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• • The designation of the property as open space on the comprehensive plan is not necessary as the �. zoning designation for the property is a Planned Unit Development under SRC 121, which provides for open space under one ownership. What is an ooen space deferral? The law, which allows land to be assessed at its open space value, was enacted in 1971, primarily to encourage the preservation of open space, such as golf courses, in the Portland area where fair market values made the retention of open space economically prohibitive. When an open space deferral is applied for, the applicant describes both the area to be so designated and the current open space or use of the land. Upon approval of the open space land designation, the county assessor, per ORS 308.765, assesses the land on its open space use, not on the basis of its highest and best use. The assessor is directed by the statute to assume the highest and best use of the land is its open space use, such as a park, wildlife sanctuary or golf course, and the assessor may not consider possible alternative uses for the land. Once classified, if the use changes, the assessor must withdraw the land from the open space classification and must collect back taxes on the land, equal to the difference between the taxes on the open space value and the taxes which would have been collected had the land not been designated open space. In addition, the assessor must collect interest at 0.66% per month for the period in which the land was open space. The penalties are limited to a total amount not to exceed the dollar difference between the value of the land as open space and the real market value the year the use changed. What are the circumstances of this application? This application consists of five tax lots, two of which are presently in farm and small tract option ,' ?� timber deferral. Development of this land involves the repayment of five years' back taxes unless the land can be preserved as a deferred use, such as open space. The five tax lots consist of 196.35 acres, of which.150 acres are proposed for open space deferral. The balance is planned for development, with consequent payment of five years' back taxes on timber and farm deferred lands. As shown in the table below, the present assessed values are relatively low, especially for the 94.4 and 36.7 acre parcels. The following table estimates the'values for the pro-rata portions of the whole parcels which are under consideration for open space deferral. Tax Lot No. Requested Deferral Acres Estimated Present Assessed Value of Deferred Area T8SR3W 22CB 101 �A�v�4,\ 3.4� $28,382 T8SR3W 21AA 300 10.6n $20,810 T8SR3W 22AA 3900L 4.9 o $N/A (1) T8SR3W 22B 100 . 94.4 $22,076 T8SR3W 22B 200 36.7• $10,987 Totals 150.0 $82,254 Note: (1) This parcel has not yet had a value established by the assessor as it is the product of a recent partitioning. ' Given the low estimated values for the area under consideration due to existing timber and farm deferrals, it is apparent that an increase in assessed value is to the City's advantage. The land will Salem City Candl - 28 June 1893 ' Open Space Land Designation 93-1 Page 2