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1. Why did Council approve an ordinance? Why did the Plan need to be amended?

To use urban renewal funds for the four downtown improvement projects, the City Council needed to adopt an ordinance substantially amending the Downtown Urban Renewal Plan to increase the maximum spending limit indebtedness and expand the boundary. The spending limit set in 2010 of $46.6 million has nearly been spent, with the bulk spent on the Downtown Library, LCC’s Downtown Campus on 10th Avenue, and downtown public safety (using urban renewal funds to pay off the debt on the Broadway Place garages, thereby freeing up dollars for safety). Downtown Improvements Projects

2. What is a spending limit? What have downtown urban renewal funds been spent on? What is the new spending limit?

The spending limit is a cumulative total of spending of tax increment dollars since 1998, which City Council has focused almost exclusively on public improvements in downtown: the Hult Center, Eugene Public Library, Lane Community College Downtown Campus, and the LTD downtown station. State law requires the City Council to establish a spending limit (the technical term is “maximum indebtedness”); it’s a spending cap for all property tax expenditures over a period of time. Since we’ve almost reached the spending limit of $46.6M, City Council approved an increase in order to make specific downtown improvement projects eligible for urban renewal. City Council is considering four downtown improvement projects (high-speed fiber, famers’ market enhancements, redevelopment of LCC’s former downtown center on Willamette, and Park Blocks/open space improvements). Downtown improvement projects

3. If the spending limit approved by Council on June 13 is $19.4 million, why did the public notice list $48 million?

When the notice was mailed on April 18 to provide notice on the May 23 public hearing, Council hadn’t yet made a final decision on how much urban renewal funds to make available for the projects. At that time, the low-end estimate City Council reviewed in March was $17 million; the high end estimate was $48 million. That’s why the $48 million appears in the notice. Council ultimately decided on a spending limit increase of $19.4 million. The plan amendment includes caps on spending for each project and a community engagement and approval process before any funding decisions will be made. More detail on the projects and the cost estimates is on our website: http://www.eugene-or.gov/791/Downtown and in the Report on the 2016 Amendment, Chapter 6 starting on page 13. Report on the 2016 Amendment

4. How does the Downtown Urban Renewal District impact local schools ?

Amending the downtown urban renewal plan won’t take money away from 4J; in fact, the opposite is true. The estimated net impact to School District 4J is that they would receive about $340,000 less per year if the Downtown District did not use tax increment financing. This estimate is from the Tax Assessor and takes into account the effect from Measure 5 compression and the State school funding formula. Please see Chapter 9 of the Report on the 2016 Amendment (starting on page 20), for more information on what would happen if the Downtown District stopped receiving a portion of property tax revenue. Report on 2016 Amendment

5. What schools are included? Does it include rural schools?

The schools are School District 4J, Lane ESD, and Lane Community College. (This is because those are the school districts that overlap with the Downtown Urban Renewal District boundary.) Other schools systems within Lane County are not included. As a result of the Downtown District, 4J and Lane ESD get more State funds and fewer local funds.

6. Why did the public hearing notice say that it won’t impose a new tax AND that taxes may go up?

You’re right to be confused by the public hearing notice saying your taxes won’t go up and then later saying they may go up. Urban renewal is bound by State law, which requires that the notice be mailed and that it contain the “taxes may go up” sentence [ORS 457.120(3)(b)]. For some urban renewal districts in the State, amending an urban renewal plan may increase taxes. As it happens for the proposed Downtown Urban Renewal District amendment, taxes won’t go up as a result of the amendment. This is confirmed by the Lane County Tax Assessor. Please see Chapter 9 of the Report on the 2016 Amendment (which starts on page 19), for more information on the impact to taxes Report on the 2016 Amendment

7. Why were no dollar amounts are listed for the four proposed UR downtown projects in the public hearing notice?

When the public hearing notice was mailed on April 18 to provide notice on the May 23 public hearing, Council hadn’t yet made a final decision on which projects to include in the plan amendment or, within each project, how much urban renewal to make available. At that time, the high end estimate was $48 million. The plan amendment includes caps on spending for each project and a community engagement and approval process before any funding decisions will be made. More detail on the projects and the cost estimates is on our website: http://www.eugene-or.gov/791/Downtown and in the Report on the 2016 Amendment, Chapter 6 starting on page 13. Report link

8. Does the redistribution of tax revenue impact rural property taxes---rates or amounts?

It does not impact rural property tax rates or amounts. (It also won’t change the tax bill within the city.)

9. The Public Hearing Notice indicates that the high-speed fiber network will benefit the 4J and Bethel school districts. How will this occur if their facilities are not in the Downtown District?

The fiber project includes a wholesale internet connection from an Internet Exchange in downtown Eugene to larger Internet Exchanges in Portland, Seattle, or San Jose, CA. The cost of Internet in those facilities is significantly lower than what is available in the southern Willamette Valley today. By connecting those large facilities to downtown Eugene, lower cost Internet access will be available there, and by extension to all of the entities that are already directly connected to it. Both 4J and Bethel school districts currently connect through the downtown Internet Exchange.

10. What downtown sites, other than the Park Blocks along 8th Avenue, are being considered for the Farmer’s Market and are those areas within the Downtown Urban Renewal District?

The City is collaborating with the Farmers’ Market as well as Lane County to figure out how to address the needs of the Market. Currently, the space that they are using is too limited, lacks needed infrastructure, and is not as accessible as it needs to be. Conversations with the County have included the possibility of the City acquiring the Butterfly Parking Lot, which could be removed to allow additional space for the Market. Other locations may also be considered, including the possibility of the space next to the new City Hall. The ultimate space needs to work for the Market, and the City and County’s needs are also important. Bottom line, this is a collaborative process to develop a solution that works for all and allows the Farmers’ Market to continue to provide high quality local produce, improves a key downtown attraction, and supports our regional economy.

11. What entities support the amendment?

Travel Lane County, Lane Transit District (LTD), Eugene School District 4J, Lane Community College (LCC), Lane County, Downtown Merchants Association, Downtown Eugene Incorporated (DEI), and the Eugene Chamber of Commerce.