11/19/1986 Meeting - Laserfiche WebLink

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- Mr. Holmer pointed out that Bancroft funds could be used to finance private investment if a renewal district did not exist. Answering a question from e Mr. Holmer, Mr. Farkas said some states use other tools such as sales taxes and local improvement districts to accomplish what tax-increment funds do in Oregon. Mr. Hansen asked how Eugene1s use of tax-increment funds compares with the use of them in other cities. Mr. Gleason responded that Eugene's downtown is uniquely successful. He said Tacoma, Washington, and Boise, Idaho, have not been able to retain downtown development and do not have successful downtowns. He said the tax-increment funds in Salem are 50 percent more than Eugene1s and Salem has more successful downtown reta i 1 deve 1 opment than Eugene. The Nordstrom Mall was part of the urban renewal. He said Eugene emphasized amen it i es in the downtown mall and he thinks they wi 11 inspire other development. He said benign neglect does not produce a vibrant downtown. Ms. Bascom said the councilors received some erroneous information from a constituent about the effect of an expansion of the Urban Renewal District. Mr. Holmer asked the staff to reconcile the suggestions to decrease the size of the downtown mall and suggestions to increase the urban renewal area when the council considers tax-increment financing again. Mr. Miller wondered about using tax-increment funds for capital needs in the Hult Center. Mr. Sercombe responded that tax-increment funds must be used to accomplish the objectives in the Urban Renewal Plan and the present Urban Renewal Plan indicates that a setting will be prepared for a performing arts center. The plan is being updated now but State law indicates that urban e renewal should be used to remove blight and substandard buildings. Mayor Obie directed the staff to present a plan for using tax-increment funds for improvements to the Hult Center. Responding to a question from Ms. Ehrman, Mr. Farkas said the City's plan to provide awnings in the downtown is not completed. The plan will provide loans which will be forgiven in ten years if the awnings are maintained. Replying to questions from Ms. Schue and Mayor Obie, Mr. Farkas said the council must decide about the length of the Urban Renewal Plan. Mr. Sercombe said State law indicates a tax-increment district will cease when the revenues exceed the expenditures. Mayor Obie directed the staff to discuss ways to terminate the Downtown Urban Renewal District and the advisability of terminating the district when the council considers tax-increment financing again. Mr. Miller asked the staff to discuss ways of tying a retention of the tax rate outside the district to the termination of the district. Mr. Hansen said the school districts in Lane County are interested in the termination of urban renewal districts. e MINUTES--Eugene City Council November 19, 1986 Page 4