06/24/1987 Meeting - Laserfiche WebLink

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the agency acquire any. He said that if staff ever makes such a recommendation, it would be in response to a specific development proposal. e In response to a question from Mr. Holmer, Mr. Byrne said acquisition of property would require Renewal Agency approval. Mr. Gleason said that if councilors would like additional staff research on any of the plan update issues, they should inform staff now. Ms. Ehrman said,one of her concerns is the inclusion of the IBM bUilding in the proposed expansion area. She said she realized that not including it would create an "island" in the district, but she made the point that the building is definitely not blighted. Ms. Schue asked whether the agency would ever spend any money on the IBM building, and whether the addition of the building to the district would increase the funds available to the agency. She said she would like staff to address these questions and the concerns raised by Ms. Ehrman in more detail. Mr. Bennett said that in his memo, Mr. Holmer made the point that financing for downtown projects should be consistent with how projects are financed in other parts of the community. He said tax increment financing is a tool that works very well. He said it has allowed development to occur downtown much sooner than would have happened without this method of financing. Ms. Schue agreed, but said the City has been using tax increment financing downtown for almost 20 years, and may use it for 20 more. She said it is important to realize that the use of tax increment financing imposes a cost on the rest of the community. She said it makes the general tax levy higher. She e said that at some point, the City must ask: When has this special benefit for downtown run its course, and when to the taxes on downtown properties begin to go into the whole community budget? Mr. Holmer agreed. He added that in the past 20 years, there has not been a true increment of value, on which the tax increment system rests. He agreed that improvements have been made downtown; however, beyond inflation, the total value of the real property in this community has not increased. Ms. Wooten said the council was once again discussing whether tax increment financing should be used. Ms. Ehrman said that perhaps the issue should be rediscussed, because Mr. Holmer had raised it in connection with the proposed expansion of the district. Mr. Rutan said that whether to use tax increment financing is one of the overriding issues before the council. He said the council has not addressed this often enough in the past. Mr. Gleason said that several months ago, the council discussed and voted on the issue. Only one councilor, Mr. Holmer, voted against the use of tax increment financing. Ms. Wooten asked whether the use of tax increment financing was, therefore, not an issue relative to the Urban Renewal Plan update. e MINUTES--Eugene City Council June 24, 1987 Page 9