LAKE OSWEGO BOND ISSUE FOR WEST END BUILDING REFINANCING
QUESTION: Shall the City issue up to $20 million in general obligation bonds to refinance the West End Building property purchase? If the bonds are approved, they will be payable from taxes on property or property ownership that are not subject to the limits of sections 11 and 11b, Article XI of the Oregon Constitution.
SUMMARY: This measure may be passed only at an election with at least a 50 percent voter turnout.
On July 7, 2006 the City of Lake Oswego purchased the former Safeco Insurance property at 4101 Kruse Way, Lake Oswego, consisting of 14.08 acres with improvements including an 88,872 square foot office building, now known as the West End Building. The purchase price was $20 million. The final determination of how the property will be used has not yet occurred. Potential uses could include combined public and private uses. The purchase was made with reserve funds that were replenished through a short term line of credit. This measure authorizes up to $20 million in general obligation bonds to refinance the purchase of the property to retire the line of credit. The bonds will be payable over a period not to exceed 20 years. If the maximum amount of bonds is issued, it is anticipated that property taxes on a home with the average Lake Oswego assessed value (not real market value or sales price) of approximately $300,000 would increase by $105 per year.
EXPLANATORY STATEMENT
This measure authorizes the City of Lake Oswego to issue up to $20 million in general obligation bonds to refinance the purchase of the West End Building property at 4101 Kruse Way, formerly the offices of the Safeco Insurance Company.
On July 7, 2006 the City of Lake Oswego purchased the property for $20 million. The property consists of 14.08 acres, including an 88,872 square foot building. The purchase was made with reserve funds that were replenished through a short term line of credit. The City is currently making interest-only payments on this short term financing. If the voters approve this ballot measure, the proceeds of the bonds will be used to completely retire the line of credit.
The bonds would be payable over a period not to exceed 20 years. If the maximum amount of bonds is issued, it is anticipated that property taxes on a home with the average Lake Oswego assessed value of approximately $300,000 would increase by $105 per year ($0.35 per thousand). Assessed value is established by the County Tax Assessor and is typically lower than the real market value of property.
The building is currently being used to house Parks and Recreation Department offices and activity rooms. It is also being used for community meetings and events. However, there has not been a final determination of the use of the property. Potential City uses could include the 911 dispatch center, police department facilities, additional library services, and other public offices and recreation facilities. It is also possible that future uses could include a combined public and private use, or some type of partnership between the City and a private entity.
The City Council will adopt a process by June 30, 2008 to receive information and advice from the public as to the appropriate immediate and long term uses for the property.
A vote on this measure does not constitute a vote for or against any particular use of the property.
A “yes” vote authorizes the City to issue up to $20 million in general obligation bonds to retire the temporary line of credit and to permanently refinance the purchase of the property.
Submitted by:
David Powell
City Attorney
City of Lake Oswego
No arguments AGAINST this measure were filed.
Measure No. 3-295 | City of Lake Oswego
ARGUMENT IN FAVOR
Lake Oswego voters supported the City's purchase of the West End Building , by voting to retain the property in November, 2007. Now it is time to refinance this purchase with general obligation bonds.
The building purchase was initiated in July of 2006 using City reserve funds that were replenished through a short-term line of credit. This long-term investment should be secured with long term financing. That is why your City Council is asking for your “yes” vote on Measure 3-295.
A general obligation bond for up to $20 million to retire the line of credit on the property would result in a property tax of approximately $0.35 per thousand dollars of assessed valuation (not market value). The typical home in Lake Oswego is assessed at or below $300,000, so the average Lake Oswego homeowner would pay $105 per year over the life of the bond (20 years or less).
The optimum way to financially secure this property is by approving this bond. The City Council has resolved to adopt a process by June 30, 2008, to receive public advice and comment on the appropriate immediate and long term uses for the property.
The building is currently being used to house Parks and Recreation Department offices and activity rooms. It is also being used for community meetings and events. Potential uses could include the City's 911-dispatch center, public safety offices, additional library services and other public offices and recreational facilities. It is also possible that future uses could include a partnership between the City and a private entity.
Your “Yes” vote refinances the property and makes this community asset an even wiser investment in the future.
Vote YES on Measure 3-295.
Mayor Judie Hammerstad
Councilors Frank Groznik, Roger Hennagin, Kristin Johnson, Donna Jordan, Ellie McPeak and John Turchi.
(This information furnished by Judie Hammerstad, Mayor, Lake Oswego City Council )
The printing of this argument does not constitute an endorsement by Multnomah County, nor does the county warrant the accuracy or truth of any statements made in the argument.
Measure No. 3-295 | City of Lake Oswego
ARGUMENT IN FAVOR
Say Yes to Measure 3-295
Our City Our Future urged the voters of Lake Oswego to retain the West End Building (WEB) in November. You did!
The visionary purchase of the former Safeco site - 14 acres and an over 88,000 square-foot building - will serve the civic and recreational needs of our community for many years. It was a wise decision .
The city financed the purchase of this property with a short-term line of credit. Now it's time to take advantage of Lake Oswego's Triple-A bond rating by refinancing our long-term investment with long-term financing through a general obligation bond of up to $20 million.
Why now?
The current bond market for a Triple-A rated city like Lake Oswego makes the interest rates very attractive. We could be paying off the building while paying a lower rate of interest.
What will it cost me?
This bond measure will result in a property tax increase of approximately $0.35 per thousand dollars of assessed valuation— which is less than market value. The typical home in Lake Oswego is assessed at or below $300,000, so the average Lake Oswego homeowner would pay $105 per year over the life of the bond (20 years or less).
What are the benefits to our community?
Several uses for the WEB have already been identified, including recreational uses, a seismically sound 911 Center and Police services. Your City Council will soon seek public input on appropriate immediate and long-term uses for the WEB to determine a strategy for further development of this community asset.
We made a wise decision in November. Let's make another wise decision now.
Vote YES on 3-295
Robert J. Barman, Colleen Bennett, Michael Buck, Jeff Gudman, John Hanan II, Former City Councilor Jack Hoffman, Lake Grove Business Association, Eric Meyer, Joan Moore, Chuck O'Leary, Erin O'Rourke-Meadors, Emogene Waggoner.
(This information furnished by Joan Moore, Our City Our Future )
The printing of this argument does not constitute an endorsement by Multnomah County, nor does the county warrant the accuracy or truth of any statements made in the argument.