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2020-358-Minutes for Meeting September 23,2020 Recorded 10/19/2020ES CMG o ?� BOARD OF COMMISSIONERS 1300 NW Wall Street, Bend, Oregon (541 ) 388-6570 Recorded in Deschutes County C J2020_358 Nancy Blankenship, County Clerk Commissioners' Journal 10/19/2020 3:06:43 PM *J� �S <��� 2020-358 10:00 AM Wednesday, September 23, 2020 BARNES & SAWYER ROOMS VIRTUAL MEETING PLATFORM Present were Commissioners Patti Adair, Anthony DeBone, and Phil Henderson. Also present were Tom Anderson, County Administrator; David Doyle, County Counsel (via Zoom conference call); and Sharon Keith, Board Executive Assistant (via Zoom conference call), Attendance was limited due to Governor's Virus Orders. This meeting was audio and video recorded and can be accessed at the Deschutes County Meeting Portal website http://deschutescountyor.igm2.com/Citizens/Default.aspx CALL TO ORDER: Chair Adair called the meeting to order at 10:00 a.m. PLEDGE OF ALLEGIANCE: CITIZEN INPUT: Commissioner Adair announced she had contacted the new owners of the Gilchrist Mill, a company based in Wyoming and that she welcomed them to Oregon. Commissioner DeBone acknowledged the Mill's capacity and the products that will be supplied to the businesses of Central Oregon. Commissioner Henderson noted the importance of having a Mill in this region. Commissioner DeBone noted the jobs that will likely return to the area. Commissioner Adair reported on the Red Cross volunteers and the work they are doing to provide assistance to the wildfire evacuees. BOCC MEETING SEPTEMBER 23, 2020 PAGE 1 OF 7 CONSENT AGENDA: Before the Board was consideration of approval of the Consent Agenda. DEBONE: HENDERSON: VOTE: DEBONE: Move approval of Consent Agenda, minus Item 2 and 4 Second HENDERSON: ADAI R: Yes Yes Chair votes yes. Motion Carried 1. Consideration of Board Signature of Document No. 2020-617, Oregon Health Authority Amendment 11 to the 2019-2021 IGA for Financing of Behavioral Health Services 2. Consideration of Board Signature of Document No. 2020-645, Termination of Improvement Agreement and Hold Harmless Agreement for the Infrastructure Improvement Agreement Recorded at 2016-21768 Tetherow Tract Y 3. Consideration of Board Signature of Resolution No. 2020-056, to Approve an Increase in FTEs Within the FY 2020-21 Deschutes County Budget 4. Consideration of Board Signature of Resolution No. 2020-057, to Increase Appropriations in the FY 2020-21 Budget 5. Consideration of Board Signature to Reappoint Cindy Van Patten to the Four Rivers Vector Control District Board 6. Consideration of Board Signature to Reappoint Wallis Hathaway to the Deschutes County Dog Control Board of Supervisors ACTION ITEMS: ConsentAgenda Item 2 as pulled for discussion: Consideration of Board Signature of Document No. 2020-64S, Termination of Improvement Agreement and Hold Harmless Agreement for the Infrastructure Improvement Agreement Recorded at 2016-21768 Tetherow Tract Y Planning Manager Peter Gutowsky and Planner Will Groves (via Zoom conference call). Mr. Groves explained the workings of the agreement. During construction BOCC MEETING SEPTEMBER 23, 2020 PAGE 2 OF 7 some damage to curbs and sidewalks was noted. However due to ongoing construction, Road does not feel it is wise to make the repairs at this time. The developer would like to have the Improvement Bond released, subject to an agreement that Owners and HOA will hold the County harmless if the repairs are not made by the developer. County Counsel Dave Doyle (via Zoom conference call) clarified the hold harmless provision and how that would operate to protect the County. Commissioner DeBone has concerns and supports holding off on taking action at this time. The Board expressed support. Commissioner Adair asked Mr. Groves to gather additional information and to bring this item back next week. Consent Agenda Item 4 as pulled for discussion: Consideration of Board Signature of Resolution No. 2020-057, to Increase Appropriations in the FY 2020-21 Budget Budget Analyst Dan Emerson and Chief Financial Officer Greg Munn (via Zoom conference call) reported on the item noting there were misinterpretations of the budget decisions causing clerical errors that require the current adjustments. DEBONE: Move approval of Resolution No. 2020-057 HENDERSON: Second VOTE: DEBONE: Yes HENDERSON: Yes ADAIR: Chair votes yes. Motion Carried 7. Proposal for a New Urban Renewal District - South Redmond US 97 - Urban Renewal Area County Administrator Tom Anderson introduced the item. City of Redmond representatives present via Zoom conference call were Urban Renewal Program Analyst Meghan Gassner, City Manager Keith Witcosky, City Chief Financial Officerjason Neff, Fire Chief Ken Kehmna, and Deputy Chief Jeff Puller. Presentation attached to the record summarizes the project overview. The City of Redmond is accepting comments on the proposal until October 15. The Board requested the item to come back for discussion next week in preparation for a written response to the City. BOCC MEETING SEPTEMBER 23, 2020 PAGE 3 OF 7 8. Repayment of Economic Development Loan Program Awards EDCO representatives Roger Lee, Don Mill, and Bill Kuhn were present to report on the EDCO loan incentive programs. The EDCO Board is requesting the Commissioners consider a modification of the loan repayment interest rate from 8% to 3% as of the date of the award. Commissioner Adair expressed support of the program for our business community. Commissioner Henderson would support a 5% interest rate. Commissioner DeBone supports a decrease in the interest rate and would support 3%. Commissioner Adair supported 5%. The Board expressed support of 5% for the repayment of the three existing loans and of those in the future. HENDERSON: Move to approve County Administrator signature on current repayment loan agreements at a 5% interest rate and set the rate at 5% for future EDCO loan applications. DEBONE: Does not support the motion ADAIR: Second VOTE: HENDERSON: Yes DEBONE: Yes ADAIR: Chair votes yes. Motion Carried Discussion held on the upcoming Bend Venture Conference in October. RECESS: At the time of 11:50 a.m., the Board went into recess and reconvened the meeting at 11:57 a.m. 9. COVID19 Update Health Services Department Public Health Director Nahad Sadr-Azodi and Dr. Richard Fawcett presented (via Zoom conference call). Presentation materials are attached to the record. BOCC MEETING SEPTEMBER 23, 2020 PAGE 4 OF 7 RECESS: At the time of 12:31 p.m., the Board went into recess and reconvened the meeting at 1:18 p.m. 10.Consideration of Board Signature of Document No. 2020-620, Cooperative Forest Road Agreement Road Department Director Chris Doty (via Zoom conference call) presented the item for consideration. Mr. Doty explained the areas covered through this five-year agreement with the Forest Service. HENDERSON: Move approval of Document No. 2020-620 DEBONE: Second VOTE: HENDERSON: Yes DEBONE: Yes ADAIR: Chair votes yes. Motion Carried 11.Wildfire Update Emergency Services Manager DCSO Sgt. Nathan Garibay (via Zoom conference) presented the update. Most of the large fires have stabilized and have not increased much in size. Sgt. Garibay encourages the continued restriction on campfires and outdoor burning. Sgt. Garibay reported the smoke level has decreased and noted air quality could still be affected by smoke from fires in California. Commissioner Adair expressed the need for N95 masks. Sgt. Garibay will contact the Facilities Department to deliver masks to the BOCC office. Commissioner DeBone noted the KN95 masks are available and can be made available at the BOCC front office. Sgt. Garibay reported on the Sheriff Office assistance efforts regarding the wildfires in Lane County. Commissioner Adair asked Sgt. Garibay to inform the Board if there are areas where they can provide additional assistance. Dr. George Conway (via Zoom conference call) gave an update on wildfire BOCC MEETING SEPTEMBER 23, 2020 PAGE 5 OF 7 smoke and the air quality index. 12.CARES Funding Report Chief Financial Officer Greg Munn (via Zoom conference call) presented a report on the CARES funding allocations, noting that County Counsel Dave Doyle has been extremely helpful to his efforts. Mr. Munn will present an update to the Board each week. The Board inquired on funding for Deschutes County staff that are working with counties on wildfire efforts. Sgt. Garibay (via Zoom conference call) reported on reimbursement requests to FEMA for mutual aid efforts. Commissioner DeBone suggested offering outreach regarding Project Wildfire programs to the neighboring counties that have been impacted by the fires. Commissioner Adair encouraged residents to register with the emergency notification system. 13.Discussion on Fair & Expo Audit Internal Auditor David Givans introduced this item for discussion and reviewed the recent audit completed on the Fair & Expo. This audit has been presented to the Board at several meetings. Presentation attached to the record. Mr. Givans reviewed the food and beverage inventory practices, noting that large orders had been placed shortly before COVID- 19 shut down operations. The result was that much food was expired and unusable. Fair Director Geoff Hinds was present and explained the food and beverage purchases that were impacted due to event cancellation because of the COVID19 shut -down. Commissioner Henderson inquired on the statement made on money being set aside for the 100-year fair event but the Board was not aware of the extra $100,000 that was set aside. Mr. Givans stated it was clear in the budget and there may have been miscommunication with people involved in signing for expenses. Commissioner Adair recommended having a rodeo budget. Commissioner DeBone offered assistance in pulling together partners. BOCC MEETING SEPTEMBER 23, 2020 PAGE 6 OF 7 As a result of the audit, a consideration should be made for proper operating funds and contingencies during the next budget cycle. Recommendations were made at the recent Audit Committee for a follow- up review. Commissioner Adair praised Mr. Hinds for his work on the recent rodeo event. OTHER ITEMS/COMMISSIONER UPDATES: Commissioner Adair expressed public health and fire concerns with the homeless population in the China Hat area. Commissioner DeBone also expressed concern and noted impacts associated with the upcoming winter season. EXECUTIVE SESSION: None presented. ADJOURN: Being no further items to come before the Board, the meeting was adjourned at 2:38 p.m. DATED this ( Day of 2020 for the Deschutes County Board of Commissioners 1 PATTI A AIR, CHAIR RECORDINGSECR BOCC MEETING SEPTEMBER 23, 2020 PAGE 7 OF 7 Deschutes County Board of Commissioners 1300 NW Wall St, Bend, OR 97703 (541) 388-6570 - www.deschutes.org BOCC MEETING AGENDA DESCHUTES COUNTY BOARD OF COMMISSIONERS 10:00 AM, WEDNESDAY, SEPTEMBER 23, 2020 Barnes Sawyer Rooms - Deschutes Services Center - 1300 NW Wall Street - Bend This meeting is open to the public, usually streamed live online and video recorded. To watch it online, visit www. d esch utes. org/meetings. Pursuant to ORS 192.640, this agenda includes a list of the main topics that are anticipated to be considered or discussed. This notice does not limit the Board's ability to address other topics. Item start times are estimated and subject to change without notice. CALL TO ORDER MEETING FORMAT In response to the COVID-19 public health emergency, Oregon Governor Kate Brown issued Executive Order 20-16 (later enacted as part of HB 4212) directing government entities to utilize virtual meetings whenever possible and to take necessary measures to facilitate public participation in these virtual meetings. Since May 4, 2020, meetings and hearings of the Deschutes County Board of Commissioners have been conducted primarily in a virtual format. Attendance/Participation options include: Live Stream Video: Members of the public may still view the BOCC meetings/hearings in real time via the Public Meeting Portal at www.deschutes.org/meetin&S. In Person Attendance: Limited due to Virus restrictions. Please contact Sharon Keith at sharon.keith deschutes.org prior to the meeting to request in person attendance. Citizen Input: Citizen Input is invited in order to provide the public with an opportunity to comment on any meeting topic that is not on the current agenda. Citizen Input is provided by submitting an email to: citizeninput(@deschutes.org or by leaving a voice message at 541-385-1734. Citizen input received before the start of the meeting will be included in the meeting record. Zoom Meeting Information: Staff and citizens that are presenting agenda items to the Board for consideration or who are planning to testify in a scheduled public hearing may participate via Zoom meeting. The Zoom meeting id and password will be included in either the public hearing materials or Board of Commissioners BOCC Meeting Agenda Wednesday, September 23, 2020 Page 1 of 4 through a meeting invite once your agenda item has been included on the agenda. Upon entering the Zoom meeting, you will automatically be placed on hold and in the waiting room. Once you are ready to present your agenda item, you will be unmuted and placed in the spotlight for your presentation. If you are providing testimony during a hearing, you will be placed in the waiting room until the time of testimony, staff will announce your name and unmute your connection to be invited for testimony. Detailed instructions will be included in the public hearing materials and will be announced at the outset of the public hearing. PLEDGE OF ALLEGIANCE CITIZEN INPUT (for items not on this Agenda) [Note: Because COVID-19 restrictions may limit or preclude in person attendance, citizen input comments may be emailed to citizen in put@deschutes.org or you may leave a brief voicemail at 541.385.1734. To be timely, citizen input must be received by 9:00am on the day of the meeting.] CONSENT AGENDA Consideration of Board Signature of Document No. 2020-617, Oregon Health Authority Amendment 11 to the 2019-2021 IGA for Financing of Behavioral Health Services 2. Consideration of Board Signature of Document No. 2020-645, Termination of Improvement Agreement and Hold Harmless Agreement for the Infrastructure Improvement Agreement Recorded at 2016-21768, Tetherow Tract Y 3. Consideration of Board Signature of Resolution No. 2020-056 to Approve an Increase in FTEs Within the FY 2020-21 Deschutes County Budget 4. Consideration of Board Signature of Resolution No. 2020-057, to Increase Appropriations in the FY 2020-21 Budget 5. Consideration of Board Signature to Reappoint Cindy Van Patten to the Four Rivers Vector Control District Board 6. Consideration of Board Signature to Reappoint Wallis Hathaway to the Deschutes County Dog Control Board of Supervisors ACTION ITEMS Board of Commissioners BOCC Meeting Agenda Wednesday, September 23, 2020 Page 2 of 4 7. 10:15 AM Proposal for a New Urban Renewal District - South Redmond US 97 Urban Renewal Area - Tom Anderson, County Administrator 8. 11:00 AM Repayment of Economic Development Loan Program Awards -Whitney Hale, Communications Director 9. 11:30 AM LUNCH RECESS COVID19 Update 10. 1:00 PM Consideration of Board Signature of Document No. 2020-620, Cooperative Forest Road Agreement - Chris Doty, Road Department Director 11. 1:30 PM Wildfire Update 12. 2:00 PM CARES Funding Report 13. 2:30 PM Discussion on Fair & Expo Audit OTHER ITEMS These can be any items not included on the agenda that the Commissioners wish to discuss as part of the meeting, pursuant to ORS 192.640. EXECUTIVE SESSION At any time during the meeting, an executive session could be called to address issues relating to ORS 192.660(2)(e), real property negotiations; ORS 192.660(2)(h), litigation; ORS 192.660(2)(d), labor negotiations, ORS 192.660(2)(b), personnel issues, or other executive session categories. Executive sessions are closed to the public; however, with few exceptions and under specific guidelines, are open to the media. ADJOURN To watch this meeting on line, go to: www.deschutes.org/meetings Board of Commissioners BOCC Meeting Agenda Wednesday, September 23, 2020 Page 3 of 4 Please note that the video will not show up until recording begins. You can also view past meetings on video by selecting the date shown on the website calendar. Deschutes County encourages persons with disabilities to participate in all programs and activities. This event/location is accessible to people with disabilities. If you need accommodations to make participation possible, please call (541) 617-4747. FUTURE MEETINGS: Additional meeting dates available at www.deschutes.org/meetingcalendar (Please note: Meeting dates and times are subject to change. All meetings take place in the Board of Commissioners' meeting rooms at 1300 NW Wall St., Bend, unless otherwise indicated. If you have questions regarding a meeting, please call 388-6572.) Board of Commissioners BOCC Meeting Agenda Wednesday, September 23, 2020 Page 4 of 4 �0T ES CO �C, G 2 Q� Deschutes County Board of Commissioners 1300 NW Wall St, Bend, OR 97703 (541) 388-6570 - Fax (541) 385-3202 - https://www.deschutes.org/ AGENDA REQUEST & STAFF REPORT For Board of Commissioners BOCC Wednesday Meeting of September 23, 2020 DATE: September 17, 2020 FROM: William Groves, Community Development, 541-388-6518 TITLE OF AGENDA ITEM: Consideration of Board Signature of Document No. 2020-645, Termination of Improvement Agreement and Hold Harmless Agreement for the Infrastructure Improvement Agreement Recorded at 2016-21768, Tetherow Tract Y RECOMMENDATION & ACTION REQUESTED: Consider Signature of Doc No 2020-645 BACKGROUND AND POLICY IMPLICATIONS: The County and VRE Tract Y, L.L.C. ("Owner") are the parties to an Infrastructure Improvement Agreement, pursuant to which the Owner constructed the Required Improvements (as defined in the Improvement Agreement). The Owner has completed the Required Improvements and conveyed them to the Homeowner's Association ("Association"). The County has inspected the Required Improvements and determined that some repairs are necessary. Pursuant to a letter from the Association to the County, the Association has acknowledged the need for such repairs and agreed to make them. The County has agreed to release Owner from any and all warranty obligations under the Improvement Agreement, provided that the Owner and Association agree to hold County harmless from any claims related to the condition of the Required Improvements. The Owner and County Legal have worked together to draft this Termination of Improvement Agreement and Hold Harmless Agreement. FISCAL IMPLICATIONS: None ATTENDANCE: Will Groves, Legal STAFF MEMORANDUM Date: September 17, 2020 To: Board of County Commissioners From: Will Groves, Senior Planner Re: Doc No 2020-645 - Termination of Improvement Agreement and Hold Harmless Agreement for the Infrastructure Improvement Agreement recorded at 2016-21768, Tetherow Tract Y, File No. 247-15-000485-TP I. Background The County and VRE Tract Y, L.L.C. ("Owner") are the parties to an Infrastructure Improvement Agreement, pursuant to which the Owner constructed the Required Improvements (as defined in the Improvement Agreement). The Owner has completed the Required Improvements and conveyed them to the Homeowner's Association ("Association"). The County has inspected the Required Improvements and determined that some repairs are necessary. Pursuant to a letter from the Association to the County, the Association has acknowledged the need for such repairs and agreed to make them. The County has agreed to release Owner from any and all warranty obligations under the Improvement Agreement, provided that the Owner and Association agree to hold County harmless from any claims related to the condition of the Required Improvements. The Owner and County Legal have worked together to draft this Termination of Improvement Agreement and Hold Harmless Agreement. III. NEXT STEPS The Board will consider signature of this document on September 23, 2020. DESCHUTES COUNTY PLANNING DIVISION Will Groves, Senior Planner 1 1 7 NW Lafayette Avenue, Bend, Oregon 97703 1 P.O. Box 6005, Bend, OR 97708-6005 Q (541) 388-6575 @ cdd@deschutes.org @ www.deschutes.org/cd Attachment Ref No. Doc No. 2020-645 - Termination Of Improvement Agreement And Hold Harmless Agreement Deschutes County Document No. 2016-21768 1 Page 2 of 2 REVIEWED LEGAL COUNSEL After Recording Return to: Deschutes County Community Development Department 117 NW Lafayette Street Bend, OR 97703 For Recording Stamp Only TERMINATION OF IMPROVEMENT AGREEMENT AND HOLD HARMLESS AGREEMENT Deschutes County Document No. 2016-21768 (Roads and Utilities) This Termination of Improvement Agreement and Hold Harmless Agreement ("Termination"), entered into by and between Deschutes County, a political subdivision of the State of Oregon ("County"), VRE Tract Y, L.L.C. ("Owner") and the Trailhead at Tetherow Owners Association (the "Association") relates to the construction and installation of the Required Improvements (as defined herein) constructed for Forest Gateway Phase I, as required in the subdivision approval in File No. 247-15-000485-TP. County and Owner are the parties to that certain Improvement Agreement recorded in the official records of Deschutes County, Oregon, at 2016-21768 (the "Improvement Agreement"), pursuant to which Owner constructed the Required Improvements (as defined in the Improvement Agreement). Owner has completed the Required Improvements and conveyed them to the Association. County has inspected the Required Improvements and determined that some repairs are necessary. Pursuant to a letter from the Association to the County, the Association has acknowledged the need for such repairs and agreed to make them. The County has agreed to release Owner from any and all warranty obligations under the Improvement Agreement, provided that the Owner and Association agree to hold County harmless from any claims related to the condition of the Required Improvements. This Termination is effective upon signature of all parties and satisfaction of the condition described in Section 1 below. NOW THEREFORE, AGREEMENT IT IS HEREBY AGREED BY AND BETWEEN THE PARTIES above mentioned, for and in consideration of the mutual promises hereinafter stated, as follows: 1. Recitals/Definitions. The Recitals to this Termination set forth above are hereby incorporated herein as if fully set out, shall constitute contractual provisions and are Doc No. 2020-645 Page 1 of 3 not mere recitals. Capitalized terms used without definition herein shall have the meaning given them in the Improvement Agreement. 2. Real Property Description. The real property subject to this Termination is described in the Improvement Agreement. 3. Termination; Release of Security. The Improvement Agreement is hereby terminated and of no further force and effect. County further agrees that Owner has no further obligations with respect to any warranty of the Required Improvements, including, without limitation, any obligation to provide security for a warranty. Substantially concurrently herewith, County will take such actions as are reasonably necessary to release any security provided by Owner with respect to the Requirement Improvements, including any security provided in support of the warranty. 4. Hold Harmless. Each of Owner and Association agrees to hold County harmless from and against all claims, losses or liability arising out of or related to any defect in the Required Improvements. S. Effect of Amendment. Owner and County agree that upon recordation of this Termination, the Improvement Agreement shall no longer encumber the property against which it is recorded. 6. Effective Date. Notwithstanding mutual execution of this Termination, this Termination shall not become effective until recorded. * * *Remainder of Page Purposely Left Blank* * * Doc No. 2020-645 Page 2 of 3 Dated this of September 2020 BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON ATTEST: Recording Secretary STATE OF OREGON ) ) ss. County of Deschutes ) PATTI ADAIR, Chair TONY DEBONE, Vice Chair PHILLIP G. HENDERSON, Commissioner Before me, a Notary Public, personally appeared PATTI ADAIR, TONY DEBONE, and PHILLIP G. HENDERSON, the above -named Board of County Commissioners of Deschutes County, Oregon and acknowledged the foregoing instrument on behalf of Deschutes County, Oregon. DATED this day of September 2020 Notary Public, State of Oregon My Commission Expires: DATED this day of September 2020 OWNER: VRE TRACT Y, L.L.C. By:_ Name: Title: STATE OF OREGON ) ss. County of Deschutes ) Before me, a Notary Public, personally appeared acknowledged the foregoing instrument as DATED this day of September 2020. , and of VRE Tract Y, L.L.C. Notary Public, State of Oregon My Commission Expires: Doc No. 2020-645 Page 3 of 3 AGENDA REQUEST & STAFF REPORT For Board of Commissioners BOCC Wednesday Meeting of September 23, 2020 DATE: September 14, 2020 FROM: Tom Anderson, Administrative Services, 541-388-6565 TITLE OF AGENDA ITEM: Proposal for a New Urban Renewal District - South Redmond US 97 Urban Renewal Area Redmond `South Redmond US 97' Urban Renewal Area The City of Redmond proposes to create a second urban renewal area in the southern portion of the City, in addition to the existing Downtown URA. The proposed 25-year plan covers over 1,300 acres, and is designed to fund $116 million in projects in order to eliminate blight and stimulate development in the proposed URA. Expected net financial impacts on county taxing districts is shown below. Deschutes County $4,250,129 Countywide Law Enforcement $3,767,658 911 $1,262,170 Extension 4H $ 78,146 Total $9,358,103 Similar to the City of Bend proposal, the City must address any comments received by impacted taxing districts in considering approval of the proposed URA. Comments are due by October 15, 2020. ATTENDANCE: Via Zoom Meghan Gassner, Urban Renewal Program Analyst for the City of Redmond will provide an overview of the proposal and answer any questions the Board may have. W 0 a F 0 U) m CL E ■ u L CL v O .v L�Q�� j O O O L ® +a a® ♦� O L O O cc Q- E >, a) U -�-� U .� ® W 4-. 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Ma O N U) 3 V� 00 O L LL V 0 4) U � O � N � A O n Q U) = C C � cOj E 2O p E O � N C U OU C CL O N E i � N N U O N EO O C Q Q �4-0 -t � O � _ O cn -►.. 01 U _N Ccn cn O O C . r N =3 -#� U) X � c_A ,- N > N F, cn "a cn EO -0 C � U CO C �co CL° ° a O N O U : c U L V U C L U ® — m Ma) c Um �L- 00) OQ c O Orn ��- U O m �0 U� U Ca Q O N (D U > m cn N RE L CL O 00 O co cu 4-1 U) D, U O O U U) R O O 0 • I O F' ,ice► ' . s � � �� ,— g o O t V uq 3 �� � c v O N V Q G] O cii -3+ k. co 0') Cl 4-- ^� !^ ( ca p L.L c 0 .0 -O -{-. � -� _ U c � — cn ca � C' O o a- Co 4— m0 a)-0 a) �.., a) p- X c Q co o U U .CUB �� �� 0� � 0 . QUO co L (pOX tc O U O •� `o��lttOSU'tF (tt64IRIf�P � O J�'^ 8 gLM O4am off= ,�INt t41fi 5 a\`� v a) N "o V� �C5°) ���� G� ca om5, .� ELUCD F I U. 4) 0 Ad 0o a)0 — .,�_ T� O �M '= -C �� cnLZ ON c (nCO OCn� U)cu a)� Rf� EV� �O I M vLoN ` Co0> a)OcO L"� �� >a)Lf ODU w�c c�2 ��- EOM a) c A • 0ti - -r E .i V � o O o N .N > O go Pi hi L O •� � L E O E 0 O V Z ow cn LM 1 i 2 411 SW 9`l' STREET REDMOND, OR 97756 541.923.7710 FAX: 541.548.0706 info@cixedmond.onus www.cixedmond.onus August 31, 2020 VIA CERTIFIED MAIL Board of County Commissioners Attention: Ms. Patti Adair, Board Chair c/o Tom Anderson, County Administrator 1300 NW Wall Street Bend, OR 97703 RE: Proposal for a New Urban Renewal District - South Redmond US 97 Urban Renewal Area Dear Ms. Adair, The City of Redmond is pursuing the creation of a new urban renewal district that is intended to primarily address the following regional issues: ✓ General local dollars that will be used to leverage state and federal money to improve the safety and freight mobility problems along South Highway 97. ✓ Address infrastructure needs to help draw jobs and industrial employment opportunities to nearly 1,000 acres south of the County Fairgrounds. As an impacted taxing jurisdiction, your input is important, and required, in accordance with state law. Enclosed is the proposed South Redmond US 97 Urban Renewal Area Plan and Report discussing the proposed District and its projects. City Council has directed staff to formally commence taxing jurisdiction outreach efforts and to seek support for this important initiative. Our intent is to provide formal briefings to you and your leadership in August and September and to return to City Council to seek formal plan adoption in November 2020. Our hope is that from these briefings you will gain an understanding of the regional importance of these investments which allow you to make an informed opinion. We will present your input to City Council as part of their decision -making process this fall. Formal Review Process In 2017, the Oregon legislature passed legislation that provides the opportunity for overlapping taxing jurisdictions affected by a proposed urban renewal plan to submit recommendations to the Urban Renewal Agency (ORS 457.089(2)). Enclosed you will find the Redmond Urban Renewal Agency's proposed Plan and accompanying Report for the South Redmond US 97 Urban Renewal Area. In order for us to consider your recommendations, you have forty-five (45) days from receipt of the Plan and Report to submit recommendations. We are requesting your formal input be submitted no later than October 15, 2020 and will follow up with specifics about this process. Please submit to: Redmond Urban Renewal Agency Meghan Gassner, Urban Renewal Program Analyst 411 SW 9th Street Redmond, OR 97756 via email: Meghan.gassner@redmondoregon.gov The City Council shall accept, reject, or modify the recommendations received from each taxing district. Should your Board be prepared to provide their support for the creation of this district, a template resolution has been included in this packet for your use during that discussion and formal action. Please submit your formal action also within 45 days, no later than October 15, 2020. We are available to attend board meetings and or respond to questions you may have. Please contact Meghan Gassner, Urban Renewal Program Analyst, at (541) 693-7759 and we will be glad to answer any questions or make arrangements with you if a meeting has not yet been scheduled. Best regards, i Mayor George Endicott Redmond City Council August 2020 Prepared for: City of Redmond, Oregon 411 Southwest 9th Street Redmond, Oregon 97756 www.redmondoregon.gov Prepared by: R` LELAND CONSULTING GROUP 610 SW Alder Street, Suite 1200 Portland, Oregon 97205 www.lelandconsulting.com In collaboration with TORG0N nc S Redmond US 97 Urban Renewal Area I Report on the Urban Renewal Plan Table of Contents INTRODUCTION 3 100. DESCRIPTION OF THE PHYSICAL, SOCIAL AND ECONOMIC CONDITIONS 4 200. EXPECTED SERVICE AND POPULATION IMPACTS OF THE PLAN 17 300. REASONS FOR SELECTING THE URBAN RENEWAL PLAN 19 400. RELATIONSHIP BETWEEN EACH PROJECT ACTIVITY AND EXISTING CONDITIONS 20 500. FINANCIAL ANALYSIS OF PLAN 23 600. RELOCATION 31 APPENDIX A: REVENUE ASSUMPTIONS FOR THE URBAN RENEWAL AREA 33 APPENDIX B: SCHEDULE OF PROJECTIONS AND PROGRAMS 35 APPENDIX C: DETAILED SOURCES AND USES SCHEDULE 37 APPENDIX D: PROJECTED INCREMENTAL TAXABLE VALUE OF DISTRICT 40 APPENDIX E: ESTIMATED IMPACT ON TAX RATES AND REVENUE — OVERLAPPING TAXING JURISDICTIONS 41 APPENDIX F: LEGAL DESCRIPTION OF URBAN RENEWAL BOUNDARY 46 www.lelandconsulting.com 2 S Redmond US 97 Urban Renewal Area ( Report on the Urban Renewal Plan INTRODUCTION The following Report on the South Redmond US 97 Urban Renewal Plan (the "Report") provides supporting information to the S Redmond Hwy 97 Urban Renewal Plan (the "Plan") according to the requirements of ORS 457.087. Gathered from a variety of resources, the Report contains background information on the S Redmond Hwy 97 Urban Renewal Area ("Area"), a blight analysis for the District, project details for the projects added by the Plan, and financial feasibility analysis for the Plan. A Report shall accompany the Plan to describe existing conditions in the Area, identify the estimated costs of projects and sources of funding, and perform the financial feasibility analysis. It is intended to provide public information and a basis for the findings made by the City Council as part of its approval of the Plan. ORS 457.087 requires a report to include: • A description of the physical, social, and economic conditions within the district and the impact of the plan, including fiscal impacts, in light of added services or increased population • Reasons for the selection of the Urban Renewal Area (cure blight, implement recommendations from plans) • Descriptions of land use and zoning, and references to the City's Comprehensive Plan, Capital Improvement Plan (CIP), Transportation System Plan (TSP) • The relationship between each project and the conditions within the urban renewal area • Project estimated costs and sources of funding (TIF and other) The estimated completion date for each project • The estimated amount of money required for each urban renewal area and the anticipated year in which indebtedness will be retired or otherwise provided • A financial analysis of the plan, with sufficient information to determine the feasibility of the plan The fiscal impact on overlapping taxing districts, both until and after the indebtedness is repaid • A relocation report that includes: o An analysis of existing residents or business required to relocate temporarily or permanently as a result of the urban renewal agency's actions o A description of the methods to be used for the temporary or permanent relocation of persons living and businesses situated, in the urban renewal area o An enumeration, by cost range, of the existing housing units in the urban renewal areas of the plan to be destroyed or altered and the new units to be added www.lelandconsulting.com S Redmond US 97 Urban Renewal Area I Report on the Urban Renewal Plan 100. DESCRIPTION OF THE PHYSICAL, SOCIAL AND ECONOMIC CONDITIONS The conditions described in this section pertain to the Urban Renewal Area (Area) shown in the following map, A legal description for the Area boundary is included in Attachment "F" of this Plan. Figure 1. South Redmond US 97 Urban Renewal Area Boundary law iuu�per rrvc nv _ SW Ka1Jma'Ave M SW Lava i SW Metolws Ave M,, s . Av ntklMon Rd M N a N 31 QilSId1111 1ve M S15ter5 Ave ryl 7 t -_ '=SVd VumleC Avert a SW Pumice PI M -' 7+ Qunrlt Ave M y aOprtt DIM t.-. ~ y ,y X,C 5W=Relndecr AveM .gym 1 3 -Re atdCCi Ave 1,9 'iY15ar q�." ¢, �kv Salmon Ave 'non ASY, M H �� p 4 tv1 Shy 'SW Um;rtilla AVe Gncoa5tM�`r��.a,; 5W VJ,ckWp Avv�/y ��, `' SE AirportWaV� s,. � a �Ncliz Ru s �� n Mt y 'nvGrcens BivdM '= d °� catdr lh �, `d�0 sw a� 3 t t t��. t mi Source: Leland Consulting Group www.lelandconsulting.com 4 S Redmond US 97 Urban Renewal Area I Report on the Urban Renewal Plan A. Physical Conditions 1. Land Area The Redmond S Highway 97 Urban Renewal Area encompasses 1,330.5 acres of land area within the City limits. ORS 457.420(2)(b)(B) 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 percent of the City's land area (for Cities with populations of less than 50,000). The City's current land area is approximately 10,449 acres. The Redmond Downtown Urban Renewal District includes 701.70 acres (6.7 percent of the total). The proposed South Highway 97 Urban Renewal District boundary includes 1,330.52 acres (12.7 percent of the total). The total of all acreage in urban renewal areas represents 19.45 percent of the City's land area and is, therefore, within the 25 percent limitation. Table 1. Urban Renewal Area Conditions Source: Deschutes CountyAssessor 2. Topology and Geography The Urban Renewal Area consists of predominately flat land, 0.0 to 8.0 percent slopes. The soil in the area is generally Deschutes-Stukel complex, which consists of shallow, well -drained soils from volcanic rock. The rocky nature of the area can add to the cost of excavation for building foundations, streets, and utilities. The Central Oregon Irrigation District (COID) Pilot Butte Canal runs adjacent to Highway 97 to the west and the Burlington Northern Santa Fe (BNSF) railway runs along the east. The irrigation canal and railway are barriers to east -west traffic circulation. US 97 South Corridor is mirrored by Canal Blvd. to the west which is the arterial roadway that collects most of the City's westbound traffic. The South Redmond Tract is relatively level with scattered lava rock outcrops. Surrounding the rock outcrops are level areas of shallow, sandy soils. Elevation ranges from 3,050 to 3,180 feet. it is physically characterized as juniper woodland and considered rangeland. Vegetation includes westernjuniper and sagebrush and the soils are mostly sandy loam with basalt outcrops. 3. Existing Land Use and Development A detailed parcel -by -parcel land use inventory of the Urban Renewal Area was undertaken in April 2020 and is summarized in the following table and charts. The inventory shows the Urban Renewal Area contains a significant amount of vacant and underdeveloped land. Of the categorized land uses, the largest percentage of the acreage is undeveloped. The Area contains 1,080.E acres (83.2%) of land which is vacant or contains only non-structural improvements, such as parking lots, storage yards, etc. This area is mostly without streets, sidewalks, and utilities necessary for development. The four primary uses of developed acreage include industrial, retail, auto sales/service, and single-family residential, The opportunity exists to promote higher density development on the undeveloped acreage in the Urban Renewal Area. www.lelandconsulting.com S Redmond US 97 Urban Renewal Area I Report on the Urban Renewal Plan Figure 2. Parcels by Land Use (Acres) j O ROW m REMNANT PARCEL a UTILITY SFR o Q in F= MFR � w DUPLEX COMMERCIAL CONDO UNDEVELOPED INDUSTRIAL, OFFICE INDUSTRIAL, AUTO SALES/SERVICE INDUSTRIAL VACANT OFFICE BLD.G a RETAIL, OFFICE, CHURCH U RETAIL, INDUSTRIAL 2 RETAIL, AUTO SALES/SERVICE 2 RETAIL, OFFICE v RETAIL PARKING OFFICE MEDICAL OFFICE HOTEL BANK AUTO SALES/SERVICE Source: Deschutes County Assessor, LCG 1074.3 10 20 30 40 50 60 70 The most intense concentration of the Urban Renewal Area's commercial uses is found in the core of the area along Highway 97, particularly in the northern half. Commercial uses, which include retail, service, office, and auto -oriented uses, comprise 118 of the 283 parcels, or 41.7 percent of the total. Industrial uses, which include warehousing, manufacturing, and transportation uses, comprise 55 parcels, or 19A percent of the total. Parcels in residential use comprise 81 of the 278 parcels in the Urban Renewal Area, or 29.1 percent of the total. However, reflecting the typically small parcel sizes generally associated with urban residential uses, residential parcels total only 46 acres, comprising only 3.5 percent of the total acreage within the Urban Renewal Area. Of the 81 residential parcels, 69 are single family, three are multifamily (with one under construction), and 8 are duplexes. The bulk of the residential land uses in the Urban Renewal Area are located in the southwest section of the Area, between Canal Boulevard and US 97. A recently conducted market analysis suggests that future demand for new housing opportunities in the Urban Renewal Area exists. 4. Site Conditions A survey of site conditions in the Urban Renewal Area was conducted in April 2020. The survey identified 77 parcels as vacant or partially vacant, representing 30.8 percent of the parcels, but 87.4 percent of the land area within the proposed boundary. Development status was determined primarily through in -person observation and supported by aerial imagery analysis and tax roll data analysis. www.lelandconsulting.com S Redmond US 97 Urban Renewal Area ( Report on the Urban Renewal Plan The table below indicates a significant amount of potentially valuable property in the proposed renewal area appears to be under -developed, producing little property tax for the City and other taxing bodies. The diminished property taxes resulting from a preponderance of undeveloped and/or low -value development can lead to service issues for the community. Lower property values due to lack of development and utilization of the area for tax producing purposes meet the ORS definition of blight. Table 2. Site Development Status Partially Development Parcels 60.0 vacant 17.0 -. 173.0 % of Total 24.0% 6.8% 69.2% Acres 1080.6 43.1 162:6 % of Total 84.0% 3.4% 12.6% Source: Deschutes County Assessor, Leland Consulting Group Additionally, site conditions of parcels for a significant majority ofIhe proposed urban renewal area are poor or substandard (1,053.7 acres, 81.1 percent of the area). Poor and substandard site conditions include visible deterioration, drainage issues, overgrown vegetation, inefficient circulation or site configuration, etc. Less than 20 percent (18.9 percent) of the area, 200 parcels, have acceptable site conditions. Table 3. Site Conditions Source: Deschutes County Assessor, Leland Consulting Group 5. Building Occupancy and Conditions A survey of building use and occupancy in the Urban Renewal Area was conducted in April 2020. The survey identified 187 parcels (66 percent of the total) in the Urban Renewal Area as containing buildings. The survey, which was of exterior building conditions only, evaluated the basic structural condition and level of maintenance of the buildings. Building conditions were categorized as "average to good", "fair (needing repair or maintenance) ", and "seriously substandard." Building conditions in the proposed area are generally in average to good condition, 91.4 percent of parcels and 84.0 percent of developed acreage. Fair and seriously substandard buildings represent 15 parcels, 8.0 percent of the total parcels, and 15.8 percent of the developed acreage. Most of these properties in these categories are either commercial buildings suffering primarily from aesthetic obsolescence or older single-family houses that have fallen into disrepair over time. www.lelandconsulting.com S Redmond US 97 Urban Renewal Area I Report on the Urban Renewal Plan Table 4. Building Conditions Building Exterior Condition Average to Good Fair (Repair/ Maintain) Seriously Substandard omml Source. Deschutes County Assessor, LCG : Within the study area, building occupancy is high, with 192.8 acres of 203.0 acres fully occupied (95.0 percent) representing 177 of 187 parcels with buildings (94.7 percent). The survey results found that 10 buildings within the Renewal Area are either vacant or partially vacant. While these vacancies are scattered throughout the Area, there is a higher concentration of vacant or partially vacant commercial buildings along Highway 97. Leland Consulting Group utilized Costar commercial real estate data to determine existing long-term vacancies, which was supplemented with tax roll data and in -person observations. Table 5. Building Occupancy Status Source: Deschutes CountyAssessor, Leland Consulting Group 6. Conditions — Traffic and Circulation The US 97 South Corridor serves as the primary north -south arterial through Redmond and is approximately three miles long from Highland Avenue to the south of the Yew Avenue/Airport Way interchange. The corridor serves a mixture of state, regional, and local traffic traveling to, frorn, and within a variety of diffefenl destinations in Central Oregon, The City is a destination that is not only the hub for transportation serving Central Oregon but also has regional attractors, including an airport, county fairgrounds, and many industrial and commercial areas. Traffic signals exist at Odem Meadow Way, Veterans Way, and Highland Avenue. A 2017 traffic analysis indicated that most intersections within the corridor are within an acceptable level of service (LOS) per Highway Capacity Manual (HCM) standards. The traffic analysis also estimated 28,000 average daily trips along the corridor. A large majority of the traffic turns west on the various side streets along the corridor to reach the City's suburban areas. The commercial, industrial, fairgrounds and airport areas to the east are only accessible through Veterans Way and the off -ramps at Yew Avenue and Airport Way. The US 97 Corridor Plan included 2040 traffic volume forecasts. Most of the land use growth in the study area forecast by the year 2040 is related to employment (i.e., commercial and industrial businesses), with a net increase of about 700 workers in the areas immediately adjacent to US 97 (a 97 percent increase over 2010). The employment growth, coupled with housing growth elsewhere in the City of Redmond and regional travel www.lelandconsulting.com S Redmond US 97 Urban Renewal Area ( Report on the Urban Renewal Plan growth on US 97, will increase traffic activity with average daily traffic volumes from approximately 28,000 vehicles in 2017 to approximately 36,000 vehicles in 2040. The improvements outlined in the Plan are expected to significantly improve operations and greatly mitigate the impacts of this growth. Access to the South Redmond Tract is limited to a dead end on 19th Street. The 19th Street extension is critical to improving access to the area. On the north, 19th Street provides direct access to Airport Way and the Yew Avenue interchange at US 97. 7. Conditions — Sidewalks and Streetscape Properties with missing sidewalks or sidewalks in need of repair are present throughout the Urban Renewal Area, in both residential and commercial areas. A field survey of sidewalk conditions was conducted in April 2020, which indicated that 42 percent of all parcels in the Area have missing or deteriorated sidewalks along their property frontage. The results of this survey are shown in the following table. Given the vast majority of the area is undeveloped (due to the DSL property), a high proportion of the total acreage within the Area is without sidewalks. With regard to parcels, there is an especially high concentration of properties with missing sidewalks in the residential neighborhoods west of Canal Boulevard, in the central and southern commercial and industrial areas of the Urban Renewal Area. Table 6. Sidewalk Conditions Source: Deschutes County Assessor, LCG 8. Conditions — Sewer and Water Services Most of the City's sewer flows within the US 97 South Corridor are collected via gravity sewer mains. The gravity sewer mains convey flows to the West Side Sewer Interceptor pipe located in the City's west and central area. The West Side Sewer Interceptor ultimately delivers all sewer flows by gravity to the City's Water Pollution Control Facility (WPCF). Sewer flows specifically from the south area, which includes the County Fairgrounds and the Fairgrounds Business Park subdivisions, are collected via gravity mains to the Yew lift station. The lift station directs flows via a sewer force main to a gravity main located along Canal Boulevard, which ultimately conveys flows to the West Side Sewer Interceptor. Capacity has not been identified as a constraint for all US 97 South Corridor improvements. The City recommends a new lift station and forced main to serve the Large Lot Industrial (LLI) site. Alternately, the City is also open to a package treatment plant for the LLI site. The City obtains 100 percent of its water supply from groundwater through drilled wells. The City's water distribution system is divided into various zones that operate at different capacities and pressures. Most of the US 97 South Corridor lies within Pressure Zone 2 which encompasses most of the City. The south area is within Pressure Zone 1, which is considered the high-pressure zone for the City. The City has identified several projects to align with the US 97 South Corridor improvements and also to provide water service to the LLI site. In summary, the projects identified include a new reservoir and well along with numerous new water pipeline projects which are required to meet future capacity and fire flow demands. www.lelandconsulting.com S Redmond US 97 Urban Renewal Area I Report on the Urban Renewal Plan 9. Conditions — Comprehensive Plan Goals and Objectives The Redmond Comprehensive Plan addresses numerous conditions, deficiencies, and issues addressed in this Urban Renewal Plan. Specific goals and policies found in the Redmond Comprehensive Plan concerning area conditions and problems are: CHAPTER 9 — ECONOMIC DEVELOPMENT Goals 1. Expand, improve, and diversify the economy of the Redmond Urban Growth Boundary area while maintaining Redmond's quality of life. 3. Retain or create industrial, office, professional service, technology, medical, tourism, retail, and otherjobs through expansion and retention of existing businesses and recruitment of new businesses. 4. Improve the appearance of the community's employment districts, particularly along Highways 97 and 126, the Downtown, central eastside industrial areas, and the Airport/Fairgrounds area. 9. Provide, maintain, and promote the enhancement of state of the art infrastructure, including, but not limited to, transportation systems, water, sewer, natural gas, power, telecommunications, and air.service to support the commercial and industrial needs of the community. 11. Maintain Redmond's favorable employment to housing ratio by taking affirmative steps to ensure economic development and employment growth keeps pace with population growth, especially for industrial employment. 12. To build a strong and thriving regional economy by coordinating public investments, policies, and regulations to support regional and state economic development objectives in Central Oregon as determined through the Central Oregon Large Lot Industrial Land Needs Analysis. Policies 9. The City should give a high priority to extending and irnproving the infrastructure needed for economic development. 10. The City shall provide an incentive program encouraging the development of primary industry family -wage jobs. 11. The City should provide incentives and innovative ways to encourage and promote an inventory of available industrial buildings and a pre -approved process to attract industrial uses. 12. General Objectives Encourage landscaping and other forms of city beautification for the purpose of enhancing the physical character of each area, and the overall city. Focus community efforts to improve the overall appearance of existing commercial areas and similar considerations encouraged to all new developments. Rehabilitate or re -develop older commercial areas in order to retain their values to the community, including the Downtown and Highway 97 corridor after the highway is re-routed to a limited access corridor. 33. Commercial development adjacent to arterial streets and State highways shall be subject to access restrictions. www.lelandconsulting.com 10 S Redmond US 97 Urban Renewal Area I Report on the Urban Renewal Plan 34. C-1 commercial development along Highway 97 shall be encouraged to provide service access roads which feed into arterial and collector streets at designated points. 46. The City recognizes the importance of maintaining a large -lot industrial land supply that is readily developable in Central Oregon. Findings: Plan's relationship to Chapter 9 — Economic Development. • The Plan's Industrial Opportunity Fund, Small Loan Program, and Incentive Funding project activities support Economic Development Goals 1, 3, 11, and 12 and Policies 10, 11, and 46 through programs that support the development or expansion of businesses and employment centers that retain and create job opportunities, help maintain a balance of jobs to housing, promote public -private and inter -agency coordination, and expand, diversify, and improve the local economy. • The Plan's public utility, power, gas, and telecommunications project activities support Economic Development Goals 9, 11, and 12 and Policies 9 and 46 by extending and improving Redmond's infrastructure to meet the commercial and industrial needs of the community, thereby supporting job growth, supplying readily developable large -lot industrial land, and helping the City coordinate investments to support regional and state economic development objectives in Central Oregon. • The Plan's transportation project activities support Economic Development Goals 4, 9, and 11 and Policies 33 and 34 by funding transportation investments that improve the appearance of transportation elements in the Area's employment districts, modify and enhance access and connectivity, and extend, develop, and improve infrastructure to serve the commercial and industrial needs of the community. • The Plan's transportation project activities support Economic Development Goals 1, 4, 9, and 12 and Policies 12(b)(f)(i) and 34 by improving the Area's physical appearance, accessibility, and navigability by various modes of transportation, and strengthening the identity and vitality of both the US 97 Corridor and the broader Area. CHAPTER 10 — HOUSING Goals 3. Establish residential neighborhoods that are safe, convenient, and attractive places to live, which are located close to schools, parks, shopping, and employment centers. 5. Provide a broad range of accessible and affordable housing. 6. Provide for higher densities in proximity to schools, services, parks, shopping, employment centers, and public transit. Policies 23. Criteria for the location of multifamily housing shall include proximity to the City core, neighborhood commercial centers, major transportation corridors, schools, services, parks, shopping, employment centers, and transit corridors. Findings: Plan's relationship to Chapter 10 — Housing. The Plan's transportation and utility infrastructure project activities support Housing Goals 3, 5, and 6 and Policy 23 by reducing the cost burden on developers, thereby improving the prospects of new housing development, and potentially increasing the probability of higher density developments. www.lelandconsulting.com 11 S Redmond US 97 Urban Renewal Area I Report on the Urban Renewal Plan The Plan's development assistance and incentive funding program activities support Goals 3, 4, 5, and 6 and Policy 23 by supporting employment growth along a major corridor, near shopping and employment centers, and near services. CHAPTER 11— PUBLIC FACILITIES AND SERVICES Goals 1. To provide for a close correlation between the provisions of urban services and urban development in order to bring about a more orderly and efficient development pattern, and thereby avoid unnecessary tax burdens and excessive utility costs normally associated with scattered, unrelated development. 2. To achieve a balance of public costs vs. benefits/revenues in the provision of public facilities and services. 3. To provide public and private utility systems - water, sanitary and storm sewer, energy, communications, garbage, and recycling - at levels necessary and suitable for existing and proposed uses. 5. Public facilities shall be available or under construction prior to the issuance of Building Permits. Policies 2. The City should establish revenue sources to pay for its planned capital improvements. 3. The City Council should investigate funding alternatives to property taxes for funding public facilities and services. 11. The City shall continue to develop, operate, and maintain a water system, including wells, pumps, and reservoirs, capable of serving all urban development within the UGB. 15. Storm drainage facilities such as dry wells, landscaping, retention ponds or storm drains shall be used to control surface drainage. 26. The City shall encourage Natural Gas providers to provide service throughout the UGB area. 27. Property for future fire station locations should be planned for and purchased in advance in order to save costs of facility zoning construction. Attempts shall be made to combine future stations with other government entities in order to reduce infrastructure and operations costs. FINDINGS: Plan's Relationship to Chapter 11 — Public Facilities and Services. • The Plan's public utility, power and gas, and communications projects support Goals 1, 2, and 3 and Policies 11, 15, and 26 by providing infrastructure deemed critical to attracting desired users to the Area and by providing the necessary infrastructure for existing businesses and industries to expand operations. • The Plan's Fire Station project supports Goal 5 and Policy 27 by providing funding for a new fire station to serve south/southeast Redmond. • The Plan supports Policies 2 and 3 by providing additional funding methodologies and funding alternatives to pay for and leverage planned capital improvements and programs. ® The Plan's Industrial Opportunity Fund, Incentive Funding, and Small Loan Program activities support Goals 1, 2, 3, and 5 and Policies 11, 15, and 26 by encouraging and accelerating the timing of the construction of critical infrastructure deemed necessary for the expansion of existing businesses and establishment of new users. www.lelandconsulting.com 12 S Redmond US 97 Urban Renewal Area I Report on the Urban Renewal Plan CHAPTER 12 — TRANSPORTATION Goals 1. Reduce through traffic, congestion, and improve circulation along Highway 97, especially along the Sth and 6th Street couplet. 2. Enhance east/west circulation. 3. Identify roadway system needs to serve undeveloped areas so that steps can be taken to preserve rights -of - ways and maintain adequate traffic circulation. 4. Increase the use of alternative travel modes through improved safety and service Objectives: 11b. Improve intersection operations by adding left -turn phases, installing additional traffic signals, actuating and coordinating traffic signals, and/or increasing sight distance as needed. 2a. Develop a safe and efficient east -west arterial and collector system 2b. Enhance existing crossings and determine the best locations for additional crossings of Dry Canyon, Highway 97;; Pilot Butte Canal, and BNSFRR line to link east and west Redmond. 3a. Integrate new arterial and collector routes into the existing city grid system. 4a. Provide additional sidewalks and improve existing sidewalk pavement for pedestrian safety and access. 4b. Provide additional bicycle routes and plan regular maintenance of existing routes for bicycle safety and access (per Redmond Bicycle Master Plan). 4c. Provide pedestrian and bicycle access, especially when direct motor vehicle access is riot possible. Policies 3. The function of existing and planned roadways as identified in the Redmond Urban Area Transportation Plan shall be protected through the application of appropriate access control measures. 10. The City shall work to acquire and develop a trail system that utilizes Redmond's irrigation canal system. 16, Sidewalks shall be included on all new streets except limited access roads or where equivalent alternative pedestrian circulation is provided in the UGB. Retrofitting existing streets with sidewalks shall proceed on a prioritized schedule. 20. Wherever practical, access to the highway will be provided via frontage roads, alternative local roads, or other means, rather than direct access to the highway. 22. A non -traversable median should be installed on the highway when operational or safety issues warrant installation. Directional breaks in the median will be provided as needed to provide safe traffic operation. 24. Medians installed in the state highways should provide bicycle and pedestrian crossings at least every 1/4 mile. 34. The City shall improve east -west and north -south traffic patterns in the central part of the community. 38. Alleys shall be an option in new residential areas, providing rear access and backyard parking. www.lelandconsulting.com 13 S Redmond US 97 Urban Renewal Area I Report on the Urban Renewal Plan FINDINGS: Plan's Relationship to Chapter 12 — Transportation. • The Plan's transportation improvement projects support Goals 1 and 3, Objective 11b, and Policies 3, 22, 24 by improving safety, efficiency, and operations through access and median treatments, supporting the development of new connections and alternatives routes to serve existing and underserved areas, and reducing through traffic by encouraging other modes of transportation. • The Plan's US 97, local street, alley, and access improvement projects support Goals 1, 2, 3, and 4, Objectives 1b, 2a, 2b, and 3a, and Policies 20, 34, and 38 by enhancing crossings, improving intersection operations,' addressing access through new alleys and alternative routes, and implementing circulation improvements necessary for new development. • The Plan's canal improvement contribution, mixed -use path, US 97 median treatments, sidewalk improvements, and pedestrian infrastructure project activities support Goal 4, Objectives 2a, 4a, 4b, and 4c, and Policies,10, 16, and 24 by providing safer or alternative routes for pedestrians and bicyclists in the US 97 corridor and the surrounding streets, enhancing multimodal connections throughout the Area. • Additionally; transportation improvements may be a key component of several projects in the Plan, such as the Industrial Opportunity Fund, which is intended to support a wide range of investments and project activities that will leverage private development. CHAPTER 15 — LIVABILITY Goals The City of Redmond shall create and maintain livability. The City of Redmond shall guide development and support community identity and pride by implementing policies that improve livability and are innovative, creating a high quality of life, ample family -wage jobs, and a safe environment in which to raise and educate families. Policies e. Redmond shall plan for a variety of transportation choices. 9. Redmond shall plan for and promote attractive streetscapes free from clutter, confusion, and blight. 10. Redmond shall develop safe, reliable, and economical transportation choices to decrease household transportation costs, improve air quality, reduce gwenhorrsP gas emissions, and promote puhlic. health 11. The City of Redmond shall develop and maintain the environment that promotes and supports a strong, healthy, and diverse economic base. 12. Redmond shall promote economic competitiveness through sustainable choices for housing, transportation, education, cultural diversity and enrichment, and recreational opportunities as well as improve reliable and timely access to employment centers, educational opportunities, services, and other basic needs by workers. 13. Redmond shall help existing businesses within the City to grow and thrive. 14. Redmond shall help to create and foster new businesses of all types. 15. Redmond shall provide well planned and maintain high -quality infrastructure to provide a competitive advantage for business and community growth. www.lelandconsulting.com 14 S Redmond US 97 Urban Renewal Area ( Report on the Urban Renewal Plan FINDINGS: Plan's Relationship to Chapter 15 — Livability. • The Plan's transportation -related projects, such as US 97 improvements, local improvements, pedestrian connections, and other related projects, support Goal 1 and Policies 8, 9, 10,11, and 12 by providing pedestrian and bicycle infrastructure to encourage walking and cycling, improving streetscapes by addressing blighted conditions (such as lacking sidewalks) and funding beautification efforts, and planning for improved access to current and future employment centers. • The Plan's Industrial Opportunity Fund, Small Loan Program, and Incentive Funding project activities support Goal 1 and Policies 11, 12, 13, 14, and 1S by providing funding to existing and future businesses to grow and create new employment opportunities. • The Plan's public utility, power and gas, and communications projects support Goal 1 and Policies 12,13,15 by providing high -quality infrastructure as a catalyst for growth. B. Social and Economic Conditions 1. Property Values and Utilization The total assessed valuation for the City of Redmond for the 2019-20 tax year is $2.5 billion. The total assessed value of property within the Urban Renewal Area for the 2019-20 tax year is calculated at $142.5 million (commercial property is $104.8 million, residential property $12.8 million, industrial property $23.1 million, and municipal property $1.8 million). The overall value of improvements to land in the Renewal Area is quite low. Improvements represent approximately $130.2 million while land represents approximately $106.0 million in value,. This equates to an improvement to land value ratio of only 1.23. Mature urban areas are expected to exhibit improvement to value ratios in the 2:1 to 3:1 range. It was noted earlier that the Urban Renewal Area contained an exceptionally high percentage of land acreage either vacant or under -developed. The low level of utilization within the Area indicates it is far from reaching its potential in terms of generating jobs and tax base for the community. A survey of existing land use and physical conditions in the Area conducted in April of 2020 found that the Area has a significant supply of vacant and underutilized properties. These vacant properties undermine the vitality of the Area's employment districts and represent wasted opportunities to generate economic activity that would benefit the Area. Specifically, the survey identified 117 parcels as underutilized (46.2 percent of all parcels), totaling 1,181.5 acres (91.0 percent of total acreage). Table 7. Site Utilization Status Source. Deschutes County Assessor, Leland Consulting Group www.lelandconsulting.com 1s S Redmond US 97 Urban Renewal Area ( Report on the Urban Renewal Plan 2. Population and Housing In 2019, withjust around 500 residents, the Area contained 1.5 percent of the City's total population of 31,628 residents. Figure 3. Estimated Population, Urban Renewal Area & City of Redmond 35,000 31,628 30,000 26,216 25,000 20,000 —0—City of Redmond 15,000 16,439 Urban Renewal Area 10,000 5,000 337 452 486 0 2000 2010 2019 Source: ESRI As shown in the figure above, between 2000 and 2019, the Urban Renewal Area showed only a marginal population increase of nearly 150 residents. In contrast, during this same timeframe, the City's population increased significantly, adding over 15,000 residents as a result of growth and development in areas outside of the Renewal Area, In 2019, the City of Redmond comprised an estimated 11,873 housing units. Only 178 or 1.5 percent of these housing units are located in the Renewal Area. At 37 percent, the Area's homeownership rate is significantly lower than the citywide homeownership rate of 56 percent. Further, the Area has a lower percentage of vacant housing units (6.3 percent) relative to the City (9.2 percent). The recent Redmond I lousing Needs Analysis identified the following key findings for housing needs over the 2019-2039 twenty-year planning period: • Redmond's population is forecast to grow slower than in the past. • Redmond needs to plan for 6,963 new dwelling units. • Redmond needs to plan for more single-family attached and multifamily dwelling units. • RedrilUrld has a deficit of land (or single-family and rnultifarnily housing. • Redmond's development occurred at relatively low densities since 2008. • Redmond has a deficit of housing affordable to extremely low- and very low-income households. • Redmond has a deficit of housing affordable to low- and middle- income households. 3. Income Relative to the City, incomes in the Area are significantly lower. In 2019, the Area's median household income (MHI) was $30,973, more than $23,250 lower than the citywide MHI. 4. Employment The following figure shows jobs by industry in the Area and the City in 2019. Key findings, based on the 2008 employment data, are summarized below. • The Area employed 11 percent of citywide jobs in 2019. www.lelandconsulting.com 16 S Redmond US 97 Urban Renewal Area I Report on the Urban Renewal Plan • There are an estimated 1,692 jobs in the Area relative to 14,847 jobs in the City of Redmond. The majority of jobs in the Area are in the retail trade, with 451 jobs, as is the case citywide, with 3,041 jobs. Retail jobs in the Area comprise approximately 15 percent of the City's retail jobs. • Industrial jobs, which include the industries of manufacturing, wholesale trade, construction, and transportation and warehousing, comprise 755jobs in the Area of the 5,423 total jobs citywide (13.9 percent). • Office jobs —which include the industries of professional, scientific and technical services, information, management of companies and enterprises, finance and insurance, and real estate and rental and leasing —comprise just 194jobs in the Area of the 2,272 total jobs citywide (8.5 percent) • Accommodations and Food Service jobs in the Area comprise 16 percent of citywide Accommodations and Food Service jobs. Figure 4. Estimated 2019 Employment by Industry (NAICS) Public Administration Other Svcs., except Public Admin. Accommodation & Food Svcs. Arts, Entertainment, & Recreation Health Care & Social Assistance Educational Svcs Administrative & Support Svcs. Mgmt. of Companies & Enterprises Professional, Scientific & Tech Svcs. Real Estate & Rental & Leasing Finance & Insurance Information Transportation & Warehousing Retail Trade Wholesale Trade Manufacturing Construction Utilities Mining, Oil & Gas Extraction Agriculture, Forest, Fish, Hunt Source: ESRI * City of Redmond Urban Renewal Area 400 800 1,200 1,600 2,000 2,400 2,800 3,200 200. EXPECTED SERVICE AND POPULATION IMPACTS OF THE PLAN The Plan is expected to produce positive fiscal and service impacts for Redmond. The Plan activities are intended to eliminate current and prevent future blighting conditions in the Area. The Plan also supports activities intended to alleviate traffic, circulation, and safety problems, and upgrade streets, sidewalks, and building conditions in the Urban Renewal Area. www.lelandconsulting.com 17 S Redmond US 97 Urban Renewal Area I Report on the Urban Renewal Plan The Plan will utilize tax increment revenues. The investments made with tax increment funds from the Urban Renewal Area are expected to produce a more robust tax base from redevelopment and rehabilitation. Development opportunities that may arise as a direct result of these investments are described as follow. The US 97 Corridor Plan, which involved a significantly smaller study area within the greater Urban Renewal Area, identified a likely development program based on a range of development opportunities and likely real estate projects over the next 10 to 20 years. In 2019, it was determined that this development program would likely accommodate up to 300 units of new housing, almost 90,000 square feet of new employment space, two new hotels, and approximately 160,000 square feet of new retail services. The addition of the South Redmond Tract provides the opportunity for significantly more development activity and employment growth. While no new analysis was conducted fo.r this additional area within the Urban Renewal Area, the land is expected to accommodate up to three million square feet of new development. New jobs associated with this development will generate significant new state income tax revenues. The Plan supports this growth through numerous transportation and utility infrastructure project activities and programs aimed at incentivizing and catalyzing growth. Specific impacts of the Plan to the City and other taxing jurisdictions are as follows. City of Redmond. Demands for City policing will increase in the area as development occurs. Funding for these services will be limited to existing property taxes and additional lodging taxes (from new hotels in the Area), franchise fees; electric, natural gas, cable, water, sewer, stormwater and phone, from new development. The primary development anticipated is industrial, therefore, service demand for police services is anticipated to be limited. Revenue generated from franchise fees will offset a portion of these costs. Water and sewer service needs, as described in the Physical Conditions in Section 100 of this Report, are generally identified in the City's Capital Improvement Plan and would be funded either by system development charges associated with the new development or with the planned project activities of the Plan. Fire District. Demands for Fire and Rescue services will increase in the area as development occurs. Funding for these services during the duration of the urban renewal district will be limited to existing property tax revenue. The primary development anticipated is industrial, which will have considerable fire, life safety design standards and will likely be built to the most current building code and equipped with modern fire prevention and public safety features, reducing service demand for fire and rescue services. Revenue generated from existing property taxes is not anticipated to be adequate to pay for services provided during the duration of the urban renewal district. However, currently, there are many vacant and underutilized properties in the Area which contribute disproportionately to demand for fire and police services. Since the Plan has project activities intended to encourage reinvestment in these blighted properties, it is expected that the Plan would reduce service demand associated with nuisance properties. The Plan also supports the redevelopment and rehabilitation of older properties, which will bring them up to modern building, safety, and fire codes and is therefore expected to reduce the demand for fire services. County and County Service Districts. Demands for County services, including but not limited to Sheriff, Library, County Clerk, District Attorney, and Assessor, are anticipated to increase marginally as development within the urban renewal area as new development is anticipated to be industrially driven with limited housing. Local public safety services are provided by the City police department. District Attorney and related court services will have limited impacts resulting from the new development. The Clerk is anticipated to generate www.lelandconsulting.com 7s S Redmond US 97 Urban Renewal Area I Report on the Urban Renewal Plan revenue from fees related to recoding and other development services to offset costs, and the Assessor will have impacts resulting from new development. Existing property tax revenue from the urban renewal area will offset a portion of costs during the duration of the urban renewal district, with revenue received subsequently considerably greater than the cost of delivering services within the area. Parks District. Due to the anticipated nature of development within the urban renewal area, demands for park facilities are anticipated to be limited. Revenue from existing property taxes is anticipated to offset the cost of providing these services to residents within the service area. Redmond School District. Due to the anticipated nature of development within the Urban Renewal Area, demands for school facilities and operations are anticipated to be limited. State school funding is provided on a per student basis, therefore, any deficiency in local property tax funding is offset by the State school funding formula. Upon the expiration of the urban renewal district, significant local funding will be forthcoming for schools, however, the amount of additional local funding received will be offset with reductions by the State to achieve equitable per student funding across the State. Central Oregon Community College. Due to the anticipated nature of development within the urban renewal area, demands for higher education facilities and operations are anticipated to be limited. Property tax funding from the urban renewal area will be limited to existing property taxes until the urban renewal district is closed. Education Service District. Due to the anticipated nature of development within the urban renewal area, demands for pre -kindergarten through high school education facilities and operations are anticipated to be limited. Property tax funding from the urban renewal area will be limited to existing property taxes until the urban renewal district is closed. Note: Should residential development demand be greater than presently anticipated, impacts on local government services could be significantly different than what is described above. 300. REASONS FOR SELECTING THE URBAN RENEWAL PLAN The Urban Renewal Plan Area was selected based on Redmond Comprehensive Plan goals, objectives, and policies, and on the existence of blighting conditions within the Area. The blight is evidenced by the lack of proper utilization of land planned for commercial, industrial, residential, and public purposes, traffic and pedestrian conflicts and deficiencies, poor visual and aesthetic conditions, substandard building conditions, the prevalence of low values and lack of investment in the project area, and reduced tax receipts resulting therefrom. Conditions exist within the Urban Renewal Area which meet the definitions of blight in ORS 457.010. These conditions are described in the previous section, and are summarized below: • The Area contains a high percentage of parcels of vacant and undeveloped or underdeveloped land. The Area lacks adequate multimodal access, circulation, and connectivity. In particular, east -west connections are highly limited. The Area lacks adequate sidewalks with 62 percent of parcels with incomplete or missing sidewalks. The Area lacks safe bicycle routes connecting key destinations. Much of the Area has a poor aesthetic appearance. Landscaping and streetscapes are inconsistent and, in some locations, inadequate or lacking. Overhead utilities contribute to visual clutter and help produce an environment not conducive to new investment in the area. o The highway commercial properties lack alternative access to improve ingress and egress. www.lelandconsulting.com 19 S Redmond US 97 Urban Renewal Area I Report on the Urban Renewal Plan 400. RELATIONSHIP BETWEEN EACH PROJECT ACTIVITY AND EXISTING CONDITIONS The projects in Section 700 of the Plan were identified to specifically address the presence of physical, economic, and other conditions of blight present in the Area. The relationship between these projects and these conditions is described below. A. US 97 Improvements Description: This project activity will provide funding to carry out the highway -related improvements from the City of Redmond's US 97 Corridor Plan, including road construction, median and access treatments, pedestrian and bicycle facilities, traffic signal systems, and gateway treatments. Relationship to Existing Conditions: An efficient and well -planned highway is a critical component of a successful employment district. Under existing conditions, US 97 is inefficient, not aesthetically pleasing, and unsafe, with crashes predicted to increase significantly by 2040. Pedestrian and bicycle connections are also missing or highly limited. Proposed medians, signals, and access treatments will improve safety in the US 97 Corridor by reducing the frequency and severity of crashes, These projects are also critical to improving the aesthetics of the corridor, providing opportunities for business and community interaction, maintaining freight operations, and improving efficiency. Bicycle and pedestrian improvements, and the preservation of Highway 97 access, are necessary to support commercial, industrial, and medical -related employment —particularly in the northern portion of the Area. Improvements that improve traffic circulation, such as the signalization of key intersections will also strengthen the Area's capacity to attract private investment. B. Local Transportation Projects Description: Local transportation projects include connection roads (including east -west collectors, distributors, and local streets), connections to and construction of a new shared -use path, new access roads or alleyways, pedestrian and bicycle facilities, and other new streets as needed to attract or support private investment. Relationship to Existing Conditions: Under existing conditions, many parts of the Area, particularly commercial and industrial zoned areas to the north,have poor multimodal access and connectivity. There are few alternatives to US 97, unnecessarily increasing local trips on the highway. These transportation projects are intended to provide a transportation network in the Area that supports the efficient movement of traffic, reduces traffic volumes on US 97 by providing alternative routes and promoting other transportation modes, and supports a vibrant business district.The projects are also critical to realizing currently untapped development and employment potential. C. Public Utilities (Water, Stormwater, and Sewer Improvements) Description: Public utility projects include the development of sewer, stormwater, and water infrastructure to accommodate future development, particularly for the LLI area. Projects also include the construction of new www.lelandcc)nsulting.com 20 S Redmond US 97 Urban Renewal Area ( Report on the Urban Renewal Plan stormwater facilities, repair of existing sewer lines, and extension or enlargement of existing water and sewer lines as needed to support the expansion of existing businesses or new development. • Water, Wastewater, and Stormwater systems will need to be constructed for the area to develop. The City's master plans anticipate these improvements. Funding for these improvements is generally provided by system development charges and utility rates. • The schedule includes $22.5 million of funding to assist developers with the cost of these facilities (Industrial opportunity Fund, Incentive Funding) Relationship to Existing Conditions: The projects are intended to address infrastructure deficiencies in the Area. The lack of costly utility infrastructure within the urban renewal area is a significant barrier to development. The program funding channels noted above provide financial assistance to facilitate timely and orderly completion of utility infrastructure to support development within the urban renewal area. While most, if not all, of these projects, may currently be planned by the City, accelerating the timeline of their implementation may be required to serve new development in the Area. As such, additional money, funded through tax increment financing, is available for these projects as needed. Note that the funding for City utilities and infrastructure and other utilities could be structured in a variety of ways. Total funding allocated to assist developers and the utilities with completion of the required improvements to serve the Area is $22.5 million. D. Fire Station Description: A fire station will be needed in the S/SE part of Redmond to reduce response times and serve new and existing commercial and residential users. As the area develops, lower response times are necessary, especially for users with a higher risk of fire and other hazards. • Funding of $4.5 million is included for this project Relationship to Existing Conditions: The project addresses the present lack of fire and rescue facilities and operations within proximity of the anticipated development within the urban renewal area. Note: If public building(s) are included in the Urban Renewal Plan, a legislative change in 2077 requires the concurrence of three of four taxing districts that are estimated to forego the most property tax revenue (The City, County, School District, and Fire District). Concurrence requires a vote of the governing body of each of the four taxing districts. Failure of a governing body to take action (resolution) within 45 days of notice is considered concurrence. E. Industrial Opportunity Fund Description: This project activity includes a fund for public investments to prepare readily -available industrial lands and support large-scale industrial development in the Area. Assistance could take the form of gap financing (low or no interest loans), infrastructure (roads, sidewalks, utilities), and other tools. • Funding of $12.5 million is included for this project Relationship to Existing Conditions: The project addresses the presence of vacant and underutilized land in the area and supports Comprehensive Plan goals related to job creation, business development, and the diversification of Redmond's economy. www.lelandconsulting.com 21 S Redmond US 97 Urban Renewal Area I Report on the Urban Renewal Plan F. Small Loan Program Description: This program offers financial support to assist existing businesses within the urban renewal area through challenging economic conditions created by events beyond the control of the business. $2.0 million is allocated towards this program. Funding for this program is consistent with tax increment financing requirements as described in ORS 457.170(2) and 457.180. A resolution adopted by the City Council may be appropriate to set forth the economic conditions and other criteria for this prograrn. Relationship to Existing Conditions: While the number of vacant buildings is currently low, challenging economic conditions may cause additional vacancies or a rise in dilapidated sites and building conditions. This program will support jab retention and creation, and retention of property values within the urban renewal area. G. Incentive Funding Description: This activity creates funding to allow the Urban Renewal Agency to stimulate redevelopment in the Area by partnering with private property owners, repositioning property for redevelopment, and other activities. As part of the City of Redmond's effort to enhance business vitality and support desired development within the South Redmond US 97 Urban Renewal Area, Incentive Funding is aimed at incentivizing property owners and developers to rehabilitate or redevelop property that will better serve the City's goals for the Area and the greater Redmond community. Assistance could take the form of direct developer assistance, grants, reimbursements, and or system development charge (SDC) credits for contributions to the transportation and utility system. Funding of $10.0 million is included for this project Relationship to Existing Conditions: The corridor's existing site and building conditions require significant improvements. Existing property and business owners do not currently have the incentives to make the necessary improvements to their sites or building that would result in increased taxable property values, corridor aesthetics, or other economic development -related outcomes. The Incentive Funding program will support the redevelopment or rehabilitation of vacant and undeveloped or underdeveloped properties in the Area, which in turn will supportjob creation and the mitigation of existing transportation conditions that are a barrier to development today. H. Natural Gas/Power Improvements Description: The City may provide funding to accelerate the timing or upgrade the capacity of natural gas or power infrastructure, especially for underserved locations such as the LLI area. The schedule includes $22.5 million of funding to assist developers with the cost of these facilities (Industrial Opportunity Fund, Incentive Funding) Relationship to Existing Conditions: The lack of costly utility infrastructure within the urban renewal area is a significant barrier to development. The program funding channels noted above provide financial assistance to facilitate timely and orderly completion of utility infrastructure to support development within the urban renewal area. Investments in both gas and electricity are critical to accommodate a range of uses, including but not limited to industrial manufacturers and other significant employment -generating users. www.lelandconsulting.com 22 S Redmond US 97 Urban Renewal Area ( Report on the Urban Renewal Plan I. Communications Improvements Description: Communications Improvements include telephone and high-speed internet infrastructure. While the City is not responsible for the cost of communications upgrades and improvements, this project activity provides seed funding to accelerate the timing of specific improvements to attract desired users. e The schedule includes $22.5 million of funding to assist developers with the cost of these facilities (Industrial Opportunity Fund, Incentive Funding) Relationship to Existing Conditions: Broadband and other communications improvements are important for economic growth and business vitality. Broadband is the underpinning for some of today's most important transformations in business activity and government services. Much of the Area is currently lacking telecommunications infrastructure, posing a significant barrier to attracting desired users to the Area. J. Canal Improvement Contribution Description: This project activity includes funding to help the Central Oregon Irrigation District (COID) pipe at least 1.0 mile of the canal to accommodate new road construction and a multi -use path along the canal. • Funding of $4.0 million is included for this project Relationship to Existing Conditions: New east -west transportation connections identified in Section 700(B) requires the piping of the canal to mitigate project costs. Bridging the canal would add significant costs to these new connections. Urban Renewal funding made available through this project activity is therefore critical to providing gap financing to accelerate the timing of the piping project and other related transportation projects. 500. FINANCIAL ANALYSIS OF PLAN A. Estimated Project Cost and Revenue Sources The table below shows the estimated total costs of the various projects and programs associated with the Redmond S Highway 97 Urban Renewal Area. From the inception of the Plan in fiscal year 2020-21 until its anticipated termination in fiscal year 2044-45, total costs for additional project activities, exclusive of debt service, are estimated at $84.2 million in inflation -adjusted dollars, or $68,269,000 in 2020 dollars. An additional $1.3 million is anticipated for debt issuance related costs. Therefore, the total inflation -adjusted costs for projects, programs, administration, and debt issuance costs to complete the Plan, requires a maximum indebtedness of $85,458,900. www.lelandconsulting.com 23 S Redmond US 97 Urban Renewal Area I Report on the Urban Renewal Plan Table 8. Urban Renewal Projects and Program Funding Renewal Project.. Description Funding Highway 97 Projects $24,018,000 Dates 2024-2032 FLItUre EstimatedUrban Cost $27,892,200 Local transportation projects $5,328,000 2025-2040 $6,782,100 Fire station $4,500,000 2030-2035 $5,709,200 Industrial opportunity fund $12,500,000 2023-2042 $16,325,500 Small loan program $2,000,000 2022-2042 $2,527,800 Incentive funding $10,000,000 2023-2042 $12,820,100 Canal improvement contribution $4,000,000 2026-2032 $4,736,000 Program administration $5,923,000 2022-2045 $7,405,500 Total Urbari Renewal Project Funding $68,269,000 $84,198,400 Source: LCG and GEL Oregon The principal method of funding the project share of costs will be through the use of tax increment financing as authorized by ORS 457. In addition, the Agency will apply for, and make use of funding from other federal, state, local, or private sources as such funds become available. Tax increment financing is based upon the premise that new taxes generated by the improvements implemented by the urban renewal district pay for the projects. The tax increment is the difference in property taxes generated by the increase in assessed value in the Area over the original frozen base value when the renewal area was first established. Note — urban renewal does not increase the taxes that property owners within the Urban Renewal Area pay, nor does it impact existing tax collections by overlapping taxing districts. It merely redirects any future taxes over the amount that the property owner was paying when the district was established to the Urban Renewal Agency to help pay for projects in the Renewal Area. Without urban renewal, the projects in the Plan may not be implemented due to a lack of funding. B. Anticipated Start and Finish Dates of Project Activities The following table shows the anticipated start and finish dates for each project and prograrn activity. Project activities are anticipated to begin in fiscal year 2021-22, and it is estimated that all activities proposed in this plan will be completed by fiscal year 2041-42. At that time, it is estimated that there will be sufficient funds to complete all programmed project activities. Sufficient funds to retire all debt obligations is anticipated in fiscal year 2044-45. An annual schedule of anticipated start and finish dates is provided in Appendix B. Many project activities will be partially funded with outside sources or will involve outside investment. As a result, the anticipated urban renewal spending will be significantly exceeded by additional investment tied directly to the urban renewal projects. www.lelar)dconsulting.com 24 S Redmond US 97 Urban Renewal Area I Report on the Urban Renewal Plan Table 9. Project Activities Start and Finish Dates and Funding Sources Project Description US 97 South Redmond Corridor Plan Amount $50,266,700 Dates Fun ing US 97 Highway improvements $26,248,700 2024-2032 ODOT Pedestrian and non -street improvements 13,143,000 2025-2033 TIF SW Volcano Avenue improvements 3,378,000 2025-2033 TIF SW Umatilla Avenue improvements 1,030,000 2025-2033 TIF "Reimon" Avenue improvements 2,925,000 2025-2033 TIF SW Quartz Avenue improvements 2,901,000 2025-2033 TIF Pumice Roundabout improvements 641,000 2025-2033 TIF Other Local Transportation Projects $5,328,000 Commercial Alley Improvements $1,308,000 2025-2033 TIF COID Canal Shared -Use Path Improvements 4,020,000 2030-2040 TIF Public Buildings Fire Station 6,000,000 2030-2035 TIF ($4,500,000) Fire & Rescue District Other Public Facilities Canal improvement contribution 4,000,000 2026-2032 TIF/COID Local Public Utility Projects $16,320,000 E1 - New Reservoir at Reservoir Dr $5,000,000 2021 City/TIF E2 - New Booster Station & Well at Reservoir Dr 7,000,000 2021 City/TIF E3 - 43rd St Water Line Improvements 999,000 2020 City/TIF E4 - SW Canal Water Line Improvements 380,000 2020 City/TIF E5 - SW 19th St Water Line Improvements 265,000 2022 City/TIF E7 - SW Deerhound Water Line Improvements 335,000 2022 City/TIF East Hwy 97 Waterline Improvements 1,200,000 2026 City/TIF West Hwy 97 Waterline Improvements 800,000 2028 City/TIF Hwy 97 Sewer Improvements 1 341,000 2026 1 City/TIF Developer Projects $34,545,000 Large Lot Industrial - North public infrastructure $13,291,000 2030 Dev/TIF Large Lot Industrial - South public infrastructure 13,779,000 2040 Dev/TIF CNG - Airport Way Main Extension 475,000 2030 Dev/TIF Natural gas/electricity improvements 4,000,000 2022-2041 Dev/TlF Communications improvements 1,000,000 2022-2041 Dev/TlF 700 gpm Lift Station and Force main 2,000,000 2030 Dev/TlF Total Infrastructure Projects $116,459,700 Source: LCG, HDR, and GEL Oregon www.lelandconsulting.com 25 S Redmond US 97 Urban Renewal Area I Report on the Urban Renewal Plan C. Estimated Expenditures and Year of Debt Retirement It is estimated that the development activities within the Urban Renewal Area will produce approximately $110.4 million in tax increment revenue between fiscal years 2021-22 and 2044-45. These funds, along with other resources, will be utilized to finance project activities and pay all debt service costs associated with undertaking these project activities. It is anticipated that available tax increment revenues and funds accumulated in a dedicated debt service fund for debt redemption will be sufficient to. retire all outstanding bonded indebtedness in fiscal year 2045-46, and at that time terminate the tax increment financing provisions of the Agency. The following table provides a schedule of District revenue and expenditures, exclusive of debt proceeds, and principal repayment. A detailed schedule of sources and uses is provided in Appendix C. Table 10. Schedule of Project and Program Related Expenditures (amounts in thousands) Fiscal Year Ending June 30 2022 Total A.ministration :Capital Outlay • Expenditures 204 - 204 2023 208 104 20 332 2024 212 1,167 20 1,400 2025 333 4,440 80 4,854 2026 369 4,921 80 5,371 2027 433 5,771 110 6,313 2028 441 5,886 110 6,437 2029 450 6,004 120 6,574 2030 459 6,124 120 6,703 2031 551 7,343 150 8,044 2032 2033 562 224 7,490 2,987 150 70 8,202 3,281 2034 266 3,SS0 60 3,876 2035 272 3,621 70 3,962 2036 236 2,482 30 2,747 2037 240 2,532 30 2,802 2038 24S 2,582 20 20 2,847 2,904 2039 250 2,634 2040 255 2,687 2,941 2041 260 2,212 2,472 2042 265 2,257 2,522 2043 271 - 271 2044 276 - 276 2045 124 - - 124 Totals 7,406 76,793 1,260 85,459 Source: GEL Oregon Includes bond issuance expenses www.lelandconsulting.com 26 S Redmond US 97 Urban Renewal Area I Report on the Urban Renewal Plan Table 11. Schedule of Tax Increment Revenue and interest earnings (amounts in thousands) Fiscal Year Ending 30 Property 2022 249 - Total Current 249 2023 623 - 623 2024 942 6 948 202S 1,210 9 1,219 2026 1,489 10 1,499 2027 1,769 10 11'779 2028 2,067 10 21077 2029 2,387 9 2,396 2030 2,729 8 2,737 2031 3,097 9 3,106 2032 3,493 8 3501 2033 3,917 7 3,924 2034 4,373 12 41385 2035 4,863 10 4,873 2036 5,389 14 5,403 2037 5,954 17 5,971 2038 6,560 21 6,581 2039 7,211 27 7,238 2040 7,911 33 7,944 2041 8,398 40 8,438 2042 8,626 44 8,670 2043 8,859 73 8,932 2044 9,098 119 9,217 2045 9,347 168 9,515 Total 110,562 664 111,226 2022 249 - 249 Source: GEL Oregon D. Impacts of Tax Increment Financing 1. Estimated Financial Effect of Local Governments Estimated Financial The net fiscal impacts to local governmentjurisdictions shown in the table below represent the total amount of property taxes estimated to be redirected, or foregone, from within the boundaries of Redmond. The word "redirected" or 'foregone" must be used in context, for those revenues will not be lost to the Redmond community, but will instead be dedicated to capital improvements or public improvements within the Area. To the extent that the Urban Renewal Area increases in assessed value over what would otherwise have occurred without urban renewal investment, the overlapping taxing districts will see an increase in tax revenue in the long-term. The following tables show the estimated foregone real property taxes during the life of the urban renewal district with an urban renewal district and without a district. Additionally, the forecast annual property taxes in fiscal year 2045-46 (the year after the district is projected to close) are shown, the payback in years for the foregone property taxes if no urban renewal district were created and the return on investment (ROI) (year by www.lelandconsulting.com 27 S Redmond US 97 Urban Renewal Area I Report on the Urban Renewal Plan year foregone property taxes information is provided in the appendix for both no urban renewal district and with an urban renewal district). Table 12. Forecast Foregone Taxes — Governments (Fiscal years 2022-2045) Source: GEL Oregon Table 13. Forecast taxes — Fiscal Year 2045-46 Government; payback of foregone taxes and return on investment (ROI) Source: GEL Oregon 2. Forecast Revenue Sharing by Taxing Jurisdiction Revenue sharing is part of the 2009 legislative changes to the statutes that govern urban renewal. At thresholds defined in Oregon Revised Statute 457.470, the impacted taxing jurisdictions will receive a share of the increased tax revenue due to incremental growth in the area. ORS 457.470 (2)(b) identifies the first revenue - sharing threshold, which provides that beginning with the later of the 111h year after the initial approval of the plan or the year in which the maximum division of taxes equals or exceeds ten (10) percent of the initial maximum indebtedness in the plan (10% of $85,458,900, or $8,545,890), the Urban Renewal Agency shall notify the County Assessor to compute the division of taxes for the urban renewal area using the assessed value that is not greater than the sum of: A. The arnount of assessed value (AV) the Urban Renewal Agency estimates will produce division of tax revenues equal to 10 percent of the initial maximum indebtedness ($8,545,890) in the Plan, and 13. 25 percent of the amount by which the assumed increment exceeds the AV of the increment the Urban Renewal Agency estimates will produce division of tax revenue equal to 10 percent of the initial maximum indebtedness in the Plan. www.lelandconsulting.com 28 S Redmond US 97 Urban Renewal Area I Report on the Urban Renewal Plan The second revenue sharing threshold, identified in ORS 457.470(2)(c), provides that, beginning with the first year after the year in which division of taxes equals or exceeds 12.5 percent of the initial maximum indebtedness in the Plan (12.5% of $85,458,900, or $10,682,363), the Urban Renewal Agency shall notify the County Assessor pursuant to ORS 457.440 (computation of amounts to be raised from property taxes) (2)(d) to compute the division of taxes for the urban renewal area using an amount of assessed value that the agency estimates will produce division of tax revenues that do not exceed 12.5 percent of the initial maximum indebtedness in the plan ($10,682,363). Based on the above limitations, the Agency is expected to be limited in its division of tax collections beginning in fiscal year 2041, continuing through fiscal year 2045, when the Agency is anticipated to have sufficient resources to pay all outstanding debt and close the district. Table 14. Forecast Revenue Sharing — Government Source: GEL Oregon Table 15. Forecast Revenue Sharing — Education Source: GEL Oregon www.lelandconsulting.com 29 S Redmond US 97 Urban Renewal Area I Report on the Urban Renewal Plan 3. Estimated Financial Effect on Schools Financial impacts on Redmond School District #2J are offset by the State school funding allocation, which provides funding on a per enrolled student basis. As a result, urban renewal will not result in lost revenue to the Redmond School District. From a more global perspective, the State receives a majority of its general fund revenue which is used for school support from personal income taxes. The anticipated development and resulting jobs created in the Urban Renewal Area will create additional personal income tax paid to the State providing an offset and likely a surplus to the amount of property taxes that are redirected. Central Oregon Community College and the High Desert ESD are not subject to the school funding formula and will realize reduced revenue. The following tables show the estimated foregone real property taxes during the life of the urban renewal district with an urban renewal district and without a district. Additionally, the forecast annual property taxes in fiscal year 2045-46 (the year after the district is projected to close) are shown, the payback`in years for the foregone property taxes if no urban renewal district were created and the return on investment (ROI) (year by year foregone property taxes information is provided in the appendix for both no urban renewal district and with an urban renewal district). Table 16. Foregone Taxes — Education (Fiscal years 2022-2045) Source: GEL Oregon, Inc. Table 17. Forecast taxes — Fiscal Year 2045-46; payback of foregone taxes and return on investment (ROI) Source: GEL Oregon, Inc. www.lelandconsulting.com 30 S Redmond US 97 Urban Renewal Area I Report on the Urban Renewal Plan 4. Effect on Bond Rates Financial The forecast amount of debt proceeds, approximately $63.0 million, issued over a period of approximately 17 years (fiscal years 2023-2039), secured by tax increment revenue, and the City's full faith and credit are forecast to have no less than a 1.13 debt coverage ratio (DCR). The DCR is projected to be greater than 1.25 in all but five fiscal years (FY 2031-2035). Debt issues are assumed to have terms of 20 years, with an interest rate of three and one-half percent (3.50%). The maximum outstanding debt balance during the life of the district is forecast at $44.6 million in fiscal year 2035. Due to the conservative nature of the debt coverage, excess value of real market value to assessed value within the district, among other factors the debt associated with the district is not anticipated to have a material effect on interest rates of bonds issued by the City. As development occurs within the Urban Renewal Area and property values increase, the total property valuation for Redmond is anticipated to provide benefits to the City for general obligation debt and or other debt issued by the City. 5. Feasibility of Plan A feasibility study was completed in May 2020 that found the creation of the district was feasible with respect to ORS requirements for an urban renewal district. The feasibility report is attached in Appendix F. This report updates the financial forecasting for projects and programs, their timing, the use of debt, and repayment of debt. Additionally, comprehensive financial proformas for the Agency's implementation and execution of the plan is prepared that demonstrate the financial feasibility of the Plan. Factors beyond the Agency's control could negatively impact the Agency's ability to complete the plan as projected. These may include but are not limited to lesser development than projected, increased borrowing costs, inflationary impacts on project costs, and delays with project implementation due to a variety of factors. If these conditions were to occur and were to be material, the Agency could adjust project and program scope and timing in order to maintain financial feasibility. 600. RELOCATION A. Properties Requiring Relocation At the time of this report, no specific properties associated with potential project activities have been identified as requiring relocation of businesses, households, or buildings. In addition, no housing units have been identified for destruction or alternation. As a result, no relocation surveys have been conducted at this time. The Plan contemplates the acquisition of right-of-way for various transportation improvements, however, there are no relocations anticipated to be associated with this project activity. B. Relocation Methods In the event of any future activity involving relocation, the Renewal Agency will explore the possibility of physically moving buildings and other improvements and will discuss with potentially impacted parties' other possible means of assisting with replacement housing if applicable. Prior to any actual relocation, 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, and other payment as deemed necessary. www.lelandconsulting.com 31 S Redmond US 97 Urban Renewal Area I Report on the Urban Renewal Plan 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 regulations. Relocation payments will be made as provided in ORS 281.060, www.lelandconsulting.com 32 S Redmond US 97 Urban Renewal Area I Report on the Urban Renewal Plan APPENDIX A: REVENUE ASSUMPTIONS FOR THE URBAN RENEWAL AREA A. New Values Added in Area The following specific developments are under construction at the time of writing this report: • Two hotels, totaling 207 units, • A commercial retail pad, and • An apartment complex consisting of 116 units. The following incremental real market values, as work is completed, are projected by fiscal year 2022-23. Table 18. New, Developments Source: GEL Oregon The taxable assessed value (TAV) to real market value ratio of 60.3% is used to estimate the TAV created by these developments. Additionally, annual increases in TAV of existing properties are assumed to be 2.9%, slightly below the maximum property by property maximum of 3.0% annually. Lastly, growth from new development is assumed to increase TAV for the area by 1.0% annually, in addition to the project -specific development noted above, during fiscal years 2021-2023, and 4.5% annually thereafter. The increases noted above are categorized into commercial and residential. Presently, the assessed valuation of property in the area (FY 2020-21) consists of the following types of development: Table 19. Assessed Value by Use Source: GEL Oregon The forecasts assume that future development will be similar proportionately to existing conditions. B. Frozen Base The "frozen base" assessed value of the district, with timely adoption of the Plan subsequent to August 2020, is estimated to be $148,072,000. This amount is the estimated total assessed value for fiscal year 2021, based on estimated values as of January 1, 2020 within the urban renewal area. This estimate reflects the current existing assessed value increased by 2.9%, plus 1.0% new assessed value due to development within the area during the calendar year 2019. www.lelandconsulting.com 33 S Redmond US 97 Urban Renewal Area I Report on the Urban Renewal Plan C. Tax Rates of Overlapping Taxing Jurisdictions Table 20. Tax Rates Taxing Districts City of Redmond Operating Tax Rate 4.4101 Local Option Rate - Bonded Debt Rate Total 4.4101 % of Total Levy Rate 28.43% Deschutes County 1.2183 - 1.2183 7.85% County Library 0.5500 - 0.5500 3.55% Countywide Law Enforcement 1.0800 - 1.0800 6.96% County Extension - 4H 0.0224 - - 0.0224 0.14% 9-1-1 0.3618 - 0.3618 2.33% Redmond Fire & Rescue 1.7542 - 1.7542 11.31% Redmond Park & Recreation 0.3717 - 0.3717 2.40% Total General Government 9.7685 - 9.7685 62.98% Central Oregon Community College 0.6204 0.6204 4.00% High Desert ESD 0.0964 0.0964 0.62% Redmond School District #2J 5.0251 5.0251 32.40% Total Education 5.7419 - 5.7419 37.02% Total 15.5104 - 15.5104 100.00% Source: GEL Oregon www.lelandconsulting.com 34 S Redmond US 97 Urban Renewal Area I Report on the Urban Renewal Plan APPENDIX B: SCHEDULE OF PROJECTIONS AND PROGRAMS Table 21. Schedule of Projections and Programs: 2022-2025 Project Pro ram Administration Start Year 2022 End Year 2044 Total Inflation Adjusted $ $7,405,500 2022 $204,000 2023 $208,100 2024 $212,200 2025 $313,100 US 97 Projects 2024 2032 27,892,200 0 0 0 3,249,700 Fire Station 2,030 2035 5,709,200 0 0 0 0 Local transportation projects 2025 2040 6,782,100 0 0 0 0 Industrial Opportunity Fund 2023 2042 16,325,500 0 0 530,600 541,200 Incentive Funding 2023 2042 12,820,100 0 0 530,600 541,200 Small Loan Program 2022 2042 2,527,800 0 104,000 106,100 108,200 Canal Improvement Cont's. 2026 2032 4,736,000 0 0 0 0 $84,198,400 $204,000 $312,100 $1,379,500 $4,773,400 Schedule: 2026-2030 Program Administration Start 2022 End 2044 $369,100 $432,800 $441,400 $450,300 $459,300 US 97 Projects 2024 2032 3,314,700 3,381,000 3,448,600 3,517,600 3,588,000 Fire Station 2030 2035 0 0 0 0 0 Local transportation projects 2025 2040 392,200 400,000 408,000 416,200 424,500 Industrial Opportunity. Fund 2023 2042 552,000 563,100 574,300 585,800 597,500 Incentive Fundin 2023 2042 552,000 563,100 574,300 585,800 597,500 Small Loan Program 2022 2042 110,400 112,600 114,900 117,200 119,500 Canal Improvement Cont's. 2026 2032 0 750,800 765,800 781,100 796,100 $5,290,400 $6,203,400 $6,327,300 $6,454,000 1 $6,583,000 www.lelandconsulting.com 35 S Redmond US 97 Urban Renewal Area I Report on the Urban Renewal Plan Schedule: 2031-2035 Project Program Administration Start Year 2022 End Year 2044 2031 $550,700 2032 $561,800 2033 $224,000 2034i $266,200 $271,500 US 97 Projects 2025 2033 3,659,700 3,732,900 0 0 0 Fire Station 2030 2035 1,097,100 1,119,000 1,141,400 1,164,200 1,187,500 Local transportation projects 2025 2040 433,000 441,600 450,500 459,500 468,700 Industrial Opportunity Fund 2022 2041 609,500 621,700 634,100 1,078,000 1,099,600 Incentive Funding 2022 2041 609,500 621,70 634,100 718,700 733,000 Small Loan Program 2022 2042 121,900 124,300 126,800 129,400 131,900 Canal Improvement Cont's. 2025 2033 812,700 828,900 0 0 0 $7,894,100 $8,051,900 $3,210,900 $3,816,000 $3,892,200 Schedule: 2036-2040 Project Program Administration Start Year 2022 End Year 2044 2036 $235,500 2037 $240,200 20 $245,000 0 $249,900 040 $254,900 US 97 Projects 2025 2033 0 0 0 0 0 Fire Station 2030 2035 0 0 0 0 0 Local transportation projects 2025 2040 478,100 487,600 497,400 507,300 517,500 Industrial Opportunity Fund 2022 2041 1 1,121,600 1,144,000 1,166,900 1,190,200 1,214,000 Incentive Funding 2022 2041 747,700 762,700 777,900 793,500 809,300 Small Loan Program 2022 2042 134,600 137,300 140,000 142,800 145,700 Canal Improvement Cont's. 2025 2033 0 0 0 0 0 $2,717,500 $2,771,800 $2,827,200 $2,883,700 $2,941,400 Schedule: 2041-2044 Project Program Administration Start Year 2022 End Year 2044 2041 $260,000 2042 $265,200 2043 $270,500 2044 $276,000 2045 $123,800 US 97 Projects 2025 2033 0 0 0 0 0 Fire Station 2030 2035 0 0 0 0 0 Local transportation projects 2025 2040 0 0 0 0 0 Industrial Opportunity Fund 2022 2041 1,238,300 1,263,100 0 0 0 Incentive Funding 2022 2041 825,500 842,000 0 0 0 Small Loan Program 2022 2042 148,600 151,600 0 0 0 Canal Improvement Cont's. 2025 2033 0 0 0 0 0 $2,472,400 $2,521,900 $270,500 1 $276,000 $123,800 Source: GEL Oregon www.lelandconsulting.com 36 S Redmond US 97 Urban Renewal Area I Report on the Urban Renewal Plan APPENDIX C: DETAILED SOURCES AND USES SCHEDULE The following sources and uses schedule show the various sources totaling $196.7 million, including $110.6 million in tax increment property tax income, to fund the various projects, programs, administration, and debt repayment to execute the Plan. Following the sources and uses schedule are the year -by -year forecast fund activity for the District's general fund (capital projects fund) and debt service fund. Table 22. Sources and Uses Schedule (amounts in thousands) Sources Property taxes $ 110,562 Interest earnings 802 Debt proceeds - long-term 63,000 Debt proceeds - overnight 22,325 Total sources :J $ 196,689 Projects and programs $ 76,793 Debt principal - long-term 63,000 Debt principal - overnight 22,325 Debt interest 22,520 Administration 7,406 Debt issuance costs 1,260 Ending balance 3,385 Total uses $ 196,689 Source: GEL Oregon www.lelandconsulting.com 37 S Redmond US 97 Urban Renewal Area I Report on the Urban Renewal Plan General Fund: The general fund accounts for debt proceeds, including overnight borrowing (du jour), interest, and other resources to fund the urban renewal projects, programs, administration, and debt issuance costs. Table 23. General Fund (amounts in thousands) 2021 - - 0 2022 - 225 225 225 204 204 21 21 2023 0 1,000 - 1,000 1,021 208 '104 20 332 668 21 689 2024 7 1,000 600 1,607 2,296 212 1,167 20 1,400 207 689 897 2025 9 4,000 800 4,809 5,706 333 4,440 80 4,854 (45) 897 852 2026 9 4,000 900 4,909 5,761 369 4,921 80 5,371 (462) 852 390 2027 4 5,500 900 6,404 6,794 433 5,771 110 6,313 90 390 480 2028 5 5,500 900 6,405 6,885 441 5,886 110 6,437 (33) 480 448 2029 5 6,000 800 6,805 7,252 450 6,004 120 6,574 231 448 678 2030 7 6,000 600 6,607 7,285 459 6,124 120 6,703 (96) 678 582 2031 6 7,500 600 8,106 8,688 551 7,343 150 8,044 62 582 644 2032 6 7,500 500 8,006 8,650 562 7,490 150 8,202 (196) 644 448 2033 5 3,500 3,505 3,953 224 2,987 70 3,281 224 448 672 2034 7 3,000 800 3,807 4,478 266 3,550 60 3,876 (69) 672 602 2035 6 3,500 600 4,106 4,708 272 3,621 70 3,962 144 602 746 2036 8 1,500 1,000 2,508 3,254 236 2,482 30 2,747 (240) 746 506 2037 5 1,500 1,300 2,805 3,311 240 2,532 30 2,802 3 50G 510 2038 5 1,000 1,700 2,705 3,215 245 2,582 20 2,847 (142) 510 368 2039 4 1,000 2,300 3,304 3,671 250 2,634 20 2,904 400 368 767 2040 8 - 2,800 2,808 3,575 255 2,687 2,941 (134) 767 634 2041 6 3,600 3,606 4,240 260 2,212 2,472 1,134 634 1,768 2042 18 1,400 1,418 3,185 265 2,257 2,522 (1,104) 1,768 663 2043 7 - 7 670 271 - 271 (264) 663 400 2044 4 4 404 276 276 (272) 400 128 2045 1 - 1 129 124 124 (123) 128 5 Totals 139 63,000 22,325 85,464 7,406 76,793 1,260 85,459 5 - 5 Source: GEL Oregon www.lelandconsulting.com 38 S Redmond US 97 Urban Renewal Area I Report on the Urban Renewal Plan Debt Service Fund The urban renewal debt service fund accounts for the receipt of tax increment property taxes, interest income, and the repayment of debt issued, both long-term and overnight borrowing. The urban renewal district is anticipated to have sufficient fund balance at the end of fiscal year 2045 to call and defease all outstanding debt of the district. Table 24. Debt Serve Fund (amounts in thousands) 2021 - - - 0 2022 249 249 249 - 225 225 24 - 24 2023 623 623 648 17 18 - 35 588 24 613 - 983 2024 942 6 948 1,561 53 52 600 705 243 613 856 8.98 1,929 2025 1,210 9 1,219 2,075 143 137 800 1,080 139 856 995 4.32 5,786 2026 1,489 10 1,499 2,494 289 271 900 1,460 40 995 1,035 2.66 9,497 2027 1,769 10 1,779 2,814 466 425 900 1,792 (13) 1,035 1,022 1,98 14,531 2028 2,067 10 2,077 3,099 677 600 900 2,176 (99) 1,022 923 1.62 19,354 2029 2,387 9 2,396 3,318 903 775 800 2,479 (83) 923 840 1.42 24,451 2030 2,729 8 2,737 3,577 1,147 952 600 2,698 39 840 879 1.30 29,304 2031 3,097 9 3,106 3,985 1,425 1,146 600 3,170 (64) 879 815 1.21 35,380 2032 3,493 8 3,501 4,315 1,739 1,356 500 3,595 (94) 815 720 1.13 41,140 2033 3,917 7 3,924 4,645 1,995 1,484 3,480 445 720 1,165 1.13 42,645 2034 4,373 12 4,385 5,550 2,180 1,527 800 4,507 (122) 1,165 1,043 1.18 43,464 2035 4,863 10 4,873 5,916 2,372 1,563 600 4,534 339 1,043 1,382 1.24 44,593 2036 5,389 14 5,403 6,785 2,544 1,565 1,000 5,109 294 1,382 1,676 1.31 43,549 2037 5,954 17 5,971 7,646 2,687 1,527 1,300 5,514 456 1,676 2,132 1.41 42,362 2038 6,560 21 6,581 8,713 2,826 1,476 1,700 6,002 579 2,132 2,711 1,53 40,536 2039 7,211 27 7,238 91950 2,961 1,411 2,300 6,672 567 2,711 3,278 1,65 38,576 2040 7,911 33 7,944 11,222 3,083 1,323 2,800 7,206 737 3,278 4,016 1.80 35,493 2041 8,398 40 8,438 12,453 3,192 1,215 3,600 8,006 431 4,016 4,447 1.91 32,301 2042 8,626 44 8,670 13,117 3,305 1,102 1,400 5,806 2,863 4,447 7,310 1.96 28,996 2043 8,859 73 8,932 16,242 3,386 985 4,372 4,561 7,310 11,871 2.03 25,610 2044 9,098 119 9,217 21,087 3,435 866 4,302 4,915 11,871 16,786 2.11 22,175 2045 9,347 168 9,515 26,301 3,381 746 4,127 5,389 16,786 22,174 2.27 18,793 Totals 110,562 664 111,226 177,764 44,207 22,520 22,325 89,052 22,174 - 22,174 Source: GEL Oregon www.lelandconsulting.com 39 S Redmond US 97 Urban Renewal Area I Report on the Urban Renewal Plan APPENDIX D: PROJECTED INCREMENTAL TAXABLE VALUE OF DISTRICT Table 25. Projected Incremental Taxable Value Fiscal Year Ending June 30 2021 Frozen :. 000 - 000 148,072 2022 148,072 165,552 2023 148,072 191,384 2024 148,072 212,767 2025 148,072 230,109 2026 148,072 248,323 2027 148,072 266,678 2028 148,072 286,389 2029 148,072 307,557 2030 148,072 330,291 2031 148,072 354,705 2032 148,072 380,925 2033 148,072 409,083 2034 148,072 439,323 2035 148,072 471,799 2036 148,072 506,675 2037 148,072 544,129 2038 148,072 584,351 2039 148,072 627,547 2040 148,072 673,937 2041 148,072 723,756 2042 148,072 777,259 2043 148,072 834,716 2044 148,072 896,422 2045 148,072 962,690 Source: GEL Oregon www.lelandconsulting.com 40 S Redmond US 97 Urban Renewal Area I Report on the Urban Renewal Plan APPENDIX E: ESTIMATED IMPACT ON TAX RATES AND REVENUE - OVERLAPPING TAXING JURISDICTIONS Under Oregon's present property tax -based system, total tax rates will not change as a result of adopting an urban renewal program. Thus, there will be no effect on taxpayers from the establishment of an urban renewal district. Instead, the potential revenues raised by taxing bodies will be affected. The new value created within the urban renewal area after the formation of the renewal district (these values are called "incremental" or "excess" values) will not be available to other taxing bodies for raising property tax revenues. The revenues from those incremental values will instead be directed to the renewal agency for the purpose of paying off indebtedness to carry out project activities. The effects of this foregone revenue will vary with the size of the tax bodies' tax rates and the cumulative level of incremental values in the renewal area. K-12 Schools: It should be noted that under the current system of funding K-12 schools, establishing an urban renewal area does not impact the per -student revenue for schools. The funding per student is derived from a complex formula that establishes a uniform -per -student funding level throughout the State. The amount of funds received by Redmond schools is determined by this formula, not by the amount of property taxes raised locally. The following schedule shows the estimated foregone property tax revenue for the overlapping taxing jurisdictions based on the value growth assumptions outlined in this report. It is important to keep the following in mind when looking at the schedule: • The potential impact on the school district is shown simply to demonstrate the tax rate calculation. As noted above, however, urban renewal will have no impact on K-12 per student funding (i.e., there will be no reduction in school funding resulting from the creation of an urban renewal district). • The estimated amounts of foregone revenue assume all the development and increased property values would occur, even without the renewal programs' outlays for area improvements. In reality, the value created by new development would be less or slower without the tax increment funding. www.lelandconsulting.com 41 S Redmond US 97 Urban Renewal Area I Report on the Urban Renewal Plan Table 26. Estimated Foregone Property Tax Revenue - Government, Fiscal Years 2022-2045 (assuming urban renewal district created) Ending June 30 2022 Of 77,089 21,296 9,614 18,878 392 6,324 30,663 0 6,497 170,753 2023 191,010 52,767 23,822 46,777 970 15,670 75,978 16,099 423,093 2024 285,311 78,818 35,582 69,871 1,449 23,407 113,488 24,047 631,973 2025 361,791 99,946 45,120 88,600 1,838 29,681 143,909 30,493 801,378 2026 442,117 122,136 55,138 108,271 2,246 36,271 175,860 37,263 979,302 2027 523,064 144,498 65,233 128,095 2,657 42,912 208,059 44,086 1,158,604 2028 609,992 168,512 76,074 149,382 3,098 50,043 242,636 51,412 1,351,149 2029 703,345 194,301 87,7"17 -172,244 3,572 57,f02 219,169 59,281 1,557,931 2030 803,604 221,997 100,220 196,797 4,082 65,927 319,649 67,731 1,780,007 2031 911,272 251,741 113,648 223,164 4,629 74,760 362,476 76,805 2,018,495 2032 1,026,905 283,685 128,069 251,481 5,216 84,246 408,471 86,551 2,274,624 2033 1,151,085 317,990 143,556 281,892 5,847 94,434 457,865 97,018 2,549,687 2034 1,284,446 354,831 160,188 314,551 6,524 105,375 510,913 108,258 2,845,086 2035 1,427,668 394,397 178,050 349,625 7,251 117,124 567,882 120,329 3,162,326 2036 1,581,475 436,886 197,232 387,291 8,033 129,743 629,061 133,293 3,503,014 2037 1,746,6.51 482,516 217,831 427,742 8,872 143,293 694,763 147,214 3,868,882 2038 1,924,034 531,519 239,953 471,181 9,773 157,846 765,321 162,165 4,261,792 2039 2,114,533 584,144 263,711 517,833 10,740 173,474 841,095 178,221 4,683,751 2040 2,319,117 640,661 289,226 567,934 11,779 190,258 922,472 195,464 5,136,911 204'I 2,451,101 678,781 306,435 601,727 12,480 201,579 977,360 207,094 5,442,563 2042 2,516,096 695,077 313,792 616,173 12,780 206,418 1,000,824 212,066 5,573,226 2043 2,579,443 712,577 321,692 631,686 13,102 211,615 1,026,022 217,405 5,713,542 2044 2,647,476 731,371 330,177 648,347 13,447 217,196 1,053,083 223,139 5,864,236 2045 2,720,538 751,555 339,288 666,239 13,818 223,190 1,082,145 229,297 6,026,070 Totals 32,405,169 $,952,002 4,041,368 7,935,781 164,595 2,658,488 12,889,764 2,731,228 71,778,395 Source: GEL Oregon, Inc. www.lelandconsulting.com 42 S Redmond US 97 Urban Renewal Area I Report on the Urban Renewal Plan Table 27. Estimated Foregone Property Tax Revenue - Government, Fiscal Years 2022-2045 (assuming no urban renewal district created, i.e.,1.0% projected growth in TAV annually) Fiscal E En . 2022 77,089 21,296 9,614 18,878 • LU 392 6,324 QJ .. E 30,663 .. . CC 6,497 170,753 2023 191,010 52,767 23,822 46,777 970 15,670 75,978 16,099 423,093 2024 255,773 70,658 31,898 62,637 1,299 20,983 101,738 21,557 566,543 2025 298,264 82,396 37,198 73,043 1,515 24,469 118,640 25,139 660,664 2026 340,605 94,093 42,478 83,412 1,730 27,943 135,482 28,708 754,451 2027 379,273 104,775 47,301 92,881 1,926 31,115 150,863 31,967 840,101 2028 419,440 115,871 52,310 102,718 2,130 34,410 166,840 35,352 929,071 2029 .461,177 127,401 57,515 112,939 2,342 37,835 183,442 38,870 1,021,521 2030 504,537 139,380 62,923 123,557 2,563 41,392 200,689 42,524 1,117,565 2031 549,591 151,826 68,542 134,591 2,792 45,088 218,610 46,322 1,217,362 2032 S96,391 164,754 74,378 146,052 3,029 48,927 237,226 50,266 1,321,023 2033 645,017 178,187 80,442 157,960 3,276 52,917 256,568 54,364 1,428,731 2034 695,530 192,142 86,742 170,330 3,533 57,061 276,660 58,622 1,540,620 2035 748,015 206,641 93,288 183,183 3,799 61,366 297,537 63,046 1,656,875 2036 802,546 221,705 100,088 196,537 4,076 65,840 319,228 67,642 1,777,662 2037 859,202 237,357 107,154 210,412 4,364 70,488 341,764 72,417 1,903,158 2038 918,068 253,618 114,496 224,828 4,663 75,317 365,179 77,378 2,033,547 2039 979,214 270,510 122,121 239,802 4,974 80,334 389,501 82,532 _ 2,168,988 2040 1,042,742 288,060 130,044 255,360 5,296 85,545 414,770 87,886 2,309,703 2041 1,108,748 306,294 138,276 271,524 5,632 90,960 441,025 93,449 2,455,908 2042 1,177,325 325,239 146,829 288,318 5,980 96,586 468,303 99,229 2,607,809 2043 1,248,570 344,920 155,714 305,765 6,342 102,431 496,642 105,234 2,765,618 2044 1,322,593 365,369 164,946 323,893 6,718 108,504 526,086 111,473 2,929,582 2045 1,399,497 386,614 174,536 342,726 7,108 114,813 556,676 117,955 3,099,925 Totals 17,020,217 4,701,873 2,122,655t4,168,123 86,449 1,396,318 6,770,110 1,434,528 37,700,273 Source: GEL Oregon www.lelandconsulting.com 43 S Redmond US 97 Urban Renewal Area I Report on the Urban Renewal Plan Table 28. Estimated Foregone Property Tax Revenue - Education, Fiscal Years 2022-2045 (assuming urban renewal district created) • Fiscal . . June Year 0 2022 10,845 1,685 87,839 100,369 2023 26,871 4,175 217,647 248,693 2024 40,137 6,237 325,099 371,473 2025 50,896 7,908 412,244 471,048 2026 62,196 9,664 503,771 575,631 2027 73,583 11,434 596,007 681,024 2028 85,812 13,334 695,057 794,203 2029 98,944 15,374 801,428 915,746 2030 113,049 17,566 915,669 1,046,284 2031 128,195 19,919 1,038,351 1,186,465 2032 144,462 22,447 1,170,110 1,337,019 2033 161,931 25,161 1,311,606 1,498,698 2034 180,692 28,077 1,463,566 1,672,335 2035 200,840 31,207 1,626,760 1,858,807 2036 222,477 34,569 1,802,016 2,059,062 2037 245,714 38,180 1,990,226 2,274,120 2038 270,667 42,057 2,192,346 2,505,070 2039 297,466 46,221 2,409,410 2,753,097 2040 326,247 50,693 2,642,524 3,019,464 204*1 345,659 S3,/10 2,/99,/S/ 3,199,126 2042 353,957 54,999 2,866,972 3,275,928 2043 362,869 56,384 2,939,IS4 3,358,407 2044 372,439 57,871 3,016,673 3,446,983 2045 382,717 59,468 3,099,924 3,542,109 Totals 4,558,665 708,340 36,924,156 42,191,161 Source GEL Oregon Note: The difference between the forecast tax collections ($110.6 million) and the foregone tax revenue (levies) of $114.0 million, or $3.4 million is due to discounts taken by taxpayers paying taxes in November of the levy year, approximately 2.5%, with the exception of fiscal years 2043-44 through fiscal year 2044-45, when delinquent tax collections are not fully collected or recognized until after those years. www.lelandconsulting.com 44 S Redmond US 97 Urban Renewal Area I Report on the Urban Renewal Plan Table 29. Estimated Foregone Property Tax Revenue - Education, Fiscal Years 2022-2045 (assuming no urban renewal district created, i.e.,1.0% projected growth in TAV annually) Fiscal Endin9. June 1 '2022 M • 10,845 1,685 VI 0 87,839 100,369 2023 26,871 4,175 217,647 248,693 2024 35,981 5,591 291,441 333,013 2025 41,959 6,520 339,858 388,337 2026 47,915 7,445 388,104 443,464 2027 53,355 8,290 432,164 493,809 2028 59,006 9,169 477,932 546,107 2029 64,877 10,081 525,490 600,448 2030 70,977 11,029 574,897 656,903 2031 77,315 12,013 626,233 715,561 2032 83,899 13,036 679,559 776,494 2033 90,739 14,099 734,966 839,804 2034 97,845 15,204 792,524 905,573 2035 105,229 16,351 852,327 973,907 2036 112,900 17,543 914,463 1,044,906 2037 120,870 18,781 97 9, 02 0 1,118,671 2038 129,151 20,068 1,046,095 1,195, 314 2039 137,753 21,405 1,115,768 1,274,926 2040 146,690 22,793 1,188,155 1,357,638 2041 155,975 24,236 1,263,365 1,443,576 2042 165,623 25,735 1,341,506 1,532,864 2043 175,645 27,292 1,422,686 1,625,623 2044 186,059 28,910 1,507,033 1,722,002 2045 196,877 30,591 1,594,660 1,822,128 Totals 2,394,356 372,042 19,393,732 22,160,130 Source: GEL Oregon www.lelandconsulting.com 45 S Redmond US 97 Urban Renewal Area I Report on the Urban Renewal Plan APPENDIX F: LEGAL DESCRIPTION OF URBAN RENEWAL BOUNDARY www.lelandconsulting.com 46 EXHIBIT "A" SOUTH HIGHWAY 97 URBAN LC?CATED IN SECT+n��� nn TOWNSHIP 15 Si DESCHUTES C06 SOUTH HIGHWAY CONTAINS 1440 AC, (SEE DESCRIPTION, SCALE: 1" = 2000' PRE -PARED JULY 3, 2020 RENEWAL AREA, n4 no n("1 7n An7n 77 POVEY AND ASSOC. LAND SURVEYORS P.O. BOX 131, REDMOND, OR 97756 (541) 548-6778 20-078D.DWG EXHIBIT "B" DESCRIPTION - SOUTH HIGHWAY 97 URBAN RENEWAL AREA, LOCATED IN SECTIONS 20, 21, 28, 29, 32 AND 33, TOWNSHIP 15 SOUTH, RANGE 13 EAST, W.M., DESCHUTES COUNTY, OREGON DESCRIPTION OF A TRACT OF LAND LOCATED IN -SECTIONS 20, 21, 28, 29, 32 AND 33, TOWNSHIP 15 SOUTH, RANGE 13 EAST, WILLAMETTE MERIDIAN, DESCHUTES COUNTY, OREGON, DESCRIBED AS FOLLOWS: BEGINNING AT THE SOUTHEAST CORNER OF SAID SECTION 33; THENCE WEST ALONG THE SOUTH LINE OF SAID SECTION 33, 5296 FEET TO THE SOUTHWEST CORNER OF SAID SECTION 33, THENCE WEST ALONG THE SOUTH LINE OF SAID SECTION 32, 5232 FEET TO THE SOUTHEAST RIGHT-OF-WAY LINE OF THE BURLINGTON NORTHERN - SANTA FE (BNSF) RAILROAD, BEING 100 FEET FROM THE CENTERLINE OF SAID RAILWAY, THENCE N29°E ALONG SAID SOUTHEAST RIGHT-OF- WAY LINE, 406 FEET; THENCE N61"W, PERPENDICULAR TO SAID CENTERLINE, 300 FEET THE INTERSECTION OF THE NORTHWEST RIGHT-OF-WAY LINE OF SAID RAILWAY AND THE WEST LINE OF THE SW 1 J4 SWI14 OF SAID SECTION 32, SAID INTERSECTION BEING 200 FEET FROM THE CENTERLINE OF SAID RAILWAY; THENCE N01°E ALONG SAID WEST LINE, 817 FEET TO THE NORTH LINE OF SAID SW114 SW/4; THENCE EAST ALONG SAID NORTH LINE, 793 FEET TO SAID SOUTHEAST RIGHT-OF-WAY LINE, BEING 100 FEET FROM THE CENTERLINE OF SAID RAILWAY; THENCE N32°E ALONG SAID SOUTHEAST RIGHT-OF-WAY LINE, 310 FEET; THENCE N58°W ALONG SAID SOUTHEAST RIGHT-OF-WAY LINE, 50 FEET; THENCE N32°E ALONG SAID SOUTHEAST RIGHT-OF-WAY LINE, BEING 50 FEET FROM THE CENTERLINE OF SAID RAILWAY, 802 FEET TO THE WEST LINE OF THE NE114 SW1/4 OF SAID SECTION 32; THENCE N01 °E ALONG SAID WEST LINE, 346 FEET; THENCE NORTH ALONG THE WEST LINE OF THE SE1; 4 NW7/4 OF SAID SECTION 32, 1315 FEET TO THE NORTH LINE OF SAID SE114 NW 1 j 4; THENCE EAST ALONG SAID NOHIH LINL, 902 FEET TO SAID NORTHWEST RICHT-OF-WAY LINE, BEING 50 FEET FROM THE CENTERLINE OF SAID RAILWAY; THENCE S32°W ALONG SAID NORTHWEST RIGHT-OF-WAY LINE, 695 FEET, THENCE S58°E, PERPENDICULAR TO SAID CENTERLINE, 100 FEET TO THE INTERSECTION OF THE SOUTHEAST RIGHT-OF-WAY LINE OF SAID RAILWAY, AND THE NORTHEAST EASEMENT LINE OF BONNEVILLE POWER ADMINISTRATION'S REDMOND-BURNS NO. 1 TRANSMISSION LINE, SAID INTERSECTION BEING 50 FEET FROM THE CENTERLINE OF SAID RAILWAY, AND BEING 50 FEET FROM THE CENTERLINE OF SAID POWER LINE; THENCE S27°E ALONG SAID NORTHEAST EASEMENT LINE, 417 FEET; THENCE S53°E ALONG SAID NORTHEAST EASEMENT LINE, 507 FEET TO THE SOUTH LINE OF SAID SE114 NW7/4; THENCE EAST ALONG SAID SOUTH LINE, AND ALONG THE SOUTH LINE OF THE NE114 OF SAID SECTION 32, 2750 FEET TO THE EAST LINE OF SAID NE114; THENCE NORTH ALONG SAID EAST LINE 2649 FEET TO THE SOUTHEAST CORNER OF SAID SECTION 29; THENCE WEST ALONG THE SOUTH LINE OF THE SE114 OF SAID SECTION 29, 2634 FEET TO THE DESCRIPTION - SHEET 1 OF 4 SOUTH HIGHWAY 97 URBAN RENEWAL AREA, CONTINUED: WEST LINE OF THE SW114 OF SAID SE114; THENCE NORTH ALONG SAID WEST LINE, 992 FEET TO THE SOUTHEAST RIGHT-OF-WAY LINE OF U.S. HIGHWAY 97, BFINC 90 FEET FROM THE CENTERLINE OF SAID HIGHWAY, THENCE N35°E ALONG SAID SOUTHEAST RIGHT-OF-WAY LINE, 1659 FEET TO ENGINEER'S STATION 125+00, 90 FEET LEFT; THENCE N41 °E ALONG SAID SOUTHEAST RIGHT-OF-WAY LINE, 376, FEET TO THE NORTH LINE OF THE NW.114 SE114 OF SAID SECTION 29; THENCE WEST ALONG SAID NORTH LINE, 401 FEET TO THE NORTHWEST RIGHT-OF-WAY LINE OF SAID HIGHWAY (ALSO BEING THE NORTHWEST RIGHT-DF-WAY LINE OF SW 25TH PLACE), AS DESCRIBED - IN VOLUME 234, PAGE 1995, DESCHUTES COUNTY DEED RECORDS; THENCE ALONG SAID NORTHWEST RIGHT-OF-WAY LINE AS FOLLOWS: N05°E, 670 FEET, THENCE N33°E, 175 FEET, THENCE N23°E, 255 FEET; THENCE N35°E, 91 FEET TO THE SOUTH RIGHT-OF-WAY LINE OF SW YEW AVENUE, BEING A LINE OF VARIABLE WIDTH FROM THE CENTERLINE OF SAID ROADWAY; THENCE LEAVING SAID NORTHWEST RIGHT-OF-WAY LINE, AND I190 FEET WESTERLY ALONG SAID SOUTH RIGHT-OF-WAY LINE, AND ALONG ITS NORTHWESTERLY PROLONGATION, TO A POINT WHICH BEARS N73°W, 1131 FEET FROM THE END OF THE PREVIOUS COURSE, SAID POINT BEING ON THE NORTHWEST RIGHT-OF- WAY LINE OF SW CANAL BOULEVARD, AND BEING 30 FEET FROM THE CENTERLINE OF SAID ROADWAY; THENCE 5459 FEET NORTHEASTERLY ALONG SAID NORTHWEST RIGHT-OF-WAY LINE, TO A POINT WHICH BEARS N42°E, 5449 FEET FROM THE END OF THE PREVIOUS COURSE, SAID POINT BEING 40 FEET FROM THE CENTERLINE OF SAID ROADWAY, AND BEING ON THE SOUTH BOUNDARY OF A TRACT OF LAND DESCRIBED IN DOCUMENT 2007-43829, DESCHUTES COUNTY OFFICIAL RECORDS; THENCE ALONG SAID TRACT BOUNDARY AS FOLLOWS: WEST, 345 FEET, THENCE NORTH, 170 FEET; THENCE EAST, 367 FEET TO THE BOUNDARY OF PARCEL 2, AS DESCRIBED IN DOCUMENT N0, 2018-019368, DESCHUTES COUNTY OFFICIAL RECORDS; THENCE LEAVING SAID TRACT BOUNDARY AND ALONG SAID PARCEL 2 BOUNDARY AS FOLLOWS: NIXE, 122 FEET; THENCE N37E, 30 FEET, THENCE S61°E, 107 FEET TO THE NORTHWEST RIGHT-OF-WAY LINE OF SW CANAL BOULEVARD, BEING 30 FEET FROM THE CENTERLINE OF SAID ROADWAY; THENCE LEAVING SAID PARCEL 2 BOUNDARY, N30°E ALONG SAID NORTHWEST RIGHT-OF-WAY LINE, 751 FEET TO THE BOUNDARY OF A TRACT OF LAND DESCRIBED IN DOCUMENT 2007-64854, DESCHUTES COUNTY OFFICIAL RECORDS; THENCE ALONG THE BOUNDARY OF SAID TRACT AS FOLLOWS: N59°W, 136 FEET; THENCE S31 `W, 239 FEET; THENCE N56`W, 184 FEET; THENCE 214 FEET ALONG THE ARC OF A NON -TANGENT 658 FOOT RADIUS CURVE TO THE LEFT, THE CHORD OF WHICH BEARS N28°E, 213 FEET THENCE LEAVING SAID TRACT BOUNDARY, NORTH, PERPENDICULAR TO THE NORTH LINE OF SAID TRACT, 60 FEET TO THE NORTH RIGHT-OF-WAY LINE OF SW QUARTZ AVENUE, BEING 30 FEET FROM THE CENTERLINE OF SAID ROADWAY; THENCE EAST ALONG SAID NORTH RIGHT-OF-WAY LINE, 105 FEET TO THE BOUNDARY OF A TRACT OF LAND DESCRIBED IN DOCUMENT 2020-06416, DESCHUTES COUNTY OFFICIAL RECORDS; THENCE ALONG THE BOUNDARY OF SAID TRACT AS FOLLOWS: NORTH 214 FEET THENCE S89°E, 304 FEET- THENCE S01 °W, 96 FEET, THENCE S83°E, 74 FEET TO THE NORTHWEST RIGHT-OF-WAY LINE OF DESCRIPTION - SHEET 2 OF 4 SOUTH HIGHWAY 97 URBAN RENEWAL AREA, CONTINUED; SW CANAL BOULEVARD, BEING 30 FEET FROM THE CENTERLINE OF SAID ROADWAY; THENCE LEAVING SAID TRACT BOUNDARY, AND 422 FEET NORTHEASTERLY ALONG SAID NORTHWEST RIGHT-OF-WAY LINE, TO A POINT WHICH BEARS N26°E, 422 FEET FROM THE END OF THE PREVIOUS COURSE, SAID POINT BEING AT THE SOUTHEAST CORNER OF TRACT 1, AS DESCRIBED IN DOCUMENT 2020-10963, DESCHUTES COUNTY OFFICIAL RECORDS; THENCE WEST ALONG THE SOUTH LINE -OF SAID TRACT 1, 591 FEET TO THE WEST LINE OF SAID TRACT 1; THENCE NORTH ALONG SAID WEST LINE,- AND ALONG THE WEST LINE OF TRACT 2, AS DESCRIBED IN SAID DOCUMENT, 782 FEET TO THE - NORTH LINE OF SAID TRACT 2; THENCE N74°E ALONG SAID NORTH LINE, 135 FEET; THENCE EAST ALONG SAID NORTH LINE, 265 FEET TO THE EAST LINE OF SAID TRACT 2; THENCE SOUTH ALONG SAID EAST LINE, 125 FEET TO THE NORTH LINE OF SAID TRACT 1; THENCE EAST ALONG SAID NORTH LINE, 312 FEET TO THE WEST RIGHT-OF-WAY LINE OF SW 13TH STREET, BEING 30 FEET FROM THE CENTERLINE OF SAID ROADWAY; THENCE NORTH ALONG SAID WEST RIGHT-OF-WAY LINE, 125 FEET TO THE NORTH LINE OF THE NE1/4 NW 1 f4 OF SAID SECTION 21; THENCE EAST ALONG SAID NORTH LINE, 60 FEET TO THE EAST RIGHT-OF-WAY LINE OF SW 13TH STREET, BEING 30 FEET FROM THE CENTERLINE OF SAID ROADWAY; THENCE SOUTH ALONG SAID EAST RIGHT-OF-WAY LINE, 120 FEET TO THE NORTH LINE OF SAID TRACT 1; THENCE EAST ALONG SAID NORTH LINE, 130 FEET TO THE EAST LINE OF SAID TRACT 1; THENCE SOUTH ALONG SAID EAST LINE, 159 FEET TO THE NORTHWEST RIGHT- OF-WAY LINE OF SW CANAL BOULEVARD, BEING 40 FEET FROM THE CENTERLINE OF SAID ROADWAY, THENCE N49°E ALONG SAID NORTHWEST RIGHT-OF-WAY LINE, 280 FEET TO THE SOUTH LINE OF THE NORTH 96 FEET OF SAID NE114 NW1114; THENCE S41°E, PERPENDICULAR TO SAID CENTERLINE, 70 FEET TO THE SOUTHEAST RIGHT-OF-WAY LINE OF SW CANAL BOULEVARD, BEING 30 FEET FROM THE CENTERLINE OF SAID ROADWAY; THENCE N49°E ALONG SAID SOUTHEAST RIGHT-OF-WAY LINE, 228 FEET TO THE NORTH LINE OF THE NW114 NE114 OF SAID SECTION 21, THENCE EAST ALONG SAID NORTH LINE, 294 FEET TO THE PROLONGATION OF THE NORTHEAST LINE OF A TRAC I OF LAND DESCRIBED IN VOLUME 279, PAGE 0839, DESCHUTES COUNTY DEED RECORDS; THENCE S65'E ALONG SAID PROLONGATION, AND ALONG SAID NORTHEAST LINE, 351 FEET TO THE NORTHWEST RIGHT-OF-WAY LINE OF THE BNSF RAILROAD, BEING 50 FEET FROM THE CENTERLINE OF SAID RAILWAY; THENCE S65°E ALONG SAID PROLONGATION, 100 FEET TO THE SOUTHEAST RIGHT-OF-WAY LINE OF THE BNSF RAILROAD, BEING 50 FEET FROM THE CENTERLINE OF SAID RAILWAY, THENCE N26°E ALONG SAID SOUTHEAST RIGHT-OF- WAY LINE, 126 FEET TO THE NORTH LINE OF THE FIRST EXCEPTION TO PARCEL 1, AS DESCRIBED IN DOCUMENT NO. 2015-005171, DESCHUTES COUNTY OFFICIAL ,RECORDS; THENCE EAST ALONG SAID NORTH LINE, 67 FEET TO THE NORTHWEST LINE OF A TRACT OF LAND DESCRIBED IN DOCUMENT NO, 2009-52569, DESCHUTES COUNTY OFFICIAL RECORDS; THENCE S26'W ALONG SAID NORTHWEST LINE, 306 FEET TO THE SOUTHEAST LINE OF SAID TRACT; THENCE N64°W PERPENDICULAR TO SAID RAILWAY CENTERLINE, 160 FEET TO SAID NORTHWEST RIGHT-OF-WAY LINE; THENCE S26`W ALONG SAID DESCRIPTION - SHEET 3 OF 4 SOUTH HIGHWAY 97 URBAN RENEWAL AREA, CONTINUED: NORTHWEST RIGHT-OF-WAY LINE, 1110 FEET; THENCE S64°E, PERPENDICULAR TO SAID CENTERLINE, 100 FEET TO THE NORTHWEST CORNER OF PARCEL 4, AS DESCRIBED IN DOCUMENT NO. 2014-042282, DESCHUTES COUNTY OFFICIAL RECORDS; THENCE ALONG THE BOUNDARY OF SAID PARCEL 4 AS FOLLOWS: EAST, 449 FEET; THENCE S 14°W, 73 FEET, THENCE SO4°E, 82 FEET; THENCE S 13'W, 501 FEET; THENCE S36'E, 559 FEET; THENCE WEST, 996 FEET TO THE CENTER 114 CORNER OF SAID SECTION 21, THENCE LEAVING SAID TRACT BOUNDARY, WEST ALONG THE SOUTH LINE OF THE SE114 NW114 OF SAID SECTION 21, 588 FEET TO THE NORTHWEST RIGHT- OF-WAY LINE OF THE BNSF RAILROAD, BEING 50 FEET FROM THE CENTERLINE OF SAID RAILWAY; THENCE 5602 FEET SOUTHWESTERLY ALONG SAID NORTHWEST RIGHT-OF-WAY LINE TO A POINT WHICH BEARS S27W, 5599 FEET FROM THE END OF THE PREVIOUS COURSE, SAID POINT BEING ON THE NORTHEAST RIGHT-OF-WAY LINE OF SW AIRPORT WAY, AND BEING 55 FEET FROM THE CENTERLINE OF SAID ROADWAY; THENCE S52°E, 101 FEET TO THE INTERSECTION OF THE SOUTHEAST RIGHT-OF-WAY LINE OF THE BNSF RAILROAD AND THE NORTHEAST RIGHT-OF-WAY LINE OF SW AIRPORT WAY, SAID INTERSECTION BEING 50 FEET FROM THE CENTERLINE OF SAID RAILWAY, AND BEING 60 FEET FROM THE CENTERLINE OF SAID ROADWAY; THENCE 444 FEET SOUTHEASTERLY ALONG SAID NORTHEAST RIGHT-OF-WAY LINE TO A POINT WHICH BEARS S60°E, 434 FEET FROM THE END OF THE PREVIOUS COURSE, SAID POINT BEING ON THE EAST LINE OF THE WEST 40 FEET OF THE SW 114 OF SAID SECTION 28; THENCE SOUTH ALONG SAID EAST LINE (ALSO BEING THE EAST RIGHT-OF-WAY LINE OF SW 79TH STREET), 2624 FEET TO THE NORTH LINE OF SAID SECTION 33; THENCE EAST ALONG SAID NORTH LINE, 5246 FEET TO THE NORTHEAST CORNER OF SAID SECTION 33; THENCE SOUTH ALONG THE EAST LINE OF SAID SECTION 33, 5268 FEET TO THE SOUTHEAST CORNER OF SAID SECTION 33, AND TO THE POINT OF BEGINNING, THE SAME CONTAINING 1440 ACRES, MORE OR LESS. A SKETCH OF THE URBAN RENEWAL AREA DESCRIBED ABOVE IS SHOWN ON THE ATTACHED EXHIBIT "A", WHICH IS HEREBY INCORPORATED BY REFERENCE. PREPARED JULY 3, 2020 POVEY AND ASSOC. LAND SURVEYORS P.O. BOX 131, REDMOND, OR 97756 (541) 548-6778 20--078D.DWG DESCRIPTION - SHEET 4 OF 4 REGISTERED PROFESSIONAL AND WRVEYOR OREGON � -\ JULY 15, 1983 WILLIAM G. BAHRKE 2039 Renewal date; 12/31/21 97MOYM T-ex, Me City of Redmond, Oregon 411 Southwest 9th Street Redmond, Oregon 97756 www.redmondoregon.gov Prepared by: LELAND CONSULTING GROUP 610 SW Alder Street, Suite 1200 Portland, Oregon 97205 www.lelandconsulting.com In collaboration with & 19TOREG.N S Redmond US 97 Urban Renewal Area I Urban Renewal Plan PROJECT TEAM Mayor George Endicott City Manager Keith Witcosky City Council Jay Patrick, Council President Jon Bullock Krisanna Clark -Endicott Camden King tinny McPherson Albert Calderon City Staff John Roberts, Deputy City Manager Mike Caccavano, City Engineer Jason Neff, Chief Financial Officer Chuck Arnold, Urban Renewal Program Manager Meghan Gassner, Urban Renewal Program Analyst Urban Renewal Advisory Committee Kathryn Osborne, Chair Jen Miller Aaron Adams Edwin Danielson Liz Goodrich Cheriee Perrine Matt Ullman Meg Watkins Legal Keith Leitz, City Attorney Consultant Team Leland Consulting Group GEL Oregon HDR www.lelandconsulting.com 1 S Redmond US 97 urban Renewal area I Urban Renewal Plan As the hub of Central Oregon, Redmond has experienced pronounced growth and development throughout the last 20 years. Attracting newcomers from all over, Redmond has become a mid -sized community of 30,000, with an annual growth rate of approximately 2.4 percent. By 2040, the population is expected to grow to nearly 50,000. Known for its progressive and innovative leadership, Redmond enjoys a state-wide reputation for its ability to successfully undertakeefforts that improve the community. The most immediate challenge is to strategically respond to rapid regional growth while preserving and improving assets like Redmond's small-town character, thriving traded sector and industrial businesses, distinct neighborhood identities, access to nature and outdoor recreation, and important public spaces like the Dry Canyon. Managing the growth impacts of the South Redmond US Highway 97 (US 97) corridor is critical. As the primary north -south route through Redmond, US 97 is central to the community's ability to succeed in the areas of safety, mobility; and connectivity, and economic development. In 2019, following a decade of research and outreach, the Oregon Department of Transportation (ODOT), the City of Redmond (City), and local committees completed a joint study of the highway and made recommendations to accommodate its growing use. This study, referred to in this Urban Renewal Plan ("Plan") as the Redmond South US 97 Corridor Plan ("Corridor Plan"), included a recommended concept intended to enhance corridor safety, improve access to businesses, beautify the highway, create biker- and pedestrian - friendly routes, develop east/west linkages, and enhance economic development and business vitality for long- term community health and sustainability. The Corridor Plan also identifies several potential funding sources for these improvements, one of which is the creation of an urban renewal area. Urban renewal is one of the only funding mechanisms in the State of Oregon that can raise funds for projects without raising taxes for the local residents through the use of tax increment financing ("TIF").' The tax increment is the difference between the total assessed value of the urban renewal area in a given year and the original frozen base value. Tax revenue from the increment value is diverted from other taxing districts in the Urban Renewal Area ("Area") and invested in projects to make improvements in infrastructure that lead to jobs, advance public policy objectives and accelerate growth in property taxes. The City staff spent more than two years working with stakeholders to evaluate conditions in the Corridor and potential investments that would benefit from tax increment financing. This work included a parcel -by -parcel assessment to understand the extent of the blighted conditions. A feasibility study found that urban renewal Similar tax increment funding was utilized by the City of Redmond for North Highway 97 and related improvements in the 2000s. www.lelandconsulting.com S Redmond US 97 Urban Renewal Area I Urban Renewal Plan would be practicable in the proposed area and would generate sufficient revenues to support the identified projects in the Plan. Figure 1. US 97 Corridor Plan Rendering VI Source: SERA Architects (from US 97 SRC Facility Plan, "US 97 Corridor Plan') Plan Boundary, Description, Condition The 1330.5-acre Urban Renewal Area boundary was determined by the Corridor Plan Committee to include the US 97 Corridor. A subsequent Urban Renewal Feasibilty Study also included the South Redmond Tract - a state designated land area of nearly 1,000 acres with industrial development opportunities in southeast Redmond. The South Redmond Tract accounts for approximately 71 percent of the total URA. Significant investments in infrastructure are necessary to realize its potential for for substantial industrial development and employment growth. The remaining land in the Area - approximately 300 acres along South Highway 9/ - is zoned for commercial uses. Urban renewal funding is largely expected to provide local matching dollars necessary to leverage state and federal highway improvement funds. A legal description for the project boundary is included in Attachment "A" of this Plan. The boundary of the Area is shown in Figure 2 on page 7 of this Plan. Existing Conditions and Challenges of the District The South Redmond US 97 corridor serves as the primary north -south arterial through Central Oregon. The corridor serves a mixture of state, regional, and local traffic traveling to, from, and within a variety of different destinations in Redmond. The city's location is not only the hub for transportation serving Central Oregon, but also has regional attractors, including a commercial airport, county fairgrounds, and many industrial and commercial areas. www.lelandconsulting.com S Redmond US 97 Urban Renewal Area I Urban Renewal Plan The corridor currently has a number of challenges related to safety, mobility, and connectivity, including: ® The number of vehicle crashes (about 40 per year) is well above the statewide average. ® Congestion and unreliable travel times slow the movement of freight traffic. ® Lacking or substandard pedestrian facilities. ® Lacking or substandard bicycle facilities. ® Limited east -west crossing opportunities for pedestrians and bicyclists. ® Limited east -west connectivity between the corridor and the neighborhoods to the west. Anticipated employment and housing growth will exacerbate these challenges, with traffic activity expected to increase significantly by 2040. The number of vehicle crashes is projected to reach more than 70 per year if conditions do not improve. The investments outlined in the Plan are critical to mitigating the negative impacts of this growth, and significantly improve safety and operations. Beyond these traffic -related concerns, there is untapped development potential due to a multitude of vacant or underdeveloped parcels along the corridor. The Area contains 77 vacant or mostly vacant parcels; representing 30.8 percent of the parcels, but 87.4 percent of the land area within the proposed boundary. The South Redmond Tract is especially undeveloped and underserved by infrastructure. This area is largely without streets, sidewalks, and utilities necessary for development. An opportunity exists to promote higher density development on the undeveloped acreage. Additionally, there are challenging corridor aesthetics. Approximately 42 percent of parcels in the Area have missing or deteriorated sidewalks, and 20.9 of parcels are considered to have poor or substandard site conditions. Maximum Indebtedness/Implementing the Plan The maximum amount of indebtedness that may be issued or incurred under the Plan, based upon good faith estimates of the scope and costs of projects in the Plan and the schedule for their completion is $85,458,900 (inflation -adjusted dollars). The tax increment funding will help leverage state and other funding toward the estimated cost of $116.5 million of improvements (2020 dollars). Please see the accompanying Report for additional information. www.lelandconsulting.com S Redmond US 97 Urban Renewal Area I Urban Renewal Plan TABLE OF CONTENTS 100. INTRODUCTION 200. DEFINITIONS 300. URBAN RENEWAL AREA BOUNDARY 400. RELATIONSHIP TO LOCAL OBJECTIVES 500. PROPOSED LAND USES 600. OUTLINE OF DEVELOPMENT 700. DESCRIPTION OF PROJECTS TO BE UNDERTAKEN 750. PROPERTY ACQUISITION AND DISPOSITION 800. REDEVELOPER'S OBLIGATIONS 900. RELOCATION 1000. FUTURE AMENDMENTS 1100. LATEST DATE FOR ISSUE OF BONDED INDEBTEDNESS 1200. FINANCING METHODS 1300. CITIZEN PARTICIPATION ATTACHMENT A: LEGAL DESCRIPTION OF URBAN RENEWAL BOUNDARY 5 5 6 8 15 18 19 26 27 27 27 28 29 30 31 www.lelai idconsultirig.corri 4 S Redmond US 97 Urban Renewal Area I Urban Renewal Plan 100. INTRODUCTION This South Redmond Highway 97 Urban Renewal Area Plan has been prepared pursuant to Oregon Revised Statute (ORS) Chapter 457, the Oregon Constitution, and all applicable laws and ordinances of the State of Oregon and City of Redmond respectively. All such applicable laws and ordinances are made a part of this Plan, whether expressly referred to in the text or not. The proposed Urban Renewal Area is a single geographic area of approximately 1,330 acres. The Area is defined by a single contiguous boundary in which a variety of activities and projects are contemplated to eliminate blight and the cause of blight, as well as create an environment in which the private sector may develop uses compatible with the purposes of this Plan. 200. DEFINITIONS The following definitions will govern the construction of this Plan unless the context otherwise requires: "Area" means the area included within the boundaries of the South Redmond US 97 Urban Renewal Area. "Bonded Indebtedness" means any formally executed written agreement representing a promise by a unit of government to pay to another a specified sum of money, at a specified date or dates at least one year in the future. "City" means the City of Redmond, Oregon. "City Council" means the City Council of the City of Redmond, Oregon. "Comprehensive Plan" means the City's 2020 Comprehensive Plan and its implementing Ordinances, policies, and development standards. "Corridor Plan" means the Redmond South US 97 Corridor Plan. "County" means the County of Deschutes, State of Oregon. "Disposition and Development Agreement" means an agreement between the Urban Renewal Agency and a private developer which sets forth the terms and conditions which will govern the disposition of land to a private developer. "Exhibit" means an attachment, either narrative or map, to the Urban Renewal Plan for the Urban Renewal Area. "ORS" means Oregon Revised Statute (State Law) and specifically Chapter 457 thereof. "Plan" means the Urban Renewal Plan for the South Redmond US 97 Urban Renewal Area. "Planning Commission" means the Urban Area Planning Commission of the City of Redmond, Oregon. "Project, Activity or Project Activity" means any undertaking or activity within the Renewal Area, such as a public improvement, street project, or other activity which is authorized and for which implementing provisions are set forth in the Urban Renewal Plan. "Report" refers to the report accompanying the Urban Renewal Plan, as provided in ORS 457.085(3). "Redeveloper" means any individual or group acquiring property from the Urban Renewal Agency or receiving financial assistance for the physical improvement of privately or publicly held structures and land. "State" means the State of Oregon. www.lelandconsulting.com 5 S Redmond US 97 Urban Renewal Area I Urban Renewal Plan "Urban Renewal Agency" or "Agency" means the Urban Renewal Agency of the City of Redmond, Oregon. "Urban Renewal Area", " South Redmond US 97 Urban Renewal Area", or " Area" means the geographic area for which this Urban Renewal Plan has been approved. The boundary of the Renewal Area is described in Exhibits made a part of this plan. '11 ���`C• ► \ is �� � �� \ ��' The boundary of the South Redmond Urban Renewal Area is shown below. A legal description for the Area boundary is included in Attachment "A" of this Plan. The Urban Renewal Area boundary was determined by the Corridor Plan Committee to include the US 97 Corridor and the South Redmond Tract, a total area of 1,330.5 acres. The City's current land area is approxirnalely 10,449 acres. Per state statute, no more than 25 percent of the City's total land area can be designated as an urban renewal district. Added to the Redmond Downtown Urban Renewal District (701.7 acres), the total of all acreage in urban renewal areas represents 19.45 percent of the City's land area and is, therefore, within the 25 percent limitation. www.lelandconsulting.con i S Redmond US 97 Urban Renewal Area I Urban Renewal Plan Figure 2. South Redmond US 97 Urban Renewal Area Boundary SW Pumice PI M �' m v, ' SW Quartz Ave M', z, -- Oartz PI M _ S� a S.' SW Reindeer Ave M,it LReM11 ndeet Ave -: ,z.; r - - ,= SW Salmon Ave M M 0 0.5 1 mi Source: Leland Consulting Group www.lelandconsulting.com S Redmond US 97 Urban Renewal Area I Urban Renewal Plan The purpose of this Plan is to eliminate blighting influences found in the Urban Renewal Area, to implement goals and objectives of the City of Redmond 2020 Comprehensive Plan, and to implement development strategies and objectives for the Area. The South Rcdmond Highway 97 Urban Renewal Plan relates to the following guidance documents adopted by the City: ORS 457.085 requires that an Urban Renewal Plan relate to local objectives. The Comprehensive Plan considers a wide range of goals and policies relating to land uses, transportation, public utilities, economic development, and housing, and serves as the guiding document to which this Plan relates. The Comprehensive Plan establishes a policy framework rooted in a factual basis that helps inform other critical planning documents and implementing tools that together serve as a coordinated, overarching strategy for the City. This approach establishes the structure for how the City works and the types of services that it provides. Ultimately, the Comprehensive Plan outlines the direction the City will take when planning for land use and informs all land use decisions and actions, including how land is developed and services are provided. If the primary goals for the Comprehensive Plan change, the goals, and policies for the Plan should be revised to appropriately reflect those changes. Specific goals and policies found in the Comprehensive Plan concerning Area conditions and challenges are Chapter 9 — Ecorioniic Development Goals 1. Expand, improve, and diversity the economy of the Redmond Urban Growth Boundary area while maintaining Redmond's quality of life. 3. Retain or create industrial, office, professional service, technology, medical, tourism, retail and otherjobs through expansion and retention of existing businesses and recruitment of new businesses. 4. Improve the appearance of the community's employment districts, particularly along Highways 97 and 126, the Downtown, central east side industrial areas, and the Airport/Fairgrounds area. 9. Provide, maintain, and promote the enhancement of state of the art infrastructure, including, but not limited to, transportation systems, water, sewer, natural gas, power, telecommunications and air service to support the commercial and industrial needs of the community. 11. Maintain Redmond's favorable employment to housing ratio by taking affirmative steps to ensure economic development and employment growth keeps pace with population growth, especially for industrial employment. -1�. To build a strong and thriving regional economy by coordinating public investments, policies, and regulations to support regional and state economic development objectives in Central Oregon as determined through the Central Oregon Large Lot Industrial Land Needs Analysis. Policies 9. The City should give a high priority to extending and improving the infrastructure needed for economic development. www.lelandconsulting.cor n S Redmond US 97 Urban Renewal Area I Urban Renewal Plan 10. The City shall provide an incentive program encouraging the development of primary industry family wage jobs. 11. The City should provide incentives and innovative ways to encourage and promote an inventory of available industrial buildings and a pre -approved process to attract industrial uses. 12. General Objectives b. Encourage landscaping and other forms of city beautification for the purpose of enhancing the physical character of each area, and the overall city. f. Focus community efforts to improve the overall appearance of existing commercial areas and similar considerations encouraged to all new developments. i. Rehabilitate or re -develop older commercial areas in order to retain their values to the community, including the Downtown and Highway 97 corridor after the highway is re-routed to a limited access corridor. 33. Commercial development adjacent to arterial streets and State highways shall be subject to access restrictions. 34. C-1 commercial development along Highway 97 shall be encouraged to provide service access roads which feed into arterial and collector streets at designated points. 46. The City recognizes the importance of maintaining a large -lot industrial land supply that is readily developable in Central Oregon. Findings: Plan's relationship to Chapter 9 — Economic Development. • The Plan's Industrial Opportunity Fund, Small Loan Program, and Incentive Funding project activities support Economic Development Goals 7, 3, 77, and 72 and Policies 70, 77, and 46 through programs that support the development or expansion of businesses and employment centers that retain and create job opportunities, help maintain a balance of jobs to housing, promote public -private and inter -agency coordination, and expand, diversify, and improve the local economy. • The Pion's public utility, power, gas, and telecommunications project activities support Economic Development Goals 9, 77, and 72 and Policies 9 and 46 by extending and improving Redmond's infrastructure to meet the commercial and industrial needs of the community, thereby supporting job growth, supplying readily developable large -lot industrial land, and helping the City coordinate investments to support regional and state economic development objectives in Central Oregon. • The Plan's transportation project activities support Economic Development Goals 4, 9, and 77 and Policies 33 and 34 by funding transportation investments that improve the appearance of transportation elements in the Area's employment districts, modify and enhance access and connectivity, and extend, develop, and improve infrastructure to serve the commercial and industrial needs of the community. • The Plan's transportation project activities support Economic Development Goals 7, 4, 9, and 72 and Policies 72(b)(fl(i) and 34 by improving the Area's physical appearance, accessibility, and navigability by various modes of transportation, and strengthening the identity and vitality of both the US 97 Corridor and the broader Area. Chapter 10 — Housing Goals Establish residential neighborhoods that are safe, convenient, and attractive places to live, which are located close to schools, parks, shopping, and employment centers. www.lelandconsulting.com S Redmond US 97 Urban Renewal Area I Urban Renewal Plan 5. Provide a broad range of accessible and affordable housing. 6. Provide for higher densities in proximity to schools, services, parks, shopping, employment centers, and public transit. Policies 23. Criteria for the location of multifamily housing shall include proximity to the City core, neighborhood commercial centers, major transportation corridors, schools, services, parks, shopping, employment centers, and transit corridors. Findings: Plan's relationship to Chapter 10 — Housing. • The Plan's transportation and utility infrastructure project activities support Housing Goals 3, 5, and 6 and Policy 23 by reducing the cost burden on developers, thereby improving the prospects of new housing development, and potentially increasing the probability of higher density developments. • The Plan's development assistance and incentive funding program activities support Goals 3, 4, 5, and 6 and Policy 23 by supporting employment growth along a major corridor, near shopping and employment centers, and near services. Chapter 11— Public Facilities and Services Goals 1. To provide for a close correlation between the provisions of urban services and urban development in order to bring about a more orderly and efficient development pattern, and thereby avoid unnecessary tax burdens and excessive utility costs normally associated with scattered, unrelated development. 2. To achieve a balance of public costs vs. benefits/revenues in the provision of public facilities and services. 3. To provide public and private utility systems - water, sanitary and storm sewer, energy, communications, garbage, and recycling - at levels necessary and suitable for existing and proposed uses. 5. Public facilities shall be available or under construction prior to the issuance of Building Permits. Policies 2. The City should establish revenue sources to pay for its planned capital improvements. 3. The City Council should investigate funding alternatives to property taxes for funding public facilities and services. 11. The City shall continue to develop, operate, and maintain a water system, including wells, pumps, and reservoirs, capable of serving all urban development within the UGB. 15. Storm drainage facilities such as dry wells, landscaping, retention ponds or storm drains shall be used to control surface drainage. 26. The City shall encourage Natural Gas providers to provide service throughout the UGB area. 27. Property for future fire station locations should be planned for and purchased in advance in order to save costs of facility zoning construction. Attempts shall be made to combine future stations with other government entities in order to reduce infrastructure and operations costs. www.lelaridconsultirig.con i 10 S Redmond US 97 Urban Renewal Area I Urban Renewal Plan Findings: Plan's relationship to Chapter 11 — Public Facilities and Services. • The Plan's public utility, power and gas, and communications projects support Goals 7, 2, and 3 and Policies 77, 75, and 26 by providing infrastructure deemed critical to attracting desired users to the Area and by providing the necessary infrastructure for existing businesses and industries to expand operations. • The Plan's Fire Station project supports Goal 5 and Policy 27 by providing funding for a new fire station to serve south/southeast Redmond. • The Plan supports Policies 2 and 3 by providing additional funding methodologies and funding alternatives to pay for and leverage planned capital improvements and programs. ® The Plan's Industrial Opportunity Fund, Incentive Funding, and Small Loan Program activities support Goals 7, 2, 3, and 5 and Policies 77, 75, and 26 by encouraging and accelerating the timing of the construction of critical infrastructure deemed necessary for the expansion of existing businesses and establishment of new users. Chapter 12 s Transportation Goals 1. Reduce through traffic, congestion, and improve circulation along Highway 97. 2. Enhance east/west circulation. 3. Identify roadway system needs to serve undeveloped areas so that steps can be taken to preserve rights -of - ways and maintain adequate traffic circulation. 4. Increase the use of alternative travel modes through improved safety and service. Objectives 1b. Improve intersection operations by adding left -turn phases, installing additional traffic signals, actuating and coordinating traffic signals, and/or increasing sight distance as needed. 2a. Develop a safe and efficient east -west arterial and collector system 2b. Enhance existing crossings and determine the best locations for additional crossings of Dry Canyon, Highway 97, Pilot Butte Canal, and BNSFRR line to link east and west Redmond. 3a. Integrate new arterial and collector routes into the existing city grid system. 4a. Provide additional sidewalks and improve existing sidewalk pavement for pedestrian safety and access. 4b. Provide additional bicycle routes and plan regular maintenance of existing routes for bicycle safety and access (per Redmond Bicycle Master Plan). 4c. Provide pedestrian and bicycle access, especially when direct motor vehicle access is not possible. Policies 3. The function of existing and planned roadways as identified in the Redmond Urban Area Transportation Plan shall be protected through the application of appropriate access control measures. 10. The City shall work to acquire and develop a trail system that utilizes Redmond's irrigation canal system. 16. Sidewalks shall be included on all new streets except limited access roads or where equivalent alternative pedestrian circulation is provided in the UGB. Retrofitting existing streets with sidewalks shall proceed on a prioritized schedule. 20. Wherever practical, access to the highway will be provided via frontage roads, alternative local roads, or other means, rather than direct access to the highway. www.lelandconsulting.com 11 S Redmond US 97 Urban Renewal Area I Urban Renewal Plan 22. A non -traversable median should be installed on the highway when operational or safety issues warrant inslallalion. Directional breaks in the median will be provided as needed to provide safe traffic operation. 24. Medians installed in the state highways should provide bicycle and pedestrian crossings at least every 1/4 mile. 34. The City shall improve east -west and north -south traffic patterns in the central part of lime corm-nunity. 38. Alleys shall be an option in new residential areas, providing rear access and backyard parking. FINDINGS: Plan's Relationship to Chapter 12 — Transportation. • The Plan's transportation improvement projects support Goals 1 and 3, Objective 1b, and Policies 3, 22, 24 by improving safety, efficiency, and operations through access and median treatments, supporting the development of new connections and alternatives routes to serve existing and underserved areas, and reducing through traffic by encouraging other modes of transportation. • The Plan's US 97, local street, alley, and access improvement projects support Goals 1, 2, 3, and 4, Objectives 1h, 2a, Ph, and .3a, and Policies 20, 34, and 38 by enhancing crossings, improving intersection operations, addressing access through new alleys and alternative routes, and implementing circulation improvements necessary for new development. • The Plan's canal improvement contribution, mixed -use path, US 97 median treatments, sidewalk improvements, and pedestrian infrastructure project activities support Goal 4, Objectives 2a, 4a, 4b, and 4c, and Policies 70, 76, and 24 by providing safer or alternative routes for pedestrians and bicyclists in the US 97 corridor and the surrounding streets, enhancing multimodal connections throughout the Area. • Additionally, transportation improvements may be a key component of several projects in the Plan, such as the Industrial Opportunity Fund, which is intended to support o wide range of investments and project activities that will leverage private development. Chapter 15 — Livability Goals 1. The City of Redmond shall create and maintain livability. The City of Redmond shall guide development and support community identity and pride by implementing policies that improve livability and are innovative creating a high quality of life, ample family -wage jobs, and a safe environment in which to raise and educate families. Policies 8. Redmond shall plan for a variety of transportation choices. 9. Redmond shall plan for and promote attractive streetscapes free from clutter, confusion, and blight. 10. Redmond shall develop safe, reliable, and economical transportation choices to decrease household transportation costs, improve air quality, reduce greenhouse gas emissions, and promote public health. 11. The City of Redmond shall develop and maintain the environment that promotes and supports a strong, healthy, and diverse economic base. 12. Redmond shall promote economic competitiveness through sustainable choices for housing, transportation, education, cultural diversity and enrichment, and recreational opportunities as well as improve reliable and timely access to employment centers, educational opportunities, services, and other basic needs by workers. 13. Redmond shall help existing businesses within the City to grow and thrive. www.lelandconsulting.com 12 S Redmond US 97 Urban Renewal Area I Urban Renewal Plan 14. Redmond shall help to create and foster new businesses of all types. 15. Redmond shall provide well planned and maintain high -quality infrastructure to provide a competitive advantage for business and community growth. Findings: Plan's Relationship to Chapter 15 — Livability. ® The Plan's transportation -related projects, such as US 97 improvements, local improvements, pedestrian connections, and other related projects, support Goal 7 and Policies 8, 9, 70, 77, and 72 by providing pedestrian and bicycle infrastructure to encourage walking and cycling, improving streetscapes by addressing blighted conditions (such as lacking sidewalks) and funding beautification efforts, and planning for improved access to current and future employment centers. ® The Plan's Industrial Opportunity Fund, Small Loan Program, and Incentive Funding project activities support Goal 1 and Policies 77, 72, 73, 74, and 75 by providing funding to existing and future businesses to grow and create new employment opportunities. ® The Plan's public utility, power and gas, and communications projects support Goal 1 and Policies 72, 73, 75 by providing high -quality infrastructure as a catalyst for growth. The Plan objectives include: 1. Improve safety for drivers, bicyclists, and pedestrians. 2. Create opportunities for new development in the Area. 3. Provide adequate access to businesses along the US 97 corridor for both customers and freight/delivery. 4. Increase connectivity to surrounding neighborhoods. 5. Develop infrastructure to incent development in the Area. 6. Implement the goals and objectives of the 2020 Comprehensive Plan. Findings: Plan's Relationship to Urban Renewal Plan Objectives. The following project activities support Urban Renewal Objective 1 of improving safety for drivers, bicyclists, and pedestrians by funding projects along US 97 and existing and planned local connections, including raised medians and traffic signal systems to allow protected left-hand turning movements and U-turns at signalized intersections, as well as providing areas for safe pedestrian refuge; pedestrian and bicycle facilities; connections to a new shared -use path; and new access roads or alleyways to provide alternative access where new connections provide safe ingress and egress nearby. ® US Highway 97 Projects ® Local Transportation Projects The following project activities support Urban Renewal Objective 2 of creating opportunities for new development in the area by funding projects that improve the quality and increase the capacity of infrastructure necessary to support the commercial and industrial needs of the community, and by providing programs that incentivize and catalyze new private investment in the Area. ® Public Utilities ® Industrial Development Opportunity Fund www.lelandconsulting.com 13 S Redmond US 97 Urban Renewal Area I Urban Renewal Plan • Small Loan Funding • Incentive Funding The following project activities support Urban Renewal Objective 3 of providing adequate access to businesses along the US 97 corridor for both customers and freight/delivery by funding median treatments, addressing access through new alleys, adding new connections and alternative routes to serve existing and underserved areas, enhancing pedestrian crossings and intersection operations, and reducing unnecessary through -traffic by encouraging other modes of transportation. • US Highway 97 Projects • Local Transportation Projects The following project activities support Urban Renewal Objective 4 of increasing connectivity to the neighborhoods by funding transportation projects that will add new connections and alternative routes to serve existing and underserved areas, improve local streets to provide pedestrian and bicycle infrastructure, improve intersection operations, implement circulation improvements, and enhance crossings and access. • US Highway 97 Projects • Local Transportation Projects • Canal Improvement Contribution The following project activities support Urban Renewal Objective S of connecting infrastructure for large lot industrial lands to intent development by improving the quality and increasing the capacity of Redmond's infrastructure to support the commercial and industrial needs of the community, and by providing funding programs that assist with the development of critical infrastructure for underserved areas. • Public Utilities • Industrial Development Opportunity Fund • Small Loan Funding • Incentive Funding • Natural Gas/Power Improvements • Communications Improvements The following project activities support Urban Renewal Objective 6 of implementing goals and objectives of the 2020 Comprehensive Plan, as identified in Section 400A. • US Highway 97 Projects • Local Transportation Projects • Fire Station • Public Utilities • Industrial Development Opportunity Fund • Small Loan Funding • Incentive Funding • Natural Gas/Power Improvements • Communications Improvements • Canal Improvement Contribution www.lelandconsulting.corn 14 S Redmond US 97 Urban Renewal Area I Urban Renewal Plan The Corridor Plan references several plans and describes its relevance to many goals and objectives of these plans. The plans include: • Transportation Planning Rule (OAR 660-012) (Refreshed 2020) • Oregon Highway Plan Amendment (2018) • Statement Transportation Improvement Program (STIP) (2018) • Oregon Freight Plan Amendment (2017) • Oregon Bicycle and Pedestrian Plan (2016) • Oregon Transportation Safety Action Plan (TSAP, 2016) • Oregon State Rail Plan (2014) • Oregon Resilience Plan (OSP) (2013) • ODOT Highway Design Manual (HDM) (2012) • Oregon Intersection Safety Implementation Plan (ISIP) (2012) • Oregon Aviation Plan (2007) While this section does not reiterate this Urban Renewal Plan's relationship to these plans and their objectives, it is assumed that due to the extensive processes undertaken during the Corridor Plan's development and the resulting recommended projects that now form the basis of this Urban Renewal Plan, the Corridor Plan adheres to most, if not all, of the same plans and objectives. Additionally, the Corridor Plan was also adopted into the City's Transportation System Plan. 11 'i'�,' • ' 1 The map on the following page, the "Comprehensive Plan and Zoning Map" describes the locations of the principal land use classifications which apply to the Urban Renewal Area. This includes the type, location, and density of land development and redevelopment permitted in the future. The Comprehensive Plan Map is the same as the Zoning Map. The land use plan for the Urban Renewal Area is consistent with the Redmond Comprehensive Plan. The land use classifications are described below. The Land Use Plan consists of the Comprehensive Plan and Zoning Map and the descriptive material and regulatory provisions contained in this Section (both those directly stated and those included by reference). This Plan shall be in accordance with the Redmond Comprehensive Plan and the Redmond Development Code, and with their implementing ordinances and policies. The zoning and development code serve as the major implementation mechanism of the Comprehensive Plan. Ordinances controlling the use and construction on the land, such as building codes, sign ordinances, subdivision and zoning ordinances, shall be adopted to carry out the Plan. The use and development of land in the Urban Renewal Area shall be in accordance with the regulations prescribed in the Redmond Comprehensive Plan, the Redmond Development Code, Zoning Provisions, Subdivision Ordinance, City Charter, or any other applicable local, county, state or federal laws regulating the use of property in the Urban Renewal Area. www.lelandconsulting.com 15 S Redmond US 97 Urban Renewal Area I Urban Renewal Plan www.lelandconsulting.com 16 S Redmond US 97 Urban Renewal Area I Urban Renewal Plan patterns, should be developed for such purpose. In addition, this zone allows for high -density residential development in these areas where such development will not adversely affect commercial development in the zone as a whole. C5 —Tourist Commercial. To provide for commercial uses primarily oriented to travelers and tourists in locations complementary to existing facilities and future major transportation facilities and to provide incentives for public and private investments in traveler and tourist -related complexes. R4 — General Residential. To provide high -density residential neighborhoods with a mix of single-family residences, duplexes, and some conditionally permitted multi -family residential development. Limited commercial uses such as offices are also conditionally permitted where compatible with surrounding development. R5 — High -Density Residential. To provide high -density residential neighborhoods with an emphasis on multi- family development and smaller lot single-family and duplex developments. Limited commercial uses such as offices are also conditionally permitted where compatible with surrounding development. M1— Light Industrial. To provide for light industrial uses such as light manufacturing, research, transportation facilities, and similar uses which have a limited impact on surrounding properties and are compatible with clean non-polluting industries along with limited office and commercial activities which support these light industrial uses. Large Lot Industrial. The South Redmond Tract, located directly south of the Deschutes County Fair & Expo Center, is planned for 50 to 200-plus acre parcels for manufacturing or tech production industries. Staffing for these industries could be anywhere from two to 10 employees per acre. It is intended to appeal to technology and other light industrial, low impact uses that require large parcels of land. The land also abuts the airport and the highway, providing excellent transportation access. The recent annexation of the land follows years of discussions and analysis at the local, regional, and state level. The 2012 Regional Economic Opportunity Analysis served as the basis for the Large Lot Annexation project and is supported by both the Regional Large Lot Industrial Program and the Central Oregon Large Lot Industrial Land Needs Analysis. The Urban Renewal Agency shall be notified of any Comprehensive Plan/Zoning amendment application, building permit, conditional use, or other development permits requested within the Area. Redevelopers, as defined in this Plan, shall comply with the Redeveloper's Obligations, Section 800 of this Plan. C. Development Standards Standards for future street and utility improvements are summarized below. Streets The 2010 Standards Specification Design Standards provide the Minimum Street design standards for the City of Redmond. Street standards are generally in conformance with the American Association of State Highway and Transportation Officials (AASHTO) Geometric Design of Highways and Streets, 2004 edition. General street right www.lelandconsulting.com 17 S Redmond US 97 Urban Renewal Area I Urban Renewal Plan of way, roadway design, and cross-section standards are provided in Section II.A.-I. Table "I, and City of Redmond Standard Drawing 2 1. Roadway functional class is determined by using the City's most current Transportation System Plan (TSP). Local transportation projects within the US97 South Redmond Corridor project include local roads, major collector roads, and commercial alley improvements. The South Redmond Tract large lot industrial parcels require streets designed to the City's industrial roadway standard. Utilities The 2010 Standards Specification Design Standards provide the minimum utility design standards for the City of Redmond. Stormwater systems are designed in accordance with the latest version of the Central Oregon Stormwater Manual (COSM). The City includes special provisions to the COSM in section II.13.2 of the 2010 Standard Specifications Design Standards. Underground Injection Control (UIC) systems such as dry wells are generally used throughout the City to provide quality and control for stormwater flows. Water and Sewer facilities are designed per the Oregon State Health Department, Oregon Department of Environmental Quality (DEQ), and the American Public Works Association (APWA) standards. Ductile iron pipe is currently the only approved material for water lines. Utility trenches and conduit must comply with Section E of the Design Standards and sections 101 and 212 of the City's Standards and Specifications. The Urban Renewal Project consists of activities and actions which treat the causes of blight and deterioration in the South Redmond US 97 Urban Renewal Area. Large vacant sites and low utilization ratios of properties, deteriorated and substandard buildings/improvements, significant building vacancies, inadequate and incomplete street and sidewalk systems, and inefficient and unsafe traffic conditions have been identified as issues contributing to depressed conditions and values in the Area. The conditions also pose a constraint that will encumber successful future development envisioned and identified in the Comprehensive Plan. Project activities to treat these conditions include: a. Transportation projects, including • US 97 improvements, including new medians, signals, and beautification of US 97. • New local streets to improve access, increase east -west connections, and provide a safer, more attractive multimodal environment. • Construction of sidewalks, landscaping, signage, and other streetscape improvements. b. Street and sidewalk improvements to improve multimodal safety and circulation. c. Acquisition and disposition of land for public improvements, rights -of -way, and utility improvements. d. Infrastructure projects, including: • Public utilities, including water, sewer, and slorrriwaler in(raslruclure. • Power and gas infrastructure. • Communications infrastructure. e. Funding and incentive programs to support economic development objectives, business expansion, employment growth, and other desired Plan outcomes. f. Administration and coordination of development in the Urban Renewal Area. Section 700, below, provides further descriptions of each urban renewal project to be undertaken within the Urban Renewal Area. www.lelandconsulting.corn 18 S Redmond US 97 Urban Renewal Area I Urban Renewal Plan Several studies, reports, and plans that preceded the Plan development clearly articulate the need for these projects and justify the recommended project budgets in the Plan. These include the Transportation System Plan, Water System Plan, and the Corridor Plan. Urban renewal projects authorized by the Plan are described below.' Table 1. Urban Renewal Projects and Approximate Implementation Source: LCG and GEL Oregon The City's Corridor Plan, in partnership with ODOT, included several recommended improvements, including: ® US 97 road construction. Repair and replace existing pavement conditions along US 97, acquire additional right-of-way as necessary. ® Raised medians. Traffic separators between the northbound and southbound lanes on US 97 allowing protected left-hand turning movements and U-turns at signalized intersections, as well as providing areas for safe pedestrian refuge halfway across US 97 to enhance pedestrian crossings. ® Pedestrian and bicycle facilities. New sidewalks and cycle track treatments throughout the length of the corridor to provide a more well-connected active transportation network. ® Traffic signal systems. Three new signalized intersections along US 97 that allow protected U-turns. ® Gateway Treatment. A signature gateway design at the south end of the US 97 Corridor will enhance the corridor as a regional destination and to improve the corridor as a welcoming route and entryway to downtown Redmond, local neighborhoods, the airport, fairgrounds, and areas further south in Central Oregon. These improvements aim to realize the following vision for the future of the South Redmond US 97 Corridor: 2 ORS 457.085 (2)(a) requires a description of each project. ORS 457.085 (3)(d) requires the cost of each project and source of funds. ORS 457.085 (3)(e) requires anticipated completion dates. See Report for details about cost and schedule. www.lelandconsulting.com 19 S Redmond US 97 Urban Renewal Area I Urban Renewal Plan "The Soulh US 97 Corridor is a vibrant business district that is safe and accessible to shoppers traveling by car, bus, bike, or on foot. The corridor is aesthetically pleasing and provides opportunities for business and community interaction. Traffic moves efficiently and at a reasonable speed in both the north -south and east -west directions." Initial ODOT funding will be used to help develop phasing and begin some of the advanced development work. Most of the remaining construction is intended to begin between 2024 to 2027. While there is currently no agreement in place between the City of Redmond and ODOT stipulating responsibilities, it is assumed that the City will be required to provide funding to complete the project in its entirety to match the Corridor Plan. As such, funds available through the Urban Renewal Area are critical to transforming the US 97 Corridor to the Redmond community's vision. Figure 4. Concept illustration of the South. -Gateway www.lelandconsulting.com 20 S Redmond US 97 urban Renewal Area I Urban Renewal Plan Figure 5. Proposed US 97 Cross Section Source: SERA .630TOMMITIMISTOR • Local transportation projects include collectors and distributors, and local streets. These projects are informed by the Corridor Plan, the City's TSP, and other information provided by City staff. Funds available through urban renewal are expected to fund a variety of projects, including: • Connection road construction. Three new road connections that cross the canal and connect US 97 to Redmond neighborhoods on the west side of US 97. • Connections to the new shared -use path along Canal Boulevard and the canal itself. • A limited number of new access roads or alleyways to provide alternative access where new connections provide safe ingress and egress nearby. • Pedestrian and bicycle facilities. New sidewalks and cycle track treatments along east/west connecting roads to provide a more well-connected active transportation network. • New streets. Improve connectivity, circulation, and access throughout the Area with new or extended local streets. These streets include those not yet defined, such as the 19' Street extension into the South Redmond Tract. These transportation projects are intended to provide a transportation network in the Area that supports the efficient movement of traffic, and a vibrant business district that is safe and accessible to customers traveling by car, bus, bike or on foot, with comfortable, interesting, and attractive streetscapes, especially along designated pedestrian streets. The City is expected to include many of these projects in the Transportation System Plan (TSP) and fund them through system development charges (SDCs) and other sources. However, at present, just one new street connection at Quartz is currently planned and budgeted for in the City's TSP. Urban renewal is not expected to fund the entire cost of each project. Urban Renewal funds are critical to accelerating the timing of these projects for economic development purposes and realizing currently untapped development and employment potential. www.lelandconsulting.com 21 S Redmond US 97 Urban Renewal Area I Urban Renewal Plan Figure 6. Recommended Corridor Plan Concept PROPOSED IMPROVEMENTS Kvi x41 Canal CrussxnganwdaGaut Median et, V&aviq f4apmenent 1 4", Plaftnod Multi -Use Path JJ Reindee, Q, :f Gateway Marke, W _1 EXISTING T, 4"I'm ?y 4C, vf, � www.Iolandcon,-uIting.com 22 S Redmond US 97 Urban Renewal Area I Urban Renewal Plan The following public utility projects are intended to address infrastructure deficiencies in the Area. This list includes the development of sewer, stormwater, and water infrastructure to support the development and expansion of businesses in the Area. It also includes the construction of new stormwater facilities, repair of existing sewer lines, and extension or enlargement of existing water and sewer lines as needed to support desired development. These projects will be largely funded and implemented by the City using non-TIF sources. However, including these projects in the Plan allows the City to provide gap funding assistance to developer -initiated projects and accelerate implementation as required to serve new development in the Area. As such, additional money, funded through tax increment financing, is available through the programmatic elements of the project list as needed for public utility improvements. In order to better serve the community in the south/southeast part of Redmond, a new fire station will be constructed to reduce response times and serve new and existing commercial and residential users. As development potential is realized in the Area, lower response times are necessary, especially for users with a higher risk of fire and other hazards. While neither the specific location nor the cost is currently known and could be outside of the proposed boundaries, the Plan includes the possibility of a partnership for the development of a new fire station.3 This project activity includes a fund for public investments to support industrial development in the Area. Industrial development is a key component of realizing the City's employment growth opportunities, particularly in the South Redmond Tract. However, major new development is challenging in many places, primarily due to the lack of infrastructure in large vacant tracts of land. While there is currently an agreement in place for the payment and construction of basic infrastructure on the lands that were recently annexed into the City, additional infrastructure investments and improvements are necessary for the area to better accommodate new industrial development. To support and enhance this development, the Industrial Development Opportunity Fund is a flexible fund to help pay for the cost of public infrastructure required to support new development and business activity. The Opportunity Fund reduces the financial burden of new development by providing gap financing to help prepare shovel -ready sites, thereby accelerating the timing of desired new employment -focused industrial development in the Area. The Opportunity Fund will include eligibility and other important funding criteria, to be developed upon the adoption of this Plan. Assistance could take the form of gap financing (low or no interest loans), infrastructure (roads, sidewalks, utilities), and other tools. 3 ORS 457.085 (2)(j) describes additional requirements for public buildings. HB 2174 narrowly defined public buildings as fire station, police station, public library, hospital, capitol building, school, college, university, city hall, etc. www.lelandconsulting.com 23 S Redmond US 97 Urban Renewal Area I Urban Renewal Plan F. Small Loan Program As part of the City's effort to retain existing businesses within the South Redmond Highway 97 Urban Renewal Area, the Small Loan Program provides direct low -interest and/or interest -free and/or forgivable loans to help small businesses through challenging economic conditions. This program fills a niche not provided through traditional lending markets. This program is available to existing companies maintaining and or expanding operations in Redmond. The Small Loan Program will include eligibility and other important funding criteria, to be developed upon the adoption of this Plan. The Program is expected to assist business owners with their operating requirements during periods of economic stress created by events beyond the business's control. The Small Loan Program is anticipated to help retain economic vitality and property values within the Urban Renewal Area and Redmond through the restoration, rehabilitation, or expansion of existing properties and businesses. As part of the City of Redmond's effort to enhance business vitality and support desired development within the South Redmond US 97 Urban Renewal Area, Incentive Funding allows the Urban Renewal Agency to partner with property owners and developers to rehabilitate or redevelop property that will better serve the Area and the greater Redmond community. Assistance could take the form of direct developer assistance, grants, reimbursements, and or system development charge (SDC) credits for contributions to the transportation and utility system. The Incentive Funding program will include eligibility and other important funding criteria, to be developed upon the adoption of this Plan. The Incentive Funding program is anticipated to help ensure economic growth, vitality, and property value increases within the Urban Renewal Area and Redmond. The City may provide funding to accelerate the timing or upgrade the capacity of natural gas or power infrastructure. Investments in both gas and electricity are critical to accommodate a range of uses, including but not limited to industrial manufacturers and other significant employment -generating users. While the construction of gas and power infrastructure is user -driven and paid for and constructed by Cascade Natural Gas and Pacific Power, respectively, to respond to user demands, this project activity allows the City to incentivize system upgrades that would not otherwise occur. As such, additional money, funded through tax increment financing, is available through the programmatic elements of the project list as needed for gas and power improvements. • •,11170M. Communications Improvements include telephone and high-speed internet infrastructure. Broadband and other communications improvements are important for economic growth and business vitality. Broadband is the underpinning for some of today's most important transformations in business activity and government services. www.IolandconsuIting.com 24 S Redmond US 97 Urban Renewal Area I Urban Renewal Plan While the City is not responsible for the cost of communications upgrades and improvements, this project activity provides seed funding to accelerate the timing of specific improvements to attract desired development projects. As such, additional money, funded through tax increment financing, is available through the programmatic elements of the project list as needed for communications improvements. The Central Oregon Irrigation District (COID) plans to pipe 8.1 miles of canal from Smith Rock to Bend, approximately one -quarter of which is located within the Urban Renewal Area. Once the piping is complete, the land will support road construction without additional structural'reinforcements, significantly reducing the cost of construction. As the new east -west transportation connections identified in Section 700(B) do not include funding for bridge structures, the new streets in this section are directly tied to the piping of the canal. Connections to the new shared -use path along the canal are also directly tied to the piping project. COID has yet to secure funding for piping the canal in the Area and may not do so for several years. Urban Renewal funding is therefore critical to providing gap financing to accelerate the timing of the piping project and other related transportation projects. Figure 7. Multi -use Path Concept Illustration* M Source 2072 Corridor Plan * Due to new plans for the area since the development of the 2072 Corridor Plan, including the canal piping project, the illustration depicts an open canal, however the canal will eventually be rerouted via underground pipes. This Plan provides for effective administration to complete the various activities contained within. Project funds may be utilized to pay indebtedness associated with the preparation of the Plan, to carry out design plans, miscellaneous land use and public facility studies, engineering, market, and other technical studies as may be needed during the duration of the Plan. www.lelandconsulting.com 25 S Redmond US 97 Urban Renewal Area I Urban Renewal Plan This calegury allows for repayrrient of costs associated with the implementation of the Plan, including but not limited to ongoing administration and financing costs associated with issuing long and short-term debt, relocation costs, and other administrative costs. Project funds also may be used to pay for personnel and other administrative costs incurred in the management of the Plan, such as the preparation of annual reports (ORS 457.060, HB 2174). The Plan authorizes the acquisition and disposition of property as described in this section. Property includes any and all interests in property, including fee simple ownership, lease, easements, licenses, or other rights to use. If a property is acquired it will be identified in the Plan through a Minor Amendment, as described in Section 1000. Identification of property to be acquired and its anticipated disposition is required by ORS 457.085(y). It is anticipated that the acquisition of real property will be necessary to carry out public use objectives of this Plan. These objectives include right-of-way acquisition for streets, roads, alleys, bicycle and pedestrian ways, utility rights -of -way, and other public improvements, uses, and facilities described in Section 700 of this Plan. Before the acquisition, this Plan shall be amended to identify the specific property or interest to be acquired. The Agency may acquire any property within the Area for the public improvement projects undertaken pursuant to the Plan by all legal means, including the use of eminent domain, as descrihed in CARS 4%1454 Gnnd faith negotiations for such acquisitions must occur before the institution of eminent domain procedures. The Agency will dispose of property acquired for a public improvement project by conveyance to the appropriate public agency responsible for the construction and/or maintenance of the public improvement. The Agency may retain such property during the construction of the public improvement. The Agency may dispose of property acquired by conveying any interest in property acquired. Property shall be conveyed at its fair reuse value. Fair reuse value is the value, whether expressed in terms of rental or capital price, at which the Urban Renewal Agency, in its discretion, determines such property should be made available so that it may be developed, redeveloped, cleared, conserved, or rehabilitated for the purposes specified in the Plan. Because fair reuse value reflects limitations on the use of the property to those purposes specified in the Plan, the value may be lower than the property's fair market value. Where property is sold or leased, the purchaser or lessee must agree to use the property for the purposes designated in the Plan, and to complete the buildiny of its improvements within a period of tirne that the Agency determines is reasonable. 4 ORS 456.145 refers to the appropriate use of eminent domain in the State of Oregon (URL: https //www oregonlaws org/ors/4`56145 www.lelaiidconsulting.com 26 S Redmond US 97 Urban Renewal Area I Urban Renewal Plan Redevelopers within the Urban Renewal Area will be subject to controls and obligations imposed by the provisions of this Plan. Redevelopers also will be obligated to the following requirements: 1. The Redeveloper shall develop or redevelop the property per the land use provisions and other requirements specified in this Plan. 2. The Urban R.Onewal Agency may require the redeveloper to execute a development agreement acceptable to the Urban Renewal Agency as a condition of any form of assistance by the Urban Renewal Agency. The Redeveloper. shall accept all conditions and agreements as may be required by the Urban Renewal Agency. 3. The Redeveloper shall submit all plans and specifications for the construction of improvements on the land to the Urban'Renewal Agency or its designated agent, for review and approval before distribution to reviewing bodies as required by the City. 4. The Redeveloper shall commence and complete the development of such property for the use provided in this Plan within a reasonable period of time as determined by the Agency. 5. The Redeveloper shall not affect any instrument whereby the sale, lease, or occupancy of the real property, or any part thereof, is restricted on the basis of age, race, color, religion, sex, marital status, or national origin. The Agency will provide required relocation assistance to all persons or businesses displaced by project activities. All persons or businesses which may be displaced will be contacted to determine such relocation needs. Available space information and financial assistance available will be provided based on relocation needs. Those persons or businesses that are displaced will be given financial assistance in finding replacement facilities and moving assistance. All persons or businesses which may be displaced will be contacted to determine such relocation needs. They will be provided information on available space and will be assisted in moving. All relocation activities will be undertaken and payments made per the requirements of ORS 35.500 to 35.530 and any other applicable laws or regulations. Relocation payments will be made as provided in ORS 35.510. Payments made to persons displaced from dwellings will assure that they will have available to them decent, safe, and sanitary dwellings at costs or rents within their financial capability. Payment for moving expenses will be made to residences and businesses displaced. The Redmond Renewal Agency may contract with the Oregon Department of Transportation (ODOT), or other appropriate agencies or parties for assistance in administering its relocation program. It is anticipated that this Plan will be reviewed periodically during the execution of the Project. The Plan may be changed, modified, or amended as future conditions warrant. All amendments shall be governed by state and local laws and ordinances. www.lelandconsulting.com 27 S Redmond US 97 Urban Renewal Area I Urban Renewal Plan A. Minor Amendments Minor changes to the Plan shall be made by a duly approved resolution of the Agency which describes the details of the minor change. Minor changes shall include: 1. Identification of property to be acquired or any purpose outlined in Section 750 of this Plan. 2. Changes to the Plan which are not specifically identified as requiring a Substantial Amendment or a Minor Amendment requiring Council Approval. �11111111 Council -approved amendments to the Plan shall require only approval by the Agency by Resolution and approval by the City Council by Non -Emergency Ordinance. Council -approved amendments are: 1. Addition of a. project, activity, or program that differs substantially from a project, program, or activity in the Plan, and is estimated to cost in excess of the equivalent of $500,000 in 2020 dollars throughout the Plan. The $500,000 threshold shall be adjusted annually at a rate equal to the Construction Cost Index (CCI), also referred to as the ENR Index for Construction published quarterly by the Engineering News Record. 2. Identification of land for acquisition which requires Council approval per Section 750 of this Plan. 3. Changes or modifications to the goals and objectives of this Plan, which in the Agency's discretion, warrant Council Approval. i . Substantial Amendments Substantial Amendments shall require the notice, hearing, and approval procedures required by statute. Substantial amendments consist of: 1. Adding land to the Urban Renewal Area, except for an addition of land that totals not more than one percent (1%) of the existing area of the Plan. 2. Increasing the maximum amount of indebtedness (excluding bonded indebtedness issued to refinance or fund existing bonded indebtedness) to be issued under the Plan. 3. Adding a public building(s) not identified in the Plan. 4. Any amendment defined by statute to be a substantial amendment. This Plan calls for a division of ad valorem taxes under ORS 457.440. No bonded indebtedness shall be issued with respect to the Plan, or any project undertaken with respect to the Plan later than June 30, 2042. www.lelandconsulting.com 28 S Redmond US 97 Urban Renewal Area I Urban Renewal Plan 1111I 1' 110HAVIDWIM The Plan will be financed using a combination of revenue sources. These include: • Tax increment revenues; • Advances, loans, grants, and any other form of financial assistance from federal, state, or local governments, or other public bodies; • Loans, grants, dedications, or other contributions from private developers and property owners, including, but not limited to, assessment districts; and • Any other public or private source. Revenues obtained by the Urban Renewal Agency will be used to. pay or repay the costs, expenses, advancements, and indebtedness incurred in (1) planning or undertaking project activities, or (2) otherwise exercising any of the powers granted by ORS Chapter 457 in connection with the implementation of this Plan The Urban Renewal Agency may borrow money and accept advances, loans, grants, and other forms of financial assistance from the federal government, the state, city, county or other public body, or from any sources, public or private for the purposes of undertaking and carrying out this Plan. In addition, the Agency may borrow money from, or lend money to a public agency in conjunction with a joint undertaking of a project authorized by this Plan. If such funds are loaned, the Agency may promulgate rules and procedures for the methods and conditions of payment of such loans. The funds obtained by the Agency shall be used to pay or repay any costs, expenses, advances, and indebtedness incurred in planning or undertaking project activities or in otherwise exercising any of the powers granted by ORS Chapter 457. B. Tax Increment Financing It is contemplated that the Plan will be financed in whole or in part by tax increment financing, as authorized in ORS 457.420 through ORS 457.450. The Plan may be financed, in whole or in part, by tax increment revenues allocated to the Agency, as provided in ORS Chapter 457. The ad valorem taxes, if any, levied by a taxing district in which all or a portion of the Area is located, shall be divided as provided in Section 1c, Article IX of the Oregon Constitution, and ORS 457.440. Amounts collected according to ORS 457.440 shall be deposited into the unsegregated tax collections account and distributed to the Agency based upon the distribution schedule established under ORS 311.390. Any indebtedness permitted by law and incurred by the Urban Renewal Agency or the City in connection with preplanning for this Plan may be repaid from tax increment proceeds generated pursuant to this section. www.lelandconsulting.corn 29 S Redmond US 97 Urban Renewal Area I Urban Renewal Plan D. Establishment of Maximum Debt The maximum amount of indebtedness that may be issued or incurred under the Plan, based upon good faith estimates of the scope and costs of projects in the Plan and the schedule for their completion is $85,458,900. This amount is the principal of such indebtedness and does not include interest or indebtedness incurred to refund or refinance existing indebtedness or interest earned on bond proceeds. It does include initial bond financing fees and interest earned on tax increment proceeds, separate from interest on bond proceeds. 1300. CITIZEN PARTICIPATION This Plan was developed under the guidance of the Redmond Urban Renewal Agency. In the course of formulating the Plan, the Agency conducted. meetings on June 9, August 25, and October 6, 2020. All meetings of the Agency were open to the public for discussion and comment. The Redmond Planning Commission met to: review the Plan on July 20, 2020. The Redmond City Council held a public hearing on the adoption of this Plan on November 10, 2020. Additional notice on City Council adoption of the Plan was provided, as required by ORS 457.120. www.lelandconsulting.com 30 S Redmond US 97 Urban Renewal Area I Urban Renewal Plan www.lelandconsulting.com 31 EXHIBIT "A" SOUTH HIGHWAY 97 URBAN LOCATED 1N SECT'" TOWNSHIP 15 SC DESCHUTES COU, SOUTH HIGHWAY CONTAINS 1440 Ab (SEE DESCRIPTION, SCALE. I" = 2000' PREPARED JULY 3, 2020 RENEWAL AREA, n A !l !7 rl /1 ? Fl h d) n 7 7 POVEY AND ASSOC. LAND SURVEYORS P.O. 80X 131, REDMOND, OR 97756 (541) 548-6778 20-0780.DWG EXHIBIT . "B" DESCRIPTION - SOUTH HIGHWAY 97 URBAN RENEWAL AREA, LOCATED 1N SECTIONS 20, 21, 28, 29, 32 AND 33, TOWNSHIP 15 SOUTH, RANGE 13 EAST, W.M., DESCHUTES COUNTY, OREGON DESCRIPTION OF A TRACT OF LAND LOCATED IN SECTIONS 20, 21, 28, 29, 32 AND 33, TOWNSHIP 15 SOUTH, RANGE 13 EAST, WILLAMETTE MERIDIAN, DESCHUTES COUNTY, OREGON, DESCRIBED AS FOLLOWS: BEGINNING AT THE SOUTHEAST CORNER OF SAID SECTION 35; THENCE WEST ALONG THE SOUTH LINE OF SAID SECTION 33, 5296 FEET TO THE SOUTHWEST CORNER OF SAID SECTION 33; THENCE WEST ALONG THE SOUTH LINE OF SAID SECTION 32, 5232 FEET TO THE SOUTHEAST RIGHT-OF-WAY LINE OF THE BURLINGTON NORTHERN - SANTA FE (BNSF) RAILROAD, BEING 100 FEET FROM THE CENTERLINE OF SAID RAILWAY, • THENCE N29°E ALONG SAID SOUTHEAST RIGHT-OF- WAY LINE, 406 FEET; THENCE N61`W, PERPENDICULAR TO SAID CENTERLINE, 300 FEET THE INTERSECTION OF THE NORTHWEST RIGHT-OF-WAY LINE OF SAID RAILWAY AND THE WEST LINE OF THE SWI14 SWI14 OF SAID SECTION 32, SAID INTERSECTION BEING 200 FEET FROM THE CENTERLINE OF SAID RAILWAY; THENCE N01°E ALONG SAID WEST LINE, 817 FEET TO THE NORTH LINE OF SAID SW114 SW 1/4; THENCE EAST ALONG SAID NORTH LINE, 793 FEET TO SAID SOUTHEAST RIGHT-OF-WAY LINE, BEING 100 FEET FROM THE CENTERLINE OF SAID RAILWAY, THENCE N32°E ALONG SAID SOUTHEAST RIGHT-OF-WAY LINE, 310 FEET, THENCE N58'W ALONG SAID SOUTHEAST RIGHT-OF-WAY LINE, 50 FEET; THENCE N32°E ALONG SAID SOUTHEAST RIGHT-OF-WAY LINE, BEING 50 FEET FROM THE CENTERLINE OF SAID RAILWAY, 802 FEET TO THE WEST LINE OF THE NE1/4 SWI14 OF SAID SECTION 32; THENCE N01°E ALONG SAID WEST LINE, 348 FEET, THENCE NORTH ALONG THE WEST LINE OF THE SE114 NW114 OF SAID SECTION 32, 1315 FEET TO THE NORTH LINE OF SAID SE114 NW 1 /4; THENCE EAST ALONG SAID NORTH LINE, 902 FEET TO SAID NORTHWEST RIGHT-OF-WAY LINE, BEING 50 FEET FROM THE CENTERLINE OF SAID RAILWAY; THENCE S32°W ALONG SAID NORTHWEST RIGHT-OF-WAY LINE, 695 FEET; THENCE S58°E, PERPENDICULAR TO SAID CENTERLINE, 100 FEET TO THE INTERSECTION OF THE SOUTHEAST RIGHT-OF-WAY LINE OF SAID RAILWAY, AND THE NORTHEAST EASEMENT LINE OF BONNEVILLE POWER ADMINISTRATION'S REDMOND-BURNS NO. 1 TRANSMISSION LINE, SAID INTERSECTION BEING 50 FEET FROM THE CENTERLINE OF SAID RAILWAY, AND BEING 50 FEET FROM THE CENTERLINE OF SAID POWER LINE, THENCE S27`E ALONG SAID NORTHEAST EASEMENT LINE, 417 FEET; THENCE S53`E ALONG SAID NORTHEAST EASEMENT LINE, 507 FEET TO THE SOUTH LINE OF SAID SE114 NW1/4; THENCE EAST ALONG SAID SOUTH LINE, AND ALONG THE SOUTH LINE OF THE NE114 OF SAID SECTION 32, 2750 FEET TO THE EAST LINE OF SAID NE1/4; THENCE NORTH ALONG SAID EAST LINE, 2649 FEET TO THE SOUTHEAST CORNER OF SAID SECTION 29; THENCE WEST ALONG THE SOUTH LINE OF THE SE114 OF SAID SECTION 29, 2634 FEET TO THE DESCRIPTION - SHEET 1 OF 4 SOUTH HIGHWAY 97 URBAN RFNFWAI.. AREA, CONTINUE: WEST LINE OF THE SW1 /4 OF SAID SF1/4; THENCE NORTH ALONG SAID WEST LINE, 992 FEET TO THE SOUTHEAST RIGHT-OF-WAY LINE OF U.S. HIGHWAY 97, BEING 90 FEET FROM THE CENTERLINE OF SAID HIGHWAY; THENCE N35'E ALONG SAID SOUTHEAST RIGHT-OF-WAY LINE, 1659 FEET TO ENGINEER'S STATION 125400, 90 FEET LEFT; THENCE N41°E ALONG SAID SOUTHEAST RIGHT-OF-WAY LINE, 376 FEET TO THE NORTH LINE OF THE NW.1 f4 SE114 OF SAID SECTION 29; THENCE WEST ALONG SAID. NORTH LINE, 401 FEET TO THE NORTHWEST RIGHT-OF-WAY LINE OF SAID HIGHWAY (ALSO BEING THE NORTHWEST RIGHT-OF-WAY LINE OF SW 25TH PLACE), AS DESCRIBED IN VOLUME 234, PAGE 1995, DESCHUTES COUNTY DEED HLCORDS; THENCE ALONG SAID NORTHWEST RIGHT-OF-WAY LINE AS FOLLOWS: N05°E, 670 FEET, THENCE N33'E, 175 FEET, THENCE N23°E, 255 FEET; THENCE N35°E, 91 FEET TO THE SOUTH RIGHT-OF-WAY LINE OF SW YEW AVENUE, BEING A LINE OF VARIABLE WIDTH FROM THE. CENTERLINE OF SAID ROADWAY; THENCE LEAVING SAID NORTHWEST. RIGHT-CF-WAY LINE, AND 1190 FEET WESTERLY ALONG SAID SOUTH RIGHT-OF-WAY LINE, AND ALONG ITS NORTHWESTERLY PROLONGATION, TO A POINT WHICH BEARS N73°W, 1131 FEET FROM THE END OF THE PREVIOUS COURSE, SAID POINT BEING ON THE NORTHWEST RIGHT-OF- WAY LINE OF SW CANAL BOULEVARD, AND BEING 30 FEET FROM THE CENTERLINE OF SAID ROADWAY; THENCE 5459 FEET NORTHEASTERLY ALONG SAID NORTHWEST RIGHT-OF-WAY LINE, TO A POINT WHICH BEARS N42°E, 5449 FEET FROM THE END OF THE PREVIOUS COURSE, SAID POINT BEING 40 FEET FROM TOE CENTERLINE OF SAID ROADWAY, AND BEING ON THE SOUTH BOUNDARY OF A TRACT OF LAND DESCRIBED IN DOCUMENT 2007-43829, DESCHUTES COUNTY OFFICIAL RECORDS; THENCE ALONG SAID TRACT BOUNDARY AS FOLLOWS: WEST, 345 FEET, THENCE NORTH, 170 FEET; THENCE EAST, 367 FEET TO THE BOUNDARY OF PARCEL 2, AS DESCRIBED IN DOCUMENT NO. 2018-019368, DESCHUTES COUNTY OFFICIAL RECORDS; THENCE LEAVING SAID TRACT BOUNDARY AND ALONG SAID PARCEL 2 BOUNDARY AS FOLLOWS: NIXE, 122 FEET; THENCE N37E, 30 FEET, THENCE S61°E, 107 FEET TO THE NORTHWEST RIGHT-OF-WAY LINE OF SW CANAL BOULEVARD, BEING 30 FEET FROM THE CENTERLINE OF SAID ROADWAY; THENCE LEAVINC SAID PARCEL 2 BOUNDARY, N30°C ALONG SAID NORTHWEST RIGHT-OF-WAY LINE, 751 FEET TO THE BOUNDARY OF A TRACT OF LAND DESCRIBED 1N DOCUMENT 2007-64854, DESCHUTES COUNTY OFFICIAL RECORDS; THENCE ALONG THE BOUNDARY OF SAID TRACT AS FOLLOWS: N59'W, 136 FEET; THENCE S31'W, 239 FEET; THENCE N56`W, 184 FEET; THENCE 274 FEET ALONG THE ARC OF A NON -TANGENT 658 FOOT RADIUS CURVE TO THE LEFT, THE CHORD OF WHICH BEARS N28'E, 213 FEET, THENCE LEAVING SAID TRACT BOUNDARY, NORTH, PERPENDICULAR TO THE NORTH LINE OF SAID TRACT, 60 FEET TO THE NORTH RIGHT-OF-WAY LINE OF SW OUARIL AVENUE, BEING 30 FEET FROM THE CENTERLINE OF SAID ROADWAY; THENCE EAST ALONG SAID NORTH RIGHT-OF-WAY LINE, 105 FEET TO THE BOUNDARY OF A TRACT OF LAND DC SCI;IDEO 1N DOCUMENT 2020-06416, DESCHUTES COUNTY OFFICIAL RECORDS; THENCE ALONG THE BOUNDARY OF SAID TRACT AS FOLLOWS: NORTH 214 FEET; THENCE S89'1=, 304 FEET; THENCE S01 `W, 96 FEET; THENCE SBXF, 74 FEET TO THE NORTHWEST RIGHT-OF-WAY LINE OF DESCRIPTION - SHEET 2 OF 4 SOUTH HIGHWAY 97 URBAN RENEWAL AREA, CONTINUED: SW CANAL BOULEVARD, BEING 30 FEET FROM THE CENTERLINE OF SAID ROADWAY; THENCE LEAVING SAID TRACT BOUNDARY, AND 422 FEET NORTHEASTERLY ALONG SAID NORTHWEST RIGHT-OF-WAY LINE, TO A POINT WHICH BEARS N26°E, 422 FEET FROM THE END OF THE PREVIOUS COURSE, SAID POINT BEING AT THE SOUTHEAST CORNER OF TRACT 1, AS DESCRIBED IN DOCUMENT 2020-10963, DESCHUTES COUNTY OFFICIAL RECORDS; THENCE WEST ALONG THE SOUTH LINE OF SAID TRACT 1, 591 FEET TO THE WEST LINE OF SAID TRACT 1; THENCE NORTH ALONG SAID WEST LINE, AND ALONG THE WEST LINE OF TRACT 2, AS DESCRIBED IN SAID DOCUMENT, 782 FEET TO THE NORTH LINE OF SAID TRACT 2; THENCE N74'E ALONG SAID NORTH LINE, 135 FEET; THENCE EAST ALONG SAID NORTH LINE, 265 FEET TO THE EAST LINE OF SAID TRACT 2; THENCE SOUTH ALONG SAID EAST LINE, 125 FEET TO THE NORTH LINE OF SAID TRACT 1; THENCE EAST ALONG SAID NORTH LINE, 312_ FEET TO THE WEST RIGHT-OF-WAY LINE OF SW 13TH STREET, BEING 30 FEET FROM THE CENTERLINE OF SAID ROADWAY; THENCE NORTH ALONG SAID WEST RIGHT-OF-WAY LINE, 125 FEET TO THE NORTH LINE OF THE NE114 NW114 OF SAID SECTION 21; THENCE EAST ALONG SAID NORTH LINE, 60 FEET TO T14E EAST RIGHT-OF-WAY LINE OF SW 13TH STREET, BEING 30 FEET FROM THE CENTERLINE OF SAID ROADWAY; THENCE SOUTH ALONG SAID EAST RIGHT-OF-WAY LINE, 120 FEET TO THE. NORTH LINE OF SAID TRACT 1; THENCE EAST ALONG SAID NORTH LINE, 150 FEET TO THE EAST LINE OF SAID TRACT 1; THENCE SOUTH ALONG SAID EAST LINE, 159 FEET TO THE NORTHWEST RIGHT- OF-WAY LINE OF SW CANAL BOULEVARD, BEING 40 FEET FROM THE CENTERLINE OF SAID ROADWAY; TPENCI= N49°E ALONG SAID NORTHWEST RIGHT-OF-WAY LINE, 280 FEET TO THE SOUTH LINE OF THE NORTH 96 FEET OF SAID NE114 NW114; THENCE S41'E, PERPENDICULAR TO SAID CENTERLINE, 70 FEET TO THE SOUTHEAST RIGHT-OF-WAY LINE OF SW CANAL BOULEVARD, BEING 30 FEET FROM THE CENTERLINE OF SAID ROADWAY; THENCE N49°E ALONG SAID SOUTHEAST RIGHT-OF-WAY LINE, 228 FEET TO THE NORTH LINE OF THE NW114 NE114 OF SAID SECTION 21, THENCE EAST ALONG SAID NORTH LINE, 294 FEET TO THE PROLONGATION OF THE NORTHEAST LINE OF A TRACT OF LAND DESCRIBED IN VOLUME 279, PAGE 0839, DESCHUTES COUNTY DEED RECORDS; THENCE S65°E ALONG SAID PROLONGATION, AND ALONG SAID NORTHEAST LINE, 351 FEET TO THE NORTHWEST RIGHT-OF-WAY LINE OF THE BNSF RAILROAD, BEING 50 FEET FROM THE CENTERLINE OF SAID RAILWAY; THENCE S65°E ALONG SAID PROLONGATION, 100 FEET TO THE SOUTHEAST RIGHT-OF-WAY LINE OF THE BNSF RAILROAD, BEING 50 FEET FROM THE CENTERLINE OF SAID RAILWAY,- THENCE N26°E ALONG SAID SOUTHEAST RIGHT-OF- WAY LINE, 126 FEET TO THE NORTH LINE OF THE FIRST EXCEPTION TO PARCEL 1, AS DESCRIBED IN DOCUMENT NO. 2018-005171, DESCHUTES COUNTY OFFICIAL ,RECORDS; THENCE EAST ALONG SAID NORTH LINE, 67 FEET TO THE NORTHWEST LINE OF A TRACT OF LAND DESCRIBED IN DOCUMENT NO. 2009-52569, DESCHUTES COUNTY OFFICIAL RECORDS THENCE S26°W ALONG SAID NORTHWEST LINE, 306 FEET TO THE SOUTHEAST LINE OF SAID TRACT; THENCE N64°W PERPENDICULAR TO SAID RAILWAY CENTERLINE, 160 FEET TO SAID NORTHWEST RIGHT-OF-WAY LINE; THENCE S26`W ALONG SAID DESCRIPTION - SHEET 3 OF 4 SOUTH HIGHWAY" 97 URBAN RENEWAL AHLA, CONTINUED: NORTHWEST RIGHT—OF—WAY LINE, 1110 FEET; THENCE S64"E, PERPENDICULAR TO SAID CENTERLINE, 100 FEET TO THE NORTHWEST CORNER OF PARCEL 4, AS DESCH113ED IN DOCUMENT NO. 2014-042282, DESCHUTES COUNTY OFFICIAL RECORDS; THENCE ALONG THE BOUNDARY OF SAID PARCEL 4 AS FOLLOWS: EAST, 449 FEET; THENCE S 14°W, 73 FEET; THENCE SO4°E, 82 FEET; THENCE S 13°W, 501 FEET; THENCE S36`E, 859 FEET, THENCE WEST, 996 FEET TO THE CENTER 114 CORNER OF SAID SECTION 21; THENCE LEAVING SAID TRACT BOUNDARY, WEST ALONG THE SOUTH LINE OF THE SE114 NW114 OF SAID SECTION 21, 588 FEET TO THE NORTHWEST RIGHT— OF—WAY" LINE OF THE BNSF RAILROAD, BEING 50 FEET FROM THE CENTERLINE OF SAID RAILWAY; THENCE 5602 FEET SOUTHWESTERLY ALONG SAID NORTHWEST RIGHT—OF—WAY LINE TO A POINT WHICH BEARS S27W, 5599 FEET FROM THE END OF THE PREVIOUS COURSE, SAID POINT BEING ON THE NORTHEAST RIGHT—OF—WAY LINE OF SW AIRPORT WAY, AND BEING 55 FEET FROM THE CENTERLINE OF SAID ROADWAY; THENCE S52°E, 101 FEET TO THE INTERSECTION OF THE SOUTHEAST RIGHT—OF—WAY LINE OF THE BNSF RAILROAD AND THE NORTHEAST RIGHT—OF—WAY LINE OF SW AIRPORT WAY,. SAID INTERSECTION BEING 50 FEET FROM THE CENTERLINE OF SAID RAILWAY, AND BEING 60 FEET FROM THE CENTERLINE OF SAID ROADWAY; THENCE 444 FEET SOUTHEASTERLY ALONG SAID NORTHEAST RIGHT—OF—WAY LINE TO A POINT WHICH BEARS S60°E, 434 FEET FROM THE END OF THE PREVIOUS COURSE, SAID POINT BEING ON THE CAST LINE OF THE WEST 40 FEET OF THE SWI14 OF SAID SECTION 28; THENCE SOUTH ALONG SAID EAST IINF (A! n RF1NG THE EAST RIGHT—OF—WAY LINE OF SW 19TH STREET), 2624 FEET TO THE NORTH LINE OF SAID SECTION 33; THENCE EAST ALONG SAID NORTH LINE, 5246 FEET TO THE NORTHEAST CORNER OF SAID SECTION 33; THENCE SOUTH ALONG THE EAST LINE OF SAID SECTION 33, 5265 FEET TO THE SOUTHEAST CORNER OF SAID SECTION 33, AND TO THE POINT OF BEGINNING. THE SAME CONTAINING 1440 ACRES, MORE OR LESS. A .SKETCH OF THE URBAN RCNE'AIAL AREA DESCRIBED ABOVE IS SHOWN ON THE ATTACHED EXHIBIT "A", WHICH IS HEREBY INCORPORATED 8Y REFERENCE. PREPARED JULY 3, 2020 POVEY AND ASSOC. LAND SURVEYORS P.O. BOX 131, REDMOND, OR 97756 (541) 548-6778 20-078D.DWG REGISTERED PROFESSIONAL AND $hJRVEYOR ORECON JULY 15, 1983 WILLIAM G. BAHRKE 2039 Renewal Date! 12/31/21 DESCRIPTION — SHEET 4 OF 4 �01 ES CO �L GZ os,� Deschutes County Board of Commissioners 1300 NW Wall St, Bend, OR 97703 (541) 388-6570 - Fax (541) 385-3202 - https://www.deschutes.org/ AGENDA REQUEST & STAFF REPORT For Board of Commissioners BOCC Wednesday Meeting of September 23, 2020 DATE: September 17, 2020 FROM: Whitney Hale, Administrative Services, 541-330-4640 TITLE OF AGENDA ITEM: Repayment of Economic Development Loan Program Awards BACKGROUND AND POLICY IMPLICATIONS: The Deschutes County Economic Development Forgivable Loan Program was initiated to encourage and assist companies seeking to relocate and/or create new jobs within Deschutes County. To receive a loan, companies must agree to create a specific number of jobs within a defined period, then maintain that level of employment for an additional set period of time. Economic Development for Central Oregon (EDCO) has notified the County that three loan recipients, Grace Bio-Labs ($48,000), Mazama Media ($12,000) and Cascade Integration and Development ($10,000), will not meet job creation targets and will repay the full amount of their loans. Additional information is available in the attached memo from EDCO. Copies of original loan agreements are also attached. EDCO is requesting Board consideration of a modification of the loan repayment interest rate from 8% to 3% as of the date of the award. EDCO is also requesting that the interest rate for future loans under the program shift from 8% to 3% to match current market rates. Resolution 2010-038, which was used to formalize the Economic Development Fund program in 2010 (attached) specifies that interest rates shall be determined by Deschutes County in consultation with EDCO. If the Board of Commissioners approves EDCO's request, staff will prepare repayment agreements dictating terms of repayment for Grace Bio-Labs, Mazama Media and Cascade Integration and Development, which will be signed by both a company representative and the County Administrator. Additionally, future agreements will be drafted in consultation with EDCO using a 3% interest rate. ATTENDANCE: Roger Lee, CEO, Economic Development for Central Oregon (EDCO); Don Myll, Bend Area Director, EDCO; Whitney Hale, Communications Director September 17, 2020 Deschutes County Board of County Commissioners 1300 NW Wall Street Bend, OR 97702 RE: Repayment of Deschutes County Economic Development Loan Program (DCEDLP) awards in the form of loans, and interest rate change request. Board of County Commissioners: I am writing to request that Deschutes County Administration and/or the Board of Commissioners, as appropriate, consider: (1) Converting existing loans under the Deschutes County Economic Loan Program (DCEDLP for the following Companies under the following terms: Grace Bio-Labs (see background information on page 2) Full award of $48,000 is a loan with a 24-month term at 3% interest as of the date of award (June 28, 2018). Mazama Media (see background information on page 2) Full award of $12,000 is a loan with a 24-month term at 3% interest as of the date of award (June 28, 2018). Cascade Integration and Development (see background information on page 3) Full award of $10,000 is a loan payable immediately at 3% interest as of the date of award. (August 23, 2018) Note: While all of these companies have been impacted by COVID-19, the reasons behind not meeting agreed -upon employment levels prior to the pandemic which triggered the award repayment are unique for each company and are not readily remedied in the short term or when pandemic economic conditions improve. (2) Reduce the interest rate in future loans under the program from 8% to 3% to be more in line with current financing market rates. When the program was launched in 2009, business lending rates were generally higher. Brief Historical Review of DCEDL Program The historical financial performance of the Program has been very strong. Over $1.1 M has been awarded to 38 companies since the first award in 2010. Total jobs committed by awardees exceeds 800, yet almost two times that number have actually been created, so the program has been very successful in catalyzing new job creation. We believe both the initial process by which companies are encouraged to apply (i.e. it is applied only when needed to Page 1 of 3 help a company get over a particular financial obstacle or to tip a relocation/retention project to choose Deschutes County) combined with a rigorous pre -award review and analysis by the volunteer DCEDLP Due Diligence Committee has contributed to minimal loan write-offs (currently $9,000 or less than 1 %). While there have been companies repay awards with interest, those funds have been redeployed for other successful job -creation projects. DCEDLP is an important economic growth incentive and continues to be an attractive tool to help growing local traded -sector companies and to attract businesses considering relocating to Deschutes County. Background on Loan Repayments Grace Bio-Labs (current agreement terms) Loan funded 6/28/18 Loan amount $48,000 Employee # start (base) 41 Employee # add 24 Employee # total 65 Average new hire wage $40,714 Date employment target start 4/30/19 Date employment target end 4/30/20 Background In Q3 2019, the company lost its largest customer which accounted for roughly 60% of total revenue. This drove large employee layoffs in August and October 2019. While Grace met the required employment increase and the wage rate under the agreement for the quarters ended 6/30/19 (80) and 9/30/19 (67), employment fell significantly below the target (and even below base employment) for the quarters ended 12/31/19 (38), 3/31/20 (35) and 6/30/20 (35). Current strategy is expected to lead to modest future employee growth, but total employees are not expected to reach 65 in the near term. Mazama Media (current agreement terms) Loan funded 6/28/18 Loan amount $12,000 Employee # start (base) 23 Employee # add 6 Employee # total 29 Average new hire wage $45,000 Date employment target start 8/15/19 Date employment target end 8/15/20 Background Mazama's internal sales and marketing objectives where not achieved as expected which was compounded by employee retention challenges leading to a failure in the Company's ability to meet the employment requirement. Exacerbated by COVID, current employment is 14 — well below baseline employment of 23. The Company does not anticipate that the 29 total employment level will be attained soon and agrees that repayment, over time, should begin as soon as possible. Page 2 of 3 Cascade Integration and Development (current agreement terms Loan funded 8/23/18 Loan amount $10,000 Employee # start (base) 10 Employee # add 5 Employee # total 15 Average new hire wage $82,500 Date employment target start 12/31/19 Date employment target end 12/31/20 Background Cascade Integration was engaged in phase 1 of a large multi -year contract for a water treatment plant project in California whose scope was reduced and deferred to a later phase. The Company's employees declined to 8 where it stands today. While Cascade Integration is still flourishing, the President / Owner has expressed a desire to repay the loan now. Interest Rate Reduction Background The 8% interest rate used historically in DCEDLP agreements does not reflect near current market financing terms, and can be viewed as being punitive, rather than an incentive. For example, SBA loans through the 504 program for asset purchases (land, buildings, new construction, machinery & equipment current range from 2.27% - 2.41 % depending on the term (September published rate). Conventional bank/credit union financing rates are slightly higher, but still less than half of the current rate in the boilerplate agreement language for DCEDLP contracts. Repayment recommendations included in this document have been at this lower interest rate. Page 3 of 3 LEGAL COUNSEL DESCHUTES COUNTY ECONOMIC: DEVELOPMENT LOAN PROGRAM AGREEMENT WITH COMPOSITE APPROACIEI This Economic Development Loan Agreement ("Agreement") is entered into: BETWEEN: Deschutes County (hereinafter referred to as "County") PO Box 6005 Bond, OR 97709.6005 541-330-4627 AND: Once Bio-dabs (heretnq ier referred to as "Company' j 325 SW Cyber Drive Bond, OR 97702 541-318-1208 RECITALS WHEREAS, County finds that the program aet forth in this Agreement will promote state and local economic activity by creating new jobs and investment; and WHEREAS, Company wishes to expand its existing equipment and business operations within Bend, Oregon by increasing employment and investing in equipment and building improvements; and WHEREAS, the said expansion in Bond, Oregon will create at least twenty-four (24) now full- tima, family wage jobs by April 30, 2019 for total employment by Company of sixty-five jobs; and WHEREAS, once filled, the new full-time jobs will be maintained for an.additional consecutive 12-month period to occur on or before April 30, 2020; and WHEREAS, County desires to promote the expansion of Company's facility by loaning funds in the amount of $48,000 for expenses related to job creation and such loan will later be converted to a grant upon the condition that Company satisfj certain requirements; and WHEREAS, County has engaged Economic Development for Central Oregon (EDCO) to assist in administering and implementing the loan; NOW, THERBPOR4 in consideration of the mutual benefits and promises contained herein and for other good and valuable consideration, the receipt and sufficiency of which is hereby admowledged, the parties agree to as follows: DC 2018-.401 SECTION 1 DEl?'INITIONS Section 1.1 Dallttrs aml S.shall mean lawful money of the United States ofAmerica. Section 1.2 jM shall mean funds loaned by County to Company as provided under Section 3. Section 1.3 rrg&t shall mean expansion of Company employment in Deschutes County, Oregon. SeeNon 1.4 Aill-`file Etr&y e shall mean any employee who has been hired with the expectation that the job will last for at least one (1) year and who will work at least forty (40) hours per week or the equivalent of 2,080 hours per year. SECTION 2 TERM This Agreement shall be effective as of the date of execution by all parties and continue until the loan is paid in full or the loan is converted to a grant as provided in Section 3.3 below. SECTION 3 LOAN Section 3.1 I.&M County agrees to loan Company the sum of $48,000 no later than 30 days following delivery of this signed Agreement to County. Section 3.2,on of lItg am anv The purpose of the loan is to carryout the project, and for no other purposes. Company represents and warrants that it will diligently pursue and complete the following: 3.2.1 Company will employ at least twenty-four (24) additional full time employees by April 30, 2019 for a total of sixty-five (65) full-time employees. 3.2.2 Company will maintain these new positions f%om the date all are filled for an additional consecutive 12-mouth period to occur on or before April 20, 2020. 3.2.3 Wages for the new positions will average $40,714, excluding commissions, per annum. 3.2.4 Company will submit quarterly and annual progress reports to EDCO with documentation for job creation, capital investment relating to new facilities, and equipment associated with the project. 3.2.5 Company shall comply with all applicable federal, state, regional, and local laws, regulations, and ordinances. 3.2.6 Company shall timely pay all Deschutes County real and personal property tax when due and shall satisfy all delinquent property tax accounts in full. Section 3.3 Loan Repayment or Conversion to Grant 3.3.1 Unless the loan is converted to a grant as provided below, Company agrees to pay io the crriier of County lha. full'amount of ti►a laan.as well as hiie►est ttt.th , rata.of Jk arifitiin begilining 60111 the hate County releases tun& to Company until the `-vaylier of (a) the occurrence of an event of default, as defined below, or (b) April 20, 2020. 3.3.2 County agrees to convert the loan to a grant that does not need to be repaid, if and when County determines in its sole discretion that Company has satisfied all of the obligations in Section 3.2 and its other obligations tinder this Agreement. Such conversion shall only be effective upon written verification by the County Administrator that the loan has been converted to a grant. 3.3.3 County may, in its sole discretion, convert a portion of the loan to a grant if all of the obligations under Section 3.2 and this Agreement have been fulfilled to the reasonable satisfaction of County. In the event of such partial conversion of the loan, the loan shall continue to be payable on a pro -rated basis in an amount determined by multiplying $2,000 by the difference between twenty-four (24) and the number of full-time employees employed in Deschutes County by Company as of April 20, 2019, Interest will accrue on this portion of the loan at a rate of eight percent (S%) per annum from the time the Company received the loan monies to the time they are repaid, SECTION 4 DEFAULT a Section 4.1 Events of Default f M The following shall be considered events of default: 4.1.1 Company fails to complete, or County reasonably determines that Company will not be able to complete, the obligations described in Section 3.2 and its other obligations under this Agreement; provided, however, that upon such failure or determination, County shall first provide to Company written notice of such failure or determination, and Company shall have thirty (30) days to correct the matter. If the matter has not been corrected by Company within such thirty (30) day period to the reasonable satisfaction of County, County shall be entitled to declare Company in default of its obligations under this Agreement and the loan and accrued interest i shall be payable in full. 4.1.2 Company effects a change of ownership or change of control of its business which results in dissolution or conversion of the original business entity or relocates its business operations outside of Deschutes County, Oregon on or before the end of the contract period, Change of ownership and/or change of control of the business will not be deemed a default if Company notifies County which may then condition consent on any reasonable term(s) necessary to adequately secure the loan, A change in majority stock ownership will not constitute a default if all other provisions in this agreement are met, 4.1.3 The occurrence of any event that has or may reasonably be expected to have a material adverse effect on Company's financial condition or Company's ability to make any payment required by this Agreement, 4.1.4 Company fails to pay, becomes insolvent or unable to pay, or admits in writing an Inability to pay Company's debts as they become due, or makes a general assignment for the benefit of creditors. 4.1.5 A proceeding with respect to Company is commenced under any applicable law for the benefit of creditors, including, but not limited to, any bankruptcy or Insolvency law, or an order for the appointment of a receiver, liquidator, trustee, custodian, or other officer having similar powers over Company is entered, SECTION 5 MISCELLANEOUS Section 5.1 RtahtT to lnspeot Company agrees that County, their agents, and employees shall be entitled, upon reasonable prior notice to Company, to access and inspect the property and employment records of Company and its affiliates in order to insure that Company Is complying with the terms of this Agreement and all applicable federal, state, and local laws and regulations. The right to inspection shall also include any property or employment records that are in the possession of any affiliate of Company. The Tight of inspection shall continue until all of the obligations of Company under this Agreement have been satisfied, Section 5.2 Atiorlloy's Peo.Troyision In the event suit or action is instituted to enforce any of the terms or conditions of this Agreement, the unsuccessfbi party shall pay to the prevailing party, in addition to the costs and disbursements allowed by statute, such sum as the court may adjudge reasonable as attorney fees in such suit or action, in both trial court and appellate courts. Section 5.3 IndgWiflotior< Company shall defend, indemnify and hold harmless County and BDCO, their officers, agents, employees, and members ftom all claims, suits, and causes of action, including attorney's fees, of any nature whatsoever relating to claims by third parties resulting from or arising out this Agreement or funds provided to Company under this Agreement. Except as otherwise provided in this Section 5.3, County and EDCO shall defend, indemnify, and hold harmless Company, their officers, agents, employees, and members from all claims, suits, and causes of action, including attorneys fees, relating to claims by third parties as to the validity under public finance law of this Agreement or fends provided to the Company under this Agreement. Section SA Entire A rcement This Agreement constitutes the entire agreement between the parties regarding the matters herein. Section 5.6 Titles and Subtitles The titles in this Agreement are for convenience only and in no way define, limit, or describe the scope or intent of any provision of this Agreement. Section5.7 kJ211a All notices, requests demands, and other communications to or upon the parties hereto shall be in writing and shall be deemed to have been duly given or made. Upon actual receipt, If delivered personally or by fax or an pvernight delivery service; and at the end ofthe third business day after the date of deposit in the United States mail, postage pre -paid, certified, return receipt requested; and to the addresses set forth on page 1 of this Agreement or at such other address ofwhieh such party shall have notified in writing the other parties hereto, Section 5.8 Time is of the Essence All parties agree that time is of the essence under this Agreement, Section 5.9 Avnticablo1aw This Agreement is made, and shall be construed and interpreted under the laws of the State of Oregon without regard to the principles of conflicts of law. Venue shall lie in state courts located in Deschutes County, Oregon, provided, however, if the claim must be brought in a federal forum, then It shall be brought and conducted solely and exclusively within the United States District Court for the District of Oregon. Section 5.10 DIsolosure Under Oregon law, most "agreeinents, promises, and commitments made by a lender after October 3, 1989 concerning loans and other credit extensions which are not for personal, family, or household purposes or secured solely by borrower's residence must be In writing, express consideration, and be signed by the lender to be enforceable. Section 5.11 No Waiver No failure or delay of County in exercising any right, power or remedy under this Agreement shall operate as a waiver of such right, power or remedy of County, or of any other right. A waiver of any provision of this Agreement shall not constitute a waiver of or prejudice, County's right otherwise to demand strict compliance with that provision or any other provision. Any waiver, permit, consent or approval of any kind or character on the part of County must be in writing and shall be effective only to the extent specifically set forth in such writing. Section 5.12 No Assir_nmont by Com ran No obligation or right under this Agreement may be assigned by the Company without the prior consent of County, which consent may be withheld, conditioned, or delayed in the sole discretion of County. IN WITIgSS WHEREOF the patties hereto have caused this Agrownent to be duly executed as of the dates set forth below their respeotive signatures, D"011utes County ny, Totix I.Andorso►a, County Admigistrtttor Date; L ` 1 Grace Bto-Labs By: ,4 x, - W. Dr, Charles Mcar kh pros dent LEGAL COUNSEL ECONOMIC COUNTY ECONOMIC DEVELOPMENT LOAN PROGRAM AGREEMENT WITH MAZAMA MEDIA #2018-363 This Economic Development Loan Agreement ("Agreement") is entered into: BETWEEN: Deschutes County (hereinafter referred to as "County') PO Box 6005 Bend, OR 97708-6005 541-330-4627 AND: Mazama Media (hereinafter referred to as "Company') 336 SW Cyber Drive, Suite 100 Bend, OR 97702 541-728-0558 RECITALS WHEREAS, County finds that the program set forth in this Agreement will promote state and local economic activity by creating new jobs and investment; and WHEREAS, Company wishes to expand its existing equipment and business operations within Bend, Oregon by increasing employment and investing in equipment and building improvements; and WHEREAS, the said expansion in Bend, Oregon will create at least six (6) new full-time, family wage jobs by August 15, 2019 for total employment by Company of twenty-nine (29) jobs; and WHEREAS, once filled, the new full-time jobs will be maintained for an additional consecutive 12-month period to occur on or before August 15, 2020; and WHEREAS, County desires to promote the expansion of Company's facility by loaning funds in the amount of $12,000 for expenses related to job creation and such loan will later be converted to a grant upon the condition that Company satisfy certain requirements; and WHEREAS, County has engaged Economic Development for Central Oregon (EDCO) to assist in administering and implementing the loan; NOW, THEREFORE, in consideration of the mutual benefits and promises contained herein and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree to as follows: SECTION 1 DEFINITIONS Section 1.1 Dollars and $ shall mean lawful money of the United States of America. Section 1.2 Loan shall mean funds loaned by County to Company as provided under Section 3. Section 1.3 Proiect shall mean expansion of Company employment in Deschutes County, Oregon. Section 1.4 Full -Tine Employee shall mean any employee who has been hired with the expectation that the job will last for at least one (1) year and who will work at least forty (40) hours per week or the equivalent of 2,080 hours per year. SECTION 2 TERM This Agreement shall be effective as of the date of execution by all parties and continue until the loan is paid in full or the loan is converted to a grant as provided in Section 3.3 below. SECTION 3 LOAN Section 3.1 Loan County agrees to loan Company the sum of $12,000 no later than 30 days following delivery of this signed Agreement to County. Section 3.2 Loan Purpose and Representations of the Company The purpose of the loan is to carry out the project, and for no other purposes. Company represents and warrants that it will diligently pursue and complete the following: 3.2.1 Company will employ at least six (6) additional full time employees by August 15, 2019 for a total of twenty-nine (29) full-time employees. 3.2.2 Company will maintain these new positions from the date all are filled for an additional consecutive 12-month period to occur on or before August 15, 2020. 3.2.3 Wages for the new positions will meet or exceed the Deschutes County median family income, but are expected to average $45,000, excluding commissions, per annum. 3.2.4 Company will submit quarterly and annual progress reports to EDCO with documentation for job creation, capital investment relating to new facilities, and equipment associated with the project. 3.2.5 Company shall comply with all applicable federal, state, regional, and local laws, regulations, and ordinances. 3.2.6 Company shall timely pay all Deschutes County real and personal property tax when due and shall satisfy all delinquent property tax accounts in full. Section 3.3 Loan Repayment or Conversion to Grant 3.3.1 Unless the loan is converted to a grant as provided below, Company agrees to pay to the order of County the full amount of the loan as well as interest at the rate of 8% per annum beginning from the date County releases funds to Company until the earlier of: (a) the occurrence of an event of default, as defined below, or (b) August 15, 2020. 3.3.2 County agrees to convert the loan to a grant that does not need to be repaid, if and when County determines in its sole discretion that Company has satisfied all of the obligations in Section 3.2 and its other obligations under this Agreement. Such conversion shall only be effective upon written verification by the County Administrator that the loan has been converted to a grant. 3.3.3 County may, in its sole discretion, convert a portion of the loan to a grant if all of the obligations under Section 3.2 and this Agreement have been fulfilled to the reasonable satisfaction of County. In the event of such partial conversion of the loan, the loan shall continue to be payable on a pro -rated basis in an amount determined by multiplying $2,000 by the difference between six (6) and the number of full-time employees employed in Deschutes County by Company as of August 15, 2019. Interest will accrue on this portion of the loan at a rate of eight percent (8%) per annum from the time the Company received the loan monies to the time they are repaid. SECTION 4 DEFAULT Section 4.1 Events of Default The following shall be considered events of default: 4.1.1 Company fails to complete, or County reasonably determines that Company will not be able to complete, the obligations described in Section 3.2 and its other obligations under this Agreement; provided, however, that upon such failure or determination, County shall first provide to Company written notice of such failure or determination, and Company shall have thirty (30) days to correct the matter. If the matter has not been corrected by Company within such thirty (30) day period to the reasonable satisfaction of County, County shall be entitled to declare Company in default of its obligations under this Agreement and the loan and accrued interest shall be payable in full. 4.1.2 Company effects a change of ownership or change of control of its business which results in dissolution or conversion of the original business entity or relocates its business operations outside of Deschutes County, Oregon on or before the end of the contract period. Change of ownership and/or change of control of the business will not be deemed a default if Company notifies County which may then condition consent on any reasonable term(s) necessary to adequately secure the loan. A change in majority stock ownership will not constitute a default if all other provisions in this agreement are met. 4.1.3 The occurrence of any event that has or may reasonably be expected to have a material adverse effect on Company's financial condition or Company's ability to make any payment required by this Agreement. 4.1.4 Company fails to pay, becomes insolvent or unable to pay, or admits in writing an inability to pay Company's debts as they become due, or makes a general assignment for the benefit of creditors. 4.1.5 A proceeding with respect to Company is commenced under any applicable law for the benefit of creditors, including, but not limited to, any bankruptcy or insolvency law, or an order for the appointment of a receiver, liquidator, trustee, custodian, or other officer having similar powers over Company is entered. SECTION 5 MISCELLANEOUS Section 5.1 Right to Inspect Company agrees that County, their agents, and employees shall be entitled, upon reasonable prior notice to Company, to access and inspect the property and employment records of Company and its affiliates in order to insure that Company is complying with the terms of this Agreement and all applicable federal, state, and local laws and regulations. The right to inspection shall also include any property or employment records that are in the possession of any affiliate of Company. The right of inspection shall continue until all of the obligations of Company under this Agreement have been satisfied. Section 5.2 Attorney's Fee Provision In the event suit or action is instituted to enforce any of the terms or conditions of this Agreement, the unsuccessful party shall pay to the prevailing party, in addition to the costs and disbursements allowed by statute, such sum as the court may adjudge reasonable as attorney fees in such suit or action, in both trial court and appellate courts. Section 5.3 Indemnification Company shall defend, indemnify and hold harmless County and EDCO, their officers, agents, employees, and members from all claims, suits, and causes of action, including attorney's fees, of any nature whatsoever relating to claims by third parties resulting from or arising out this Agreement or funds provided to Company under this Agreement. Except as otherwise provided in this Section 5.3, County and EDCO shall defend, indemnify, and hold harmless Company, their officers, agents, employees, and members from all claims, suits, and causes of action, including attorney's fees, relating to claims by third parties as to the validity under public finance law of this Agreement or funds provided to the Company under this Agreement. Section 5.4 Entire A relent This Agreement constitutes the entire agreement between the parties regarding the matters herein. Section 5.6 Titles and Subtitles The titles in this Agreement are for convenience only and in no way define, limit, or describe the scope or intent of any provision of this Agreement. Section 5.7 Notice All notices, requests demands, and other communications to or upon the parties hereto shall be in writing and shall be deemed to have been duly given or made: Upon actual receipt, if delivered personally or by fax or an overnight delivery service; and at the end of the third business day after the date of deposit in the United States mail, postage pre -paid, certified, return receipt requested; and to the addresses set forth on page 1 of this Agreement or at such other address of which such party shall have notified in writing the other parties hereto. Section 5.8 Time is of the Essence All parties agree that time is of the essence under this Agreement. Section 5.9 Applicable Law This Agreement is made, and shall be construed and interpreted under the laws of the State of Oregon without regard to the principles of conflicts of law. Venue shall lie in state courts located in Deschutes County, Oregon, provided, however, if the claim must be brought in a federal forum, then it shall be brought and conducted solely and exclusively within the United States District Court for the District of Oregon. Section 5.10 Disclosure Under Oregon law, most agreements, promises, and commitments made by a lender after October 3, 1989 concerning loans and other credit extensions which are not for personal, family, or household purposes or secured solely by borrower's residence must be in writing, express consideration, and be signed by the lender to be enforceable. Section 5.11 No Waiver No failure or delay of County in exercising any right, power or remedy under this Agreement shall operate as a waiver of such right, power or remedy of County, or of any other right. A waiver of any provision of this Agreement shall not constitute a waiver of or prejudice County's right otherwise to demand strict compliance with that provision or any other provision. Any waiver, permit, consent or approval of any kind or character on the part of County must be in writing and shall be effective only to the extent specifically set forth in such writing. Section 5.12 No Assignment by Company No obligation or right under this Agreement may be assigned by the Company without the prior consent of County, which consent may be withheld, conditioned, or delayed in the sole discretion of County. IN WITNESS WHEREOF the parties hereto have caused this Agreement to be duly executed as of the dates set forth below their respective signatures. Deschutes County By: Tom Anderson, County Administrator Date: 5 - _�;O- r !F< Mazama Media Bud Torcom, Chief Executive Officer Date: LEGAL COUNSEL DESCHUTES COUNTY ECONOMIC DEVELOPMENT LOAN PROGRAM AGREEMENT WITH CASCADE INTEGRATION AND DESIGN #2018-362 This Economic Development Loan Agreement ("Agreement") is entered into: BETWEEN: Deschutes County (hereinafter referred to as "County') PO Box 6005 Bend, OR 97708-6005 541-330-4627 AND: Cascade Integration and Design (hereinafter referred to as "Company') 62982 NE 18th Street, Suite 100 Bend, OR 97701 541-678-5070 RECITALS WHEREAS, County finds that the program set forth in this Agreement will promote state and local economic activity by creating new jobs and investment; and WHEREAS, Company wishes to expand its existing equipment and business operations within Bend, Oregon by increasing employment and investing in equipment and building improvements; and WHEREAS, the said expansion in Bend, Oregon will create at least five (5) new full-time, family wage jobs by December 31, 2019 for total employment by Company of fifteen (15) jobs; and WHEREAS, once filled, the new full-time jobs will be maintained for an additional consecutive 12-month period to occur on or before December 31, 2020; and WHEREAS, County desires to promote the expansion of Company's facility by loaning funds in the amount of $10,000 for expenses related to job creation and such loan will later be converted to a grant upon the condition that Company satisfy certain requirements; and WHEREAS, County has engaged Economic Development for Central Oregon (EDCO) to assist in administering and implementing the loan; NOW, THEREFORE, in consideration of the mutual benefits and promises contained herein and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree to as follows: SECTION 1 DEFINITIONS Section 1.1 Dollars and $ shall mean lawful money of the United States of America. Section 1.2 Loan shall mean funds loaned by County to Company as provided under Section 3. Section 1.3 Project shall mean expansion of Company employment in Deschutes County, Oregon. Section 1.4 Full -Time Employee shall mean any employee who has been hired with the expectation that the job will last for at least one (1) year and who will work at least forty (40) hours per week or the equivalent of 2,080 hours per year. SECTION 2 TERM This Agreement shall be effective as of the date of execution by all parties and continue until the loan is paid in full or the loan is converted to a grant as provided in Section 3.3 below. SECTION 3 LOAN Section 3.1 Loan County agrees to loan Company the sum of $10,000 no later than 30 days following delivery of this signed Agreement to County. Section 3.2 Loan Purpose and Representations of the Company The purpose of the loan is to carry out the project, and for no other purposes. Company represents and warrants that it will diligently pursue and complete the following; 3.2.1 Company will employ at least five (5) additional full time employees by December 31, 2019 for a total of fifteen (15) full-time employees. 3.2.2 Company will maintain these new positions from the date all are filled for an additional consecutive 12-month period to occur on or before December 31, 2020. 3.2.3 Wages for the new positions will meet or exceed the Deschutes County median family income, but are expected to average $82,500, excluding commissions, per annum. 3.2.4 Company will submit quarterly and annual progress reports to EDCO with documentation for job creation, capital investment relating to new facilities, and equipment associated with the project. 3.2.5 Company shall comply with all applicable federal, state, regional, and local laws, regulations, and ordinances. 3.2.6 Company shall timely pay all Deschutes County real and personal property tax when due and shall satisfy all delinquent property tax accounts in full. Section 3.3 Loan Repayment or Conversion to Grant 3.3.1 Unless the loan is converted to a grant as provided below, Company agrees to pay to the order of County the full amount of the loan as well as interest at the rate of 8% per annum beginning from the date County releases funds to Company until the earlier of: (a) the occurrence of an event of default, as defined below, or (b) December 31, 2020. 3.3.2 County agrees to convert the loan to a grant that does not need to be repaid, if and when County determines in its sole discretion that Company has satisfied all of the obligations in Section 3.2 and its other obligations under this Agreement. Such conversion shall only be effective upon written verification by the County Administrator that the loan has been converted to a grant. 3.3.3 County may, in its sole discretion, convert a portion of the loan to a grant if all of the obligations under Section 3.2 and this Agreement have been fulfilled to the reasonable satisfaction of County. In the event of such partial conversion of the loan, the loan shall continue to be payable on a pro -rated basis in an amount determined by multiplying $2,000 by the difference between five (5) and the number of full-time employees employed in Deschutes County by Company as of December 31, 2019. Interest will accrue on this portion of the loan at a rate of eight percent (8%) per annum from the time the Company received the loan monies to the time they are repaid. SECTION 4 DEFAULT Section 4.1 Events of Default The following shall be considered events of default: 4.1.1 Company fails to complete, or County reasonably determines that Company will not be able to complete, the obligations described in Section 3.2 and its other obligations under this Agreement; provided, however, that upon such failure or determination, County shall first provide to Company written notice of such failure or determination, and Company shall have thirty (30) days to correct the matter. If the matter has not been corrected by Company within such thirty (30) day period to the reasonable satisfaction of County, County shall be entitled to declare Company in default of its obligations under this Agreement and the loan and accrued interest shall be payable in full. 4.1.2 Company effects a change of ownership or change of control of its business which results in dissolution or conversion of the original business entity or relocates its business operations outside of Deschutes County, Oregon on or before the end of the contract period. Change of ownership and/or change of control of the business will not be deemed a default if Company notifies County which may then condition consent on any reasonable term(s) necessary to adequately secure the loan. A change in majority stock ownership will not constitute a default if all other provisions in this agreement are met. 4.1.3 The occurrence of any event that has or may reasonably be expected to have a material adverse effect on Company's financial condition or Company's ability to make any payment required by this Agreement. 4.1.4 Company fails to pay, becomes insolvent or unable to pay, or admits in writing an inability to pay Company's debts as they become due, or makes a general assignment for the benefit of creditors. 4.1.5 A proceeding with respect to Company is commenced under any applicable law for the benefit of creditors, including, but not limited to, any bankruptcy or insolvency law, or an order for the appointment of a receiver, liquidator, trustee, custodian, or other officer having similar powers over Company is entered. SECTION 5 MISCELLANEOUS Section 5.1 Right to Inspect Company agrees that County, their agents, and employees shall be entitled, upon reasonable prior notice to Company, to access and inspect the property and employment records of Company and its affiliates in order to insure that Company is complying with the terns of this Agreement and all applicable federal, state, and local laws and regulations. The right to inspection shall also include any property or employment records that are in the possession of any affiliate of Company. The right of inspection shall continue until all of the obligations of Company under this Agreement have been satisfied. Section 5.2 Attorney's Fee Provision In the event suit or action is instituted to enforce any of the terms or conditions of this Agreement, the unsuccessful party shall pay to the prevailing party, in addition to the costs and disbursements allowed by statute, such sum as the court may adjudge reasonable as attorney fees in such suit or action, in both trial court and appellate courts. Section 5.3 Indemnification Company shall defend, indemnify and hold harmless County and EDCO, their officers, agents, employees, and members from all claims, suits, and causes of action, including attorney's fees, of any nature whatsoever relating to claims by third parties resulting from or arising out this Agreement or fiends provided to Company under this Agreement. Except as otherwise provided in this Section 5.3, County and EDCO shall defend, indemnify, and hold harmless Company, their officers, agents, employees, and members from all claims, suits, and causes of action, including attorney's fees, relating to claims by third parties as to the validity under public finance law of this Agreement or funds provided to the Company under this Agreement. Section 5.4 Entire Agreement This Agreement constitutes the entire agreement between the parties regarding the matters herein. Section 5.6 Titles and Subtitles The titles in this Agreement are for convenience only and in no way define, limit, or describe the scope or intent of any provision of this Agreement. Section 5.7 Notice All notices, requests demands, and other communications to or upon the parties hereto shall be in writing and shall be deemed to have been duly given or made: Upon actual receipt, if delivered personally or by fax or an overnight delivery service; and at the end of the third business day after the date of deposit in the United States mail, postage pre -paid, certified, return receipt requested; and to the addresses set forth on page 1 of this Agreement or at such other address of which such party shall have notified in writing the other parties hereto. Section 5.8 Time is of the Essence All parties agree that time is of the essence under this Agreement. Section 5.9 Applicable Law This Agreement is made, and shall be construed and interpreted under the laws of the State of Oregon without regard to the principles of conflicts of law. Venue shall lie in state courts located in Deschutes County, Oregon, provided, however, if the claim must be brought in a federal forum, then it shall be brought and conducted solely and exclusively within the United States District Court for the District of Oregon. Section 5.10 Disclosure Under Oregon law, most agreements, promises, and commitments made by a lender after October 3, 1989 concerning loans and other credit extensions which are not for personal, family, or household purposes or secured solely by borrower's residence must be in writing, express consideration, and be signed by the lender to be enforceable. Section 5.11 No Waiver No failure or delay of County in exercising any right, power or remedy under this Agreement shall operate as a waiver of such right, power or remedy of County, or of any other right. A waiver of any provision of this Agreement shall not constitute a waiver of or prgjudice County's right otherwise to demand strict compliance with that provision or any other provision. Any waiver, permit, consent or approval of any kind or character on the part of County must be in writing and shall be effective only to the extent specifically set forth in such writing. Section 5.12 No Assignment by C�y No obligation or right under this Agreement may be assigned by the Company without the prior consent of County, which consent may be withheld, conditioned, or delayed in the sole discretion of County. IN WITNESS WHEREOF the parties hereto have caused this Agreement to be duly executed as of the dates set forth below their respective signatures. Deschutes County f ' 1 Tom Anderson, County Administrator Date: 5,3,0—to Cascade Integration and Design Matthew Callahan, President Date: 0%! '�� REVIE D L GAL COUNSEL For Recording Stamp Only BEFORE THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON A Resolution Establishing Fund 105 as the Economic Development Fund RESOLUTION NO.2010-038 WHEREAS, Deschutes County faces historically high levels of unemployment and economic distress; and WHEREAS, business recruitment and retention, and in particular job creation, are high- level priorities for the Deschutes County Board of Commissioners ("Board"); and WHEREAS, Deschutes County budgets certain monies in Fund 105, which has historically been known as the "Business Loan Fund;" and WHEREAS, the Board wishes to repurpose those funds in Fund 105 and use them for the above -stated priority of job creation; NOW, THEREFORE, THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY HEREBY RESOLVES AS FOLLOWS: 1. Fund 105 shall henceforth be known as the Economic Development Fund. 2. Monies currently in Fund 105 and other monies that may be transferred to Fund 105 at the sole discretion of the Deschutes County Budget Committee and the Board shall be used only for the purposes described in Exhibit A, attached hereto and incorporated herein. DATED this,el--- A,TTT: &4P__ (�ES C�1, � Recording Secretary day of , 2010. DE IS R. LUKE, Chair ALAN UNGER, Vice Chair 0 TAMMY B , Cmfidssioner Page] of 3 Resolution No. 2010-038 EXHIBIT A Fund 105, to be known at the Economic Development Fund, shall be used for the exclusive purpose of job -creating business recruitment, retention and expansion, using the following criteria and procedures. Fund disbursements may take the form of low - interest loans, forgivable loans or grants, however, all disbursements shall be tied directly to the creation or retention of jobs in Deschutes County. Fund 105 shall not be used for investment purposes or to cover the start-up costs of a new business venture. Criteria 1. For purposes of this resolution, "relocation" means the move of an existing business from outside of Deschutes County into Deschutes County. 2. Business "retention" means the keeping of a business in Deschutes County that has verifiable, bona fide plans to move outside of Deschutes County and to take jobs that are currently provided by that business in Deschutes County to one or more areas outside of the County. 3. Business "expansion" means the verifiable, bona fide plans of an existing business in Deschutes County to expand its operation in such a way that the result is the creation of regular, full-time jobs that did not exist prior to the expansion. 4. For purposes of Fund 105, relocation or retention expenses include a business' costs of moving equipment, furnishings and personal business property to or within Deschutes County, but shall not include the costs of moving the personal household goods of any employee or potential employee to or within Deschutes County. Relocation expenses may also include: 1. short-term rent relief in a business' new location; and 2. the costs associated with the recruitment of new staff, including, but not limited to, advertising or travel allowances. 5. For purposes of Fund 105, expansion expenses include a business' costs of building or leasing new space necessary to provide for newly created jobs, the lease or purchase of new equipment or personal business property necessary to accommodate newly created jobs, and/or the costs associated with recruitment or training of new staff. 6. The Board of Commissioners may, in its sole discretion, approve other uses of Fund 105 if they are consistent with the uses listed above. Procedure 1. Deschutes County contracts with Economic Development for Central Oregon (EDCO) for economic development strategic planning, counsel and support. EDCO is engaged directly in the recruitment of new traded -sector businesses to the County. Page 2 of Resolution No. 2010-038 2. All requests for disbursements from the Economic Development fund shall be made by Deschutes County pursuant to a written request to the County by EDCO. All such requests shall conform to the criteria above. EDCO shall determine whether a disbursement from Fund 105 will be structured as a low -interest loan, a forgivable loan or a grant. In all cases, disbursements from the fund shall be tied directly to the creation of jobs. For forgivable loans, all agreements between EDCO/County and the recipient business shall include a "clawback" provision requiring the repayment of some or the entire loan for the failure to create an agreed -upon number of jobs by an agreed -upon date. 4. A forgivable loan shall generally not exceed an amount equivalent to $2,000 per newly created job. Deschutes County reserves the right to waive this limit in its sole discretion after considering EDCO's recommendation. 5. EDCO shall be responsible for tracking the number of jobs created pursuant to a loan, forgivable loan or grant and for reporting to Deschutes County not less than semi-annually on the performance of loan and grant recipients. 6. Interest rates on low -interest loans shall be determined by Deschutes County in consultation with EDCO. Loan administration and collection shall be the responsibility of Deschutes County, which reserves the right to subcontract such responsibility to a third party. Page 3 of 3 Resolution No. 2010-038 I MOWN MOUS, NOWN—M, 4-j 4--j cu u GJ U 121 bo co 00 o 1-6 Uri OC,0' 1� �/G w O �O /61 oc, OC, Oe, ocl, /Ol Oc�OCI. L.L J O i- 40 Q� ro O� ro � E l/ � ODD � 9 O c�Oc'/ � S v � — 'W l/Q 0 _ O�OC o � a E � /l/ _0 a) _0 aQ co v v l/S � oco u C'sg Or,O C/0 v Ln u lS c0 O�OC ai O /19'15 o > av - Oc' c O O O v Oe, .n O� ®aCD ® ® 00ao a / o CY) w to to Ln ::J- c» c-! e—+ 4p (,j co 4 ca C) . u (14 d' t®1 4. 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