08/12/1985 Meeting (2) - Laserfiche WebLink

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RIVERFRONT RESEARCH PARK URBAN RENEWAL DISTRICT . August 30, 1985 Page 3 estimate of tax increment revenue is included in the financial analysis. The financial analysis shows that the project is financially feasible. The ana ly- sis is based on a number of assumptions. The analysis assumed a 1 million square foot build-out over a 20-year period with tax increment projected at a tax rate that assumes continuation of the current tax rate system and is expressed in 1985 dollars. That financial analysis is contained on page 10 of the report and is expressed in further detail under Label l-C, pages 19 and 20, in the appendix. The financial analysis is intended to be a guide to demonstrate how the development may take place based on information available to da tee As more information is obtained year after year, this guide could be updated to further reflect how the project would be developed. Actua 1 impl e- mentation would be guided yearly through the City's budget process and capital improvements programming. The development agreement with Carley Capital Group will further describe the phasing of the capital improvements. Impact of Tax Increment Financing on Taxing Districts Concern about the impact of tax increment financing on the taxing districts was expressed at both the advisory committee and Planning Commission hearings. The chart, provided under separate cover, labeled "Projected f>4,arginal Change e in Property Tax Rates Due to Tax Increment" shows how the tax ra te may be affected during and after the tax increment district. The impact during the life of the tax increment district is attributable to the freezing of the assessed value in the increment district. For instance, this would impact the City of Eugene's tax rate by 4t per $1,000 of assessed value in year 10. In year 21, when the district is terminated, the City of Eugene tax rate shoul d be reduced by 40t per $1,000 of assessed value. This reduction is due to increases in assessed value from inflation and ne\'1 construction. New con- struction on the University of Oregon property will place the improvements on the tax roll s. The tax rate chart and an explanation of impacts has been provided to the School District 4J Board as they are the largest taxing entity. Adopting Ordinance The ordinance adopting the urban renewal district includes determinations hat the proposed area is blighted and that carrying out the plan is economically fea sib 1 e . The ordinance is effective 30 days following adoption as it is adopted by non-emergency ordinance. A copy of the proposed ordinance is provided under separate cover. RAH:cj/1698a .