City of Happy Valley's withdrawal from NCPRD

In June 2017, the Happy Valley City Council took action to attempt to withdraw from NCPRD in order to provide their own parks and recreation services to Happy Valley residents. However, it was later determined that the City did not follow appropriate state law in withdrawing from the District.

On Dec. 13, 2018 the Circuit Court ruled that the City of Happy Valley improperly withdrew from the District. 

On Aug. 16, 2019, a jury awarded the City of Happy Valley roughly $18 million in its claims that NCPRD had breached its original 2005 contract with the city for failing to complete certain projects.  The court added pre-judgement interest of over $3 million, putting the District at risk of paying $21.3 million to date. In addition, the interest would continue to accrue at 9 percent per year. 

To end several years of uncertainty and potential risks for both parties in ongoing litigation, the City and County approved a settlement agreement and collaborated to develop legislation allowing the City to withdraw from NCPRD. 
On Feb. 27, 2020, legislation (HB 4106) was enacted, withdrawing the City from NCPRD effective July 1, 2020. 

These efforts allow both parties to turn the page and focus on building new parks and providing great recreation programs and services to their respective residents.

Settlement Terms

• NCPRD pays the City $14.3 million (instead of the previously mentioned $21 million, including interest), from development fees. No District operating or general fund dollars are being used for this settlement payment. The settlement funds will come from the following:
  • $9.3 million is cash that by ordinance can only be spent within NCPRD Zone 3 boundaries.  This is the portion of the district that includes Happy Valley and the unincorporated area near the city.
  • $5 million will be paid from Hood View Park sale proceeds, attributable to development funding, including a $2 million contribution from the city for development of Hood View Park.
• NCPRD will transfer ownership, liability and maintenance to the city of the following parks within Happy Valley:
  • Southern Lites
  • Village Green 
  • Ashley Meadows
  • NCPRD-owned Mt. Talbert parcels within Happy Valley* 
  • Mt. Scott Creek Trail
  • Hidden Falls Nature Park

The County and the City jointly supported legislation in the 2020 Legislative Session, which provided Happy Valley an alternative legal path to withdraw from the District. 

Now that the City has withdrawn, the resulting District boundaries will remain intact even if the City annexes parts of NCPRD territory in the future. This will prevent the District from losing potential multiple millions of dollars of tax revenue over time as the City grows and annexes more property.

*The majority of Mt.Talbert Nature Park is owned by Metro and will remain so. Most of this Metro property is within the City of Happy Valley, and thus will no longer be in NCPRD boundaries. NCPRD and Metro have a joint management partnership for this site. NCPRD will work closely with Metro to ensure that the public’s access to Mt. Talbert Nature Park will be unaffected. 

The District no longer receives property tax revenue generated from properties in current City of Happy Valley boundaries and no longer provides NCPRD resident services and benefits to residents of Happy Valley. If not for this agreement, as the City continues to grow and annexes more properties, the District’s tax base would erode over time. However, the settlement agreement locks in the current district boundaries outside of Happy Valley, preventing this from occurring. 

Due to years of legal challenges and uncertainties, many of NCPRD’s planning, budgeting and service activities were in limbo or delayed.  

• The agreement provides the District with certainty regarding its boundaries and finances, and allows it to move forward to implementing programs, services and projects that have been on hold such as: 
  • Milwaukie Bay Park 
  • The future of the Concord, Wichita and Clackamas elementary school sites, and planning for additional parks and facilities in underserved areas of the District
• This settlement allows our District Advisory Board to move forward in its regular work helping NCPRD meet the needs of the residents.
• NCPRD is no longer responsible for managing and maintaining the 6 properties being transferred to Happy Valley, which will provide ongoing cost-savings to the District.
• Finally, this settlement agreement ended costly litigation and saved taxpayer dollars. 

The City and the County worked closely with key legislators to develop and support mutually-agreeable legislation. Both parties look forward to providing new parks and great recreation programs and services to their respective residents. 

• NCPRD can focus its resources on important projects such as Milwaukie Bay Park and the future development of the Concord, Wichita and Clackamas elementary schools.
• The settlement agreement allows Happy Valley to move forward in planning and provide its own parks and recreation services.   

The District and the City sought a legal solution to the city’s desire to withdraw from the District for over two years. Happy Valley has grown rapidly since joining NCPRD, and City leadership wants to provide its own parks and recreation services.  

Continued litigation would have been a financial drain on the District and the services provided to the District residents. The Board of County Commissioners, in its role as the NCPRD Board of Directors, is committed to looking out for the best interest of all District residents, and therefore supported this settlement resolution to avoid potential further financial hardship on the District and its residents. 

Additionally, this resolution allows both parties the ability to move forward to provide their residents with parks and recreation services rather than be tied up in courts for years.   

NCPRD residents may attend and participate in the monthly District Advisory Board meetings. Opportunities for public feedback are provided at every meeting on matters pertaining to NCPRD.