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Ms. Schue asked why staff believes that development wi 11 occur in the expansion area if infrastructure improvements are made. Mr. Hibschman said e that when selecting the expansion area, staff and the Downtown Commission did not spend too much time trying to predict where development would occur; rather, the area was selected because of its blighted conditions and because of policy direction in the Downtown Plan and Urban Renewal Plan. Mr. Hibschman added that staff's discussions with property owners in the expansion area indicated that the urban renewal too 1 swill be used by owners in the area. Mayor Obie outlined the following scenario: instead of expanding the district now, the City could wait until it knew of a specific development that was ready to occur outside the Urban Renewal District boundary; then the City could expand the district1s boundary in order to use the urban renewal tools to facilitate the development. He asked whether such a boundary change could be made in a timely enough fashion to respond to future developments. Mr. Hibschman said that changing the district's boundary would be at least a four- to six-month process. Mr. Hibschman referred the council to a chart showing ten-year cumulative projections for revenue and expenditures of the Urban Renewal District if the district is expanded. Cumulative Revenue from FY88-97 Existing District Area: $ 44.9 mill ion Expansion Area: 5.4 million (tax increment only) $ 50.3 mill ion e Cumulative Expenditures from FY88-97 Existing District Area: $ 45.5 million Expansion Area: 3.2 mi 11 ion (does not include costs for rehabilitation loans or development financing) $ 48.7 mill ion Mr. Hibschman said that after the costs for rehabilitation loans and development financing in the expansion area are included in the expenditures, the ten-year cumulative revenues and expenditures of the expansion area are roughly equal. The Urban Renewal District can be expanded no more than 20 percent beyond its initial size. In response to a question, Mr. Hibschman said the proposed expansion area is about an 18 percent expansion (this would leave about a quarter-block for future expansion of the district). Mr. Holmer asked staff to discuss at a future meeting why the recommended plan update did not call for an expansion of the entire 20 percent. Mayor Obi e asked staff to provi de more information on how the proposed expansion area was selected, and on the interviews that were done of property owners in the expansion area. He also asked staff to provide any information e MINUTES--Eugene City Council September 30, 1987 Page 11