declaring a default, accelerating the entire balance and
requiring full payment within a reasonable period of time not to exceed
thirty (30) days. If no satisfactory response is forthcoming, legal counsel
may extend the time limits for legal action in cases of extraordinary
hardship; such determination shall be at the sole discretion of legal
counsel and not subject to review by the Board.
10. Upon referral and direction by the Board, counsel may proceed with
foreclosure of the assessment lien or take other legal action authorized by
law which is deemed most appropriate under the circumstances.
11. If the legal counsel determines that it is most effective to use the
services of a collection agency, legal counsel may solicit proposals and
make a recommendation to the Board regarding selection of a firm consistent
with the Clackamas County Local Contract Review Board Rules and ORS Chapter
279. Legal counsel shall be authorized to negotiate a contract regarding the
amount of compensation, length of term and methods of collection, subject to
final review and approval by the Board. However, the contract shall
specifically provide that the collection agency shall fully comply with the
Fair Debt Collection Practices Act, 15 U.S.C. 1601, et seq., and shall
provide for full indemnification and protection of the County from any and
all claims for unfair or unlawful debt collection practices.