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This ordinance establishes system development charges for capital improvements to the arterial and collector street system in accordance with ORS 223.297 to 223.314. The premise upon which the Street System Development Charge (SSDC) is based is that each new development should provide to the arterial and collector street system an additional amount of capacity representative of the demand that it will cause and that the charge to the developer will be representative of the cost of that additional capacity. In actual practice, the rates will be set lower than the amounts needed to fund all the needs generated by development. These charges will provide a significant portion of the funding needed for capital improvements and each developer will pay a fair share. It is assumed that, in most cases, direct construction of arterial or collector streets by a developer will not be necessary. In those cases where a developer does have to construct or improve arterial or collector streets within or outside the development as a condition of development approval, the developer will receive a credit against the system development charge. The SSDC is an "improvement fee" as defined in ORS 223.299 since the charge to the developer is for costs associated with capital improvements to be constructed. It is assumed that all traffic generators in the city impact the entire arterial and collector system and all SSDCs are calculated on the same basis regardless of the location of the development. The reasons for this assumption are: (1) the city is fairly compact in size, (2) there are no significant barriers to traffic flow, (3) major traffic attractors such as Downtown, Medford Center, and Rogue Valley Mall are centrally located, (4) residential generators are dispersed throughout the city and the surrounding area, and (5) there is no factual basis for breaking the city into smaller street improvement districts.

[Added Sec. 1, Ord. No. 6944, Jul. 18, 1991; Amd. Sec. 13, Ord. No. 7855, Apr. 6, 1995.]