11/19/1986 Meeting - Laserfiche WebLink

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Mr. Hansen wondered if the value of downtown properties has been increased because of the renewal district or if the properties would have increased in e value without the renewal district. Mr. Gleason responded that the downtown is more densely used now than it would have been without urban renewal. He said cities do not have downtowns and deve 1 opment goes outward if an opportunity for dense use is not provided. Mr. Hibschman said 51 percent of the Eugene Renewal Agency land has been sold for redevelopment, 25 percent is in public use, and 24 percent is available for redevelopment now. Twenty-two private buildings have been rehabilitated with Urban Renewal Agency funds. Five buildings within the renewal district have been rehabilitated entirely with private funds. Answering questions from Mayor Obie and Mr. Holmer, Mr. Hibschman said the Conference Center and Conference Center parking structure are examples of land in public use. Mr. Byrne said renewal agencies received low-interest loans from the Federal government to rehabilitate buil di ngs. The loans were dependent upon the existance of a Renewal Agency. Replying to questions from Ms. Bascom and Mr. Hansen, Mr. Byrne sa i d the Renewal Agency did not finance the construction of the Hult Center. City Attorney Tim Sercombe said an urban renewal plan in conformance with State laws would be necessary to re-acquire land in order to increase the intensity of its use. Mr. Farkas introduced Greg Byrne of the Development Department who discussed tax-increment financing. He said the assessed value of property in the tax- increment district is frozen when the district is formed. Taxes on the e increase in assessed value are used to provide services such as parking in the district. Taxes on property outside the tax-increment district are higher than they woul d be if the same 1 eve 1 of development existed without the district. Responding to questions from Mayor Obie, Mr. Bryne and Mr. Gleason discussed the results of disolving the Eugene Renewal Agency. Mr. Gleason said the voters would have to approve retention of the present tax rate outside the renewal district if the district is dissolved and the tax rate is retained. He said the City's General Fund would receive about $2 million in additional revenues if the voters approve the retention. Of that amount, $1.3 million would be set aside to retire tax-increment debt annually. Mr. Byrne discussed potential development on the 11th Avenue and Wi 1 lamette Site. He also discussed the Riverfront Research Park Tax-Increment District and the loans to it from the Downtown Tax-Increment District. Replying to questions from Mr. Rutan, Mr. Byrne discussed the use of tax- increment funds to pay for capital proj ects . He said $2.7 million is the current balance in the fund. Mr. Farkas added that $2.7 million is needed for the current indebtedness. Mr. Hansen wondered what happens when the assessed value of a building in the Urban Renewal District is not as high as expected. Mr. Byrne said bonds are not marketed until the tax-increment cash flow is sufficient to cover them. e MINUTES--Eugene City Council November 19, 1986 Page 3