1. Urban Renewal Extension

2. Urban Renewal  Frozen property taxes within an area  Property owners still pay regular taxes, but dollars paid are re-invested in the area  Increased value eventually returned to tax rolls  Central Urban Renewal District (CURD) $14 million frozen base (1985) $194 million total AV (2010)

3. House Bill 3056  Overlaying tax districts get to vote when: An existing district Planning on an extension greater than 20%  75% of overlaying value must vote yes Schools typically represent just over 30% Veto power  New Urban Renewal not subject to a vote

4. Reason for 3056  Impacts on funding for overlaying tax districts  Not planning, policy, design, or specific projects

5. Oregon School Funding  Schools funded out of the State School Fund Grant State Income Tax collection Local Property Tax  Local Property Tax is held as an “offset” to the State Income Tax collection funds

6. TTSD Funding  TTSD State School Fund Grant $90 million (a per student formula) ○ $40 million Local Property Tax ○ $50 million State School Fund pot  What if TTSD Local Property Tax collection changed? $90 million (per student formula) ○ If $20 million Local Property Tax ○ Then $70 million State School Fund pot ○ If $45 million Local Property Tax ○ Then $45 million State School Find pot

7. State School Fund is Limited  State School Fund = Total $ / # of students = amount per student  Change in Local Property Tax collection impacts per student funding for the whole state  Metro Area contributes to rural areas.  TTSD would increase Local Property Tax collection if CURD ends the state keeps the difference

8. CURD Specifics  Statewide: School property taxes foregone through 2035 ○ Total $27,472,947 ○ Average Annual of $1,098,918  TTSD With State School fund offset (TTSD 2.17%) ○ Total $596,163 ○ Average Annual of $23,163

9. Other TTSD $ Considerations  Local Option outside of SSF  Local Option is collectable in CURD Additional collections for new development is about $12,500 per year ○ Will increase as AV increases  School Bonds are collectable in CURD ○ Will increase as AV increases ○ Reduces burden on homeowner  What impact does CURD have on values outside of the renewal district for TTSD? How do these values impact the State School Fund?

10. Other TTSD $ Considerations  Construction Excise Tax (CET) $1.00 per square foot residential $.50 per square foot commercial with a cap of $25,000 per building  CURD Estimates: 529 to 669 housing units 1.3 to 1.8 million sq. ft. commercial

11. Construction Excise Tax (CET)  One Comparable – Apartments/Commercial/Mixed Use: Apartments: 367 units with 413,834 sq. ft. Commercial: 22,900 sq. ft. Parking Structures: 209,000 sq. ft. Accessory Buildings: 106,000 sq. ft.  Generated CET Estimate = $639,734

12. CURD CET Estimates  CURD Estimates: 529 to 669 housing units 1.3 to 1.8 million sq. ft. commercial  CET estimate for housing = ○ $596,507 to $754,373  Commercial estimate @ $.25/sq. ft.= ○ $326,000 to $468,340

13. TTSD Net Estimate  ($ 23,847)/year($596,163) total  $12,500 local option… increase w time  Favorable impact on Bond collections  CET estimate: $922,507 to $1,222,713  Property value increase outside CURD  CURD returns to rolls at $800,000,000 plus  Student population growth