Multnomah Co. Online Voters' Guide

City of Lake Oswego

Measure No. 3-273

EXPLANATORY STATEMENT

The measure asks voters whether the property located at 4101 Kruse Way, Lake Oswego, Oregon (formerly the offices of the Safeco Insurance Company) should be retained in City ownership. The property is now known as the West End Building.

The property was purchased by the City of Lake Oswego for $20 million on July 7, 2006. Closing costs and fees totaled $684. The property consists of 14.08 acres, including an 88,872 square foot building.

Portions of the building are currently being used for Parks and Recreation Department offices and activity rooms. It also has been available for community meetings and events. However, the determination of the permanent use of the property has not yet occurred. In addition to an entirely-public use, it is possible that the permanent use could include a combined public and private use, or that improvement of the property could involve a partnership between the City and a private entity.

By the time that the permanent use is determined, a permanent financing mechanism will also be determined. If the entire purchase price were to be refinanced through general obligation bonds, it is estimated that property taxes would increase by $105 per year for a home having the average 2006/2007 Lake Oswego assessed value (not market value) of $300,000. Such general obligation bonds could not be issued, nor could property taxes be increased to pay such bonds, without receiving voter approval at a future election.

ARGUMENT IN FAVOR

PROTECT OUR FUTURE:
VOTE YES ON MEASURE 3-273

IT'S A WISE INVESTMENT

It is extremely rare that a city will have the opportunity to purchase a significant piece of property at their population center. When the Safeco property on Kruse way came up for sale, it was a CHANCE OF A LIFETIME to secure this 14 acres for use by the public – for now and for the future.

Your Council held a number of public forums to discuss the possibility of a Community Center on the site, and the people attending these meetings were very enthusiastic about that prospect. We thought that a vote in Nov. 2006, to finance the property would be a good idea, but we were persuaded, through listening to our residents, that it would be better to identify the uses first. So we formed a steering committee to help us do that. We appointed 20 members from around Lake Oswego to develop a plan. With a lot of hard work and thought, that plan was developed.

Even though we still think that a community center is a good idea, because of other priorities, it will have to wait for the next few years. In the meantime we can use the property, or we can lease it to a private party. We could have a library presence at the west end of our city. We could move our emergency services out of City Hall and into the building that is seismically sound, or we can do a combination of uses that would serve our public.

In the meantime, THE 14 ACRES AT THE FORMER SAFECO SITE IS A SOUND INVESTMENT. THIS OPPORTUNITY WILLNEVER COME AGAIN.

VOTE YES ON 3-273 FOR THE FUTURE OF

LAKE OSWEGO.

(This information furnished by Judie Hammerstad, Lake Oswego City Council)

ARGUMENT IN FAVOR

VOTE YES ON MEASURE 3-273

IT'S ANOTHER WISE INVESTMENT FOR LAKE OSWEGO

(This information furnished by Debbie Craig, Our City Our Future)

ARGUMENT IN OPPOSITION

In October 2005, the Lake Oswego City Council decided, without voter approval, to purchase the Safeco property. This measure seeks to validate that unilateral decision. It is flawed and self-serving because:

• It makes no commitments and gives no assurances regarding any intended use for the site, or related costs.
• It fails to disclose possible uses that are under consideration, such as the favored $105 million community center project.
• It fails to inform that $22,276,000 has already been spent, including the approximately $300,000 cost of moving the Parks & Recreation Dept. to the site.
• It fails to disclose ongoing annual expenses of $300,000 for operations and maintenance costs.
• It shows the approximate cost to taxpayers of borrowing $20 million for only one year. It fails to explain that this is a twenty-year obligation.
• It fails to inform the taxpayer of additional costs to modify or add to the building for its ultimate purpose.
• It fails to put this purchase in the context of the City's current debt load and all its impending (necessary) taxpayer indebtedness.
• It is only an advisory vote, which is not binding on the Council.

The City Council has decided to offer taxpayers no commitments, representations, or assurances regarding the property's eventual use or attendant costs. You are asked to blindly approve the first $20 million for public ownership of a property whose future use is vague at best.

This advisor question is open-ended; this is only the tip of the iceberg. Agreeing to keep the Safeco property without more information will open the door to undesirable possibilities. Buyer Beware! A “yes” vote is a blank check.

Please vote NO on measure 3-273

This statement endorsed by John Surrett
and Mary Olson, ASK ME FIRST PAC

(This information furnished by John Surrett, ASK ME FIRST PAC)