Loading...
HomeMy WebLinkAboutItem 3 - PH on Downtown UR PlanEUGENE CITY COUNCIL AGENDA ITEM SUMMARY Public Hearing: An Ordinance Adopting an Amended Urban Renewal Plan for the Central Eugene Project Meeting Date: August 9, 2004 Agenda Item Number: 3 Department: Planning and Development Staff Contact: Richie Weinman www. cl. eugene, or. us Contact Telephone Number: 682-5533 AGENDA ITEM SUMMARY This is a public hearing on proposed amendments to the Central Eugene Project (Downtown) Urban Renewal Plan. BACKGROUND The Urban Renewal Agency (URA) is asked to consider amendments to the Central Eugene Project (Downtown) Urban Renewal Plan. The new Eugene Redevelopment Advisory Committee (ERAC) carefully studied the Downtown UR Plan and following four meetings, recommended amendments. The Planning Commission, on June 14, 2004, voted to forward these amendments to the City Council and URA. The URA conducted a work session on July 12, 2004. The discussion at the work session resulted in several changes to the draft plan. In January 2003, the council began a multi-step process to implement the Vision for a Greater Downtown Eugene. This and the recently updated Downtown Plan include recommendations to enact implementation tools, including using urban renewal as a financing tool. Since January 2003, the new Downtown Plan has been adopted, two property tax exemption programs have been put into place, and the Riverfront Urban Renewal Plan was updated. In March 2004, the URA voted to forward the proposed amendments to the Downtown UR Plan to other taxing districts, the Planning Commission, and the public for comment. These amendments included: 1) removing the restriction on the use of tax increment funds solely for library projects; 2) extending the district timeline to 2029; and 3) changing the maximum indebtedness. The Eugene Redevelopment Advisory Committee and the Planning Commission recommend the first two elements but do not recommend changing the maximum indebtedness at this time. Other amendments reflect the council's previous direction on projects, method of amending the Downtown Urban Renewal Plan in the future, and changing language in the plan to conform to current state statutes. As required by State statute, the impacted taxing jurisdictions have been notified and sent a copy of the proposed amendments to the Downtown Urban Renewal Plan. In addition to this public hearing, these amendments have been the subject of significant opportunity for public comment. At each of the public information sessions related to the update of the Downtown Plan, use of urban renewal funding was highlighted as a tool. One event, "Lookin' Forward at Downtown," drew over 125 people during the L:\CMO\2004 Council Agendas\M040809\S0408093.doc December 5, 2003, First Friday Artwalk. In addition to visual displays and handouts, staff encouraged comments. That event was advertised in both the Register Guard and Eugene Weekly. Council Action History Please refer to Attachment A for recent council history. Policy Issues Improving the viability of downtown has been a community and City Council goal, in some form, for decades. The adopted Growth Management Policies, the Vision for Greater Downtown Eugene, the council's 2001-2002 Vision and Goals Statement, and the new Downtown Plan all include policies or strategies to create a more vital downtown. There is a close relationship between urban renewal goals and these policies. The Downtown Plan, for instance, includes a policy to "use downtown development tools and incentives to encourage development that provides character and density downtown." Council Goals The recently adopted Downtown Plan provides policy direction for financing tools, including urban renewal. This plan also reflects City Council goals, particularly "Sustainable Community Development." Financial and/or Resource Considerations The proposed Downtown UR Plan does not recommend a change in the boundary area or reflect any changes to the maximum indebtedness. Changes in these provisions of the plan would jeopardize the URA's ability to collect the special levy that is needed to repay the library debt. Other Background Information Responses to Comments from the July 12th Work Session Councilor Bettman asked about the $1.5 million shown as project expenditures in FY04-05 in Table 5 of the Draft Downtown Urban Renewal Report on the Plan. The figures shown in this table represent the amount of funds that are projected to be available for project expenditures in each future year, based on estimated tax rates and estimated property values in the district. It is not possible to accurately predict exactly which project will occur in what year. The figure shown for FY04-05 of $1.5 million under the category of development and redevelopment assistance is a placeholder for the amount of funds that are projected to be available in the current fiscal year for projects. Before any of those funds could be spent, the urban renewal plan would have to be amended and the City Council, acting as the Urban Renewal Agency, would have to approve a budgetary appropriation. At the time that a budget request is made of the agency, staff would provide an explanation of how the funds would be used. As stated in the plan, any project over $250,000 would be explicitly approved by the City Council acting as the Agency. Councilor Pape' and Councilor Taylor asked for information about the use of urban renewal funds in this district in the past. Attachment E provides an overview of that history. A detailed report that includes specific expenses is not available. It might be possible to research those costs in the future, but it would take substantial staff time to locate and analyze documents that were archived long ago. It is important to note that the definition of"Urban Renewal" has changed since 1968 when the district was created. In Oregon, the term now essentially refers to the use of tax increment financing to fund projects. When the downtown district was created, it took advantage of substantial federal grant funding. Grants were authorized by congress to respond to the deterioration that was taking place in L:\CMO\2004 Council Agendas\M040809\S0408093.doc cities throughout the United States. In fact, it has been reported that Eugene was the very last jurisdiction to receive a federal Title 1 Urban Renewal Grant. For every dollar of local match, there were two federal dollars granted. It was these federal urban renewal funds that paid for acquisitions and the rehabilitation or demolition of many substandard structures. The City match came from tax increment financing, road funds, and other local sources. A special district created to construct the Overpark Garage at 10th and Oak provided a significant portion of the federal match. Renewal district activities included substantial upgrades to the downtown infrastructure. Up until that time, the storm sewer and sanitary sewer systems were combined. They were separated with UR funding and the sanitary sewer lines, many in deteriorated condition, were all relined. EWEB upgraded the electrical grid and improved the downtown steam system to heat buildings. These infrastructure improvements made greater density downtown possible. All downtown buildings were evaluated for safety. Inspectors considered issues such as earthquake standards, fire danger, and the safety of exits and entrances. Many of the existing buildings were constructed prior to 1910. They were constructed of brick using a lime mortar that deteriorated over time and caused the buildings to crumble. Foundations sometimes barely existed. One example was a drug store at Broadway and Willamette where the plaza is now. The foundation was stacked stone with no mortar or cement. Frequently buildings had very steep wooden stairways to the second floor. These were a severe danger in case of fire. As a result, some buildings were rehabilitated (including Smeede Hotel, Penney' s, Broadway Department Store, Montgomery Wards, Axbilly Department Store, Shafer Building, McDonald Theater Building), some were demolished, and others were newly constructed. Staff has located some large maps that show the inventory of the downtown buildings and their condition. These will be placed in the City Council office prior to the public hearing. Councilor Meisner and others raised questions concerning the length of the term of the proposed Downtown district extension. Specifically, a question was asked about what could be accomplished if the council chose shorter term extensions of various lengths. Urban renewal works best as a tool to assist communities to take advantage of redevelopment opportunities as they arise. It is very difficult to project when urban renewal funds will be needed for particular improvements or expenditures that would leverage certain private investments. The district is currently set to expire in 2009. The revenue projections indicate that a maximum of about $1.2 million (revenue after library debt service) could be available in any single year to fund downtown projects. With a limited term extension, the district would be very constricted in its ability to use bonds to fund larger expenditures like significant public works projects or property acquisitions. It is important to recognize that these larger urban renewal projects are realized over longer periods of time. For example, the new downtown library project is a 16-year urban renewal project which began with the 1993 property acquisition and ends with the 2009 payoff of urban renewal bonds. Longer term extensions of 10, 15 or 20 years would provide the flexibility necessary to use a combination of current year revenues and debt to achieve redevelopment. Councilor Taylor and Councilor Kelly requested information about how tax increment financing works. Attachment F provides basic answers to some complicated questions. Extensive detailed information can be found at the website for the Association of Oregon Redevelopment Agencies (AORA). The specific URL is: http://www.orurbanrenewal.org/DesktopDefault.aspx?tabindex=4&tabid=302 Timing Action is scheduled on September 13, 2004. L:\CMO\2004 Council Agendas\M040809\S0408093.doc OPTIONS The Urban Renewal Agency may forward this for action on September 13, 2004 or may choose to change the date. STAFF RECOMMENDATION Staff recommends discussion and action on September 13, 2004. SUGGESTED MOTION Move to forward proposed amendments to the Central Eugene Project (Downtown) Urban Renewal Plan, for action on September 13, 2004. ATTACHMENTS A. Council action history B. Proposed ordinance C. Proposed plan and proposed plan showing changes from existing plan D. Report on plan E. History of urban renewal projects F. Answers to questions about urban renewal FOR MORE INFORMATION Staff Contact: Richie Weinman Telephone: 682-5533 Staff E-Mail: richie.d.weinman~ci.eugene.or.us L:\CMO\2004 Council Agendas\M040809\S0408093.doc ATTACHMENT A Council Action History on Downtown Urban Renewal District Plan Amendments On June 1, 1998, and in response to the provisions of Measure 50, the council amended the Downtown Urban Renewal Plan to grandfather the district, select a tax option and set a maximum indebtedness amount. As part of that action, the council specified that tax increment funds should only be used for development of a downtown library, for completion of certain existing projects, and payment of district administrative expenses. On February 28, 2000, the council authorized the issuance of City of Eugene bonds to fund a portion of the cost of constructing a new library. At the same time, the council authorized the City Manager to enter into an intergovernmental agreement with the Urban Renewal Agency for the Agency to pay the City any amounts needed for the library project, including amounts to cover the debt service on the City bonds issued for the library. In January, 2003 Council began a multi-step process to implement the Vision for a Greater Downtown. This included using urban renewal as a financing tool. On January 29, 2003 and February 12, 2003 a consultant presented options for financing downtown improvements, including the use of urban renewal districts as a tool. Three options were presented for using urban renewal districts: (1) amendments to the Riverfront Urban Renewal District Plan; (2) amendments to the Downtown Urban Renewal District Plan; and (3) creation of a new district that would create a ring around the existing Downtown Urban Renewal District. Council directed staff to work on all three options. On July 25, 2003, the council directed the Agency Director to initiate the process to amend the Downtown Urban Renewal District Plan to allow the use of tax increment funds for projects in addition to the new main library. The council also directed the Agency Director to implement a loan program for the Downtown Urban Renewal District, to be budgeted on SB#1 in FY04. On November 19, 2003, council discussed proposed amendments to the Downtown Urban Renewal Plan, including an expansion of the projects contained in the plan. Council approved preparation of Downtown Urban Renewal Plan amendments as proposed by staff, with amendments to include a public advisory committee, specific agency approval of projects greater than $250,000 other than loans, and adding a limit of $100,000 on the mandate for a public hearing in the event of a plan change. On March 8, 2004 council, acting as the Urban Renewal Agency, voted to forward the proposed amendments to the Downtown Urban Renewal District Plan to other taxing districts, the Planning Commission, and the public for comment. L:\CMO\2004 Council Agendas\M040809\S0408093.doc ATTACHMENT B ORDINANCE NO. AN ORDINANCE ADOPTING AN AMENDED URBAN RENEWAL PLAN FOR THE CENTRAL EUGENE PROJECT. (CB #4879) The City Council of the City of Eugene finds that: A. The Urban Renewal Plan lbr the Central Eugene Project (the "Plan") was initially adopted on July 3, 1968 by Resolution No. 257 of the Eugene Urban Renewal Agency, and on December 19, 1968 by Resolution No. 1609 of the Eugene City Council. The City Council subsequently amended the Plan by Ordinance No. 19648 on November 8, 1989, and by Ordinance No. 20120 on June 1. 1998. B. The 1998 Plan amendment was in response to provisions of Measure 50, and the Council's action grandfathered the district, selected a tax option, set a maximum indebtedness amount, and specified that tax increment funds only be used for development of a downtown library, completion of certain existing projects, and payment of District administrative expenses. C. The City Council authorized the issuance of City of Eugene bonds to fund a portion of the cost of constructing a new library on February 28, 2000. At the same time, the Council authorized the City Manager to enter into an intergovernmental agreement with the Urban Renewal Agency of the City of Eugene (the "Agency") for the Agency to pay to the City any amounts needed for the library project, including amounts to cover the debt service on the City bonds issued for the library. D. During 2003 the City Council explored several options for implementation of the Vision for a Greater Downtown, including using urban renewal as a financing tool, and on July 25, 2003 directed the Agency Director to initiate the process to amend the Plan. E. In accordance with the provisions of ORS 457, the Oregon Constitution, and all applicable laws and ordinances, the Planning and Development Department of the City of Eugene has prepared amendments to the Plan including: (1) Expansion of the projects for which tax increment funds can be used: (2) Creation ora public advisory committee; (3) Adding requirement for specific Agency approval for projects greater than $250,000, other than loans; and (4) Adding a limit of $100,000 on the mandate for a public hearing in the event of a plan change. F. The Urban Renewal Agency of the City of Eugene has considered the proposed Plan and Report and has forwarded it to the Council tbr adoption. G. On June 14, 2004, the Planning Commission had its final review of the Plan and Report and recommended its adoption. Ordinance- 1 L:\CMO\CC Coord- CMO\Ordinances\04Downtown Urban Renewal Plan Amendment (00074695)1 .DOC(7/21/04) H. In accordance with ORS 457.085(5), on June 28, 2004, the proposed Plan and accompanying Report on Urban Renewal Plan for the Central Eugene Project ("the Report") was forwarded to the governing body of each taxing district affected by the Plan. I. After public notice, the Council conducted a public hearing on August 9, 2004, on the proposed Plan amendments. Based on the recommendations of the Urban Renewal Agency of the City of Eugene, and the Planning Commission, and the written and oral testimony before the Planning Commission and the Council, the Council specifically finds and determines that: (1) The area defined in the Plan is blighted; (2) The rehabilitation and redevelopment is necessary to protect the public health, safety or welfare of the municipality; (3) The Plan conforms to the Metropolitan Area General Plan, State Land Use Planning Goals, the Downtown Plan, the adopted Growth Management Policies, the Vision for Greater Downtown Eugene, and other adopted City plans and policies, including the Council's 2001-2002 Vision and Goals Statement, and provides an outline for accomplishing the urban renewal projects proposed in the Plan; (4) The Plan provides that the Urban Renewal Agency of the City of Eugene will prepare, adopt and maintain a Relocation Policy providing for the housing of displaced persons within their financial means in accordance with ORS 281.045 to 281.105 and, except in the relocation of elderly or disabled individuals, without displacing on priority lists persons already waiting for existing federally subsidized housing; (5) Acquisition of real property is necessary to carry out the purposes and policies of the Plan; (6) Adoption and carrying out of the Plan is economically sound and feasible; and (7) The City shall assume and complete any activities prescribed by the Plan. THE CITY OF EUGENE DOES ORDAIN AS FOLLOWS: Section 1. Based upon the above findings, which are hereby adopted, the Urban Renewal Plan for the Central Eugene Project attached as Exhibit A is approved and adopted as the urban renewal plan for the area set forth in the Plan. Section 2. The City Recorder {s requested to: (a) Publish a notice of the adoption of the Plan amendment, in the Register- Guard, a newspaper published within the City of Eugene and having the greatest circulation within the City, no later than four days following the date that this Ordinance is adopted. In accordance with ORS 457.135, the notice shall contain a statement that the Plan shall be conclusively presumed valid tbr all purposes 90 days after its adoption by this Ordinance and that no direct or collateral attack on the action adopting the Plan may be commenced thereafter; Ordinance - 2 L:\CMO\CC Coord - CMO\Ordinances\04Downtown Urban Renewal Plan Amendment (00074695)1.DOC(7/21/04) (b) Forward a copy of this Ordinance and the Plan to the Urban Renewal Agency of the City of Eugene, which Agency will cause the Plan to be recorded in the official records of Lane County, Oregon; and (c) Forward a copy of this Ordinance and the Plan to the Lane County Assessor and request that the Assessor perform the duties directed by ORS 457.430 through ORS 457.450. Passed by the City Council this Approved by the Mayor this day of ., 2004. ~ day of ,2004. City Recorder Mayor Ordinance - 3 LSCMOXCC Coord- CMO\Ordinances',.04Downtown I~rban Renewal Plan Amendment (00074695)1 .DOC(7/21/04) ATTACHMENT C Urban Renewal Plan For Central Eugene Project (AKA: Downtown Urban Renewal District) Central Eugene (Downtown) Urban Renewal Boundary 6th Aven ~.e DRAFT August 9, 2004 Adopted July 1968 - Modified - December 1968 December 1989 June 1998 September 2004 Urban Renewal Agency of Eugene, Oregon URBAN RENEWAL PLAN FOR THE CENTRAL EUGENE PROJECT Table of Contents Section 100- Introduction ........................................................................................................................................ - 1 - Section 200 - Definitions ......................................................................................................................................... - 1 - Section 300 -Legal Descriptions ............................................................................................................................. - 2 - Section 400 - Goals and Objectives ......................................................................................................................... - 3 - Goals ..................................................................................................................................................................... - 3 - Objectives ............................................................................................................................................................. - 4 - Land Use ........................................................................................................................................................... - 4 - Access and Circulation ..................................................................................................................................... - 4 - Public Facilities and Improvements .................................................................................................................. - 5 - Rehabilitation .................................................................................................................................................... - 5 - Section 500 - Land Use Plan .................................................................................................................................... - 5 - Section 600 - Project Activities ................................................................................................................................ - 6 - A. PUBLIC IMPROVEMENTS ................................................................................................................. - 6 - B. OFF-SITE FACILITIES ........................................................................................................................ - 8 - C. ACQUISITION AND REDEVELOPMENT ........................................................................................ - 8 - D. RELOCATION ACTIVITIES ............................................................................................................... - 9 - E. DEVELOPMENT AND REDEVELOPMENT .....................................................................................- 9 - F. ADMINISTRATIVE ACTIVITIES .................................................................................................... - 10 - G. PROPERTY DISPOSITION AND DEVELOPER OBLIGATIONS .................................................. - 10 - H. REHABILITATION AND CONSERVATION .................................................................................. - 11 - I. OWNER PARTICIPATION ................................................................................................................ - 12 - Section 700 - Methods for Financing the Projects ................................................................................................. - 12 - Section 800 - Annual Financial Statement Required ............................................................................................. - 12 - Section 900 - Citizen Participation ......................................................................................................................... - 13 - Section 1000 - Non-Discrimination ....................................................................................................................... - 13 - Section 1100 - Recording of this Plan .................................................................................................................... - 14 - Section 1200 - Procedures for Changes or Amendments ....................................................................................... - 14 - A. Type One Amendment- Substantial Change Requiring Special Notice ....................................................... - 14 - B. Type Two Amendment- Substantial Change Not Requiring Special Notice ............................................... - 14 - C. Type Three Amendment - Minor Amendment ............................................................................................. - 15 - D. Amendment to the City's Comprehensive Plan or any of its Implementing Ordinances .............................. - 15 - Section 1300 - Duration and Validity of Approved Plan ....................................................................................... - 15 - Duration of Urban Renewal Plan ........................................................................................................................ - 15 - Validity ............................................................................................................................................................... - 15 - Section 1400- Maximum Indebtedness ................................................................................................................. - 16- CITY-WIDE SPECIAL LEVY ........................................................................................................................... - 16 - Part 2 - Exhibits ...................................................................................................................................................... - 17 - Exhibit A: Development Plan Boundary ........................................................................................................... - 17 - URBAN RENEWAL PLAN FOR THE CENTRAL EUGENE PROJECT Section 100 -Introduction The Central Eugene Project Plan, containing an area of approximately 70 acres within the boundaries of the City of Eugene, consists of Part 1, text, and Part 2, exhibits. This revised plan has been prepared by the Planning and Development Department of the City of Eugene and is formatted in line with Oregon Revised Statutes, ORS Chapter 457, at the request of the City Council. Section 200 - Definitions The following definitions will govern this plan. Acquisition means the act or process of acquiring fee title or interest other than fee title of real property (including the acquisition of development rights or remainder interest). Agency or Renewal ARency means the Eugene Renewal Agency which in accordance with ORS Chapter 457 is the official Urban Renewal Agency of the City of Eugene, Lane County, Oregon. Blighted areas means areas which, by reason of deterioration, faulty planning, inadequate or improper facilities, deleterious land use, or the existence of unsafe structures, or any combination of these factors are detrimental to the safety, health, or welfare of the community. A blighted area is characterized by the existence of one or more of the conditions described in ORS 457.010 (1). City means the City of Eugene, Lane County, Oregon. County means the County of Lane, State of Oregon. Developer means any individual or group which acquires property or which receives financial assistance for the physical improvement of publicly or privately held structures and land within the project area. Downtown Plan The Policies in the Downtown Plan were adopted by the Eugene City Council in 2004 as a refinement of the Eugene Springfield Metropolitan Area General Plan. Exhibit means an attachment, either narrative or graphic, to the plan for the project area. ORS means Oregon Revised Statutes (State law). ORS Chapter 457 regulates the urban renewal process. DRAFT AMENDMENTS - Urban Renewal Plan For - 1 - Central Eugene Plan means the Urban Renewal Plan for the Central Eugene Project. The plan consists of Part 1, text and Part 2 exhibits. Proiect means any undertaking or activity within the central Eugene project, such as a public improvement, street project, or loan program which is authorized by and implements provisions set forth in the Urban Renewal Plan. Plan area means the entire Central Eugene Project plan area. Redeveloper (see Developer) means any individual or group which acquires property or which receives financial assistance for the physical improvement of publicly or privately held structures and land within the project area. Rehabilitation means the act or process of returning a property to a state of utility through repair or alteration which makes possible an efficient, contemporary use while preserving those portions or features of the property which are significant to its historical, architectural, and cultural values. Report on the plan means the textual material and graphic exhibits required by ORS 457.085 (3) which explains existing conditions, activities, procedures, and proposals of the plan. State means the State of Oregon and its various agencies, divisions, and departments. Tax increment financing means a method of financing urban renewal projects as authorized by ORS Chapter 457, which uses the tax revenues generated by the increased taxable values in a defined area to pay for improvements within that area or benefiting that area. Text means Part 1 of this Urban Renewal Plan for the Central Eugene Project. Section 300 - Legal Descriptions Legal Boundary The Central Eugene Project includes that area of approximately 70 acres as originally established in 1968. The following is a legal description of the boundary of the Central Eugene Project plan area: The project area includes all of the land within the boundaries designated on the Project Boundaries Map attached as Exhibit A and is described as containing all lots or parcels of property, situated in the City of Eugene, County of Lane, State of Oregon, bounded generally as follows: DRAFT AMENDMENTS - Urban Renewal Plan For - 2 - Central Eugene Beginning at the southwest corner of the intersection of 11th Avenue and Charnelton Street in the City of Eugene, Lane County, Oregon, commencing northerly along the west right-of-way line of Charnelton Street to the point of intersection of the south right- of-way line of the alley between 10th Avenue and Broadway; (1) thence, westerly along the south right-of-way line of said alley to the west line of Lincoln Street; (2) thence, northerly along the west right-of-way line of Lincoln Street to the point of intersection of the north right-of-way line of the alley between Broadway and 8th Avenue if extended; (3) thence easterly along the north right-of-way line of said alley to the west right-of-way line Charnelton Street; (4) thence northerly along the west right-of-way line of Charnelton Street to the northwest corner of the intersection of 7th Avenue and Charnelton Street; (5) thence easterly along the north right-of-way line of 7th Avenue to the northwest corner of the intersection of 7th Avenue and Olive Street; (6) thence, northerly along the west right-of-way line of Olive Street to the northwest corner of the intersection of 6th Avenue and Olive Street; (7) thence, easterly along the north right-of-way line of 6th Avenue to the northeast corner of the intersection of 6th Avenue and Oak Street; (8) thence, southerly along the east right-of-way line of Oak Street to the northeast corner of Oak Street and South Park Avenue; (9) thence, easterly along the north right-of-way line of South Park Avenue extended to the east right-of-way line of Pearl Street; (10) thence, southerly along the east line of Pearl Street to the southeast corner of the intersection of Pearl Street and 11th Avenue; (11) thence, westerly along the south line of 11th Avenue to the point of beginning. Section 400 - Goals and Objectives Goals The goals of the Central Eugene Project Plan are: 1. To improve the function, condition, and appearance of the development area through: a. redevelopment and rehabilitation of existing and substandard buildings; b. development of new buildings c. improved access and circulation in the downtown area; d. provision of pedestrian amenities and open space. 2. To eliminate blight and blighting influences; and DRAFT AMENDMENTS - Urban Renewal Plan For - 3 - Central Eugene 3. To strengthen the economic conditions of the plan area and to improve the downtown's importance in the region by strengthening its economic base and to enhance its role as a central location for public and private development and investment. Objectives Development in the Central Eugene Project area is intended to implement the adopted policies contained in the Downtown Plan. Specifically, the objectives of this plan are: Land Use · Promote intensity of use through development of publicly and privately owned land. · Strengthen existing retail and seek new retail development for integration into the downtown area. · Support existing and potential office development and other employment- generating uses. · Encourage owner-occupied and rental housing or developments which incorporate housing, in the downtown. Access and Circulation · Improve access and entrances into the downtown from the regional transportation system. · Provide better access within the downtown and linkages between downtown and other major activity centers. · Improve the circulation of traffic within the plan area. · Provide an adequate site and facilities in support of mass transit to meet the present and future needs of downtown employees, employers, retailer, businesses, and other downtown users. · Improve access and circulation for bicycles, pedestrians, carpooling, and other alternative modes of transportation. DRAFT AMENDMENTS - Urban Renewal Plan For - 4 - Central Eugene · Assist with the construction of new parking structures to meet existing and future development needs. · Improve connections between the core of downtown, the riverfront area, and the University of Oregon. Public Facilities and Improvements · Provide outdoor space downtown for major public gatherings. · Provide appropriate landscaping, open spaces, rest areas, and other shopper amenities and conveniences. · Support the continued development of the downtown public library. · Construct or reconstruct public improvements that will stimulate nighttime activity or private investment in the downtown area. · Improve the water, steam, sewer, and storm drainage system in the plan area. · Assist with the construction of public facilities. · Improved accessibility for people of all abilities, anywhere in the district, through the removal of architectural barriers, rehabilitation of existing structures and through the application of design improvements. Rehabilitation · Encourage repair and rehabilitation of existing buildings within the project area through grants and Iow-interest loan programs. Section 500 - Land Use Plan The use and development of all land within the Central Eugene Project Plan area shall comply with the regulations prescribed in the City's comprehensive plan, zoning ordinance, subdivision ordinance, City charter, or any other applicable local, State or Federal laws regulating the use of property within an urban renewal area. DRAFT AMENDMENTS - Urban Renewal Plan For - 5 - Central Eugene Section 600 - Project Activities In order to achieve the objectives of this plan, the following activities may be undertaken on behalf of the City of Eugene by the Renewal Agency, in accordance with applicable Federal, State, County, and City laws, policies, and procedures. A. PUBLIC IMPROVEMENTS 1. Street, Curb, and Sidewalk Improvements Improvements within the renewal area may require the construction of new street, curb, sidewalks or sidewalk improvements, such as widening, within the plan area. The Renewal Agency may participate in funding sidewalk and roadway improvements including design, redesign, construction, resurfacing, repair and acquisition of right-of way for curbs, streets, and sidewalks, and pedestrian and bicycle paths. Projects to be undertaken include, but are not limited to: · Local street, curb, and sidewalk improvements identified in the Eugene Capital Improvements Program (CIP), the Vision For a Greater Downtown Eugene Report, and the Courthouse District Concept Plan. · Other curb, sidewalk and street improvements identified by the Renewal Agency. 2. Public Utilities The development proposed for the renewal area may require the replacement and construction of water, storm and sanitary sewer facilities, environmental mitigations. These improvements may include, but are not limited to: · Sanitary sewer, water, and storm water system upgrades & replacements identified in Eugene Capital Improvements Program 3. Streetscape Projects This activity will enable the Renewal Agency to participate in activities improving the visual appearance of the plan area. These improvements may include, but are not limited to: · Accent paving · Decorative lighting · Street trees, planters, and landscaping · Furnishings, including tables, benches, kiosks, telephone booths, drinking fountains, trash receptacles, bicycle racks · Street and directional signage · Public art and water features · Gateway monuments and landscape features · Undergrounding of overhead utilities DRAFT AMENDMENTS - Urban Renewal Plan For - 6 - Central Eugene 4. Pedestrian, Bike, and Transit Improvements These activities will include pedestrian, bicycle and transit connections between the renewal plan area, the river, public parks, and other areas of Eugene. Activities may include bicycle parking and storage, transit stops, covered shelters, transit pullouts, and other related activities which will promote pedestrian, bicycle, and public transportation uses in the renewal area. These improvements include, but are not limited to: · Provide new bike paths or lanes · Provide pedestrian connections to the downtown, riverfront, and Courthouse area. · Provide a more prominent entrance to the downtown at East Broadway · Provide weather sheltering devices for the protection of pedestrians · Street lights and traffic control devices 5. Public parks, public plazas, rest rooms, and open spaces The Renewal Agency may participate in funding the design, acquisition, construction or rehabilitation of public spaces, or parks or public facilities within the urban renewal area. Projects to be undertaken include, but are not limited to: · Walkways and plazas · Accessibility improvements 6. Public Parking and Public Transportation Facilities The Agency is authorized to participate in funding the acquisition and construction and enhancement of public parking and public transportation facilities within the renewal area. The precise location and type of facilities will be decided after further study. 7. Other Public Facilities The Agency is authorized to participate in development of public facilities including City Hall, police and fire facilities, libraries, recreation centers, conference facilities, and community centers. These facilities will benefit the renewal area by increasing public usage of the area, by enhancing protective services, and by stimulating additional public and private investment in the renewal area. The extent of the Agency's participation in funding such facilities will be based upon an Agency finding on the benefit of that project to the renewal area, and the importance of the project in carrying out Plan objectives. The type and location of these public facilities will be determined by future study. Potential public facilities to be assisted include, but are not limited to: · New Police Building or City Hall · Library improvements DRAFT AMENDMENTS - Urban Renewal Plan For - 7 - Central Eugene B. OFF-SITE FACILITIES To encourage the development or redevelopment of private property within the plan area, the Agency may construct, install, pay for, or otherwise cause certain off-site public facilities to be installed or provided when, in the public interest, such action would benefit and further the objectives of the plan. Potential off-site facilities to be assisted include, but are not limited to: · New parking, improvements to existing transportation and other facilities, and mass transit stations. C. ACQUISITION AND REDEVELOPMENT 1. Intent. It is the intent of this plan to authorize the Renewal Agency to acquire property within the plan area by any legal means to achieve the objectives of this plan, and specifically, for any of the purposes listed below. 2. Method. Property acquisition, including limited interest acquisition, is hereby made a part of this plan and may be used to achieve the objectives of this plan in the presence of any of the following conditions: a. Where existing conditions do not permit practical or feasible rehabilitation of a structure and it is determined that acquisition of such properties and demolition of the improvements thereon are necessary to remove substandard and blighting conditions; b. Where detrimental land uses or conditions such as incompatible uses, or adverse influences from noise, smoke or fumes exist, or where there exists overcrowding, or conversions to incompatible types of uses, and it is determined that acquisition of such properties and demolition of the improvements are necessary to remove blighting influences and to achieve the objectives of this plan; c. Where it is determined that the property is needed to provide public improvements and facilities as follows: · Right-of-way acquisition for streets, alleys, or pedestrian ways; · Property acquisition for public use; and · Property acquisition for public, off-street parking facilities. d. Where it is determined that the assembling of land for private development is necessary to attract new commercial and residential activity or to allow for expansion or efficient operation of current commercial or industrial activities. DRAFT AMENDMENTS - Urban Renewal Plan For - 8 - Central Eugene 3. Land Acquisition Requiring Plan Amendments. Land acquisition for any purpose other than specifically listed in 600-C-2 above, shall be accomplished only by following procedures for amending this plan as set forth in Section 1200 of this plan. If such plan amendment is approved by the Eugene Renewal Agency a map exhibit shall be prepared showing the properties to be acquired, shall be appropriately numbered, and shall be included in Part Two as an official part of this plan. Assembling land for private development where the developer of such land is a person or group other than the owner of record of such land to be acquired, shall not be considered as a substantial amendment to this plan. Each such development and the property acquisition required shall be processed on a case-by-case basis and no such acquisition shall be undertaken until authorized by the Renewal Agency: D. RELOCATION ACTIVITIES If the Agency acquires property which is occupied and would cause the displacement of the occupants in the implementation of the plan, the Agency will provide assistance to persons or businesses to be displaced. Those displaced will be contacted to determine their individual relocation needs. They will be provided information on available space and will be given assistance in moving. All relocation activities will be undertaken and payments made in accordance with the requirements of ORS 281.045 - 281.105 and any other applicable laws or regulations. Relocation payments will be made as provided in ORS 281.060. Payments made to persons displaced from dwellings will assure that they will have available to them decent, safe, and sanitary dwellings at costs or rents within their financial means. The Agency will prepare, adopt, and maintain a Relocation Policy prior to acquiring any property which will cause displacement. E. DEVELOPMENT AND REDEVELOPMENT The Renewal Agency also is authorized to provide loans or other forms of financial assistance to property owners wishing to develop or redevelop land or buildings within the renewal area, or to persons desiring to acquire or lease buildings or land from the Agency. The Agency may assist in the creation of, and participate in, public/private partnerships that result in development or redevelopment. The Agency may make this assistance available as it deems necessary to achieve the objectives of this Plan. Projects receiving Agency assistance may include, but are not limited to: · Assisting the construction or expansion of job-creating developments · Assisting in the development of housing and mixed use projects DRAFT AMENDMENTS - Urban Renewal Plan For - 9 - Central Eugene F. ADMINISTRATIVE ACTIVITIES 1. The Agency may retain the services of independent professional people or organizations to provide administrative or technical services such as: a. Preparation of market, feasibility, or other economic studies; b. Preparation of design, architectural, engineering, landscaping architectural, planning, development, or other developmental studies; c. Providing accounting or audit services; d. Providing special rehabilitation, restoration, or renovation feasibility and cost analysis studies; e. Assisting in preparation of the annual financial report required under Section 800 of this plan; f. Providing property acquisition appraisals; and g. Evaluation of this plan and the success of its activities. 2. The Agency may acquire, rent, or lease office space and office furniture, equipment, and facilities necessary for it to conduct its affairs in the management and implementation of this plan. 3. The Agency may invest its reserve funds in interest-bearing accounts or securities. 4. To implement this plan, the Agency may borrow money, accept advances, loans, or grants from any legal source, issue urban renewal bonds and receive tax increment proceeds as provided for in Section 700 of this plan. G. PROPERTY DISPOSITION AND DEVELOPER OBLIGATIONS All real property acquired by the Agency in the plan area, if any, shall be disposed of for development for uses permitted in the plan for the specific uses to be permitted on the real property. Real property acquired by the Renewal Agency may be disposed of to any other public entity in accordance with this plan. All persons and entities obtaining property from the Agency shall use the property for the purposes designated in this plan and comply with other conditions which the Agency deems necessary to carry out the purposes of this plan. DRAFT AMENDMENTS - Urban Renewal Plan For - 10 - Central Eugene 1. Developer's Obligations. Any developer and the developer's successors or assigns within the plan area, in addition to the other controls and obligations stipulated and required by the provisions of this plan, shall also be obligated by the following requirements: a. The Developer shall obtain necessary approvals of proposed developments from all Federal, State, or local agencies that may have jurisdiction on properties and facilities to be developed or redeveloped within the plan area; b. The Developer shall develop or redevelop such property in accordance with the adopted land use provisions; c. The Developer shall submit all plans and specifications for construction of improvements on the land to the Agency for review and distribution to appropriate reviewing bodies as required by the City and shall comply with all applicable requirements of existing City codes and ordinances; d. The Developer shall commence and complete the development of such property for the uses provided in this plan within a reasonable period of time; and e. The Developer shall not effect or execute any agreement, lease, conveyance, or other instrument whereby the real property or part thereof is restricted in a manner that does not comply with Section 4.613 of the Eugene Code, 1971. H. REHABILITATION AND CONSERVATION 1. Intent. It is the intent of this Plan to encourage conservation and rehabilitation of existing buildings which can be economically rehabilitated. Existing buildings in the plan area are considered an important asset in maintaining and improving the economic and cultural environment of the plan area. 2. Method. Rehabilitation and conservation may be achieved in two ways: a. By owner and/or tenant activity, with or without financial assistance; b. By the enforcement of existing City codes and ordinances. 3. Financial Building Rehabilitation Assistance. The Agency, with funds available to it, may promulgate rules, guidelines and eligibility requirements for the purpose of establishing below-market or market rate loan programs, grants, or other financial incentives to advance the goals and objectives of the Central Eugene Urban Renewal District Plan. Loans, grants or incentives provided by the Agency may be used for voluntary rehabilitation of buildings, fagade improvements, provision of amenities on private property in compliance with adopted design guidelines and standards, DRAFT AMENDMENTS - Urban Renewal Plan For - 11 - Central Eugene construction of new buildings, pre-development assistance, connecting to Agency- provided underground electrical and communication systems, or other activities approved by the Agency. I. OWNER PARTICIPATION It is the intent of the Renewal Agency to provide Iow-interest loans to assist development and redevelopment of private property in the district. Property owners within the plan area proposing to improve their properties and receiving financial assistance from the Agency shall do so in accordance with all applicable provisions of this plan and with all applicable codes, ordinances, policies, plans, and procedures of the City of Eugene. Section 700 - Methods for Financing the Projects The Agency may borrow money and accept advances, loans, grants, and other legal forms of financial assistance from the Federal government, the State, City, County, or other public body, or from any source, public or private, for the purposes of undertaking and carrying out this development plan, or may otherwise obtain financing as authorized by ORS Chapter 457. Ad valorem taxes, if any, levied by a taxing body upon the taxable real and personal property situated in the urban renewal area, shall be divided in accord with and pursuant to ORS 457.420 through 457.450. The Agency shall adopt and use a fiscal year ending June 30 accounting period. Each year the agency shall develop a budget in conformance with the provisions of ORS Chapter 294 and ORS 457.460 which shall describe sources of revenue, proposed expenditures, and activities. The Urban Renewal Agency Board of Directors must approve all projects, other than loans, in excess of $250,000. Section 800- Annual Financial Statement Required A. By August 1 o f each year, a financial statement shall be prepared and provide information containing: 1. Amounts of money received during the preceding fiscal year under ORS 457.420 to 457.460 and from indebtedness incurred under ORS 457.420 to ORS 457.460; DRAFTAMENDMENTS - Urban Renewal Plan For - 12 - Central Eugene 2. The purposes and amounts for which any money received under ORS 457.420 to 457.460 and from indebtedness incurred under ORS 457.420 to 457.460 were expended during the preceding fiscal year; 3. An estimate of monies to be received during the current fiscal year under ORS 457.420 to 457.460 and from indebtedness incurred under ORS 457.420 to 457,460; 4. A budget setting forth the purposes and estimated amounts for which the monies which have been or will be received under ORS 457.420 to 457.460 and from indebtedness incurred under ORS 457.420 to 457.460 are to be expended during the current fiscal year; and 5. An analysis of the impact, if any, of carrying out the urban renewal plan on the tax collections for the preceding year for all taxing districts included under ORS 457.430. B. Th e statement shall be filed with the City Council and notice shall be published in a newspaper of general circulation within the City that a statement has been prepared and is on file with the City and Agency and the information contained in the statement is available to all interested persons. The notice shall be published once a week for not less than two -successive weeks before September 1 of the year for which a statement is required in accordance with ORS 457.115. The notice shall summarize the information required under paragraphs I to 4 of this section and shall set forth in full the information required in paragraph five of this section. Section 900- Citizen Participation The activities and projects defined in this plan, development of subsequent plans, procedures, activities, and regulations and the adoption of amendments to this plan shall be undertaken with the participation of citizens, owners, tenants as individuals, and organizations who reside within or who have financial interest within the project area together with the participation of general citizens of the city. An advisory committee authorized by the Urban Renewal Agency Board of Directors will advise on the activities of this urban renewal district and will periodically evaluate the plan and its implementation processes. Section 1000 - Non-Discrimination In the preparation, adoption, and implementation of this plan no public official or private party shall take any action to cause any person, group or organization to be discriminated against in a manner that violates Section 4.613 of the Eugene Code, 1971. DRAFT AMENDMENTS - Urban Renewal Plan For - 13 - Central Eugene Section 1100 - Recording of this Plan A copy of the City Council's ordinance approving this plan shall be recorded with the recording officer of Lane County. Section 1200 - Procedures for Changes or Amendments The plan will be reviewed and analyzed periodically and will continue to evolve during the course of project execution and ongoing planning. It is anticipated that this plan will be changed or modified from time to time or amended as development potential and conditions warrant, as planning studies are completed, as financing becomes available, or as local needs dictate. Types of Plan Amendments are: A. Type One Amendment- Substantial Change Requiring Special Notice Type One amendments shall require approval per ORS 457.095, and notice as provided in ORS 457.120. Type One plan changes will consist of: 1. Increases in the urban renewal area boundary in excess of one percent (1%) of the existing area of the renewal plan. 2. Increases in the maximum indebtedness that can be issued or incurred under this plan. B. Type Two Amendment- Substantial Change Not Requiring Special Notice Type two amendments shall require approval per ORS 457.095, but will not require notice as provided in ORS 457.120. Type two amendments will consist of: 1. The addition of improvements or activities which represent a substantial change in the purpose and objectives of this Plan, and which cost more than $500,000. The $500,000 amount will be adjusted annually from the year 2003 according to the "Engineering News Record" construction cost index for the Northwest area. 2. Any change or provision of this Plan which would modify the goals and objectives or the basic planning principles of this plan. Substantial changes shall include, but are not limited to, revisions in project boundaries, land uses, project activities, street system changes, major relocation of the downtown transit station, or other elements which will change the basic planning principles of this plan. DRAFT AMENDMENTS - Urban Renewal Plan For - 14 - Central Eugene C. Type Three Amendment- Minor Amendment Minor amendments may be approved by the Renewal Agency in resolution form. Such amendments are defined as: 1. Amendments to clarify language, add graphic exhibits, make minor modifications in the scope or location of improvements authorized by this Plan, or other such modifications which do not change the basic planning or engineering principles of the Plan. 2. Acquisition of property for purposes specified in Section 600C3 of this plan. 3. Addition of a project substantially different from those identified in Sections 600 of the Plan or substantial modification of a project identified in Section 600 if the addition or modification of the project costs less than $500,000 in 2003 dollars. 4. Increases in the urban renewal area boundary not in excess of one percent (1%). D. Amendment to the City's Comprehensive Plan or any of its Implementing Ordinances Should the City Council amend the City's comprehensive plan or any of its implementing ordinances and should such amendment cause a substantial change to this plan, the City Council amending action shall cause this plan to be amended provided that the Planning Commission and City Council approve the amendment. In the event of such amendment, the text and/or exhibits of this plan, if applicable to this plan, shall be changed accordingly by duly recorded ordinance. Section 1300 - Duration and Validity of Approved Plan Duration of Urban Renewal Plan This plan shall remain in full force and effect through June 30, 2029. The City Council shall conduct periodic reviews in 2009 and 2019. Reviews will consider extending the duration beyond 2029; modifying the boundaries; modifying the maximum indebted- ness; and modifying eligible project activities to be undertaken in the Downtown Urban Renewal District. The review process shall include a review and recommendation from the Eugene Redevelopment Advisory Committee. Such review will include a public hearing. Validity Should a court of competent jurisdiction find any word, clause, sentence, section, or part of this plan to be invalid, the remaining words, clauses, sentences, section, or parts shall be unaffected by any such finding and shall remain in full force and effect for the duration of the plan. DRAFT AMENDMENTS - Urban Renewal Plan For - 15 - Central Eugene Section 1400- Maximum Indebtedness The sum of $33,000,000 was established in 1998 as the maximum amount of new indebtedness which could be issued or incurred under this Plan. This amount does not include funds to pay interest on that indebtedness nor funds to repay indebtedness existing on the date of the 1998 amendment. CITY-WIDE SPECIAL LEVY. Option One and its city-wide special levy, as described in ORS 457.435(2)(a), were chosen in 1998 as the method for collecting ad valorem property taxes sufficient to pay when due, indebtedness issued or incurred to carry out the Urban Renewal Plan for the Central Eugene Project as permitted by section 11 (16), Article XI of the Oregon Constitution. DRAFTAMENDMENTS - Urban Renewal Plan For - 16 - Central Eugene Part 2 - Exhibits Exhibit A: Development Plan Boundary Central Eugene (Downtown) Urban Renewal Boundary 6th Avenue 6th Avenue 7th Avenue i  ~ Avenue 8th Avenue 8th Avenue loth Avenue DRAFT AMENDMENTS - Urban Renewal Plan For - 17 - Central Eugene Urban Renewal Plan For~ Central Eugene Project (AKA: Downtown Urban Renewal District) Central Eugene (Downtown) Urban Renewal Boundary DRAFT August 9, 2004 Adopted ~.~..~u,', ~u- July 1968 - Modified - December 1968 December 1989 June 1998 September 2004 Urban Renewal Agency of Eugene, Oregon URBAN RENEWAL PLAN FOR THE CENTRAL EUGENE PROJECT Table of Contents Section 100 - Introduction ........................................................................................................................................ - 0 - Section 200 - Definitions ......................................................................................................................................... - 0 - Section 300 - Legal Descriptions ............................................................................................................................. - I - Section 400 - Goals and Objectives ......................................................................................................................... - 2 - Goals ..................................................................................................................................................................... - 2 - Objectives ............................................................................................................................................................. - 3 - Land Use ........................................................................................................................................................... - 3 - Access and Circulation ..................................................................................................................................... - 3 - Public Facilities and Improvements .................................................................................................................. - 4 - Rehabilitation .................................................................................................................................................... - 4 - Section 500 - Land Use Plan .................................................................................................................................... - 5 - Section 600 - Project Activities ................................................................................................................................ - 5 - A. PUBLIC IMPROVEMENTS ................................................................................................................. - 5 - B. OFF-SITE FACILITIES ........................................................................................................................ - 7 - C. ACQUISITION AND REDEVELOPMENT ........................................................................................ - 8 - D. RELOCATION ACTIVITIES ............................................................................................................... - 9 - E. DEVELOPMENT AND REDEVELOPMENT .....................................................................................- 9 - F. ADMINISTRATIVE ACTIVITIES ...................................................................................................... - 9 - G. PROPERTY DISPOSITION AND DEVELOPER OBLIGATIONS .................................................. - 12 - H. REHABILITATION AND CONSERVATION .................................................................................. - 13 - I. OWNER PARTICIPATION ................................................................................................................ - 14 - Section 700 - Methods for Financing the Projects ................................................................................................. - 14 - Section 800- Annual Financial Statement Required ............................................................................................. - 15 - Section 900 - Citizen Participation ......................................................................................................................... - 18 - Section 1000 - Non-Discrimination ....................................................................................................................... - 18 - Section 1100 - Recording of this Plan .................................................................................................................... - 19 - Section 1200 - Procedures for Changes or Amendments ....................................................................................... - 19 - Substantial Change Requiring Special Notice .................................................................................................... - 19 - B. Type Two Amendment- Substantial Change Not Requiring Special Notice ............................................... - 19 - C. Type Three Amendment - Minor Amendment ............................................................................................. - 20 - D. Amendment to the City's Comprehensive Plan or any of its Implementing Ordinances .............................. - 20 - Section 1300 - Duration and Validity of Approved Plan ....................................................................................... - 21 - Duration of Urban Renewal Plan ........................................................................................................................ - 21 - Validity ............................................................................................................................................................... - 21 - Section 1400 - Maximum Indebtedness ................................................................................................................. - 21 - CITY-WIDE SPECIAL LEVY ........................................................................................................................... - 21 - Part 2 - Exhibits ...................................................................................................................................................... - 22 - Exhibit A: Development Plan Boundary ........................................................................................................... - 22 - URBAN RENEWAL PLAN FOR THE CENTRAL EUGENE PROJECT TAB£E OF CONTENTS ~ Introduction -1- ~ Cltl .... D~inin~Hnn Evhih;~-o PLAN FOR THE CENTRAL :~ '~:~: PROJECT Section 100 - Introduction The Central Eugene Project Plan, containing an area of approximately 70 acres within the boundaries of the City of Eugene, consists of Part 1, text, and Part 2, exhibits. This revised plan has been prepared by the Planning and Development Department of the City of Eugene and is formatted in line with Oregon Revised Statutes, ORS Chapter 457, at the request of the City Council. Section 200 - Definitions The following definitions will govern this plan. Acquisition means the act or process of acquiring fee title or interest other than fee title of real property (including the acquisition of development rights or remainder interest). A_~encv or Renewal A.~encv means the Eugene Renewal Agency which in accordance with ORS Chapter 457 is the official Urban Renewal Agency of the City of Eugene, Lane County, Oregon. Blighted areas means areas which, by reason of deterioration, faulty planning, inadequate or improper facilities, deleterious land use, or the existence of unsafe structures any combination of these factors "-" ~'~*';'"'""*~ *" *~' ...... ~" °* .... * ..... or any.....,""'-"~'I"°*;"", ,,.,, ,,~.,..,, '''~,,, these ~"*"'"o,,..,,,,., .., are detrimental to the safety, health, or welfare of the community. A blighted area is characterized by the existence of one or more of the conditions described in ORS 457.010 (1). City means the City of Eugene, Lane County, Oregon. County means the County of Lane, State of Oregon. Developer means any individual or group which acquires property or which receives financial assistance for the physical improvement of publicly or privately held structures and land within the project area. Downtown Plan The Policies in m,~ ~,,,,,,~,~ ~,,, ~ ...... r;,,, r^ .... . ;~, ,~nn~ ,~,,, Downtown Plan is-were adopted by the Eugene City Council in 2004 as a refinement of the Eugene Springfield Metropolitan Area General Plan. Exhibit means an attachment, either narrative or graphic, to the plan for the project area. DRAFT,4MENDMENTS- Urban Rene~val Plan For upd-r"e ....,~r ..... -,~ .,...~nn", Central Eugene ORS means Oregon Revised Statutes (State law). ORS Chapter 457 regulates the urban renewal process. Plan means the Urban Renewal Plan for the Central Eugene Project. The plan consists of Part 1, text and Part 2 exhibits. Proiect means any undertaking or activity within the central Eugene project, such as a public improvement, street project, or loan program which is authorized by and implements provisions set forth in the Urban Renewal Plan. Plan area means the entire Central Eugene Project plan area. Redeveloper (see Developer) means any individual or group which acquires property or which receives financial assistance for the physical improvement of publicly or privately held structures and land within the project area. Rehabilitation means the act or process of returning a property to a state of utility through repair or alteration which makes possible an efficient, contemporary use while preserving those portions or features of the property which are significant to its historical, architectural, and cultural values. Report on the plan which means the textual material and graphic exhibits required by ORS 457.085 (3) which explains existing conditions, activities, procedures, and proposals of the plan. State means the State of Oregon and its various agencies, divisions, and departments. Tax increment financinq means a method of financing urban renewal projects as authorized by ORS Chapter 457, which uses the tax revenues generated by the increased taxable values in a defined area to pay for improvements within that area or benefiting that area. Text means Part 1 of this Urban Renewal Plan for the Central Eugene Project. Section 300 - Legal Descriptions Legal Boundary The Central Eugene Project includes that area of approximately 70 acres as originally established in 1968 ,":A~li'l'i,-~r~,"~l hli~lh~'~A ....... 'l',ainin,-~ ~"~'~*'~1 i"l- ! ~'~ O ..... Th,~ DRAFT A/VlENDMENTS- Urban Renewal Plan For :~FdAtc .h~nc 3, 200./ Central Eugene The following is a legal description of the boundary of the Central Eugene Project plan area: The project area includes all of the land within the boundaries designated on the Project Boundaries Map attached as Exhibit A and is described as containing all lots or parcels of property, situated in the City of Eugene, County of Lane, State of Oregon, bounded generally as follows: --Beginning at the southwest corner of the intersection of 11th Avenue and Charnelton Street in the City of Eugene, Lane County, Oregon, commencing northerly along the west right-of-way line of Charnelton Street to the point of intersection of the south right-of-way line of the alley between 10th Avenue and Broadway; (1) thence, westerly along the south right-of-way line of said alley to the west line of Lincoln Street; (2) thence, northerly along the west right-of-way line of Lincoln Street to the point of intersection of the north right-of-way line of the alley between Broadway and 8th Avenue if extended; (3) thence, easterly along the north right-of-way line of said alley to the west right-of-way line Charnelton Street; (4) thence, northerly along the west right-of-way line of Charnelton Street to the northwest corner of the intersection of 7th Avenue and Charnelton Street; (5) thence, easterly along the north right-of-way line of 7th Avenue to the northwest corner of the intersection of 7th Avenue and Olive Street; (6) thence, northerly along the west right-of-way line of Olive Street to the northwest corner of the intersection of 6th Avenue and Olive Street; (7) thence, easterly along the north right-of-way line of 6th Avenue to the northeast corner of the intersection of 6th Avenue and Oak Street; (8) thence, southerly along the east right-of-way line of Oak Street to the northeast corner of Oak Street and South Park Avenue; (9) thence, easterly along the north right-of-way line of South Park Avenue extended to the east right-of-way line of Pearl Street; (10) thence, southerly along the east line of Pearl Street to the southeast corner of the intersection of Pearl Street and 11th Avenue; (11) thence, westerly along the south line of 11th Avenue to the point of beginning. Section 400 - Goals and Objectives ~.Goals The goals of the Central Eugene Project Plan are: DR,4FT AMENDMENTS - Urban Renewal Plan For :;Fd~e J~.cne 3, 200'! Central Eugene 1. To improve the function, condition, and appearance of the development area through: a. redevelopment and rehabilitation of existing and substandard buildings; b. development of new buildings c. improved access and circulation in the downtown area; d. provision of pedestrian amenities and open space. 2. To eliminate blight and blighting influences; and 3. To strengthen the economic conditions of the plan area and to improve the downtown's importance in the region by strengthening its economic base and to enhance its role as a central location for public and private development and investment. Objectives Development in the Central Eugene Project area is intended to implement the adopted policies contained in the adepted-Downtown Plan. Specifically, the objectives of this plan are: --.Land Use · Promote intensity of use through development of publicly and privately owned land. · Strengthen existing retail and seek new retail development for integration into the downtown area. · Support existing and potential office development and other employment- generating uses. · Encourage owner-occupied and rental housing or developments which incorporatei,~ser~a~ housing, in the downtown. Access and Circulation · Improve access and entrances into the downtown from the regional transportation system. DRA FT,4 MENDMENTS - Urban Rene~val Plan For :¢Fd&e ,h¢n'e 3, 290,! Central Eugene · Provide better access within the downtown and linkages between downtown and other major activity centers. · Improve the circulation of traffic within the plan area. · Provide an adequate site and facilities in support of mass transit to meet the present and future needs of downtown employees, employers, retailer, businesses, and other downtown users. · Improve r-,.,,,,; .... + ...... ;~,, ............ ~, ...... access and circulation for bicycles, pedestrians, carpooling, and other alternative modes of transportation. · Assist with the construction of new parking structures to meet existing and future development needs. · Improve connections between the core of downtown, the riverfront area, and the University of Oregon. Public Facilities and Improvements · Provide outdoor space downtown for major public gatherings. · Provide appropriate landscaping, open spaces, rest areas, and other shopper amenities and conveniences. · Support the continued development of thea-new downtown public library. · Construct or reconstruct public improvements that will stimulate nighttime activity or private investment in the downtown area. · Improve the water, steam, sewer, and storm drainage system in the plan area. · Assist with the construction of public facilities. · Improved accessibility for people of all abilities, anywhere in the district, through the removal of architectural barriers, rehabilitation of existing structures and through the application of design improvements. Rehabilitation · Encourage repair and rehabilitation of existing buildings within the project area through grants and Iow-interest loan programs. DRAFT AMENDMENTS- Urban Renewal Plan For :;Fd~e ,.h~nc 3, 200.4 Central Eugene Section 500 - Land Use Plan The use and development of all land within the Central Eugene Project Plan area shall comply with the regulations prescribed in the City's comprehensive plan, zoning ordinance, subdivision ordinance, City charter, or any other applicable local, State or Federal laws regulating the use of property within an urban renewal area. ~ Section 600 - Project Activities In order to achieve the objectives of this plan, the following activities may be undertaken on behalf of the City of Eugene by the Renewal Agency, in accordance with applicable Federal, State, County, and City laws, policies, and procedures. A. PUBLIC IMPROVEMENTS 1. Street, Curb, and Sidewalk P-ubtis-lmprovements Improvements within the renewal area may require the construction of new street, curb, sidewalks or sidewalk improvements, such as widening, within the plan area. The Renewal Agency may participate in funding sidewalk and roadway improvements including design, redesign, construction, resurfacing, repair and acquisition of right-of way for curbs, streets, and sidewalks, and pedestrian and bicycle paths. Projects to be undertaken include, but are not limited to: · Local street, curb, and sidewalk improvements identified in the Eugene Capital Improvements Program (CIP), the Vision For a Greater Downtown Eugene Report, -and the Courthouse District Concept Plan. · Other curb, sidewalk and street improvements identified by the Renewal Agency. 2. Public Utilities The development proposed for the renewal area may require the replacement and construction of water, storm and sanitary sewer facilities, environmental mitigations. These improvements may include, but are not limited to: · Sanitary sewer, water, and storm water system upgrades & replacements identified in Eugene Capital Improvements Program DR.4FT AMENDMENTS- Urban Re~ewal Pla)~ For :~Fd&e ,P~ne 3, 200.1 Central Eugene 3. Streetscape Projects This activity will enable the Renewal Agency to participate in activities improving the visual appearance of the plan area. These improvements may include, but are not limited to: · Accent paving · Decorative lighting · Street trees, planters, and landscaping · Furnishings, including tables, benches, kiosks, telephone booths, drinking fountains, trash receptacles, bicycle racks · Street and directional signage · Public art and water features · Gateway monuments and landscape features · Undergrounding of overhead utilities 4. Pedestrian, Bike, and Transit Improvements These activities will include pedestrian, bicycle and transit connections between the renewal plan area, the river, public parks, and other areas of Eugene. Activities may include bicycle parking and storage, transit stops, covered shelters, transit pullouts, and other related activities which will promote pedestrian, bicycle, and public transportation uses in the renewal area. These improvements include, but are not limited to: · Provide new bike paths or lanes · Provide pedestrian connections to the downtown, riverfront, and Courthouse area. · Provide a more prominent entrance to the downtown at East Broadway · Provide weather sheltering devices for the protection of pedestrians · Street lights and traffic control devices 5. Public parks,,~,,,,,,,*a~* ...... -,~-,,.-.,,,-.,*'~'"'c ..,,...~'~'" ~,,~,,,-,,""+~'° public plazas, rest rooms, librarieS, and open spaces The Renewal Agency may participate in funding the design, acquisition, construction or rehabilitation of public spaces, or parks or public facilities within the urban renewal area. Projects to be undertaken include, but are not ner~r,r~ily limited to: · Walkways and plazas · Accessibility improvements 6. Public Parking and Public Transportation Facilities The Agency is authorized to participate in funding the acquisition and construction and enhancement of public parking and public transportation facilities within the renewal area. The precise location and type of facilities will be decided after further study. DR,4FT AMENDMENTS - Urban Renewal Plan For :;pd~e d'~nc 3, 290.4 Central Eugene 7. Other Public Facilities The Agency is authorized to participate in development of public facilities including City Hall, police and fire facilities, libraries, recreation centers, conference facilities, and community centers. These facilities will benefit the renewal area by increasing public usage of the area, by enhancing protective services, and by stimulating additional public and private investment in the renewal area. The extent of the Agency's participation in funding such facilities will be based upon an Agency finding on the benefit of that project to the renewal area, and the importance of the project in carrying out Plan objectives. The type and location of these public facilities will be determined by future study. Potential public facilities to be assisted include, but are not limited to: nrnn~rt,, qnm~ n::hli, imnrnw~m~nfe m~ h~ n~i~ fnr ::~i~h nnn nl~hlin f: inde · ~ew ~olice ~uildin~ or City Hall · kibra~ improvements B. OFF-SITE FACILITIES To encourage the development or redevelopment of private property within the plan area, the Agency may construct, install, pay for, or otherwise cause certain off-site public facilities to be installed or provided when, in the public interest, such action would benefit and further the objectives of the plan. Potential off-site facilities to be assisted include, but are not limited to: · New parking, improvements to existing transportation and other facilities, and mass transit stations. DRAFT AMENDMENTS - Urban Ren6m'al" Plan For :t~vd~,te...,.~f' .... ~,t .,.,.~nn't Central Eugene C. ACQUISITION AND REDEVELOPMENT 1. Intent. It is the intent of this plan to authorize the Renewal Agency to acquire property within the plan area by any legal means to achieve the objectives of this plan, and specifically, for any of the purposes listed below. 2. Method. Property acquisition, including limited interest acquisition, is hereby made a part of this plan and may be used to achieve the objectives of this plan in the presence of any of the following conditions: a. Where existing conditions do not permit practical or feasible rehabilitation of a structure and it is determined that acquisition of such properties and demolition of the improvements thereon are necessary to remove substandard and blighting conditions; b. Where detrimental land uses or conditions such as incompatible uses, or adverse influences from noise, smoke or fumes exist, or where there exists overcrowding, or conversions to incompatible types of uses, and it is determined that acquisition of such properties and demolition of the improvements are necessary to remove blighting influences and to achieve the objectives of this plan; c. Where it is determined that the property is needed to provide public improvements and facilities as follows: · 1. Right-of-way acquisition for streets, alleys, or pedestrian ways; · 2. Property acquisition for public use; and · 3. Property acquisition for public, off-street parking facilities. d. Where it is determined that the assembling of land for private development is necessary to attract new commercial and residential activity or to allow for expansion or efficient operation of current commercial or industrial activities. 3. Land Acquisition Requiring Plan Amendments. Land acquisition for any purpose other than specifically listed in 600-C-2 above, shall be accomplished only by following procedures for amending this plan as set forth in Section 1200 of this plan. If such plan amendment is approved by the Eugene Renewal Agency a map exhibit shall be prepared showing the properties to be acquired, shall be appropriately numbered, and shall be included in Part Two as an official part of this plan. Assembling land for private development where the developer of such land is a person or group other than the owner of record of such land to be acquired, shall not be DRAFT AJVlENDMENTS - Urban Renewal Plan For :tFd~e J',~ne 2, 200'I Central Eugene considered as a substantial amendment to this plan. Each such development and the property acquisition required shall be processed on a case-by-case basis and no such acquisition shall be undertaken until authorized by the Renewal Agency: D. RELOCATION ACTIVITIES If the Agency acquires property which is occupied and would cause the displacement of the occupants in the implementation of the plan, the Agency will provide assistance to persons or businesses to be displaced. Those displaced will be contacted to determine their individual relocation needs. They will be provided information on available space and will be given assistance in moving. All relocation activities will be undertaken and payments made in accordance with the requirements of ORS 281.045 - 281.105 and any other applicable laws or regulations. Relocation payments will be made as provided in ORS 281.060. Payments made to persons displaced from dwellings will assure that they will have available to them decent, safe, and sanitary dwellings at costs or rents within their financial means. The Agency will prepare, adopt, and maintain a Relocation Policy prior to acquiring any property which will cause displacement. E. DEVELOPMENT AND REDEVELOPMENT The Renewal Agency also is authorized to provide loans or other forms of financial assistance to property owners wishing to develop or redevelop land or buildings within the renewal area, or to persons desiring to acquire or lease buildings or land from the Agency. The Agency may assist in the creation of, and participate in, public/private partnerships that result in development or redevelopment. The Agency may make this assistance available as it deems necessary to achieve the objectives of this Plan. Projects receiving Agency assistance may include, but are not limited to: · Assisting the construction or expansion of job-creating developments · Assisting in the development of housing and mixed use projects F. ADMINISTRATIVE ACTIVITIES IDR,4FT,4MENDMENTS Urban Renewal Plan For upd~e t' ..... ~ ,,qn,t Central Eugene 1. The Agency may retain the services of independent professional people or organizations to provide administrative or technical services such as: a. Preparation of market, feasibility, or other economic studies; .~ ~aw~m ~ INDEBTEDNESS Th ...... ~ ~qq nnn nnn ;~ b. Preparation of design, architectural, engineering, landscaping architectural, planning, development, or other developmental studies; C c. Providing accounting or audit services; d. Providing special rehabilitation, restoration, or renovation feasibility and cost analysis studies; e. Assisting in preparation of the annual financial repod required under Soction 800 of this plan; ~ DR,4FT,4MENDMENTS- Urban Renewal Plan For :g~..a~...,,~""~ -,~ .~,.~nn'(, Central Eugene lt/l~d'hnri Drnn~rf~t ,'~r,n, iici+inn innll f. Providing propeAy acquisition appraisals.; and ~.~ ................................. g. eEvaluation of this plan and the success of its activities. 2. The Agency may acquire, rent, or lease offico space and offico furniture, oquipment, and facilitios necessa~ for it to conduct its affairs in the mana~oment and implementation of this plan. 3. Tho A0oncy may invost its rose~o funds in intorost-boarin0 accounts or securities. 4. To implement this plan, the Agency may borrow money, accept advances, loans, or ~rants from any legal source, issue urban ronewal bonds and receive tax increment proceeds as provided for in Soction 700 of this plan. fc~h ' I t plan inCh,dad i. D~M T~n 3S ~ a~i¢i~l DR,4FT AMENDMENTS- Urban Rene*val Plan For :g.v~m.:!c ,./'.;ne 3, 200.I O. ntral Eugene G. PROPERTY DISPOSITION AND DEVELOPER OBLIGATIONS ~"'~. ;" a person "'r ....... ,~,,~r than *~' ......... .. ~ ..... ,~ ,-~ .... ~, ~-,,,,~ +~ ~ All real prope~y acquired by the Agency in the plan area, if any, shall be disposod of for developmont for uses permi~od in the plan for the specific uses to bo permittod on tho real prope~y. Roal propo~y acquired by tho Renewal A~oncy may be disposed of to any other public entity in accordance with this plan. All persons and entities obtainin~ prope~ from the A~ency shall use the prope~y for the purposes designated in this plan an0 comply with other conditions which the A~oncy deems necossa~ to car~ out tho purposes of this plan. ~ra~,id~ infarmotinn an ox,~iloNl~ onon~ on~ ~,;11 N~ n;~:~n ~io+~n~ in mn~:inn have ~,o;IoNI~ ~ +h~m N~n+ ~of~ onN ~on;fon~ ~,~ll;n~ ~+ ~ ~r r~n+~ 1. Developer's Obliqations. Any developer and -the developer's successors or assigns within the plan aroa, in addition to the other controls and obligations stipulatod and required by the provisions of this plan, shall also be obligated by the followin0 requirements: a. The Developer shall obtain necessa~ approvals of proposed developments from all Federal, State, or local a~encies that may have jurisdiction on prope~ies and facilitios to be developed or redevoloped within the plan aroa; b. The Developer shall develop or redevelop such prope~y in accordance with the adopted land use provisions; DR.4FT AMENDMENTS - Urban Renewal Plan For uF~,~. .....~ ..... ~,~ ~,.~nn't Central Eugene c. The Developer shall submit all plans and specifications for construction of improvements on the land to the Agency for review and distribution to appropriate reviewing bodies as required by the City and shall comply with all applicable requirements of existing City codes and ordinances; pr~n,'~r~'i,',n ,,-.f rn,'~rL,-~' fz~ihillfw ,'~r ,.-~.l'h~r ~n,~nnmln o'1', ,,',llnc,. d. The Developer shall commence and complete the development of such prope~y for the uses provided in ~his plan within a reasonable period of ~ime; and e. The Developer shall not effect or execute any agreement, lease, conveyance, or other instrument whereby the real prope~y or pa~ thereof is restricted ..... ~ ~, "~ occupancy th~r~o~ n a manner that does not comply with Section 4.61~ of the Eugene Code, lg71. H. REHABILITATION AND CONSERVATION 1. Intent. It is the intent of this Plan to encourage conse~ation and rehabilitation of oxistin~ buildings which can bo economically rehabilitatod. Existin~ buildings in the plan area are considered an impo~ant assot in maintainin~ and improvin~ tho economic and cultural environment of the plan area. 2. Method. Rehabilitation and conse~ation may be achieved in ~o ways: a. By owner and/or tenant activity, with or without financial assistance; ~.~The a ...... ~ ........ ;~ .... , ~, .....~; .........~ ~m~, .... ;, .... ~nn~m~n~ ~n~ ~mnl~m~n~n~;~n ~ ~;~ nl~n b. By the enforcement of existing City codes and ordinances. 3 The a~ ...... ~,, ;-,,~, ;+~ ~,~ *,,-~ ;- ;-*~* ~,;-~ ~,,-*~ ~. DR.4FT AMENDMENTS - Urban Renewal Plan For,.',~vtn'~-~.~ .....~t' .... ~,~ ~..,,*t~n'~, Central Eugene 3. Financial Building Rehabilitation Assistance. The Agency, with funds available to it, may promulgate rules, guidelines and eligibility requirements for the purpose of establishing below-market or market rate loan programs, grants, or other financial incentives to advance the goals and objectives of the Central Eugene Urban Renewal District Plan. Loans, grants or incentives provided by the Agency may be used for voluntary rehabilitation of buildings, fagade improvements, provision of amenities on private property in compliance with adopted design guidelines and standards, construction of new buildings, pre-development assistance, connecting to Agency- provided underground electrical and communication systems, or other activities approved by the Agency. I. OWNER PARTICIPATION It is the intent of the Renewal Agency to provide Iow-interest loans to assist development and redevelopment of private property in the district. Prope~y owners within the plan area proposing to improve their prope~ies and receivin~ financial assistance from the A~ency shall do so in accordance with all applicable provisions of this plan and with all applicable codes, ordinances, policies, plans, and procedures of the City of Euoene. Section 700 - Methods for Financing the Projects The Agency may borrow money and accept advances, loans, grants, and other legal forms of financial assistance from the Federal government, the State, City, County, or other public body, or from any source, public or private, for the purposes of undertaking and carrying out this development plan, or may otherwise obtain financing as authorized by ORS Chapter 457. Ad valorem taxes, if any, levied by a taxing body upon the taxable real and personal property situated in the urban renewal area, shall be divided in accord with and pursuant to ORS 457.420 through 457.450. I D RAFT,4MENDMENTS - Urban Renewal Plan For :~p~: J'.;n'e 3, 200.4 Central Eugene The Agency shall adopt and use a fiscal year ending June 30 accounting period. Each year the agency shall develop a budget in conformance with the provisions of ORS Chapter 294 and ORS 457.460 which shall describe sources of revenue, proposed expenditures, and activities. The Urban Renewal Agency Board of Directors must approve all projects, other than loans, in excess of $250,000. Section 800- Annual Financial Statement Required ~ The D~a .... ~ ..... h~,a .... ~ ...... a .... ~ ...... ............. ~ ........ commence ~ .... I~+~ occupancy +h .... A. By August 1 of each year, a financial statement shall be prepared and provide information containing: ~. Amounts of money ~receivod durin~ the precedin~ fiscal year under 8u~sect~en ~ c~ ORS ~57.4~0 ORS 457.420 to 457.4~0 DR,4FT AMENDMENTS - Urban Renew, al Plan For :~p~.mEc ,P~nc 3, 290,! Central Eugene from indebtedness incurred under Subsectior, 6 of ORS 457.440 ORS 457.420 to ORS 457.460; rz~kokili~,~i~n ~c ~vi~fin~ k~ ~il~lin~ ~hlnk ~v~n k~ ~nnnnminolht rL~kokili~,~,~l 2. The purposes and amounts for which any money received under Subsection 4 of ORS 457.440 ORS 457.420 to 457.460 and from indebtedness incurred under,.,-,..,..,,,,.,, c, ,ko,~,.+~,-,~, 6 '''~,., r~=,~.., .... ,:~-~.,.,. ,~n, .., ORS 457.420 to 457.460 were expended during the preceding fiscal year; 3. An estimate of monies to be received during the current fiscal year under Subsection 4 of QRS 457.440 ORS 457.420 to 457.460 and from indebtedness incurred under Subcectlcn 6 cf ORS 457.440 ORS 457.420 to 457.460; 4. A budget setting forth the purposes and estimated amounts for which the monies which have been or will be received under $'Jbsectien 4 cf ~ORS 457.420 to 457.460 and from indebtedness incurred under Subsection 6 cf ORS 457.440 ORS 457.420 to 457.460 are to be expended during the current fiscal year; and I .,, /11 i~1 igl~I ~11~11 I~ I I~l I~111{~[1~1 I I I~Vl~{~l IV~I I I I~ I I~l IV~ I!1~1 I I~1 I~g 5. An analysis of the impact, if any, of carrying out the urban renewal plan on the tax rote-collections for the preceding year for all taxing ~ districts included under ORS 457.430. B. The statement shall be filed with the City Council and notice shall be published in a newspaper of general circulation within the City that a statement has been prepared and is on file with the City and Agency and the information contained in the statement is available to all interested persons. The notice shall be published once a week for not less than two -successive weeks before September 1 of the year for which a statement is required in accordance with ORS 457.115. The notice shall summarize the information DRAFT,4MENDMENTS- Urban Rene,val Plan For ~tF~. J'ane 3, 200'4 Central Eugene required under paragraphs 1 to 4 of this section and shall set forth in full the information required in paragraph five of this section. A.~ DRAFT AMENDMENTS- Urban Renewal Plan For ::F-~.,?c .Pane 3, 290.! Central Eugene Section 900- Citizen Participation The activities and proJects defined in this plan, development of subsequent plans, procedures, activities, and regulations and the adoption of amendments to this plan shall be undertaken with the participation of citizens, owners, tenants as individuals, and organizations who reside within or who have financial interest within the project area together with the participation of general citizens of the city. An advisory committee authorized by the Urban Renewal Agency Board of Directors will advise on the activities of this urban renewal district and will periodically evaluate the plan and its implementation processes. Section 1000 - Non-Discrimination In the preparation, adoption, and implementation of this plan no public official or private party shall take any action to cause any person, group or organization to be discriminated against on the ~"o;o '-~ o~',"~+~ ,o ,,~r n,'~t'i~n,"M ,,'~ri,"~in ~'hni,~if,, n,~,"~ri+,-~l ........ ~; ....... ~;o~;';*" in a manner that violates Section 4.613 of the Eugene Code, 1971 .~ DR,4FT,4MENDMENTS - Urban Renewal Plan For [I1%.t~ ,]un'e 3, 200'I Central Eugene Section 1100 - Recording of this Plan A copy of the City Council's reselut4e~ordinance approving this plan shall be recorded with the recording officer of Lane County. Section 1200 - Procedures for Changes or Amendments I The plan will be reviewed and analyzed periodically and will continue to evolve during the course of project execution and ongoing planning. It is anticipated that this plan will be changed or modified from time to time or amended as development potential and conditions warrant, as planning studies are completed, as financing becomes available, or as local needs dictate. Types of Plan Amendments ~,,,.~^t~,~,~, ,~, ........ ~ ~:--A. 'I')~e One Amendment- ~J;~ Oh ..... Substantial Change Requiring Special Notic~ Type One amendments shall require approval per ORS 457.095, and notice as provided in ORS 457.120. Type One plan changes will consist of: 1. Increases in the urban renewal area boundary in excess of one percent (1%) of the existing area of the renewal plan. 2. Increases in the maximum indebtedness that can be issued or incurred under this plan. B. ~-Type Two Amendment- Substantial Change Not Requiring Special Notice Type two amendments shall require approval per ORS 457.095, but will not require notice as provided in ORS 457.120. Type two amendments will consist of: DRAFT AMENDMENTS - Urban Renewal Plan For u.."./~n.,ac J'anc 3, 290'/ Central Eugene 1. The addition of improvements or activities which represent a substantial change in the purpose and objectives of this Plan, and which cost more than $500,000. The $500,000 amount will be adjusted annually from the year 2003 according to the "Engineering News Record" construction cost index for the Northwest area. 2. Any change or provision of this Plan which would modify the goals and objectives or the basic planning principles of this plan. Substantial changes shall include, but are not limited to, revisions in project boundaries, land uses, project activities, street system changes, major relocation of the downtown transit station, or other elements which will change the basic planning principles of this plan. C. --Type Three Amendment - Minor Amendment -Minor amendments may be approved by the Renewal Agency in resolution form. Such amendments are defined as: 1. Amendments to clarify language, add graphic exhibits, make minor modifications in the scope or location of improvements authorized by this Plan, or other such modifications which do not change the basic planning or engineering principles of the Plan. 2. Acquisition of property for purposes specified in Section 600C3 of this plan. 3. Addition of a project substantially different from those identified in Sections 600 of the Plan or substantial modification of a project identified in Section 600 if the addition or modification of the project costs less than $500,000 in 2003 dollars. 4. Increases in the urban renewal area boundary not in excess of one percent (1%). DC. Amendment to the City's Comprehensive Plan or any of its Implementing Ordinances Should the City Council amend the City's comprehensive plan or any of its implementing ordinances and should such amendment cause a substantial change to this plan, the City Council amending action shall cause this plan to be amended provided that the Planning Commission and City Council approve the amendment. In the event of such amendment, the text and/or exhibits of this plan, if applicable to this plan, shall be changed accordingly by duly recorded reselutiemordinance.: DRAFT.4MENDMENTS - Urban Rene,val Plan For uF~.....~ ...... 0,~ .,...'~nf~'t, Central Eugene Section 1300 - Duration and Validity of Approved Plan Duration of Urban Renewal Plan This plan shall remain in full force and effect through June 30, 2029. ~:"-,.., a ~-.-,"'"""'4,-..- ..,'-~: ,i..,..,.,,, ,.. The City Council shall conduct periodic reviews in 2009 and 2019. Reviews will consider extending the duration beyond 2029; modifying the boundaries; modifying~ the maximum indebtedness; and modifying eligible project activities to be undertaken in the Downtown Urban Renewal District. The review process shall include a review and recommendation from the Eugene Redevelopment Advisory Committee. er. cy '~',...,'-~'''',, ,~ the. I 0t~ ..,o"'~... ,, 5t~ years .~, upda~. Such review willshall include a public hearing '-'-'~ Va#dity Should a court of competent jurisdiction find any word, clause, sentence, section, or part of this plan to be invalid, the remaining words, clauses, sentences, section, or parts shall be unaffected by any such finding and shall remain in full force and effect for the duration of the plan. Section 1400- Maximum Indebtedness The sum of $33,000,000 is-was established in 1998 as the maximum amount of new indebtedness which may-could be issued or incurred under this Plan. This amount does not include funds to pay interest on that indebtedness nor funds to repay indebtedness existing on the date of this the 1998 amendment. CITY-WIDE SPECIAL LEVY. Option One and its city-wide special levy, as described in ORS 457.435(2)(a), were chosen in 1998 as the method for collecting ad valorem property taxes sufficient to pay when due, indebtedness issued or incurred to carry out the Urban Renewal Plan for the Central Eugene Project as permitted by section 11 (16), Article XI of the Oregon Constitution. DRAFT AMENDMENTS- Urban Renewal Plan For ',:p'~!c Junc 3, 200'! Central Eugene Part 2 - Exhibits Exhibit A: DevelOPment Plan Boundary DRAFT,4MENDMENTS - Urban Renew'al Plan For u~..,.,.~t' .... ~,~ ~..,,'~'qn't. Central Eugene Central Eugene (Downtown) Urban Renewal Boundary 6th Avenue 6th Avenue · Avenue 8th Avenue 8th Avenue loth Avenue llth Avenue ~ ~~ ~ DR,4FT AMENDMENTS - Urban Renewal Plan For ::F~,~~ ,k~nc 3, 200,1 Central Eugene Central Eugene (Downtown) Urban Renewal Boundary DR,4 FT AMENDMENTS - Urban Renewal Plan For ::F't?~c ~h:nc 3, 200,4 Central Eugene Urban Renewal Plan For~~ Central Eugene Project (AKA: Downtown Urban Renewal District) Central Eugene (Downtown) Urban Renewal Boundary DRAFT Au.qust 9, 2004 July 1968 - Modified - December 1968 December 1989 June 1998 September 2004 Urban Renewal Agency of Eugene, Oregon URBAN RENEWAL PLAN FOR THE CENTRAL EUGENE PROJECT Table of Contents Section 100 - Introduction ....................................................................................................................................... - 0 - Section 200 - Definitions ......................................................................................................................................... - 0 - Section 300 - Legal Descriptions ............................................................................................................................. - 1 - Section 400 - Goals and Objectives ......................................................................................................................... - 2 - Goals .................................................................................................................................................................... - 2 - Objectives ............................................................................................................................................................. - 3 - Land Use .......................................................................................................................................................... - 3 - Access and Circulation ..................................................................................................................................... - 3 - Public Facilities and Improvements ................................................................................................................. - 4 - Rehabilitation .................................................................................................................................................... - 4 - Section 500 - [,and Use Plan ................................................................................................................................... - 5 - Section 600 - Prqject Activities ............................................................................................................................... - 5 - A. PUBLIC IMPROVEMENTS ................................................................................................................ - 5 - B. OFF-SITE FACII.,ITIES ....................................................................................................................... - 7 - C. ACQUISITION AND REDEVELOPMENT ........................................................................................ - 8 - D. RELOCATION ACTIVITIES .............................................................................................................. - 9 - E. DEVELOPMENT AND REDEVELOPMENT .................................................................................... - 9 - F. ADMINISTRATIVE ACTIVITIES ...................................................................................................... - 9 - G. PROPERTY DISPOSITION AND DEVELOPER OBLIGATIONS ................................................. - 12 - H. REItABILITATION AND CONSERVATION ..................................................................................- 13 - I. OWNER PARTICIPATION ............................................................................................................... - 14 - Section 700 - Methods for Financing the Projects ................................................................................................. - 14 - Section 800- Annual Financial Statement Required ............................................................................................. - 15 - Section 900 - Citizen Participation ........................................................................................................................ - 18 - Section 1000 --Non-Discrimination ....................................................................................................................... - 18 - Section 1100 --Recording of this Plan ................................................................................................................... - 19 - Section 1200 - Procedures for Changes or Amendments ....................................................................................... - 19 - A. Type One Amendment- Substantial Change Requiring Special Notice ...................................................... - 19 - B. Type Two Amendment - Substantial Change Not Requiring Special Notice .............................................. - 19 - C. Type Three Amendment - Minor Amendment ........................................................................................... - 20 - D. Amendment to the City's Comprehensive Plan or any of its Implementing Ordinances ............................. - 20 - Section 1300 - Duration and Validi _ty of Approved Plan ....................................................................................... - 21 - Duration of Urban Renewal Plan ....................................................................................................................... - 21 - Validity - 21 - Section 1400 - Maximum Indebtedness ................................................................................................................. - 21 - CITY-WIDE SPECIAL LEVY .......................................................................................................................... - 21 - Part 2 - Exhibits ..................................................................................................................................................... - 22 - Exhibit A: Development Plan Boundary ........................................................................................................... - 22 - Section 100- Introduction ....................................................................................................................................... - 1 - Section 200 - Definitions ................................................. : ....................................................................................... - 1 - Section 300 - Legal Descriptions ............................................................................................................................. - 2 - Section 400 - Goals and Objectives - 3 - Goals .................................................................................................................................................................... - 3 - Objectives ............................................................................................................................................................. - 4 - Land Use .......................................................................................................................................................... - 4 - Access and Circulation ..................................................................................................................................... - 4 - Public Facilities and. Improvements ................................................................................................................. - 5 - Rehabilitation ................................................................................................................................................... - 5 - Section 500----- Land Use Plan ................................................................................................................................... - 5 - Section 600 - Project Activities ............................................................................................................................... - 6 - A. PUBLIC IMPROVEMENTS - 6 - B. OFF-SITE FACILITIES ....................................................................................................................... - 8 - C. ACQUISITION AND REDEVELOPMENT ........................................................................................ - 8 - D. RELOCATION ACTIVITIES .............................................................................................................. - 9 - E. DEVELOPMENT AND REDEVELOPMENT .................................................................................... - 9 - F. ADMINISTRATIVE ACTIVITIES ...................................................................... - 10 -- 9 -- 10 -- 10 -- 9 - G. PROPERTY DISPOSITION AND DEVELOPER OBLIGATIONS ................................................. - 10 - H. REHABILITATION AND CONSERVATION. ................................................................................. - 11 - I. OWNER PARTICIPATION ............................................................................................................... - 12 - Section 700 - Methods for Fh~ancing the Projects ................................................................................................. - 12 - Section 800 - Annual Financial Statement Required ............................................................................................. - 12 - Section 900 - Citizen Participation ........................................................................................................................ - 13 - Section 1000- Non-Discrimination ..................................................................................... -13 -- 13 -- 13 -- 13-- 1.4- Section 1100 - Recording of this Plan .................................................................................................. - 14 -- 13 -- 1.4 - Section 1200 -Procedures for Changes or Amendments ....................................................................................... - 14 - A. Type One Amendment- ................................................................................................................................ - 1.4 - Substantial Change Requiring Special Notice .................................................................................................... - 14 - B. Type Two Amendment - Substantial Change Not Requiring Special Notice .............................................. - 14 - C. Amendment to the City's Comprehensive Plan or any of its Implementing Ordinances .............................. - 15 - Section 1300 - Duration and Validity of Approved Plan ....................................................................................... - 15 - Duration of Urban Renewal Plan ....................................................................................................................... - 15 - Validity ............................................................................................................................................................... - 15- Section 1400- Maximum Indebtedness ............................................................................... - 15 -- 15 -- 15 -- 15 -- 16- CITY-WIDE SPECIAL LEVY ........................................................................................ - 15 -- 15 -- 15 -- 15 -- 16 - Part 2 - Exhibits .................................................................................................................................... - 16 -- 17 -- 16 - E.,dtibit A: Development Plan Boundary .......................................................................................... - 16 -- 17 -- 16 - URBAN RENEWAL PLAN FOR THE CENTRAL EUGENE PROJECT TABLE OF CONTENTS q~*i~, ann Cltl ....D~i~i~+i~ 1 ~;~ I qnn n, ,r~+;~ ~4 ~/~l;4;+w ~; A~r~,~4 Dian Section 100 - Introduction The Central Eugene Project Plan, containing an area of approximately 70 acres within the boundaries of the City of Eugene, consists of Part 1, text, and Part 2, exhibits. This revised plan has been prepared by the Planning and Development Department of the City of Eugene and is formatted in line with Oregon Revised Statutes, ORS Chapter 457, at the request of the City Council. Section 200 - Definitions The following definitions will govern this plan. Acquisition means the act or process of acquiring fee title or interest other than fee title of real property (including the acquisition of development rights or remainder interest). Agency or Renewal Agency means the Eugene Renewal Agency which in accordance with ORS Chapter 457 is the official Urban Renewal Agency of the City of Eugene, Lane County, Oregon. Blighted areas means areas which, by reason of deterioration, faulty planning, inadequate or improper facilities, deleterious land use, or the existence of unsafe structures, or any combination of these factors, arc '~"*-;'-"""*"~ to *~' ...... ~'-' -'* .... * ..... ......... ~';""+;'""' "~: *~'"'°~' ~:""+"'"° are detrimental to the safety, health, or welfare of the community. A blighted area is characterized by the existence of one or more of the conditions described in ORS 457.010 (1). City means the City of Eugene, Lane County, Oregon. County means the County of Lane, State of Oregon. Developer means any individual or .qroup which acquires property or which receives financial assistance for the physical improvement of publicly or privately held structures and land within the project area. Downtown Plan The Policies in m,,_ ~ ,q ,-, ,, , ~, ,q ~,,,: ...... r,~,,, r- ..... a ;,, 2O0dlCm,~ ,~,,, Downtown Plan is-were adopted by the Eugene City Council in 2004 as a refinement of the Eugene Springfield Metropolitan Area General Plan. Exhibit means an attachment, either narrative or graphic, to the plan for the project area. DRAFT /tMENDMENTS - Urban Renewal Plan For upd~'e~.,~""~ ~,, ~ ~v*r~, Central Eugene ORS means Oregon Revised Statutes (State law). ORS Chapter 457 regulates the urban renewal process. Plan means the Urban Renewal Plan for the Central Eugene Project. The plan consists of Part 1, text and Part 2 exhibits. Project means any undertaking or activity within the central Eugene project, such as a public improvement, street project, or loan program which is authorized by and implements provisions set forth in the Urban Renewal Plan. Plan area means the entire Central Eugene Project plan area. Redeveloper (see Developer) means any individual or group which acquires property or which receives financial assistance for the physical improvement of publicly or privately held structures and land within the project area. Rehabilitation means the act or process of returning a property to a state of utility through repair or alteration which makes possible an efficient, contemporary use while preserving those portions or features of the property which are significant to its historical, architectural, and cultural values. Report on the plan which means the textual material and graphic exhibits required by ORS 457.085 (3) which explains existing conditions, activities, procedures, and proposals of the plan. State means the State of Oregon and its various agencies, divisions, and departments. Tax increment financinq means a method of financing urban renewal projects as authorized by ORS Chapter 457, which uses the tax revenues generated by the increased taxable values in a defined area to pay for improvements within that area or benefiting that area. Text means Part 1 of this Urban Renewal Plan for the Central Eugene Project. Section 300 - Legal Descriptions Legal Boundary The Central Eugene Project includes that area of approximately 70 acres as originally established,.;,,,~ 968 ~'-'~ "-' .,,~,4~,~,,,.,, ~,,~,,~,+,~,~ ....... +.~,,~,,., .,~,,-,, ,, ~ .~ o ..... T~,,. DI~tFT AMENDlvlENTS - Urban Renewal Plan Central Eugene The following is a legal description of the boundary of the Central Eugene Project plan area: The project area includes all of the land within the boundaries designated on the Project Boundaries Map attached as Exhibit A and is described as containing all lots or parcels of property, situated in the City of Eugene, County of Lane, State of Oregon, bounded generally as follows: --Beginning at the southwest corner of the intersection of 11th Avenue and Charnelton Street in the City of Eugene, Lane County, Oregon, commencing northerly along the west right-of-way line of Charnelton Street to the point of intersection of the south right-of-way line of the alley between 10th Avenue and Broadway; (1) thence, westerly along the south right-of-way line of said alley to the west line of Lincoln Street; (2) thence, northerly along the west right-of-way line of Lincoln Street to the point of intersection of the north right-of-way line of the alley between Broadway and 8th Avenue if extended; (3) thence, easterly along the north right-of-way line of said alley to the west right-of-way line Charnelton Street; (4) thence northerly along the west right-of-way line of Charnelton Street to the northwest corner of the intersection of 7th Avenue and Charnelton Street; (5) thence easterly along the north right-of-way line of 7th Avenue to the northwest corner of the intersection of 7th Avenue and Olive Street; (6) thence northerly along the west right-of-way line of Olive Street to the northwest corner of the intersection of 6th Avenue and Olive Street; (7) thence easterly along the north right-of-way line of 6th Avenue to the northeast corner of the intersection of 6th Avenue and Oak Street; (8) thence southerly along the east right-of-way line of Oak Street to the northeast corner of Oak Street and South Park Avenue; (9) thence easterly along the north right-of-way line of South Park Avenue extended to the east right-of-way line of Pearl Street; (10) thence, southerly along the east line of Pearl Street to the southeast corner of the intersection of Pearl Street and 11th Avenue; (11) thence, westerly along the south line of 11th Avenue to the point of beginning. Section 400 - Goals and Objectives ~Goals The goals of the Central Eugene Project Plan are: DRAFT AMENDMENTS- Urban Renewal Plan For ::pd~*e ~..~t' ..... ~,~ ~,.vormJ. Central Eugene 1. To improve the function, condition, and appearance of the development area through: a. redevelopment and rehabilitation of existinq and substandard buildings; b. development of new buildin.qs c. improved access and circulation in the downtown area; d. provision of pedestrian amenities and open space. 2. To eliminate blight and blighting influences; and 3. To strengthen the economic conditions of the plan area and to improve the downtown's importance in the region by strengthening its economic base and to enhance its role as a central location for public and private development and investment. Objectives Development in the Central Eugene Project area is intended to implement the adopted policies contained in the adopted Downtown Plan. Specifically, the objectives of this plan are: --.Land Use · Promote intensity of use through development of publicly and privately owned land. · Strengthen existing retail and seek new retail development for integration into the downtown area. · Support existing and potential office development and other employment- generating uses. · Encourage owner-occupied and rental housing or developments which ~ncorporate~nc,.,, ~, ...... housing, in the downtown. Acc ss and Circulation · Improve access and entrances into the downtown from the regional transportation system. DRAFT AMENDMENTS- [fi~ban Renewal Plan For upa~*~ ~.,.~' .... ..,~ .~v*rmx. Central Eugene · Provide better access within the downtown and linkages between downtown and other major activity centers. · Improve the circulation of traffic within the plan area. · Provide an adequate site and facilities in support of mass transit to meet the present and future needs of downtown employees, employers, retailer, businesses, and other downtown users. · Improve r.,-,,,,~ .... ............ ,., ...... access and circulation for bicycles, pedestrians, carpooling, and other alternative modes of transportation. · Assist with the construction of new parking structures to meet existing and future development needs. · Improve connections between the core of downtown, the riverfront area, and the University of Oregon. Public Facilities and Improvements · Provide outdoor space downtown for major public gatherings. · Provide appropriate landscaping, open spaces, rest areas, and other shopper amenities and conveniences. · Support the continued development of thea-Rew downtown public library. · Construct or reconstruct public improvements that will stimulate nighttime activity or private investment in the downtown area. · Improve the water, steam, sewer, and storm drainage system in the plan area. · Assist with the construction of public facilities. · Improved accessibility for people of all abilities, anywhere in the district, throuqh the removal of architectural barriers, rehabilitation of existing structures and through the application of design improvements. Rehabilitation · Encourage repair and rehabilitation of existing buildings within the project area through grants and Iow-interest loan programs. DRetFT AMENDMENTS- Urban Renewal Plan For uFd~*e duty's' 3, 200~ Central Eugene Section 500 - Land Use Plan The use and development of all land within the Central Eugene Project Plan area shall comply with the regulations prescribed in the City's comprehensive plan, zoning ordinance, subdivision ordinance, City charter, or any other applicable local, State or Federal laws regulating the use of property within an urban renewal area. ~ Section 600 - Project Activities In order to achieve the objectives of this plan, the following activities may be undertaken on behalf of the City of Eugene by the Renewal Agency, in accordance with applicable Federal, State, County, and City laws, policies, and procedures. A. PUBLIC IMPROVEMENTS 1. Street, Curb1 and Sidewalk Publis-lmprovements Improvements within the renewal area may require the construction of new street, curb, sidewalks or sidewalk improvements, such as widening, within the plan area. The Renewal Agency may participate in fundinq sidewalk and roadway improvements includin.q design, redesign, construction, resurfacing, repair and acquisition of right-of way for curbs, streets, and sidewalks, and pedestrian and bicycle paths. Projects to be undertaken include, but are not limited to: · Local street, curb, and sidewalk improvements identified in the Euqene Capital Improvements Proqram (CIP), the Vision For a Greater Downtown Eugene Report, -and the Courthouse District Concept Plan. · Other curb, sidewalk and street improvements identified by the Renewal Agency. 2. Public Utilities The development proposed for the renewal area may require the replacement and construction of water, storm and sanitary sewer facilities, environmental mitigations. These improvements may include, but are not limited to: · Sanitary sewer, water, and storm water system up.qrades & replacements identified in Eu.qene Capital Improvements Proqram DRAFT AMENDMENTS- Urban Renewal Plan Central Eugene 3. Streetscape Proiects This activity will enable the Renewal Agency to participate in activities improving the visual appearance of the plan area. These improvements may include, but are not limited to: · Accent paving · Decorative lighting · Street trees, planters, and landscaping · Furnishings, including tables, benches, kiosks, telephone booths, drinkin.q fountains, trash receptacles, bicycle racks · Street and directional siqna(~e · Public art and water features · Gateway monuments and landscape features · Undergrounding of overhead utilities 4. Pedestrian, Bike, and Transit Improvements These activities will include pedestrian, bicycle and transit connections between the renewal plan area, the river, public parks, and other areas of Eugene. Activities may include bicycle parking and storaqe, transit stops, covered shelters, transit pullouts, and other related activities which will promote pedestrian, bicycle, and public transportation uses in the renewal area. These improvements include, but are not limited to: · Provide new bike paths or lanes · Provide pedestrian connections to the downtown, riverfront, and Courthouse area. · Provide a more prominent entrance to the downtown at East Broadway · Provide weather sheltering devices for the protection of pedestrians · Street lights and traffic control devices 5. Public parks,...,,,.~' ,,a~, ...... ., ~ ., ... , , , .. ,+.- ,'" o ..,,....~.~"- -'"+~o~....,,.., public plazas, rest rooms, ~and open spaces The Renewal Agency may participate in fundinq the design, acquisition, construction or rehabilitation of public spaces, or parks or public facilities within the urban renewal area. Proiects to be undertaken include, but are not ~ limited to: · Walkways and plazas · Accessibility improvements 6. Public Parkinq and Public Transportation Facilities The Agency is authorized to participate in fundinq the acquisition and construction and enhancement of public parkinq and public transportation facilities within the renewal area. The precise location and type of facilities will be decided after further study. DRAFT AMENDMENTS- th'ban Renewal Plan For =Fd~c Central Eugene 7. Other Public Facilities The Agency is authorized to participate in development of public facilities including City Hall, police and fire facilities, libraries, recreation centers, conference facilities, and community centers. These facilities will benefit the renewal area by increasing public usa.qe of the area, by enhancinq protective services, and by stimulating additional public and private investment in the renewal area. The extent of the A.qency's participation in funding such facilities will be based upon an Agency findinq on the benefit of that prelect to the renewal area, and the importance of the prelect in carrying out Plan objectives. The type and location of these public facilities will be determined by future study. Potential public facilities to be assisted include, but are not limited to: control a~.,,; .... · New Police Buildinq or City Hall · Library improvements B, OFF-SITE FACILITIES To encouraqe the development or redevelopment of private property within the plan area, the Agency may construct, install, pay for, or otherwise cause certain off-site public facilities to be installed or provided when, in the public interest, such action would benefit and further the obiectives of the plan. Potential off-site facilities to be assisted include, but are not limited to: · New parking, improvements to existinq transportation and other facilities, and mass transit stations. DRAFT AMENDME?v TS Central Eugene C. ACQUISITION AND REDEVELOPMENT 1. Intent. It is the intent of this plan to authorize the Renewal Agency to acquire property within the plan area by any legal means to achieve the obiectives of this plan, and specifically, for any of the purposes listed below. 2. Method. Property acquisition, including limited interest acquisition, is hereby made a part of this plan and may be used to achieve the objectives of this plan in the presence of any of the followinq conditions: a. Where existing conditions do not permit practical or feasible rehabilitation of a structure and it is determined that acquisition of such properties and demolition of the improvements thereon are necessary to remove substandard and bliqhting conditions; b. Where detrimental land uses or conditions such as incompatible uses, or adverse influences from noise, smoke or fumes exist, or where there exists overcrowdin.q, or conversions to incompatible types of uses, and it is determined that acquisition of such properties and demolition of the improvements are necessary to remove blighting influences and to achieve the objectives of this plan; c. Where it is determined that the property is needed to provide public improvements and facilities as follows: · 1. Right-of-way acquisition for streets, alleys, or pedestrian ways; · 2. Property acquisition for public use; and · 3. Property acquisition for public, off-street parking facilities. d. Where it is determined that the assemblinq of land for private development is necessary to attract new commercial and residential activity or to allow for expansion or efficient operation of current commercial or industrial activities. 3. Land Acquisition Requiring Plan Amendments. Land acquisition for any purpose other than specifically listed in 600-C-2 above, shall be accomplished only by followinq procedures for amendinq this plan as set forth in Section 1200 of this plan. If such plan amendment is approved by the Euqene Renewal Aqency a map exhibit shall be prepared showinq the properties to be acquired, shall be appropriately numbered, and shall be included in Part Two as an official part of this plan. Assemblin.q land for private development where the developer of such land is a person or group other than the owner of record of such land to be acquired, shall not be DR/IFT AMENDMENTS- Cfi'ban Renewal Plan For =pd£*e o.,~.T' .... ~,~ ~=vont~, Central Eugene considered as a substantial amendment to this plan. Each such development and the property acquisition required shall be processed on a case-by-case basis and no such acquisition shall be undertaken until authorized by the Renewal A.qency~ I D. RELOCATION ACTIVITIES If the Agency acquires property which is occupied and would cause the displacement of the occupants in the implementation of the plan, the A.qency will provide assistance to persons or businesses to be displaced. Those displaced will be contacted to determine their individual relocation needs. They will be provided information on available space and will be given assistance in movinq. All relocation activities will be undertaken and payments made in accordance with the requirements of ORS 281.045 - 281.105 and any other applicable laws or regulations. Relocation payments will be made as provided in ORS 281.060. Payments made to persons displaced from dwellings will assure that they will have available to them decent, safe, and sanitary dwellinqs at costs or rents within their financial means. The Aqency will prepare, adopt, and maintain a Relocation Policy prior to acquiring any property which will cause displacement. E. DEVELOPMENT AND REDEVELOPMENT The Renewal Agency also is authorized to provide loans or other forms of financial assistance to property owners wishinq to develop or redevelop land or buildin.qs within the renewal area, or to persons desirinq to acquire or lease buildinqs or land from the Agency. The Agency may assist in the creation of, and participate in, public/private partnerships that result in development or redevelopment. The Agency may make this assistance available as it deems necessary to achieve the obiectives of this Plan. Proiects receivinq Agency assistance may include, but are not limited to: · Assisting the construction or expansion of iob-creatin.q developments · Assistinq in the development of housing and mixed use proiects F. ADMINISTRATIVE ACTIVITIES DRAFT AMENDMENTS - Urban Renewal Plan For upa~c~.,.~"~' .., ~ .~v*rm~. Central Eugene 1. The Agency may retain the services of independent professional people or organizations to provide administrative or technical services such as: ,~.v .., ~,,/ ~..,, ~, ~,/ ,, ,,, , p,,,..,,,~ /,.,,~..,v,,,~., '"'dl' '"''"' v'".F '~"¥"~' a. Preparation of market, feasibility, or other economic studies; b. Preparation of design, architectural, enflineerinq, landscapinfl architoctural, planning, dovolopmont, or othor devolopmontal studies; c. Providing accounting or audit services; d. Providinq special rehabilitation, restoration, or renovation feasibility and cost analysis studies; e. Assistin.q in preparation of the annual financial report required under Section 800 of this plan; and DRrtFT AMENDMENTS - Ch'ban Renewal Plan For upzP~e J'~r:c' 3, 200~, Central Eugene .,,,~ ~,~,, .,,.,O ~,~,,~ ~, ~,,~ ~, .,,~ ,~,.~--,,,~ v~ ..... ,~,,~. f. Providinq prope~y acquisition appraisals4 and g. ~Ev~lu~tion of ~his ~l~n ~nd ~he success of i~s ~otivi~ies, b W~r~ ~r~m~n~l I~n~ ,,~ ~r ~n~;~n~ ~,~ ~ ;n~mn~;~l~ 2. The Agency may acquire, rent, or lease office space and office furniture, equipment, and facilities necessa~ for it to conduct its affairs in the management and implementation of this plan. 3, The Aqency may invest its rese~e funds in interest-bearing accounts or securities, 4. To implement this plan, the A~ency may borrow money, accept advances, loans, or grants from any legal source, issue urban renewal bonds and receive tax increment proceeds as provided for in Section 700 of this plan. pU, ~ ~..,~ .... ~,, ~H~,,,~,,] ,,~.~u ,,, ~.~, ~,,~,, ~. DR/IFT AMENDMENTS - Ih'ban Renewal Plan For uix,~!c......n ..... -,~ ~..~nns, Central Eugene construction of new buildings, pre-development assistance, connecting to Agency- provided underground electrical and communication systems, or other activities approved by the Agency. I. OWNER PARTICIPATION It is the intent of the Renewal Agency to provide Iow-interest loans to assist development and redevelopment of private property in the district. Property owners within the plan area proposing to improve their properties and receiving financial assistance from the Agency shall do so in accordance with all applicable provisions of this plan and with all applicable codes, ordinances, policies, plans, and procedures of the City of Eugene. Section 700 - Methods for Financing the Projects The Agency may borrow money and accept advances, loans, grants, and other legal forms of financial assistance from the Federal government, the State, City, County, or other public body, or from any source, public or private, for the purposes of undertaking and carrying out this development plan, or may otherwise obtain financing as authorized by ORS Chapter 457. Ad valorem taxes, if any, levied by a taxing body upon the taxable real and personal property situated in the urban renewal area, shall be divided in accord with and pursuant to ORS 457.420 through 457.450. The Agency shall adopt and use a fiscal year ending June 30 accounting period. Each year the agency shall develop a budget in conformance with the provisions of ORS Chapter 294 and ORS 457.460 which shall describe sources of revenue, proposed expenditures, and activities. The Urban Renewal Agency Board of Directors must approve all projects, other than loans, in excess of $250,000. Section 800- Annual Financial Statement Required A. By August 1 of each year, a financial statement shall be prepared and provide information containing: 1. Amounts of money received during the preceding fiscal year under ORS 457.420 to 457.460 and from indebtedness incurred under ORS 457.420 to ORS 457.460; DRAFT AMENDMENTS - Urban Renewal Plan For - 12 - Central Eugene 2. The purposes and amounts for which any money received under ORS 457.420 to 457.460 and from indebtedness incurred under ORS 457.420 to 457.460 were expended during the preceding fiscal year; 3. An estimate of monies to be received during the current fiscal year under ORS 457.420 to 457.460 and from indebtedness incurred under ORS 457.420 to 457.460; 4. A budget setting forth the purposes and estimated amounts for which the monies which have been or will be received under ORS 457.420 to 457.460 and from indebtedness incurred under ORS 457.420 to 457.460 are to be expended during the current fiscal year; and 5. An analysis of the impact, if any, of carrying out the urban renewal plan on the tax collections for the preceding year for all taxing districts included under ORS 457.430. B. The statement shall be filed with the City Council and notice shall be published in a newspaper of general circulation within the City that a statement has been prepared and is on file with the City and Agency and the information contained in the statement is available to all interested persons. The notice shall be published once a week for not less than two -successive weeks before September 1 of the year for which a statement is required in accordance with ORS 457.115. The notice shall summarize the information required under paragraphs 1 to 4 of this section and shall set forth in full the information required in paragraph five of this section. Section 900- Citizen Participation The activities and projects defined in this plan, development of subsequent plans, procedures, activities, and regulations and the adoption of amendments to this plan shall be undertaken with the participation of citizens, owners, tenants as individuals, and organizations who reside within or who have financial interest within the project area together with the participation of general citizens of the city. An advisory committee authorized by the Urban Renewal Agency Board of Directors will advise on the activities of this urban renewal district and will periodically evaluate the plan and its implementation processes. Section 1000 - Non-Discrimination In the preparation, adoption, and implementation of this plan no public official or private party shall take any action to cause any person, group or organization to be discriminated against in a manner that violates Section 4.613 of the Eugene Code, 1971. DRAFTAMENDMENTS - Urban Renewal Plan For - 13 - Central Eugene Section 1100 - Recording of this Plan A copy of the City Council's ordinance approving this plan shall be recorded with the recording officer of Lane County. Section 1200 - Procedures for Changes or Amendments The plan will be reviewed and analyzed periodically and will continue to evolve during the course of project execution and ongoing planning. It is anticipated that this plan will be changed or modified from time to time or amended as development potential and conditions warrant, as planning studies are completed, as financing becomes available, or as local needs dictate. Types of Plan Amendments are: A. Type One Amendment- Substantial Change Requiring Special Notice Type One amendments shall require approval per ORS 457.095, and notice as provided in ORS 457.120. Type One plan changes will consist of: 1. Increases in the urban renewal area boundary in excess of one percent (1%) of the existing area of the renewal plan. 2. Increases in the maximum indebtedness that can be issued or incurred under this plan. B. Type Two Amendment- Substantial Change Not Requiring Special Notice Type two amendments shall require approval per ORS 457.095, but will not require notice as provided in ORS 457.120. Type two amendments will consist of: 1. The addition of improvements or activities which represent a substantial change in the purpose and objectives of this Plan, and which cost more than $500,000. The $500,000 amount will be adjusted annually from the year 2003 according to the "Engineering News Record" construction cost index for the Northwest area. 2. Any change or provision of this Plan which would modify the goals and objectives or the basic planning principles of this plan. Substantial changes shall include, but are not limited to, revisions in project boundaries, land uses, project activities, street system changes, major relocation of the downtown transit station, or other elements which will change the basic planning principles of this plan. DRAFTAMENDMENTS - Urban Renewal Plan For - 14 - Central Eugene C. Type Three Amendment- Minor Amendment Minor amendments may be approved by the Renewal Agency in resolution form. Such amendments are defined as: 1. Amendments to clarify language, add graphic exhibits, make minor modifications in the scope or location of improvements authorized by this Plan, or other such modifications which do not change the basic planning or engineering principles of the Plan. 2. Acquisition of property for purposes specified in Section 600C3 of this plan. 3. Addition of a project substantially different from those identified in Sections 600 of the Plan or substantial modification of a project identified in Section 600 if the addition or modification of the project costs less than $500,000 in 2003 dollars. 4. Increases in the urban renewal area boundary not in excess of one percent (1%). D. Amendment to the City's Comprehensive Plan or any of its Implementing Ordinances Should the City Council amend the City's comprehensive plan or any of its implementing ordinances and should such amendment cause a substantial change to this plan, the City Council amending action shall cause this plan to be amended provided that the Planning Commission and City Council approve the amendment. In the event of such amendment, the text and/or exhibits of this plan, if applicable to this plan, shall be changed accordingly by duly recorded ordinance. Section 1300 - Duration and Validity of Approved Plan Duration of Urban Renewal Plan This plan shall remain in full force and effect through June 30, 2029. The City Council shall conduct periodic reviews in 2009 and 2019. Reviews will consider extending the duration beyond 2029; modifying the boundaries; modifying the maximum indebted- ness; and modifying eligible project activities to be undertaken in the Downtown Urban Renewal District. The review process shall include a review and recommendation from the Eugene Redevelopment Advisory Committee. Such review will include a public hearing. Validity Should a court of competent jurisdiction find any word, clause, sentence, section, or part of this plan to be invalid, the remaining words, clauses, sentences, section, or parts shall be unaffected by any such finding and shall remain in full force and effect for the duration of the plan. DRAFTAMENDMENTS - Urban Renewal Plan For - 15 - Central Eugene Section 1400 - Maximum Indebtedness The sum of $33,000,000 was established in 1998 as the maximum amount of new indebtedness which could be issued or incurred under this Plan. This amount does not include funds to pay interest on that indebtedness nor funds to repay indebtedness existing on the date of the 1998 amendment. CITY-WIDE SPECIAL LEVY. Option One and its city-wide special levy, as described in ORS 457.435(2)(a), were chosen in 1998 as the method for collecting ad valorem property taxes sufficient to pay when due, indebtedness issued or incurred to carry out the Urban Renewal Plan for the Central Eugene Project as permitted by section 11 (16), Article XI of the Oregon Constitution. DRAFT AMENDMENTS - Urban Renewal Plan For - 16 - Central Eugene Part 2 - Exhibits Exhibit A: Development Plan Boundary Central Eugene (Downtown)Urban Renewal Boundary 6th Avenue 7~ Avenue 8th Avenue 8th Avenue Broadway zx~ AvenueI DRAFT AMENDMENTS - Urban Renewal Plan For - 17 - Central Eugene ATTACHMENT D CENTRAL EUGENE PROJECT (DOWNTOWN) URBAN RENEWAL DISTRICT REPORT Originally Adopted July 3, 1968 by Eugene Urban Renewal Agency Ordinance No. 257 Amended December 19, 1968 by Eugene City Council Ordinance No. 1609 Amended November 8, 1989 by Eugene City Council Ordinance No. 19648 Amended June 1, 1998 by City Council Ordinance No. 20120 Amended September 8, 2004 by City Council Ordinance No. __ Central Eugene (Downtown) Urban Renewal Boundary loth Avenue City of Eugene DRAFT August 9, 2004 ACKNOWLEDGEMENTS Eugene City Council and Urban Renewal Aqency Board Mayor Jim Torrey Bonny Bettman David Kelly Scott Meisner Nancy Nathanson Gary Pape' George Poling Jennifer Solomon Betty Taylor City of Eugene Staff Dennis Taylor, City Manager Tom Coyle, Director of Planning and Development Department Denny Braud Sue Cutsogeorge Mike Sullivan Richie Weinman Sarah Zaleski Consultant Charles Kupper, Spencer & Kupper, Portland, Oregon 2 TABLE OF CONTENTS ACKNOWLEDGEMENTS .......................................................................................................................................... 2 Chapter 1: Introduction ........................................................................................................................................... 5 Chapter 2: Description of Physical, Social, Economic, and Environmental Conditions in the Plan Area .............. 6 A. Physical Conditions ............................................................................................................................................. 6 B. Social Conditions ............................................................................................................................................... 10 C. Economic Conditions ......................................................................................................................................... 10 D. Environmental Conditions ................................................................................................................................ 10 Chapter 3: Expected Impact, Including Fiscal Impact of the Plan, in Light of Added Services or Increased Population ................................................................................................................................................................... 11 Chapter 4: Reasons for Selection of the Plan Area .............................................................................................. 12 Chapter 5: Relationship Between Existing Conditions and Each Project Activity Undertaken Under the Plan ........ 13 Chapter 6: Estimated Total Cost of Each Project or Activity, Sources of Money, and Anticipated Completion Date for Each Project or Activity ................................................................................................................................ 13 Chapter 7: Estimated Amount of Money and Anticipated Year in Which Indebtedness will be Retired or Otherwise Provided For Under ORS 457.420 to 457.460 .......................................................................................... 15 Chapter 8: Financial Analysis of the Plan with Sufficient Information to Determine Feasibility ........................ 16 Chapter 9: Fiscal Impact Statement That Estimates the Impact of the Tax Increment Financing, Both Until and After The Indebtedness is Repaid, Upon All Entities Levying Taxes Upon Property in the Urban Renewal Area ............. 17 Chapter 910: Relocation Report ....................................................................................................................... - 22 - Chapter -1-011: Appendices ................................................................................................................................. - 23 - Exhibit A - Area Boundary ................................................................................................................................ - 24 - Exhibit B - Zoning Map ..................................................................................................................................... - 25 - Exhibit C - Projected Margin of Change in Tax Rate ........................................................................................ - 26 - Exhibit D - Prior Program Activities .................................................................................................................. - 27 - Exhibit F - Prior Income and Expenditure ......................................................................................................... - 29 - REPORT ON URBAN RENEWAL PLAN FOR THE CENTRAL EUGENE (DOWNTOWN) PROJECT INDEX OF TABLES Page Table 1 Area Acres by Generalized Lane Use 7 Table 2 Zoning in Acres 8 Table 3 Condition of Principal Buildings 9 Table 4 List of Project Activities and Their Estimated Cost 14 Table 5 Resources and Requirements of Plan Activities 16 Table 6 Revenue Impact on Overlapping Jurisdictions 19 4 REPORT ON URBAN RENEWAL PLAN FOR THE CENTRAL EUGENE PROJECT Chapter 1: Introduction The Fourth Amendment to the Central Eugene Project Urban Renewal Plan makes the following changes to Report on the Plan: · Expands and revises the list of project activities to be undertaken · Provides new cost estimates of project activities to be undertaken · Extends the duration of the Plan to the year 2029 · Provides new information on the impact that carrying out the Plan will have on other taxing bodies under Measure 50. Insertions and additions to the Report on the Plan are shown in italics. Deletions from the Report on the Plan are shown as strikeeu~. The City of Eugene has prepared an amendment to the Urban Renewal Plan Update of the URBAN RENEWAL PLAN FOR THE CENTRAL EUGENE PROJECT (CEP) (ORE R-18) JULY 1968 and as modified DECEMBER 1968, December 1989, and June 1998. The Plan Update is reformatted in line with the provisions of Chapter 457 of the Oregon Revised Statutes. The Plan Update is based on goals and objectives from the City of Eugene Downtown Plan adopted in Q~agbe~t~4 February 2004. This report accompanies the Urban Renewal Plan and consists of text, tables, and appendices The Central Eugene Project area contains approximately 70 acres. The legal description for the area is in Section 300 of the Plan. The area is further described on graphic exhibits included in that Plan. 5 Chapter 2: Description of Physical, Social, Economic, and Environmental Conditions in the Plan Area. Note: This description and assessment is only current to the identified dates A. Physical Conditions 1. Land Use The Central Eugene Project encompasses about 70 acres. The total incorporated land area for the City of Eugene,,.,,,'--' ,.,, '-~ ,,,~,~ ~' '~" ~.,, I ~r,,,,,,,, as of June 2004 is ~ 26,908 acres. The Central Eugene Project represents about 0.3 percent. This area combined with the Riverfront Research Park, approximately 448 178 acres, equals 219 248 acres or less than one percent of the City's total land area in renewal districts. This one percent is well within the 15 percent maximum allowed by Oregon State law. 2. Existin.q Land Use and Zoninq Table 1 shows generalized land use as of-¢984 June 2004 according to 13 categories. Table 2 shows the zoning as of June 2004 according to five different zoning districts. A description of each use permitted is found in the City Zoning Code. The Renewal area and zoning maps are located in the Appendix, Exhibits A and B. 6 Table 1 Central Eugene Project Area Acres by Generalized Land Use June 2004 Data Generalized Land Use Communication Education Transportation Government Wholesale Trade Industrial Religious, Charitable Recreation Residential, Multi-Family General Services Parks Retail Trade Vacant Streets, Alleys, Roads 7 Table 2 Central Eugene Project Zoning in Acres June 2004 Data Zone Description Zoning Acres % Community Commercial C2 2.7 3.9% Central Business C3 62.9 89.9% Historic H 0.3 0.4% Public Land PL 4.0 5.7% Special Development - Downtown Westside Special Area Zone S 0.1 0.1% Zcnlnll Ac~ms C2 ~c U / I-I ;~+,-,,- ~ ....... ~ 0.3 0~4 PL/o, ,~,,;,-., ,---,4~ o. 3. Conditions of buildinqs and dwelling units The conditions of 92 principal buildings, within the Renewal Area are rated according to the Lane County assessment records, current to the date shown. The conditions of these buildings are categorized as good, fair, or poor through a rating system based on a physical inspection and rated according to a physical depreciation guide. This guide takes into account the age of the building. Table 3 is a summation. It is assumed that buildings in poor condition, and some buildings in fair condition, may require rehabilitation if economically feasible. Some rehabilitation may have taken place since the inspection date. Table 3 Central Eugene Project Condition of Principal Buildings September, 1985 data - LCOG Research Section Lane County 1982 Physical Depreciation Index Dwelling Condition Commercial Units Good 39 0 Average 30 0 Poor 22 1 (6) (*) = number of dwelling units 4. Sanitary sewer system The sanitary sewer system was upgraded as part of the original Renewal project. This upgrading consisted of relining the existing lines with plastic pipe liners. Each building was reconnected at that time. The engineering analysis showed that the existing capacity is sufficient. 5. Water delivery system According to the Eugene Water and Electric Board, the water delivery system throughout the original and expanded Central Project Area is in sufficient condition and of sufficient capacity to support additional development. 6. Streets, Alleys, Sidewalks, etc. The major portions of the streets, alleys and sidewalks within the Project Area were upgraded as part of the original project and remain in good condition. The remaining areas to be upgraded are adjacent to proposed development sites and will be rebuilt concurrent with the new development. 9 B. Social Conditions According to a 2004 Planning and Development Department analysis the 1980 census, there are five 196 housing units ~ within the Central Eugene Project Area. 'r~,,, ,.. .... ..,, ,,..,' ..... .... ..,, ,....~'~" -.,"~ ,....'"";'~ ~'"*" ....., ,... ',s' ,.........., ,..~.. ....... *" ~'~",.. +,,~ ~.k~ ,-~m,-,~,.-~l ,-~: ,-,-.-,~ ,-,~ +k~ ,.,1~.,,~11;,~,-~ , ,n;'~ ,.4, ,rin,'~ tk~ ;n;+;."~l c,+,.~,,-,~ ,~'F 'Fk,,',. C. Economic Conditions 7. Value of Property The 2003/2004 48881-1990 estimated total taxable assessed value for the entire City of Eugene is approximately $8,713,000,000 ¢'~ The taxable assessed value "frozen" base for the Riverfront Research Park Urban Renewal District is $25,259,285 ~. The 4986/4-cJ87- assessed value of the established "frozen" base for the Central Euqene Proiect is $31,386,991 ~. The total assessed value of the base is $87,446,976 $7-1.~aS,?,~e~ or slightly less than 1% ~ '~ ...... + of the City's total assessed value. This is well within the 15% limit imposed by ORS 457. '";*~';" +~"- 15 ...... +' "' '+~'"'-;-'"'~ by ~+"+'- ~ .... r-' ....... , ,"~,~Xh ,~,'..', ,~, .................... Based on the 1989 assessment data, the estimated Central Eugene Project Taxable Assessed Value is $98,218,574. 8. Relationship of the Value of Improvements to the Value of Land within the Project Area The current relationship of improvement values to land values, based on -1989 2003 assessment records and excluding tax exempt property is 5.39 to 1. The accepted IlL value ratios of healthy, viable, and prosperous areas in Oregon cities are 3.0 to 1 and greater. D. Environmental Conditions Environmental conditions within the Central Eugene Project Area are not expected to change. The area has been an established commercial business area for several years. Most streets, sidewalks, alleys, and sewers are in place and will be upgraded and maintained. The public park areas within the project area will be upgraded and maintained. The public park areas within the project area will be upgraded and maintained as needed. New street trees are to be planted as part of the project. This landscaping should provide a positive environmental impact. 10 Chapter 3: Expected Impact, Including Fiscal Impact of the Plan, in Light of Added Services or Increased Population. Development within the Project Area is not expected to have a significant impact on the 4-J School system. The zoning criteria of C2 and C3 does not encourage residential housing. The past experience shows residential complexes developed around the pro- ject area have focused on adult housing. Based on this experience, there should be no or minimal impact on the local kindergarten through 12th grade schools. The added adult population created by such housing projects may impact Lane Community Col- lege, particularly the Downtown campus, with increased registration. The Fourth Amendment follows the passage of Ballot Measure 50 and its implementa- tion rules. In the Measure 50 environment, taxing bodies "forego" revenue produced by the growth in values over a renewal area's frozen base. The property tax impacts of carrying out this amended Plan are shown in Chapter 9 of this Report. Projects within the Renewal Plan have been chosen for the way in which they support various planning efforts for the downtown area, such as the Downtown Plan. These planning documents were based on assumptions about the expected need for new and improved services due to population growth and other factors. The Renewal Plan is expected to facilitate improvements within the district, according to the overall planning efforts for the area. One of the principal objectives of the Renewal Plan is to improve the existing taxable property. Areas adjacent to the plan area are also expected to become more viable. During the period of time when the Renewal Plan is in effect, property values in the district are estimated to increase by over $160 million. The development site is expected to have a small amount of residential development, but it is not expected to significantly impact the school system. Projects in the plan address the expected impacts of area development on police services, transportation, utilities, and other public services. The Urban Renewal Agency will use tax increment revenues to carry out the plan. The use of tax increment revenues will affect the property tax revenues and bonded debt tax rates of other taxing jurisdictions that share assessed value with Eugene's Urban Renewal Agency. The tax impacts of the Renewal Plan are discussed in detail in Chap- ter 9 of this report. 11 Many other positive impacts are expected from completion of the projects included within the Renewal Plan, such as: · Better connections between major areas of the downtown, such as the core area, the rivet-front area, and the University of Oregon · Higher concentration of mixed uses in the plan area, including government, retail and commercial businesses · More public amenities, such as parks, plazas, recreation areas, and parking Chapter 4: Reasons for Selection of the Plan Area. The plan area of the Central Eugene Project was adopted in 1968. This area was selected after comprehensive community process under the guidance of the Federal Department of Housing and Urban Development (HUD). The goals of the Central Eugene Project are reducing blight and improving the function, condition, and appearance of the plan area. According to ORS 457.010, "blighted areas" means areas that, by reason of deteriora- tion, faulty planning, inadequate or improper facilities, deleterious land use or the exist- ence of unsafe structures, or any combination of these factors, are detrimental to the safety, health or welfare of the community. A blighted area is characterized by the exist- ence of one or more of the following conditions: (a) The existence of buildings and structures, used or intended to be used for living, commercial, industrial or other purposes, or any combination of those uses, that are unfit or unsafe to occupy for those purposes because of any one or a combination of the following conditions: (A) Defective design and quality of physical construction; (B) Faulty interior arrangement and exterior spacing; (C) Overcrowding and a high density of population; (D) Inadequate provision for ventilation, light, sanitation, open spaces and recreation facilities; or (E) Obsolescence, deterioration, dilapidation, mixed character or shifting of uses; (b) An economic dislocation, deterioration or disuse of property resulting from faulty planning; (c) The division or subdivision and sale of property or lots of irregular form and shape and inadequate size or dimensions for property usefulness and development; (d) The laying out of property or lots in disregard of contours, drainage and other physi- cai characteristics of the terrain and surrounding conditions; 12 (e) The existence of inadequate streets and other rights of way, open spaces and utilities; (f) The existence of property or lots or other areas that are subject to inundation by water; (g) A prevalence of depreciated values, impaired investments and social and economic ma/adjustments to such an extent that the capacity to pay taxes is reduced and tax receipts are inadequate for the cost of public services rendered; (h) A growing or total lack of proper utilization of areas, resulting in a stagnant and unproductive condition of land potentially useful and valuable for contributing to the public health, safety and we/fare; or (i) A loss of population and reduction of proper utilization of the area, resulting in its further deterioration and added costs to the taxpayer for the creation of new public facilities and services elsewhere. Chapter 5: Relationship Between Existing Conditions and Each Project Activity Undertaken Under the Plan. All public improvements, building rehabilitation loan programs, administrative and tech- nical support, property acquisition and redevelopment authorization, and relocation activities (if any) set forth in Section 600 of the Plan are intended to correct the defici- encies described in Chapter 2 of this report. Chapter 6: Estimated Total Cost of Each Project or Activity, Sources of Money, and Anticipated Completion Date for Each Project or Activity. The Fourth Amendment to the Plan inserts a new Chapter 6 into the Report on the Plan, showing in table format the project activities to be carried out following the adoption of the amendment and the estimated cost. Some of the activities describ- ed in Chapter 6 of the original plan have been completed, while others are incom- plete, or are no longer under consideration. The list of activities in the table in Amended Chapter 6 will allow completion of projects from the original list, as they are deemed appropriate to project objectives. The list of project activities from Chapter 6 of the original Report on the Plan is shown in Exhibit D of this Report on the Plan. Table 4 on the next page shows that urban renewal financing is estimated to provide $18.6 million of funding out of an estimated total of almost $105 million of public and private financing from FY05 through FY29 when the district terminates. 13 Table 4 - List of Project Activities and their Estimated C st Project Activity Total Estimated Cost Public Improvements 1. Street, curb & sidewalk improvements $4,000,000 2. Public utilities 7,500,000 3. Streetscape projects 2,500,000 4. Pedestrian, bike & transit improvements 4,000,000 5. Public parks, public plazas, rest rooms, and open spaces 5,000,000 6. Public parking and public transportation facilities 7,000,000 7. Other public facilities 7, 000,000 Total Public Improvements $37,000,000 Off-site Facilities (included in other categories) -- Acquisition & Redevelopment 1. Property acquisition $17,500,000 2. Property redevelopment 10, 000, 000 Total Acquisition & Redevelopment $27,500,000 Relocation Activities (included in acquisition) -- Administrative Activities (through FYI O) $5,425,000 Development & Redevelopment 25,000,000 Rehabilitation & Conservation 10,000,000 TOTAL PROJECTS - All Funding Sources $104.925.00~0 Projects Funded from Urban Renewal Agency through FYIO $18,550,000 Projects Funded from Private Sources and Other Federal, State and $86,375,000 Local Government Resources Total Funding for All Projects $104.925.000 Project activities shown in Table 4 will begin in fiscal year 2004-05. Decisions on priorities of funding for project activities will be made by the Eugene Urban Renewal Agency in its annual budget process, and regular Agency meetings, all of which are open to the public. Ail urban renewal funded activities will be completed by the termination date of this Plan in Fiscal Year 2028-29. 14 Chapter 7: Estimated Amount of Money and Anticipated Year in Which Indebtedness will be Retired or Otherwise Provided For Under ORS 457.420 to 457.460. Table 5 sets out the estimated costs of the projects to be completed under the Renewal Plan. The total cost of all projects is estimated at almost $105 million between FY04-05 and FY28-29. The projects will be funded with a combination of urban renewal tax in- crement financing under ORS 457 and other sources. The Urban Renewal Agency expects to apply for funding from other federal, state and local grants in order to com- plete the projects. Private developers will fund some of the project costs. In addition, the public facilities included within the plan may also be funded in part with other public funds, such as systems development charges and general obligation bonds, among other sources. The project activities will begin immediately in FY04-05 and will continue through the final year of the Renewal Plan, in FY28-29. In order for the renewal district to complete all programmed activities and retire any outstanding bonded indebtedness, the maxi- mum indebtedness figure will need to be increased in the future, however. When the Central Eugene Project plan was amended in June of 1998, the City Council added a maximum indebtedness figure of $33 million to the plan. That figure was based on the estimated cost of building a new main library, plus continuation of the administrative costs in the district, preparing annual financial statements, disposing of the Sears building, overseeing completion of the Broadway Place and Overpark elevator projects, and administering the loan portfolio. It excluded existing debt. Based on the estimated cash flow for the district between now and FY09-10, it is ex- pected that the current maximum indebtedness figure will be insufficient to cover anti- cipated expenditures for projects. The maximum indebtedness figure is not being considered for revision at this time because such a change in the Plan would result in a loss of the "grandfather" status of the district under Measure 50. The Plan includes a review in 2009. At that time, it will be necessary for the review to include consideration of a change in maximum indebtedness in order to carry out addi- tional tax increment financing projects within the plan area. Chapter 8 sets out more details about the financial feasibility of the Renewal Plan, along with projected revenues and expenditures through FY09-10. The timing and amounts for individual project activities will be determined by the Urban Renewal Agency each year during the annual budget process. An advisory committee with citizen participation will provide advice on improvements to the district and the expenditure of funds. Completion dates for individual activities may be affected by changes in local economic and market conditions, changes in the availability of tax increment funds, and changes in priorities for carrying out project activities. 15 TABLE 5 FY04-05 FY05-06 FY06-07 FY07-08 FY08-09 FY09-10 Total FOURTH AMENDMENT TO PLAN RESOURCES Property Taxes 3,780,000 3,980,000 4,250,000 4,600,000 5,040,000 5,590,000 27,240,000 Principal & Interest on Loans 100,434 - - - 100,434 Land & Building Rental .... Interest on Investments 100, 000 38, 000 32, 000 32, 000 35, 000 32, 000 269, 000 Miscellaneous Revenues 365, 500 500 500 500 500 500 368, 000 Beginning Working Capital 4,850,215 2,553,888 2,589,263 2,576,888 2,832,388 2,579,388 4,850,215 TOTAL RESOURCES 9;196.149 6,572.388 6,871;763 7.209.38~8 __7,907.888 8r. 201.888 32,827.649 REQUIREMENTS Library Bonds Principal & Interest 2,345,000 2,353,125 2,356,875 2,380,000 2,372,500 2,408, 750 4,216,250 Public Improvements 350,000 1,000,000 150,000 200,000 250,000 5,000,000 6,950,000 Acquisitions 750, 000 - - 2, 250, 000 - 3, 000, 000 Redevelopment Loans 1,000, 000 - - - 1,000, 000 Development & Redevelopment Assistance 1,500,000 350,000 1,500,000 1,500,000 150,000 425,000 5,425,000 Administration 271,964 280, 000 288,000 297, 000 306, 000 315, 000 1,757,964 Property Disposition ..... Rehab & Conservation Loans 425, 297 - - - 425, 297 Rehab & Conservation Grants ..... 4,297,261 1,630,000 1,938,000 1,997,000 2,956,000 5,740,000 18,558,261 Debt Service Reserve Other Reserve 2, 500, 000 2, 500, 000 2, 500, 000 2, 500, 000 2, 500, 000 - - Balance A va#able 16, 038 42, 263 28, 888 282, 388 28, 388 138 138 37,850 47, 000 48, 000 50, 000 51,000 53, 000 53,000 TOTAL REQUIREMENTS 9.196.149 6,572.388 6r. 871.763 7,209~.388 7.907.88~8 8~201~.888 32;827.649 Remaining Maximum Indebtedness at Year End 15,358,036 11,853,036 7,940,036 3,843,036 (1,312,964) (9,402,964) 15 Chapter 8: Financial Analysis of the Plan with Sufficient Information to Determine Feasibility. The financial analysis of the plan shown in Table 5 includes the anticipated tax increment revenues and the indebtedness capacity of those revenues. The analysis shows that the anticipated tax increment revenues are based on reasonable projections of new develop- ment and appreciation in existing property values, and that the projected tax increment revenues are exceed the amount of maximum indebtedness that can be incurred under the Renewal Plan between now and FY09-10. The projection of tax increment revenues is based on the following assumptions: · Existing property assessed values will increase by 3% per year. · New development will add assessed value of $2 million each year. · For the most part, tax rates for the overlapping jurisdictions are projected to remain constant. Exceptions are: the special levy for the Downtown Urban Renewal District will expire in FY09-10; and the Youth & Schools Activities Local Option Levy will expire in FY07-08. The projections result in total resources between FY04-05 and FY09-10 of just under $33 million. These revenues will support the $33 million of existing maximum indebtedness adopted on June 1998, as well as other expenditures in the plan. The expenditures under the Renewal Plan were based on the following assumptions: · Project activities are distributed throughout the Renewal Plan period based on available funds. The timing of individual projects will vary depending on a variety of factors, as explained in Chapter 7 of this report. · Administrative activities, including an allocation of central service overhead costs, will increase due to inflation of 3% per year. · The Urban Renewal Agency will continue to carry a reserve equal to the annual debt service on the library 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. 16 Chapter 9: Fiscal Impact Statement That Estimates the Impact of the Tax Increment Financing, Both Until and After The Indebtedness is Repaid, Upon All Entities Levying Taxes Upon Property in the Urban Renewal Area. Taxing bodies that overlap with the Urban Renewal Agency are affected by the use of tax increment funds to implement the Renewal Plan. When a district is first created, the assessed value within the boundaries is established as the "frozen base". In theory, if urban renewal efforts are successful, the value of the district will grow above the base. That increase is called the "incremental value" or "excess value". Property taxes from the overlapping jurisdictions (schools, general governments, bonds) are then divided between the jurisdictions that continue to receive taxes on the frozen base, and the urban renewal agency that receives taxes on the incremental value. Urban renewal does not directly affect an individual school system's budget because schools are funded by the state on a per-pupil basis. On a state-wide basis, if there are less tax revenues going to schools because of urban renewal districts, then the state provides more general funds to make up the per-pupil funding for all the schools. For other taxing jurisdictions, the share of property taxes from the "excess value" or "incremental value" is not collected by the overlapping jurisdictions during the period of an active district. Urban renewal nominally affects voter-approved local option levies and bonds because the affected district has less property value to levy taxes against, resulting in slightly higher tax rates. The incentive for the overlapping districts to support urban renewal is higher property tax revenues in the long run. When the district is ended, the overlapping taxing districts are able to tax the entire value within the district. Under the theory of urban renewal, this value is higher than it would have been if there had been no district in effect. The estimated amount of urban renewal taxes to be divided over the term of the Renewal Plan (net of discounts, delinquents, etc.) is shown in the following chart. Only the perm- anent tax rates of the overlapping jurisdictions are considered in this analysis because local option levies and bonded debt tax rates will vary from year to year, and may not con- tinue throughout the term of the Renewal Plan. As can be seen, in FY04-05, it is estimat- ed that the City of Eugene would forego about $830,000 of revenue because of the Central Eugene Project Urban Renewal District. In FY29, when the district is terminated, the City of Eugene is estimated to receive $1.9 million of additional tax revenue. Lane County is estimated to forego $150,000 of revenue in the first fiscal year, and to benefit by $340,000 of additional tax revenue when the district is terminated in FY29. The combined school districts are estimated to forego $660,000 of revenue in the first fiscal year, and to benefit by $1.5 million of additional tax revenue when the district is terminated in FY29. As men- tioned above, however, the impact on schools is really an impact on the state's budget because schools are mainly funded on a per-pupil funding formula rather than by the level of property tax dollars generated within their boundaries. 17 Because the Central Eugene P/an took steps to be "grandfathered' under the provisions of IWeasure 50, the district is allowed to levy a higher amount of taxes than would otherwise be allowed for the existing life of the district. The base amount allowed to be levied is the "division of tax" levy, which is equal to the incremental property value in the district times the overlapping tax rate for al/jurisdictions (City, County, schools, bonds). In addition, the "grandfather~' provision allows the Central Eugene Project to levy a "special levy" in order to protect the level of property tax collections after implementation of the provisions of I~easure 50. In FY04, the special levy tax rate was $0.2014/$1000 of A V and the "division of tax" levy is $0.2471, for a total of $0.4485/$1000 of AV for the Central Eugene Project. When the current district termination date is reached in FYIO, the district will no longer qualify for the special levy and taxes will go down for Eugene taxpayers. Table 6, on the following pages, provides details of the impact of carrying out the Fourth Amendment to the Plan. 18 TABLE 6 (Part 1) FY04-05 FY05.06 FY06-07 FY07-08 FY08-09 FY09.10 FYIO.11 FYI1-12 FY~2-13 Revenue Impact on Overlapping Jurisdictions School District 4J 560,000 590,000 620,000 650,000 690,000 720,000 740,000 770,000 790,000 Lane Community College 70,000 80,000 80,000 90,000 90,000 90,000 100,000 100,000 100,000 Lane Education Service District 30,000 30,000 30,000 30, 000 30, 000 30,000 30, 000 40, 000 40, 000 City of Eugene 830,000 870,000 920,000 970,000 1,010,000 1,060,000 1,100,000 1,130,000 1,160,000 Lane County 150,000 160,000 170,000 180,000 190,000 190,000 200,000 210,000 210,000 Permanent Tax Rates School District 4J 4.7485 4.7485 4.7485 4.7485 4.7485 4. 7485 4.7485 4.7485 4.7485 Lane Community College 0.6191 0.6191 0.6191 0.6191 0.6191 0.6191 0.6191 0.6191 0.6191 Lane Education Service District 0.2232 0.2232 0.2232 O. 2232 O. 2232 O. 2232 0.2232 O. 2232 0.2232 City of Eugene 7. 0058 7. 0058 7. 0058 7. 0058 7. 0058 7. 0058 7. 0058 7. 0058 7. 0058 Lane County 1.2793 1.2793 1.2793 1.2793 1.2793 1.2793 1.2793 1.2793 1.2793 Incremental Value in the Downtown UR District 127,420,000 134,180,000 141,150,000 148,320,000 155,720,000 163,330,000 168,230,000 173,280,000 178,480,000 Property Tax Collection Rate 93% 93% 93% 93% 93% 93% 93% 93% 93% 19 Table 6 (Part 2) I=Y13-14 FY14-15 FY~5-16 F'Y16.~I7 FY17.18 FY~8.19 F'Y19.20 FY20.21 FY21-22 Revenue Impact on Overlapping Jurisdictions School District 4J 810,000 840,000 860,000 890,000 910,000 940,000 970,000 1,000,000 1,030,000 Lane Community College 110,000 110,000 110,000 120,000 120,000 120,000 130,000 130,000 130,000 Lane Education Service District 40,000 40,000 40,000 40,000 40, 000 40, 000 50,000 50, 000 50,000 City of Eugene 1,200,000 1,230,000 1,270,000 1,310,000 1,350,000 1,390,000 1,430,000 1,470,000 1,520,000 Lane County 220,000 230,000 230,000 240,000 250,000 250,000 260,000 270,000 280,000 Permanent Tax Rates School District 4J 4.7485 4.7485 4. 7485 4.7485 4.7485 4.7485 4.7485 4.7485 4.7485 Lane Community College 0.6191 0.6191 0.6191 0.6191 0.6191 0.6191 0.6191 0.6191 0.6191 Lane Education Service District O. 2232 O. 2232 O. 2232 O. 2232 O. 2232 O. 2232 O. 2232 O. 2232 O. 2232 City of Eugene 7. 0058 7. 0058 7. 0058 7. 0058 7. 0058 7. 0058 7. 0058 7. 0058 7. 0058 Lane County 1.2793 1.2793 1.2793 1.2793 1.2793 1.2793 1.2793 1.2793 1.2793 Incremental Value in the Downtown UR District 183,830,000 189,340,000 195,020,000 200,870,000 206,900,000 213,110,000 219,500,000 226,090,000 232,870,000 Property Tax Collection Rate 93% 93% 93% 93% 93% 93% 93% 93% 93% 2O Table 6 (Part 3) FY22-23 FY'23-24 FY24-25 FY25-26 FY26-27 FY27-28 FY'28-29 Revenue Impact on Overlapping Jurisdictions School District 4J 1,060,000 1,090,000 1,120,000 1,160,000 1,190,000 1,230,000 1,260,000 Lane Community College 140,000 140,000 150,000 150,000 160,000 160,000 160,000 Lane Education Service District 50, 000 50, 000 50, 000 50, 000 60, 000 60, 000 60, 000 City of Eugene 1,560,000 1,610,000 1,660,000 1,710,000 1,760,000 1,810,000 1,870,000 Lane County 290,000 290,000 300,000 310,000 320,000 330,000 340,000 Permanent Tax Rates School District 4J 4.7485 4.7485 4.7485 4. 7485 4.7485 4.7485 4.7485 Lane Community College 0.6191 0.6191 0.6191 0.6191 0.6191 0.6191 0.6191 Lane Education Service District 0.2232 0.2232 0.2232 O. 2232 O. 2232 O. 2232 O. 2232 City of Eugene 7. 0058 7. 0058 7. 0058 7. 0058 7. 0058 7. 0058 7. 0058 Lane County 1.2793 1.2793 1.2793 1.2793 1.2793 1.2793 1.2793 Incremental Value in the Downtown UR District 239,860,000 247,060,000 254,470,000 262,100,000 269,960,000 278,060,000 286,400,000 Property Tax Collection Rate 93% 93% 93% 93% 93% 93% 93% 21 Chapter 910: Relocation Report A. Requirement An analysis of the existing residences of businesses required to relocate permanently or temporarily as a result of Agency actions under ORS 457.170. Response The plan provides for the acquisition and/or property. However, no specific occupied residence, business, or any other occupied properties are proposed for acquisition. Although, depending on how the Central Eugene Project is developed, certain transportation scenarios may require business and/or resident relocation. B. Requirement A description of the methods to be used for the temporary or permanent relocation of persons living in and businesses situated in, the Urban Renewal Area in accordance with ORS 281.045 through 281.105. Response No specific relocation activity is anticipated in the plan. However, relocation activities and assistance would be provided in accordance with ORS 281.045 through 281.105. C. Requirement An enumeration, by cost range, of the existing housing units in the plan area to be destroyed or altered and new units to be added. Response No specific existing housing units are proposed to be removed by actions of this plan. However, voluntary housing rehabilitation programs have been provided by proposing a rehabilitation loan fund, where and if and when funds are available, housing owners may, at their option, avail themselves of below- market rehabilitation loans. Such loans may be made directly by the Renewal Agency or by local financial institutions which participate in loan programs involving the joint participation of the Agency and local financial institutions. - 22 - D. Requirement A description of new residential units which are likely to be constructed within the urban renewal area. Response Some new residential units are expected to be constructed within the plan area. The development site at 11th and Willamette Street is expected to contain residential housing units. Chapter ~.011' Appendices Exhibit A: Urban Renewal Boundary Exhibit B: Zoning District Map Exhibit C: Projected Margin of Change in Property Tax Rates Exhibit D: Urban Renewal Site Development Design Guidelines Exhibit E: Program Activities from Prior Version of Plan Report Exhibit F: Income and Expenditure Analysis from Prior Version of Plan Report - 23 - Exhibit A - Area Boundary Central Eugene (Downtown)Urban Renewal Boundary 8th Avenue loth Avenue - loth Av~ue llth Avenue - 24 - Exhibit B- Zoning Map Central Eugene (Downtown) Urban Renewal Boundary 6th Avenu~ 6th Avenue 7thAvenue- ~ ~ 8th Avenue 8th Avenue ~ ~~ loth Avenue I llth Avenue - 25 - Exhibit C - Projected Margin of Change in Tax Rate Projected Margin of Change in Property Tax Rates (original report on the plan) Existing Renewal District Only Year 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Fiscal Year 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 City of Eugene 0.21 0.21 0.25 0.29 0.31 0.31 0.32 0.32 0.33 0.33 0.34 0.34 0.35 0.36 0.36 0.37 0.37 0.38 0.38 0.39 4-U School Dist 0.32 0.32 0.37 0.43 0.47 0.47 0.48 0.49 0.50 0.50 0.51 0,52 0.52 0.54 0.55 0.56 0.56 0.57 0,58 0.59 LCC 0.02 0.02 0.02 0.02 0.02 0.02 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0,03 0.03 County 0.01 0.01 0.01 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 Metro WW 0.01 0.01 0.01 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 ESD High 0.00 0.00 0.00 0.00 0.00 0.00 0,00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 ESD Elem 0.00 0.00 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0,58 0.58 0.68 0.79 0.85 0.86 0.87 0.89 0.90 0.91 0.92 0.94 0.95 0.98 1.00 1,01 1.02 1.04 1,05 1.06 Assumptions Renewal Distdct Valuation Growth Rate, years 1 - 3: 0% Renewal Distdct Valuation Growth Rate, years 4 - 20: 1% Other Districts Valuation Growth Rate, years 1 - 20: 3% Tax Base Growth Rate: 6% New Construction Rate: See DRAFT ESTIMATE INCOME & EXPENDITUE ANALYSIS ASSUMPTIONS - 26 - Exhibit D - Prior Program Activities Program Activities from Prior Version of Plan Report The following program activities are provided for in the plan and are more fully described below. Costs are estimated in 1989 dollars. The projects are not prioritized. The costs are predesign estimates and represent the high range of the projected cost. The primary funding sources are tax increment cash flow and tax increment bonding. FY90 is considered to be year one. Parking Facility Loans · Parking Facility, 8th and Willamette. Construction of a parking facility in conjunction with the development of the parcel at 8th and Willamette. Estimated Tax Increment contribution, $5,000,000 in year one. · Parkinq Facility, 11th and Willamette. Loan for construction of a parking facility as part of the development at 11th and Willamette. Estimated loan $1,000,000 in year one. Public Space Improvements · Public Riqht-of-Way Redesiqn. Redesign of Willamette Street between 8th and 10th, Olive between 8th and 10th, and Broadway between Willamette and Oak in accordance with the Mall Improvement Design Concepts, and to relate to future development along the street. Estimated cost, $2,100,000 in year two and three. · Existinq Plaza Redesiqn and Downtown Mall Restroom Development. Redesign of the plaza at the Broadway and Willamette intersection in accordance with the Mall Improvement Design Concepts. Development of new handicapped accessible public restrooms within the mall area. Estimated cost, $350,000 in year three. · Various Downtown Sidewalk/Fronta.qe Improvements, Site Preparation. Improve streets, street frontages, alleys, sidewalks, benches, lights, landscaping, signing for the handicapped, etc. in areas within Renewal District concurrent with site development. Estimated cost, $700,000 in years one and two. · Various Downtown Sidewalk/Fronta.qe Improvement.~. Improve street frontages, alleys, sidewalks, benches, lights, landscaping, signing for the handicapped, etc. in areas within or directly benefiting Renewal District. Estimated cost, $350,000 in various years. - 27 - · Various Undesiqnated Capital Proiects. Reserve for various undesignated capital projects in future years. Estimated cost, $3,600,000 in years nine through twenty. Development · Various Undesiqnated Capital Proiects. A reserve to be available for various undesignated capital projects in future years dependent on development and budget availability. Would provide financing contributions for projects which could include, but not limited to, transportation facilities, parking facilities, library, etc. Estimated reserve set aside $15,000,000 to $25,000,000 in years three through twenty. · Awnings/Raincover, Facades, and Tool Kit Loans. Grant and/or loan funds to be used to encourage businesses abutting public areas within the Renewal District to improve the existing pedestrian raincover system and building facades, to leverage private investment and development in the downtown. Estimated cost, $800,000 in various years. · Building Rehabilitation/Reuse Loans. Loans used to repair, rehabilitate, make improvements and encourage reuse of existing buildings. Estimated cost, $550,000 in years one and four. - 28 - Exhibit F - Prior Income and Expenditure Income and Expenditure Analysis from Prior Version of Plan Report ,,~.~ ~,,..~,Hv .~l.,~.,v~,,,, ''~"' ~ ~ ~''*'~'"'~'~"' ~"~" ~'~'~'~ '~""3' ,~..,~..,~,,k..~.~., ,,, ~,,..~l~,,.~.., ~. , ,, Estimated Income and Expenditure Analysis Revenues (thousands) Expenditures (thousands) Summary Bonds Admin Annual and and Balance Fiscal Tax Other Public Loan Debt Tech Carried Year Year Incrmt Int Funds Imprv Pr%lrams Svc Svc Forward 1 89/90 1,783 287 7,000 6,350 1,400 1,599 375 4,386 2 90/91 1,822 386 1,000 1,350 400 1,595 390 3,859 3 91/92 2,213 344 4,250 5,700 200 2,414 406 1,947 4 92/93 2,666 35 0 0 125 2,463 422 1,639 5 93/94 2,974 191 0 0 50 2,468 439 1,847 6 94/95 3,126 166 2,250 0 2,300 2,733 456 1,899 7 95/96 3,171 183 0 0 50 2,723 474 2,005 8 96/97 3,217 187 0 0 25 2,961 474 1,948 9 97/98 3,263 195 0 0 25 2,957 474 1,949 10 98/99 3,309 191 0 0 25 2,960 474 1,990 11 99/00 3,356 197 0 0 0 2,958 427 2,154 12 00/01 3,403 207 1,750 1,750 0 3,233 384 2,148 13 01/02 3,451 207 0 0 0 3,014 346 2,447 14 02/03 3,570 231 0 0 0 2,743 311 3,192 15 03/04 3,620 290 6,250 0 6,250 3,237 280 3,585 16 04/05 3,670 322 0 0 0 3,237 252 4,088 17 05/06 3,720 362 0 0 0 3,237 227 4,707 18 06/07 3,771 412 2,750 0 2,750 4,066 204 4,620 19 07/08 3,823 405 0 0 0 4,066 184 4,598 20 08/09 3,875 403 0 0 0 4,066 165 4,645 SUBTOTAL 63,803 5,198 25,250 15,150 13,600 58,730 7,164 TOTAL 94,251 94,644 - 29 - ATTACHMENT E Eugene Renewal District Projects that were impacted by Downtown Urban Renewal Funding (Note: Urban Renewal Funding in the 1960 's and 1970 's included substantial federal grants: $2. O0 in federal dollars for every $1. O0 local match.) Land Consolidation · Purchased, cleared, and assembled land for resale and construction of approximately 35 new buildings in the downtown. Public improvements · Awning Program (over the public space) · Lighting Improvements · Outside Art Program · Park Blocks rehabilitation · Paving alleys · Pedestrian mall and Plaza at Broadway and Willamette construction · Purchased Sears Building · Redesign of Broadway/Willamette plaza · Reopening Willamette and Olive streets · Repaved Oak, Pearl, Charnelton, 10th Ave., 8th Ave. and portions of other streets within the district. · Upgraded and undergrounded utilities and wiring, and separated the storm and sanitary sewers (relined the whole downtown sanitary sewer system grid). New construction, · Aster Building (Three older buildings rehabilitated and incorporated into the new building.) · Atrium Building (replaced a parking lo0 · Broadway Place (replaced parking lots) · Citizens Building (replaced a largeparking lot and also a two story building that housed a beauty shop, a savings and loan, and a gallery) · Hilton Hotel and Eugene Conference Center (replaced a countyparking lot, the county motor pool and service station, and a former chicken packing plant) · Hult Center (provided the land for a $1) (replaced one and two story buildings that included the Hampton Building, Heilig Theater, Salvation Army, used car lot, auto body shop, machine shop and an outdoor store. -photo #1.) · Library (formerly housed the Sears Auto Store) · LTD Station (assembled property) (formerly included a Dodge dealer, Butch's shoes, the Walling Building, and a collection of small storefronts) · Overpark Garage (was not funded with urban renewal funds, but it's value was used as a match to obtain substantial federal dollars. -- photo #2) · Parcade Garage (former site of one and two story buildings that housed a donut shop, a bookstore, and Foo 's Restaurant -- photo #3 and · Pearl Street Garage (formerly was a parking lo0 · Salstrom Building 100 E. Broadway, Broadway and Oak (previously housed a two story building that included a green stamp redemption center-- Photo (45) · South Park Building 101 E. Broadway, Broadway and Oak (former site of a two story building that had some housing upstairs and a photo shop downstairs. --photo #6) · US Bank Building (formerly housed the Bangs Hotel, and some one story buildings that included Lucky's Tavern and a barbershop. Rehabilitation · Bon Building Loan · Building Fagade Loan Program · Downtown Athletic Club (partially new construction) · Inspected all buildings in the district for structural and code compliance · Loans to rehabilitate approximately 29 existing buildings, including Center Court, Washburn Building, Rubenstein's, Tiffany Building and Smeede Hotel · McDonald Theater Building FaCade and Marquee · Shafer Building All photos circa 1968 Photo 1 - Some former buildings at the site of current Hult Center Photo 2 - Former buildings at site of Overpark Garage Photo 3 - Former buildings at site ofParcade - View from Willamette Street, 7th to 8th Picture 4 - Rear of buildings a the current Parcade site, Willamette 7th to 8th Picture 5 - Former building at 100 E. Broadway Picture 6- Former building at 101 E. Broadway Picture 7 - Former building where Ambrosia Restaurant now stands Picture #8 at Willamette lookin east Picture #9 - South side 8th Avenue between Olive and Chamelton, current site of Azumano/Away Travel ATTACHMENT F Urban Renewal Q&A 1. What is urban renewal? Currently, urban renewal in the State of Oregon typically refers to "tax increment financing" that is used to eliminate blighted conditions. When the Downtown urban. Renewal District was created in 1968 the term was broader and also referred to substantial federal grants to renew deteriorated cities by removing blight. An urban renewal district can be created by a city or county to initiate improvement projects. The basic idea behind urban renewal is simple: future tax revenues pay for revitalization efforts within the district. When created, urban renewal areas must show evidence of some degree of blight, which is demonstrated by conditions such as poorly constructed buildings, faulty planning, lack of open spaces, deteriorated properties, an incompatible mix of uses, or improper utilization of land. Projects are designed to remedy the poor conditions within the district. 2. What is "division of tax" and how does it work? "Division of tax" is a way to determine the amount of funding'that an urban renewal district will receive. When a district is first created, the assessed value within the district boundaries is established as the "frozen base". In theory, if urban renewal efforts are sucCessful, the value of the district will grow above the base amount. That increase is called the "incremental value" or "excess value". Property taxes from the overlapping jurisdictions (schools, general gove. rnments, bonds) are then divided between the jurisdictions that continue to receive taxes on the frozen base, and the urban renewal agency that receives taxes on the incremental value. The "division of tax" method of funding projects results .in the urban renewal agency receiving significantly more funding than the City would receive ir~ i.ts general fund in taxes from district property. In this way, the agency is able to complete more projects than the City would have been able to complete during the same time period. 3. What is the urban renewal "special levy"? When Measure 50 passed in 1997, existing urban renewal districts were given the opportunity to "grandfather" in the property tax levels needed to complete projects existing at that time. In Eugene, the City Council chose to grandfather the Downtown District so that it would continue to receive a higher level of property taxes in order to fund the library project. This special levy should come off the tax bill by FY11 (after the current district termination date of 12/9/09). ' 4. Who pays urban renewal taxes? Are the taxes different for taxpayers inside the district versus outside the district? The tax bills for Eugene taxpayers in the 2003 tax year included three lines for urban renewal. All taxpayers in the City paid these taxes. There is no differenCe between the taxes paid by taxpayers inside the district and outside the district. The three tax lines are: (1) "City of Eugene Special Levy" which is the special levy for the library project in the Downtown DistriCt'; (2) Eugene Urban Renewal Downtown, which is the division of tax funding for the Downtown District; and (3) Eugene Urban Renewal Riverfront, which is the division of tax funding for the Riverfront District. 5. What is the Downtown Urban Renewal District tax for an average home? Would the tax bill be lower if the district were eliminated? According to the Tax Assessor, the average home in Eugene in FY04 had an assessed value of $154,200. That average home would pay two urban renewal taxes for the Downtown District: $31 for the special levy for the library, and $38 for the Downtown District "division of tax" levy. This $69 for the Downtown Urban Renewal District taxes represents about 2.4% of the total tax bill for an average taxpayer. If the Downtown Urban Renewal District were eliminated, properties in Eugene would pay slightly less in taxes. The tax bill would go down by the amount of the special levy for the downtown district. That levy is currently being used to repay debt issued for the library. It would also go down slightly for lowered local option levy and bonded debt tax rates. The remaining property tax dollars would be redirected to the overlapping taxing districts. 6. How much property tax funding does the Downtown Urban Renewal District receive? In FY04, the Downtown District is expected to receive $3.6'million in property taxes, of which $1.9 million is from the "division of tax" portion and $1.7 million is from the special levy for the library. 7. How does the Downtown Urban Renewa1 District affect the other taxing jurisdictions, such as the schools, the County and the City?. The overlapping jurisdictions are kept whole when a district is created through the division of taxes calculation explained above. The overlapping districts retain the taxes on the value of property within the district at its creation. Urban renewal generally does not affect an individual school 'system's operating budget because schools are funded by the state on a per-pupil basis. On a state-wide, basis, if there are less property tax revenues going to schools because of urban renewal districts, then the state,has to provide more general fund dollars to make up the per-pupil funding requirement for all the Schools. If a district has a local option levy, however, that levy revenue will be reduced as a result of urban renewal incremental value. For other taxing jurisdictions, the share of property taxes f~r0m the "excess value" or "incremental value" is not collected by the overlapping jurisdictions during the.period of an active district. Urban renewal nominally affects voter-approved local option levies and bonds because the affected district has less property value to levy taxes against, resulting in slightly high'er tax rates. The incentive for the overlapping districts to support urban renewal is higher property tax revenues in the long run. Ultimately when the district is ended, the overlapping taxing districts are able to tax the entire value within the district. Under the theory of urban renewal, this value is higher than it would have been if there had been no district in effect. The estimated amount of urban renewal taxes to be divided for the Downtown District in FY04-05 (net of discounts, delinquents, etc.) is shown in the following chart. Only the permanent tax rates of the overlapping jurisdictions are considered in this analysis.. As can be seen, in FY04-05, it is estimated that the City of Eugene would forego about $830,000 of revenue because of the Downtown Urban Renewal District. Lane County is estimated to forego $150,000 and the combined school districts are estimated to forego $660,000 of revenue. FY04-05 Revenue Impact on Overlapping Jurisdictions School District 4J 560,000 Lane Community College 70,000 Lane Education Service District 30,000 City of Eugene 830,000 Lane County 150,000 Permanent Tax Rates School District 4J 4.7485 Lane Community College 0.6191 Lane Education Service District 0.2232 City of Eugene 7.0058 Lane County 1.2793 Incremental Value in the Downtown UR Distr. ict 127,420,000 Property Tax Collection Rate 93% EUGENE CITY COUNCIL AGENDA ITEM SUMMARY Action: Applications for Three Low-Income Housing Tax Exemptions Resolution 4803 Approving a Low-Income Rental Housing Property Tax Exemption for Property Located at 2640-2694 Edgewood Drive, Eugene, Oregon (TL 17-04-12-33- 0600). (Metropolitan Affordable Housing Corporation - Green Leaf Village Development); Resolution 4804 Approving a Low-Income Rental Housing Property Tax Exemption for a Portion of the Property Located at 150 Santa Clara Avenue (TL 17-04-11-43-00800). (St. Vincent de Paul Society of Lane County); and Resolution 4805 Denying Approval of a Low-Income Rental Housing Property Tax Exemption for Property Located at March Chase Drive and Kinsrow, Eugene, Oregon (17-03-28-40-1406). (Public Private Parmerships Inc.) Meeting Date: August 9, 2004 Agenda Item Number: 4 Department: Planning and Development Staff Contact: Richie Weinman www. ci. eugene, or. us Contact Telephone Number: 682-5533 AGENDA ITEM SUMMARY City Council is asked to consider three resolutions related to low-income housing tax exemptions. Each resolution grants a twenty-year property tax exemption for a particular very-low-income housing project. BACKGROUND Council Action History The council has a history of supporting low-income housing tax exemptions and has approved virtually every request to date from either non-profit or for-profit developers. Policy Issues Since 1987, one of the City Council's annual goals has related to increasing the availability of low- income housing. A recent City Council goal of"Sustainable Community Development" refers to retaining a high quality of life. A prerequisite is affordable housing. For low-income households, this often requires subsidies. Support for low-income housing also is found in the City's Growth Management Goals and the adopted Housing and Urban Development (HUD) Consolidated Plan. This support recognizes the relationship between housing affordability and the community's economic vitality and social well-being. A key element in creating affordable housing is an exemption from property taxes. The twenty-year low-income housing tax exemption is available, in part, due to the City of Eugene's lobbying effort at L:\CMOk2004 Council AgendaskM040809kS0408094.doc the State Legislature. A property tax exemption plays a very significant role in reducing rents. In the past, the City has documented the monthly savings as a result of the exemption ranging from $89.00 per month to $178.00 per month at different developments. This makes a significant difference in the budget for a low-income household. Financial and/or Resource Considerations The City and other local taxing districts forgo revenue when property is exempted from taxes. Each of these projects represents new construction on previously undeveloped property. Therefore, the immediate loss of revenue is minimal. Other Background Information The following is a summary of the three projects requesting assistance: A. Apple Orchard Village 40 units, primarily for families with children 2640-2694 Edgewood Drive Metropolitan Affordable Housing Corporation B. Santa Clara Plaza 60 units, primarily for families with children 150 Santa Clara Avenue St. Vincent dePaul C. Willamette Gardens Apartments 240 units for households of various sizes 433 West 8th Avenue Public Private Partnerships (P3) Since 1992, the City has approved twelve low-income housing tax exemptions. Two are for-profit developments and ten are non-profit developments. These include: · Mary Skinner Apartments, 41 units (St. Vincent dePauO · Hope Loop, 10 units (St. Vincent dePauO · Mac McDonald, 24 units (St. Vincent dePauO · [Voodleaf 60 units (Metropolitan Affordable Housing) · 1080 Clark Street, 40 units (Dennis Meili) · 2256-2264 Roosevelt, 24 units (Charles Shepard) · South Hilyard Terrace, 22 units (St. Vincent dePauO · OakwoodManor, 72 units (St. Vincent dePauO · Greenleaf Village, 34 units (Metropolitan Affordable Housing) · Oakleaf Village, 14 units (Metropolitan Affordable Housing) · Aurora Building, 54 units (St. Vincent DePau0 · Mainstream Apartments, 10 units (Mainstream Housing) Projects developed by the Lane County Housing Authority and Community Services Agency (HACSA) receive an automatic tax exemption under a different State statute. This tax exemption levels the playing field between the non-profit and public sector housing providers. To date, City Council has granted all applications for exemptions. L:\CMOk2004 Council AgendaskM040809\S0408094.doc Timing The tax exemption will apply to the tax year that begins on July 1, 2005. The council is asked to approve these now in order to meet tax assessor guidelines. OPTIONS The council may approve or deny any of the tax exemption requests. Based on Housing Policy Board recommendations, staff recommends approval of the resolutions in Attachment A, B, and C. Should the council wish to approve the exemption for P3's project, Attachment D is a resolution for approval. STAFF RECOMMENDATION The Housing Policy Board reviewed each of these proposals and supports two of them (Metro and St. Vincent DePaul). The proposal submitted by P3 was not supported because it both violates the Housing Dispersal Policy and has rents that are nearly market rate. The rationale is included in Attachment E. Staff supports the Housing Policy Board recommendations and this is reflected in the Planning and Development Director's report. SUGGESTED MOTION Move to approve Resolution 4803 approving a low-income rental housing property tax exemption for property located at 2640-2694 Edgewood Drive, Eugene, Oregon (TL 17-04-12-33-0600). (Metropolitan Affordable Housing Corporation - Green Leaf Village Development.) Move to approve Resolution 4804 approving a low-income rental housing property tax exemption for a portion of the property located at 150 Santa Clara Avenue (TL 17-04-11-43-00800). (St. Vincent de Paul Society of Lane County) Move to approve Resolution 4805 denying approval of a low-income rental housing property tax exemption for property located at March Chase Drive and Kinsrow, Eugene, Oregon (17-03-28-40- 1406). (Public Private Partnerships Inc.) ATTACHMENTS A. Proposed Resolution (Metropolitan Affordable Housing Corporation - Green Leaf Village Development.) B. Proposed Resolution (St. Vincent de Paul Society of Lane County) C. Proposed Resolution (denial) (Public Private Partnerships Inc.) D. Proposed Resolution (Public Private Partnerships Inc.) E. Reports from Planning and Development Director (three reports) F. Memo from John VanLandingham, Chair of Housing Policy Board G. Application submitted by St. Vincent DePaul H. Application submitted by Metropolitan Affordable Housing Corporation I. Application submitted by Public Private Partnerships L:\CMOX2004 Council Agendas~M040809\S0408094.doc FOR MORE INFORMATION Staff Contact: Richie Weinman Telephone: 682-5533 Staff E-Mail: richie.d.weinman~ci.eugene.or.us L:\CMO~2004 Council AgendashM040809XS0408094.doc ATTACHMENT A RESOLUTION NO. A RESOLUTION APPROVING A LOW-INCOME RENTAL HOUSING PROPERTY TAX EXEMPTION FOR THE PROPERTY LOCATED AT 150 SANTA CLARA AVENUE, EUGENE, OREGON (TAX LOT 17-04-11-43-00800). (ST. VINCENT de PAUL SOCIETY OF LANE COUNTY). The City Council of the City of Eugene finds that: A. The St. Vincent de Paul Society of Lane County (705 S. Seneca Road, Eugene, Oregon 97402) is the owner of real property located at 150 Santa Clara Avenue, Eugene, Oregon (Tax Lot 17- 04-11-43-00800), and more particularly described on Exhibit "A" attached hereto and incorporated herein by reference, and has submitted an application pursuant to Subsection 2.939(2) of the Eugene Code, 1971 for an exemption from ad valorem taxes under the City's Low-Income Rental Housing Property Tax Exemption Program (Sections 2.937 to 2.940 of the Eugene Code, 1971). B. The Director of the Planning and Development Department, as designee of the City Manager has submitted a Report and Recommendation to the Council that the application be approved and the exemption granted. In making that recommendation, the Director found that the applicant submitted all materials, documents and fees required by the application and the City, including, if applicable: documentation that the housing units on the property were or will be constructed after February 12, 1990, documentation that the required rent payment will reflect the full value of the property tax exemption; documentation that the property is offered for rental solely as a residence for low-income persons; that the applicant is in compliance with the policies set forth in the Standards and Guidelines adopted by Resolution No. 4623 of the City Council, applicable local plans, planning regulations, and the Metro Plan; and has executed the required Consent to Inspection of Premises and the Rent Regulatory Agreement, which agreement contains a provision requiring certification of income levels of low-income occupants; and is otherwise in compliance with the criteria for approval as set forth in Subsection 2.939(2) of the Eugene Code, 1971; all as set forth in the Director's Report and Recommendation. C. The project consists of the development of sixty low-income rental housing units (19 one-bedroom, 22 two-bedroom, and 19 three-bedroom units). All of the property will be used for the purpose of providing low-income rental housing. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF EUGENE, a Municipal Corporation of the State of Oregon, as follows: Section 1. Based upon the above findings, which are adopted herein, and the City Council's review of the Report and Recommendation of the Director of the Planning and Development Department, the City Council hereby approves the application of St. Vincent de Paul Society of Lane County for an ad valorem property tax exemption under the City's Low-Income Rental Housing Property Tax Exemption Program for the property located at 150 Santa Clara Avenue, Eugene, Oregon (Tax Lot 17-04-11-43-00800), as more particularly described on Exhibit "A" attached hereto and incorporated herein by reference, subject to the following condition: Upon completion of construction, the project shall consist of 60 low-income rental housing units (19 one-bedroom, 22 two-bedroom, and 19 three-bedroom units), and all of the property shall be used for the purpose of providing low-income rental housing. Section 2. That the land and the improvements constructed thereon as described in Section 1 above are hereby declared exempt from local ad valorem property taxation commencing July 1, 2005 and continuing for a continuous period of twenty (20) years unless earlier terminated in accordance with the provisions of Section 2.940 of the Eugene Code, 1971, which provide for termination after an opportunity to be heard if: 2.1 Construction or development of the exempt property differs from the construction or development described in the application for exemption, or was not completed by January 1, 2010, and no extensions or exceptions were granted; or 2.2 The property owner fails to comply with provisions of ORS 307.515 to 307.523, provisions of the Eugene Code, 1971, the Standards and Guidelines adopted by Council Resolution No. 4623, or any conditions imposed in this Resolution; and immediate termination, without right of notice or appeal, pursuant to the provisions of ORS 307.531 in the event: 2.3 The exempt property is being held for future development of low income rental housing and it is used for any purpose other than the provision of low income rental housing; or 2.4 The county assessor determines that a change of use to other than that allowed has occurred for the housing unit, or portion thereof, or, if after the date of this approval, a declaration as defined in ORS 100.005 is presented to the county assessor or tax collector for approval under ORS 100.110. Section 3. The City Manager, or the Manager's designee, is requested to forward a copy of this Resolution to the applicant, and to the other taxing districts affected hereby, within ten days from the date hereof, and to cause a copy of this Resolution to be filed with the Lane County Assessor on or before April 1, 2005. Section 4. This Resolution shall become effective immediately upon its adoption. The foregoing Resolution adopted and effective the __ day of__., 2004. City Recorder Exhibit A ATTACHMENT B RESOLUTION NO. A RESOLUTION APPROVING A LOW-INCOME RENTAL HOUSING PROPERTY TAX EXEMPTION FOR THE PROPERTY LOCATED AT 2640 - 2694 EDGEWOOD DRIVE, EUGENE, OREGON (TAX LOT 17-04-12-33-00600) (APPLE ORCHARD VILLAGE, LIMITED PARTNERSHIP/METROPOLITAN AFFORDABLE HOUSING CORPORATION, GENERAL PARTNER). The City Council of the City of Eugene finds that: A. Apple Orchard Village, Limited Partnership/Metropolitan Affordable Housing Corporation, General Partner (1430 Pearl Street, Eugene, Oregon 97401)is the owner of real property located at 2640 - 2694 Edgewood Drive, Eugene, Oregon (Tax Lot 17-04-12-33- 00600), and more particularly described on Exhibit "A" attached hereto and incorporated herein by reference, and has submitted an application pursuant to Subsection 2.939(2) of the Eugene Code, 1971 for an exemption from ad valorem taxes under the City's Low-Income Rental Housing Property Tax Exemption Program (Sections 2.937 to 2.940 of the Eugene Code, 1971). B. The Director of the Planning and Development Department, as designee of the City Manager, has submitted a Report and Recommendation to the Council that the application be approved and the exemption granted. In making that recommendation, the Director found that the applicant submitted all materials, documents and fees required by the application and the City, including, if applicable: documentation that the housing units on the property were or will be constructed after February 12, 1990, documentation that the required rent payment will reflect the full value of the property tax exemption; documentation that the property is offered for rental solely as residences for Iow-income persons; that the applicant is in compliance with the policies set forth in the Standards and Guidelines adopted by Resolution No. 4623 of the City Council, applicable local plans, planning regulations, and the Metro Plan; and has executed the required Consent to Inspection of Premises and the Rent Regulatory Agreement, which agreement contains a provision requiring certification of income levels of Iow-income occupants; and is otherwise in compliance with the criteria for approval as set forth in Subsection 2.939(2) of the Eugene Code, 1971; all as set forth in the Director's Report and Recommendation. C. The project consists of the development of 40 Iow-income rental housing units (8 studio, 8 one-bedroom and 24 two-bedroom units). All of the property will be used for the purpose of providing Iow-income rental housing. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF EUGENE, a Municipal Corporation of the State of Oregon, as follows: Section 1. Based upon the above findings, which are adopted herein, and the City Council's review of the Report and Recommendation of the Director of the Planning and Development Department, the City Council hereby approves the application of Apple Orchard Village, Limited Partnership/Metropolitan Affordable Housing Corporation, General Partner for an ad valorem property tax exemption under the City's Low- Income Rental Housing Property Tax Exemption Program for the property located at 2640 - 2694 Edgewood Drive, Eugene, Oregon (Tax Lot 17-04-12-33-00600), as more particularly described on Exhibit "A" attached hereto and incorporated herein by reference, subject to the following condition: The project shall consist of 40 Iow-income rental housing units (8 studio, 8 one- bedroom, and 24 two-bedroom units)and all of the property shall be used for the purpose of providing Iow-income rental housing. Section 2. That the land and the improvements constructed thereon as described in Section 1 above are hereby declared exempt from local ad valorem property taxation commencing July 1, 2005 and continuing for a continuous period of twenty (20) years unless earlier terminated in accordance with the provisions of Section 2.940 of the Eugene Code, 1971, which provide for termination after an opportunity to be heard if: 2.1 Construction or development of the exempt property differs from the construction or development described in the application for exemption, or was not completed by January 1,2010, and no extensions or exceptions were granted; or 2.2 The property owner fails to comply with provisions of ORS 307.515 to 307.523, provisions of the Eugene Code, 1971, the Standards and Guidelines adopted by Council Resolution No. 4623, or any conditions imposed in this Resolution; and immediate termination, without right of notice or appeal, pursuant to the provisions of ORS 307.531 in the event: 2.3 The exempt property is being held for future development of Iow-income rental housing and it is used for any purpose other than the provision of Iow-income rental housing; or 2.4 The county assessor determines that a change of use to other than that allowed has occurred for the housing unit, or portion thereof, or, if after the date of this approval, a declaration as defined in ORS 100.005 is presented to the county assessor or tax collector for approval under ORS 100.110. Section 3. The City Manager, or the Manager's designee, is requested to forward a copy of this Resolution to the applicant, and to the other taxing districts affected hereby, within ten days from the date hereof, and to cause a copy of this Resolution to be filed with the Lane County Assessor on or before April 1,2005. Section 4. This Resolution shall become effective immediately upon its adoption. The foregoing Resolution adopted and effective the day of ,2004. City Recorder Exhibit A ATTACHMENT C RESOLUTION NO. A RESOLUTION DENYING A LOW-INCOME RENTAL HOUSING PROPERTY TAX EXEMPTION FOR THE PROPERTY LOCATED AT MARCHE CHASE DRIVE AND KINSROW AVENUE, EUGENE, OREGON (TAX LOT 17-03-28-40-1406). (PUBLIC PRIVATE PARTNERSHIPS, INC.). The City Council of the City of Eugene finds that: A. Public Private Partnerships, Inc. (4800 SW Macadam, Suite 309, Portland, Oregon 97239) is the owner of real property located at Marche Chase Drive and Kinsrow Avenue, Eugene, Oregon (Tax Lot 17-03-28-40-1406), and more particularly described on Exhibit "A" attached hereto and incorporated herein by reference, and has submitted an application pursuant to Subsection 2.939(2) of the Eugene Code, 1971 for an exemption from ad valorem taxes under the City's Low-Income Rental Housing Property Tax Exemption Program (Sections 2.937 to 2.940 of the Eugene Code, 1971). B. The project, as proposed, will consist of 240 units of low-income rental housing units (60 one-bedroom, 84 two-bedroom, and 96 three-bedroom units) and all of the property will be used for the purpose of providing low-income rental housing. C. The Director of the Planning and Development Department, as designee of the City Manager, has submitted a Report and Recommendation to the Council that the application be disapproved and the exemption denied. In making that recommendation, the Director found that although the applicant submitted all materials, documents and fees required by the application and the City, and that the project is otherwise in compliance with applicable local plans, planning regulations, the Metro Plan, and the criteria for approval as set forth in Subsection 2.939(2) of the Eugene Code, 1971, the project is not in compliance with all of the policies set forth in the Standards and Guidelines adopted by Resolution No. 4623 of the City Council because the project is inconsistent with Policy 2 of the City of Eugene's Housing Dispersal Policy which recommends housing developments of no more than 60 units. D. The intergovernmental Housing Policy Board, an advisory committee comprised of elected officials and appointed volunteers, also reviewed the application and unanimously recommended denial based upon the project's noncompliance with Policy 2 of the Housing Dispersal Policy and because the proposed rent levels are very close to market-rate. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF EUGENE, a Municipal Corporation of the State of Oregon, as follows: Section 1. Based upon the above findings, which are adopted herein, and the City Council's review of the Report and Recommendation of the Director of the Planning and Development Department, the City Council hereby denies the application of Public Private Partnerships for an ad valorem property tax exemption under the City's Low-Income Rental Housing Property Tax Exemption Program for the property located at Marche Chase Drive and Kinsrow Avenue, Eugene, Oregon (Tax Lot 17-03-28-40-1406), as more particularly described on Exhibit "A" attached hereto and incorporated herein by reference. Section 2. The applicant has the right to appeal the denial of its application in the manner set forth in ORS 34.010 to 34.100. Section 3. The City Manager, or the Manager's designee, is requested to forward a copy of this Resolution to the applicant within ten days from the date hereof. Section 4. This Resolution shall become effective immediately upon its adoption. The foregoing Resolution adopted and effective the day of ,2004. City Recorder Exhibit A ATTACHMENT D RESOLUTION NO. A RESOLUTION APPROVING A LOW-INCOME RENTAL HOUSING PROPERTY TAX EXEMPTION FOR THE PROPERTY LOCATED AT MARCHE CHASE DRIVE AND KINSROW AVENUE, EUGENE, OREGON (TAX LOT 17-03-28-40-1406). (PUBLIC PRIVATE PARTNERSHIPS, INC.). The City Council of the City of Eugene finds that: A. Public Private Partnerships, Inc. (4800 SW Macadam, Suite 309, Portland, Oregon 97239) is the owner of real property located at Marche Chase Drive and Kinsrow Avenue, Eugene, Oregon (Tax Lot 17-03-28-40-1406), and more particularly described on Exhibit "A" attached hereto and incorporated herein by reference, and has submitted an application pursuant to Subsection 2.939(2) of the Eugene Code, 1971 for an exemption from ad valorem taxes under the City's Low-Income Rental Housing Property Tax Exemption Program (Sections 2.937 to 2.940 of the Eugene Code, 1971). B. The project, as proposed, will consist of 240 units of low-income rental housing units (60 one-bedroom, 84 two-bedroom, and 96 three-bedroom units) and all of the property will be used for the purpose of providing low-income rental housing. C. The Director of the Planning and Development Department, as designee of the City Manager, has submitted a Report and Recommendation to the Council that the application be disapproved and the exemption denied. In making that recommendation, the Director found that although the applicant submitted all materials, documents and fees required by the application and the City, and that the project is otherwise in compliance with applicable local plans, planning regulations, the Metro Plan, and the criteria for approval as set forth in Subsection 2.939(2) of the Eugene Code, 1971, the project is not in compliance with all of the policies set forth in the Standards and Guidelines adopted by Resolution No. 4623 of the City Council because the project is inconsistent with Policy 2 of the City of Eugene's Housing Dispersal Policy which recommends housing developments of no more than 60 units. D. The intergovernmental Housing Policy Board, an advisory committee comprised of elected officials and appointed volunteers, also reviewed the application and unanimously recommended denial based upon the project's noncompliance with Policy 2 of the Housing Dispersal Policy and because the proposed rent levels are very close to market-rate. E. The City of Eugene's Housing Dispersal Policy, which was adopted by Council Resolution 4477 on January 4, 1996, is aspirational, rather than prescriptive, and discourages subsidized housing developments of more than 60 units. However, the City Council may balance the policy against other City concerns and policies, such as the need for additional low-income rental housing units. F. In reviewing the Director's findings, the Report and Recommendation, and the Housing Dispersal Policy, the City Council finds that the need for additional low-income rental housing units warrants exceeding the Housing Dispersal Policy's 60-unit limitation; that the project is otherwise in conformance with applicable local plans, planning regulations, the Metro Plan, the criteria for approval as set forth in Subsection 2.939(2) of the Eugene Code, 1971, and the policies set forth in the Standards and Guidelines adopted by Resolution No. 4623 of the City Council; and that the applicant has submitted all materials, documents and fees required by the application and the City, including, but not limited to: documentation that the housing units on the property will be constructed after February 12, 1990, documentation that the required rent payment will reflect the full value of the property tax exemption, documentation that the property is offered for rental solely as a residence for low-income persons, and documentation that the applicant has previously executed the required Consent to Inspection of Premises and the Rent Regulatory Agreement, which agreement contains a provision requiring certification of income levels of low-income occupants. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF EUGENE, a Municipal Corporation of the State of Oregon, as follows: Section 1. Based upon the above findings, which are adopted herein, and the City Council's review of the Report and Recommendation of the Director of the Planning and Development Department, the City Council hereby approves the application of Public Private Partnerships, Inc. for an ad valorem property tax exemption under the City's Low-income Rental Housing Property Tax Exemption Program for the property located at Marche Chase Drive and Kinsrow Avenue, Eugene, Oregon (Tax Lot 17-03-28-40-1406), as more particularly described on Exhibit "A" attached hereto and incorporated herein by reference, subject to the following condition: Upon completion of construction, the project shall consist of 240 low-income rental housing units (60 one-bedroom, 84 two-bedroom, and 96 three-bedroom units), and all of the property shall be used for the purpose of providing low-income rental housing. Section 2. That the land and the improvements constructed thereon as described in Section 1 above are hereby declared exempt from local ad valorem property taxation commencing July 1, 2005 and continuing for a continuous period of twenty (20) years unless earlier terminated in accordance with the provisions of Section 2.940 of the Eugene Code, 1971, which provide for termination after an opportunity to be heard if: 2.1 Construction or development of the exempt property differs from the construction or development described in the application for exemption, or was not completed by January 1, 2010, and no extensions or exceptions were granted; or 2.2 The property owner fails to comply with provisions of ORS 307.515 to 307.523, provisions of the Eugene Code, 1971, the Standards and Guidelines adopted by Council Resolution No. 4623, or any conditions imposed in this Resolution; and immediate termination, without right of notice or appeal, pursuant to the provisions of ORS 307.531 in the event: 2.3 The exempt property is being held for future development of low income rental housing and it is used for any purpose other than the provision of low income rental housing; or 2.4 The county assessor determines that a change of use to other than that allowed has occurred for the housing unit, or portion thereof, or, if after the date of this approval, a declaration as defined in ORS 100.005 is presented to the county assessor or tax collector for approval under ORS 100.110. Section 3. The City Manager, or the Manager's designee, is requested to forward a copy of this Resolution to the applicant, and to the other taxing districts affected hereby, within ten days from the date hereof, and to cause a copy of this Resolution to be filed with the Lane County Assessor on or before April 1, 2005. Section 4. This Resolution shall become effective immediately upon its adoption. The foregoing Resolution adopted and effective the ~ day of ,2004. City Recorder Exhibit A ATTACHMENT E Eugene Renewal District Projects that were impacted by Downtown Urban Renewal Funding (Note: Urban Renewal Funding in the 1960 's and 1970 's included substantial federal grants': $2. O0 in federal dollars'for every Si. O0 local match.) Land Consolidation · Purchased, cleared, and assembled land for resale and construction of approximately 35 new buildings in the downtown. Public improvements · Awning Program (over the public space) · Lighting Improvements · Outside Art Program · Park Blocks rehabilitation · Paving alleys · Pedestrian mall and Plaza at Broadway and Willamette construction · Purchased Sears Building · Redesign of Broadway/Willamette plaza · Reopening Willamette and Olive streets · Repaved Oak, Pearl, Charnelton, 10th Ave., 8th Ave. and portions of other streets within the district. · Upgraded and undergrounded utilities and wiring, and separated the storm and sanitary sewers (relined the whole downtown sanitary sewer system grid). New construction, · Aster Building (Three older buildings rehabilitated and incorporated into the new building.) · Atrium Building (replaced aparking 1o0 · Broadway Place (replaced parking lots) · Citizens Building (replaced a large parking lot and also a two story building that housed a beauty shop, a savings and loan, and a gallery) · Hilton Hotel and Eugene Conference Center (replaced a county parking lot, the county motor pool and service station, and a former chicken packing plant) · Hult Center (provided the land for a $1) (replaced one and two story buildings that included the Hampton Building, Heilig Theater, Salvation Army, used car lot, auto body shop, machine shop and an outdoor store, photo ~1.) · Library (formerly housed the Sears Auto Store) · LTD Station (assembled property) (formerly included a Dodge dealer, Butch's shoes, the Walling Building, and a collection of small store fronts) · Overpark Garage (was not funded with urban renewal funds, but it's value was used as a match to obtain substantial federal dollars'. --photo ~ 2 ) · Parcade Garage (former site of one and two story buildings that housed a donut shop, a bookstore, and Foo ' s Restaurant --photo ~ 3 and ~4) · Pearl Street Garage (formerly was aparking 1o0 L:\CMO\2004 Council Agcndas\M040809\S0408093.doc · Salstrom Building 100 E. Broadway, Broadway and Oak (previously housed a two story building that included a green stamp redemption center-- Photo ~ 5 ) · South Park Building 101 E. Broadway, Broadway and Oak (former site ora two story building that had some housing upstairs and a photo ,'hop downstairs. --photo ~ 6) · US Bank Building (formerly housed the Bangs Hotel, and some one story buildings that included Lucky's Tavern and a barbershop. Rehabilitation · Bon Building Loan · Building FaCade Loan Program · Downtown Athletic Club (partially new construction) · Inspected all buildings in the district for structural and code compliance · Loans to rehabilitate approximately 29 existing buildings, including Center Court, Washburn Building, Rubenstein' s, Tiffany Building and Smeede Hotel · McDonald Theater Building FaCade and Marquee · Shafer Building All photos circa 1968 Photo 1 - Some former buildings at the site of current Hult Center L:\CMO\2004 Council Agendas\M040809\S0408093.doc Photo 2 - Former buildings at site of Overpark Garage Photo 3 - Former buildings at site ofParcade - View from Willamette Street, 7th to 8th L:\CMO\2004 Council Agendas\M040809\S0408093.doc Picture 4 - Rear of buildings a the current Parcade site, Willamette 7th to 8th Picture 5 - Former building at 100 E. Broadway L:\CMO\2004 Council Agendas\M040809\S0408093.doc Picture 6 - Former building at 101 E. Broadway Picture 7 - Former building where Ambrosia Restaurant now stands L:\CMO\2004 Council Agendas\M040809\S0408093.doc Picture #8 - Broadway at Willamette - looking east Picture #9 - South side 8th Avenue between Olive and Charnelton, current site of Azumano/Away Travel L:\CMO\2004 Council Agendas\M040809\S0408093.doc ATTACHMENT F Urban Renewal Q&A 1. What is urban renewal? Currently, urban renewal in the State of Oregon typically refers to "tax increment financing" that is used to eliminate blighted conditions. When the Downtown Urban Renewal District was created in 1968 the term was broader and also referred to substantial federal grants to renew deteriorated cities by removing blight. An urban renewal district can be created by a city or county to initiate improvement projects. The basic idea behind urban renewal is simple: future tax revenues pay for revitalization efforts within the district. When created, urban renewal areas must show evidence of some degree of blight, which is demonstrated by conditions such as poorly constructed buildings, faulty planning, lack of open spaces, deteriorated properties, an incompatible mix of uses, or improper utilization of land. Projects are designed to remedy the poor conditions within the district. 2. What is "division of tax" and how does it work? "Division of tax" is a way to determine the amount of funding that an urban renewal district will receive. When a district is first created, the assessed value within the district boundaries is established as the "frozen base". In theory, if urban renewal efforts are successful, the value of the district will grow above the base amount. That increase is called the "incremental value" or "excess value". Property taxes from the overlapping jurisdictions (schools, general governments, bonds) are then divided between the jurisdictions that continue to receive taxes on the frozen base, and the urban renewal agency that receives taxes on the incremental value. The "division of tax" method of funding projects results in the urban renewal agency receiving significantly more funding than the City would receive in its general fund in taxes from district property. In this way, the agency is able to complete more projects than the City would have been able to complete during the same time period. 3. What is the urban renewal "special levy"? When Measure 50 passed in 1997, existing urban renewal districts were given the opportunity to "grandfather" in the property tax levels needed to complete projects existing at that time. In Eugene, the City Council chose to grandfather the Downtown District so that it would continue to receive a higher level of property taxes in order to fund the library project. This special levy should come off the tax bill by FY11 (after the current district termination date of 12/9/09). 4. Who pays urban renewal taxes? Are the taxes different for taxpayers inside the district versus outside the district? The tax bills for Eugene taxpayers in the 2003 tax year included three lines for urban renewal. All taxpayers in the City paid these taxes. There is no difference between the taxes paid by taxpayers inside the district and outside the district. The three tax lines are: (1) "City of Eugene Special Levy" which is L:\CMO\2004 Council Agendas\M040809\S0408093.doc the special levy for the library project in the Downtown District; (2) Eugene Urban Renewal Downtown, which is the division of tax funding for the Downtown District; and (3) Eugene Urban Renewal Riverfront, which is the division of tax funding for the Riverfront District. 5. What is the Downtown Urban Renewal District tax for an average home? Would the tax bill be lower if the district were eliminated? According to the Tax Assessor, the average home in Eugene in FY04 had an assessed value of $154,200. That average home would pay two urban renewal taxes for the Downtown District: $31 for the special levy for the library, and $38 for the Downtown District "division of tax" levy. This $69 for the Downtown Urban Renewal District taxes represents about 2.4% of the total tax bill for an average taxpayer. If the Downtown Urban Renewal District were eliminated, properties in Eugene would pay slightly less in taxes. The tax bill would go down by the amount of the special levy for the downtown district. That levy is currently being used to repay debt issued for the library. It would also go down slightly for lowered local option levy and bonded debt tax rates. The remaining property tax dollars would be redirected to the overlapping taxing districts. 6. How much property tax funding does the Downtown Urban Renewal District receive? In FY04, the Downtown District is expected to receive $3.6 million in property taxes, of which $1.9 million is from the "division of tax" portion and $1.7 million is from the special levy for the library. 7. How does the Downtown Urban Renewal District affect the other taxing jurisdictions, such as the schools, the County and the City? The overlapping jurisdictions are kept whole when a district is created through the division of taxes calculation explained above. The overlapping districts retain the taxes on the value of property within the district at its creation. Urban renewal generally does not affect an individual school system's operating budget because schools are funded by the state on a per-pupil basis. On a state-wide basis, if there are less property tax revenues going to schools because of urban renewal districts, then the state has to provide more general fund dollars to make up the per-pupil funding requirement for all the schools. If a district has a local option levy, however, that levy revenue will be reduced as a result of urban renewal incremental value. For other taxing jurisdictions, the share of property taxes from the "excess value" or "incremental value" is not collected by the overlapping jurisdictions during the period of an active district. Urban renewal nominally affects voter-approved local option levies and bonds because the affected district has less property value to levy taxes against, resulting in slightly higher tax rates. The incentive for the overlapping districts to support urban renewal is higher property tax revenues in the long run. Ultimately when the district is ended, the overlapping taxing districts are able to tax the entire value within the district. Under the theory of urban renewal, this value is higher than it would have been if there had been no district in effect. L:\CMO\2004 Council Agendas\M040809\S0408093.doc The estimated amount of urban renewal taxes to be divided for the Downtown District in FY04-05 (net of discounts, delinquents, etc.) is shown in the following chart. Only the permanent tax rates of the overlapping jurisdictions are considered in this analysis. As can be seen, in FY04-05, it is estimated that the City of Eugene would forego about $830,000 of revenue because of the Downtown Urban Renewal District. Lane County is estimated to forego $150,000 and the combined school districts are estimated to forego $660,000 of revenue. FY04-05 Revenue Impact on Overlapping Jurisdictions School District 4J 560,000 Lane Community College 70,000 Lane Education Service District 30,000 City of Eugene 830,000 Lane County 150,000 Permanent Tax Rates School District 4J 4.7485 Lane Community College 0.6191 Lane Education Service District 0.2232 City of Eugene 7.0058 Lane County 1.2793 Incremental Value in the Downtown UR District 127,420,000 Property Tax Collection Rate 93% L:\CMO\2004 Council Agendas\M040809\S0408093.doc