Item A: Downtown Development Financial Tools

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The Broadway Place development required parking spaces for the retail and housing components of this public/private partnership. The City assembled the land, built the two public garages, and sold the “air rights” to the developer at a reduced rate for the construction of commercial and residential portions. (The purchase of “air rights” allows the developer to develop on top of the garage.) Broadway Place also received a MUPTE (10 year property tax exemption on the housing portion of the project). The City used its full faith and credit pledge to issue bonds to pay for the garage. The bonds are repaid from parking revenues. The City has not had to use its general resources to make debt service payments. C. Public Infrastructure Public Infrastructure Summary Utility relocation/upgrades, transportation improvements Investment in current and future developments in given area Funds from a wide variety of sources Public infrastructure includes streets, sidewalks, lighting, landscaping, open space, pedestrian improvements, utility relocations and upgrades, or transportation improvements. Cities and urban renewal agencies can provide infrastructure as a means of investing in a development with the intended purpose of the development being a trigger for further development in the area that will also benefit from the infrastructure improvements. A variety of funds may be used to pay for the improvements, depending on the nature of the project, such as SDCs, assessments, road funds, general funds, tax increment funds, and other resources. Examples:Reopening of West Broadway, Courthouse District A public infrastructure investment was made with the reopening West Broadway in 2002. The project included the reopening of the street, pedestrian improvements, landscaping, and public art. The total expenditure was $2 million. Public funds were matched with $200,000 in private contributions. Additionally, the Riverfront Urban Renewal District provided funds to underground the utilities in the courthouse district. D. Direct Investment Direct Investment URA participation through a grant program Funds from tax increment revenues The City/URA could also directly invest in a development as a way to reduce overall cost. Funds could come from various sources, but would most like come from tax increment financing. The City has not chosen to use direct investment in the past. The City’s preference has been to provide loans, which revolve and provide funding for additional future projects. Example:No previous example. 3. EXAMPLES FROM EUGENE AND OTHER COMMUNITIES Many communities have successfully supported downtown development through the use of public financial tools. Development division staff has researched a number of downtown projects and public private partnerships in Eugene and other cities. Although the goal of a vibrant, place-specific downtown was similar among the communities, the amount and impact of public dollars and the overall size of the projects varied widely. Brief summaries of eight examples, including 3 projects in Portland, are summarized below. (See Attachment D “Case Studies” for detailed information on each project.) Page 11 of 13