Item 3: Ordinance on Downtown Urban Renewal Plan Amendments

Home Browse Search

figure does not authorize or obligate the district to enter into debt. Rather, it allows current and future Urban Renewal Agency (URA) Boards to have the ability to fund projects over time, either with cash or by issuing debt. Extending the termination date allows the URA to issue debt with a 20-year repayment schedule, which maximizes the ability of the URA to contribute to a large-scale development effort such as the West Broadway redevelopment project. This proposed amendment enables urban renewal financing to assist the West Broadway Redevelopment Project. The council was presented with a preliminary finance plan in May. Urban renewal funds, a federal BEDI grant and a HUD Section 108 Loan were identified as potential resources that could be used for this project. The preliminary financing plan assumes that the City’s financial participation in this public/private partnership will consist of several types of expenditures. There would likely be some contribution towards the land acquisition and public site-related costs (utilities, sidewalks, etc.). The City would most likely be asked to pay for a publicly-owned parking garage. For the housing portions of the project, the developers may request a low-income housing loan, which would be repaid over time. They may also request a 10-year Multi-Unit Property Tax Exemption or a 20-year low-income housing exemption. (This information is speculative because the City and the developers have not yet negotiated specific financial arrangements.) Increasing the maximum indebtedness and extending the termination date are necessary to allow the Urban Renewal Agency to increase its financial capacity to fund the City’s anticipated financial participation in the West Broadway redevelopment effort. City Council action on the plan amendments is scheduled for August 13, 2007. This timeline enables the amendments to take effect in a timely manner to assist the West Broadway Redevelopment Project. RELATED CITY POLICIES The redevelopment of West Broadway is related to one of the 2007-2008 City Council Goals: – Downtown InitiativeFacilitate significant revitalization of downtown core. Downtown development is guided by policies in the Downtown Plan and Growth Management Policies (#1, 2, 3, 10, and 14). In particular, the Downtown Plan includes policies that state that the City should: ? Actively pursue public/private development opportunities to achieve the vision for an active, vital, growing downtown; and ? Use downtown development tools and incentives to encourage development that provides character and density downtown. A number of financial policies would guide the creation of the final economic development finance plan, including the City’s debt policies. COUNCIL OPTIONS Following the Public Hearing, the council can adopt the plan as proposed, decline to amend the plan or adopt different amendments than proposed. L:\CMO\2007 Council Agendas\M070716\S0707163.doc