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02/11/1988 - Packet rrr� v„IW AGENDA CITY CENTER PLAN TASK FORCE THURSDAY, FEBRUARY 11, 1988, 7:00 - 9:30 P.M. CIVIC CENTER - TOWN HALL CONFERENCE ROOM 13125 SW HALL BLVD. , TIGARD, OR 1. CALL TO ORDER 2. ROLL CALL: ASH COHEN DEFERDING JUAREZ MARR MONAHAN MORLEY 3. APPROVE MINUTES 4. INTRODUCTION OF NEW MEMBERS 5. RE-EVALUATION OF CRITICAL PATH: GROUP DISCUSSION 6. TRANSPORTATION CONSULTANT: ROBERTS 7. FINANCIAL CONSULTANT 8. WORKSHOP UPDATE: ROBERTS 9. OTHER BUSINESS 10. ADJOURNMENT CITY CENTER PLAN TASK FORCE Thursday, January 21, 1988 t The meeting was called to order by Stuart at 7:00 p.m. Present: Pam Juarez, Stuart Cohen, Mike Mann Absent: Chris Deferding, Jolynn Auh Also Present: Peggy, Bill Monahan Staff: Duane Roberts, Liz Newton, Wayne Lowry, and Bob Jean Bob Jean reviewed his understanding of what the committee had asked him to cover. These included two topics: 1 . Options available for financing downtown improvements . 2. The time line and review checkpoints . Bob said that he needs Stuart to inform him if the committee is going to miss any deadlines leading up to a September election date. Bob expressed some concern regarding the committee's burnout level . Bob also said that: we should look at our time as a valuable resource and let him know if there is ever anything he can provide to help us be more productive. He then went on to discuss the various financial options at some length. ht/3139D 1 vim+ February 3, 1988 CITY OF TI17A RD Mr. Bob Jean OREGON Tigard City Administrator Box 23397 Tigard, OR 97223 Dear Mr. Jean: The Tigard Downtown Plan Steering Committee cordially invites you to join them in a Saturday morning workshop dealing with the future of downtown Tigard. Through small group discussions, workshop participants will have opportunities to share their opinions and ideas. The workshop will be conducted by consultants from Hobson and Associates, Cogan Sharp Cogan, and Yost Grube Hall, who were hired by the City to perform a market study of the downtown area. A memorandum reporting on the workshop results and clarifying goals and directions for the study will be sent to all workshop participants. Using the vision statement (enclosed) developed by the committee, the consultants have identified the following topics for discussion: 1. Opportunities and obstacles to the revitalization and economic strengthening of downtown. 2. Specific types of stores or non-retail uses that are needed and would prosper in the downtown; liveability features to be maintained and enhanced. 3. Implementation measures that will aid in realizing these opportunities and enhancing liveability. A total of only thirty community leaders have been invited, so your participation is important. A member of the committee will be giving you a call in a few days to see whether you will be able to attend and to answer any questions you may have. PLACE: Beaverton Library Community Meeting Room, corner of Hall and Allen DATE: Saturday, February 20 TIME: 9:00 a.m. to 12:30 p.m. Sincerely, R. Michael Marr, Vice Chairman City Center Plan Task Force ht/2990D Encl. 13125 SW Hall Blvd.,P.O.Box 23397,Tigard,Oregon 97223 (503)639-4171 Tigard Water District G� Attn: Bob Santee 8841 SW Commercial Tigard, OR 97223 Mr. Santee Donald & Shirley Hanson PO Box 12 Vic? Wemme, OR 97067 Mr. & Mrs . Hanson U.S. National Bank Attn: Vern Zeuska, Branch Mgr c 12160 SW Main Ji _ 6 / Tigard, OR 97223 Mr, Zeuska Doug Martell Doug' s Big "A" Auto Parts �� _ -72— 12175 SW Main St Tigard, OR 97223 Mr. Martell Floyd Aylor +-L1-zttrze-..- po #/ / Lj 73 c? _ 2— J Jrh rL-3 o v SW-"ft'1 R-' T4gavJ,_QR-9q2-24 Mr. Aylor Tigard Arco and Car Wash ,)sem„r. ,; 12475 SW Main C> y —7 7,)_-Y Tigard, OR 97223 Owner qty--s—Re-safe 972-n--owner Carol Weaver Tigard Senior Center (0 z 8815 SW O'Mara St Tigard, OR 97223 Ms . Weaver Rev. Rob Blakely Tigard Christian Church J ,577 IJ 13405 SW Hall Blvd Tigard, OR 97223 Rev. Blakely Marty Welch A.- 9535 SW Lehman Tigard, OR 97223 Mr. Welch Joe Schweitz 11020 SW Cottonwood Ln Tigard, OR 97223 Mr. Schweitz John Savory � )} 12245 SW Main < 'Tigard, OR 97223 Mr. Savory Pam Juarez c/o Washington Federal S/L Bank PO Box 2.3367 Tigard, OR 97223 Ms , Juarez Peggy Weston Byrd 12420 SW Main St Tigard, OR 97223 Ms. Byrd Dave Cohen 14275 SW 125th Tigard, OR 97223 Mr, Cohen Jolynn Ash 11175 SW Novare Ct 'Tigard, OR 972.2.3 Ms . Ash Chris Deffer•ding 1145 SW Summer Tigard, OR 9722.3 Mr. Defferding R. Michael Marr 14445 SW 87th Ct Tigard, OR 97224 Mr. Marr Donald H. Pinkerton 15355 SW Alder-brook Cir J Tigard, OR 97224 Mr. Pinkerton Donald Moen 11395 SW Ironwood Loop Tigard, OR 97223 Mr. Moen G j i — / Z / K, Dr, Daniel Graham 10180 SW River-wood LaneTigard, OR OR 9722.4 Dr. Graham Tom Brian 7630 SW Fir St Z > Tigard, OR 97223 Mr. Brian Gerald R Edwards 3 j 10390 SW Meadow Tigard, OR 97223 Mr. Edwards Valerie Johnson 122.65 SW Walnut Tigard, OR 97223 Ms . Johnson Carolyn Eadon 11825 SW Wildwood Ct Tigard, OR 9722.4 Ms. Eadon John Schwartz 15900 SW 76th Tigard, OR 9722.4 Mr. Schwartz Emmett Whitaker 13250 SW Burnham Ct Tigard, OR 97223 Mr. Whitaker, 2- 7 J- — /C} K 7 Dave Leger, Vice President The Stash Tea Co 2. 7 3�% 7 PO Box 9107 Portland, OR 972.07 Mr. Leger Mr. Bob Jean Tigard City Administrator Box 2.3397 Tigard, OR 97223 Mr. Jean Jeffrey Farber Seafirst International Bank/ Z -2— _ u C? -Z. Portland Branch 101 SW Main Ste 1600 Portland, OR 97204 Mr. Farber Russ Jelke 13137 SW Pacific Hwy 6 Z �' 7 6 12"-0; Tigard, OR 97223 Mr. Jelke Floyd Bergman 12725 SW Pacific Hwy 6 3 I _' 7 `, 3 4y Tigard, OR 972.2.3 Mr. Bergman Mr. Bob Gray 11445 SW Tiedeman Rd Tigard, OR 972.2.3 Mr. Gray Jack Schwab 9250 SW Tigard St Tigard, OR 9722.3_ RED 1/26/88 CITY CENTER PLAN STEERING COMMITTEE FEBRUARY/APRIL MEETING SCHEDULE Thursday February 11 6:30 PM - 9:00 PM Regular Meeting Saturday February 20 9:30 AM - 12:30 PM Consultant Workshop Tuesday February 23 6:30 PM - 9:00 PM Regular Meeting Saturday February 27 8:30 AM - 5:00 Pr Fanno Creek Workshop Tuesday March 8 6:30 PM - 9:00 PM Regular Meeting Thursday March 17 6:30 PM - 9:00 PM Regular Meeting Thursday March 31 6:30 PM - 9:00 PM Consultant's Memorandum Report Thursday April 14 6:30 PM - 9:00 PM Consultant's Draft Report Monday April 25 5:30 PM - .7:30 PM Consultant's (tentative) presentation to Task Force and City Council residents ePlanners, e y Tigardcore changes By BRIAN WHITE N DOWNTOWN TIGARD, you're wash—dominate the core street. It's not F more apt to find parts for your car surprising that on a typical weekday there than new clothes. are few pedestrians. The six-block-long stretch of Main Tigard planners and residents would Street that forms the heart of downtown like to change that. Tigard is easy to overlook. It sits in non- City officials and a citizens"task force 7. descript fashion on the south side of the in this community of roughly 22,000 want U.S. Highway 99W viaduct. Traffic bar- to find out once and for all if Tigard's rels noisily across the viaduct, whizzing downtown can re-establish an identity and past the downtown without a pause. Nu- re-emerge as a vital economic contributor merous stores serving automobiles—muf- to the city. M- Mmi I I I fler shops, auto parts stores, tire stores, A recently hired consulting firm, Hob- Parts ojdowntown Tigard retain a rural look despite new nearby development in the past 20years. gas stations, an auto glass shop and a car son&Associates, Portland, is expected to emnwhne complete a market study of the core area later this year. The study is expected to provide information on what's needed to attract retail businesses downtown. Re- sults of the study will help determine whether it's feasible to proceed with a plan to revitalize the shopworn down- We're The mitcheff Nelson Group. town Long list of challenges There's no shortage of challenges ahead. Among questions that need to be We're Teufel Commercial Lmdscr-1whe. answered are: • Whether the downtown can exist as a We're v our Desism/Buield ,rleiam. retail center that can attract people, de- spite the existence of numerous shopping J centers and large malls such as Washing- ton Square, which last year became a part of the City of Tigard through annexation. We're your Already, an Albertson's supermarket downtown has announced plans to move Design/Build Team. out of the core area to a new shopping Together we offer you a center south of downtown. Earlier, a Tek- one-stop source for Iand- tronix Inc. electronics assembly ware- 'r scape design,construction house that employed more than 60 people ..� � and maintenance. near the downtown closed doors. gi • Whether the confusing access to the 3 Design/Build is for the downtown can beim roved. t¢ developer who wants the • Whether unsightly gaps in the core 1` most for his money and a area can be filled with new businesses. project completed on time • Whether zone changes will be needed and On budget with max- within the central businesss district,which imum efficiency. already has a mix of commercial,industri- al and residential zones. Design/Build. A concept • Whether Fanno Creek Park to the that guarantees you the south can be worked into a downtown ultimate in landscape plan that will attract more foot traffic. We're The _ We're 7ieufel creation, while allowing "In many respects Tigard is a very rural Mitchell Nelson Commercial flexibility and change community," said Mike Marr, a Plan Committee. After an early spurt self-em- GrOup. Landscape. along the way. ployed accountant who's on the City Cen- terH'or nearly 30 years we've We started planting almost been creatinginnovative 100 years ago and we're Design/Build brings out of development in the early 1900s trig- been g the best in people and gered by electric commuter trains linked solutions and award- still growing. Way we are brings forth the best in with Portland, the community settled into winning designs for the a leader in the Pacific a fairly quiet existence.Even 30 years ago, corporate real estate and Northwest landscape in- your project. the town was a separate entity, existing development community dustry with nurseries and Call Jeff Kahl to find out apart from Porthan land s a co mu nits inf both here and abroad. construction facilities in how Design/Build can little oreted tuntil 1961. But suburban de- Oregon and Washington. work for you. Heil show corpvelopment came quickly, surrounding the de- you how t0 make your town before planners could decide how money look greener. the city core could be shaped into the de- (503) 646-1111. velopment. To this day,some streets near the center of town are unpaved, with no sidewalks. And, according to the city's Teufel Commercial Landscape ex planning department, street in the cen- tral business district except Main Street Oregon Washington meets minimum city right-of-way and 12345 N.W. Barnes Road 666134th Street S.W. pavement/curbing standards. Portland, Oregon 97219. Everett,Washington 98204 In need of a plan (503) 646-1111 (206) 7434444 "A number of streets haven't seen change in many years.The city hasn't kept The Mitchell Nelson Grouppace with the development," said Marr. "Over the years we weren't able to get a Oregon Washington (downtown) plan laid out. There have 71 S.W.Oak Street 2033 6th Avenue.Suite 1013 been a number of people who've tried,but Portland,Oregon 97204 Seattle, Washington 98121 we're just now starting to play the game. (503) 225-0822 (206) 441-6644 We need a plan, and we need to identify >• what the citizens of Tigard want the Continued on next page Paee 8 FOCUS:Commercial Real Estate January 25,1988 $40,190,000 Pacific Investment Properties thanks the many individuals and businesses who helped to make 1987 successful. Our 1987 transactions included: •Cedar Hills Ivy Club Apartments(OR)—172 units ■Pacific Village Apartments(OR)-243 units ■Vista Cornell Apartments(OR)-46 units ■Oak Square Apartments(OR)-22 units ■Pearson's Mobile Estates(OR)-56 spaces • ■Strathmore House Apartments(OR)—138 units ■Highland Terrace Apartments(OR)—112 units ■Millbrook Apartments(OR)-43 units Tigard residents want their downtown to have a greater identity,planners say. IN Riviera Apartments(TX)-100 units Bdan WhRe ■The Grand Building(OR)—8,972 square feet ■The Burnett-Mitchell Building(OR)—80,930 square feet ■West Haven Mobile Home Park(WA)—244 spaces Downtown Ti and ■Suzanne Marie Apartments(OR)—49 units l g ■Quaker Street Apartments(OR)—58 units ■Hansard Manor Apartments(OR)—47 units Continued from preceding page in-depth interviews with downtown busi- •Westowne rtaza Shopping Center(OR)-10,475 square feet downtown to be." nesspeople and studied existing businesses IN McKenzie West Shopping Center(OR)-52,809 square feet On Jan. 18, the Tigard City Council and transportation patterns. The students ■Cambridge Towers Apartments(NV)-303 units voted to hire Hobson&Associates to pro- recently shared their views, along with ceed with a $25,000 market study of the maps showing possible plans, at a break- Mike Safley,Broker■Mike Van,Associate Broker■Steve Whyte,Agent core area. The Portland firm was chosen fast that drew 70 interested businesspeople . . from among 14 applicants. The study and other local citizens. "The breakfast Pacific Investment Properties marks the city's biggest effort to date to generated some enthusiasm," Newton An investment real estate brokerage, get a complete look at the downtown from said. "The local businesspeople are enthu- licensed in Oregon and Washington. a retail marketing point of view. siastic that something might be happen- ing.They asked for a market study earlier, 777 Benj.Franklin Plaza but the money wasn't available." One Southwest Columbia Street The market study is The study is expected to give officials a Portland,Oregon 97258 expected to provide clearer idea about downtown shopping (503) 224-6338 clearer ideas about patterns. Duane Roberts, administrative shopping patterns planner for the city's planning dbpart- . ment, said the downtown appears to have downtown. a shotgun shopping pattern. Individual businesses such as a shoe repair store,dry cleaning company ' Elizabeth Newton, senior planner for 8 p Y, and the wealth of the city's Community Development De- auto-related businesses have regular cus- tomers. "People o downtown for s e partment,thinks the citizens of Tigard arep g (downtown) p - �_ _. •€ . interested in proceeding with a downtown cific reasons,"Roberts said. plan. This wasn't the case several years "We're not attempting to compete With ago, when residents turned down a fund- Washington Square, but are looking forUWLIMCE ing plan that would have fueled a newly something that could complement those created urban renewal agency. And de- stores," added Pam Juarez, another taskMU. spite the fact that as many as 75 percent of force member who is with the Tigard Tigard's residents commute out of the city branch of Washington Federal Savings LUCILLE NOEL to work, many want to see the city retain Bank. some degreeof individuality and charac- Options for change WASWOM •` ter,Newton said. Already, Tigard planners have pored "It's important that the city center has over many plans of what might be.Includ- some kind of identity for its citizens," ed are plans to renovate existing buildings 00 000 0001 Newton said. "The goal is to make down- (there are only three downtown structures town self-supporting as a tax base. We're listed as historic in Washington Coun- ' ' approaching 25,000 people." The city is ty's cultural resource inventory), improve expected to continue its steady growth in Fanno Creek Park and connect it to the next decade, as families attracted to downtown, establish attractive entrances IMBAY the city's public school system continue to to the downtown, add landscaping, and move in. improve parking. No financing plan for Filling the gaps improvements has yet been hammered Newton and Marr hope the consulting out. SHE'S PRICELESS. firm's market study will determine how to Some students suggested creating a new best use-the downtown's scattered unde- street that would connect downtown Ti- veloped parcels. "This study.will be an gard with Washington Square. Currently, As founder and manager of the Asset analysis of the land uses and what might there is no direct access between the two Management subsidiary of Cornerstone fit.We have some vacant industrial lands. sites, as motorists must contend with Columbia Development, Lucille Noel was We're looking for directions from the clogged traffic along Greenburg Road. responsible for over 40 properties worth more consultant,"says Newton. That could be accomplished by extending than$400,000,000.Today,she has become "Downtown is not what I'd call suffer- . Tigard Street to Hall Boulevard to the ing from significant vacancies, but we've north. Managing Director of Leavitt Shay Real got vacant land," Marr said. Filling the Other students pointed out the need to Estate Services. Her expertise in asset and gaps in an orderly fashion is one more rea- improve the downtown's physical appear- risk management will help building owners son to have a plan,he said. ance. For many motorists traveling past manage and direct their properties In the next few months, city planners the area on the Highway 99W viaduct, efficiently and profitably. , may work on some zone changes for the their only view of downtown is of unsight- Call Lucille today LFAvm downtown area. Currently, several patch- ly air conditioning units atop the roofs of and•see how she,and es of land zoned for light industry pene- low-lying downtown buildings.One possi- SE trate the core area. ble way of hiding the ugliness is to add Leavitt Shay,can makeAlready, the city has examined several second stories to buildings, creating athe priceless affordable. options for downtown improvement. A more desirable appearance for passing (503)226-6777 ,E team of Portland State University urban motorists. .•7. T We're the solution. REAL FJTA7F,SERVICES design students helped come up with sev- Students also suggested that the Tigard eral suggestions. The students conducted Please turn to page 10 January 25,1988 FOCUS:Commercial Real Estate Page 9 Downtown Tigard y X % f ' .v kR «� Continued from page 9 Street access to downtown, which passes 3 t ' under the highway viaduct from the µ;-, •�, � north, be improved to create a more at- tractive, definitive entrance to the core area. "Right now Tigard Street is like a back-door entry to downtown," Newton said. } Downtown parking also must be im- proved, most agree. There are onlv 180 parking spaces downtown. There's little off-street parking and not enough parking for those who work downtown, Newton said. Development of nearby x Fanno Creek Park is Main Street through downtown Tigard lacks well-defined"corridor"appmrance. Brian MR* expected to be a key component in downtown Tigard xq R planning. 144.R s t I t At one resale store downtown, she add- ed, customers call ahead to see if there's t t t parking space available. Th. d-loo i e. Pam.She's Establishing a corridor ood d -be ght the I sial We Also, there's interest in filling the scat- w8 ighsch h8`' ,x t Tarried ` tered undeveloped gaps along Main r ergralviraysbeen t, k's Street. The lack of buildings, the great a f rosea . ping goes number of low-lying buildings, lack of " we k o aLwaspartA trees and the large width of Main Street k. . mmitm n everything • s add to the downtown's nondescript took. e »;, q i,, "There's the feeling that Main Street is bed of r i you , pouch,I'm not a corridor," Newton said. One possi- ` Wan.I ng I oa148. ble solution,suggested by design students, �.- is to add a median of tall trees, creating a ,Bd a union tnb bout long as I've,. , l' corridor-like appearance. The addition of s be th P do, envy guys that ` second stories also would help give the `dOrj' along' C fthe lir essional';' downtown a more "anchored" appear- 16 ling we gel NECA(I EW Matto` ance,Newton said. ng progrtm helped me get my Development or refinement of Fanno s "�ei'visor license aiidkee s me on P VP 1? Creek Park promises to be an important ei. .pfeoe changes.The van part of any downtown development plan. s that didn't even w ' "We see the park as instrumental. Not arriedl Things ne many city centers have a park like this `fin °agement systems, reu next door,"said Duane Roberts, adminis- ='eo ols and motor oon*6 trative planner for the city's planning de-like my job.And I partment. "The potential for the park to sti round with'the play a major role is there." for' moreyears... Marr said the citizens' task force wants to make downtown "people-oriented—a •;' place where people will want to come." The task force, formed early in 1987, - - E meets twice, a month. The five-member group is beginning its look at financial op- T. for making capital improvements. M �i4Z.V "We'll obviously be looking for money," i x Marr said. "We're looking at other op- tions beyond (receiving) taxpayers' mon- ey,"said Juarez. Call 503/233= � � Main Street viewpoints i ., , handbook o a s2'!yi Don Hanson, who's operated Tigard National i:c Cleaners at 12519 S.W. Main St. for 24 A.ssoct ,. '' years, said he heard that downtown Ti- Brotlte`- r.• gard was dead when he first came to the I'0 area in the early 1960s. "We're a lively PO 8723 '"_ �� corpse if we're dead," Hanson said. �.- "Each year, our net worth grows and our = business grows." Hanson, who owns the cleaning opera- d` tion with his wife Shirley and daughter Darbie Mayberry, orginally did business ' on the Pacific Highway (U.S. 99W) but said traffic was and is too busy there. "It was too difficult to get visibility there. I like Main Street,"he said. Hanson would like to see more of a mix of high-rise structures that could combine residential living and commercial activities downtown. According to codes for Tigard's central business district, structures as high as 80 feet(about seven or eight stories)could be t built, unless they're within 100 feet of a >: residential zone, Newton said. In that > ` Continued on next page Page 10 FOCUS:Commercial Real Estate - January 25,1988 Downtown Tigard Continued from preceding page ing good money,"he said. case,there's a 40-foot limit. Cash said he was a bit skeptical about Stuart Cohen, an attorney who chairs whether.a downtown market study is : the citizens'task force,says several things needed. He added, however, that if the �, c must come together before retail activity study is completed,it will likely show that !'i can be revived.That could include a high- off-street parking will be needed down- rise residential development. "We need town for new development. "It's not something that'll draw the people. Some needed now,"he said. ^�_ type of residential and recreational devel- Hanson,a member of the Tigard Down- opment tying in with downtown is need- town Association (a committee of the Ti- ed,"Cohen said. gard Chamber of Commerce),said there's general support for a market study among ; local business people.He said members of Some members of the the downtown association are contribut- Tigard Downtown ing money for the study. Association are Newton added that beginning in Febru- ' • contributing money for a ary,the city will examine all financing op- tions such as tax increment financing, lo- market study. cal improvement districts, and private- — 74,111, public investment.In late spring and early ; Cohen senses that Tigard residents are summer,the planning staff may revise sev _. eral development codes for the core area. more receptive to downtown redevelop- Already the city is revising its current sign -"" ment now than they were several years code, Newton said. "I'm hoping that by ago, when they defeated a funding mea- June we'll have developed a scenario for sure for an urban renewal district.Part of development,"she said. } the reason local residents soured on the ' project, sources said, was the perception Still,the question at this time is not how z , that persons pushing the urban renewal downtown Tigard will change,but wheth- '` had substantial land holdings in the area. er it's too late for change. Also, said Cohen, the urban renewal "Maybe there are special opportunities ;i' district committee had no plan, adding to there,"Roberts said. "On the other hand, residents'skepticismI've had some consultants tell me there's ycc Jerry Cash, of Cash's Realty, 12525 no future for retail downtown." S.W.Main,said he doubts whether many . Added Newton,"The task force is wait- changes are needed downtown. "I think ing to hear if their vision is attainable. ' it's doing well the way it is. There don't They want known what is realistically via- seem to be many vacancies, and people ble.They realize they may have to give up ` doing business down here seem to be mak- some(ideas)to make it work." M, ,': t3. "We all have ideas. We have to look at the reality of what will work," Juarez Elizabeth Nexton issenlorplannerfor the City of Tigard. said. en•n wane Ran �l' EN ■ y . . PLUS GREAT LAND AT REALISTIC PRICES! ub. coldwell Banker's Robert Scanlan Scanlan takes Prime industrial space to 21,000 Los Angeles eles post square feet and sites from one to g 150 acres on rail. For information Robert D. Scanlan, formerly first viceppppp— —"qqq and an industrial park tour president and resident manager of Port- Existing inclUstrial space call Terry Phillips land's Coldwell Banker commercial real for lease from estate services division, has been named (206) 695-3344 g president of the company's main institu- 4ee clerk c.11�t> tional real estate services division in Los First Investment Angeles. • Property Services '"" I5 Scanlan was in Portland from 1978 to MOM 'rate does not include 1986.In 1986,he moved to Denver as sen- ior vice president and regional manager �•ew..•. Port of Ceme"R'eshouKel for Coldwell Banker's mountain region. I �H�1 In his new position,Scanlan will man- ,•,..' age all of Coldwell Banker's institutional " t.a.mel.ttl... real estate activities and programs, which I.e7 &4 are aimed at the selling of sophisticated, � � �� '//� institutional-grade commercial properties throughout the United States. PO'PTOF CAMAS ' • In Portland, Scanlan is still on the JLV JL board of trustees of Reed College, and on the board of trustees of Providence Medi- Washougal, 1 1 ' cal Foundation. ■ _. .... L'nrrle.r....,....-A.I D..1 An.t. Pace 1: t n r 2 et j� &113� 1 "'1� F "TZ ise ti s t�lie i y� pro" imI) F''Y 4Y .'p' y4 `' .� ��{ �f��}.�fjy� �a•a> t ir4�)�f�tp,tr iia fl ,f ® �i� {t`"d r URBAN RENEWAL PLAN FOR THE RIVERF�RCNT—DOWN'T'OWN URBAN RENEWAL PROJECT CITY OF SANS, OREGON PART ONE — TEXT PART TWO — EXHIBITS ADOPTED MAY 5, 1975 AMENDED OCTOBER 11, 1976 RMOMED JULY 5, 1977 AMENDED JANUARY 23, 1978 AMMED SEPTEMBER 11, 1984 a AMENDED APRIL 14, 1986 AMENDED JANUARY 12, 1987 Prepared by Urban Renewal Agency of the City of Salem, Oregon 6*00 CITY COUNCIL AMID URBAN RENEWAL AGENCY OF THE CITY OF SALEM Susan Harris Miller, Mayor Michael Minden, Ward 1 John Carney, Ward 5 John L. Shirley, Ward 2 Harry Thorp, Ward 6 Dick Berg, Ward 3 Jane Cummins, Ward 7 Marvis Mackey, Ward 4 Ralph Jackson, Ward 8 R.E. Abolt, City Manager Robert Briscoe, Director, Department of Community Development Richard Hayden, Economic Development Administrator SALEM PLANNING CONMISSION William R. Pease, President Lynda Q. Stephens Darr Goss Keeta Lauderdale Errol A. Pedersen Gregory C. Dilger Paul R. Wulf DOWNTOWN DEVELOPMagT BOARD Larry Moore, Chairman Terry Watson J. Wallace Gutzler John Kary Thomas C. Paulus Sandra Henry Richard Seideman Geoffrey James Carole Smith Nancy Farrar Peter Truitt PARKING DISTRICT BOARD John A. Huxford, Chairman Lloyd Mitchell Ed DuBois Carolyn Purvine Kenneth E. Sherman, Jr. Ken Howe Dale W. Davis William Blakley Dwight Quisenberry Randy Compton TABLE OF CONTENTS Page No. PART ONE - TEXT 1 Section 100 Introduction 1 Legal Basis for Employing Urban Renewal Process Declaration of Necessity and Purpose Assurances to Qualify for Federal Assistance Citizen Participation Section 200 Definitions 2 Section 300 Description of Riverfront-Downtown Urban Renewal Boundary 3 Section 400 Statement of Urban Renewal Plan Objectives 4 Section 500 General Land Use Plan 6 Land Use Plan Element Circulation Routes Legal Description Section 600 Project Activities which may be used to Achieve Plan Objectives 10 Section 700 Land Disposition 13 Land Uses to be Permitted Property Development Standards, Controls, and Restrictions Land Use Provisions and Building Requirements to be Imposed on Property Circulation Requirement Redeveloper's Obligations Exceptions Section 800 Applicability of Controls, Non-Discrimination Provisions, and Effective Periods of Controls 15 Section 900 Other Provisions Necessary to Meet State and Local Requirements 16 Section 1000 Provisions for Amending Adopted Urban Renewal Plan 17 j Section 1100 RDURP Projects I. Retail Expansion/Block 25 Development 18 a. Project Description b. Relationship to Loral Objectives c. Project Timeline and Outline II. Riverfront Redevelopment a. Project Description b. Relationship to Local Objectives c. Project Timeline and Outline Section 1200 Funding Priority 24 Section 1300 Future Plan Amendments 25 PART TWO - EXHIBITS Exhibit One Legal Descripticn of Riverfront-Downtown Urban Renewal Project Area Boundary Exhibit Two Riverfront-Downtown Urban Renewal Project Boundary and General Land Use Plan Map Exhibit Three Identification of Property that May be Acquired PART ONE - TEXT SECTION 100 - INTRODUCTION A. Legal Basis for Employing Urban Renewal Process. The Urban Renewal Plan for the Riverfront-Downtown Area consists of Part One, Text, and Part Two, Exhibits. This Urban Renewal Plan has been prepared by the Urban Renewal Agency of the City of Salem, Oregon, pursuant to Oregon Revised Statute (ORS) Chapter 457, the Oregon Constitution, and all applicable laws and ordinances. All such applicable laws are made a part of this Plan, whether expressly referred to in the text or not. B. Declaration of Necessity and Purpose. Within the boundaries of such Riverfront-Downtown Urban Renewal Area, as hereinafter described, the Mayor and Common Council of the City of Salem hereby finds, there exists conditions of blight, deterioration, decline of property values and business vacancies, conflicts between vehicular and railroad traffic, and other factors which constitute a detriment to the health, safety, morals, and welfare of residents of the City and people frequenting the area. The Mayor and Common Council further finds that to correct the conditions as hereinabove stated and to realize the Plan Objectives set forth in Section 400 of this Part, that it is necessary and in the pulic interest to declare such Riverfront-Downtown Area as an Urban Renewal Area and to utilize therein, the Urban Renewal and Redevelopment provisions of Chapter 457 of Oregon Revised Statute. C. Assurance to Qualify for Federal Financial Assistance. In order that this Urban Renewal Plan may qualify for federal financial assistance, pursuant to Block Grant Funding of Title I of the Housing and Community Development Act of 1974, the "Assurances" provisions of the U.S. Department of Housing and Urban Development (Form HUD 7015.12 - 12/74) by this reference are hereby included within this Urban Renewal Plan as if such assurances were herein included in full. D. Citizen's Participation. Prior to the adoption of this Plan, the Mayor and Common Council appointed a citizen's advisory group referred to as the Riverfront Committee to advise the Council on the Riverfront Project. The Mayor and Common Council have appointed two boards to succeed the Riverfront Committee: The Downtown Development Board and the Parking District Board. Additionally, the Salem Planning Commission, as required by State Statute, will review any major amendments to this plan. These Committees, as modified from time to time, will serve as the official advisory groups to the Common Council regarding all activities relating to this plan. 1 SECTION 200 - DEFINITIONS The following definitions will govern the construction of this Plan unless the context otherwise requires: A. "Plan" means the Urban Renewal Plan for the Riverfront-Downtown Urban Renewal Area, Parts One and Two. B. "Text" means the Urban Renewal Plan for the Riverfront-Downtown Urban Renewal Area, Part One - Text. C. "Project" means individual projects or undertakings carried out within the Riverfront-Downtown Urban Renewal Plan Area. D. "Project Area" means the area included within the boundaries of the proposed individual projects. E. "Agency" means the Urban Renewal Agency of the City of Salem, Oregon. F. "Planning Commission" means the Planning Commission of the City of Salem, Oregon. G. "City" means the City of Salem, Oregon. H. "County" means the County of Marion, State of Oregon. I. "State" means the State of Oregon. J. "ORS" means Oregon Revised Statute (State Law) and specifically Chapter 457 thereof. K. "RDURA" means Riverfront-Downtown Urban Renewal Area. L. "RDURP" means Riverfront-Downtown Urban Renewal Plan. M. "River" means the Willamette River. N. "Persons" means any individual, family, or business establishment. 0. Downtown Parking District" means the parking district created and described in Salem Revised Code Chapter 7. P. SAC P means Salem Area Comprehensive Plan. 2 SECTION 300 - DESCRIPTION OF THE RIVERFRONT-DOWNTOWN URBAN RENEWAL URBAN BOUNDARY The boundaries of the Riverfront-Downtown Urban Renewal Area are shown on the Urban Renewal Boundary and Land Use Plan Map attached hereto as Exhibit 2 of Part Two of this Plan. A legal description of the boundaries of such Urban Renewal Area is attached hereto as Exhibit 1 of Part Two of this Plan. 3 SECTION 400 - STATEMENT OF URBAN RENEWAL PLAN 03JE(_7IVES The primary objectives of the Urban Renewal Plan are to improve the overall appearance, condition, and function of the project area, encourage a variety of river-oriented uses, sustain, and improve the economic vitality of the Central Business District, relieve traffic congestion and railroad conflicts, encourage the use of mass transit, and preserve and create natural green belts along existing waterways. Objectives of the plan more specifically stated are: A. To work with the RDURP's citizens advisory committee and subcommittees for maximum input and evaluation of all development recommendations. B. To maintain the cental core area as the dominant regional retailing and office development center. C. To prevent further fragmentation of the central core retail and office development activity. D. To encourage the development of and provide sites for additional retail uses, including department stores. E. To improve the pedestrian flow and protection for pedestrians between the retail activities, offices, public facilities, parking, and related areas through improvements at street level as well as grade-separated pedestrian ways. F. To increase the net supply of public off-street parking spaces within the RDURA sufficient to meet the needs of the Downtown Parking District and public facilities. G. To encourage private restoration, rehabilitation, development both within and adjacent to the project area through public improvements in the project area. H. To encourage and explore .funding methods for the preservation or reuse of historically or architecturally significant buildings in the retail core area. I. To adjust zoning, building codes, fire regulations, and administrative policies, consistent with public safety, to encourage rehabilitation and reuse of existing buildings. J. To protect existing housing stock by encouraging rehabilitation and to encourage the conversion of existing suitable structures to residential use in the project area. K. To encourage the development of new housing through the use of legislative measures such as the tax abatement provisions of HB 2343. L. To increase the total housing supply adjoining the retail core. 4 M. To relieve traffic congestion and conflicts arising between cross town traffic and traffic destined for downtown Salem by improving Front Street, minimizing th(� railroad conflicts through track consolidation and relocation, ar.d encouraging the use of mass transit. N. Improve present public streets and alleys by the installation of new surfacing, curbs, gutters, sidewalks, and the placing of visually integrated street furniture, and to develop and improve the street lighting system. 0. To participate in the development of the Willamette Riverfront in the project area in a way that provides an opportunity for a mixture of commercial, residential, public, and other uses compatible with the riverfront, and facilitates safe pedestrian and bicycle int along the riverfront with linkages to adjoining areas. P. Where necessary, to construct, install, and replace new publicly owned utility systems such as water, storm drains, and sanitary sewers where existing systems are inadequate, undersized, or substandard. Q. Provide good pedestrian and vehicular access to the riverfont. R. To beautify and enhance the streetscape by participating in projects involving public art, landscaping, sidewalk surfacing, signing, street furniture, intersection corner bulbs, weather protection, and related improvements. 5 SECTION 500 - GENERAL LAND USE PLAN The General Land Use Plan for the Riverfront-Downtown Urban Renewal Project Area conforms wth the City's Comprehensive Pland and consists of a map entitled "URBAN RENEWAL PROJECT BOUNDARY AND LAND USE PLAN MAP" included herein as Exhibit 2, Part Two, and the descriptive material and regulatory provisions contained in this Section (both those directly stated and those herein included by reference) . A. Land Use: The following land uses are permitted: 1. Residential complying with the uses, provisions, standards, and regulations set forth in the City's Uniform Zone Code and specifically to SRC Chapter 148, the "RM - Multifamily Residential District" and SRC Chapter 149, the "RH - High Rise Apartment Residential District". 2. Retail, Office complying with the uses, provisions, standards, and regulations set forth in the City's Uniform Zone Code and specifically to SRC Chapter 150, the "CO - Commercial Office District", SRC Chapter 153, the "CG - General Commercial District", and to SRC Chapter 154, the "CB - Central Business District". 3. New Retail Center complying with the following uses, provisions, and standards: a. Allowed Uses: Department Store Public Use Space Artist Supply Store Restaurant or Dine, Drink, and Bookstore Dance establishment Camera and Photographic Store Shoe Store Candy, Nut, and Confectionary Sporting Goods Store Drug Store Theatre Dry Goods Store Toy Store Florist Shop Tobacco, Cigar Store Furrier and Fur Shop Wearing Apparel and Accessories General Store Variety Store Gift and Novelty Shop Luggage and Leather Goods Greeting and Stationery Card Store Baker Hobby Equipment Store Barber Hotel Beauty Shop Jewelry Store Offices of Financial Institutions Liquor Store Other Office Uses Allowed by the .Music Store (including stereo Uniform Zone Code provided equipment sales and records they are not located on the stores) street level New Dealers Other Compatible Uses Plant Store 6 b. Additional Provisions: 2) Off-street parking requirements. The requirements of the Uniform Zone Code, SRC Chapter 133, "Off-Street Parking and Loading" apply'. Not more than 50 private parking spaces may be provided in this land use category. Parking shall be provided on nearby sites in order to allow for maximum building development. 3) Public Use Space. Approximately 10,000 square feet of the land in the new retail center land use category is required to be developed public use. A detailed plan locating this site, its design, use, character, and ongoing operation shall be approved by the City Council prior to issuance of any construction permits in this land use category. The following description is intended as a guide to be used by the Council in approving the plan. It is not intended to define the specific uses to be included. The space to be developed in this use should be along the major pedestrian routes and in one contiguous site. It should be designed to include both passive, high spectator and active, i.e., skating, participation choices. Examples of the specific uses include special events like art shows, trade exhibits, dance concerts, etc., along with permanent attractions such as an ice skating rink and/or outdoor dining. The area should be at least partially enclosed for year around usage. k. 4. Industry and Commercial Services complying with the uses, provisions, standards, and regulations set forth in the Uniform Zone Code and specifically to SRC Chapter 155, "IC - Industrial Commercial District". 5. Parks and Open Space complying with the uses, provisions, standards, and regulations set forth in the City's Uniform Zone Code and specifically to SRC Chapter 160, "Public Use District." 6. Other Public and Major Institutions complying with the uses, provisions, standards, and regulations set forth in the City's Uniform Zone Code and specifically to SRC Chapter 160, "Public Use District." 7. Riverfront. Uses shall conform with the "River-Oriented Mixed Use" provisions of the Salem Area Comprehensive Plan and, where applicable, Willamette River Greenway regulations (SRC Chapter 141) . Within Riverfront two land use categories are shown in Exhibit 2, Part 2, General Land Use Plan: Part A - Industrial and Part B - Riverpark and Redevelopment. Part A - Industrial uses complying with the provisions, standards, and regulations set forth in the City's Uniform Zone Code and specifically to SRC Chapter 155, "IC - Industrial Commercial District"; and Chapter 158, "IG - General Industrial District". 7 Part B - Riverpark and Redevelopment complying with the following provisions: a. Allowed Uses: Parks and open space including pedestrian and bicycle trails and community center buildings. Marina including accessory uses such as, but not limited to, boat launch, boat sales, boat and engine repair, gas and oil sales, boat equipment rentals, and accessory sales. Community buildings Multifamily residential Hotels, motels, and conference Eating place, restaurant cafe Dine, drink, and dance establishment Other Compatible Uses Retail Uses: Antique Shop Artist Supply Store Camera and Photographic Store Candy, Nut, and Confectionary Store Florist Shop General Store of Not More Than 5,000 Square Feet Gift Novelty Shop Plant Store Sporting Goods Store Toy Store Tobacco Store Wearing Apparel and Accessories Variety Store Luggage and Leather Goods b. Additional Provisions: The above uses shall comply with the provisions, standards, and regulations set forth in the City's Uniform Code, including SRC Chapter 141, Willamette River Greenway. 8. General Commercial, Office complying with the uses, provisions, standards, and regulations set forth in the City's Uniform Zone Code and specifically to Chapter 150, the "CO - Commercial Office District" and Chapter 153, the "CG - General Commercial District". 9. Industry, complying with the uses, provisions, standards, and regulations set forth in the City's Uniform Zone Code and specifically to Chapter 158, "IG - General Industrial District". 8 B. Circulation Routes as delineated on the Major Street Element of the Salem Area Transportation Plan as adopted by Salem City Council. C. Legal Description of the Riverfront-Downtown Urban Renewal Project Area Boundary is included as Exhibit 1, Part Two of this Plan. ,t 9 SECTION 600 - PROJECT ACTIVITIES WHICH MAY BE USED TO ACHIEVE PLAN CBJECTIVES A. The principal aim of the renewal activities is to create a clima:e for and to encourage the revitalization of a viable and economically sound Central Business District, eliminating traffic congestion and railroad conflicts, and the development of amenities along the east bank of the Willamette River. The type of renewal actions to be undertaken by the Agency in execution of this plan include those actions permissible under Oregon Revised Statutes Chapter 457, these include but are not limited to the following: 1. Assistance in the rehabilitation of deficient structu:-es where such rehabilitation is physically and economically feasibl(�. 2. Acquisition of real property for clearance and sale or lease for redevelopment. 3. Entering into agreements for owner participation in rehabilitation and/or redevelopment. 4. Aid in the relocation of individuals, families, and businesses displaced by renewal actions. The provisions of Section 900E of this Plan shall apply. 5. The renovation and rehabilitation of historic or architecturally significant buildings or structures as identified in the City's historic inventory. 6. Construction and reconstruction of public improvements, including flood control measures, parking facilities, convention facilities, performing arts facilities, public parks and open space, and other facilities which will aid in the economic aesthetic or recreational enhancement of the RDURA. 7. Entering into cooperation agreements with other public agencies. 8. Relocating existing overhead private utilities and installing proposed private utilities underground where feasible. 9. Installation of temporary uses, such as open space, parks, temporary mobile office facilities, and surface parking areas. B. Land Acquisition Identification of real property that may be acquired is shown in Part Two, Exhibit 3. Property that is acquired under this plan will be purchased according to the procedures adopted by City Council Resolution 76-126, Section 3.11. Any properties purchased with Federal funding will be purchased according to the procedures and regulations of the Department of Housing and Urban Development. 10 Real pr�-)perty acquisition included in this plan is to achieve objectives of this plan based on one or more of the following criteria: 1. Where existing conditions do not permit practice or feasible rehabilitation of the structure and it is determined that acquisition of such properties and demolition of the improvements thereon are necessary to remove substandard conditions. 2. Where detrimental land uses or conditions exist, and it is determined that acquisition of such properties and demolition of the improvements is necessary to remove blighting influences and to achieve the objectives of the Urban Renewal Plan. 3. Where it is determined that the property is needed to provide public improvements and facilities. 4. Where the existing property owner is either unwilling or unable to achieve the objectives of the Urban Renewal Plan. C. Rehabilitation. Existing structures on all properties to be rehabilitated shall meet the following prescribed minimum standards: 1. All structures shall be rehabilitated as applicable in accordance with the current versions of the following codes for new construction, with amendments, as adopted by the City of Salem: State Structural Speciality Code State Electrical Speciality Code State Mechanical Speciality Code State Plumbing Speciality Code Fire Prevention Code Sign Code of the City of Salem Salem Housing Code Salem Uniform Zone Code 2. The Urban Renewal Agency may recommend the reduction of such standards for an individual structure, which includes those of historic or architectural significance or use, if it finds and determines that: a. The structure or use cannot feasibly be made to comply with the codes because of existing site, use, or other physical limitations. b. The reduction of such standards will not otherwise adversely affect the health, safety, or welfare of the occupants of the structure or of the Project Area. Should reduction be recommended by the Agency which do not comply with applicable codes and ordinances of the City, the applicant shall comply with all applicable City procedures for the granting of such reductions. 11 3. All structures and uses shall comply with the conditions and regulations of this Plan. 4. Owner-Participation. If it is not economically feasible to bring the property up to project standards, the Urban Renewal Agency may buy and clear all or part of the structure if the Owner is willing to participate as a redeveloper. D. Underground Utility Lines 1. Wherever possible, and in accordance with adopted plans and subsequent agreements between the agency and private utilities, overhead utility facilities and lines shall be placed underground. 12 �Wrri' r0 SECTION 700 - LAND DISPOSITION A. Property Disposition The Agency is authorized to sell, lease, exchange, subdivide, transfer, assign, pledge, encumber by mortgage or deed of trust, or otherwise dispose of any interest in real property which has been acquired in accordance with the provisions of this Urban Renewal Plan. All real property acquired by the Agency in this project area shall be disposed of for development for the uses permitted in the Plan at the fair re-use value for the specific uses to be permitted on the real property. Real property acquired by the Agency may be disposed of to any other public entity in accordance with the Plan. All persons and entities obtaining property frau the Agency shall use the property for the purposes designated in this Plan, and shall commence and complete development of the property within a period of time which the Agency fixes as reasonable, and comply with other conditions which the Agency deems necessary to carry out the purposes of the Plan. To provide adequate safeguards to ensure that the provisions of this Plan will carried out to prevent the recurrence of blight, all real property disposed of by the Agency, as well as all real property owned or leased by participants, shall be made subject to this Plan. Leases, deeds, contracts, agreements, and declarations of restrictions by the Agency may contain restrictions, covenants running with the land, rights of reverter, conditions subsequent, equitable servitudes, or any other provisions necessary to carry out this Plan. B. Redeveloper's Obligations. The following redevelopment requirements, whether by the Agency or by others, are hereby imposed and shall be implemented by appropriate covenants or other provisions in property disposition instruments: 1. The redeveloper and his successors or assigns shall develop land in accordance with the land use provisions and building requirements specified in this Plan. 2. The redeveloper shall begin and complete the development of such land for the uses required in this Plan within a reasonable period of time as determined by the Agency and to be specified in the disposition instrument. 3. The redeveloper shall submit preliminary architectural and site plans, landscape plans, and final plans and specifications for the construction of improvements on the land to the Agency for review and approval so that the Agency may determine compliance of such plans and specifications with this Plan including the terms and conditions of the disposition instrument. 4. The redeveloper will be obliged, under the terms of the disposition instrument, to carry out specified improvements in accord with this 13 Plan. The redeveloper will not be permitted to dispose of the property until the improvements are made, except with the prior written consent of the Agency, which consent will not be granted except under conditions that will prevent speculation and will protect the interests of the Agency and the general welfare of the Urban Renewal Area. 5. No property shall be restricted as to the sale, lease, use, or occupancy upon the basis of race, religion, color, sex, or national origin. C. Underground Utilities. Utility facilities, if feasible, may be relocated as necessary to place existing above-ground facilities underground, and to relocate those necessary by reason of street modifications. The private utilities concerned will make such modifications and adjustments as may be required of them by reason of applicable law and through cooperation with the Agency. Upon vacation of streets, utility easements shall be reserved unless the Agency determines that such action is not-necessary. D. Exceptions. The Agency may grant exceptions, which do not constitute a substantial change in the Plan, to any of the regulations required in this section. Prior to granting the exceptions, the Agency shall ascertain that the proposed action will not adversely affect other properties within or adjacent to the Urban Renewal Area, and is consistent with the intent of the Urban Renewal Plan. Any exceptions from this plan which are not in accord with the zoning ordinance and other applicable codes and standards of the City shall be subject to approval of exceptions as required by the Zoning Ordinance and other codes and standards. 14 SECTION 800 - APPLICABILITY OF CONTROLS, NON-DISCRIMINATION PROVISIONS, AMID EFFECTIVE PERIODS OF CONTROLS A. Applicability of Controls to Real Property. The provisions and requirements prescribed in Sections 500 and 600 shall apply to all real property situated within the Urban Renewal Area. B. Non-Discrimination. The property within the Urban Renewal Area shall not be restricted as to the sale, lease, or occupancy upon the basis of race, religion, color, sex, or national origin. C. Effective Periods of Controls: Extensions. The provisions and requirements outlined in this Plan shall be in effect for 30 years except that the non-discrimination provisions shall be in effect in perpetuity. The provisions and requirements, or any part of them thereafter, may be extended for additional, successive ten-year periods by agreement of the majority of the property owners in the renewal area. D. Any person aggrieved by a decision made under this plan, whether such decision is affirmative or negative in form, is entitled to have the decision reviewed by the Agency. Request for such reviews shall be in writing stating the reasons for the request. 15 SECTION 900 - OTHER PROVISIONS NECESSARY TO MEET STATE AND LOCAL REQUIREMa4TS A. The land uses delineated in this Urban Renewal Plan have been established in conformity with the City's Comprehensive Plan and Zoning Ordinance. B. The land use provisions and building requirements set forth in this Plan have been specifically designed to accomplish rehabilitation and redevelopment in accord with sound city planning principles and objectives. All land to be acquired and such parcels as may be the subject of owner-participation agreements will be rehabilitated or cleared and redeveloped to conform with the land uses shown on the Land Use Plan Map. Public improvements, such as streets and parks, will be installed in accord with this Plan. C.- Street improvements proposed in this Plan conform with the City's Comprehensive Plan and are appropriate and desirable with respect to adjacent areas. In addition to fostering the land use objectives of this Plan, modification of the railroad tracks and the existing street system will aid traffic flow and minimize traffic congestion in the Urban Renewal Area. D. For each of the proposed land uses, maximum intensity of use has been established by virtue of conformity with the City's Comprehensive Plan and the use and development standards of the City's Uniform Zone Code. E. The Urban Renewal Agency will provide assistance in finding replacement facilities to persons or business displaced by Agency action. All persons or businesses to be displaced will be contacted to determine their relocation needs. They will be given information related to the relocation program and procedures, including eligibility requirements for relocation payments, services available, and other relevant matters. The relocation activities for the Front Street Project will comply with the Front Street relocation plan and procedures adopted by the City Council, March, 1976. All other relocation activities will be undertaken and payment made in accordance with the Department of Housing and Urban Development Rules and Regulations. In its relocation matters, the Agency will be bound by the Grievance Procedure Ordinance No. 39-76, adopted by the City Council, March, 1976. These documents are available for review in the Agency office. F. The Agency may finance or refinance any indebtedness incurred by the Agency in connection with this Project, as amended, by providing for the division of ad valorem taxes, if any, levied by a taxing body upon the taxable real and personal property situated in the Project Area in accord with and pursuant to ORS 457.420 through ORS 457.450 of the State of Oregon. 16 SECTION 1000 - PROVISIONS FOR AMMING ADOPTED URBAN RENE� PLAN This Urban Renewal Plan may be mod_fied after adoption by the Agency; provided that such modification must be submitted to City Council with the recommendations of the applicable City advisory boards for their review and recommendations. Where the modification will substantially change the Plan as approved by the City Council, the modifications must similarly be approved by the City Council with recommendations from the affected neighborhood.. organization and the Salem Planning Commission in the same manner.as the original Plan. Substantial changes shall be regarded as major revisions in project boundaries, land uses, and the basic pattern of streets and other modifications which will materially change the basic planning principles of this plan. 17 SECTION 1100 - RDURP PROJECTS I. Retail Expansion/Block 25 Development A. Project Description The urban renewal project is to construct a public parking structure on Block 25 to serve imminent retail expansion on Block 24 .of the downtown. Urban Renewal funds will be used for construction of the public parking structure and will be used for partial payment of the costs of constructing skybridges from the parking structure to Block 24 (one skybridge) ; from Block 24 to Meier and Frank Department store (one skybridge) ; and from Block 24 to Block 23, which contains the Nordstrom Department store and Nordstrom Mall (two skybridges) . B. Relationship to Local Objectives 1. The amendment, is directly consistent with the following SACP policies and intent statements, as the property proposed for acquisition is to construct an off-street parking facility in the CBD to serve a new major retail development. Policy F. (1) ; p. 41: "Conmercial Development; Central Business District." The central business district shall be maintained and developed as the regional retail and employment center for the Salem urban area and regional shopping and service facilities outside the central business district should be prohibited. Intent Statement A(3) (c) : p. 12: "Commercial Designation; Regional Retail Facilities." Regional Retail Facilities represents the Salem Central Business district and they provide for shopping and service requirements cf the city and region. Policy F. (8) ; p. 43: "Commercial Development; Parking and Loading Facilities." Adequate off-street parking and buffer strips shall be provided for all commercial development. When appropriate, transit services and shelters shall be provided in lieu of some off-street parking. Parking and loading facilities shall be designed so that ingress and egress driveways do not disrupt the efficient flow of traffic on arterial streets, intrusion into abutting uses is minimized, and safe and convenient pedestrian circulation is provided. 2. The parking structure is a public facility to be constructed in the CBD in conjunction with new retail development. It has received a permit from the Department of Environmental Quality as 18 a parking structure which meets identified transportation facility needs in a sensitive air quality area. As such, it is also in conformance with the following SACP goals, policies, and intent statements: - Policy B. (6), "Carrying Capacity" (p. 32) . - Policy D. (7), "Environmental and Cost Considerations" (p. 37) . - Policy D. (10) , "Urban" (p. 38) . - Policy G. (4) (e) , "Economic Development" (p. 45) . - Policy M. (2), "Natural, Ecological, .Historical, and Scenic Areas" (p. 51) . - Intent Statement A(3) (d) , "Central Business Area" (p. 13) . - Goal I, "Transportation" (p. 47) . - Goal L, "Public and Semi-Public Buildings and Lands" (p. 50) . 3. The City of Salem has made a long-term commitment to revitalizing and expanding the central business district as Salem's regional retail shopping area and to provide public parking to serve the regional retail facilities. a. The Central Salem Development Plan (December, 1971) states that short-term parking should be established within a block of major destination points and connected with covered shopper walkways. The CSDP also identifies a potential parking structure extending from Marion Street to south of Chemeketa Street. Several years later, in 1978, the Chemeketa Parkade was constructed, extending from south of Center Street to south of Chemeketa Street (more than one block south of the original proposal) . The parking structure proposed in the Renewal Plan amendment, is on an adjacent block to the location which was proposed in 1971, and is to connect to the new major retail development with pedestrian skybridges. The proposed structure is fulfilling a need which was identified in 1971. b. A consultant study, "Salem, Oregon Central Business District Retail Development Opportunities" (May, 1974, by Larry Smith and Co.) , cites "a lack of physical cohesiveness" in the CBD (Appendix A, p. 21) and recommends the following: 1) The expansion of existing stores; 2) The introduction of a major new department store not now represented in the central business district; and 3) The relocation of Sears Roebuck and Company to the central buiness district from its present non-CBD location (p. 17) . The Smith study also projects that a CBD "revitalization program will support approximately 500,000 square feet of new 19 department store type merchandise space by 1980" (p. 17) . The new development, when combined with the Nordstrom Mall (constructed in 1979), will provide about 340,000 square feet of retail space, well within the Smith projection. C. In November, 1976, Salem voters passed a measure forming the Downtown Parking District to be managed by the Downtown Parking Board, a citizen group. The Board's charge is to manage Salem's downtown free customer parking program, including parking structure maintenance, assessment appeals, and on-street parking changes. The Board manages the District using funds collected according to an assessment formula, which is based on customer demand derived from the type of use and its floor area. d. The Salem Area Comprehensive Plan "Conformance Report" (March, 1982) is a discussion (adopted by City Council) , submitted to the Land Conservation and Development Commission, describing the SACP policy conformance with Statewide goals. The report states: "parking. . .is becoming an increasingly serious problem throughout Salem with the downtown having the most severe shortage" {p. 51) . The report further states that: "if current trends continue, a deficiency of 2,800 to 7,800 parking spaces will exist in downtown Salem by the year 2000" (p. 51) . However, the report also comments that: "The variety of approaches (transit, carpooling, etc.) plus the additional off-street parking facilities that have been constructed and planned are expected to accommodate parking demand downtown for many years" (p. 52) . It is clear that the SACP has recognized and addressed the need for the provision of public parking to service the downtown core, and that the proposed facility will assist in addressing the deficiency identified in the Conformance Report. 4. Conformance With Riverfront-Downtown Urban Renewal Plan. The proposed amendment is consistent with Section 400(E) , 400 (F) , 400(G) (p. 4) , and 600(G) (p. 9) , of the adopted Riverfront-Downtown Urban Renewal Plan. 5. The project is an allowed use in the Salem Zoning Code. 6. The project will not impede traffic flow and is consistent with transportation plans for the downtown. 7. The project does not have a significant impact on public transportation, public utilities, recreation, community, or other public facilities. 20 C. Project Timeline and Outline The construction of the public parking facility on Block 25 is forecasted to begin, upon completion of property acquisition, in January, 1987, and to be completed in July, 1987. Construction of skybridges will occur in conjunction with the redevelopment of Block 24, programmed from April, 1986 through July, 1987. The parking structure, upon completion, will remain in public ownership and management. The outline for accomplishing this urban renewal project is as follows: land acquisition, demolition, and construction, shall be pursued as described in Section 600(B) . II. Riverfront Redevelopment A. Project Description The project is to redevelop about 22 acres of property owned by the Urban Renewal Agency, located in downtown Salem adjacent to the Willamette River. The site is currently underutilized and some demolition has already occurred to remove obsolete and blighted structures. In addition to the 22-acre site, the project extends across Front Street to include work within the right-of-way of Court Street, between Front Street and Commercial Street, and across the Willamette Slough to provide a link to Minto Brown Island. The redevelopment is mixed use, with its focal point consisting of a privately financed hotel with ancillary uses and large areas of public open space and river access. Urban Renewal funds will be used for development throughout the remainder of the site, including a conference center, built in conjunction with the proposed hotel. In addition to public docks, the public open space will include a hard surface public plaza and turfed park areas. Parking facilities will be constructed to serve both the hotel/conference center development and the adjacent public open space. On the northerly end of the site, an historic village is proposed, with the historic Gilbert House as its anchor. It is anticipated that historic structures from other areas will be purchased and relocated to the riverfront historic village as they become available to the Agency, or that new historic reproductions could be built on the site. Parking will be provided near the historic village to serve both the village and the public open space adjacent to the village. 21 4 railroad bridge to pedestrian use (when declared surplus by the railroad) connecting the site to Wallace Marine Park, across the Willamette River. In addition, street improvements will be required to provide on site circulation and vehicular access to the site. B. Relationship to Local Objectives 1. The riverfront redevelopment project has been found to be in conformance with the goals and policies of the Salem Area Comprehensive Plan. 2. The riverfront redevelopment project has been found consistent with the City's Zone Code. 3. The riverfront redevelopment project has been found consistent with the CAN-DO Neighborhood Plan. 4. The riverfront redevelopment project has been found consistent with local transportation plans, including the Salem Area Transportation Plan. 5. The riverfront redevelopment project will not have a significant impact on public transportation or utilities and will benefit recreational, and other community facilitiies. C. Project Timeline and Outline A precise date for initiating construction of the project has not been established because of several unknown factors. Some, but not all, of these factors include the timing of required land use actions (e.g., an. Army Corps of Engineer's permit for the public dock) and the availability of a hotel developer. The general order of expenditures has, however, been established. Expenditures will be specifically identified, and updated annually in Salem's Capital Improvement Program. In general, the order of improvements will require demolition of the existing Boise Cascade Container Plant first. Also expected to occur early in the project are site improvements linking the site to Minto-Brown Island. The second and third year of improvements are associated with the hotel development, with construction timing being somewhat dependent on the timing of the hotel developer. These improvements include the Conference Center and related parking, construction of central open space areas (hard and soft surface) , construction of the concourse under Front Street, street improvements relating to site access and site improvements at the historic village. The fourth year of improvements including paving. and landscaping of the Court Street pedestrian mall and additional open space improvements. The remaining improvements are expected to occur in years five and six and include the public dock, additional parking, acquisition and improvement of the railroad bridge to Wallace Marine Park (if 22 a • available) , additional open space improvements, public beautification in open space areas, and zdditional improvements to Front Street relating to site access. The above schedule is not definitive and some changes may be necessary. It is intended to provide general direction to the expected order of development of the project. 23 ' l SECTION 1200 - FUNDING PRIORITY In terms of City priority for funding, the following projects are ranked :3y first and second priority. All first priority projects are considered to be feasible within currently programed capital resources. First Priority o Block 25 parking structure and skybridges, to support retail expansion. o Ongoing programs of streetscape, alley and weatherization improvements, and skybridge development (requires property owner participation) . o Riverfront development. This is an emerging priority which will be programmed in as other priority projects are completed. Second Priority o Projects required to complete plan objectives in the northern portion of the RDURA. o Projects required to implement plan objectives related to restoration and rehabilitation of existing structures and promotion of additional housing within the RDURA. 24 SECTION 1300 - FUTURE PLAN ANIE'U4 TS No future amendments to the RDURP have been specifically identified, however it is expected that should future amendments occur, the following areas will be addressed: 1. The RDURA is adjacent to the Pringle Creek Urban Renewal Area. As the objectives of the Pringle Renewal Plan are met in some areas, the interrelationships between the RDURP and the Pringle Renewal Plan may require examination. 2. As the objectives of the downtown are addressed, the northern portion of the RDURA will require additional specific planning. 3. As the RDURA undergoes growth and change, amendments to the Map, "Property That May Be Acquired For Renewal Activities" (Part 2, Exhibit 3) may be necessary. 4. Amendments could be necessary to address projects associated with restoration and rehabilitation of existing structures and with promotion of housing in the RDURA. 0687w/0016w :s 25 FART 2: EXHIBIT i' LEGAL DESCRIPTION OF THE RIVERFRONT - DOWNTOWN URBAN RENEWAL PROJECT AREA BOUNDARY The Urban Renewal Area , hereinafter referred to as Urban Renewal Area or Project Area , includes all land in the City of Salem, County of Marion, State of Oregon, situated within the boundaries designated on the attached Land Use and Property Boundary Map (Exhibit 2 ) generally stated as follows : Beginning at the point of intersection of the center of the Willamette Slough in Township 7 South, Range 3 West of the Willamette Meridian, Marion County, Oregon, and the westerly extension of the South Line of Court Street Northeast, said point also being on the Now Existing City Limits Line; thence southerly and up the Center Line of the Willamette Slough to a point of Intersection of a line that is 100 feet north of' the North Line of State Street, if measured perpendicular there to; thence easterly and parallel to the North Line of said State Street, 150 feet more or less to the point of intersection of the ordinary low water level of the east bank of said Willamette Slough and/or River; thence southerly along the ordinary low water level of the said east bank of the Willamette Slough; 900 feet; thence South 390 57' 45" West , 360 feet more or less to a point on Minto Island, said point being South 840 57 ' 45" West, 280 feet more or less from a spike surveyed and monument by City of Salem and recorded in Marion County Survey Records No. 030067, said point being North 50 02 ' 15" West, 113.31 feet from a tack in lead in a retaining wall north bank of Pringle Creek; thence North 50 02 ' 15" West, 25 feet; thence South 840 57 ' 45" West, 150 feet; thence South 50 02 ' 15" East, 150 feet; thence North 840 57 ' 45" East , 150 feet ; thence North 50 02 ' 15" West , 25 feet ; thence North 840 57 ' 45" East , 280 feet more or less to a point on the low water mark on the east bank of said Willamette Slough and/or River; thence southerly along the low water mark of the Willamette Slough, 710 feet more or less to a point of inter- section of the westerly extension of the South Line of Bellevue Street South; thence easterly along the westerly extension of the South Line of said Bellevue Street South, 125 feet more or less to a point on the West Line of the Burlington Northern Railroad right-of-way; thence northerly along the West Line of said Burlington Northern Railroad right-of-way, 600 feet more or less to a point on the north bank of Pringle Creek; thence westerly along the north bank of said Pringle Creek to the point of Intersection of a line established by survey by the City of Salem, Survey No. 030067, Marion County Surveyor 's Files, Marion County, Oregon; thence North 220 27 ' 5011 , 75 feet more or less to a 5/8-inch iron rod and cap marked City of Salem; thence North 220 32 ' 10" West , 195 . 55 feet; thence North 220 27 ' 50" East, 381 . 57 feet ; thence South 690 49' 17" East , 295 feet more or less to a point on the West Line of Front Street Southeast ; thence southeasterly along the West Line of said Front Street Southeast , 525 feet more or less to the point of intersection of the West 25 Legal Description of the Riverfront-Downtown Page 2 Line of Commercial Street Southeast ; thence North 220 32 ' East along the West Line of said Commercial Street Southeast , 425 feet more or less to a point on the North Line of Ferry Street Southeast; thence easterly along the North Line of said Ferry Street Southeast to a point 'on the West Line of Church Street Southeast; thence northerly along the West Line of said Church Street Southeast to a point on the North Line of State Street; thence easterly along the North Line of State Street to a point on the East Line of Church Street Northeast; thence northerly along the East Line of said Church Street Northeast to a Point on the South Line of "D"Street Northeast; thence westerly along the South Line of said "D" Street Northeast and the westerly extension thereof to the West Line of a North-South Alley in Block 5 of Boise 's Second Addition to the City of Salem; thence north along the West Alley Line in Blocks 4 and 5 of said Boise's Second Addition and Block 5 of North Salem Addition to the South Line of Market Street Northeast; thence westerly along the South Line of said Market Street Northeast and the westerly extension thereof to the West Line of Front Street Northeast; thence southerly along the West Line of said Front Street Northeast to a Point on the South Line of Lot 8, Block 1, Mill Addition to Salem; thence westerly along the South Line of Lot 8 and westerly extension thereof to the center of the Willamette River; thence southerly along the center of the Willamette River to the point of beginning. 26 QrJC j• deo ero' ,100 0 . D o'o VGo'o 00 f� i�.i} ■ Q 'Vii:•:;::;: �:1 ■ ■ ■ :`■ 1y �[ at a am ❑C7 -'''1 INIVIS Ps Sir. y INOTITUTIONS XX ::: ■ Is9 :■ ■a • irAIKK s ..,... UNION :j ST. NO a rim :...":: INpUSTmie RION ST !f ; / � .•.` �, iNDUSTr,Y ❑7 t :�: •:: •:• ■ :::: CUTE ST. AI•AI�7M1•NTg RON �. :■ t RNI�CMC44 T :FWA •a. clIEWEaETA sv ■ .: . . . . . . : ,�.;��; iLIVr ftPR NT PART b was 0 •�M i..4 ❑©❑ . : .sem • • ■ • • • ■ - : se.�� MAJOK STIFF-!✓T D w r a a man 5TH ice•<., f # F t44=DIAL. dt� t�UNDAt�l' aQ ► � * ILUSE O o �f•GCM6�If66 n ,- �� m � 1 t. � � r•� � mmnn�r ■ l "P_ IJ�,LI f�CC � •N N • i PART 2 �'' �' �;% 'x ' '�y '' �. _ (■ryy ,,`I,, EXH1517 J�I�I,�,��111' (1�L SII �I��►4 IC7 J�� , �4W� II'tir L L__ unwnsr Q T Ll p Q � � o p LEU] D � Q � a D � � D tP�S1R1Af11 o OW% couKr D 03 t3 Cl L b Q 4 Ob g mo Isis a n � a � o 0 do D o .nay s4' I i AN INTRODUCTION TO URBAN RENEWAL IN OREGON League of Oregon Cities 1201 Court Street N.E. P.O. Box 928 Salem, Oregon 97308 September, 1979 M FOREWORD Urban renewal is a device that has received mixed reviews from its users and observers. As cities have cast about desperately for tools to use in renewing deteriorated areas and bringing new vitality and economic health to their communities, urban renewal has become an important tool for achiev- ing goals not possible through any other device. On the other hand, some critics have suggested that it is over used or mis-used--sometimes at the expense of other taxing districts. Those claims and counter claims led to a thorough review of urban renewal statutes during the 1977 interim and some modifications to the statutes by the 1979 legislature. This publication is designed to review changes made to urban renewal statutes by the 1979 legislature. In addition, it outlines for cities that may be considering urban renewal activities the qualifications that must be met and procedures that must be followed in operating an urban renewal agency under Oregon statutes. The cities presently operating urban renewal agencies were active partici- pants in the thoughtful and constructive review of the urban renewal statutes during the interim and during the 1979 legislature. Those same cities were most helpful in reviewing and offering suggestions for improve- ments in this publication. Noel Klein, League senior staff associate, was responsible for the preparation of this publication. He also coordinated s� the League's activities before the interim and 1979 legislative committees dealing with the urban renewal statutes. We hope that this publication will be of assistance to cities and others interested in Oregon's urban renewal process. Suggestions from readers concerning improvements that could be made to the next draft of this manual are, as always, welcome at the League office. Sincerely, Stephen C. Bauer Executive Director November, 1979 INTRODUCTION Urban renewal , as a program aimed directly at eliminating conditions of slums, blight and deterioration in urban areas, grew out of the Federal Housing Act of 1949. The federal program provided a means of financing renewal efforts through loans and grants to public agencies. While the federal government provided the funds it also mandated very detailed regulations that specifically outlined how the program was to operate. In 1951 the Oregon legislature approved, in ORS Chapter 457, a grant of power to housing authorities to become involved in the urban renewal process. It did not attempt to duplicate or pre-empt the existing federal guidelines governing operation of a program. In 1957 the power to function as an urban renewal agency was extended to city councils, county commissions or separate bodies appointed by the city or county. Almost all renewal projects in the state were federally assisted until /r a the passage of a constitutional amendment in Oregon in 1960, authorizing the use of tax increment financing, increased local resources available for urban renewal activities. Passage of the Federal Housing and Com- munity Development Act of 1974 phased out the direct federal involvement in urban renewal programs. Although renewal activities can still be financed using community development block grant or other federal funds, the federal rules and regulations which governed renewal projects and which supported ORS Chapter 457 were repealed with the passage of the 1974 Act. In response to claims that some public agencies were using tax increment financing in an inappropriate manner, the 1977 Legislature directed an interim legislative committee to study the whole area of urban renewal and tax increment financing and to report back to the 1979 session. The interim study led to the introduction of HB 2083 which, in the form it was finally approved by the Legislature (Chapter 621 Or. Laws 1979) effective October 3, 1979, substantially rewrites the urban renewal statues in Oregon to provide statutory direction in the formation and operation of renewal agencies. The purpose of this report is to outline what is now required in order to form an urban renewal agency and identify the constraints under which such an agency will operate. The 1979 legislature also passed a major property tax relief program, a segment of which calls for a five percent limit on annual increases in the statewide assessed valuation of all property in the state. This may limit the annual "increment" or tax revenue available to a renewal agency, particularly if tax rates remain constant or continue to decrease follow- ing the trend of recent years. The five percent limitation applies to values statewide and it will still be possible for property in different areas to experience annual increases in value well in excess of five per- cent. Given the assessment limitation, action by taxpayers in approving higher levies can only result in higher tax rates which may offset the slowdown in assessed value increases in the renewal area. Tax initiative measures to be placed on the November, 1980, general election ballot which propose to greatly restrict increases in both assessed values and the tax rate pose a greater threat to the future of urban renewal financing. Cities in Oregon that have established urban renewal agencies include Portland, Eugene, Salem, Springfield, Beaverton, Newport, Coos Bay, Toledo, Cascade Locks, Albany, Tualatin, and Cottage Grove. The League acknowledges the efforts and assistance of several local and state officials and interested individuals who participated in a review of the report and whose suggestions and guidance have guaranteed a better product. i 7 BACKGROUND WHY URBAN RENEWAL? Oregon's urban renewal laws are contained, for the most part, in ORS Chapter 457. The need for such a law is stated in ORS 457.020:1 "457. 020. It hereby is found and declared: (1) That there exist within the state blighted areas. (2) That such areas impair economic values and tax revenues. (3) That such areas cause an increase in and spread of disease and crime and constitute a menace to the health, safety, morals and welfare of the residents of the state and that these conditions. necessitate excessive and disproportionate expenditures of public funds for crime prevention and punishment, public health, safety and welfare, fire and accident protection and other public services and facilities. (4) That certain blighted areas may require acquisition and clearance since the prevailing condition of decay may_make impracti- cable the reclamation of the area by conservation or rehabilitation, but other areas or portions thereof may be susceptible of conservation or rehabilitation in such manner that the conditions and evils mentioned in subsections (1), (2) and (3) of this section may be eliminated, remedied or prevented and that such areas should, if possible, be conserved and rehabilitated through appropriate public action and the cooperation and voluntary action of the owners and tenants of property in such areas. (5) That the acquisition, conservation, rehabilitation, redevelop- ment, clearance, replanning and preparation for rebuilding of these areas, and the prevention or the reduction of blight and its causes, are public uses and purposes for which public money may be spent and private property acquired and are governmental functions of state concern. (6) That there are also certain areas where the condition of the title, the diverse ownership of the land to be assembled, the street or lot layouts or other conditions prevent a proper develop- ment of the land, and that it is in the public interest that such areas, as well as blighted areas, be acquired by eminent domain and made available for sound and wholesome development in accordance with a redevelopment or urban renewal plan, and that the exercise of the power of eminent domain and the financing of the acquisition and prep- aration of land by a public agency for such redevelopment or urban renewal is likewise a public use and purpose. (7) That redevelopment and urban renewal activities will stimulate residential construction which is closely correlated with general economic activity; that undertakings authorized by this chapter will aid the production of better housing and more desirable neighborhood and community development at lower costs and will make possible a more stable and larger volume of residential construction, which will assist materially in maintaining full employment,. (8) That the necessity in the public interest for this chapter is a matter of legislative determination. " 1 . ORS numbers refer to section numbers prior to the incorporation of the 1979 laws into the statutes. As a result of the changes some of these section numbers may be altered when the 1979 laws are published in December, 1979. -1- r x This section clearly expresses legislative intent for the direct involvement of the public sector, even to the extent of using its powers of eminent domain, to bring about the elimination of blighted areas in the state. WHAT IS A BLIGHTED AREA? ORS 457.010 offers the following definition: "457.010. (1) "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 or other 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 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, which are unfit or unsafe to occupy for those purposes because of any one or a combination of the follow- ing 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) Age, 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 Zots in disregard of contours, W drainage and other physical characteristics of the terrain and sur- rounding conditions; (e) The existence of inadequate streets and other rights-of-way-, open spaces and utilities; (f) The existence of property or Zots or other areas which are subject to inundation by water; (g) A prevaZence of depreciated values, impaired investments and social and economic maladjustments 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 Zack of proper utilization of areas, resulting in a stagnant and unproductive condition of Zand poten- tiaZZy useful and valuable for contributing to the public health, safety, and welfare; 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. " This section identifies a rather broad list of conditions , any one of which would, on its face, identify the area as "blighted". It would, however, be necessary to carefully analyze and thoroughly document that one, or more than one, of these conditions exist before concluding that the area is blighted. -2- The Oregon Supreme Court in Foeller v. Housin Authority of Portland, 198, OR. 205, 256 P. 2d 752 (1954) deliberated at length on what constituted blight and deterioration and should be considered required reading prior to any attempt to document the existence of blight. HOW DOES TAX INCREMENT FINANCING WORK? Once the public benefit of eliminating blighting conditions is accepted , the tax increment financing process can be seen as a logical method of financing the renewal program. The theory of tax increment financing is that the public cost of undertaking the renewal program should be paid from the increased property taxes which result from a successful program. The renewal agency undertakes to improve public facilities in the area and eliminate the blighting conditions on private property by encouraging private investment in new develop- ment and rehabilitation. As the private investment occurs, the increased property taxes collected from the urban renewal area is dedicated to the urbar renewal agency to repay the initial public investment. This dedication of the increased taxes continues until the agency has received enough money to repay the original investment and any interest accrued during the interim. - Thereafter, the in- creased taxes would be paid to the regular governmental districts levying a property tax with the result being a decrease in the taxes levied against all other property in those districts . Mechanically, this is achieved by the county assessor placing a "freeze" on the value of property in the renewal area (ORS 457.430) . Until the "freeze" is lifted, tax rates for all districts levying taxes in the area are based on the frozen assessed value but the rate is, in fact, applied to the total current assessed value so property owners in the renewal area are treated exactly like all other tax payers. This produces an excess between the amount of taxes collected and the amount the tax revenues would have been at the frozen or original value. The surplus is the "increment" and is "to be paid into a special fund of the agency or shall be used to pay principal and interest on indebtedness incurred by the agency to finance or refinance the carrying out of the urban renewal plan." (ORS 457.440) "Indebtedness" has been given a rather broad construction and some agencies have utilized the increment to finance redevelopment on a pay-as-you-go basis . GRAPHIC ILLUSTRATION OF A REDEVELOPMENT PROJECT USING TAX INCREMENT FINANCING Actual Value Tax Increment (the proportion , of taxes collected Assessed on the value of the increment goes Valuation to the special / fund of the urban in renewal agency) Dollars r"Frozen Base" The taxes collecte, on this portion 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 of the value go back to each tax- This area represents the decline in actual value that may taxing body. occur during periods in the project when improvements are cleared for new construction, -3- One way to view tax increment financing is to see it as a form of interim financing, provided by all taxing districts , to make available public invest- ment funds that will realize future economic pay off for the taxpayers in those districts. Looked at strictly within the time frame of a renewal program, the program can be viewed as a subsidy to the existing property owners and new developers within the renewal area. The agency does , after all , invest substantial money in up- grading the public facilities in the area and in providing amenities not pre- viously existing. When the agency sells land it has acquired, the sale price is based on the controls included in the renewal plan and the type of develop- ment desired by the plan. A developer willing to accept these controls conse- quently pays a fair value for the property but this value is frequently less than the cost of other - less restrictive- property in the community. Looked at from a larger view, however, the subsidy may be more apparent than real . Most areas qualifying as blighted have a history of receiving a lower level of public support for utilities, schools, parks,' playgrounds, and streets than other parts of the community. At the same time these areas require an abnormally high level of public services such as police and fire protection and social services. In short, these areas are a financial drain on the public purse for some services while they are left out of the public allocation of money for improvements and amenities. Through the urban renewal process, a community can achieve long term budget sav- ings in many public services to an area , and provide the public facilities and improvements that are needed in order to encourage persons and businesses to de- cide to live and work in the areas. In addition to increased property tax reve- nues , the community receives very real - but not quantifiable - financial and social benefits by having an area restored to a desireable, active neighborhood. ?3 With the increased recognition of the costs of urban sprawl and suburban develop- ment , communities cannot, in fact, afford to have urban land improperly used and underdeveloped. The tax increment financing process recognizes the increased property tax rev- enues which will result from a successful urban renewal program and temporarily earmarks those revenues for the payment of the program's cost. Tax increment financing of renewal programs has been used most successfully in projects which primarily involve the revitalization of business districts. As a consequence, urban renewal plans usually provide for a significant amount of commercial redevelopment in the area. The larger the amount of private invest- ment that can be attracted to the renewal area, the larger will be the increase in assessed values. When this occurs, public improvements can be paid for and property returned to the tax rolls at its current market value more rapidly than if the project included housing redevelopment only. The impact of inflation in recent years has meant that assessed values in the renewal area have grown as a result of both new assessed value added to the area and inflationary increases in values . Offsetting this growth has been a steadily decreasing tax rate in many communities . -4- a THE URBAN RENEWAL AGENCY CREATION ORS 457. 130 creates in each city and county in the state a public body corporate and politic to be known as the "urban renewal agency" of the municipality. Prior to its exercising any power, however, the governing body must, by non-emergency ordinance, declare that there are blighted areas in the municipality and that a need exists for an urban renewal agency to function in the municipality. By specifically requiring this declaration to be made by non-emergency ordinance, the legislature sought to provide for the use of local initiative and referendum powers. The governing body may elect to have the powers -of the agency exercised in any of, three ways: (a) by a housing authority of the municipality (b) by appointing a board or commission composed of not less than three members (c) by the governing body itself (its actions as the renewal agency are actions of the agency only and not those of the governing body) How these powers will be exercised must be identified in the ordinance and may be subsequently transferred, by ordinance, to one of the other bodies authorized to exercise those powers. ORS 457. 160 provides for the creation of an urban renewal agency when the govern- ing body certifies an area of the municipality is in need of redevelopment or rehabilitation following a flood, fire, earthquake, storm or other catastrophe. The Governor must first certify the need for disaster assistance under Public Law 875, Eighty-first Congress, 64 Stat. 1109, or other federal law. In these circumstances the governing body may declare the need for a renewal agency and approve a plan and projects in the area without regard to the normal provisions requiring conformance to any comprehensive or economic development plan for the municipality and requiring findings that the renewal area be blighted. POWERS General . The urban renewal agency is granted general powers in ORS 457.180 that, while limited in scope, are not limited to urban renewal project areas and therefore may be undertaken anywhere within the municipality. "They permit an urban renewal agency a means of planning and developing programs of a limited nature without th5 formality and the required plans and approvals of an urban renewal project." "457.180. An urban renewal agency, in addition to its other powers, may: (1) Make plans for carrying out a program of voluntary repair and rehabilitation of buildings and improvements. (2) Make plans for the enforcement of lazes, codes and .regulations relating to: (a) The use of land. (b) The use and occupancy of buildings and improvements. (c) The repair, rehabilitation, demolition or removal of build- ings and improvements. 16 (3) Make plans for the relocation of persons and property dis- placed by an urban renewal project. 2. Oliver I . Norville, Urban Renewal , Land Use Handbook, Oregon State Bar Committee on Continuing Legal Education, 1976, page 25-5- -5- r i (4) Make preliminary plans outlining urban renewal activities for neighborhoods to embrace two or more urban renewal areas. (5) Conduct preliminary surveys to determine if the undertaking and carrying out of an urban renewal project is feasible. I (6) DeveZop, test and report methods and techniques and carry out demonstrations and other activities for the prevention and the elimination of urban blight. (7) Engage in any other housing or community development activi- ties specifically delegated to it by the governing body of the munici- paZity including but not limited to Land acquisition and dispostion, conservation and rehabilitation, residential or business relocation, construction, Leasing or management of housing, and the making of grants and loans from any available source. " + Within an Urban Renewal Project Area. The urban renewal agency is provided with ' very broad powers to carry out an approved urban renewal plan. These powers are enumerated in ORS 457. 170. Under this section the agency may plan or undertake urban renewal projects to implement the renewal plan. - It is important to note that the agency's powers may only be exercised following approval of the renewal plan by the governing body of the municipality. The agency is therefore only the instrument through which the projects are performed--ultimate control over the undertaking of an urban renewal project rests with the elected governing body of the municipality. 11457.170. An urban renewal agency may plan or undertake any urban renewal project to carry out an approved urban renewal plan. In planning or undertaking an urban renewal project, the urban renewal agency has the power: (1) To carry out any work or undertaking and exercise any powers which a housing authority is authorized to perform or exercise under ORS 456.055 to 456. 230, subject to the provisions of this chapter pro- vided, however, that ORS 456.155 and 456.160 do not Limit the power of an agency in event of a default by a purchaser or Lessee of Land in an urban renewal plan to acquire property and operate it free from the restrictions in those sections. (2) To carry out any rehabilitation or conservation work in an urban renewal area. (3) To acquire real property, by condemnation if necessary, when needed to carry out the plan. (4) To clear any areas acquired, including the demolition, re- movaZ or rehabilitation of buildings and improvements. (5) To instaZZ, construct or reconstruct streets, utilities and site improvements in accordance with the urban renewal plan. (6) To carry out plans for a program of the voluntary repair and rehabilitation of buildings or other improvements in an urban renewal area in accordance with the urban renewal plan. (7) To assist in relocating persons living in, and property situated in, the urban renewal area in accordance with the approved urban renewal plan and to make relocation payments. (8) To dispose of, including by sale or Lease, any property or part thereof acquired in the urban renewal area in accordance with the approved urban renewal plan. (9) To plan, undertake and carry out neighborhood deveZopment pro- grams consisting of urban renewal project undertakings in one or more urban renewal areas which are planned and carried out on the basis of annual increments in accordance with the provisions of this chapter for planning and carrying out urban renewal plans. -6- N: Y (10) To accompZish a combination of the things Zisted in this section to carry out an urban renewaZ pZan. " TERMINATION If the governing body of a municipality which has an urban renewal agency finds that there is no longer any need for its existence it may, by ordinance , termi- nate the agency and transfer its facilities, files and personnel to the munici- pality. Should this occur the municipality is then, for purposes of legal actions, contracts or obligations of the agency, considered a continuation of the agency. However, termination is not allowed until all indebtedness, to which a portion of taxes levied in the renewal area is irrevocably pledged, is fully paid. -7- V � THE URBAN RENEWAL PLAN PREPARATION Once established the urban renewal agency may formulate a series of proposals for eliminating blighted areas in the municipality. Activity in these "urban renewal areas" can only begin following the preparation and formal adoption of an urban renewal plan that sets out in some detail the activities or "urban renewal projects" that will be undertaken by the agency in the renewal areas . The plan may consist of several projects in-each area and may include a number of different areas , although normally each renewal area is the subject of a separate plan. In preparing the urban renewal plan the agency must provide for public involve- ment in all stages of its development. Any plan proposed by an agency must contain, at a minimum, the following information: (a) A description of each urban renewal project to be undertaken; (b) An outline for the development, redevelopment, improvements, land acquisition, demolition and removal of structures , clearance, rehabilitation or conservation of the urban renewal areas of the plan; (c) A map and legal description of the urban renewal areas of the plan; (d) An explanation of its relationship to definite local objectives regarding appropriate land uses and improved traffic, public transporta- tion, public utilities, recreational and community facilities and other public improvements ; (e) An indication of proposed land uses, maximum densities and building requirements for each urban renewal area; (f) 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 of the plan; (g) An indication of which real property may be acquired and the anticipated disposition of said real property, whether by retention, resale, lease or other legal use, together with an estimated time schedule for such acquisition and disposition; and (h) A description of what type of possible future amendments to the plan are so substantial as to require the same notice, hearing and approval procedure required of the original plan. THE ACCOMPANYING REPORT While the renewal plan identifies the impact of proposed renewal activities pri- marily in terms of land use changes, the law also requires the preparation of supplemental information that must be incorporated in a formal report to accom- pany the plan. The report contains financial , budgetary and other information necessary to develop an understanding of how the plan will be put into effect. Since these factors are more subject to change than proposed land use patterns, they are set aside from the plan itself so that modifications may be made. The accompanying report must contain: (a) A description of physical , social and economic conditions in the urban renewal areas of the plan and the expected impact , including the fiscal impact, of the plan in light of added services or increased population; (b) Reasons for selection of each urban renewal area in the plan ; -8- (c) The relationship between each project to be undertaken under the plan and the existing conditions in the urban renewal area; (d) The estimated total cost of each p-oject and the sources of moneys to pay such costs ; (e) The anticipated completion date for each project; (f) The estimated amount of money required in each urban renewal area under ORS 457.420 to 457.440 (tax increment financing) , and the anticipated year in which indebtedness will be retired or otherwise pro- vided for under ORS 457.440; (g) A financial analysis of the plan with sufficient information to determine feasibility; and (h) A relocation report which shall include: (A) An analysis of existing residents or businesses required to re- locate permanently or temporarily as z result of agency actions which might be taken to implement the plan. (B) 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 to 281 . 105 ; and (C) An enumeration,. by cost range, of the existing housing units in the urban renewal areas of the plan to be destroyed or altered and new units to be added. ADOPTION Once prepared the urban renewal plan and accompanying report must be forwarded to the planning commission of the municipality for recommendations, prior to presentation to the governing body for approval . . No plan can be carried out until it is approved by the governing body. If the plan proposes urban renewal areas that go beyond the city boundaries then the governing body of the other city or county in which any portion of the urban renewal area is situated must also approve the plan before it can be implemented. t sus When the governing body receives the proposed urban renewal plan and report from the urban renewal agency, it must secure public testimony on the plan. After considering that testimony and the planning commission recommendations , if any, it may approve the renewal plan, by non-emergency ordinance subject to local initiative action. The ordinance will incorporate the plan by reference and include determinations and findings by the governing body that: (1) Each urban renewal area is blighted; (2) The rehabilitation and redevelopment is necessary to protect the public health, safety or welfare of the municipality; (3) The urban renewal plan conforms to the comprehensive plan and economic development plan, if any, of the municipality as a whole and provides an outline for accomplishing the urban renewal projects the urban renewal plan proposes ; (4) Provision has been made to house displaced persons within their financial means in accordance with ORS 281 .045 to 281 . 105 and, except in the relocation of elderly or handicapped individuals, without displacing on priority lists persons already waiting for existing federally subsidized housing ; (5) If acquisition of real property is provided for, that it is necessary; (6) Adoption and carrying out of the urban renewal plan is economi- cally sound and feasible; and (7) The municipality shall assume and complete any activities pre- scribed it by the urban renewal plan. -9- r Notice of adoption of the urban renewal plan and a statement that the plan will be conclusively presumed valid for all purposes unless challenged within 90 days of its adoption must be published within 4 days of its adoption. The notice is tD be published in a newspaper having the greatest circulation in the municipality aid which is published in the municipality. If no newspaper is published within the municipality, then the notice must be published in the newspaper, having greatest circulation in the municipality, which is published nearest the municipality. A copy of the ordinance approved by the municipality is then sent to the re- newal agency. The plan is then recorded by the agency with the recording officer of each county in which any portion of an urban renewal area within the plan is situated, AMENDMENTS TO THE PLAN The urban renewal plan should not be construed as a document cast in concrete. As. renewal projects develop it may be discovered that there now exists certain circumstances that were not perceived when the plan was originally formulated. A certain degree of flexibility will help make the renewal project more respon- sive to new conditions as they occur. The urban renewal plan itself is required to describe the type of possible future amendments to the plan that are so substantial as to require the same notice, hearing and approval procedures required for adoption of the original plan. Amendments to the plan may not add any more than 20 percent of the total land area of the original plan. FINANCING THE PLAN While the use of tax increment financing represents the major source of finance for most renewal projects in the state, the outlays made by the urban renewal agency may come from many sources. Federal grants may be involved. Revenue bonds, assessments$, general fund monies , short term loans and state funds in certain circumstances, e.g. , highway funds on streets in the renewal area, are all possible sources of revenue. The municipality in which an urban renewal agency is established may exercise any of its lawful powers to assist in the planning and carrying out of an urban - renewal plan. Specific mention is made in the urban renewal statutes about the municipality's ability to issue general obligation bonds for these purposes and the ability of the urban renewal agency to assume payment of the bonds from whatever revenues it has available. The general obligation bonds would of course be subject to approval by a vote of the people before they could be issued. However, interest rates on general obligation bonds have traditionally been lower than on tax increment bonds. ORS 457. 190 authorizes the agency to borrow money and accept advances , loans , grants and other forms of financial assistance from the federal government , the state, county or other public body, or from any sources public or private, for the purposes of undertaking and carrying out urban renewal projects . The agency may "do all things necessary or desirable to secure such financial aid." (ORS 457. 190) -10- A Article IX, Section I (c) , of the Oregon Constitution adopted by the people in 1960 "permitted the Legislature to provide that any increase in taxes resulting from an increase in the ad valorem taxes, imposed by any and all governemnts levying property taxes, in an urban renewal prcject could be used to pay for any indebtedness incurred for the project.113 In 1961 the legislature authorized the use of tax increment financing for urban renewal projects. An explanation of how tax increment financing works is found on page 3 of this report. Once an urban renewal plan has been approved and the county assessor has pro- vided for the division of taxes to allocate the "increment" to the renewal agency, tax increment or tax allocation bonds may be issued. Unless authorized by the voters and having a "fall back" provision on the municipality's general taxing powers, these bonds are not general obligation bonds and are secured en- tirely by the increment in dollars to be received as a result of the growth in assessed values in the renewal area. The/ do not require a vote of the people before issuance and do not violate existi,ig statutory, constitutional or charter debt limitations of the municipality. Interest rates on the bonds are usually higher than General Obligation bonds. As with other municipal bonds their marketability is increased by the fact that interest paid to the purchasers of the bonds is exempt from state and federal taxation. The sale of tax increment bonds usually involves : "Obtaining, in behalf of the issuer , a feasibility analysis as to the projection of the increment that will be available to service the bonds, which is usually prepared by an independent consultant; An official statement by the issuer, to all prospective bond purchasers , which makes the feasibility study available; Mandatory full disclosure of all material information that may affect payment of bonds ; and Advertising the bonds publicly."4 Purchase of the bonds is usually made by investment banking firms that then market the bonds for public purchase. National banks may acquire them for their own portfolio only since they are prevented by federal regulation from . dealing as brokers in anything but general obligation bonds . Finally, when sufficient funds are available to the renewal agency to pay any indebtedness incurred in carrying out the projects under the renewal plan, ORS 457.450 requires the agency to notify the assessor and tax allocations to the agency will then stop. Any surplus tax funds of the agency will be returned to the county treasurer for distribution among the various taxing bodies. i The 1979 legislature prohibited the use of tax increment financing in any urban renewal plan adopted after October 3, 1979, if: (a) For municipalities having a population of more than 50,000, according to the latest state census : (A) The assessed value for the urban renewal areas of the plan, when added to the total assessed value previously certified by the assessor 3. Oliver I . Norville, Ibid. , 25-12 4. Report of the Joint Interim Task Force on Urban Renewal Financing , State of Oregon, December, 1979, page 17. -11- + s for other urban renewal plans of the municipality for which a division of ad valorem taxes is provided exceeds a figure equal to 15 percent of the total assessed value of that municipality, exclusive of any increased assessed value for other urban renewal areas ; or (B) The urban renewal areas of the plan when added to the areas in- cluded in other urban renewal plans of the municipality providing for a division of ad valorem taxes, exceed a figure equal to 15 percent of the total land area of that municipality. (b) For municipalities having a population of less than 50,000 accord ing the latest state census : (A) The assessed value for the urban renewal areas of the plan, when added to the total assessed value previously certified by the assessor for other urban renewal plans of the municipality for which a division of ad valorem taxes is provided exceeds a figure equal to 25 percent of the total assessed value of that municipality, exclusive of any increased assessed value for other urban renewal areas; or (B) The urban renewal areas of the plan, when added to the areas included in other urban renewal plans of the municipality providing for a division of ad valorem taxes, exceed a figure equal to 25 percent of the total land area of that municipality. ADMINISTERING THE PLAN The urban renewal agency will be required to prepare a statement, by August 1 of each year, that contains the following information: (a) The amount of money actually received during the previous fiscal year as "tax increment financing" revenue from the county assessor and the amount of indebtedness incurred from obtaining loans and advances in carrying out the urban renewal plan. (b) The purposes and amounts for which these funds were spent in the previous fiscal year. (c) An estimate of the amount to be received from these two sources in the current fiscal year. (d) A budget showing the purposes and amounts for which estimated revenues from these sources will be spent in the current year. (e) An analysis of the impact, if any, of carrying out the urban renewal plan on the tax rate for the previous year for all taxing bodies that levy a tax on property inside urban renewal areas . This statement is to be filed with the governing body of the municipality. Notice must be published that it is on file at the municipality and the agency for inspection by interested persons. The notice is to be published once a week for not less than two successive weeks before September 1 in the newspaper having the greatest circulation in the municipality and which is published in the municipality. The notice will summarize the information under (a) to (d) above but will have to set forth in full the information under paragraph (e) relating to the impact, if any, on the tax rate of other jurisdictions . (See Appendix) In addition to these requirements the provisions of the local budget and audit law apply to urban renewal agencies . -12- iu�rr 'wrr,,` URBAN RENEWAL PROJECTS TYPES OF PROJECTS The law imposes no constraint! on the type of project that can be carried out in an urban renewal area. It does require the urban renewal plan to contain a description of each renewal project to be undertaken. Once the plan is properly ! approved, the renewal agency then has a number of powers enumerated in ORS 457. 170 to carry out proposed projects. i In deciding the types of projects that should be included in an urban renewal plan it is important to plan for a joint role between public and private re- development. The plan should ensure as much as possible, particularly if tax increment financing is to be used, that projects are capable of providing a favorable economic return to the taxing bodies involved. The -focus of urban renewal is not only to eliminate conditions of blight but also to bring about the type of redevelopmert that will prevent these conditions from recurring. One prescription for these roles is as follows. "The function of government in urban renewal is to- identify the areas in need, prepare plans for proper use of the land, and place controls on the land to assure proper redevelopment. In addition, government makes public improvements in accordance with the plans. The function of private enterprise is to develop and use the land in accordance with the plans. The controls are placed on the lands through restric- tive covenants placed on property temporarily acquired by government and then sold to developers, by enforcement of zoning, building and other codes, and by .voluntary compliance."5 In this context then: "urban renewal may include anything from total or almost total clearance and new development (redevelopment) to conservation or rehabilitation " involving little or no clearance.4 ACQUISITION AND DISPOSAL OF LAND An urban renewal agency may acquire real property, by condemnation if necessary , to carry out the purposes of the plan. It may clear any area acquired, includ- ing the demolition, removal or rehabilitation of buildings and improvements. It may install , construct or reconstruct streets , utilities and site improvements in accordance with the plan. It may also dispose of, including by sale or lease, any property or part there- of acquired in renewal areas , in accordance with the approved renewal plan. ORS 457.230 requires land in an urban renewal project to be made available for F use by private enterprise or public agencies. It is to be made available at a value the agency determines as its fair reuse value--that is a value the agency determines will bring about its development, redevelopment, clearance, conserva- tion, or rehabilitation in accordance with the renewal plan. The fair reuse value may not necessarily reflect normal market value based on a "highest and best use" approach since the agency may constrain the rights of the purchaser by requiring (a) that the land be used for purposes designated in the renewal plan, and (b) that building of improvements must begin within a certain time period. 5. Oliver I . Norville, Ibid. , page 25-3 6. Ibid, page 25-3 -13- R y RELOCATION An urban renewal agency, in the exercise of its land acquisition powers, may face the problem of relocating persons or businesses who must be displaced from the acquired land. The agency must assist in this relocation and make relocation payments where this occurs. ORS Chapter 281 specifies the type of assistance and payments that must be provided to those displaced. The .renewal plan itself must describe the methods to be used for the temporary or permanent relocation of persons and businesses. The accompanying report to the plan must contain a detailed relocation report that analyses existing residences and businesses required to relocate either permanently or temporarily, a description of the methods to be used to relocate them and an enumeration, by cost range, of the existing housing units in the renewal area of the plan to be destroyed or altered and the new units to be added. In the ordinance adopting the renewal plan the governing body of the municipality must make determinations and findings that provision has been made to house displaced persons within their financial means and, except in the relocation of elderly or handicapped individuals, without displacing on priority lists persons already waiting for existing federal subsidized housing. -14- u � ''+rrr�' 'W�Ir►' CONCLUSION By establishing an urban renewal agency, a number of Oregon :ities have been able to effectively eliminate blighted areas in the municipality. To the extent that blight has been replaced by prosperity, benefits accrue to the residents and taxpayers of the municipality in which this occurs. They also accrue to taxpayers in all taxing districts that levy taxes on the renewed property be- cause those districts are eventually able to tax the increased value in the area. Notwithstanding these benefits city officials contemplating the use of the tax increment financing to carry out the goals of an urban renewal plan should be acutely sensitive to the fact that: (a) It is a financing tool unlike any other avai able to the city. In more traditional financing arrangements the city would provide total financing for the project even though schools, the county and other taxing districts would all receive a portion bf the tax increment generated by the project. Tax increment financing requires all governments that share in the fiscal benefits of the higher tax base produced in the renewal area to also share in the cost of the develop- ment project. (b) The law allows the governing body of the municipality in which the renewal agency is formed to be the sole decider of how renewal pro- grams will be funded. If tax increment financing is used, that de- cision then commits all the other taxing bodies to share in the pro- ject development costs. (c) The most successful renewal programs have been those where time and effort has been taken to educate affected governing bodies about the benefits the program has for their district. Consultation with and support from the other taxing bodies , rather than the unilateral ex- ercise of power granted in the renewal law, has been the distinguish- ing factor between good and not so successful urban renewal efforts . (d) The county assessors office will be faced with a substantial work- load increase if tax increment financing is to be used. The assessor will have to prepare a certification of all taxable property in the renewal area and this will usually require a manual tabulation of individual lot values for real property, extensive research by the assessor of personal property accounts, and work by the state Depart- ment of Revenue in determining the value of private utilities. Since at least the real property estimates will probably be needed to make the financial analysis required prior to the adoption of the plan , it will be wise to work closely with and assist the county assessor in the preliminary stages of the urban renewal effort. Enthusiasm for the establishment and operation of urban renewal agencies has never been universal and communities should ensure that citizens have ample opportunity to review and discuss the proposed plan before its adoption. By drawing on the experience of those cities with existing programs, cities may be able to see more clearly the thorns as well as the roses associated with the urban renewal process. -15- APPENDIX TAX IMPACT OF URBAN RENEWAL ON TAXING BODIES ORS Chapter 457 requires an urban renewal agency to prepare, by August 1 each year, an analysis of the impact, if any, of carrying out the urban renewal plan on the tax rate for the previous year for all taxing bodies that levy a tax on property inside urban renewal areas. This information must be published in the manner described on page 12 of this report. What Is The Fiscal Impact of Urban Renewal on the Tax Rate of a Taxing Body? In order to understand the impact of urban renewal it is first necessary to con- sider how the tax rate for each taxing body is developed. The taxes to be levied by a taxing body represent the difference between the expenditure plans of that body and its available revenues from all other sources. The total amourt of taxes required to "balance the budget" (the tax levy) is divided by the assessed value of all taxable property within that taxing body to arrive at a tax rate per $1 ,000 of assessed value. This rate is then applied to determine the taxes to be paid on any one parcel of property. Therefore the tax rate of any taxing body levying taxes on property inside urban renewal areas may be impacted by renewal activities that affect either (a) the amount of tax levy or (b) the level of assessed value available to that body. For example tax levy supported expenditures made by a taxing body, within the renewal area, that are called for in the renewal plan or report, or are otherwise necessary to carry out the renewal plan will make the levy larger than it would be otherwise. On the other hand carrying out of the renewal plan may well decrease the expenditure of tax dollars needed to support the previously blighted area. These amounts are often difficult to quantify but if they can be identified and measured in terms of impact on the tax rate, the information should be added to the tax rate impact analysis format suggested in this appendix. The Impact of Tax Increment Financing If the agency uses the tax increment financing powers provided by ORS Chapter 457 then the amount of assessed value available for use by the taxing body is different than it would be otherwise. As described on page 3 increases in assessed values in the renewal area, over and above the "frozen" level of values available for use by the taxing bodies, are first reserved to pay for the costs of public improve- ments in the renewal area. I.t is often suggested that the "tax" impact of urban renewal can be measured by calculating the tax rate using all the assessed value in the renewal area and then comparing the result with the tax rate calculated using only the "frozen" value. Unfortunately this produces an artificial distinc- tion rather akin to the parable of the chicken and the egg. Tax rates for each of the taxing bodies in a renewal area might drop if the captured assessed value in- creases were immediately released. However in a legitimate renewal program, if the increases were not initially set aside to finance the initial development there would likely be no program, no signigicant increases in assessed values in the area and only a continuing tax drain on all taxing bodies to support the blighted area. When the renewal program is completely paid for and the "freeze" on assessed values lifted there will be a continuing favorable impact on the tax rate of all taxing bodies and any analysis of tax rate impacts should reflect this effect. In reviewing the tax rate impact analysis, citizens should be advised that the increases in assessed value within urban renewal areas result from a variety of sources , including the construction or improvement of buildings, increased value -16- due to improved public faciltiies and services or improvement to the area's total environment, and periodic reassessments Lased upon market analysis of the value of property. The amount and specific sources of the increased assessed value varies with each urban renewal area. A true analysis of the impact of an urban renewal program on the tax rate of affected districts would need to consider the specific combination of sources of the increase for that program. -17- SUGGESTED FORMAT FOR ANALYZING TAX RATE IMPACT OF URBAN RENEWAL 1 . The following taxing bodies levied taxes in urban renewal areas of the in 19 name of agency Taxing Body (list all taxing bodies) Tax Rate 2. These tax rates were calculated as follows : ' MODIFIED ASSESSED TAXING BODY TAX LEVY - VALUEI = TAX RATE list all taxing bodies) 3.. The assessed value of property in the area(s) has increased from $ when the area(s) was/were formed to $ as of January 1 , 19 4. In 19 the urban renewal agency received $ from taxes calculated as follows: URBAN RENEWAL INCREASED A.V. TOTAL TAX REVENUE FOR AREA IN RENEWAL AREA X TAX RATE = RENEWAL AGENCY s 5. This revenue received by the agency is used to repay indebtedness incurred in carrying out the urban renewal plan(s) . The outstanding obligations of the as at June 30, 19 amounted. to $ name of agency _ Had these obligations been repaid -in full or otherwise provided for and the increase in A.V. of $ been included to the rate calculations in 19 tax rates would have been as follows : TAXING BODY (list all taxing bodies) TAX RATE 6, The estimated increased assessed value of property within urban renewal areas for which indebtedness has been repaid or otherwise legally provided for in 19 amounted to $ . Since this increased assessed value was considered in the calculations of the tax rates, the tax rates were re- duced as a result of the urban renewal program in the following amounts : TAX RATE WITHOUT TAXING BODY (list all taxing bodies) TAX RATE-ACTUAL INCREASED A.V. 1 . Excludes Increased Assessed Value in urban renewal areas . -18- i COMMERCIAL$ $ PAYING THE BILLS ON MAIN STREET; FUNDING AND FINANCING REVITALIZATION ss sss OREGON DOWNTOWN DEVELOPMENT ASSOCIATION /,,,, .11.11 f � � (� � .... ��!��I�� _��. Ilr l��► tilliilllli�; �� ';;��Illllll�iiili��llt ��'' ��►i��ii�i�Gl� �,� = _ 1 1 INFORMATION HANDBOOK#6: � PAYING THE BILLS ON MAIN STREET; � FUNDING AND FINANCING COMMERCIAL REVITALIZATION i OREGON DOWNTOWN DEVELOPMENT ASSOCIATION j 1 1 r THE OREGON DOWNTOWN DEVELOPMENT ASSOCIATION "PAYING THE BILLS ON MAIN STREET; FUNDING AND FINANCING COMMERCIAL REVITALIZATION" INFOR- MATION HANDBOOK WAS COMPILED BY LAURA LANDAUER (Summer intern, 1987) UNDER THE SUPERVISION OF EXECUTIVE DIRECTOR BRIAN SCOTT. THE HAND- BOOK IS THE SIXTH IN A SERIES OF INFORMATIONAL HANDBOOKS PUBLISHED BY THE OREGON DOWNTOWN DEVELOPMENT ASSOCIATION. I PAYING THE BILLS ON MAIN STREET; FUNDING AND FINANCING COMMERCIAL REVITALIZATION OREGON DOWNTOWN DEVELOPMENT ASSOCIATION This packet is not intended for commercial use. Materials were compiled from the following sources: & Addie Granville, Government Finance Associates Conserve Neighborhoods newsletter, special edition: " Business Ventures for Non-profits" Debbie McCabe, Council for Economic Development in Oregon Directory of Regional Councils in Oregon - 1987 Ed Murphy, City of Grants Pass James Hamrick, State Historic Preservation Office John Greiner, IDA-ORE Planning and Development Association Nancy Johnson, Dallas Downtown Development Association "League of Oregon Cities" brochure ODDA information handbook #3: Economic Improvement Districts Rick Craiger, Community Development Programs Ruth Scott, Association for Portland Progress Susan Kempf, Astoria Downtown Development Association i Tax Increment Financing outline prepared by John Spencer and Charles Kupper k Terry Edvalsen, Eastern Oregon State College "The Business of Small Business" brochure 1 The Guide to Oregon Foundations f TABLE OF CONTENTS IIntroduction........ .... . . .. .. . .... . . ... .....P. 1 Matrix. . . . ........ .:... ..:... .... . . . ..... ................... . ...p. 2 Economic Improvement Districts... . ..... .. .... ......................p. 3 **Appendix A Local Improvement District...... . ... . . . ... . ....................... ..p. 4 Tax Increment Financing............. ...... . ........................p. 5 lService Fees..........o....o-o. .. . .. .000. ... .......oo..00..op. 6 J Subsidy from Profitable Business..... .. . ........ ................. ..p. 7 Fundraising Events... . . ........................p. 8 Memberships................... ... . .. . .... .. ..... .............. .. ...p. 9 Individual Donations.... .... . .. .oo .po 10 Property Donations.......oo.. 00.. ..o .... oo.p. 11-12 Foundation Donations........... . .... . .. .... . .. .. . ..................p. 13 Corporate Donations.—. ......... .. ... ............ ...p. 14. Community Development Block Grant. . . .... .. .. .................. ....p. 15 Municiple Bonds...... .. . . . . ....... 16 LoanPools. ................. ....... . ..............................p. 17 Sponsorships.................... ....... .... .....................p. 18 Business License Sur-charge... . .. .. ..................p. 19 ,^ **Appendix B **Appendix C Retail Fees......o..o.-oo-oo-o.......... ..........oo..00.....op. 20 t, Product Sales......o....oo.-000-o.....o ..... p. 21 . Hotel/Motel Tax.......................... ..........................p. 22 Tax Credits..........o.o...o....o.o...... o.o..po 23 Volunteers.....oo........ ...........oop. 24 Council of Governments......... . ..... 25-26 Economic Development Administration......... .......................p. 27 State Historic Preservation Office............... 28 Oregon Downtown Development Association....... .......oop. 29 League of Oregon Cities.. ' p. 30 Council for Economic Development in Oregon.........................p. 31 Small Business Development Center........................,........p. 32-33 CityGovernment....o...o.00.00-o-o...o. o.000...o.o...o.o...o..00...p. 34 Federal and State Funding..........................................p. 35-36 **Appendix D Summary............................................................p. 37 1 C , This report, as well as many of ODDA's activities, are partially supported through State Economic Development funds generated by the Oregon Lottery. ODDA is greatful to the Oregon Legislature for their support of economic development in Oregon's older commercial districts. PRESIDENT OF THE SENATE -John A. Kitzhaber--D, Dist. 23, Roseburg SPEAKER OF THE HOUSE f -Vera Katz--D, Dist. 10, Portland JOINT COMMITTEE ON WAYS & MEANS i -Senate Members -Mike Thorne--D, Dist. 29, Pendleton -Frank Roberts--D, Dist. 9, Portland -Lenn L. Hannon--R, Dist. 26, Ashland -Grattan Kerans--D, Dist. 20, Eugene -Anthony Meeker--R, Dist. 15, Amity ( -Clifford W. Trow--D, Dist. 18, Corvallis -Jan Wyers--D, Dist. 6, Portland -Mae Yih--D, Dist 19, Albany -House Members -Jeff Gilmour--D, Dist. 30, Jefferson -Paul Hanneman--R, Dist. 3, Cloverdale -Judith Hannerstad--D, Dist. 27, West Linn -Denny Jones--R, Dist. 60, Ontario -Mike Kopetski--D, Dist 33, Salem -Tom L. Mason--D, Dist. 11, Portland -Mike McCracken--D, Dist. 36, Ablany -Tony Van Vliet--R, Dist. 35, Corvallis SENATE COMMITTEE ON TRADE & ECONOMIC DEVELOPMENT -Joyce E. Cohen--D, Dist. 13, Lake Oswego -Bill Bradbury--D, Dist. 24, Bandon -Jim Hill--D, Dist. 16, Salem -Ken Jernstedt--R, Dist. 28, Hood River 1 -John A. Kitzhaber--D, Dist. 23, Roseburg -Glenn E. Otto--D, Dist. 11, Troutdale -Eugene D. Timms--R, Dist. 30, Burns HOUSE COMMITTEE ON TRADE & ECONOMIC DEVELOPMENT -Wayne Fawbush--D, Dist 56, Hood River -B.Z. Agrons--D, Dist. 53, Klamath Falls -Stan Bunn--R, Dist. 29, Dayton -Larry L. Campbell--R, Dist. 43, Eugene ? -Margaret Carter--D, Dist. 18, Portland -Vera Katz--D, Dist. 10, Portland -Bill Markham--R, Dist. 46, Riddle Through ODDA, the Oregon Lottery is helping to ` OPAG M TE' bring new jobs and new businesses to Oregon's downtowns and older commercial districts. I INTRODUCTION Paying the Bills on Main Street; Funding and Financing Comercial Revitalization is a summary of funding and financing strategies for commercial revitalization in Oregon as available in the summer of 1987. The Oregon Downtown Development Association sponsored a Fall Conference ` in 1986 under the same title. The response to this conference indicated that a handbook on the conference information would be useful to individuals and organizations with a vested interest in the improvement of the central business district. The handbook has been designed to cover seven areas of commercial revitalization: Downtown Management, Promotions, Public Improvements, Building Rehabilitation and New Construction, Business Starts and Expansions, Public Facilities, and Tecbnical Assistance. The sections included in this handbook explain various ways to fund and finance these programs and projects. The matrix on the next page illustrates the information covered in the handbook. / It is important to keep in mind when reading the funding and financing handbook that this information is just an introduction about the funding source. However, contacts for more information have been provided at the end of each section if you would like to pursue a particular funding channel or if you simply would like more detail about the funding and financing source. 1 Funding and Financing Handbook, ODDA Page 1 t7Q oaEGoN= �]c! BWC4 fAMN y WEng. HB 2443 1 SECTION 6.The existence of local improvement districts or urban renewal districts in a city does not affect 2 the creation of economic improvement districts under this Act. 3 SECTION 6.When the council considers it necessary to levy assessments upon property in an economic 4 improvement district for longer than the period of time specified in the assessment ordinance that created the 5 district,the council shall enact an ordinance that provides for continued assessments for a specified number of 6 years and brant&to property owners in the district the notice and right of remonstrance described in paragraphs 7 (b)to(e)of subsection(2)of section 3 of this Act. a SECTION 7.(1)ORS 223.387(6)and 223.391 to 223.393 apply to economic improvement districts created 9 by a city in accordance with this Act. 10 (2)The rights and duties accorded cities and the owners of property for financing assessments under ORS !!! 11 223.205 and 223.210 to 223.295 do not apply to assessments levied upon property in an economic improvement 12 district for financing all or part of the cost of an economic improvement. 13 SECTION 8.(1)A city council shall not expend any moneys derived from assessments levied under this Act 44 for any purpose different from the purpose described in the ordinance adopted under section 2 of this Act. IS (2)Any public official who expends any moneys derived from assessments levied under this Act for any 16 purpose different from the purpose described in an ordinance adopted under section 2 of this Act shall be civilly JJJ 17 liable for the return of the moneys by suit of the district attorney of the county in which the city is located or by is suit ofany taxpayer of the city. 19 _SECTION 9.Except for assessments previously authorised under paragraph(d)of subsection(1)of section 20 3 of this Act,assessments shall not be levied or collected under this Act in any fiscal year commencing after lune 21 30,1990. y 1 J _� 13) OREGON • t p� DKVVOPMCW ASSOGATION — - t BEng. HB 2443 Y 1 (a)Levy assessments in an economic improvement district in any year that exceed one percent of the true 2 cub value of all the real property located within the district. I3 (b)Include within an economic improvement district any area of the city that is not zoned for commercial or 4 industrial use. 3 (c)Levy assessments on residential real property or any portion of a structure used for residential purposes. 1 6 SECTION 3.(1)An ordinance adopted under section 2 of this Act awl provide for enactment of an 7 assessment ordinance that: } g (a)Describes the economic improvement project to be undertaken or constructed. 9 (b)Contains a preliminary estimate of the probable cost of the economic improvement and the proposed 10 formula for apportioning cost to specially benefited property. 11 (c)Describes the boundaries of the district in which property will be assessed. 12 (d)Specifies the number of years,to a maximum of three,in which assessments will be levied. 13 (e)Contains provision for notices to be mailed or delivered personally to affected property owners that 14 announce the intention of the council to construct or undertake the economic improvement project and to assess f5 benefited property for a part or all of the cost.The notice shall state the time and place of the public hearing 16 required under paragraph(f)of this subsection. ' 17 (f)Provides for a hearing not sooner than 30 days after the mailing or delivery of notices to affected property is owners at which the ownersmay appear to support or object to the proposed improvement and assessment. 19 (2)The ordinance shall also: 20 (a)Provide that i&after the hearing held under paragraph(n of subsection(1)of this section,the council 21 determines that the economic improvement shall be made,the council shall determine whether the property 22 benefited shall bear all or a portion of the cost and shall determine,based on the actual or estimated cost of the 23 economic improvement,the amount of anent on each lot in the district 24 (b)Require the city recorder or other person designated by the council to prepare the proposed assessment 25 for each lot in the district and file it in the appropriate city office. 26 (c)Require notice of such proposed assessment to be mailed or personally delivered to the owner of each lot 27 to be assessed,which notice shall state the amount of the assessment proposed on the property of the owner 28 seceiving the notice.The notice shall slate the time and place of a public bearing at which affected property 29 owners may appear to support or object to the proposed assessment The bearing shall not be held sooner than 30 jj 30 days after the mailing or personal delivery of the notices. 31 (d)Provide that the council shall consider such objections and may adopt,correct,modify or revise the 32 proposed assessments. J 33 (e)Provide that the assessments will not be made and the economic improvement project terminated when 34 written objections are received at the public hearing from owners of property upon which more than 33 percent of 35 the total amount of assessments is levied. 36 SECTION 4.An ordinance adopted under section 2 of this Act may require creation,for each economic 37 improvement district,of an advisory committee to allocate expenditure of moneys for economic improvement 38 activities within the scope of this Act.if an advisory committee is created,the council shall strongly consider 39 appointment of owners of property within the economic improvement district to the advisory committee.The 40 advisory committee may be an existing association of property owners or tenants.An advisory committee may 41 enter into an agreement with the city to provide the proposed economic improvement. 12) IWAL DIPROVEMENT DISTRICT A Local Improvement District is a method used to finance public - improvements and facilities by distributing the costs of the improvements to surrounding property owners. It is a highly flexible tool that has two primary advantages: (1) it is a method of ensuring that all the benefiting property owners pay an equitable amount towards the whole and (2) it allows property owners to finance their assessment over time at attractive interest rates. This finance tool can be used for constructing parking lots, street trees/landscaping, alley improvements, undergrounding utilities, improvements, street furniture, street lighting, parks or plazas, just about any type of public improvement. The key is being able to identify ` the local property owner benefits and distributing the costs accordingly. The costs can be distributed in any number of ways - by street footage or land area is typical, but it could be by size or assessed value of the building, by number of employees, and so on. The costs could also be spreacd by combining different factors, say by assessing improvement and number of employees. It could also be matched with other funds - City general funds or grants, for instance. Most cities would have their own local improvement district ordinance. The City Engineer or City Attorney would most likely be able to review the method with you. Otherwise, call or write Ed Murphy, Director of Community Services, City of Grants Pass, 101 N.W. "A" Street, Grants Pass, Oregon, 97526, (503) 474-6355 for general information or brainstorming. Remember, if it's a public, capital improvement, and you can identify the specificbeneficiaries of the improvements (vs. the whole city, for instance) an LID may be one of the methods you should consider. It is a highly flexible, powerful, and often underutilized tool. In summary, Local Improvement Districts can be a strong source of funding for public improvements and public facilities. *Information from Ed Murphy, Director of Community Services, Grants Pass, Oregon. I. Funding and Financing Handbook, ODDA Page 4 t I . SERVICE FEES Service fees are a common source of funds for many non-profit organizations, but are not often used in the commercial revitalization field. Fee revenue can be used for downtown management, promotions, public improvements, building rehabilitation and new construction, business starts and expansions, public facilities, and technical assistance. Service fees might be generated for professional services such as commercial building design assistance, parking management or enforcement, property management, real estate negotiation or packaging, retail promotion packaging, advertising, or business recruitment. Fees might also be provided for general services like bulk mailings, telephone answering, employee sales training, or typing. ry In evaluating whether to pursue service fees as a significant source of income, any non-profit should consider a number of questions: 1) Does -E the organization have the expertise to provide the service in a !L professional manner?; 2) Is the service being considered in accord with the organization's goals?; 3) Is the service already available from the private sector and would non-profit competition be unfair or unethical?; 4) Can the organization really make money on the service?; and 5) Will the time required to provide the service substantially hinder the organization's ability to pursue its basic mission? Service fees are a dependable and self perpetuating source of income, but can be deceptive. Many non-profit organizations have started profit producing services to subsidize their basic mission driven projects, only later to .learn that the services were not actually producing income but only sapping the resources of the organization. Other non-profits have been criticized by the private sector for. unfair competition, damaging the non-profit's ability to solicit private donations. Regular internal review of effectiveness and mission should accompany any effort to subsidize a non-profit with service fees. For more information contact Brian Scott, Executive Director, Oregon Downtown Development Association, 921 S.W. Morrison, Suite 508, Portland, Oregon, 97205 - (503) 222-2182. *Source: Oregon Downtown Development Association. 1 1 ` Funding and Financing Handbook, ODDA Page 6 r SUBSIDY FgOK PROFITABLE BUSINESS r A number of very entrepreneurial non-profit organizations have started ( for-profit arms to make money and subsidize their basic programs. More 4 for-profit corporations have started non-profit subsidiaries to carry out some social service, which is to the parent company's benefit but not profitable. Examples related to a commercial revitalization effort might include a real estate development company subsidizing a commercial district management non-profit, or a non-profit leasing its real estate to for-profit businesses to generate income to support the non-profit's f activities. Subsidies from profitable businesses can be another source of ongoing and dependable operating support, but should be viewed with similar 1 cautions to income through service fees: 1) Does the for-profit organization have expertise and a track record to be depended upon?; 2) Q Are the for-profit corporations activities in accord with the non-profit organization's goals?; 3) Could association with the for-profit operation damage the autonomy and credibility of the non-profit?; 4) Can the non-profit organization really make money on the deal?; and 5) Will J the time required to maintain the relationship substantially hinder the J non-profit organization's ability to pursue its basic mission? 1 Some for-profit endeavors may welcome the opportunity to invest some {i profits regularly into a non-profit tax-exempt cause, especially if the cause is related to the betterment of the business. This is a .real opportunity to shy away from public support and constant fundraising, but should be pursued with caution. Profitable business subsidies can finance downtown sianageaent, promotions, and technical assistance. For more information contact Brian Scott, Executive Director, Oregon Downtown Development Association, 921 S.W. Morrison, Suite 508, Portland, Oregon, 97205 - (503) 222-2182. *Source: Oregon Downtown Development Association. ,i i I a Funding and Financing Handbook, ODDA Page 7 r FUNDRAISING EVENTS Fundraising events are a good source of revenue for downtown management, j promotions, public improvements and public facilities. They differ from special events in that they occur regularly, they are conceived and run like a business, and they are regarded as a business venture by the sponsoring organization. i Fundraising events that make money tend to be designed to cost the f organizer $10 per person but tickets are sold for $25 per person to make a $15 profit. This $15 is tax deductible if the fundraiser is sponsored by a non-profit organization. A main objective when organizing a fundraising event is to try to eliminate as many of the costs as possible. If food and entertainment is donated most of what is charged for admission or puchase is profit. These are the principles behind the typical spaghetti feed or bake sale. Also essential to a successful and profitable fundraising event is to get as many volunteers selling tickets as possible. This will most 1 certainly increase the chances of attracting a larger crowd. On the same line, it is important to budget expenses to include the cost of publicity. Publicity cannot be overlooked; utilizing diverse channels of quality publicity will insure the highest degree of return from this investment. Finally, many fundraisers end up not being very profitable because during the initial planning stages of the event a firm budgeting policy is not adopted. The whole purpose of putting on a fundraising event is to make money. It is critical that goals and plans are thoroughly worked over several times and all options are researched before spending the budgeted money. Fundraising events can range from fashion shows to banquet dinners. Conferences and workshops can also be designed as fundraisers, although these take much more effort to generate a profit. Fundraising events are only limited by the number of people willing to volunteer to help and by their level of enthusiasm. t Downtown management, promotions, public improvements and public facilities can be financed by fundraising events. For more information on fundraising events contact the Oregon Downtown Development Association, 921 S.W. Morrison, Suite 508, Portland, Oregon, 97205 - (503) 222-2182. *Source: Oregon Downtown Development Association. i i Funding and Financing Handbook, ODDA Page 8 1 MEMBERSHIPS Fees paid for membership to an organization can be a source of funding for numerous downtown projects. Soliciting membership pledges can provide revenue for downtown management, promotions, public improvements, building rehabilitation and new construction, business starts and expansions, public facilities, and technical assistance. In order for membership dues to be a strong source of funding for a program a strong selling program must be administered. It begins with ( selecting a determined chair who will tenaciously follow up on the board's progress in collecting "investments" in the organization. This chair must be someone with excellent "people" skills and a high degree of credibility within the community. I Different approaches can be used to solicit memberships. Mass mailings can be sent out to uncollected pledges and non-members explaining and } "selling" the organization and asking people to invest in the group. Telephone calls can be made -as follow-ups to the mailings. A membership board can divide up a list of people and personally solicit the memberships. The chair can launch a propaganda campaign with brochures and general information material to increase the public's awareness of the organization so soliciting funds will not be as difficult. The chair also can personally prod the public to renew memberships or to invest in the organization for the first time. (This is why the community profile of the chair can be so important.) A strong membership program usually results from a combination of all these strategies. Fundraising is an on-going process and membership fundraising is 1 probably one of the hardest routes to follow. It can only succeed with 1I a good chair to spur the board on, follow-through in making personal contacts, persistence, and a strong commitment to the program. It is recommended that an association can initially do this for a relatively 1 short period of time and should be researching methods for attaining a stronger funding base once the program starts proving itself. f Membership revenue can be used for downtown management, promotions, } public improvements, building rehabilitation and new construction, business starts and expansions, public facilities, and technical assistance. For more information on memberships contact Nancy Johnson, Dallas Downtown Development Association, P.O. Box 1 (873 Main Street), Dallas, Oregon, 97338 - (503) 623-9085. *Information from the Dallas Downtown Development Association. II I Funding and Financing Handbook, ODDA Page 9 i INDIVIDUAL DONATIONS Individual donations, those made by people who have no direct business I gain through a commercial revitalization program, can be a worthwhile supplemental incomefor some revitalization non-profits. Individuals may include retired downtown business people, wealthy local citizens, friends of board members or staff, and others who might consider this cause or these people worthy of investment. Often in a local commercial revitalization program, most individual donations are small ($25-50), but occasionally a local philanthropist will consider the downtown a significant part of the community and consider its preservation a worthy use of funds. Don't forget that charitable donations are still deductible for those who itemize, but require that an organization be classified 501(c)3 (a non-profit tax-exempt organization) by the Internal Revenue Service. In soliciting small individual donations or "patron memberships", a non-profit organization should be sure that their time spent obtaining the donations does not exceed their worth. It is .seldom of benefit to 1 have paid staff solicit these contributions, since they will be lucky to Jcover the salary they are paid while soliciting. -� Probably the most effective way to solicit small individual contributions is with some sort of simple brochure highlighting the benefits of the organization. This brochure should be mailed to those people thought most likely to donate, then those people should be called by Board members or volunteers who know them. The caller should simply say they are raising money for this cause, why they believe the cause is worth the investment, and how much they are hoping the prospect will donate. If a commercial revitalization organization has one or two board members with many friends in the middle to upper class in the community, and who are willing to make these calls, individual donations can be a major source of income. For more information contact Brian Scott, Executive Director, Oregon Downtown Development Association, 921 S.W. Morrison, Suite 508, Portland, Oregon, 97205 - (503) 222-2182. *Source: Oregon Downtown Development Association. r Funding and Financing Handbook, ODDA Page 10 1 6 PROPERTY DONATIONS yi Property Donations can be useful to several aspects of a non-profit organization. They can be broken into two categories--improvement of the organization's finances and pursuit of the organization's goals. Financially an organization might accept the donation of property in which they can place their offices, thereby reducing overhead and possibly managing and gaining profits from unused space. Similarly, donated property might simply be managed by the organization with profit from the management and lease fees. Donated property may be given in j such a way that the organization could immediately turn around and sell it for a profit or hold onto the property as a long-term investment and a later sale. l Related to the above donations is an easement. (An easement is a granting of the right to use property.) Most common is the "historic easement" which is the donation of a historic building facade easement , to a non-profit organization for "safe-keeping." The easement usually comes with a fee for the safe-keeping. It then becomes the 1 responsibility of the organization to see that the historic quality easement area is not lost through the years. The donor of the easement is able to deduct the loss of value of his property (since instead of building a .large building of high value on this property he is preserving the historic facade) while the non-profit organization receives money for taking on the responsibility of that property. In all the cases above, the cause for donations is most likely a tax write-off for the donor. And, this is certainly the angle that is used to solicit such donations. The level of tax credit may be affected by whether the organization is a 501(c)3 or (c)4/6 (a non-profit organization that is not tax-exempt). This should be explored before the value of the donation is guaranteed the donor. 1 The second aspect of donations--"cause", may or may not be profitable to J the recipient organization. These donations would include property which the donor wishes to be treated in a particular manner and therefore gives it to the organization capable of implementing the stated goal. The donor may wish development to be caused and find that it is more easily caused with the involvement of a non-profit. Conversely, the donor may wish that the property not be developed or changed. A more common occurrence is the creation of a "public-private partnership" for the purpose of development. For example, the donation of particular property is sought from the private owner by the non-profit for the purpose of a "subsidized sale" to another private party. The impetus being that the owner gets a tax write-off, the non-profit probably gets a fee for being the middle-man (or causes a project to happen that was otherwise unaffordable to the new owner), and lthe new owner gets the property at a below market cost. 1 Funding and Financing Handbook, ODDA Page 11 l 1 Another cause-related donation is the donation of a property which needs i development or redevelopment and is donated with the understanding that the non-profit organization will develop the property and sell it as they see fit. Many groups relate this type of activity to "revolving loan funds." However, to be profitable, development activity needs to be structured differently than a revolving loan fund as they tend to "revolve down" and require subsidy rather than profit. IIn all of the donations noted above it is to the advantage of the soliciting organization to be fairly mature financially and structurally. Each of these donations involve state and federal taxes in some way. Thus, the state of an organization's bookkeeping, audits and tax status greatly effect the success of the donation. Further, it } would be very unwise for an organization which hadn't mastered the 4 smooth evolution of board and staff to take on a development of any type. The legalities involved with most property donations would require more than the time or level or expertise any practicing attorney, who was on the board of the organization, would or should provide. Additional information on these topics might come from: J Easements—Historic Preservation League of Oregon or The National Trust for Historic Preservation; General Property Donation—National Trust for Historic Preservation; Property Development and Resale—Historic Foundation of North Carolina (they've done lots); Development Subsidy—Portland Development Commission has done a lot (ie, Nordstrom, Pioneer Square, etc., also the Two Rivers Market--Glen Rea with the City of Albany is a real traditonal one), but most downtown development handbooks from ULI or some state (Illinois) would have chapters on property donations for development subsidy. Property-donations can be used to fund building rehabilitation and new construction and public facilities. *Information by Ruth Scott, Deputy Director, Association for Portland Progress. i i Funding and Financing Handbook, ODDA Page 12 4 1 FOUNDATION DONATIONS Foundation donations are grants given by foundations to aid social, educational, charitable, religious, and other activities which serve the common welfare. Foundations are non-governmental, non-profit organizations which, primarily through investment of their assets, have produced income that is awarded as grants. Foundations generally have restrictions concerning what they will and will not support. A defined geopraphic area may be the criteria a foundation requires ora certain type of recipient or activity also might limit who can receive a foundation grant. Although these. requirements may differ between foundations one rule applies to all of them. In order to qualify for a foundation grant you must be a tax-exempt organization recognized by the Internal Revenue Service. There are four general types of foundations: independent foundations, corporate foundations, operating foundations, and community foundations. Independent foundations constitute most of Oregon's foundations. Their primary function is to award grants. Usually the grant comes from a single source such as an individual or family. Corporate foundations are instituted by profit-making corporations. Their grants are likely to be related -to their corporation. For instance they may award grants in the geographic area where their corporation operates. Operating foundations use their endowments and asset income to support their own programs and services. It is rare for this type of foundation to award a grant to an.outside organization. Community foundations acquire their contributions from several donors. A board of trustees from the community makes the grant decisions. Some of the grants go to broad purposes while others are more specific. Before applying for a foundation grant there are certain things you should investigate. Consider the purpose, activities, and areas of interest of the foundation. Find out what restrictions apply to each foundation. Research the size and number of the grants awarded as well as the history of what has been funded in the past. Look into who is the correct person to contact and what kind of contact the foundation prefers: a letter, a phone call, an application, etc. Finally, find out deadlines for application. Foundation grants can be used to fund public improvements, public facilities, tecbnical assistance, promotions, and downtown management. For information on specific Oregon foundations refer to The Guide to Oregon Foundations. This book is published by the United Way of the l Columbia-Willamette, 718 West Burnside, Portland, Oregon, 97209 - (503) j 228-9131. The 1987 edition will be available in September, 1987. *Information taken from The Guide to Oregon Foundations. Funding and Financing Handbook, ODDA Page 13 I CORPORATE DONATIONS Corporate donations may be distinguished from membership dues primarily by size of contribution. Many statewide and regional corporations have actively supported commercial revitalization efforts through donations of money, services and equipment. Most corporations look upon donations to social and economic development causes as investments in the community. Their willingness to give will be directly proportionate to their existing or future corporate presence in the community. The typical corporation will evaluate a donation in J terms of return on investment (though this return could be in dollars, publicity, human betterment, or economic growth). i Before soliciting a corporate donation, it is important to know the corporations ability to give and previous giving patterns. An important I piece of information is how much do you expect them to give, and how much are other similar corporations giving. It is also important to know what the return will be for the company (i.e. will they get their name in a brochure, will their name be mentioned on the radio 100 times, will businesses be started that will require their services, or is this donation expected simply as part of their corporate responsibility). In fact, the nature of the return may predicate the donation coming from totally different parts of the company. Personal contacts are also important. People give money to people, corporations don't give to causes. Since most corporations are constantly being approached to give to various causes, to be successful, a cause must have a proven track record, a previous history with the corporation, a credible list of other givers, or a personal contact. Finally, patience and persistence may be the most important parts of soliciting corporate donations. Most corporations are sizable bureaucracies. Any request will be reviewed by several people, and any request will have to have a champion within the company. Stick with it, keep making personal contacts, and by all means believe in your cause enough to convey its importance. t Downtown management, promotions, technical assistance, and posibly j public improvements and public facilities could be financed by corporate donations. For more information contact Brian Scott, Executive Director, Oregon Downtown Development Association, 921 S.W. Morrison, Suite 508, Portland, Oregon, 97205 - (503) 222-2182. *Source: Oregon Downtown Development Association. r Funding and Financing Handbook, ODDA Page 14 i I 1 comoNITY DEVELOPMENT BLOCK GRANT The Oregon Community Development Block Grant program is one potential source of funds for downtown revitalization. It does not, however, provide money directly for this purpose. Money is available, ona competitive basis, to fund public improvements which eliminate a health related problem, e.g. replacing water or sewer lines. Money is also jr available for housing rehabilitation to provide housing for low/moderate income people. This could be used to rehabilitate a building in a ` downtown area. 4 � II Additionally, several cities have received funding for projects that they then loaned out for housing or economic development projects. As the loans are paid back, the city can use the money to fund business loans or make public improvements. Contact should be made with the city staff to determine if these revenues exist. The Governor's Regional Strategy program for economic development calls for a recognition by each county of its best potential for new job creation. It appears that several areas of the state are recognizing 1 tourism as that opportunity. Downtown revitalization projects strengthen and, in some cases,. lead these efforts on a community level. This is an excellent time to be part of a program receiving county and state►emphasis. For further information contact the Oregon Department of Economic Development, Community Development Division, 378-3732. *Information by Rick Craiger, Project Coordinator, Community Development Programs. Funding and Financing Handbook, ODDA Page 15 { EMCIPLE BONDS Municipal bonds may be either taxable or tax-exempt. They are issued to I finance public capital improvements. (This applies to building j rehabilitation and new construction and public facilities.) The bond represents an agreement between the public agency and the investor. The municipality borrows funds over a specified time and agrees to pay it back with added interest on a certain date. The bonds may be backed by the municipality's taxing power, termed General Obligation bonds (G.O.), and/or the expected revenues of the enterprise. Generally, the interest rates offered on taxable bonds will be higher than the rates on tax-exempt bonds. The rates on taxable bonds are comparable to highly graded corporate bonds. The risk associated with this issue is considered to be minimal. Municipal bonds may be purchased through a commercial bank or broker. Information regarding local issues may be obtained in calendar form from the Municipal Bond Division of the State Treasury. DENOMINATIONS - Municipal bonds may be purchased typically at the minimum amount of $5,000 MATURITY - Maturities vary from- one year to forty years INTEREST - Interest is paid semi-annually For more information contact Addie Granville or Rebecca Marshall, Government Finance Associates, 1300 S.W. 5th Ave., 'Suite 2929, Portland, Oregon, 97201 - (503) 222-1405. 1 *Information by Addie Granville, Government Finance Associates. l l Funding and Financing Handbook, ODDA Page 16 f 1 LOAN POOLS Loan Pools have been used in many cities around the country, mainly for facade and other exterior improvements to buildings. The criteria for the use of these funds is up to the organization that develops the Loan Pool. !. A Loan Pool is set up by talking a group of lending institutions into 1 designating..a specific amount of money for downtown rehabilitation or business expansion projects. The funds are usually offered at below the . current lending rate. The term "pool" is .somewhat misleading in that the funds are seldom "pooled" into one account that is drawn upon for each qualifying project. The total amount of the designated funds becomes the "pool" but each lender retains control over its own funds. The normal procedure is that each participating lender administrates its own loans under normal lending policies. The main difference is that in order to qualify for the reduced rate, the project must pass a review by the Design Committee of the organization that developed the Loan Pool. Once the project is approved, the borrower must then qualify for the 1 loan by normal standards of the lender. These Loan Pools serve as an incentive for business and property owners to make improvements to their buildings. The lower borrowing rate plus the publicity these pools offer raise the awareness of the benefits of good design and have been responsible for many quality improvements to downtown buildings. Loan Pools fund building rehabilitation and new construction and also business starts and expansions. For more information contact the Oregon Downtown Development - Association, 921 S.W. Morrison, Suite 508, Portland, Oregon, 97205 (503) 222-2182. *Source: Oregon Downtown Development Association. 1 Funding and Financing Handbook, ODDA Page 1� 1 1 . tSPONSORSHIPS Sponsorships are a good source of funding for special events and promotions. Suppliers of many of the products used in special events (soft drinks, beer, _equipment) as well as media are willing to donate a portion of their product to be credited as a sponsor of the event. Like corporate donations these organizations evaluate such contributions in terms of return on investment. To get a sponsor it is important to learn who the contact person is in the prospective organization. This is most often someone within the Promotions Department of larger organizations. The Office Manager, receptionist or secretary in smaller organizations can usually provide - � this information. In order to "sell" a sponsor on the idea of providing a product or support for your project it is important to communicate the benefits the sponsorship will provide. These benefits need to be spelled out and presented to the decision maker in a way that makes it easy to agree to be a sponsor. Remember to express "return on investment." In the case of bottling companies, the obvious benefit is getting the name of the beverage in front of a large audience and getting them to try the product. Bottlers quite freely provide dispensing machines and cups bearing the beverage name to event holders. They also, on occasion, provide the beverage as well. In this case, the total proceeds from the sale of the beverage can go to the event holder. In either case, profit from these sales goes to the event holder. Remember, businesses seldom sponsor anything from a totally philanthropic viewpoint. There needs to be a discernible benefit. Sometimes improving the sponsoring business's image is benefit enough, but be sure you have something to offer in exchange for the sponsorship. For more information contact Brian Scott, Oregon Downtown Development Association, 921 S.W. Morrison, Suite 508, Portland, Oregon, 97205 (503) 222-2182. II _} *Source: Oregon Downtown Development Association. t E I Funding and Financing Handbook, ODDA Page 113 f BUSINESS LICENSE SUR-CHARGE A Business License Sur-charge is a mandatory fee placed on businesses within certain boundaries. It is a sur-charge to a City Occupational -� Tax. The sur-charge amount can be based on the number of employees in each business, or other such criteria. The -City Council should be approached by the businesses within the downtown area with a petition signed by many of the businesses asking the city to, place the sur-charge on them to support a downtown project. The Council then should adopt the ordinance. (Sample ordinances are attached.) The City is responsible for collection of fees and dispersement of checks to the Association as collected (monthly, quarterly, or annually.) Business License Sur-charge can fund downtown management, promotions, technical assistance, and possibly public improvements and business starts and expansions. For more information contact John Snyder, Finance Director, City of Astoria, 1095 Duane Street, Astoria, Oregon, 97103 - (503) 325-5821. *Information by Susan Kempf, Executive Director of the Astoria Downtown Development Association. 1 t 1 Funding and Financing Handbook, ODDA Page 19 Appendix B 1 SPECIAL ORDINANCE NO. 84-14 `l A SPECIAL ORDINANCE ESTABLISHING AN OCCUPATIONAL TAX SURCHARGE TO h .SUPPORT THE ACTIVITIES OF THE ASTORIA DOWNTOWN DEVELOPMENT ASSOCIATION. THE CITY OF ASTORIA DOES ORDAIN AS FOLLOWS: SECTION 1. An occupational tax surcharge, to support the activities of the Astoria Downtown Development Association, is established as follows: NUMBER OF EMPLOYEES AMOUNT OF SURCHARGE 1 - 4 $50.00 5 or more $140.00 SECTION 2. The occupational tax surcharge shall apply to all retail, wholesale, service and professional businesses included in the downtown area. SECTION 3. For the purposes of this special ordinance, the downtown area is described as that area bounded by Exchange Street on the South, the pierhead line on the North, 8th Street on the West and 16th Street on the East. SECTION 4. All property which abuts or is included within the boun- daries shall pay the occupational tax surcharge. JSECTION 5. The revenue from this surcharge shall be paid to the Astoria Downtown Development Association for the use by the Association or its activities. SECTION 6. Such surcharge will not extend past December 31, 1986, at which time it will be reviewed to determine if it Jshould be continued. ADOPTED BY THE COMMON COUNCIL THIS 15th DAY OF October 1984. APPROVED BY THE MAYOR THIS 15th DAY OF October 1984. f Mayor f ATTEST: ROLL CALL ON ADOPTION: YEA NAY ABSENT COMMISSIONER: Hauer x Merriman x 1 Finance Director Hauke x Law x Mayor Henning!;gaard x l Appendix C SeLCIAL ORDINANCE NO. 86- 1� I A SPECIAL ORDINANCE EXTENDING THE OCCUPATIONAL TAX SURCHARGE TO SUPPORT i THE ACTIVITIES OF THE ASTORIA DOWNTOWN DEVELOPMENT ASSOCIATION. THE CITY OF ASTORIA DOES ORDAIN AS FOLLOWS: SECTION 1. Special Ordinance No. 84-14 established an occupational tax surcharge, to support the activities of the Astoria Downtown Development Association, as follows: lNUMBER OF EMPLOYEES AMOUNT OF SURCHARGE 1 - 4 $ 50.00 5 or more $140.00 1 SECTION 2. The occupational tax surcharge shall apply to all retail, wholesale, service and professional businesses included in the downtown area. SECTION 3. As described in Special Ordinance No. 84-14, the downtown area is that area bounded by Exchange Street on the South, _-� the pierhead line on the North, 8th Street on the West and 16th Street on the East. SECTION 4. All property which abuts or is included within the boundaries shall pay the occupational tax surcharge. SECTION 5. The revenue from this surcharge shall be paid to the Astoria Downtown Development Association for use by the Association. SECTION 6. By this ordinance, such surcharge is extended from December 31, 1986 to December 31, 1988, at which time it will be 1 reviewed to determine if it should be continued. ADOPTED BY THE COMMON COUNCIL THIS 20th DAY OF October , 1986. APPROVED BY THE MAYOR THIS 20th DAY OF October 1986. Mayor A ;. l ATTE VA 1 { Fice Drror RO L CALLDOPTION: YEA NAY ABSENT Commissioners: Hauer x l Hauke x J Mathews x Van Dusen x i Mayor Henningsgaard x I l "IN FESS" FOR RETAIL PROMOTIONS Retail promotions should be paid for by the primary beneficiaries - the { retailers who participate in the promotions. i Initially a promotion is agreed upon and then a budget is developed that includes expenses for all elements involved in the promotion such as advertising (radio, newspaper, posters, etc.), signs and banners, common graphics (window signs, point-of-purchase cards, etc.), supporting activities (options - music, entertainment, giveaways, etc.), and I miscellaneous elements (allow 10%-20% for administration). The "in fee" is determined by dividing the total budget amount by the projected number of participants. lThis program "sells" well when presented to the merchants as a Package of Benefits that a group effort provides. I "In Fees" can support downtown management, promotions, public 1 improvements, building rebabilitation and new construction, business starts and expansions, public facilities, and technical assistance. For more information contact the Oregon Downtown Development Association, 921 S.W. Morrison, Suite 508, Portland, Oregon, 97205 - (503) 222-2182. *Source: Oregon Downtown Development Association. 1 l l 1 Funding and Financing Handbook, ODDA Page 20 I i t , PRODUCT SALES TO SUBSIDIZE PROMOTIONS A promotion budget can be subsidized by selling products that support the promotion theme. This approach is most effective when used in 1 conjunction with Special Events or Image type promotions. Product variety is only as limited as the imagination. Some examples are tee shirts and sweat shirts with promotion related theme or graphics, quality "collectors" posters, and souvenirs of all kinds. There are three basic approaches to product sales that all have advantages and disadvantages: } 1. Event holder owns product - The creators of the event decide on the items to be sold, projects the number that can be sold, has them produced, determines a profit margin, and sells them. This method provides the highest profit-per-item sold, but sales predictions better be accurate or left over product will reduce or even eliminate profit. 1 2. Vendor owns product - The vendor agrees to produce the item to be J sold and provides them on a'consignment agreement. This provides a lower profit margin as it is shared with the vendor, but there is no risk of being stuck with left over product. 3. Event holder owns rights to product sales - Various vendors can use the event logo, graphics, theme, etc. with the understanding that a lpercentage of the sales profit is paid to the event holder. The J event is providing a market for the vendors that would not otherwise be there to sell the items. The event holder is paid for J providing this market. This approach requires no direct selling by the event organizers but it can be difficult to monitor and administrate. 1 There are many other product ideas that will work for raising money. One very popular one is the 'Wheeler Dealer board game. This game is much like monopoly except that the businesses listed on the board are i home town businesses. These businesses pay to have their name on the board. These fees pay for the production of the game. The game is named after the city in which it is sold. The profit comes from selling the finished game in the community. Done properly, all of the proceeds from sales are profit. Possibilities for products to sell to raise money to support promotions Iare limitless. For more information contact the Oregon Downtown Development Association, 921 S.W. Morrison, Suite 508, Portland, Oregon, 97205 - (503) 222-2182. *Source: Oregon Downtown Development Association. l Funding and Financing Handbook, ODDA Page 21 I - 1 BOTEUMOTEL TAX A hotel/motel tax is similar to a sales tax. It is a tax that has been imposed on hotel/motel room rental through a city ordinance. The �) hotel/motel tax is generally about 4-5% and it falls in the category of a general fund revenue. The city can do anything it wants with general fund revenue such as pay off city debts or help fund city police and fire departments. Often city governments contribute much of their hotel/motel tax revenue to local efforts such as the Chamber of Commerce or Vista and the Convention Bureau to promote tourism (and thus increase hotel/motel occupancy.) Very aggressive downtowns use hotel/motel I taxes to fund downtown management, promotions, public improvements, public facilities, and technical assistance. Hotel/motel owners are responsible for filing with the city the amount of tax money that has been collected and then turning that money over to the city to allocate as general funding revenue. i� For more information on hotel/motel tax contact the League of Oregon Cities, Local Government Center, P.O. Box 928, 1201 Court Street N.E., Salem, Oregon, 97308 - (503) 588-6466 or toll-free (800) 452-0338. I *Source: Oregon Downtown Development Association. f I l I Funding and Financing Handbook, ODDA Page 22 I � f HISTORIC PRESERVATION TAX CREDITS One of the few remaining substantial income tax benefits remaining after the 1986 Tax Act is the tax credit for rehabilitation of older and historic buildings. . In a nutshell, a 20% income tax credit is available for substantial rehabilitation of historic buildings, and a 10% income tax credit is available for substantial rehabilitation of non-historic I commercial buildings built before 1936. In addition, a fifteen year property tax freeze is available for historic buildings within the State of Oregon. To be classified as historic, a building must be listed on the National Register of Historic Places--either individually or as part of a National Register Historic District. To be substantial, a rehabilitation must cost at least as much as the adjusted basis of the building (purchase price of building, excluding land, minus depreciation) or $5000, whichever is greater. Thus a building under the same ownership for many years will have a low adjusted basis; one recently purchased will have a high adjusted basis. The fifteen year property tax freeze goes into effect at the time of the owners request, allowing the owner to freeze the value before rehabilitation begins. This allows fifteen years productive use of the improvements without paying taxes on them. The 20% historic property rehabilitation tax credit is for income 1 producing property only, and requires rehabilitation that is compatible with the historic character of the building as defined by the Secretary of the Interior's Standards for Rehabilitation of Older Buildings. The 10% tax credit is for income producing commercial property only, but only requires retention of most of the exterior wall of the building. The fifteen year property tax freeze requires appropriate maintenance of the property. All these tax benefits are complicated. A qualified historic preservation consultant should be consulted early on in the project, and 1 frequent consultation with the State Historic Preservation Office is a good idea. 1 Historic Preservation tax credits can finance building rehabilitation and new construction and public facilities. For more information contact John Tess, Historic Preservation Consultant, 123 N.W. Second, Portland, Oregon, 97209 - (503) 228-0272. *Source: Oregon Downtown Development Association. L Funding and Financing Handbook, ODDA Page 23 _J VOLUNTEERS Volunteers are an often overlooked means of funding many commercial revitalization projects. Volunteers can provide many services which. might otherwise require cash resources beyond the means of the organization. Volunteers might sell spots in a coordinated advertising campaign; they might provide part-time office help or clerical support; volunteers might help solicit donations and memberships; they might help paint a building or sweep a sidewalk, prepare a financial statement or submit a tax return, design a logo or print the stationary. Given correct motivation and correct management, volunteers can do anything. It is important, however, to understand why people volunteer and what l rewards they seek. Some people volunteer because they believe in the J cause, but many more volunteer because they like the people involved, they think the experience will elevate them in the community, or because l of some inner need to give of themselves. Volunteers must also be treated with respect. The time they give to volunteer is the most precious gift they can give. Nothing turns a volunteer off faster than wasting the volunteered time. A volunteer is as much a professional as someone who is paid, and should be expected to perform as well and be rewarded as well (even if with thanks instead of with cash). Work assignments, priorities and schedules are as important, or perhaps more important, with volunteers as with paid staff. ITreated, properly, volunteers are the greatest resource this state has to offer. For more information contact Brian.Scott, Executive Director, Oregon Downtown Development Association, 921 S.W. Morrison, Suite 508, Portland, Oregon, 97205 -- (503) 222-2182. *Source: Oregon Downtown Development Association. r. I I Funding and Financing Handbook, ODDA Page 24 1 f COUNCIL OF GOVERNMENTS Regional Councils of Governments (COG) are multi-jurisdictional and multi-purpose organizations. They are voluntary associations of local governments (cities, counties, special districts) cooperating and working together on issues and problems which cross city, county and, in 1 some cases, state boundaries. The regional Councils of Governments can provide several services to cities and counties through technical assistance. COGs hire planners who are responsible for technical assistance to member cities and counties. (Not all cities and counties are members of the local council of government so you must investigate the status of your particular i area.) The technical assistance provided by these planners is comprehensive and includes land use and environmental planning, community and social service planning, grant writing, and consulting in areas such as urban renewal and economic development. Some of the major funding programs that councils of government work with l are the Oregon Community Development Program, the Federal Economic Development Administration, recreational funding, private foundation funding, and infrastructure funding. To contact your council of governments you can call or write the local organization and they will advise you on any subsequent steps that are necessary for your development project. *Information taken from the Directory of Regional Councils in Oregon - 1987. Blue Mountain Intergovernmental Council Coos-Curry Council of Governments, P.O. Box E 170 S. Second St., Suite 204 Enterprise, Or. 97828 Coos Bay, Or. 97420-1603 John Beck, coordinator Sandra Diedrich, director (503) 426-4343 (503) 267-6500 Central Oregon Intergovernmental Council East Central Oregon Association P.O. Box 575 of Counties l Redmond, Or. 97756 (mailing address) Dennis Newell, executive director P.O. Box 1207 (503) 548-8163 Pendleton, Or. 97801 (location) j Clatsop Tillamook Intergovernmental 17 S.W. Frazer, Suite 20 Council Tony Barnhart, executive director P.O. Box 488 (503) 276-6732 Cannon Beach, Or. 97110 Don Fields, executive director (503) 436-1156 Funding and Financing Handbook, ODDA Page 25 I Ida-Ore Planning and Development Umpqua Regional Council of Governments Association, Inc. County Courthouse, Room 305 P.O. Box 311 Roseburg, Or. 97470 l Weiser, Idaho 83672 Paul Howard, executive director Phil Choate, executive director (503) 440-4231 (208) 549-2411 Oregon Regional Councils Association Lane Council of Governments (ORCA) 125 E. Eighth Ave. Mid-Willamette Valley COG Eugene, Or. 97401 220 High St, N.E. Salem, Or. 97301 George Kloeppel, executive director Gwen Van DenBosch, ORCA chair and (503) 687-4283 board member Metropolitan. Service District (503) 588-6177 also 2000 S.W. First Ave. Tanya Collier, ORCA chair-elect and Portland, Or. 97201-5398 Metro councilor Rena Cusma, executive officer Metropolitan Service District r (503) 221-1646 2000 S.W. First Ave. Mid Columbia Council of Governments Portland, Or. 97201-5398 (503) 221-1646 502 E. Fifth St. The Dalles, Or. 97058 Richard Jentzsch, executive director National Association of Regional (503) 298-4101 Councils (NARC) 1700 "K" St., N.W. Mid Willamette Valley Council Washington, D.C. 20006 of Governments (202) 457-0710 220 High St.,N.E. Salem, Or. 97301 Intergovernmental Relations Division - Alan Hershey, executive director State of Oregon Executive Department (503) 588-6177 155 Cottage Street, N.E. Salem, Or. 97310 l Oregon District 4 Council of Robert Schumacher, administrator 1 Governments (503) 373-7652 155 S.W. Madison St. Corvallis, Or. 97333 William Wagner, executive director . .(503) 757-6851 Rogue Valley Council of Governments P.O. Box 3275 Central Point, Or. 97502 Dennis Lewis, executive director (503) 664-6674 or 779-6785 i I i 1 Funding and Financing Handbook, ODDA Page 26 i J jECONOMIC DEVELOPMENT ADMINISTRATION The Economic Development Administration is a division of the U.S. Department of Commerce whose major responsibility is to create jobs. J Projects within Oregon are initially handled in the Portland office. Most programs are administered (and grant applications submitted) through each region's economic development district. To find the phone number of your local economic development district, phone EDA in Portland at 221-3078. There are three primary programs which are directly tied to the creation t of new documentable jobs and may be limited to those counties or parts of counties with particularly high levels of unemployment. 1. The technical assistance program involves financial assistance for planning and operation of administrating Main Street programs. Likelihood of funding of demonstration projects in Oregon with a successful program existing is limited. The scope of such a project would most likely have to be innovative and would involve pioneering program efforts. 2. Public works a. TITLE I must have direct impact with long term private sector jobs. b. PUBLIC WORKS IMPACT PROGRAM (PWIP) could have a positive impact on design concerns. It must be in a high unemployment area and produce labor-intensive projects (construction jobs). In some cases it can be used in conjuction with Community Development Block Grants. In spite of the focus on construction jobs, PWIP projects must also have a logical '( relation to the community's economic development. J 3. Revolving Loan Fund This is directly related to the economic distress of the area. Loans are made available at below market rates. Again, direct, permanent job creation, is a factor, so facade rehabilitation unrelated to job creation/preservation would generally not qualify. Funding could be used for capital equipment, thus freeing part of the business operator's money for facade renovation. The Economic Development Administration is a source for technical assistance to funding and financing downtown projects. *Information by John Greiner, Main Street Director, IDA-ORE Planning and Development Association. f I ` Funding and Financing Handbook, ODDA Page 27 I 4 STATE HISTORIC PRESERVATION OFFICE The State Historic Preservation Office is a program unit of the Parks and Recreation Division of the Oregon Department of Transportation. A professional staff of five persons represent the fields of history, archeology, architecture and architectural history. Operations of the State Historic Preservation program are funded on a 50/50 basis by the state and federal government. Specific federal responsibilities include: I 1. Conducting a statewide inventory of historic sites and places; 2. Recommending places of local, state and of national significance to the National Register of Historic Places; 3. Administering the federal/state grants-in-aid program; 4. Review of state and federally-sponsored projects which may affect r historic properties; and 5. Certifying the rehabilitation of historic properties under the provisions of the Economic Recovery Tax Act of 1981, as amended. Additional state-mandated duties include: , 1. Administering a state -tax incentive program for National Register properties; 2. Maintenance of archeological site files; 1 3. Formulation and implementation of the Oregon Property Management program; 4. Review and comment of Goal 5 compliance plans under the state Land Conservation and Development Commission's guidelines; 5. Serving as liaison with the Oregon State Advisory Committee on Historic Preservation; and 6. Certifying the historic significance of properties seeking loans from the Department of Veteran's Affairs. The State Historic Preservation Office provides technical assistance in 1 the above mentioned areas that are applicable to development projects. j For more information contact the State Historic Preservation Office, 525 Trade Street S.E., Salem, Oregon, 97301 - (503) 378-5001. + *Information by James Hamrick, Preservation Specialist, State Historic Preservation Office. I� 1 Funding; and Financing Handbook, ODDA Page 28 OREGON ]DOWNTOWN DEvELOPMIM ASSOCIATION The Oregon Downtown Development Association is the only statewide { organization working to assist in revitalizing and maintaining the J health of Oregon's business districts, downtowns and older commercial cores capitalizing on the unique assets and qualities of each community. ' To that end, ODDA offers a variety of technical assistance programs. The Oregon Downtown Development Association receives funding from the, Oregon Lottery aswell as from service fees, private donations, and memberships. As a result, ODDA is able to offer comprehensive service packages at subsidized rates to organizations following the Main Street Approach. Broadly described, ODDA offers assistance in the areas of Promotions, Design, Economic Restructuring, and Organization. Some specific examples of Oregon Downtown Development Association services include assessment team studies, design assistance, rendering, manager 1 training, board and committee development sessions, grant writing assistance, goal setting workshops, and reconnaissance visits. ODDA is dedicated to supporting comprehensive revitalization programs. I Therefore, to receive specialized tecbnical assistance (at subsidized rates), a city must maintain some base level of program. The service packages include options relative to the sizq, commitment, and resources of the city. For more information contact Brian Scott, Executive Director, Oregon -Downtown Development Association, 921 S.W. Morrison, Suite 508, Portland, Oregon, 97205 — (503) 222-2182. *Source: Oregon Downtown Development Association. j t t 1 Finding and Financing Handbook, ODDA Page 29 Il 1 1 LEAGUE OF OREGON CITIES The League of Oregon Cities is an association that was formed in 1925 by 26 Oregon cities to conserve and defend home rule powers of Oregon cities; to promote cooperation and efficiency in the management affairs; and to discuss and recommend legislation for the benefit of the cities of Oregon. Today the membership includes 238 of the state's 242 cities. 1 The original objectives have been amended and expanded to include additional goals. However, the Leagues committment to city government remains the same. Its programs of activities and services is aimed at j helping Oregon cities to be strong, efficient units of government, effectively answering the needs of their citizens and representing the interests of city residents before both the state and federal governments. The League of Oregon Cities is comprised of twelve elected and appointed I city officials. These officials are elected by the Oregon cities every i year and they represent both large and small cities from every region of the state. The League works in several different governmental areas. The League reviews and recommends solutions to long and short-range problems cities face through its active policy setting committees. Intergovernmental Relations is one of the most important functions of the League. The goal of this service is to act as a watchdog over state and federal agencies. . Legislative services include defining legislative issues of i common interest to Oregon cities, working for the passage or defeat of legislation affecting cities at both state andfederal levels, and involving city officials in legislative affairs. The League of Oregon Cities can provide technical assistance through 1 providing information on city .practices and procedures in Oregon and other states as well. The League has an extensive library of informatiion on city management theory and practices, ordinances adopted by other cities, and many "how-to" publications. This technical assistance service is called the Joint Urban Service Program and is offered on a daily basis by the Bureau of Governmental Research and Service, at the University of Oregon. Requests for information on legal questions, sample ordinances and city policies and practices can be made by phone directly to the Bureau (503)686-5232. Questions concerning state or federal programs go directly to the League. Throughout the year, the League of Oregon Cities also schedules field 1 visits to city halls throughout Oregon to provide on-the-spot answers to questions. The League also offers several conferences and training workshops. For more information contact the League of Oregon Cities, Local Government Center, P.O. Box 928, 1201 Court Street N.E., Salem, Oregon, 97308 - (503) 588-6466 or toll-free (800) 452-0338. *Source: "League of Oregon Cities" brochure. Funding and Financing Handbook, ODDA Page 30 I I 1 . COUNCIL FOR ECONOWC DEVELOPMENT IN OREGON j The Council for Economic Development in Oregon (CEDO) is a non-profit organization formed for the purpose of bringing together and sharing economic development resources. CEDO's mission is to help Oregon's communities achieve a stable and diverse economy. Among its many services, CEDO provides an information referral and technical assistance service. Periodically a community or organization simply needs to have a telephone conversation with someone who is an expert or has experience in a particular aspect of economic development. In other instances, on-site assistance may be needed. CEDO provides these telephone and on-site consultation services free of charge by using CEDO's network of economic development professionals from throughout Oregon. Organized by professionals involved in commercial, industrial, and neighborhood development programs, CEDO members represent a diversity of skills, disciplines, and professional occupations. r For more information contact Debbie McCabe, Executive Director, Council 1► for Economic Development in Oregon, 529 S.W. 3rd Ave, Suite 500, Portland, Oregon, 97204 - (503) 228-1356. *Information from Debbie McCabe, Executive Director, CEDO. J 1 _ j 1 Funding and Financing Handbook, ODDA Page 31 I SMALL BUSINESS DEVELOPMENT CENTER NETWORK 1 The Oregon Small Business Development Center Network is a program designed to provide assistance and resources to Oregon's small business community. The Network links resources of federal, state and local governments with the private sector, community colleges, universities, i and other educational organizations. ` The Oregon SBDC Network is committed to strengthening the business side 1 of small business. Small firms account for 96 percent of Oregon's businesses, and employ 85 percent of the private work force. A major statewide objective is economic growth through support of small business. Oregon has one of the most comprehensive networks of small business development centers in the country. All 15 of Oregon's community colleges and four state colleges are Network members. The state Network j office at Lane Community College in Eugene coordinates the program. Many services are offered through the SBDC. Free, confidential business counselling is provided by the center staff, business professionals, qualified volunteers, and college faculty. Business training classes, workshops, seminars, and conferences are also offered. The network also has a large business resource library containing books, periodicals, videotapes, microcomputers, and business software. Further business services include business referrals, contacts and information. In addition to these services the SBDC also offers some special services. To help Oregon businesses develop overseas trade opportunities, the Network has established The Small Business I International Trade Program at Portland State University. The program provides counseling for developing potential products, information on international trade regulations and requirements, and assistance in } developing international business and marketing plans. i Furthermore, a number of specialized publications have been produced by members of the Oregon SBDC Network. Publications include local business directories, collections of resource materials, business and marketing plans, business start-up kits, and a small business bibliography. Some Centers of the Oregon SBDC Network also offer special activities for women, veterans, and minorities. For more information contact your local small business development center network. (List of SBDCs on following page.) *Information taken from "The Business of Small Business" brochure. i Funding and Financing Handbook, ODDA Page 32 l OREGON SMALBUSINESS DEVELOPMENT ('-NTER NETWORK JULY 1987 BLUE MOUNTAIN CC MT.HOOD COMMUNITY COLLEGE EASTERN OREGON ST. COLLEGE Tom Hampson. Director Don King, Director Sally Snyder, Director Betty Johnson, Support Mary Nicholson, Support Theresa Marquis, Support 37 SE DORIAN 26000 SE STARK ST. REGIONAL SERVICES INSTITUTE PENDLETON, OR 97801 GRESHAM,OR 97030 LAGRANDE,OR 97850 (503) 276-6233 (503) 667-7658 (503) 963-1391 CENTRAL OREGON CC PORTLAND COMMUNITY COLLEGE OREGON INSTITUTE OF TECH. Reese Shepard, Director Hal Bergmann, Director Keith Kramer, Director Kim McGhee. Support 385-5524 Jan Howard, Support Jamie Albert,Counselor 2600 NW COLLEGE WAY 221 N.W. 2nd Ave.,Third Floor Rita Camaille,Support BEND,OR 97701 PORTLAND,OR 97209 3201 Campus Drive (503) 382-6112 ext 237 (503) 273-2828 KLAMATH FALLS, OR 97601 (503) 883-7556; 883-7562 CHEMEKETA CC ROGUE COMMUNITY COLLEGE Bobbie Clyde, Director Lee Merritt, Director SOUTHERN OREGON - !Linda Gephardt Donna Love, Support STATE COLLEGE,ASHLAND 365 FERRY ST.SE 206 NE 7th Cynthia Ford, Director ISALEM, OR 97301 GRANTS PASS,OR 97526 Rebecca Sawyer, Support (503) 399-5181 (503) 474-0762 REGIONAL SERVICES INSTITUTE ASHLAND, OR 97520 CLACKAMAS CC SOUTHWESTERN OREGON CC (503) 482-5838 Karen Stone. Director Bonnie Korieva, Director Karen Yowelt. Support Lori Capps, Support SOUTHERN OREGON 108 8th ST. 1988 NEWMARK ST. STATE COLLEGE,MEDFORD OREGON CITY.OR 97045 COOS BAY,OR 97420 Judy Lininger, Program Coordinator (503) 656-4447 (503) 888-2525 EXT 259 Jon Trivers,Counselor SBDC CLATSOP COMMUNITY COLLEGE TILLAMOOK BAY CC SER.DIST. 229 N BARTLETT Bill Filter,Director Jim O'Donnell,Director MEDFORD,OR 97501 Betty Stark. Support Rhonda Enerbroek, Support (503) 772-3478 1240 S HOLLADAY 401 B MAIN ST. SEASIDE,OR 97138 TILLAMOOK,OR 97141 PORTLAND STATE UNIVERSITY (503) 738-3347 (503) 842-2551 Small Business Int.Trade Program John Otis, Director LANE COMMUNITY COLLEGE TREASURE VALLEY CC Judy Rothrock. Support Jim Piercey, Director Christine Krygier,Director P.O. Box 751 `Rosemary Busby. Support June Oster. Support University Center Bldg. 1059 WILLAMETTE ST. 173 SW 1ST ST. 527 SW Hall,Suite 305 EUGENE,OR 97401 ONTARIO,OR 97914 Portland, OR 97207 (503) 726-2255 (503) 889-2617 (503) 229-3257 1 LINCOLN COUNTY SBDC TREATY OAK CC SD OSBDC NETWORK OFFICE Wes Patterson, Counselor Bob Cole,Director Edward'Sandy'Cutter, St. Director P.O. Box 29 Teresa Gardipee, Support Laura Weaver,Asst. State Director Mall 101,Suite A 212 WASHINGTON Elaine Marsh, Secretary Depoe Bay, OR 97341-0029 THE DALLES. OR 97058 1059 WILLAMETTE ST. (503) 765-2627 (503) 296-1173 EUGENE, OR 97401 i (503) 726-2250 'LINN-BENTON CC UMPQUA COMMUNITY COLLEGE Mary Spilde, Diiector Terry Swagerty,Director OSBDCN COMPUTER BBS Jackie Schamp, Support Diana Birenbaum, Support (503) 343-5570 6500 SW PACIFIC BLVD. 744 SE ROSE 1200/2400 Baud ALBANY, OR 97321 ROSEBURG,OR 97470 8 data,N parity, 1 stop (503) 967-6112 (503) 672-2535; 672- 3679 33 } CITY GOVERNMENT City Government dollars can be a source of funding for several downtown projects. Basically there are two funding pots from which you can solicit money from the city government: the general funds, and the special dedicated funds. Many different sources make up the revenues of 1 these funds. For instance motel taxes are one of the special dedicated 1 funds but franchise fees go into the general fund pot to be allocated for various city projects. Some money that is collected by the } government is placed partially in both funds, such as property tax revenues. Within these funds the city government has a certain amount of money that must be allocated for particular projects. For instance one special dedicated fund is made up of money from gas taxes and this money must be allocated to street projects. In order to get the city government to finance a project it is critical that the solicitors present a good case on how and why the government should finance their project. This requires a certain degree of research, planning, and support from others. Furthermore, if a group plans to reapply for funding from the city after having received money before, it must prove that the money was well spent and the program is successful. Otherwise the city will distribute its money somewhere else that shows more promise. I If the city government has already allocated the money that is collected l for a particular purpose there isn't necessarily another fund from which more money can be pulled to give to a solicitor. However the city government does not directly control a lot of potential funding sources. If a solicitor has a good sense of where money comes from there are several other places to turn to try to get funding for a project. Other possible sources to pursue if the city government funds cannot finance a project are revenues from parking meters, parking districts, tourism funds, bicycle funds, parks and recreation, utilities, colleges, development agencies, private improvement funds, private donations, service clubs, and memorials, to name a few. In sum, the solicitor must find out where the sources of money are and then match the resources of the community with the project he wants to get funded. Of course this requires a certain amount of support from the community for his project to carry the weight that will convince those with the authority to distribute money to finance the project. City dollars can be applied to downtown management, public improvements, public facilities, technical assistance, and possibly promotions. } For more information contact Ed Murphy, City of Grants Pass, 1010 N.W. ' "A" Street, Grants Pass, Oregon, 97526 - (503) 474-6355. C *Source: Oregon Downtown Development Association. Funding and Financing Handbook, ODDA Page 34 i FEDERAL AND STATE FUNDING (Regional Development Institutions) There are several federal and state funding programs that can be used to fund all kinds of downtown development projects. These resources could possibly be used to fund downtown management and promotions and they definitely could be utilized for public improvements, building rehabilitation and new construction, business starts and expansions, public facilities, and technical assistance. However, these funds are not always easy to locate and acquire. Oregon is fortunate to have a well-established base of regional organizations which already have the capacity to help Oregon business and industry acquire the financing needed for growth and creation of new jobs. Over the past decade, local efforts have created a network of regional financial institutions to meet business needs. These organizations all have professional staffs and skilled boards, forming a development partnership which achieves bottom-line results in the form of new jobs. The achievements of these organizations have been quite impressive. Every part of the state has a regional financing organization serving it. Southwest Oregon is the home of CCD Business Development Corporation, the most senior of the organizations. Central and Southeast Oregon are served by the Oregon Certified Business Development l Corporation, while Northeast has the Greater Eastern Oregon Development I Corporation. The Columbia Gorge area is served by the Mid-Columbia Economic Development District and the Willamette Valley is covered by Cascades West Economic Development District and the Mid-Willamette Valley Economic Development District. The Portland area and Northwest Oregon are served by the Portland Development Commission and River East Progress, Inc. Tillamook County, not currently served by a local organization, may soon be served by River East and can now be served by 1 CCD, which has statewide operating authority. 1 Each of these organizations is structured differently to meet unique I local needs. Several of the organizations are closely affiliated with partnering organization. For example, Greater Eastern Oregon Development Corporation is affiliated with the East Central Oregon Association of Counties and provides finance packaging service to the Blue Mountain Intergovernmental Council Economic Development District counties. The Oregon Certified Business Development Corporation is I allied with the Central Oregon Intergovernmental Council. Cascades West Economic Development District is a partnership of the Oregon District 4 and Lane Councils of Governments, and is affiliated with Cascades West Financial Services. All of the regional institutions share a commitment to quality and service in developing their areas. Each organization is directed by a Board representing a partnership of the private and public sectors. i Funding and Financing Handbook, ODDA Page 3E Appendix D TYPICAL STRUCTURE PICS L OGRASI USES ELIGIBILITY AMOUNTS RATES TERMS OF THE LOAN SPECIAL CONDITIONS To finance land and building For-profit businesses. Maximum loan Below Bank Rata- 10 or 20 years. Private Lender 40.50% • Interim financing required on new construction. 503 acquisition.new construction:and Business should be 5500.000 or 49`16 of Actual rate determin. Life of the assets 504 40% .504 loans an subordinate to lead lender. Program long-term equipment,machinery, owner and user of assets. eligible project costs. ed at closing. is basis for term. Business 10-20% •One new job created for every$15,000 of 50= and fixtures, funds loaned. To finance land and building For-profit businesses. Maximum loan 5%-3% Up to 25 years. Private Lender 40.30% . Interim financing required on new construct:,,. Re- n acquisition:new construction;and 5100,000. Minimum Life of assets is RLF 339E •Works best with projects under 5200.000. g loan of$5,000. basis for term. Business 17-27% . RLF loan an subordinate to lead lender. long-term equipment.machinery, S r maximum .One new job created for eve S 10.000 of F i+ Fund fixtures and working capital+ � 1 �' term on working funds loaned capital. .This resource is locally controlled and offers flexibility. SBA 7(a) Provides a guaranty to lender for For-profit businesses. Maximum guaranty SBA allows 2.25% over Up to 25 years. Private Lender •Conventional lender originates loan and %%ill Loan financing land and buildings:short of 5500,000 or 90% prime for loans under 7 Life of assets is Maximum on receive a guaranty on refinance,new constru:- Guaranty and long-term equipment and of bank loan. years and 2.75% over basis for term. refinance 80+ tion•acquisition of assets,and working capital. Program machinery:furniture,fixture-,and prime for loans over 7 Maximum on working capital. years(fixed or variable). new assets 90: Oregon To finance land and buildings: For-profit businesses. Maximum loan of I point below Treasury Up to 25 years. Private Lender 4.3-W., • Interim financing required on new construction. 3usiness short and long-term equipment. 5250,000 or 40% of securities equal to term. Life of assets is OBDF 40r •OBDF loan an subordinate to lead lender. Development machinery.fixtures.and furniture: eligible project costs (fixed rate) basis for term. Business 10-20 r •One new job created for every S15.000 o Fund and limited working capital OBDF funds loaned. Or- -1 To finance land and buildings: For-profit businesses. Maximum loan of 5-10% (negotiable with Up to 15 years. Private Lender 40-50$ . Interim financing required Cor ly short and long-term equipment. $500,000 or 1/3 of participating City or Life of assets is OCD 33% . Davis/Bacon wage rates are required on nit Development machinery, fixtures: research and eligible project costs, Countyl basis for term. Business 17.30% labor in the project Fund development:working capital. .City/County receives a grant and reloans t, business. .OCD may subordinate to lead lender. .One new job crated for every S 12.000 of 0C L) funds loaned e For more information contact Terry Edvalsen, Director, Eastern Oregon State College, 8th and K, La Grande, Oregon, 97850 — (503) 963-1755. l (For addresses to some of these institutions refer to the Small Business Development Center and Councils of Government sections.) *Information by Terry Edvalsen, Director, Eastern Oregon State College. **The following page is a description of generally available federal and 1 state business financing programs for which regional organizations Jf provide financial packaging services. 1 I I l .1 l l f 1 Funding and Financing Handbook, ODDA Page 36 _ 1 ` SUNHASY There are millions of ways to fund and finance commercial revitalization projects and programs and there is revenue out there that is available for worthy development projects. But much of the time the reason these projects don't get funding is because no one knows where to look for that revenue. Thus it is important to try to get a sense of where the money is and what the requirements are for applying for this money. This handbook has given several ideas, both"obvious" sources and not so well known sources, of where money can be found to finance projects. No matter what you're trying to finance, it is essential that the program is well planned and organized so that it can be "sold" to the potential sponsor. The future funding of a program will depend on its history of t success so this planning and organization as well as the enthusiasm and 1 community support will play a major role in the continuation of a program's funding. ` For any additional information or for additional references on funding • and financing commercial revitalization projects contact the Oregon Downtown Development Association. 1 1 I _J I I 1 Funding and Financing Handbook, ODDA Page 37 __l SECTION 400 - URBAN RENEWAL PLAN OBJECTIVES The Primary Objectives of the Plan are to improve the function , condition and appearance of the public facilities within the Project Area so that the private sector will be encouraged to develop new structures and uses and to rehabilitate those older properties which are capable of such action . More specifically, the following objectives , not in any order of priority, are included , but not limited to: A. Reorient the City' s core area both physically and economically so that it will be attractive and used —� throughout the entire year by people of all. ages. B. Recognize and plan - for the core area ' s dual function of serving the commercial needs of visitors to Seaside as well as a downtown retail center for local residents . C . Encourage the introduction into Seaside of nationally recognized , quality tourist lodging facilities so that utilization of the existing convention center may be maximized . =L D. Support and strengthen the business core through the provision of attractive and comfortable pedestrian facilities . E. Initiate and implement a visually integrated street furniture _ program consisting of benches , trash receptacles , night = lighting standards, planting area , sheltered walk-ways and other people-pleasing amenities . _ F . Construct needed public facilities such as beach-oriented - bath house , public rest rooms and prom related amenities . -� G . Initiate and develop a street tree planting program to -- enchance the physical and visual environment consistent with the great beauty of the north Oregon coast . H . Provide additional public , off-street parking facilities for the convenience of local residents and visitors . I . Where necessary, construct , install and replace now hubl. icly owned utility systems such as water , storm drains and sanitary sewers where existing systems are inadequate , undersized or substandard . J . Improve and , where necessary, modify present public streets and alleys by the installation of new surfacing , curbs , gutters and sidewalks . ` K. Eliminate blighted and deteriorated stictures which are not suitable for conservation or rehabilitation . L . Eliminate other blighting influences which prevent the area from realizing its full economic and environmental potential . -. M. Where feasible and necesssary, cause privately-owned utilities to upgrade their facilities and distribution- communication system. Such activity will include an in-depth analysis of the feasibility of undergrounding present overhead power distribution , telephone and television systems. Such undergrounding is ceemed as a desirable activity to eliminate visually unattractive and property depreciating influences consistent with other redevelopment and rehabilitation activities that are a part of this Plan . N . Develop a program -to involve the people of the area in the planning , redevelopment and rehabilitation process . O. Make maximum use of ,the Necanicum River for marina and other recreation-oriented uses . P. Incorporate into a theme for the Project the fact that the historic Lewis and Clark Trail terminated with the area now =g- encompassed by the City of Seaside . Q. In light of the pending energy shortage , encourage all forms of public transportation-=rail ; bus and air--to provide improved passenger service to the City of Seaside . i ar -10- - SECTION 800 - METHODS FOR FINANCING THE PROJECT A. General Description of the Proposed_ Financing Methods - The Seaside Improvement Commission may borrow money and accept advance$, loans , grants and any other form of financial assistance from the Federal Government, the State, City, County, or other public body, or from any sources , public or private, for the purposes of undertaking and carrying out the Project, or may otherwise obtrain financing as authorized by ORS Chapter 457 . Upon request of the Seaside Improvement Commission, the Council of the City of Seaside may from time to time issue revenue bonds, certificates, or debentures to assist in financing the project . The funds obtained by the Seaside Improvement Commission shall be used to pay or repay any costs , expenses , advancements and indebtedness incurred in planning or undertaking the Project or in otherwise exercising any of the . powers granted by ORS Chapter 457 in connection with carrying out the Project . ,X B. Self-Liquidation of Costs of Project - The project may be financed, in whole or in part, by self-liquidation of the costs of the Project as provided in ORS 457 . 420 through 457 . 460. The ad valorem taxes , if any, levied by a taxing body upon the taxable real and personal property situated in the Project Area , shall be divided as provided in ORS 457 . 450 . That portion of the taxes representing the levy against the increase , if any, in true cash value of the property located in the Project Area , or part thereof , over: the true cash value specified in the certificate (or amendment to the certificate) filed under ORS 457 . 430 , shall , after collection by the tax collector , be paid into a :special fund of the Seaside Improvement Commission acting in their capacity as the Urban Renewal Agency, and shall be used to pay the principal and interest on any indebtedness incurred by such Commission to finance or refinance the Project . C. Prior Indebtedness - Any indebtedness permitted by law and incurred by the Seaside Improvement Commission or the City in connection with preplanning for this Urban Renewal Plan may be repaid from tax increments from the Project Area when and if such funds are available . -20- SECTION 900 - OTHER PROVISIONS A. Citizen Participation - The activities and projects _ identified in this Plan , the development of subsequent plans and regulations , and the adoption of amendments to this Plein shall be undertaken with the participation of - citizens , ' owners, and tenants as individuals and organizations with interests in the Project Area . B. Conformance with City General Plan - This Urban Renewal Plan is in conformity with the General Plan of the City. The General Plan of the City is represented by the City ' s Comprehensive Plan, Zoning Ordinance and all other applicable plans , ordinances and policies of the City of Seaside . C. The tax proceeds collected pursuant to the provisions of: Section 800-B of this Plan , commonly referred to as " tax increment proceeds" , shall be terminated no later than the end of fiscal year 1997-98 : -21- Seaside , Oregon URBAN RENEWAL PROJECTS COMPLETED PROJECT DESCRIPTION COST Million Dollar New sidewalks , water $1 , 300 , 000 Show lines , sewer lines, pavements , brick cross- walks & intersections , planting areas on main street. Sand Dollar Square Purchased area for $260 , 000 Parking Lot approximately 85 vehicles. RV Parking Lot Developed area along $50 , 000 Highway 101 adjacent to Chamber of Commerce building for RV parking , including dump station. Chamber of Commerce Construction set of public $58 , 000 Restrooms restrooms along Highway 101 adjacent to Chamber of Commerce building . Downing Square Closed one block of Downing $55 , 000 Street adjacent to main street and constructed pedestrian mall . Avenue 'U ' Developed public restrooms $100 , 000 Restrooms & with a parking area for Parking Lot 10 vehicles at Avenue "U ' and Prom. 2 . 25 MGD Sewer Provides 40 percent of $109 , 200 Plant local share . (per year- 10 years ) Columbia Street Purchased property and $400 , 000 Parking Lot developed parking for 112 vehicles . Columbia Street New pavement, sidewalks , $31 , 000 Improvements brick crosswalks , planting areas , water lines constructed in one-block area adjacent to main street . Street Sweeper Provided one-half the cost $34 , 000 of new city street sweeper . Prom Railing Repaired and "rehabilitated" $151 , 000 5 , 000 feet of historic 60- year-old Promenade. Prem Improvements Constructed concrete bench $14 , 000 "pads" at various locations along the Prom. Installed new benches & trash receptacles in these areas . * Avenue 'A' New sidewalks, pavement, $465, 000 Improvements brick crosswalks & Inter- sections, storm sewers, and planting areas in three-block area adjacent to main street. **Riverfront Park Walkways, observation decks, $600, 000 piling & concrete foundations, fishing & boat dock, restroom facilities, lighting, and landscaping in two-block area on both sides of river flowing through downtown & adjacent to main street. *Estimated Completion Date: 5/1/87 **Estimated Completion Date: 6/1/87 _ CENTRAL DOWNTOWN BUSINESS IMPROVEMENT AREA NO. 2 INITIATIVE PETITION The undersigned, are the owners of businesses located U within the improvement area proposed hereby and will be re- quired to pay fifty percent (50%) , of the proposed total project cost of $600, 000. The City will pay $300 ,000 from increased revenue from the proposed district and the owners of businesses s will pay $300 ,000 through special assessments as outlined in this petition. The total project cost includes the professional management expenses of a Business Improvement Coordinator, with- in the proposed improvement area. Wp, the undersigned, do hereby petition the Longview City Council to establish a Business Improve- „ ' ment Area as provided under RCW Chapter 35. 87A for the purpose of promotion of retail trade and other business activities within the area. The boundaries of the proposed area are set forth in Exhibit "A" attached hereto and by this reference incorporated here- in. The revenues from such special assessments shall be used solely 203 for theose ur of retiring, in whole or in part, bonds or P P g improvement notes to be issued by said City for the construction. of the "Green-Up Plan" as proposed by the Community Redevelopment Commission, consisting of trees, benches, cross-walks, expanded intersections, bicycle racks, period lighting and other appur- tenances necessary as outlined therein. t We further hereby request the Longview City Council to levy annual special assessments against all types of businesses, MR including professions, within said area to pay for the aforesaid proposed uses and projects, said special assessments to be in :.t N i 1 t accordance -with the estimated rates and upon the proposed classes ! of business as follows: CLASSES GROSS ANNUAL RETAIL SALES - RANGE ANNUAL SPECIAL ASSESS. ZONES 1 2 3 Class I 10,000 to 1(i0,000 60 30 15 i Class II 100, 000 to 3(0,000 160 80 40 Class III 300,001 to 500 ,000 300 150 75 Class IV 500,001 to 1 ,000,000 600 300 ' 150 Class V 1, 000, 001 to 3, 000,000 1,000 500 250 Class VI 3, 000,001 and over 11600 800 400 � "Gross annual retail sales" shall be construed to mean the gross income of the business" as such term is defined in RCW 82.04. 080. The total estimated cost for the construction of such facilities including the Business Improvement Coordinator is $600,000. 00. We hereby further request that such special assessments be levied over a period not to exceed 18 years for the purpose of paying $300,000. 00 of the total estimated cost of such program, together with any . interest or bonds or improvement notes which " may be issued by the City for such purpose and that the annual t special assessment then be terminated unless a majority of the businesses within the area request an extension or modification with appropriate hearings as provided under RCW Chapter 35.87A. Each person whose signature is affixed hereto hereby certifies that he 'is the owner, or the authorized agent of an owner, of a business operating within the area as described in ! i Exhibit "A" . !7 O w.v 7-u w N Al A u Methods �f FI�t1g11� 4. Revenue Bonds. .ne city may issue bonds secured by part or all of the revenues from a Developing an acceptable financing program is the public improvement that will produce income. key to the success of the plan. Following is a This bonding method is presently being used summary of financing methods which may be ap- to acquire and develop a public parking lot plicable to different public and private projects in the downtown. proposed in the plan. One difficulty is in finding an improvement A. Municipal Methods with sufficient revenue to establish the feasibility of the bond issue. Interest rates 1. Cit_ General Fund. The city's general fund for revenue bonds are higher than for general typically pays or programs which have city- obligation bonds. Feasibility requirements for wide benefits. These include police and fire this type of bond is approximately two times protection, general administration and planning, debt service.This means revenue available to_ utility and street improvements, and general make the annual interest and principal pay- maintenance. ment needs to be twice the amount required. A feasibility study is generally a prerequisite Downtown improvements made from the gen- for this type of financing. eral fund will need to demonstrate a benefit to the entire community.This method of. It is possible to issue a combined revenue and financing is the least costly because improve- general obligation bond.The available revenue ments are made on a pay-as-you-go basis with is used to pay as much of the debt service as no interest charges. possible and general taxation is pledged to Improvements which may qualify for general make up any deficiency.This type of bond is in reality a general obligation bond and is fund expenditures in Downtown Milwaukie subject to the same limitations and conditions. are street resurfacing and marking, street signing, traffic signals and railroad crossing 5. Tax Allocation Bonds. This method of financ- signals on 21st Street. ing accomplishes self-liquidation of costs of an urban renewal project through the sale 2. Local Improvement District. Under the Bancroft �1 3. 7 , bonds may be of revenue bonds. The bonds are retired by Bonding Act (ORS issued for specified local improvements. Special the increase in taxes resulting from increased assessments are specifically authorized for property valuation in the project area. pedestrian malls (ORS 376.720).These bonds The self-liquidation of costs of an urban re- are secured by a special assessment or tax that newal project is provided for in Article IX, is based on benefits to property. Only the prop- Section IC of the Constitution of the State of erty directly benefited is charged, and the charge Oregon.The Oregon Revised Statutes define the is in proportion to the benefit.The bonds are powers of the municipal urban renewal agency issued and administered over a 20-year period by in Section 457.170 and 457.180. The means of the benefited property owners. financing urban renewal projects through self- In Downtown Milwaukie,a local improvement liquidation of costs is defined in Section district made up of property owners can finance 457.410 to 457.450. improvements within the public right-of-way and on public property. These can include the The procedure is as follows: construction of street, sidewalk and mall improvements, underground utilities and off- (1) A redevelopment plan of specific public street parking. and private improvements is prepared. This method can be combined with other local (2) A feasibility analysis of the plan is made. financing or as the local share of a federally assisted program. (3) The redevelopment plan and financing 3. General Obligation Bonds. These are the custo- method is adopted by the redevelopment mary municipal bonds backed by the general agency,the planning commission,and the credit of the city. These bonds require voter city council. approval and are limited in aggregate to not more than 3 percent of the true cash value of (4) The plan is filed with the county assessor the city's taxable property. General obligation who then certifies the current true cash value bonds are ordinarily used to finance improve- and freezes the assessed value of the project ments having a city-wide benefit. area. (5) Revenue bonds are sold for ject improve- C. Federal Assistar meets. 1. Urban Beautification. Grants are made to com- (6) Project improvements are undertaken. munities to assist in the beautification of public rights-of-way and public property. Up (7) The bonds are retired by taxes on the in- to 50 percent of the amount by which the creased assessed value above the frozen asses- applicant increases expenditures for beautifica- sed value. tion above the average expenditures for the preceding two years can qualify for a matching The value of this financing method is that it grant.The grant can be used for park develop- can pay for improvements without placing a ment and the beautification or improvement burden on the city or the project property of malls, streets, and other public areas. owners.The city as a whole benefits because a low value area is upgraded which decreases the 2, Advance Land Acquisition. Grants are available city-wide property tax rate. However,this to pay interest costs incurred to finance the benefit is deferred until after the revenue acquisition of land for a period of up to five bonds have been retired.As additional develop- years in advance of its use !or approved public ment takes place beyond the project improve- purposes. In some circumstances,this time ments, additional tax revenue will be available period may be extended.The use of the land to pay off the bonds in a shorter period. must be consistent with the adopted plan for the area. This program may apply to the acqui- Tax allocation bonds can be used as the local sition of land for a new civic center. share of a federal urban renewal project. For this reason, redevelopment standards used by 3, Public Facilities Loans. Long-term loans are the local redevelopment agency should conform made to help communities finance needed to federal urban renewal requirements. public works. Loans for up to 40 years and 6. County Participation. County funds may be covering up to 100 percent of the project cost used to assist in the construction of improve- are made to finance the construction of public ment projects within the city.These projects buildings or other public works. Loans are are generally limited to the improvement of available only for those parts of a project not county-maintained roads or other projects covered under other federal assistance programs. which the county considers appropriate for Priority is given to smaller communities re- assistance. quiring assistance for construction of basic public works. B. State Assistance. 4. Water and Sewer Facilities. This program helps 1. Highway Construction. State assistance for communities construct basic water and sewer downtown street projects is limited to con- facilities. Grants are available to pay 50 percent struction and improvement of the state high- of the land and construction costs. The facilities way system. The funds for this purpose are a must be consistent with a comprehensive plan combination of state and federal monies for the community. administered by the State Highway Depart- ment.The right-of-way acquisition and The construction of storm sewers in Downtown widening of McLoughlin Boulevard will be Milwaukie can be paid for in this manner.The funded by this method. local share can be in the form of a serial levy which is a property tax imposed over a maxi- 2. Willamette River Greenway. The Willamette mum ten-year period. River G reenway is also administered by the State Highway Department.The purpose of this program is to obtain and preserve public 5. Urban Renewal. The urban renewal program access to the Willamette River. aids communities in eliminating blight condi- tions and to rebuild deteriorated areas. Grants State and federal funds are available to pay cover up to 75 percent of the project cost for 75 percent of the cost of waterfront land cities under 50,000 population.The local acquisition. The local agency is responsible for contribution may include cash or non-cash the remaining 25 percent.This program does grants-in-aid. Money used to finance other not allow acquisition by power of eminent projects using federal assistance may be used domain, nor does it provide funds for as part of the local share of an urban renewal development. project. �n 1 41C MdJUI eienleiits ,n urban renewal pro- imprc lents. Eligible project expenses include ject are: needed public improvements such as streets, + curbs, sidewalks, lighting, and landscaping. (1) Land acquisition, clearance, and redevelop- Undergrounding of utilities and land acquisi- ment of properties as warranted. tion are not eligible expenses. (2) Elimination of public hazards and con- Property owners and tenants may qualify for struction of public improvements. 3 percent rehabilitation loans to make their property comply with local codes. The city is (3) Three percent rehabilitation loans to indi- required to systematically enforce its building vidual property owners and tenants to bring code within the project area. tt must also have property up to minimum code standards. a program of continuing code maintenance and (4) Relocation assistance for individuals, enforcement throughout the city. families, and businesses displaced by project b. Rehabilitation. The rehabilitation program activities. goals are basically the same as those for the code enforcement program. Added standards This method of Financing downtown improve- and eligible project expenses are the major ments requires a commitment by the communi- differences. ty to a specific program and its attendant costs. It is difficult to terminate an urban Rehabilitation requires that all structures in the renewal project before completion of all its project area meet certain standards. This means t phases. buildings which are in compliance with local codes might still have to be demolished because In an urban renewal project, property owners of insufficient construction or quality. may participate in the redevelopment of their properties. The urban renewal agency can Eligible project expenses are expanded to purchase and demolish unsound buildings, include undergrounding of utilities and land relocate tenants, and turn the cleared land acquisition for public improvements. Rehabili- back to the owner for private improvements tation loans are also available in this program. specified in the plan. Past public expenditures in the area can be used A tenant who must relocate because of re- in figuring the local 25 percent contribution. development will be compensated for his move There is no limit to the financial size of the pro- and new quarters will be made available to him. ject, providing both federal and local funding is available. Two types of urban renewal programs may apply to Downtown Milwaukie; code enforce- 6. Rehabilitation loans. This program helps owners ment and rehabilitation. finance repairs and improvements to their prop- erty. Loans at 3 percent interest for up to 20 a. Code Enforcement. This program can help years are made for property improvements in communities restore the stability of sub- urban renewal areas. Nonresidential loans can- standard areas and prevent further decline. not exceed the lesser of$50,000 or the cost of It involves the concentrated enforcement of rehabilitation. Other limitations on loans may local codes and the provision of adequate apply to specific properties. supporting public facilities and services. rants u to three Applicants may be owners of property or ten- In selected problem areas g P ants of nonresidential property whose leases fourths of the program costs are made for will not expire during the loan term. Applica- planning, reviewing and administering concen- tion is made to the local public agency adminis- trated enforcement of local codes and the pro- tering the urban renewal or code enforcement vision of adequate supporting public facilities project. and services. There are no 3 percent loan funds presently In selected problem areas, grants up to three- available under the code enforcement or fourths of the program costs are made for rehabilitation programs for private property planning, reviewing and administering con- improvements. Conventional or Small Business centrated code enforcement programs. Two Administration financing will have to be used and one-half times the amount needed to ad- if an urban renewal project is undertaken for minister the program is available for public Downtown Milwaukie. 20 7. Neighborhood Development 1, gram. This pro- (1) A direct I. for 25 years at 5.5 percent T gram consists ot urban renews activities which interest.This loan is without participation of are planned and carried out on the basis of local financing institutions. annual increments. Communities can proceed simultaneously with the actual renewal of (2) A guarantee plan under which 90 percent specific projects and with detailed planning and of a bank loan to a local development corpora- scheduling of subsequent renewal. The program tion is guaranteed by the SBA.This loan will 3 provides 75 percent federal matching grants to carry the prevailing interest rate and will cover development activities for a 12-month generally have a shorter term than the direct period, and planning activities for the next 12 loan method. s' months. Relocation assistance and 3 percent 3 rehabilitation loans are available to those who (3) A first mortgage plan under which a are eligible. financial institution lends 40 percent of the project cost at commercial rates with the D. Private Financing security of a first lien on project assets.The SBA lends another 40 percent at a maximum In addition to the financing normally available interest rate of 5.5 percent interest for a from private lending institutions,the Small Busi- 25-year term. The remaining 20 percent of ness Administration has two programs available. the project is supplied by the local development These are direct loans to small businesses and corporation as"equity", and may be in the loans for a Local Development Corporation under form of cash or property. the"502" program. Projects including both large and small businesses may be assisted.The formula for SBA participation is somewhat more complicated if businesses which do not qualify as"small businesses" are included. 1. Small Business Loans. The SBA can make guar- anteed loans to small businesses for construc- tion, expansion, conversion,and purchase of buildings, for purchase of equipment and materials, and for working capital.The SBA can guarantee up to 90 percent of a bank loan to a small firm up to a maximum of$350,000. This applies when reasonable financing terms are not otherwise available. These bank loans carry interest at prevailing bank rates. The SBA will also consider advancing funds on a participation basis with a bank when an entire loan is not obtainable from a private lender and an SBA-guaranteed loan is not available. When both of these loan methods are not available, the SBA will consider making a direct loan to a small business.The interest rate on both the SBA participation and direct loan programs is limited to 5.5 percent. 2. Local Development Corporation (502 program). The SBA may assist in financing a local develop- ment company specially formed to foster development of the community's small businesses. This corporation is owned pri- marily by local businesses and may be either . _ a profit or a non-profit corporation. SBA assistance to the local development corporation may be in three forms: CITY OF SALEM DOWNTOWN PARKING DISTRICT FISCAL 1987-1988 OPERATING BUDGET ESTIMATE SOURCE OF FUNDS Beginning Balance $ 16, 300 Parking Tax Assessments 134 , 020 Monthly Permit Parking 282 , 400 Parking Meter Collections (employees) 20, 000 Parking Ticket Collections (employees) 25, 000 Interest Earnings 5, 000 TOTAL SOURCE OF FUNDS $ 482 , 720 APPLICATION OF FUNDS OPERATION OF PARKING STRUCTURES: Maintenance $ 104, 360 Provides custodial service, including sweeping and minor maintenance repairs, elevator maintenance, lighting of structures, etc. Reflects the addition of the Marion Parkade parking structure, plus an increased level of maintenance at Liberty Square and Chemeketa Parkade. Security 102 , 970 Provides security guard service to protect against vandalism and to enforce parking structure rules and regulations. Reflects the addition of the Marion Parkade parking structure. Reserve Fund 20, 000 227 , 330 For future major maintenance items ON-STREET PARKING PROGRAM: Parking Enforcement 127, 300 Provides Parking Enforcement Officers to enforce "Free Customer Parking Program, " Sunday and Holiday parking, and clerical support for field activities. Data Processing 9 , 610 136, 910 ADMINISTRATION 36, 540 Provides staff support to Parking District Board, technical administration of special projects, and Parking Assessment Administration which includes billings and collection. SPECIAL PROJECTS: Christmas Tree Lighting 7 , 500 Christmas Decoration Replacement Fund 10, 000 Advertising and Other Promotional Activities 33100,Q 50, 500 CONTINGENCIES 16, 2.5 TOTAL APPLICATION OF FUNDS $ 467 , 53-5 UNAPPROPRIATED ENDING BALANCE $ 15, 15 Dc intown Parking C .strict Budget FY 1987 - 88 Source of Funds Interest 1z Tax Assessment 28Z Employee Parking Meters i/antn i y Parking Pe-rr,i is '' 4Z 597 Parking Tickets 5% Beg i nn i � Balance Application of Funds On-Street Parking Enforcement 29% Special Projects 11% Security Contingencies 22% 4% Administration 8% Maintenance Reserve Maintenance Fund 22% 4Z Operation of Parking Structures (48%) - - UNION STREET 11 z5 1 MARION SQUARE PARK ,MARION PARKADE;: 1 ,I�it�lt�/�I�I�It�I>•It�l�l�l� MARION STREET 't�tmt�tmt� iMERVYN'S 1 i II PAYLESS 1 MEIER i i Sf 30 FRANK ; SALEM CENTRE O PE NTER STREET 31 NORDSTROM 1 LJ.C.PENNEY SALEM CENTRO 1 1 CHEMEKETA STREET 1 LU W W T N LU W LU LU 49 U � 22 rn O x x 1 W 32 w �_ cc 1 0 m x i U ■ 1 � COURT STREET 1 1 1 REED 1 OPERA HOUSE I 1 j RUSENSTEIN'S 1 21 MARION 48 33 COUNTY O 1 COURT HOUSE 1 1 1 � 1 STATE STREET ; CAPITOL 1 CENTER 1 i PARKING j7,\ LIBERTY 1 DISTRICT �, SOUARE ; BOUNDARY r, FERRY STREET ; \,I I6 i \O I 35 19 O 1 TRADE STREET�t�1�It�1�It�l�tttt� 24 BLOCK NUMBER NORTH O OFF STREET PARKING PARKING STRUCTURES PARKING DISTRICT BOUNDARY DEPARTMENT OF COMMUNITY DEVELOPMENT CITY OF SALEM,OREGON JULY 1,1987