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<br /> '-~ <br /> - <br /> II. TAX INCREMENT FINANCING AND THE DOWNTOWN DEVELOPMENT STRATEGY <br />e Mayor Obie sa i d the counc il ors a s ked for a discussion of tax-i ncrement <br /> financing so they will understand it better and be able to decide if they want <br /> to continue it. He asked Rob Bennett, who will become a councilor in January, <br /> to sit at the table. <br /> Development Director Abe Farkas introduced the presentation. He said a tour <br /> of the tax-i ncrement di stri ct wi 11 be arranged for the counci lors and <br /> information will be provided at the December 8 City Council meeting about <br /> future projects for which tax-increment financing might be used. He said tax- <br /> increment financing is a tool of urban renewal districts. The purpose of tax- <br /> increment financing is to stimulate significant private investment in an urban <br /> renewal district and the surrounding geographic region benefits from the <br /> investment. <br /> Comparing the Eugene Renewal Agency to a development company, Mr. Farkas said <br /> the City Council, when it sits as the Renewal Agency, is the company's Board <br /> of Directors. The Board of Oirectors is charged with the assemblage of land, <br /> the disposition of land, and the development of specific parcels within the <br /> district. The Board of Directors adopts general policies and develops a <br /> financial framework within which the staff works. The Executive Director of <br /> the company is the City Manager. The staff is responsible for negotiating <br /> IIdea 1 Sll and presenting them to the Board of Di rectors for approva 1. <br /> Mr. Farkas said Oregon initiated tax-increment financing in 1960. He compared <br /> the land area and assessed value of the renewal districts in Eugene and Salem. <br /> He said cities must rely on local tools for stimulating private investment in <br />e downtown areas because Federal funding is decreasing. He pointed out that <br /> tax-increment financing is controlled locally. <br /> Mr. Farkas introduced Bob Hibschman of the Development Department. <br /> Mr. Hibschman discussed the history of the Eugene Renewal District. He said <br /> improvements valued at $4.88 million have been made to the infrastructure. He <br /> said the City used a grant of $20 million and matching funds to construct the <br /> Overpark. Twenty-nine buildings that are valued at $40 million and in which <br /> 800 people are employed have been constructed on land assembled by the Renewal <br /> Agency. <br /> Answering questions from Mr. Hansen and Mr. Holmer, Mr. Hibschman said the <br /> Renewal Agency owned all the land on which the buildings were constructed. He <br /> said he would investigate how much private investment is included in the $40 <br /> million value of the buildings. <br /> Replying to questions from Mr. Rutan, Mr. Hibschman said the pedestrian mall, <br /> the infrastructure improvements, intensive retail development, and the <br /> Performing Arts Center were the incentives for private investment in the <br /> downtown that the renewal district provided. Mr. Farkas added that it is very <br /> difficult for private investors to assemble land and the land assembled by the <br /> Renewal Agency assisted private development in the downtown. Mr. Gleason said <br /> land must be assembled to raise the intensity of use. <br />e MINUTES--Eugene City Council November 19, 1986 Page 2 <br />