A Measure Proposing Annexation of 39.61 Acres of Property

Question: Shall the property located north of Kale Street NE (5000 block of Kale Street NE) be annexed?

Summary: Approval of this measure would annex approximately 39.61 acres of property located north of Kale Street NE (5000 block of Kale Street NE) to the City of Salem. The property is within the Urban Growth Boundary. Upon annexation, the property would be zoned City of Salem IBC (Industrial Business Campus).

Explanatory Statement:

If approved, this measure would result in annexation of 39.61 acres to the City of Salem. The City Council found the proposed annexation to meet all applicable land use laws of the State of Oregon and the City of Salem. The City Charter requires submitting this annexation to the voters.

The property proposed for annexation is generally located north of Kale Street NE (5000 block of Kale Street NE). The property is located within the Urban Growth Boundary, and is designated in the Salem Area Comprehensive Plan as "Industrial." Zoning of the property if annexed into the City would be IBC (Industrial Business Campus). Industrial Business Campus zoning would typically permit industrial and manufacturing activities.

This annexation was requested by petition of the property owner(s). The annexation would place the property within the City of Salem, subject to city tax rates. If annexed, the property would be withdrawn from the Marion County Fire District No. 1, and would thereafter receive fire and other services from the City of Salem.

Development of property is not required at the time of annexation. When development occurs, it must conform to the zoning designation then in effect. The zoning of any property may be changed from time to time following notice and public hearing as required by law.

The financial impact of this annexation on the city’s general fund depends upon the nature and appraised value of the eventual development of the property. Since development is not known at the time of annexation, only average estimates of costs and revenues can be made. Assuming average land and improvement values, employees per acre, and other indicators commonly found within the zone, and assuming the existing levels of city services are maintained, an average IBC zone development on this acreage could result in a $41,256 annual benefit to the city’s general fund (in year 2000 dollars). If the city’s levels of service are enhanced in the future, this fiscal benefit could correspondingly decrease.

School district costs should not be affected by development following this annexation, since industrial development does not result in additional students.

Additional information and findings regarding the proposed annexation are contained in the staff reports dated August 6, 2001, August 13, 2001 and August 20, 2001. Copies of the staff reports are available for public review on the city web site; at the Salem Public Library; and at the Salem City Hall, Department of Community Development, 555 Liberty Street SE, Salem, Oregon.

• In a letter dated June 13, 2001 to the City of Salem, the Northgate Neighborhood Association supported this annexation.

• This property will be zoned Industrial Business Campus when annexed.

• Using City of Salem staff calculations, the fiscal impact of this annexation on the General Fund is estimated to be at least $41,256 annual benefit to the City in year 2000 dollars.

• School District staff concluded that Industrial development has no negative impact on the School District.

• Annexation of this property represents controlled and managed growth. The city limits is located on two sides of the property. The property has been inside the Urban Growth Boundary since the Boundary was adopted in the early 1970’s.

• Water, sewer, and all utility lines are adjacent to the property.

(This information provided by Lawrence T. Epping,
Managing Partner, Granada Land Co.)

Argument in Opposition:

Currently grass and grain fields with excellent agricultural soils, this 39.6-acre site abuts orchards on the east, west and north. To the south are new subdivisions and an elementary school.

Proposed zoning is Industrial Business Complex, permitting heavy industry.

CityWatch urges that annexation of this site be delayed until answers to the following questions and difficulties are furnished to the voters:

1 Insufficient buffer between possible heavy industry and adjacent orchards. Development should occur only after there is a plan to protect farmlands and good soils around the city.

2. Factories here could advance the process of enclosing Salem within an “iron ring” of heavy industry.

3. Because we don’t know what kind of industrial development is planned, we can not know;

a. what pollution might be generated

b. what demands might be placed upon Salem’s diminishing water supply.

c. what increased traffic loads would be imposed on Kale Road, a minor
arterial

d. what the effects on adjacent farms or neighborhoods will be

e. what the cost/benefit ratio (tax revenue / costs of service) will be)

We also can not know how many employees might work at this site. We know from years of development history that every new, large employer attracts more job-seekers than there are jobs, so taxpayers will have to pay the high costs of servicing new housing developments to handle the in-migration.

Finally, though the city is making progress in ascertaining and publishing the expected costs of each proposed annexation, certain costs such as fire, police, library expansion and others are still not included in those numbers.

Approval should be withheld until developers furnish the necessary information.

More information may be obtained from CityWatch. Call 503-362-0619, or write P. O. Box 142, Salem, 97308. Or visit www.salemcitywatch.com between October 24 and November 6.