06/12/1985 Meeting - Laserfiche WebLink

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M E M 0 RAN DUM e June 7, 1985 . TO: Mayor and City Council FROM: Gary Long, Development Department Director SUBJECT: CREATION OF A RIVERFRONT RESEARCH PARK TAX INCREMENT DISTRICT ADVISORY COMMITTEE Background A committee was appointed by the City Council in the summer of 1984 to guide the development of the Riverfront Park Study. This committee consisted of members representing EWEB, Agricpac, University of Oregon, residents, property owners, Chamber of Commerce, Downtown Commission, Planning Commission, and City Council. A list of the committee members is attached to this memorandum. At its final meeting, the committee discussed tax increment financing as a means to provide public improvements for the proposed Riverfront Research Park. The committee agreed with the staff recommendation to use the Riverfront Park Study area as a proposed tax increment district. - Tax Increment Financing The Riverfront Park Study suggests that tax increment financing is an appro- priate means to finance the project. The study identifies existing conditions of the proposed area to be addressed by the tax increment district's goals and objectives. These conditions identified include: lack of adequate access and utilities, underdeveloped and undeveloped property; and areas SUbject to flooding. Based on 1984 assessor's data, a preliminary analysis has been done to determine the total assessed value in the proposed area as it relates to the 15 percent limitation in the State statutes. The State statutes limit a city to having 15 percent of its assessed value included in the frozen base of tax increment districts. The combined assessed value of the Central Eugene Project and the proposed Riverfront Park district is estimated to be about 2.5 percent of the City's total assessed value. There is also a similar 15 percent limitation concerning the amount of land used in tax increment districts. The combined total for the Central Eugene Project and proposed Riverfront Research Park Project is estimated to be less than two percent of the City's total land area. Thus, both land area and the assessed value would comprise only a small portion of the total capacity for the City to be able to do additional tax increment districts in the future. Tax Increment District Process The process to establish a tax increment district is initiated by the City's Renewal Agency (City Council). The City Council would establish an advisory e committee, a study area boundary, and direction for the study. It is recom- mended that the advisory committee consist of the previously appointed