Item 4 - Ordinance on Downtown Urban Renewal Plan Amendments

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Chapter 7: Estimated Amount of Money and Anticipated Year in Which Indebtedness will be Retired or Otherwise Provided For Under ORS 457.420 to 457.460 Table 6 sets out the estimated costs of the projects to be completed under the Renewal Plan. The total cost of all projects is estimated at $200 million between FY2007/2008 and FY2029/2030. The projects will be funded with a combination of urban renewal tax increment financing under ORS 457 and other sources. The Urban Renewal Agency expects to apply for funding from other federal, state and local grants in order to com- plete the projects. Private developers will fund some of the project costs. In addition, the public facilities included within the plan may also be funded in part with other public funds, such as systems development charges and general obligation bonds, among other sources. The project activities will begin immediately in FY2007/2008 and will continue through the final year of the Renewal Plan, in FY2029/2030. When the plan was amended in June of 1998, the City Council added a maximum indebtedness figure of $33 million. That figure was based on the estimated cost of building a new main library, plus contin- uation of the administrative costs in the district, preparing annual financial statements, disposing of the Sears building, overseeing completion of the Broadway Place and Overpark elevator projects, and administering the loan portfolio. It excluded existing debt. Based on the estimated cash flow for the district between now and FY2029/2030, the current maximum indebtedness figure will be insufficient to cover anticipated expen- ditures for the West Broadway redevelopment projects. This is why the Agency is proposing a plan amendment at this time. The current plan amendment proposes an increase in maximum indebtedness of $40 million, resulting in a revised maximum indebtedness figure of $73 million. This revised maximum indebtedness amount is the estimated minimal amount needed to accomplish the projects under the current project assumptions. The West Broadway redevelopment project is in a conceptual stage and there are a number of factors that could increase the cost of the project, as well as increase the Agency’s participation in the project. Some of those factors are: Because the project has not yet been designed and is still in the conceptual stage, additional refinement of the project details could result in a higher cost for the overall project. Depending on the specific properties to be acquired and the costs of those properties, the overall cost for property acquisition could increase. Construction costs could also increase due to the level of inflation and interest rates. The Mayor has appointed a citizen advisory committee to work with the develop- ers to refine the scope of the project, including items such as public open spaces. Report on the Downtown Urban Renewal District Plan – Circulation Draft of July 17, 2007 10