Current through Register Vol. 63, No. 3, March 1, 2024
(1) General Policy:
The grant of property or property rights acquired by highway funds is subject
to statutory and constitutional restrictions. This administrative rule is
enacted in order to assure that those restrictions are satisfied when property
or property rights are granted to cities or counties for street or road
purposes by ensuring that such transfer is in the public interest and that the
highway funds are being adequately conserved.
(2) The Department of Transportation receives
requests from cities and counties for grants of property owned by the
department for construction of streets and roads which are not part of the
state highway system. Subject to the following conditions, the department may
sell or transfer property not on operating right of way if the property is
declared surplus to the needs of the department and may grant easements on
operating right of way for such street and road purposes:
(a) Sale or transfer of property not on
operating right of way declared surplus:
(A)
If the proposed street or road is determined not to benefit the state highway
system the property shall be appraised and that value must be paid before
property rights are transferred; and
(B) If the proposed street or road is
determined to be a distinct and direct benefit to the state highway system the
property shall be appraised, the value of the proposed street or road to the
state highway system shall be determined and if the values are approximately
equal the grant shall be given at no cost to the city or county, otherwise the
difference between the appraised value and value to the state highway system
must be paid before the property rights are transferred.
(b) Grant of easement on operating right of
way:
(A) The property will be reviewed for the
pos-sibility of revenue production, and if there is such a possibility, the
property will be appraised by the right of way section and an appraised value
given:
(i) If the proposed street or road is
determined to directly and distinctly benefit the state highway system the
easement may be granted at no cost to the city or county;
(ii) If there is determined to be no
possibility of revenue production the easement may be granted at no cost to the
city or county; and
(iii) If there
is determined to be a possibility of revenue production and the proposed street
or road is determined not to be a benefit to the state highway system the
appraised value must be paid by the city or county prior to a grant of
easement.
(B) A grant of
easement on operating right of way are also subject:
(i) Review and approval by Federal Highway
Administration;
(ii) Review and
approval by the department of the street or road design and its effect on the
safety and operation of the highway; and
(iii) Compliance with section (3) of this
rule, including payment of administrative costs.
(3) A grant of
easement, and sale or transfer of department property is also subject to the
following:
(a) Payment by the city or county
of administrative costs, incurred by the department in processing and reviewing
the request, including the proposed design, and in appraising value and
determining revenue production possibilities. The administrative costs will be
based on actual documented costs incurred plus a ten percent charge for general
administration;
(b) Prior to the
transfer of any property rights a fully approved and executed written agreement
must be entered into between the department and the city or county outlining
details of design, construction and cost responsibility; and
(c) All grants or transfers constitute only a
transfer of a property right, and do not excuse the city or county from
complying with any other requirements or obtaining approvals necessary under
existing law for street or road construction.
Stat. Auth.: ORS 184 & ORS 366
Stats. Implemented: ORS
366.395