02/15/1989 Meeting - Laserfiche WebLink

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e e e F. Resolution Regarding Downtown Develo'pment District Tax Election Mayor Miller said he and Ms. Bascom favor postponing the election regarding the Downtown Development District ad valorem tax until May. He felt that if the issue were placed on the ballot with the library, the two issues might be confused for some voters. Mayor Miller said the council can choose to put this issue on the ballot in May. Mayor Miller asked whether the council must continue to hold an election with regard to this tax. City Attorney Tim Sercombe said staff recommends that the council continue to vote on this issue. He said it may be possible to hold future votes less frequently than once a year, however. Mr. Bennett felt that, at least at this time, the council should not consider holding the tax vote less frequently than once a year. Mr. Boles did not feel the voters would be confused by placing this issue on the ballot with the library, although he was willing to postpone the election in accordance with council sentiment. The council agreed to postpone the resolution calling for an election on the Downtown Development District tax. II. WORK SESSION: URBAN RENEWAL PLAN UPDATE--DISTRICT EXPANSION Bob Hibschman, Development staff, said the Downtown and Planning commissions originally recommended to the City Council that the Downtown Urban Renewal District be expanded toward the northeast. After the council reviewed this, it decided that development would be more likely to occur to the northwest of the current district. Since then, discussion of the possible expansion of the district has focused on the northwest area. Mr. Hibschman reminded councilors of the three general options: 1) do not expand the district; 2) expand the district (the expansion area can be no larger than 20 percent of the original district); or 3) create a new urban renewal district. Mr. Hibschman gave an overview of urban renewal generally and of the history of the Downtown Urban Renewal District, which was formed in 1968. Urban renewal is a tool designed to stimulate private investment and economic development. State law requires that it be used to correct deficiencies in an area--in other words, to eliminate blight. Urban renewal districts can leverage development in several ways: by making public improvements and constructing or upgrading the infrastructure; by assembling land and then selling it (perhaps at below-market rates) to developers; by making loans for private sector businesses to make improvements; and by constructing parking facilities necessary to support intense urban development. When a district is formed, the property tax base of the area is frozen, and tax revenue from this base continues to go to the General Fund; however, the tax revenue from any increases in the property value of the area goes to the district (this is the tax increment revenue). Eugene's Downtown Urban Renewal District showed significant increases in incremental value during the early 1970s and almost MINUTES--Eugene City Council February 15, 1989 Page 3