Philomath council finalizes Landmark Drive LID assessments, gives owners extra time to arrange payments

The Philomath City Council on May 11 adopted Ordinance 893, approving the final assessments for the Landmark Drive Local Improvement District and directing staff to include extra leeway in payment agreements so property owners effectively have 60 days before interest begins.

The council opened a public hearing at 7:10 p.m. and heard no live testimony; staff told the council construction is complete, the final contract costs came in roughly in line with the engineer’s estimate and one parcel previously removed from the district (a parcel assessed at $29,785) had its assessment redistributed across the remaining properties based on lot acreage. City Manager Chris said the municipal practice used the lot size method in the engineer’s report because it was the most equitable basis for dividing the total project cost.

Why it matters: the ordinance converts the completed public-work costs into individual property assessments. If property owners do not pay or enter an agreement, the assessment becomes a lien against the property. Staff recommended, and council approved, standard financing terms that limit the interest rate and spread repayment over a decade while allowing flexibility for payment arrangements.

City staff described the proposed finance terms as 10 years at a 5% annual interest rate, with a 30‑day grace period before interest begins; council then directed staff to reflect an additional 30 days of practical leeway in the city’s payment agreement so owners effectively have 60 days before interest accrues. “We essentially give the property owners 30 days without charging them interest…so then after that 30 days, that’s when the city will start charging interest,” City Manager Chris said; staff later confirmed the council wanted the payment-agreement language to provide additional flexibility for owners.

Council members raised questions included whether losing small portions of property for public right-of-way triggers a county reassessment and whether property owners on the side of the street with the sidewalk were being charged a premium. Staff said the sidewalk cost is part of the overall project cost and is allocated across properties by acreage after dedications; the 18 square-foot corner adjustments resulted from ADA ramp requirements.

A property owner’s written complaints — including a letter attributed to Shane McConnell raising concerns about increased property taxes and alleged damage to a parking area — were included in the packet. City Manager Chris told the council he had not previously received a complaint about construction crews entering private property and said he would be surprised if the city had caused the damage described in the letter; he noted it would be difficult to reconstruct events more than a year after construction.

A motion to add an extra 30 days of practical leeway via the payment agreement (bringing the effective grace period to 60 days before interest applies) passed unanimously. The city recorder then called a roll‑call vote on Ordinance 893 and the ordinance was adopted as read.

What happens next: the city recorder will follow the ordinance’s notice steps and notify property owners of the assessments and of payment-agreement options; outstanding amounts not paid within the established period become a lien unless an agreement is reached. The council’s action finalizes the assessments under the engineer’s methodology and gives staff the discretion to structure initial agreements with the extra 30‑day leeway the council authorized.