11/19/1986 Meeting - Laserfiche WebLink

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