Ordinance No. 20459 - Laserfiche WebLink

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Chapter 8: Financial Analysis of the Plan with Sufficient Information to Determine Feasibility The financial analysis of the plan shown in Table 6 in Exhibit D includes the anticipated tax increment revenues over the projected remaining life of the Plan. The analysis shows that the anticipated tax increment revenues are based on reasonable projections of new development and appreciation in existing property values. The projection of tax increment revenues is based on the following assumptions: • Property assessed values will increase by 2% per year, which includes increases on existing property as well as a small amount of new investment in existing downtown area properties. • One significant, new taxable development is anticipated during the remainder of the life of the district. Beam Development is currently working on rehabilitating the building on the southwest corner of Willamette and Broadway. The projections assume that this project is completed and generates additional taxable value within the Plan Area. • The Broadway Place development's Multi -Unit Property Tax Exemption will expire, and the project will start paying additional taxes beginning in FY11. • Tax rates applicable to the Downtown Urban Renewal District are projected to go down over time, due to the Oregon statute that says that certain urban renewal plans may only collect tax increment on permanent tax rates or bonds and levies approved by voters prior to October 6, 2001. In particular, bonded debt tax rates applicable to the Downtown Urban Renewal District will be reduced as bonds approved by voters prior to October 6, 2001 are retired. The projections result in urban renewal tax revenues between FY2010/2011 and FY2017/2018 of approximately $14.5 million. Together with other revenues and existing fund balances, these revenues will support the $13.6 million of increased maximum indebtedness plus the interest on the debt to fund the Projects proposed under the 2010 Amendment. In addition to the redevelopment projects, the revenues will be sufficient to pay for administrative activities, including an allocation of central service overhead costs. Those costs are projected to increase over time due to inflation at a rate of between 2% and 5% per year. The Agency will also carry a reserve on outstanding bonds until those bonds are fully paid off, as well as a balance equal to two months of operating costs each year, per City of Eugene financial policy. Report on the 2010 Amendment 13