2007 ORS 777.953¹
Annexation
  • authority
  • procedure
  • effect

(1) The board, on its own motion, may initiate a proposal for annexation to the port of territory that is not within another port organized under this chapter. Such territory may be either wholly or partially within or outside the same county in which the port is located. However, if the territory proposed to be annexed is outside Coos County, then the territory must be situated entirely within the watershed of the Coos River and its tributaries. The proposal for annexation shall be made in a resolution adopted by the board.

(2) After adoption of a resolution proposing annexation of the territory described in subsection (1) of this section to the port, the board shall fix a day for a public hearing before the board at which time the electors of the port and of the affected territory may appear and be heard on the question of annexation.

(3) The board shall cause notice of the hearing to be published once each week for two successive weeks prior to the day of the hearing in a newspaper of general circulation in the county and shall cause notices of the hearing to be posted in four public places in the port for the same period.

(4) After the public hearing, the board shall file the resolution proposing annexation with the governing body of the county in which the territory proposed to be annexed is situated. The county governing body shall order an election to be held in the territory. The county governing body shall also order the board to hold an election within the boundaries of the port on the same day, both elections to be held for the purpose of submitting the proposed annexation to the electors. The board shall certify the results of the election to the county governing body. The order of annexation shall be entered by the county governing body when a majority of all the votes cast in the territory and the port are in favor of the annexation.

(5) After the date of entry of an order by the county governing body annexing territory to the port, the territory annexed shall become subject to the outstanding indebtedness, bonded or otherwise, of the port in like manner as the territory within the port.

(6) ORS 198.705 (Definitions for ORS 198.705 to 198.955) to 198.955 (Disposition of assets) and 777.326 (Special procedure for annexations increasing by one-half or more the area or assessed value of taxable property within the port) do not apply to an annexation proceeding conducted under this section. [1987 c.565 §16a; 2007 c.804 §82]

Note: Sections 11 to 15, chapter 746, Oregon Laws 2007, provide:

Sec. 11. As used in sections 11 to 15 of this 2007 Act:

(1) "Act of God" means an unanticipated grave natural disaster or other natural phenomenon of an exceptional, inevitable and irresistible character, the effects of which could not have been prevented or avoided by the exercise of due care or foresight.

(2) "Coos Bay Channel Project" means a project to deepen and widen the lower Coos Bay deep draft navigation channel, west of the Coos Bay railroad bridge, to perform ecosystem investigation and restoration projects and to make additional navigational system improvements including, but not limited to, structural work at the entrance jetties, navigation aids and other design or engineering tasks.

(3) "Oregon sponsors" means the Oregon International Port of Coos Bay or any agency acting as a financial contributor to the Coos Bay Channel Project.

(4) "Primary sponsor" means the Oregon International Port of Coos Bay as representative of the Oregon sponsors. [2007 s.746 §11]

Sec. 12. The Legislative Assembly finds that:

(1)(a) The Coos Bay Channel Project will create jobs and further economic development in Oregon because deepening and widening the lower Coos Bay deep draft navigation channel, west of the Coos Bay railroad bridge, will allow the Oregon International Port of Coos Bay to accommodate new generations of deep draft cargo vessels and to diversify the types of cargo that can be processed through the port, increasing maritime and international trade throughout Oregon, improving the attractiveness of Oregon to new businesses and supporting the operations and prosperity of existing businesses.

(b) Authorization for the issuance of lottery bonds will increase the likelihood of federal funding for the project, encourage the development of public and private sector partnerships to continue the modernization and expansion of the Oregon International Port of Coos Bay, including the development and construction of an intermodal container terminal for Coos Bay harbor, and add new income that will directly benefit Oregon’s dredging, construction or maritime industries.

(2) The factors described in subsection (1) of this section will encourage and promote economic development within the state, and the issuance of lottery bonds to finance the Coos Bay Channel Project is therefore an appropriate use of state lottery funds to pay the amounts specified in section 13 of this 2007 Act, under section 4, Article XV of the Oregon Constitution, and under ORS 461.510 (State Lottery Fund). Neither the faith and credit nor any of the taxing power of the state is pledged or otherwise committed by sections 11 to 15 of this 2007 Act, and the commitments of the state under sections 11 to 15 of this 2007 Act and ORS 777.277 (Definitions for ORS 777.277 to 777.287) to 777.287 (Agreements with federal agencies) do not constitute a debt or liability of the state within the meaning of section 7, Article XI of the Oregon Constitution. [2007 c.746 §12]

Sec. 13. (1) In addition to amounts authorized under ORS 286.505 to 286.545 [series repealed], the State Treasurer, at the request of the Director of the Economic and Community Development Department, may issue lottery bonds pursuant to ORS 286.560 to 286.580 [renumbered 286A.560 (Definitions for ORS 286A.560 to 286A.585 and 327.700 to 327.711) to 286A.585 (Lottery bonds for community sports facilities)]:

(a) In an amount of up to $60 million for payment of the expenses of the Coos Bay Channel Project in increments described in subsection (2) of this section; and

(b) In an additional amount to be estimated by the State Treasurer for payment of bond-related costs of the Oregon Department of Administrative Services, the Economic and Community Development Department and the State Treasurer.

(2) The director shall request the State Treasurer to issue the amount of bonds described in subsection (1)(a) of this section in increments that allow the director, at the request of the primary sponsor, to transfer:

(a) In the biennium beginning July 1, 2007, up to $5 million in net proceeds of lottery bonds to the Coos Bay Channel Fund established in section 15 of this 2007 Act for distribution to the primary sponsor after the director finds that the primary sponsor has taken action pursuant to the grant agreement required in section 14 of this 2007 Act that triggers the distribution of bond proceeds described in this paragraph.

(b) In the biennium beginning July 1, 2009, up to $15 million in net proceeds of lottery bonds to the Coos Bay Channel Fund established in section 15 of this 2007 Act for distribution to the primary sponsor after the director finds that the primary sponsor has taken action pursuant to the grant agreement required in section 14 of this 2007 Act that triggers the distribution of bond proceeds described in this paragraph.

(c) In the biennium beginning July 1, 2011, up to $40 million in net proceeds of lottery bonds to the Coos Bay Channel Fund established in section 15 of this 2007 Act for distribution to the primary sponsor after the director finds that the primary sponsor has taken action pursuant to the grant agreement required in section 14 of this 2007 Act that triggers the distribution of bond proceeds described in this paragraph.

(3) Lottery bonds authorized under this section may not be issued after June 30, 2013. [2007 c.746 §13]

Sec. 14. (1) The Director of the Economic and Community Development Department shall enter into one or more grant agreements with the primary sponsor that require the Economic and Community Development Department to disburse, over the course of the project, an aggregate principal amount of $60 million for payment of the expenses of the Coos Bay Channel Project, in the increments described in section 13 (2) of this 2007 Act, from the Coos Bay Channel Fund established pursuant to section 15 of this 2007 Act, to the primary sponsor. The department shall make disbursements from the fund as soon as bond proceeds are deposited in the fund.

(2) The one or more grant agreements must:

(a) Subject to subsection (4) of this section, establish appropriate triggers for the incremental biennial distribution of bond proceeds described in section 13 (2) of this 2007 Act based on appropriate measures of progress in completion of the project that are satisfactory to the director and consistent with prudent financial practices that reflect sound stewardship of public resources.

(b) Require the primary sponsor to:

(A) Return bond proceeds distributed and reimburse the State of Oregon for expenditures made pursuant to sections 11 to 15 of this 2007 Act if the director determines that the project is not substantially completed by July 1, 2019, unless the project is not substantially completed:

(i) Due to an act of God; or

(ii) Because the State of Oregon fails to distribute one or more of the increments of bond proceeds described in section 13 (2) of this 2007 Act and required to substantially complete the project, for a reason other than a failure of the primary sponsor to take action to trigger the distribution or a failure of the project to meet federal or state environmental permitting standards necessary to complete the project.

(B) Provide evidence satisfactory to the director that the primary sponsor has obtained a letter of credit, entered into a surety bond agreement or provided other similar financial assurance to guarantee the return of bond proceeds and reimbursement for expenditures required by this paragraph.

(3) Notwithstanding subsection (2)(b)(B) of this section, the primary sponsor may choose to guarantee the bond proceeds distributed and the state expenditures made in the biennium beginning July 1, 2007, by converting the amount into a loan subject to an agreement that allows the primary sponsor to repay the amount over time at terms provided for in the grant agreement.

(4)(a) Prior to the distribution of bond proceeds described in section 13 (2)(a) of this 2007 Act, the primary sponsor shall provide to the director a budget document outlining expenditures for the Coos Bay Channel Project and verify and certify to the director that:

(A) The primary sponsor has entered into a commercially reasonable agreement with a cargo terminal developer to construct and operate cargo terminal facilities on the Coos Bay channel;

(B) The Secretary of the Army has authorized the performance of environmental studies on the channel pursuant to section 203 of the Water Resources Development Act of 1986 (P.L. 99-662); and

(C) The cargo terminal developer has entered into, or made appropriate progress in negotiations toward, a contract with rail service providers to ensure adequate rail infrastructure and service capacity to serve the cargo terminal facilities to be developed as part of the Coos Bay Channel Project.

(b) Prior to the distribution of bond proceeds described in section 13 (2)(b) of this 2007 Act, the primary sponsor shall provide an updated budget document outlining expenditures for the Coos Bay Channel Project and verify and certify to the director that:

(A) The Secretary of the Army has provided a favorable recommendation to Congress to proceed with the Coos Bay Channel Project; and

(B) The primary sponsor has obtained, or has reasonable assurance of obtaining, adequate funding to complete permitting and engineering work on the Coos Bay Channel Project.

(c) Prior to the distribution of bond proceeds described in section 13 (2)(c) of this 2007 Act, the primary sponsor shall provide an updated budget outlining expenditures for the completion of the Coos Bay Channel Project and verify and certify to the director that:

(A) The sponsor has received the necessary approvals and permits under ORS 196.600 (Definitions for ORS 196.600 to 196.655) to 196.905 (Applicability) and section 404 of the Federal Water Pollution Control Act (33 U.S.C. 1251 et seq.) to allow the Coos Bay Channel Project to be completed; and

(B) The primary sponsor has obtained, or has reasonable assurance of obtaining, adequate funding to complete the Coos Bay Channel Project.

(5) The State of Oregon and its agencies and departments are not liable to the lenders, vendors or contractors of the Oregon sponsors for any action or omission under sections 11 to 15 of this 2007 Act.

(6) By receipt of any part of net proceeds of lottery bonds described in section 13 of this 2007 Act, the primary sponsor agrees to indemnify the state and its agencies and departments to the fullest extent permitted by law for liability the state or its agencies and departments might incur in connection with any borrowing by the primary sponsor for the project. [2007 c.746 §14]

Sec. 15. (1) The Coos Bay Channel Fund is established separate and distinct from the General Fund. Interest earned by the Coos Bay Channel Fund shall be credited to the fund. The moneys in the Coos Bay Channel Fund are continuously appropriated to the Economic and Community Development Department for the purpose described in subsection (2) of this section. The fund shall consist of moneys transferred to the fund under section 13 of this 2007 Act and interest earnings on moneys in the fund.

(2) Moneys in the fund are available to the department for distribution to the primary sponsor to pay the nonfederal cost share, or the nonprivate cost share, of expenses of the project up to the amount specified in section 13 of this 2007 Act and to pay bond-related costs. [2007 c.746 §15]

Chapter 777

Notes of Decisions

Port district's power to formulate rules and regula­tions to prevent estuary and stream pollu­tion within its boundaries did not give it standing to object to power supply contract between Bonneville Power Administra­tion and proposed aluminum plant. Port of Astoria v. Hodel, 595 F2d 467 (1979)

1 Legislative Counsel Committee, CHAPTER 777—Ports Generally, https://­www.­oregonlegislature.­gov/­bills_laws/­ors/­777.­html (2007) (last ac­cessed Feb. 12, 2009).
 
2 Legislative Counsel Committee, Annotations to the Oregon Revised Stat­utes, Cumulative Supplement - 2007, Chapter 777, https://­www.­oregonlegislature.­gov/­bills_laws/­ors/­777ano.­htm (2007) (last ac­cessed Feb. 12, 2009).
 
3 OregonLaws.org assembles these lists by analyzing references between Sections. Each listed item refers back to the current Section in its own text. The result reveals relationships in the code that may not have otherwise been apparent.