07/29/1987 Meeting - Laserfiche WebLink

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said he agreed with Mr. Rutan that a stated goal should be the maximum amount of private investment, because it was the most efficient type. Mr. Bennett e also said he did not expect to meet that goal soon and he thought decisions should be based on how the Council perceived the position of downtown relative to that of the community as a whole. He said blighted areas were so designated in order to assist areas that otherwise would not develop and that otherwise would not generate additional tax revenue. He said he hoped the district would end when downtown was healthy and self-sustaining. In the meantime, he said he considered downtown the cultural, business, and financial center to the community and he thought it needed the support provided by expansion. Mr. Holmer said he agreed with Mr. Bennett's observations about the importance of downtown, adding that he thought the Urban Renewal Area as currently defined was a huge area that needed substantial further development. He said he did not think extension of the boundaries was appropriate when major planned expenditures over the next 20 years were for developments within the existing Urban Renewal Area. He also said adding further obligations outside present boundaries would be unwise until greater incremental progress had occurred in the current area. Mayor Obie said he had supported downtown for many years, but he thought the costs to the rest of the community at some point should be considered. Ms. Ehrman said she agreed wi th removing from the di stri ct any current propert i es that already had been developed. Mr. Mill er said dropping developed properties from the district would eliminate the increments that were intended to assist further development. He said a transition that would avoid a net loss of revenue to the City would provide greater incentive to e phase out increment districts. Mr. Rutan asked what expectations had been conveyed to property owners in the district. Mr. Farkas said the district was to end when all of the debt had been paid off. He added that the community could incur more debt if wanted. He also said property owners paid the same amounts regardless of whether they were located inside or outside the district. Mr. Holmer said taxpayers outside the district would receive a slight increase in rates. Mr. Byrne said one way to avoid dependency on tax increment funds was to adhere closely to the State's intent by spending money on capital improvements and not on operating and maintenance expenses. He said that had been past practice and was appropriate. He al so said State law allowed a renewal district the powers of an agency without tax increment funding, which was a separate section of the law. Mr. Byrne said staff had seen no options for funding, but if alternatives were identified in the future, those funding sources could be used by future councils or agencies. He also said the City was committed to servicing the debt with funds from developed property. Mr. Bennett said the expanded area would not encompass all of downtown. He said he agreed that a different approach was required in developing vacant or underused land than that required for locating a business. He also said he understood that the City still owned between 20 and 26 percent of the land in the district, which was vacant, and he saw no other way to succeed with e MINUTES--Eugene City Council July 29, 1987 Page 6