(A)   The City Council may designate a property or area within the city as a Vertical Housing Development Zone. A VHDZ may be established only in the town center, community commercial or neighborhood mixed use zoning districts. The Vertical Housing Development Zone shall be adopted by ordinance. The ordinance establishing the VHDZ shall clearly identify the zone boundaries and individual parcels included in the zone.
   (B)   The city may approve multiple Vertical Housing Development Zones within the city. The boundaries of a Vertical Housing Development Zone may not overlap. A property may only bein one Vertical Housing Development Zone. Establishing the VHDZ does not obligate the city to certify a project as qualifying for the VHDZ partial tax exemption.
   (C)   Once designated, a Vertical Housing Development Zone shall continue to exist indefinitely unless modified or terminated by City Council after adoption of an ordinance modifying or termination the zone.
   (D)   The city shall provide notice and an opportunity to comment on the proposed Vertical Housing Development Zone. The notice shall be sent by regular mail and describe the proposed VHDZ, explains the partial property tax exemption described in O.R.S. § 307.864 that would apply if the proposed zoned is designated; and explains the process by which a local taxing district may elect not to participate in the VHDZ.
   (E)   The governing body of a district may elect not to participate in a VHDZ by providing a copy of a resolution or other official instrument duly adopted and issued by the governing body of the district affirming its decision to opt out of the VHDZ designation. Such elections must be made within 45 days after the date on which proper written notification is mailed by the city to the taxing district advising of the city's intent to establish a VHDZ.
   (F)   The city shall prepare not later than 60 days after mailing notice to the districts a statement identifying the districts, if any that have adopted out of the VHDZ designation. The statement together with a copy of the instruments provided to the city by each taxing district shall be included as an exhibit with the ordinance considered by the City Council establishing the VHDZ.
   (G)   Prior to designating a vertical housing development zone the City Council shall consider the potential for displacement of households as a result of establishing the zone. The ordinance establishing the vertical housing development zone shall include finding(s) documenting the potential for displacement and identify mitigation measures necessary to reduce impacts.
(Ord. 2018-03, passed 7-17-2018)