February 12, 2018 URA Agenda LEY,CHAIR
CITY OF WOODBURN KATHRYN I MEMBER
JUAN SERRATOS,BOARD MEMBER WARD�
LISA ELLSWORTH,BOARD MEMBER WARD II
URBAN RENEWAL AGENCY ROBERT CARNEY, BOARD MEMBER WARD III
SHARON SCHAUB,BOARD MEMBER WARD IV
AGEND(�
j�iT FRANK LONERGAN,BOARD MEMBER WARD V
A RDA ERIC MORRIS,BOARD MEMBER WARD VI
FEBRUARY 12, 2018-6:45 P.M.
CITY HALL COUNCIL CHAMBERS-270 MONTGOMERY STREET
1 . CALL TO ORDER
2. ROLL CALL
3. CONSENT AGENDA
A. Urban Renewal minutes of December 11, 2017 1
Recommended Action: Approve the minutes.
4. PRESENTATIONS
A. Woodburn Urban Renewal Agency Annual Report 2
5. PUBLIC HEARINGS
None.
6. GENERAL BUSINESS
None.
7. PUBLIC COMMENT
8. ADJOURNMENT
February 12, 2018 Urban Renewal Agency Page i
URBAN RENEWAL AGENCY BOARD MEETING MINUTES
DECEMBER 11, 2017
0:00 DATE COUNCIL CHAMBERS, CITY HALL, CITY OF WOODBURN, COUNTY OF
MARION, STATE OF OREGON, DECEMBER 11 , 2017
CONVENED The meeting convened at 7:05 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 Serratos Present
Staff Present: City Administrator Derickson, City Attorney Shields, Assistant City Administrator
Row, Community Development Director Kerr, Police Chief Ferraris, Interim Public Works Director
Liljequist, Economic Development Director Johnk, Assistant City Attorney Granum, Recreation
Services Manager Cuomo, Community Relations Manager Gutierrez-Gomez, City Recorder Pierson
0:00 CONSENT AGENDA
A. Urban Renewal Agency minutes of November 13, 2017.
Lonergan/Ellsworth... adopt the Consent Agenda. The motion passed unanimously.
URG 2017-01 (479 N. FRONT STREET—ORGN PROPERTIES LLC)
Economic Development Director Johnk provided a staff report. Lonergan/Ellsworth... approve the
Building Improvements Program Grant Application (Program) from ORGN Properties, LLC
(Applicant) for $13,610 on the property located at 479 N. Front Street. The motion passed
unanimously.
ADJOURNMENT
Morris/Schaub... meeting be adjourned. The motion passed unanimously.
The meeting adjourned at 7:11 p.m.
APPROVED
KATHRYN FIGLEY, CHAIR
ATTEST
Heather Pierson, City Recorder
City of Woodburn, Oregon
Page 1 —URA Board Minutes, December 11, 2017
1
WOODBURN URBAN RENEWAL AGENCY
Woodburn, Oregon
FINANCIAL IMPACT REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2017
Prepared by:
City of Woodburn
Finance Department
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Woodburn Urban Renewal Agency
Financial Impact Report
Fiscal Year Ended June 30, 2017
Introduction
Urban renewal agencies are required to prepare an annual report for the governing body and the public in
accordance with Oregon Revised Statute 457.460(ORS 457.460).The report includes a financial summary
of the preceding year and the budget for the new fiscal year. It also includes an analysis of the financial
impact of carrying out the urban plan on the tax collections for all taxing districts.
The following elements must be included as part of the financial summary:
• the amount of money received during the preceding fiscal year;
• the purposes and amounts for which any money received were expended during the preceding fiscal
year;
• an estimate of moneys to be received during the current fiscal year;
• a budget setting forth the purposes and estimated amounts for moneys that are to be expended
during the current fiscal year;
• an analysis of the impact,if any, of carrying out the urban renewal plan on the tax collections for
the preceding year.
The Urban Renewal Concept
Urban renewal is a process authorized by Oregon law (ORS 457) to finance improvements in those
neighborhoods and districts in need of revitalization with the intent to improve underdeveloped areas or
areas that have declined resulting in stagnated private development or investment. More specifically,urban
renewal is a funding method used to economically revitalize areas of"blight" through public investments
that stimulate private development. Examples of blight include buildings that are unsafe or unfit for
occupancy,inadequately maintained streets, or areas with environmental impacts. Due to these "blighted"
conditions,private developers,property owners or business owners are unable to generate sufficient returns
on potential development in the area. As a result, private investment stalls and the blighted conditions
remain.
The types of urban renewal activities undertaken generally include development of infrastructure and public
amenities (i.e., streetscape and infrastructure improvements, lighting, public open spaces, building
improvements, parks, etc.) and with these publicly funded efforts, investment becomes achievable for
private developers. Urban renewal allows a city to increase the level of public investment by providing
funds that can be used to match regional, state or federal funds for specific projects.
The goal is encourage private sector investment for the majority of the redevelopment funding by
selectively investing over a period of time. With the initial commitment of public funding the plan can
achieve the goals to construct necessary streetscape infrastructure improvements and provide public
amenities and to attract private investment.
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Woodburn Urban Renewal Agency
Financial Impact Report
Fiscal Year Ended June 30, 2017
Tex Increment Financing
The major source of funding for urban renewal projects has been tax increment financing. Once an urban
renewal district is established, the tax valuation for the district is "frozen". As properties appreciate, the
increase in taxes (the "increment") generated above the frozen base are used to pay for the outlay or debt
on specific projects within the urban renewal plan.
This tax increment financing works by identifying an area where property values are not rising as rapidly as
the rest of the community; drawing a line around it;planning for major public improvements like roadways,
street lighting,parks, and other amenities;securing funds to finance the public costs;implementing the plans
for public improvement; and encouraging private investment in the area. Then, as property values rise and
bring an increase in tax revenues, that increase sets the limit for the property taxes levied to pay off urban
renewal bonds.
Urban Renewal ih '' , lho
incremental Gh a ' rw'perty taxes
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During the 1990's,three Ballot Measures: Measure 5 (1990),Measure 47(1996), and Measure 50 (1997)made
significant changes to Oregon's system of property taxation influencing urban renewal programs and tax
increment revenue calculations. Those provisions provide the basic framework for revenue calculations in this
report.
To determine the amount of the taxes levied, the total assessed value within each urban renewal area is
segregated by the County Assessor into two parts: (a) the total taxable assessed value in the district at the time
the Urban Renewal Plan was adopted (the base or "frozen" value); and (b) the difference betweenthe frozen
base value and the current total assessed value (the incremental value or"excess"). The urban renewal agency
is entitled to the amount of property taxes levied on the increase in property values within the urban renewal
area.This revenue is used to pay for the projects designated in the Urban Renewal Plan or to repay indebtedness
incurred in carrying out the projects.
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Woodburn Urban Renewal Agency
Financial Impact Report
Fiscal Year Ended June 30, 2017
Woodburn's Urban Renewal Plan
The City of Woodburn established the Woodburn Urban Renewal District pursuant to Oregon Revised Statutes
(ORS) Chapter 457, the Oregon Constitution, and all applicable laws and ordinances on March 13, 2001,upon
adoption of Ordinance 2283. On August 13, 2001, the City adopted Ordinance 2298 establishing the maximum
indebtedness of the Plan of $29.3 million. The City's urban renewal redevelopment area consists of
approximately 260 acres, all within the Woodburn city limits. In general, the area includes the historic
downtown, Front Street to Highway 214 and Highway 214 to redevelopment sites on Stacy Allison, Young
Street to Highway 99 and Highway 99 to Highway 211. The Woodburn's urban renewal is governed by the
Urban Renewal Agency,which consists of the City's Mayor and City Council members.
The Urban Renewal Plan states the following overall renewal goals:
• Public improvements
• Redevelopment through new construction
• Preservation,rehabilitation, development and redevelopment
• Property acquisition and disposition
• Plan administration
The Core Values created by the Urban Renewal Agency are as follows:
• Ensure positive return on investment
• Cultivate resources and investment in underutilized or blighted areas
• Job creation
• Economic vitality
• Establish downtown as a destination
• Historic preservation and cultural interpretation
Urban RenewalI pact
The Woodburn Urban Renewal program has played a key role in revitalization.Through public investments
and business development partnerships,urban renewal will continue to be a catalyst for making Woodburn
a more economically vital, livable and sustainable place. The number of significant public investments
include: Downtown Plaza, Historic Locomotive, Front Street, Fire Station, First Street, Downtown
Alleyways, Downtown Public Restroom, Bungalow Theater, Building Improvement Grant/Loan Program.
Major Project Costs by Year
Actual Actual Actual Budget
Capital Outlay Project Description 2014-15 2015-16 2016-17 2017-I8
Grant and Loan Program $ 127,709 $ 36,067 $ 54,680
Woodburn Fire District Remodel $ 676,000
First Street Design/Reconstruction $ 87,473 $ 20,283 $ 400,000
Construct Downtown Public Restroom $ 99,674 $ 200,000
Bungalow Theater/Museum Restoration $ 200,000
Alleyway Beautification $ 24,868 $ 122,000
Financial Study $ 8,577
$ 803,709 $ 123,540 $ 208,082 $ 922,000
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Woodburn Urban Renewal Agency
Financial Impact Report
Fiscal Year Ended June 30, 2017
Effect of Urban Renewal on Taxing Districts
Carrying out an urban renewal plan has an effect on the amount of property taxes received by the overlapping
taxing districts of Woodburn's urban renewal areas. A portion of property taxes that were to be received by
the taxing bodies that levy property taxes within Woodburn's urban renewal areas are redirected to
Woodburn's Urban Renewal Agency for the agency's projects and programs.
Passage of Ballot Measure 50(Article XI, Section 11 of the Oregon Constitution)resulted in converting most
property taxes (i.e.,tax bases) from a levy-based system to a rate-based system. Schedules provided later in
this Report reflect the `post"Measure 50 financial impact by taxing district for Woodburn's Urban Renewal.
The following schedules show the impact of the division of taxes on the overlapping taxing jurisdictions for
the prior fiscal year and the current fiscal year.
The schedules include each taxing entity's:
• Permanent taxing rate is the levy imposed on every thousand dollars of assessed property value
• Adjusted district rate is the rate that the district will receive net of the URA calculation
• URA division of tax rate is the rate redirected from the taxing entity to the urban renewal agency
• Shared value is the common value of the underlying properties within the URA and the overlapping
taxing entities
• Calculated property taxes from each taxing entity that is redirected to the urban renewal agency
Woodburn Urban Renewal Agency(URA)
Financial Impact of the Division of Taxes on Overlapping Taxing Jurisdictions
Fiscal Year Ending June 30,2017
Adjusted URA District Division
Permanent District Division of Shared o
Taxing District Rate Rate Tax Rate Value Tax
Marion County $ 3.0252 2.9421 $ 0.0831 1,524,882,342 $ 126,718
City of Woodburn 6.05 5.8872 0.1662 1,524,882,342 253,435
Woodbum Sschool District 4.52 4.4005 0.1242 1,524,882,342 189,390
Woodbum Fire District 1.60 1.5570 0.0439 1,524,882,342 66,942
Willamette Regional ESD 0.30 0.2886 0.0081 1,524,882,342 12,352
Chemeketa Community College 0.63 0.6088 0.0171 1,524,882,342 26,075
Regional Library 0.08 0.0796 0.0022 1,524,882,342 3,355
Marion Soil&Water 0.05 0.0491 0.0009 1,065,943,645 1,042
MC&4-H Extension Service 0.05 0.0487 0.0013 1,524,882,342 1,982
Totals $ 16.3086 $ 15.8616 $ 0.4470 $681,292
%of Total Permanent Rate 2.74%
Less: Truncation Loss -
Less: Compression Loss -
Total URA Lev $681,292
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Woodburn Urban Renewal Agency
Financial Impact Report
Fiscal Year Ended June 30, 2017
Financial Reports
The following financial reports account for the activities of Woodburn's Urban Renewal program. In
accordance with ORS 457.460 (1), these reports were prepared using the same basis of accounting it uses
to prepare its financial statements --modified accrual basis of accounting. The total revenue for the fiscal
year ended June 30, 2017 was $654,731. Woodburn's Urban Renewal program receives property taxes
according to the division of taxes method calculation. These property taxes are used to finance various
urban renewal projects and activities. Taxes received for fiscal year 2016-17 totaled $619,602 and is
budgeted to increase to $640,060 in fiscal year 2017-18. Woodburn's Urban Renewal budget is adopted
on an annual basis.
C RE.4A'RE.vE1,V4L A GENC Y OF THE CITY OF WOO DBUR'"tl', ORECTC INT
(A Cixrarlansaa,ent["nit of the C ia) of Ff"'odhinw,Oregon)
,ST4TEMENT OF RET F ,',f S„E aEAIDITU ES AND 0714.'IGE,S INFI«"D BALf4NCE-
COr^E'RN�ZN74L FT-WD
I EA.R ENDED JT-ArE 0,201:7
RDITATITS
Taxes and assessinennts. $ 619,602
Miscellaneous 35J29
Total,Rovenmes 654331,
EXPENDITURES
Pei sonnaal services 82.805
Materials and senl,^ices 76 99'2
C.ungn,ttal outlay 131 Mo
TaatolEypv&ituref 219007
ATET CIL4 YGE 12V FI'�D,BAL 4,YC:E 363,1344
FI-:, D iBAL.4,VCE,,Bte giaruaaaag ofg a rax 1.713344
FUND iBAL.-t NV E,,End of.ye ar ro 2 077.1111S
REC ONCIMTICD_v OF TIIE S°T4 TETIENT OFREDEA7 E.S`,EXPE:Y DITIAND CHANGES
ANGES
F172V D R.4L.-1 VCE'„S"OF sGC)IEKV,.11E.,a'T4L FENDS TO THE.S'T 4TEMENT OF AC-`TI UTIE.S.
Ne,r Change in,Fund Balance $ 363.844
Revenues inn tine Staa,ten i nett of Activities that do not provide cuui-rennt finnaunnciza.l resources
are not repon-ted as,revenues in the fuunnrl finnaan ciaal stanteinrennts_
Property times, ('3,645)
Change in,.,Ve; Position $ 360,199
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Woodburn Urban Renewal Agency
Financial Impact Report
Fiscal Year Ended June 30, 2017
Adopted Budget Summary of Resources and Requirements 2016-2017
7V
URBAN'RENETTAL AGENCYOF THE CITYOF fVOODBIR, 7,ORE +C7,
(A C011,11jonent Unit of the O�v qf Ff"oodburn,Oregon)
SCHEDLIE OF RETENUES,EXPEADITURES',AND CILiNGESINFITND BAL4.,N'CES-
BT-DG.M1,VD.A=4L- URBANRENTEFAL FEND
1EAR Ela DED AAE 0, 202 7
Budgeted.4marra as
Original Find Actual Variance
RETTATES
Taxes an assessinents $ 565000 615,989 619602 $ 3,613
miscellaneous 7,000 12.768 35,129 22,364
7'otal-RovemuzE 572,000 628,757 654731 25,974
EATENDITURES
Persolkil sei-ViCes 84,387 84,387 85774 (1,387)
Materl"Rhand services 84,000 84,000, 76,992 7,008
Capital Outlay 200,000 2,73,068 13 1,09 0 141,978
Contingency 16,838 16,838 - 16,8 38
Total EiPendirures 385225 458,293 2:93856 164,437
RETTATES OVER(T-ADER)
EXPEADHERES 186.775 170,464 360875 190,411
FIND B.4L4.,\'(E,Beghuping of.year 1700000 1,716,311 1,716313 2,
FI A'D BAL4�,NCE,,,End .f o year
(bn,adqetevy basis) 17886,775 1,886,775 2,077,188 $ 19,0,413
"'Budget is appTopflated by piograin,theref6re thisdoes not reflect an expeuditure 111 excess of appropriatiolls.
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