1. (1) A city governing body shall provide for compensation under this section to any person who has established a structure on real property if the structure encroaches on a road that is the subject of legalization proceedings under ORS 223.935 to 223.950.

2. (2) To qualify for compensation under this section, a person must file a claim for damages with the city governing body before the close of the hearing to legalize the road. The city governing body shall consider a claim for damages unless the city governing body determines that:

   1. (a) At the time the person acquired the structure, the person had a reasonable basis for knowing that the structure would encroach upon the road;
   2. (b) Upon the original location of the road, the person received damages;
   3. (c) The person or the person’s grantor applied for or assented to the road passing over the property; or
   4. (d) When making settlements on the property, the person found the road in public use and traveled.
3. (3) The compensation allowed under this section shall be just compensation for the removal of the encroaching structure.
4. (4) The city governing body may proceed to determine compensation and acquire the structure by any method authorized by law or by the city charter.
5. (5) If a city governing body determines that removal of the encroaching structure is not practical under this section, the city governing body may acquire property to alter the road being legalized.

[1989 c.375 §3]