February 8, 2016 URA AgendaCITY OF WOODBURN
URBAN RENEWAL AGENCY
AGENDA
KATHRYN FIGLEY, CHAIR
TERESA ALONSO LEON, BOARD MEMBER WARD 1
LISA ELLSWORTH, BOARD MEMBER WARD II
ROBERT CARNEY, BOARD MEMBER WARD III
SHARON SCHAUB, BOARD MEMBER WARD IV
FRANK LONERGAN, BOARD MEMBER WARD V
ERIC MORRIS, BOARD MEMBER WARD VI
FEBRUARY H, 2016 - 6:45 P.M.
CITY HALL COUNCIL CHAMBERS - 270 MONTGOMERY STREET
CALL TO ORDER
2. ROLL CALL
3. CONSENT AGENDA
A. Urban Renewal Agency minutes of November 9, 2015 1
Recommended Action: Approve the minutes.
4. PRESENTATIONS
None.
5. PUBLIC HEARINGS
None.
6. GENERAL BUSINESS
A. ECONorthwest Services Agreement for Urban Renewal 3
Financial Forecast Analysis
Recommended Action: Staff recommends entering into a
professional services agreement with ECONorthwest in
order to complete the scope of work provided for the
Urban Renewal Financial Forecast Analysis.
7. PUBLIC COMMENT
8. ADJOURNMENT
February 8, 2016 Urban Renewal Agency Page i
URBAN RENEWAL AGENCY BOARD MEETING MINUTES
NOVEMBER 9, 2015
0:00 DATE COUNCIL CHAMBERS, CITY HALL, CITY OF WOODBURN, COUNTY
OF MARION, STATE OF OREGON, NOVEMBER 9, 2015
CONVENED The meeting convened at 6:30 p.m. with Chair Figley presiding.
ROLL CALL
Chair Figley
Present
Member Schaub
Present
Member Lonergan
Present
Member Carney
Present
Member Morris
Present
Member Ellsworth
Present
Member Alonso Leon
Present
Staff Present: Assistant City Administrator Row, City Attorney Shields, Captain
Alexander, Public Works Director Scott, Economic and Development Services Director
Hendryx, Human Resources Director Hereford, Finance Director Head, Sergeant Shadrin,
Accounting Manager Ellerbrook, Recreation Services Manager Wierenga, Communications
Coordinator
Horton, City Recorder Pierson
0:00 CONSENT AGENDA
A. Urban Renewal Agency minutes of September 14, 2015.
Lonergan/Carney... adopt the Consent Agenda with minutes corrected. The motion passed
unanimously.
0:01 URG 2014-03 145 ARTHUR STREET MASONIC LODGE - SECOND EXTENSION
Economic and Development Services Director Hendryx provided a staff report. Member
Morris stated that he will recuse himself from voting as he is a member of the lodge.
Lonergan/Ellsworth... approve the extension of URG 2014-03 145 Arthur Street Masonic
Lodge. The motion passed unanimously with Member Morris recusing himself.
URG 2015-12 702-722 YOUNG STREET (ROSERA)
Economic and Development Services Director Hendryx provided a staff report.
Lonergan/Carney... approve an exterior Urban Renewal grant in the amount of $3,325.
The motion passed unanimously.
URG 2015-13 303 N. PACIFIC HIGHWAY, CROSSROADS GROCERY & DELI
Economic and Development Services Director Hendryx provided a staff report. Member
Lonergan stated that he has concerns on the bid from Infinity as it has no company
information on the bid and he would like to see the City be a little bit more thorough when
we receive these bids. Schaub/Ellsworth... approve Sang Park's request for an exterior
Urban Renewal grant in the amount of $7,565. The motion passed unanimously.
Page 1 — URA Board Minutes, November 9, 2015
URBAN RENEWAL AGENCY BOARD MEETING MINUTES
NOVEMBER 9, 2015
URG 2015-14 405 N. FIRST STREET (CHAY PROPERTIES, LLC)
Economic and Development Director Services Hendryx provided a staff report.
Lonergan/Alonso Leon... approve an exterior grant application from Chay Properties,
LLC, for up to $1,766. The motion passed unanimously.
0:27 ADJOURNMENT
Morris/Ellsworth ... meeting be adjourned. The motion passed unanimously.
The meeting adjourned at 6:55 p.m.
ATTEST
Heather Pierson, City Recorder
City of Woodburn, Oregon
APPROVED
KATHRYN FIGLEY, CHAIR
Page 2 — URA Board Minutes, November 9, 2015
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February 8, 2016
TO: Honorable Mayor and City Council through the City Administrator
FROM: Jamie Johnk, Economic Development Director
SUBJECT: ECONorthwest Services Agreement for Urban Renewal Financial
Forecast Analysis
RECOMMENDATION:
Staff recommends entering into a professional services agreement with
ECONorthwest in order to complete the scope of work provided for the Urban
Renewal Financial Forecast Analysis.
BACKGROUND:
The City completed its Urban Renewal Plan July 2009. As outlined in the Plan,
financial forecasting was completed resulting in assumptions on the anticipated
tax increment revenue generated over the life of the Plan as well as to determine
the maximum indebtedness the City could reach using urban renewal revenue.
With the tax increment revenue and maximum indebtedness projections, the City
identified projects significant to the community's economic vitality and quality of
life. These projects included improving streets and sidewalks throughout the
urban renewal district, as well as streetscaping, building restorations, public
improvements, and additional projects.
Since the adoption of the Urban Renewal Plan, tax increment financing has been
invested to complete a number of projects in the district, however there are a
number of projects yet to be completed, including the First Street improvements.
Due to slower investment within the district than projected as well as the recent
retirement of a school bond, the Woodburn Urban Renewal is experiencing a
decline in the annual tax increment revenues. This decline in increment impacts
the City's borrowing capacity needed to complete additional urban renewal
projects identified in the Plan, specifically First Street in downtown.
Agenda Item Review: City Administrator _x City Attorney _x_
I
Finance
Honorable Mayor and City Council
February 8, 2016
Page 2
DISCUSSION:
In order to have confidence in future urban renewal tax increment projections
and to clarify borrowing capacity, it would be advantageous to the City to
complete an updated financial forecast of the tax increment revenues for the
Woodburn Urban Renewal Area. Therefore, the City has asked ECONorthwest to
draft the attached scope of work to complete the Urban Renewal Financial
Forecast Analysis.
FINANCIAL IMPACT:
The cost to complete the scope of work outlined in the Urban Renewal Financial
Forecast Analysis with ECONorthwest is not to exceed $5,000.
N
ECONorthwest
ECONOMICS - FINANCE • PLANNING
DATE: February 2, 2016
TO: Jamie Johnk
FROM: Nick Popenuk
SUBJECT: SCOPE OF WORK FOR WOODBURN URBAN RENEWAL FINANCIAL FORECAST
The City of Woodburn ("City") desires an updated forecast of Tax Increment Finance (TIF)
revenues for the Woodburn Urban Renewal Area, The City has asked ECONorthwest to
conduct this analysis. This document describes the scope of work, budget and schedule of the
requested analysis.
Data acquisition and review. Obtain and review assessment data relevant to the
Woodburn URA. At a minimum, we would obtain aggregate summary assessment data
for the entire URA for the most recent fiscal year. Preferably, we will obtain data for past
years as well, to identify historical trends. Preferably, we will obtain parcel -specific
assessment data to provide more nuanced forecasts of TIF revenue. The exact format
and detail of data, and the number of years of historical data, is dependent upon
information made available by the Marion County Assessor.
■ Verification of property tax rates. The consolidated tax'rate for the calculation of TIP
revenues can vary over time, if the area includes general obligation bonds or local option
levies (note that more most urban renewal areas, only general obligation bonds or local
option levies approved by voters prior to 2001 count as part of the consolidated tax rate).
We would verify the current tax rate for the area, identify components of the rate (if any)
that may vary over time, and forecast those future rates based on the timing of local
option levy expirations and general obligation bond debt service schedules.
■ Determination of scenario growth rates. Our analysis will include multiple scenarios,
modeling different growth rates. This step of the analysis will be to identify the growth
rates to use for each scenario. This growth will include both specific known
development projects that have occurred in the most recent calendar year, or are
planned for construction in the current calendar year, as well as more generic
assumptions for long-term trends in real market value growth. The analysis will include
a conservative baseline forecast, as well as medium- and high-growth forecasts. Each of
the forecasts will be informed by recent historical trends in the URA, as well as growth
rates, City- and County -wide, and conversations with City staff.
■ Forecast TIF revenues. After obtaining the assessment data, verifying tax rates, and
determining growth rates, we will enter the information into our TIF Forecast Excel
templates, forecasting TIF revenues for the next 20 years. We will provide a separate
Excel workbook for each of the three scenarios that are modeled,
Presentation of key findings. We will provide the Excel workbooks to City staff, and
provide an overview of the analysis via conference call. During this call, we will answer
any questions the City has on the analysis, and. (if necessary) make any revisions to the
analysis.
ECONorthwest I Portland I Seattle I Eugene I Bolse j eccnw.corn
I
ECONorthwest proposes completing all tasks described in this scope of work for a total cost not
to exceed $5,000. All work would be billed on a time -and -expense basis. Work would be
conducted primarily by Nick Popenuk ($150/hour). Work would be complete within four weeks
of receiving County assessment data.
CONoghwest
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