Item 3: Ordinance on Downtown Urban Renewal Amendment

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Text in the Plan related to LCC’s existing building on Willamette Street and the possibility that the Agency would acquire that building has been deleted. th Based on our understanding that the VA did not select PeaceHealth’s 12 and Willamette Clinic location for its request for proposals short-list, text in the Plan related to the VA Clinic project has been deleted. Specifically, the boundary expansion of 5 acres is no longer included and the $2.5 million was removed from the spending authority. Text was reordered and other text added to make clearer that this update is intended to narrow the types of projects authorized by the existing Plan down to two projects (Broadway Place Garages and Farmers’ Market) and to add one project not explicitly authorized by the existing plan (LCC). School District 4J Intergovernmental Agreement Based on current circumstances, existence of the Downtown District (and tax increment financing) results in a net financial benefit to School District 4J of approximately $117,000. However, if the School District’s local option levy is not renewed at a future date, the potential exists that the continuation of tax increment financing could cause a loss in revenue to the School District. If council approves the amendment to the Plan, the City Manager and School Superintendent intend to use an Intergovernmental Agreement to protect the School District from the possibility that the School District could lose revenue in the future as a result of the continuation of tax increment financing in the Downtown District. The remedy for a loss to the School District as a result of the existence of the Downtown District would be a) the provision of additional services to the School District, b) a reduction in the amount that the School District pays the City for services, or c) a cash payment. In the event that the School District elects to request a cash payment, the City Manager would present a supplemental budget to council for approval. RELATED CITY POLICIES Downtown revitalization and the projects referenced in this material are supported by the Downtown Plan, council’s 2009 Vision & Goals, and a number of plans and reports related to downtown. A number of financial policies would guide the creation of the final finance plan, including the City’s debt policies. COUNCIL OPTIONS 1.Adopt the ordinance amending the Downtown Urban Renewal Plan. 2.Include alternative amendments to the Downtown Urban Renewal Plan. 3.Decline to adopt the ordinance amending the Downtown Urban Renewal Plan and consider other funding sources for the proposed projects or consider not undertaking some or all of the projects. CITY MANAGER’S RECOMMENDATION The City Manager recommends that council adopt the ordinance amending the Downtown Urban Renewal Plan as set out in Attachment A.