Item A: Downtown Financing Strategy

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Financial Impact on Redistributes existing Downtown Urban Renewal cash (one-time) o taxing districts Ends ongoing redistribution of taxes to Downtown Urban Renewal District o (See Attachment G and L for projected amounts available annually if tax increment financing were to be terminated.) Timing/Process Collection of tax increment funds would cease as of FY11 and taxing districts o would receive one-time and on-going property tax revenues Downtown Urban Renewal District may use remaining amount under the cap o on projects included in the current district plan and approved by the URA Board. Downtown District administration of Beam project is assumed to occur o through FY11 under any scenario. Voting/Elections n/a Unfunded Items No more downtown loans Other Impacts New General Fund revenue freed up from tax increment financing termination may not provide sufficient funding to pay for inflation on the cost of police officers over time Additional Information A.Items not Included in the Existing Resources Funding Option 1.Facility Reserve (per council direction on February 22, 2010) 2.LCC Related Land Values LCC’s existing property: LCC’s current downtown center is on Willamette between - thth 10 & 11 avenues and was appraised at $1.2 million. LCC needs to occupy the existing building until the new building is complete. The timing associated with selling the property after it has been vacated does not generate (or guarantee) funds that can be used for construction of the new building. LCC has asked the URA to commit to purchase the existing property up front so that the proceeds can be used for the new project, which will be part of the March 10 URA Board work session. If acquired, the property would be redeveloped for either private or public uses pending future action by the URA Board. th URA’s 10 & Charnelton Site: LCC’s projected financing gap includes zero land cost; - therefore, granting the property to LCC does not reduce the $8 million need. 3.Sale of City/URA Assets: The sales process (including council actions, advertising, negotiating, and closing) and market uncertainty related to the economy make it difficult to rely on sale proceeds in time to meet LCC’s project needs. It may take a long period to identify a buyer and commitment of a specific amount of project funding based on a future sales price could be very volatile in this economy. How it Works – Cash Flow Projections The following chart shows a rough estimate of how this scenario would work.