1989-31620-Minutes for Meeting November 22,1989 Recorded 11/28/1989
0 J 9 0 2 3 3
R9-31620
MINUTES
DESCHUTES COUNTY BOARD OF COMMISSIONERS.
November 22, 1989 Chair Prante called the meeting
members in attendance were Dick
Bristow Prante. Also present
Counsel, and Dave Peterson, Data
to order at 10:04 a`:im~
Maudlin, Tom Throop
were Rick Isham, County Legal
Processing Director.
1. CONSENT AGENDA
Consent agenda items before the Board were: #1, signature of
Declaration of Dedication from County to the public; #2,
signature of Order 89-097 accepting portion of Brookswood Blvd
into County maintained system; #3, signature of Resolution 89-
095 authorizing Treasurer to use facsimile signature; #4,
signature of Order 89-095 authorizing custodial officer to
make deposits in banks and savings and loan associations; #5,
signature of Conservation Easement from Donald Work; #6,
acceptance of Declaration of Dedication Deed from Eckstein,
Hughes, and Merritt; #7, chair signature of amendment to
contract with Oregon Economic Development Department extending
completion date and audit date for LaPine Sewer Project; #8,
signature of MJP-88-8 for Rahn, McClain and Neff; #9,
appointment of Alice Koehler to Deschutes County Planning
Commission.
THROOP: Move approval of the consent agenda items 1-9.
MAUDLIN: Second.
VOTE: PRANTE: YES
THROOP: YES
MAUDLIN: YES
2. REDMOND URBAN RENEWAL PLAN FOR SOUTH AIRPORT INDUSTRIAL AREA
Jane Schroeder, Redmond City Council President,
reported that the Redmond Planning Commission had met twice
to review the Redmond Urban Renewal Plan and found it in
compliance with the Comprehensive Plan and the goals and the
policies. She said the City Council had a public hearing the
previous evening but could not adopted the plan until the
legal description was finalized. The Deschutes County Board
of Commissioner needed to make its decision whether or not to
participate in the plan before the legal description could be
finalized. The City Council needed to have the Board's
decision before their next meeting on November 28, 1989.
Dave Jaqua, representing
submitted a copy of the
testimony. He said the City
PAGE 1 MINUTES: 11/22/89
the developer (Concourse 97),
Redmond Urban Renewal Plan as
of Redmond's public hearing was
U '0 2 3 4
3.
held open until November 28, 1989, if anyone wished to comment
further. He said that Oregon Statute required that the City
of Redmond receive a resolution from the Deschutes County
Board of Commissioners before adopting the plan. He said the
plan had been extensively discussed with the Board in two
prior meetings. The Redmond Urban Area Planning Commission
had unanimously recommended approval of the Redmond Urban
Renewal Plan to the Board of County Commissioners.
Commissioner Maudlin said he would have some concerns for the
record when the resolution came before the Board for
signature, since the previous meetings had not been recorded.
Commissioner Prante said she felt the property involved had
no value unless the services were brought to the area. The
renewal plan would bring value to the property and was good
long-term planning.
Commissioner Throop said he felt the plan would open the
southeastern industrial lands to development, but wished they
had been able to use the State Special Public Works Fund which
was more appropriate for the project.
THROOP: I'll move, in concept, the approval for Deschutes
County participation in the Redmond Urban Renewal
District for the purposes of delivering
infrastructure to the area in question, and have
that Resolution be subject to review by the Board
of Commissioners before we finalize it.
MAUDLIN: Second.
VOTE: PRANTE: YES
THROOP: YES
MAUDLIN: YES
RESOLUTION 89-090 ACCEPTING PETITION TO VACATE PORTION OF STAG
DRIVE, AND ORDER 89-092 SETTING PUBLIC HEARING
Before the Board was signature of Resolution 89-090 accepting
the petition to vacate portion of Stag Drive, acceptance of
the Engineer's Report on the vacation, and signature of
Order 89-092 setting a public hearing for January 3, 1990.
THROOP: Move signature and acceptance.
MAUDLIN: Second.
VOTE: PRANTE: YES
THROOP: YES
MAUDLIN: YES
PAGE 2 MINUTES: 11/22/89
0 2 3 5
4.
5.
6.
RESOLUTION 89-085 ACCEPTING VACATION OF PORTION OF MURPHY ROAD
AND ORDER 89-082 SETTING PUBLIC HEARING
Before the Board was signature of Resolution 89-090 accepting
the petition to vacate a portion of Murphy Road, acceptance
of the Engineer's Report on the vacation, and signature of
Order 89-082 setting a public hearing for January 3, 1990.
MAUDLIN: I move signature of Resolution 89-085 and Order 89-
082 setting a public hearing for January 3, 1990.
PRANTE: Second.
VOTE: PRANTE: YES
THROOP: Excused
MAUDLIN: YES
RESOLUTION 89-096 ACCEPTING VACATION ON PORTION OF PARCEL #4
AND ORDER 89-096 SETTING A PUBLIC HEARING
Before the Board was signature of Resolution 89-096 accepting
a petition to vacate a portion of sixty foot right-of-way
dedicated as Parcel #4, acceptance of the Engineer's Report,
and signature of Order 89-096 setting a public hearing for
January 3, 1990.
MAUDLIN: Move signature of Resolution #89-096 and signature
of Order #89-096 setting a public hearing.
PRANTE: Second.
VOTE: PRANTE: YES
THROOP: Excused
MAUDLIN: YES
CREDIT AGREEMENTS WITH U.S. NATIONAL BANK FOR COMPUTER UPGRADE
AND DIGITIZED SIGNATURE SYSTEM
Before the Board was signature of Credit Agreements with the
U.S. National Bank for $78,000. $28,000 of these borrowed
funds would be combined with $16,000 in budgeted funds to
purchase a signature verification system for the Clerk's
office. $50,000 of these borrowed funds would be combined
with $22,000 in budgeted funds to purchase an upgrade for the
County's computer system.
MAUDLIN: I move signature of lease with U.S. Bank for
computer upgrade and Clerk's digitized signature
system as outlined in memo from Dave Peterson.
PRANTE: Second.
PAGE 3 MINUTES: 11/22/89
f., Jag_ - 0236
VOTE: PRANTE: YES
THROOP: Excused
MAUDLIN: YES
7. WEEKLY WARRANT VOUCHERS
No additional bills were submitted for consideration by the
Board.
DESCHUTES COUNTY BOARD OF COMMISSIONERS
~ c~~G G%d`CG. ll-s~L L~~
Lois Bri tow Prante, Chair
l
ToL Throo P, Commissioner
kcdlin, Commissioner
BOCC:alb
PAGE 4 MINUTES: 11/22/89
i.:JJ9 0237
First Draft
REPORT ON THE
SOUTH AIRPORT INDUSTRIAL AREA
REDMOND URBAN RENEWAL PLAN
Redmond, Oregon
November 12, 1989
Spencer & Kupper
Portland, Oregon
U9, 0238
REPORT ON THE REDMOND URBAN RENEWAL PLAN
A - DESCRIPTION OF THE PHYSICAL, SOCIAL, AND ECONOMIC
CONDITIONS IN THE URBAN RENEWAL AREA
1. Physical Conditions
a. Land Area.
The Renewal Area encompasses approximately 510 acres of land area. Approx-
imately 332 acres lie within incorporated portions of the City of Redmond, while
the remaining 178 acres is in unincorporated areas of Deschutes County. ORS
457.420 provides that the total land area of a proposed urban renewal district, when
added to the land area of existing renewal areas may not exceed 25% of the City's
land area. The City's current land area is approximately 9600 acres. The Renewal
Area comprises only 5.3% of the City's land area. The total assessed valuation of
land within the City of Redmond is $231,980. That value represents slightly more
than one-tenth of one percent of Redmond's total assessed valuation of $187 million.
Project area assessed value within Deschutes County is $225,285.
b. lbpography and Geology.
The Renewal Area lies on a relatively flat rock bench with occasional outcroppings
of basalt rock. The predominant feature is an ancient drainage way running in an
east-west direction near the intersection of Yew Road and Highway 97. The propos-
ed Yew Road/Highway 97 interchange is located near this depression so that Yew
Road can be realigned and extended under Highway 97 to the east side of the
highway. This location is also appropriate for utility and public facility crossings of
Highway 97 so that excavation through the basalt can be minimized.
c. Existing Land Use and Development.
Within the 510 acre Renewal Area a detailed parcel by parcel land use and owner-
ship inventory was undertaken in November, 1989, and is summarized in Table 1 on
the following page.
1 Report on Plan
iJ9 0 3y
TABLE 1
Existing Land Use
Land Use
Acres,
Acres,
Acres,
% of
City
County
Total
Total
Vacant
Private
29.3
116.5
145.8
28
City
260.0
9.8
269.8
53
County
0
39.8
39.8
8
State
0
9.9
9.9
2
Sub-Total
289.3
176.0
465.3
91
Public/Semi-Public
Streets
23.2
2.0
25.2
5
Interchange/Yew Ave.
13.1
0
13.1
3
B.N. Railroad
4.1
0
4.1
1
C.O.I.D.
2.3
0
2.3
0
Easements
0.4
0
0.4
0
Sub-Total
43.1
2.0
45.1
9
TOTALS
332.4
178.0
510.4
9
Source: Spencer & Kupper, 1989
Over 90 percent of the Renewal Area is vacant, undeveloped land. Table 1 indi-
cates the existing ownerships of the vacant land, and the percentage of the total area
owned by private interests, the City of Redmond, Deschutes County and the State
of Oregon. The remaining land area is used for public and semi-public purposes,
including public street and highway rights-of-way, the planned Yew Road/Hwy. 97
interchange, Burlington Northern Railroad (BNRR) right-of-way, an irrigation canal
owned by the Central Oregon Irrigation District (C.O.I.D.), and existing utility
easements.
Table 1 also lists existing land use and ownership for portions of the Renewal Area
within incorporated City of Redmond, and unincorporated Deschutes County.
Approximately 65 percent of the Area lies within the City. It is anticipated that as
public facilities are extended to vacant undeveloped lands in the County and develop
occurs, that these lands will be incorporated into the City.
2 Report on Plan
d. Building Occupancy and Conditions.
A survey of building use and occupancy was conducted in November, 1989. The
survey identified 2 permanent buildings in the Area. Both buildings are agricultural
structures in poor condition located in the unincorporated area. One building is
vacant, and portions of the second building are used on a temporary basis for a
wood palet assembley operation.
e. Existing Comprehensive Plan and Zoning Classifications.
The Renewal Area includes portions of the City of Redmond's planned commercial
and light and heavy industrial land use classifications and zoning districts. As
described in Section E of the Plan, the intent of the Redmond Urban Area Com-
prehensive Plan and Zoning Ordinance is to encourage development of light and
heavy industrial, and highway-oriented commercial activities.
The Comprehensive Plan recognizes the need to support and encourage land uses
which create employment and shopping opportunities for the residents of Redmond
and the surrounding area, and to provide for a balance of residential and non-
residential land uses so that residential property owners will not be required to
shoulder an inequitable tax burden.
f. T3 affic and Circulation.
The project area lacks an internal road circulation system. The highway-related
commercial development proposed for the renewal project area is expected to
generate heavy truck and Recreational vehicle traffic. The Transportation Element
of Redmond's Comprehensive Plan states that the City shall require frontage roads
to decrease traffic impacts on collectors and arterials. Project activities call for
construction of a frontage road to service the Concourse 97 development.
The project area and the Redmond Municipal Airport will be serviced by a new
interchange proposed at Yew Avenue and Highway 97. The interchange will be
constructed with ODOT and local matching funds. It is expected to enhance the
development potential of light industrial land near the airport, and improve access
from the growing residential areas of southwest Redmond to the industrial area.
3 Report on Plan
• ~ ~ ~ 41
g. Water Distribution and Storage
There currently is no water service to the project area. Water service must be
provided in order for development in the project area to occur. Service to the
district will require extension of an existing water line into the project area, and
installation of fire hydrants. The water storage system will be designed to meet
generally accepted standards for fire flow water capacity for the type of light indus-
trial development expected within the project area.
Project activities call for installation of a water line of sufficient capacity to provide
adequate fire flow water capacity to the western part of the project area. There will
be dramatic pressure losses as this line is extended to service the eastern part of the
project area, and water flows will fall well below minimum fire flow requirements.
In order to overcome this pressure loss, and provide adequate fire flows to the
eastern part of the project area, a reservoir with auxiliary pumping must be
provided.
h. Storm and Sanitary Sewer
The project area presently has no sanitary sewer service. Development of the
highway commercial and light industrial uses permitted within the project area is
expected to require waste water flow capacity of approximately 245,000 gallons per
day. In order for development to occur in the project area, it will be necessary to
provide a six inch diameter line and pumping station to meet sanitary sewer
requirements.
2. Social and Economic Conditions
There are no residential properties, and no permanent residents within the renewal
project area, thus there is no applicable demographic data on social conditions.
Economic conditions in the area show depreciated values, and a lack of investment
in the project area. The area produces extremely low tax receipts, which are inadeq-
uate to treat conditions in the area, and provide public services.
The urban renewal project area lies within the South Redmond Industrial Area. The
_ South Redmond Industrial Area contains much of Redmond's available land for light
industrial development. The Industrial Area, however, lacks basic services, and as
a result, much of the land in the area is undeveloped or under-utilized. In addition,
4 Report on Plan
4 - 0 2 4 2
much of the light industrial land is in governmental ownership. As a result, the land
is exempt from property taxation, although privately owned improvements on the
land are subject to taxation. The improper utilization of this important land resource
is reflected in assessment and valuation data for the project area.
The City of Redmond contains approximately 9600 acres. The County Assessor's
"1988-89 Summary of Assessment and Tax Roll" shows total assessed valuation
within the City of $187,002,076. The average assessed valuation per acre for the City
of Redmond therefore is about $19,000. Because land in the project area is almost
entirely undeveloped, and largely exempt from taxation, the average valuation per
acre within the project area is only about $900, barely 5% of the City average.
The total tax raised in the area by the City of Redmond and Deschutes County at
current rates is only about $4600 annually. The total tax raised by all taxing juris-
dictions is less than $15,000 annually. The project area clearly-is not being put to
productive use, and lacks the ability to pay for even the most basic services.
Another measure of the productivity of an area is its ratio of improvements to land
values. A common community-wide ratio is about 4:1, that is, improvement values
four times the land values. Data for the project area is:
Improvements $15,535
Land $441,730
Improvements/Land Ratio 1 to 28.43
The improvement to land ratio for the project area is completely unbalanced. It
reflects the fact that the project area consists almost entirely of vacant land; land
which will not be developed unless basic utility services are provided.
Finally, a depreciation of values in the area is reflected in recent assessment history
of privately owned land in the project area. Most land values in the project area
were trended downward five percent for the 1988-1989 tax year.
The under-utilization of land, and lack of new investment in the project area renders
the area being incapable of producing tax receipts to pay for the cost of services.
Unless reversed, this situation may have a negative impact on City service levels.
5 Report on Plan
0243
3. Expected Fiscal, Services, and Population Impacts of Plan
It is expected that the renewal project will have beneficial long-term fiscal and
service impacts for the City of Redmond. The City currently collects only about
$2000 in taxes from project area land within City limits. The project area presently
contributes almost nothing to the City's ability to provide services, within and outside
the project area, and is a drain on City resources. Over the life of the project,
about $9.7 million in taxable values will be created on land within the City of
Redmond, making the area an important contributor to Redmond's revenues and
the City's ability to provide services.
No population impact is expected from the renewal project. There are no new
residential uses proposed within the project area. The anticipated uses in the area
are light industrial and highway-related commercial" uses. A 24 acre higliway-related
commercial center is planned in the area, and development of additional vacant and
underutilized land is expected to add up to an additional 100,000 square feet of light
industrial uses.
Employment in commercial centers generally is estimated at approximately 2 em-
ployees per thousand square feet. Light industrial uses are estimated to generate
approximately 2.5 employees per thousand square feet. The total new employment
in the area therefore should be in the 350-500 person range. Most of this employ-
ment growth is expected to come in several stages over the life of the project. It is
not anticipated that the development and employment generated within the project
area will impact existing City or School District services, or have a significant impact
upon population and housing in Redmond.
The project will require water and sanitary sewer service, and street improvements.
The project will not require the City to add new water or sewage treatment capacity.
Impacts of the project upon street, sewer, and water systems are addressed by the
activities to be undertaken in this plan.
It is anticipated that the plan will impact the tax rates for those jurisdictions levying
taxes within the area. New assessed values added within the area will not be added
to the base of assessed values for taxing jurisdictions until the project is terminated.
Several of the jurisdictions levying taxes within the area have large bases of assessed
6 Report on Plan
t~J 0244
values, and the project will have little or no impact upon their tax rates. The most
significant tax rate changes will be upon the City of Redmond and School District
#2. These impacts are detailed in Section D. of this Report on the Plan.
B - REASONS FOR SELECTION
OF THE URBAN RENEWAL PLAN AREA
The Urban Renewal Plan Area was selected based on Comprehensive Plan policies,
Capital Improvement Plan priorities, and on the existence of blighting conditions
within the area as evidenced by the lack of proper utilization of land planned for
commercial and industrial purposes, deficiencies of water storage and distribution
facilities, deficiencies of sanitary sewer facilities, deficiencies of fire protection
facilities, deficiencies of transportation facilities, poor building conditions, the prev-
alence of low values and lack of investment in the project area, and 'reduced tax
receipts resulting therefrom.
Conditions exist within the Renewal Area which meet the definitions of blight in
ORS 457.010. These conditions are described in the previous section, and are
summarized below:
1. The existing use of the property within the Area represents an underutilization
of planned commercial/industrial property which has excellent access from a
major state highway and local arterials and collectors, and close proximity to the
regional airport.
2. Underutilization of land, and lack of development severely impair the project
area's ability to pay taxes. Average values per acre in the area are well below
the overall City average, and the ratio of improvement values to land values is
far below that which might be expected in an area planned for commercial and
industrial development.
3. Sanitary sewer collection mains to and within the Renewal Area are currently
inadequate. This condition must be improved in order to adequately accommo-
date new development.
4. Water storage capacity and water distribution lines to and within the Renewal
Area are currently inadequate. This condition must be improved in order to
adequately accommodate new development.
7 Report on Plan
5. There is inadequate fire protection for the Renewal Area. This deficiency is
primarily due to inadequate fire flow and water capacity. This condition must
be improved in order to realize the development potential of the Area.
6. Access to the Renewal Area from the state highway is poor, and there is a lack
of arterial and collector streets serving the Area. A highway interchange and
arterial is planned within the Renewal Area, providing improved access and
circulation. The planned arterial will also provide access to the eastern portion
of the Area which is currently separated from the state highway by the Bur-
lington Northern Railroad.
7. Direct access from individual developments to the state highway will reduce its
capacity, and contribute to unsafe traffic conditions. These problem conditions
can be avoided by providing frontage roads serving many individual develop-
ments, and by connecting the frontage roads to the state highway at signalized
intersections.
C - THE RELATIONSHIP BETWEEN EACH PROTECT ACTIVITY TO BE UNDERTAKEN
UNDER THE PLAN AND THE EXISTING CONDITIONS
All project activities described in Section F of the Plan including sanitary sewer
improvements, water storage and distribution improvements, street and access
improvements and administrative and planning activities along with other programs
and activities set forth in the Plan are intended to correct the deficiencies described
in Section A of this Report and summarized in the previous Section B.
Sanitary sewer improvements will address existing facility deficiencies, and will
support new development within the Area.
Water storage and distribution improvements will address existing facility deficien-
cies, and will support new development within the Area. Water storage facilities will
also provide adequate fire flows, providing needed fire protection capacity within the
Area.
Traffic and circulation improvements will provide traffic improvements which will be
required in order to support new development within the Area.
8 Report on Plan
0j9 , 0246
Administration and planning activities will assure the effective administration of the
Plan, and will provide for the planning and design of the various activities contained
in the Plan.
D - FINANCIAL ANALYSIS OF PLAN
1. Estimated Project Cost and Revenue Sources
Table 2 of this Report shows the estimated total costs of activities in the project
area. From its start in 1990 until its termination in 2005, total costs for the project,
including interest on bonded debt, are estimated at $2,871,509. Since all project
construction activities are scheduled to begin in 1990, current (November, 1989) cost
estimates are applied to construction activities.
The principal method of funding the project share of costs will be through use of
tax increment financing as authorized by ORS 457. It is expected that tax increment
funds will be used to finance a $1.5 million bond issue in 1991, and to pay for other
short-term debt incurred through construction and other contracts.
Other sources of financing for project activities may include use of temporary
commercial financing based on expected tax increment revenues, Systems Develop-
ment charges, and Oregon Department of Transportation funds.
The City of Redmond has applied for Federal Urban Development Action Grant
(UDAG) funds, and a grant from the U.S. Economic Development Administration.
These funds may be utilized for additional improvements within the project area.
It is anticipated that the Renewal Agency will apply for, and make use of funding
from other federal, state, local, or private sources as such funds become available.
2. Anticipated Start and Completion Dates of Activities
Table 3 of this Report shows the expected start and completion date for each
project activity. Project activities will begin in 1990, and it is estimated that all
9 Report on Plan
U J9 - 0247
activities proposed in this plan, including principal and interest payments on bonded
debt, will be completed by 2005. Retirement of outstanding bonded debt may occur
prior to this date, however, and the tax increment provisions of this plan ended.
This schedule is based upon assumptions regarding the availability of funds to carry
out project activities. These start and completion dates may be effected by changes
in market conditions, the availability of funds, and priorities for carrying out project
activities.
10 Report on Plan
UJ9 - 0248
TABLE 2
Total Cost of Project Activities
Total Cost Project Share
WATER SERVICE AND STORAGE
New Water Line & Fire Hydrants
321,000
321,000
Water Reservoir & Pump Station
260,000
260,000
SANITARY SEWER SERVICE
Construct Sanitary Sewer Line
416,000
416,000
TRAFFIC IMPROVEMENTS
Construct Frontage Road
351,000
351,000
PROGRAM ADMINISTRATION
Administration
250,000
250,000
Reimburse Renewal Plan Costs
15,000
15,000
DEBT SERVICE
Interest, 1991 Bond
1,216,800
1,216,800
Costs of Bond Issue
48,509
48,509
TOTAL, ALL PROJECT ACTIVITIES
2,871,509
2,871,509
11 Report on Plan
OJ9 02 19
TABLE 3
Estimated Start and Completion Date of Project Activities
Estimated
Estimated
Start
Completion
WATER SERVICE AND STORAGE
New Water Line & Fire Hydrants
1990
1990
Water Reservoir & Pump Station
1990
1990
SANITARY SEWER SERVICE
Construct Sanitary Sewer Line
1990
1990
TRAFFIC IMPROVEMENTS
Construct Frontage Road
1990
1990
PROGRAM ADMINISTRATION
Administration
1990
2005
Reimburse Renewal Plan Costs
1992
1992
DEBT SERVICE
Interest, 1991 Bond
1991
2005
12 Report on Plan
09, 9 0 2 5 0
3. lbtal Expenditure Estimates and Anticipated Year of Debt Retirement
Table 4 of this Report shows the anticipated tax increment receipts for each year
of the project, and the disposition of those receipts. It is estimated that the project
will produce approximately $3,859,000 in tax increment receipts between 1990 and
the anticipated termination of tax increment financing in 2005.
It is anticipated that available tax increment revenues, and the balance of the Bond
Debt Service Reserve fund will be sufficient to retire outstanding debt on a 1991.
bond issue in 2001. The tax increment provisions of this plan may be ended at that
time.
After all project debt is retired, and the project terminated, any monies remaining
unexpended shall be turned over to the county treasurer and prorated back to the
taxing bodies, as provided in ORS 457.450 (b)(3).
13 Report on Plan
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9 053
4. Fiscal Impact of Tax Increment Financing
Portions of the project area are within Tax Codes 2-1 and 2-4. The present assessed
valuation of all land and improvements within the area is approximately $457,265.
These values would be "frozen" upon certification by the County Assessor, and all
affected taxing jurisdictions would continue to levy against that value as they had
prior to approval of the plan. New values added in the project area above that
frozen base value will not be included within the base of assessed values for other
taxing jurisdictions until the renewal project is terminated. The plan therefore is
likely to have an impact on the tax rates of jurisdictions levying taxes in the Tax
Codes in the area.
❖ Note: It is important to understand that the following analysis and calculation
of tax impacts assumes that all new development and assessed values in the
project would occur without renewal activities, and without any useof public
funds to make improvements in the area. It has been noted earlier in this
Report that the project area can not be developed until utilities and services
are provided, that the area does not generate sufficient tax revenue to pay
for these services, and that land values in the area are in fact declining. In
this case, there is little chance that the assessed values will be created with-
out renewal project activities, or a comparable investment of public funds.
It is estimated that a total of approximately $11.2 million in new assessed values
will be added in the area during the period 1990-2005. For taxing jurisdictions with
large bases of total assessed values, addition of the new values expected in the
project area therefore would produce little, if any change in their tax rates. Taxing
jurisdictions with a lower base of total assessed values, namely, the City of Red-
mond, School District 2, will be more heavily impacted by the plan.
Data on the following page shows the total assessed valuation for the taxing juris-
dictions, as of June 30, 1989, and the percentage of that total valuation represented
by the $11.2 anticipated project values.
In the following data, it is assumed that $9.7 million of the new values will occur in
Tax Code 2-1, and $1.5 million in Tax Code 2-4. The City of Redmond does not
levy taxes in Tax Code 2-4, and Fire District #1 does not levy taxes in Code 2-1.
All other jurisdictions levy taxes in both Tax Codes.
16 Report on Plan ,
.):,c " 0254
Jurisdiction
Deschutes County
ESD
Central Or. Comm. College
City of Redmond
Central Or. Hospital
Central Or. Park
School District 2J
Central Or. PUD
Fire Dist.#1 (Code 2-4 only)
Total A.V. ($000)
% Represented
by Project Values
2,470,839
0.4
2,470,839
0.4
2,470,839
0.4
187,002
5.1
367,044
3.0
367,044
3.0
466,635
2.4
1,668,950
0.7
164,241
1.0
Tables 5 and 6, on the following page of this report, shows the estimated impact of
the renewal project on the rates for taxing jurisdictions affected by the project. For
purposes of calculating these tables, the current tax rate is held steady over the life
of the renewal project.
Over the life of the project, the anticipated impact of the project on tax rates in Tax
Code 2-1 ranges from 55 cents to 70 cents per thousand dollars of valuation. The
average annual tax rate impact of the renewal project is 59 cents per thousand
dollars of valuation. The average annual tax impact on a property valued at $60,000
thus is expected to be about $35.40.
It is expected that approximately $1.5 million of new project values will be added
in Tax Code 2-4. The tax impact on this Tax Code therefore will be less than in
Code 2-1. Over the life of the project, the anticipated impact of the project on tax
rates in Tax Code 2-4 ranges from 27 cents to 39 cents per thousand dollars of
valuation. The tax rate for Fire District #1, which levies in Code 2-4, but not in
Code 2-1, is expected to be impacted by an average of one cent annually, with a
maximum impact of 3 cents, The average annual tax rate impact of the renewal
project in Code 2-4 is 30 cents per thousand dollars of valuation. The average
annual tax impact on a property valued at $60,000 is expected to be about $18.00.
It is estimated that all project indebtedness will be paid off by 2005. At that time,
the tax increment financing provisions of the plan can be terminated, and $11.2
million in project valuation returned to the tax rolls. It is expected that tax rates
then will decrease by 70 cents per thousand dollars of valuation.
17 Report on Plan
TABLE 5
Estimated Tax Impacts in Tax Code 2-1
Year
Cumulative
City of
School
Other
'Ibtal
AV (Will.)
Redmond
Dist. 2J
Juris.
Impact
1990
0
0
0
0
0
1991
7.00
.29
.21
.06
.56
1992
7.07
.28
.21
.06
.55
1993
7.14
.28
.21
.06
.55
1994
7.71
.30
.22
.06
.58
1995
7.79
.30
.22
.06
.58
1996
8.37
.32
.23
.06
.61
1997
8.45
.32
.23
.06
.61
1998
9.03
.32
.25
.07
.64
1999
9.12
.32
.25
.07
.64
2000
9.72
.34
.26
.07
.67
2001
9.81
.34
.26
.07
.67
2002
10.41
.34
.27
.07
.69
2003
10.52
.34
.27
.07
.69
2004
11.12
.34
.29
.08
.71
2005
11.23
.34
.29
.08
.71
2006 (a)
11.34
-.34
-.29
-.08
-.71
TABLE 6
Estimated Tax Imnacts in Tax Code 2-4
Year
Cumulative
School
Fire
Other
Total
AV (Will.)
Dist. 2J
Dist. #1
Juris.
Impact
1990
0
0
0
0
0
1991
7.00
.21
0
.06
.27
1992
7.07
.21
0
.06
.27
1993
7.14
.21
0
.06
.27
1994
7.71
.22
0
.06
.28
1995
7.79
.22
0
.06
.28
1996
8.37
.23
0
.06
.30
1997
8.45
.23
0
.06
.30
1998
9.03
.25
.01
.07
.33
1999
9.12
.25
.01
.07
.33
2000
9.72
.26
.01
.07
.34
2001
9.81
.26
.01
.07
.34
2002
10.41
.27
.03
.07
.38
2003
10.52
.27
.03
.07
.38
2004
11.12
.29
.03
.08
.39
2005
11.23
.29
.03
.08
.39
2006 (a)
11.34
-.29
-.03
-.08
-.39
a) Tax Increment financing is ended
* Fire District #1 is impacted only by $1.6 million assessed value in Code 2-4.
* lbtals reflect rounding of numbers.
18
Report on Plan
5. Financial Analysis of the Plan
It is estimated that the project will require tax increment revenues during the period
1990 to 2005. Substantial tax increment revenues are anticipated early in the
project, through construction of a highway-related commercial development. Those
tax increment proceeds will be adequate to finance a bond issue of sufficient size to
fund required project improvements. Tax increment revenues throughout the life
of the project will be more than sufficient to service the debt on this bond, with a
debt service coverage ratio exceeding 1.25 to 1 throughout the life of the project.
Tax increment revenues not required for principal and interest payments on indebt-
edness will be utilized to finance project activities, or for early retirement of bonded
debt. It is further estimated that tax increment revenues accumulated in the renewal
agency's special fund, and the debt service reserve fund should be sufficient to make
an early retirement of indebtedness on a fifteen year, 1991 bond.
Annual projections of project values, revenues, and costs for the project show
project revenues will be sufficient to fund project activities, that the activities called
for in the plan can be started and completed in a timely manner, and that the plan
is financially feasible.
E. RELOCATION
1. Properties Requiring Relocation
No relocation will result from renewal project activities.
2. Relocation Methods
If future amendments to this renewal plan call for the acquisition and redevelopment
of property which may result in the displacement of residents and businesses, the
Renewal Agency will establish a Relocation Policy which will call for assistance to
those residents and businesses displaced. Such assistance will include providing
information regarding suitable locations, payment of moving expenses, housing
referral, and other relocation assistance and payments as deemed necessary.
19
Report on Plan
025 7
All relocation activities will be undertaken and payments made in accordance with
the requirements of ORS 281.045 - 281.105 and any other applicable laws or reg-
ulations. Relocation payments will be made as provided in ORS 281.060.
3. Housing Cost Enumeration
There are no housing units within the renewal project area. No new housing units
are proposed within the renewal project area.
20
Report on Plan