HomeMy WebLinkAboutTrans 2007-02-12 Item 2A - Presentation - Local Improvement District (LID) Fundamentals by Foster Pepper
Attachment II.A.
INFORMATION MEMO
From:
Mayor Mullet
Public Works Director
To:
Date:
Subject:
February 7, 2007
Tukwila Urban Center Access Improvement PrQiect/Klickitat
Project No. 84-RW19
LID Fundamentals
ISSUE
Presentation on the intricacies and steps of Local Improvement Districts by Hugh Spitzer,
Attorney with Foster Pepper PLLC.
BACKGROUND
Foster Pepper PLLC was retained by the City in December 2006 to serve as Bond Counsel for
the formation of the LID for the Klickitat project. As part of their services, they offer a
"Local Improvement District 101" briefmg to explain the LID process and engage the Council
in discussions so that a thorough understanding of this complex funding mechanism is
achieved. The attached agenda outlines the presentation to be shared with the Transportation
Committee.
RECOMMENDATION
Information.
CK:ad
attachment
(i:\pubworks\cyndy\klickita1\infonnation memo - lid 101 2-12-{)6.doc)
I
CITY OF TUKWILA, W ASmNGTON
THE LOCAL IMPROVEMENT DISTRICT PROCESS
. The special benefit assessment process in Local Improvement Districts
Origin and history
Basic concepts and two tests for validity of assessments
Uses or applications
Statutes and cases
. Assessment methods
Zone and termini or other formulas
Frontage and area charges
Per lot or unit
Special benefit/proportionate assessment methodology
. The typical LID Process
Two resolutions and two public hearings
Three public notices
Four ordinances
. Purposes and conduct of the preliminan' (formation) and final assessment
roll hearings, and authority to appoint a Hearing Examiner
. Due process, Appearance of Fairness, ex parte communications and conflict
of interest issues in quasi judicial proceedings
. Alternatives for interim construction and permanent financing
. Assessment prepayment and annual installment payment procedures
. Assessment term of years, interest and penalties
. Negotiated sale of bonds
Principal amount and term
Prior redemption
Local Improvement Guaranty Fund
. Role of Bond Counsel
l
Hugh Spitzer
February, 2007