Agenda Packet AMENDED 4-15-19 Work Session

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April 15, 2019, Work Session – Item 1 •Construction or reconstruction of streets, utilities, and site improvements; •Relocation of individuals living in the URA; and •Carry out work which a housing authority is authorized to perform (under ORS 456.055 to456.235). Some UR agencies use tax increment funds to pay all or some system development charges, building permit fees, or local improvement district assessments. These costs are part of ‘site improvements,’ which are allowed under state statute. Steps to Create an Urban Renewal Area A community looking to create an URA should first identify the goals and objectives for the subject neighborhood. Understanding the goals and objectives can help clarify if TIF is an appropriate tool. A preliminary feasibility study can help determine if the defined area can generate adequate tax increment revenue to cover the cost of the investments. If the community determines that TIF is an appropriate tool, it can begin the technical process to create an URA. Some of the key steps include the following: •Define the need for an Urban Renewal area. Oregon statute requires that an Urban Renewalplan includes reasons for the selection of the geographic area. For a city the size of Eugene, state statute limits the amount of acreage that may be in an Urban Renewal area to less than 15 percent of the whole city and assessed value to less than 15 percent of the whole city. •Set a boundary from where tax increment will be generated. The geographic boundaryestablishes the ‘frozen base’ for the tax increment revenue. •Establish the planned projects, estimated costs and the maximum indebtedness. •Adopt the plan according to process prescribed in ORS 457.Staff have prepared preliminary estimates of assessed value for property along Highway 99 and present the analysis to Council at the work session. Oregon statutes required public involvement at all stages of development of an Urban Renewal plan. It also requires that the Urban Renewal agency ‘consult and confer’ with affected taxing districts. In Bethel, the primary affected taxing districts include the Bethel School District and Lane County. The Urban Renewal agency, however, has final authority to establish a new URA. Creating a new Urban Renewal area is technical and complicated. A jurisdiction should expect the process to take approximately 18 months, substantial staff time and consultants. Other Tools Urban Renewal and TIF is one of the tools available to local governments in Oregon that can be deployed to improve public infrastructure and encourage private investment in the area. Like any toolbox, some tools are better suited for particular tasks. The City of Eugene currently has the following investment tools available with the potential to apply to the Bethel Area. Multi-unit property tax exemption is a tool to encourage residential development in a defined neighborhood. MUPTE reduces the operating costs of new multi-unit development, thereby