Agenda Packet 3-11-19 Work Session

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March 11, 2019, Work Session – Item 2 Broadway and Hilyard Remnant: Following City Council direction, the City completed a Request for Proposals process to find a buyer for the City owned remnant to provide a distinctive urban vision to generate positive activity in this urban downtown setting and complement recent investment in the Courthouse District. Albeit small, the property is prominently located on a key urban corner in close proximity to the southern entrance to the Downtown Riverfront development making it a redevelopment opportunity. A proposal has been selected and deal points are being developed. Adjacent property owners are being consulted to gauge interest in selling before deal points are finalized and presented to council. Consolidating adjacent property would provide better options for redevelopment of this corner. Franklin Boulevard: In early 2019, the City began the Franklin Boulevard Transformation Process that will lead to a new street design for Franklin Boulevard from Alder Street to I-5. Key objectives of this project are to accommodate more frequent EmX service along Franklin, to design a street that better supports the compact, mixed-use development envisioned in the Walnut Station Specific Area Plan, and to create a safer and more comfortable environment for people walking both along and across Franklin. City staff are collaborating closely with staff from Lane Transit District and the University of Oregon. Constructing this project will likely require a federal grant and a source of local funding will be required to match any federal grants. District Financial Capacity The Riverfront District spending limit (“maximum indebtedness”) is $34.8 million. “Maximum indebtedness” is a spending cap of tax increment revenue over the life of the district. After accounting for the costs in section A above, the amount that currently remains uncommitted is estimated to be $12.3 million. However, current projections show that the District may not collect enough tax increment revenue through FY24 to realize the full amount of maximum indebtedness. It is estimated the District will collect enough tax increment revenue through FY24 to fund approximately $10.3 million of new expenditures on top of those that are already committed. In addition to tax increment revenue, the District also has program revenue, which are dollars from non-property tax sources, such as land sales and rental income. Program revenue is tracked separately from tax increment revenue because program revenue can be used for different purposes, such as providing funding for River Loans and expenditures of program revenue are not included in maximum indebtedness. Current projections show that the District will collect enough program revenue through FY24 to fund approximately $7.8 million of new expenditures after setting aside $1 million for River Loans. Including both tax increment and program revenue, it is estimated the District may have approximately $18.1 million in total financial capacity to fund new expenditures through FY24. Please note the District does not currently have this amount on hand. Rather, this is an estimate of existing District resources plus projected revenue through FY24.