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2025-145-Minutes for Meeting April 16,2025 Recorded 5/13/2025Q�vT E S co G2a I BOARD OF -•,,, COMMISSIONERS 1300 NW Wall Street, Bend, Oregon (541) 388-6570 9:00 AM Recorded in Deschutes County OJ2025�°I45 Steve Dennison County Clerk Commissioners' Journal 05/13/2025 10:45:07 AM 20 --145 FOR RECORDING STAMP ONLY BOCC MEETING MINUTES WEDNESDAY April 16, 2025 Barnes Sawyer Rooms Live Streamed Video Present were Commissioners Anthony De Bone, Patti Adair and Phil Chang. Also present were County Administrator Nick Lelack; Senior Assistant Legal Counsel Kim Riley; and BOCC Executive Assistant Brenda Fritsvold. This meeting was audio and video recorded and can be accessed at the Deschutes County Meeting Portal website www.deschutes.org/meetings. CALL TO ORDER: Chair DeBone called the meeting to order at 9:00 am. PLEDGE OF ALLEGIANCE CITIZEN INPUT: • Ron Boozell referred to the first item on today's consent agenda which involves updates to the Countys Generative Artificial Intelligence (AI) policy and asked that these be explained. CONSENT AGENDA: Before the Board was Consideration of the Consent Agenda. 2. Approval to accept a Certified Local Government grant from the State of Oregon for historic preservation BOCC MEETING APRIL 16, 2025 PAGE 1 OF 9 3. Authorization to accept a NEHA-FDA 2025 Track 3 Maintenance and Advancement Base and Training add -on grant, Document No. 2025-360 4. Consideration of Board Signature on letters thanking Dan Daugherty and Kevin Stock for service on the Project Wildfire Steering Committee 5. Consideration of Board Signature on letters appointing Robert Newey, and reappointing Gary Marshall, Andy Meeuwsen and Dean Richardson for service on the Project Wildfire Steering Committee 6. Consideration of Board Signature on letters appointing Patrick Addabbo, Kim Reynolds, and Meghan Windschill for service on the Bicycle and Pedestrian Advisory Committee 7. Approval of the minutes of the BOCC February 19 and 24 and March 17, 2025 meetings 8. Approval of the minutes of the April 4, 2025 BOCC Legislative Update meeting *At Commissioner Adair's request, item #1 was pulled for separate consideration. CHANG: Move Board approval of the Consent Agenda as presented with the exception of item #1 ADAIR: Second VOTE: ADAIR: Yes CHANG: Yes DEBONE: Chair votes yes. Motion Carried 3 - 0 1. Approval of Generative Artificial Intelligence (Al) Policy Updates Zachary Neemann, Information Security Manager, said the County first approved an Al policy last year, which IT determined was in need of updating to address security issues. He explained the recent availability of programs with governance and technical controls to protect personal information and ensure compliance with HIPAA directives, among other desired security features. In response to Commissioner Chang, Neemann said staff is using Al for various tasks, including grammar and editing, to generate content, and to analyze raw unstructured data. ADAIR: Move Board approval of the proposed updates to the Generative Artificial Intelligence (AI) Policy CHANG: Second BOCC MEETING APRIL 16, 2025 PAGE 2 OF 9 VOTE: ADAIR: CHANG: DEBONE: ACTION ITEMS: Proclamations Yes Yes Chair votes yes. Motion Carried 3 - 0 Proclamation: Sexual Assault Awareness Month Taryn Amens Ramos, Program Services Director for Saving Grace, said sexual violence affects persons of all ages and backgrounds, and raising awareness is a critical step towards preventing assaults and supporting victims. The Commissioners read the proclamation into the record. ADAIR: Move to proclaim the month of April 2025 as "Sexual Assault Awareness Month" CHANG: Second VOTE: CHANG: Yes ADAIR: Yes DEBONE: Chair votes yes. Motion Carried 3 - 0 Proclamation: Dark Sky Week Cathie Flanigan from Dark Sky Oregon and the International Dark Sky Association said Dark Sky Week is celebrated all over the world every year. The Commissioners read the proclamation into the record. CHANG: Move to proclaim April 21-28, 2025 as "Dark Sky Week" ADAIR: Second VOTE: ADAIR: Yes CHANG: Yes DEBONE: Chair votes yes. Motion Carried 3 - 0 Proclamation: National Public Safety Telecommunications Week Sara Crosswhite, 9-1-1 Director and Chris Perry, 9-1-1 Operations Manager, presented the proclamation for the Board's consideration. BOCC MEETING APRIL 16, 2025 PAGE 3 OF 9 The Commissioners read the proclamation into the record. ADAIR: Move to proclaim the April 13-19, 2025 as "National Public Safety Telecommunications Week" CHANG: Second VOTE: CHANG: Yes ADAIR: Yes DEBONE: Chair votes yes. Motion Carried 3 - 0 The Commissioners expressed their appreciation for the dispatchers and all of the staff at 9-1-1. Proclamation: National County Government Month Nick Lelack, County Administrator, said the purpose of the proclamation is to recognize all of the services provided across the organization and throughout Deschutes County. The Commissioners read the proclamation into the record. CHANG: Move to proclaim the month of April 2025 as "National County Government Month" ADAIR: Second VOTE: ADAIR: Yes CHANG: Yes DEBONE: Chair votes yes. Motion Carried 3 - 0 Commissioner DeBone noted that all three Commissioners attended the National Association of Counties' Legislative Conference in Washington DC last month. 10. Consideration of Board Order No. 2025-014 to reopen the record for the Thornburgh Destination Resort remand hearing proceedings Will Groves, Planning Manager, reviewed that on April 7', the Thornburgh Resort initiated a Land Use Board of Appeals (LUBA) remand relating to the applicant's request to modify the development's Final Master Plan (FMP) with respect to its 2022 Fish and Wildlife Management Plan (2022 FWMP). In response to Commissioner DeBone, Groves confirmed that the County has 120 days from April 7th to issue its decision. Although LUBA remanded this matter on BOCC MEETING APRIL 16, 2025 PAGE 4 OF 9 three separate topics, the applicant has requested that the Board limit the reopening of the record to the one topic of economic analysis only. Groves added that the purpose of the required economic analysis is to show the expected economic impact of the proposed destination resort. Because the application as originally processed had envisioned that the resort would have three golf courses and now will have fewer, LUBA seeks additional information on if and how that will change the economic impact of the development. Saying he remains concerned that the record does not contain sufficient evidence regarding the volume of water to be extracted from the ground for the development, Commissioner Chang supported reopening the record on all three topics in order to secure more information on whether the submittal of the 2022 FWMP to the Oregon Water Resources Department satisfies the "no net loss" standard with respect to groundwater sources for fish habitat mitigation. Peter Gutowsky, Community Development Director, shared that the public hearing has already been noticed for May 71h. Adding that the 120-day timeline is very short, he expressed concern about meeting that deadline in light of the Board's meeting schedule over the next two -plus months. Responding to Commissioner Chang, Senior Assistant Legal Counsel Stephanie Marshall confirmed that if the record is reopened, the Board could change its previous decision on the underlying application. She referred to the request from the Coordinated Tribes of Warm Springs to reopen the record with respect to whether the 2022 FWMP violates the 1855 Treaty with the Tribes of Middle Oregon. Discussion ensued regarding whether to reopen the record to all three issues or just to the topic of economic analysis. Commissioner DeBone found the no net loss standard from Fish and Wildlife to have been well -reasoned and said the matter pertaining to the Tribal treaty is more of a State -level issue. Saying that the Fish and Wildlife Management Plan is a County issue although it does interface with both state and federal law, Commissioner Chang said the County ignored valid issues involving Tribal treaty rights when deciding whether to approve Thornburgh's land use application. Noting she has seven binders of documents and records on this project, Commissioner Adair said no other proposed development in the County has likely received more scrutiny. BOCC MEETING APRII 16, 2025 PAGE 5 OF 9 Marshall said the County must submit its findings to LUBA at the end of July. Groves summarized that the question before the Board is whether it believes there is sufficient information in the record to address the two items beyond the topic of economic analysis, or if the record should be reopened on those as well to allow additional input to those issues. He stressed that the applicant has the burden of proof to show that its application conforms to all applicable regulations, Codes and other relevant conditions of approval. Commissioner Chang spoke to the timeline of legal challenges to this project since it was initially proposed and said because the applicant chose to file a new application very recently, it should not expect relief from having the new application reviewed according to standard procedure despite the lengthy proceedings and litigation experienced with regard to the previous application. ADAIR: Move approval of Board Order No. 2025-014 to reopen the record of the Thornburgh destination resort modification of approval application to allow and consider new testimony and evidence related to the economic analysis required pursuant to DCC 18.113(C)(3) and (4) for the Fish and Wildlife Management Plan, as remanded by the Oregon Land Use Board of Appeals DEBONE: Second VOTE: CHANG: No ADAI R: Yes DEBONE: Chair votes yes. Motion Carried 2 - 1 Groves said in accordance with the Board's decision, testimony at the public hearing on May 71h will be allowed only to the one issue of economic analysis and not to all three issues on remand from LUBA. Written testimony to the issue of economic analysis will also be accepted until May 71h 11. City of Bend Tax Increment Finance (TIF) Plans Nick Lelack, County Administrator, reported that the Bend Urban Renewal Agency has authorized three new Tax Increment Finance (TIF) developments, which, if built, would affect revenues to four of the County's taxing districts, namely: Deschutes County, Countywide Law Enforcement, County Extension, and 9-1-1. Lelack said the Board can provide comments to the Bend City Council with respect to these three new TIF proposals. BOCC MEETING APRIL 16, 2025 PAGE 6 OF 9 Jonathan Taylor, Urban Renewal Project Manager for the City of Bend, said the public hearing on this matter has been rescheduled to May 21 St and comments will be accepted through May 141h. Taylor described the three projects—Britta Ridge, Century and Veridian—and their estimated financial impacts on the property tax collections of the four County taxing districts which would be affected. Noting that the proposed exemption from property taxes would be in exchange for setting the rental amounts of some units to be affordable to households earning at or below 90% area median income (AMI), Commissioner Adair questioned why 90% AMI is considered affordable. Commissioner Chang said these units would provide middle income housing, which is also needed in addition to affordable housing. He stated his support for the use of the TIF program for these projects. Taylor added that the City conducted a housing market analysis which found a need for middle income housing. Commissioner DeBone spoke to possible future policy conflicts, questioned what would happen if the market went down, and said property tax exemptions which lower property tax collections can hinder local government from serving the community to the extent that otherwise would be expected. Adding that renters do not directly pay property taxes, he commented on how large bond and levy requests may be viewed by those who do not receive property tax bills. 12. Formation of Committee to Create Commission Districts Jen Patterson, Strategic Initiatives Manager, reviewed the Board's direction to staff to return with more information for three options on how to form a committee to establish Commission districts. Commissioner Chang said it is important to form the committee correctly, even if the ballot measure to create districts is delayed to November 2026 instead of May 2026. Commissioner Adair noted that each of the three options presented has associated options. Commissioner Chang referred to the value of randomly soliciting applications for the recent civic assembly, which facilitated the participation of many people who otherwise are unengaged in civic affairs. He supported appointing committee members who are representative of the county as a whole. BOCC MEETING APRIL 16, 2025 PAGE 7 OF 9 Commissioner DeBone agreed and supported this particular process, noting that the community could give input to the committee. Commissioner Chang said another option would be to utilize various methods of appointing committee members instead of just one. If State elected officials and the BOCC are invited to appoint committee members, he said the cities should be allowed appointments as well, proportionate to their population. Discussion ensued regarding how many members to appoint to the committee. Commissioner Adair supported appointing between 11 and 19, which Commissioner DeBone concurred with. Commissioner DeBone did not see the election timing issue (i.e., May or November) as a driver. Saying that the appointment process for State Home Rule Charter is clear and easily understood, he spoke to the process used for the recent civic assembly and said invitations could be sent via postcard with an online registration set up for respondents. Commissioner Chang said the civic assembly option would require educating respondents with respect to elections and precincts. He expected that this would take longer and cost much more than utilizing the charter process as the latter would involve political insiders selected by legislators, the BOCC and cities. Commissioner Adair agreed with the need to look at the cost of each option. Commissioner DeBone did not think it would be hard to instruct people on the task and how to complete it, and said staff can return with information on whether using the civic assembly process is a viable choice, cost -wise. Commissioner Chang said members appointed to the committee will need to understand what makes districting processes fair or unfair. Chair DeBone noted the consensus of the Board to direct staff to research the potential cost of hiring a facilitator and of mailing invitations to participate, including the price differential between sending these to every household or to every voter. OTHER ITEMS: None EXECUTIVE SESSION: None BOCC MEETING APRIL 16, 2025 PAGE 8 OF 9 ADJOURN: Being no further items to come before the Board, the meeting was adjourned at 11:07 am. DATED this Day of 2025 for the Deschutes County Board of Commissioners. ATTEST: RECORDING SECRETARY PHIL CHANG, CO MISSIONER BOCC MEETING APRIL 16, 2025 PAGE 9 OF 9 1<0"� E S COG�� BOARD OF COMMISSIONERS BOARD OF COUNTY COMMISSIONERS MEETING 9:00 AM, WEDNESDAY, APRIL 16, 2025 Barnes Sawyer Rooms - Deschutes Services Building - 1300 NW Wall Street - Bend (541) 388-6570 1 www.deschutes.org MEETING FORMAT: In accordance with Oregon state law, this meeting is open to the public and can be accessed and attended in person or remotely, with the exception of any executive session. Members of the public may view the meeting in real time via YouTube using this link: http://bit.ly/3mminzy. To attend the meeting virtually via Zoom, see below. Citizen Input: The public may comment on any topic that is not on the current agenda. Alternatively, comments may be submitted on any topic at any time by emailing citizeninput@deschutes.org or leaving a voice message at 541-385-1734. When in -person comment from the public is allowed at the meeting, public comment will also be allowed via computer, phone or other virtual means. Zoom Meeting Information: This meeting may be accessed via Zoom using a phone or computer. • To join the meeting via Zoom from a computer, use this link: http://bit.ly/3h3ogdD. • To join by phone, call 253-215-8782 and enter webinar ID # 899 4635 9970 followed by the passcode 013510. • If joining by a browser, use the raise hand icon to indicate you would like to provide public comment, if and when allowed. If using a phone, press *9 to indicate you would like to speak and *6 to unmute yourself when you are called on. • When it is your turn to provide testimony, you will be promoted from an attendee to a panelist. You may experience a brief pause as your meeting status changes. Once you have joined as a panelist, you will be able to turn on your camera, if you would like to. 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, call (541) 388-6572 or email brenda.fritsvold@deschutes.org. Time estimates: The times listed on agenda items are estimates only. Generally, items will be heard in sequential order and items, including public hearings, may be heard before or after their listed times. CALL TO ORDER PLEDGE OF ALLEGIANCE CITIZEN INPUT The Board of Commissioners provides time during its public meetings for citizen input. This is an opportunity for citizens to communicate to the Commissioners on matters that are not otherwise on the agenda. Time is limited to 3 minutes. The Citizen Input platform is not available for and may not be utilized to communicate obscene or defamatory material. Note: In addition to the option of providing in -person comments at the meeting, citizen input comments may be emailed to citizeninput@deschutes.org or you may leave a brief voicemail at 541.385.1734. CONSENT AGENDA Approval of Generative Artificial Intelligence (AI) Policy Updates 2. Approval to accept a Certified Local Government grant from the State of Oregon for historic preservation 3. Approval to accept a NEHA-FDA 2025 Track 3 Maintenance and Advancement Base and Training add -on grant, Document No. 2025-360 4. Consideration of Board Signature on letters thanking Dan Daugherty and Kevin Stock for service on the Project Wildfire Steering Committee 5. Consideration of Board Signature on letters appointing Robert Newey, and reappointing Gary Marshall, Andy Meeuwsen and Dean Richardson for service on the Project Wildfire Steering Committee 6. Consideration of Board Signature on letters appointing Patrick Addabbo, Kim Reynolds, and Meghan Windschill for service on the Bicycle and Pedestrian Advisory Committee 7. Approval of the minutes of the BOCC February 19 and 24 and March 17, 2025 meetings 8. Approval of the minutes of the April 4, 2025 BOCC Legislative Update meeting April 16, 2025 BOARD OF COUNTY COMMISSIONERS MEETING Page 2 of 3 ACTION ITEMS 9. 9:00 AM Proclamations: Sexual Assault Awareness Month Dark Sky Week National Public Safety Telecommunications Week National County Government Month 10. 9:30 AM Consideration of Board Order No. 2025-014 to reopen the record for the Thornburgh Destination Resort remand hearing proceedings 11. 9:45 AM City of Bend Tax Increment Finance (TIF) Plans 12. 10:00 AM Formation of Committee to Create Commissioner Districts 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 April 16, 2025 BOARD OF COUNTY COMMISSIONERS MEETING Page 3 of 3 o { BOARD OF COMMISSIONERS' MEETING REQUEST TO SPEAK Citizen Input or Testimony Subject: -- Date: Name r Address 'I Phone #s E-mail address In Favor Neutral/Undecided ❑ Opposed Submitting written doc uments as art of testimony? Yes No p Y If so, please give a copy to the Recording Secretary for the record. SUBMIT COMPLETED REQUEST TO RECORDING SECRETARY BEFORE MEETING BEGINS 04/16/2025 Item #14. E S COG2� o BOARD OF COMMISSIONERS MEETING DATE: April 16, 2025 SUBJECT: City of Bend Tax Increment Finance (TIF) Plans BACKGROUND AND POLICY IMPLICATIONS: The purpose of this agenda item is for Bend Urban Renewal Area Managerjonathon Taylor to provide an overview of the Bend Urban Renewal Agency's (BURA) authorization of three new TIF areas in Bend, and to determine if the Board of Commissioners wants to submit written comments to the City of Bend City Council regarding these authorizations. Written comments are due by 5 p.m. on May 6, 2025. The attached letter and proposed TIF Plans and TIF Reports provide a comprehensive package of information, including impacts to all taxing districts for the proposed Britta Ridge TIF District, Century TIF District, and Veridian TIF District. The County received separate submittals for Deschutes County, Countywide Law Enforcement, County Extension, and 9-1-1. Each submittal provided detailed impacts for each taxing district as well as impacts to all taxing districts. Although the attached letter only provides the impacts to Deschutes County, impacts to all taxing districts are included in the TIF Plans and TIF Report. According to the letter from BURA, "These applicants [for the three TIF districts] have proposed to build four multi -unit development projects on four historically vacant and undeveloped properties. These projects will deliver 695 residential units and restrict 18% of those to rents affordable to and restricted for households earning at or below 90% area median income, with annual rent increases at less than the statutory maximums for those restricted units." The Bend City Council will consider all written comments and public testimony provided at the Council public hearing on May 21, 2025. BUDGET IMPACTS: The estimated impacts to the permanent rate collections of the County's taxing districts over the life of the TIF Plans (32 years) are projected as follows: 57' _ Deschutes County: ($7,142,620) Countywide Law Enforcement: ($6,984,490) Extension: ($125,162) 9-1-1: ($2,021,591) ATTENDANCE: Nick Lelack, County Administrator Jonathon Taylor, Bend Urban Renewal Area Manager BEND URBAN RENEWAL AGENCY March 20, 2025 Nick Lelack Di recto r Deschutes County PO Box 6005 Bend, Oregon 97708-6005 Salutation, On March 19, 2025, the Bend Urban Renewal Agency (BURA) adopted resolutions authorizing three tax increment finance plans (TIF Plans) and the accompanying reports (TIF Reports) that would create three new TIF areas in Bend, if adopted by the Bend City Council: the Britta Ridge TIF District, Century TIF District, and Veridian TIF District.l. To adopt a tax increment finance plan, the City of Bend must send the proposed TIF Plans and TIF Report affected taxing districts for their review and comment. The Bend City Council (Council) will accept, reject, or amend the proposed TIF Plans in response to any written comments received from the affected taxing districts. On May 7, 2025, Council is scheduled to hold a public hearing and consider adoption of ordinances adopting each proposed TIF Plans, The Council meeting will begin at 7:00 P.M at City Hall, 710 NW Wall Street, Bend, Oregon. This letter officially transmits the proposed TIF Plans and TIF Reports for all three TIF areas to the Deschutes County for review and comment. Should your district wish to convey any comments or a recommendation regarding the enclosed TIF Plans and TIF Reports for Council's consideration, please provide in writing by 5 p.m. on May 6, 2025, to: jtaylor@bendoregon.gov. All comments received by that date will be provided for City Council consideration. You may appear at the public hearing and provide testimony in person as well. Council will respond to written comments received by that deadline from the affected taxing districts during the Council meeting on May 7, 2025. 1 Tax increment finance or TIF is synonymous with "urban renewal", and is used in place of the term "urban renewal," to more accurately describe the funding mechanism implemented by these documents. PO Box 431 Bend, OR 97709 (541) 388-5505 bendoregon.gov TIF PLANS AND TIF REPORTS BACKGROUND: On October 18, 2024, BURA adopted Resolution 158 establishing the Tax Increment Assistance for Housing Affordability and Employment Growth Policy (Policy). This Policy authorized the use of tax increment financing for development assistance for single or small number of parcels for multi -unit residential developments, with at least 15% of new units rented at rates affordable to and restricted for households earning 90% area median income or less, and rent increases at less than the statutory maximums for the restricted units. This policy was crafted with over twenty-five public involvement opportunities between March and September 2024. In Quarter 1, 2025, four applicants applied for the Policy Assistance. These applicants have proposed to build four multi -unit development projects on four historically vacant and undeveloped properties. These projects will deliver 695 residential units and restrict 18% of those to rents affordable to and restricted for households earning at or below 90% area median income, with annual rent increases at less than the statutory maximums for those restricted units. Three new TIF areas are proposed to provide assistance as contemplated in the Policy to these developments. On February 19, 2025, BURA held a work session to consider if each of the applications met the intent of the Policy, if the sites were eligible for TIF assistance under state law, and the total economic impact of assistance for the projects. BURA directed staff to draft the necessary documents to establish tax increment finance areas for each of these projects. On March 19, 2025, BURA adopted a resolution authorizing the release of the TIF Plans and TIF Reports for formal public review and consideration for adoption by City Council. BRITTA RIDGE: The Britta Ridge TIF Area, shown in Figure 1 of the attached Britta Ridge TIF Plan, consists of approximately 6.16 acres of land including rights -of -way. The proposed maximum indebtedness, the maximum amount of funds that may be spent on projects in the TIF Area, is $14,666,437. The projects allowed under the Plan are development assistance for the multi -unit residential project and administrative expenses. The maximum indebtedness is set by forecasting the annual increased tax revenue for BURA from the proposed housing project and is financially feasible for BURA. The Britta Ridge TIF Plan is 32-years. CENTURY: The Century TIF Area, shown in Figure 1 of the attached Century TIF Plan, consists of approximately 9.2 acres of land including rights -of -way. This TIF Area would include assistance for two housing developments. The proposed maximum indebtedness, the maximum amount of funds that may be spent on projects in the TIF Area, is $49,613,485. The projects allowed under the Plan are development assistance for the multi -unit residential projects and administrative expenses. The maximum indebtedness is set by PO Box 431 Bend, OR 97709 (541) 388-5505 bendoregon.gov forecasting the annual increased tax revenue for BURA from the proposed housing project, and is financially feasible for BURA. The Century TIF Plan is 32-years. VERIDIAN: The Veridian TIF Area, shown in Figure 1 of the attached Veridian TIF Plan, consists of approximately 2,81 acres of land including rights -of -way. The proposed maximum indebtedness, the maximum amount of funds that may be spent on projects in the TIF Area, is $8,782.431. The projects allowed under the Plan are development assistance for the multi -unit residential project and administrative expenses. The maximum indebtedness is set by forecasting the annual increased tax revenue for BURA from the proposed housing project, and is financially feasible for BURA. The Veridian TIF Plan is 30-years. IMPACT ON TAXING JURISDICTIONS: The impact of tax increment financing on affected taxing districts consists primarily of the property tax revenues foregone on permanent rate levies as applied to the growth in assessed value within the TIF area. The projections for impacts on the affected taxing districts are estimated through fiscal year end. IMPACT ON PERMANENT RATE LEVY: The proposed TIF plans would result in a decrease in the permanent rate property tax collections for each taxing district, for the life of each TIF plan. BURA only collects tax increment revenue for the length of time necessary to pay off the TIF plan's stated maximum indebtedness. For the three proposed plans, no bonds will be issued. The only debt for each plan will be the development assistance, primarily in the form of an annual rebate, for each housing development. Table 1 shows the estimated impact to the Deschutes County permanent rate collections over the life of the TIF Plans. The total estimated impact over the projected 32 years for all plan areas is $7,142,620. This represents the amount that would be collected and provided over 32 years, if the developments were to occur without the tax increment finance development assistance under the plans. PO Box 431 Bend, OR 97709 (541) 388-5505 bendoregon.gov FYE 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050 2051 2052 2053 2054 2055 2056 2057 Total TABLE 1- IMPACT To DESCHUTES COUNTY Britta Ridge A_rea2 Century Area3 Veridian Area" $10 $137 -- $0 a.._ $21 $277 $0 $30,010 $88,062 $19,999 _. $30,920 $103,673 $20,699 $31,858 $106,920 $21,217 $32,824 $33,819 $110,264 __.� __._._....._ $113,708 a $21,853 $22,509 $34,844 $117,256 $23,184 $35,900 mm $120,910 $23,880 $36,987 $124,674 $24,596 $38,107 $128,551 $25,334 $39,261 $132,544 ___._..__.... $26,094 $40,449 $136,656 $26,877 $41,673 � $140,893 $27,683 $42,933 $145,256 $28,514 $44,231 $149,750 $29,369 mMMv$30,250 $45,569 $154,379 $46,946 _-..._ $159,147 $31,158 $48,365 $164,058 N $32,093 $49,826 $169,116 -_$33,055 ~^ $51,331 $174,326 $34,047 - -u-i $52,881 $179,692 $35,068 - $54,478 �__...._��.�.�.»%..$56,123 $185,220 � $190,913 -- $36,120 $37,204 $57,817 $196,777 -__-�$38,320 $ 59,562 $202,816 _ $39,470 $61,359 $209,037 $40,654 $63,210 $215,445 - $41,873 $65,116 � ^ $222,045 $43,130 $67,080 $228,843 $44,424 _.�_.�.. $69,103 -"..__.___.__.._.._..$235,845 $71,186 _ $243,056 $1,433,800 _ $4,850,244 $858,576 Source: City of Bend 2 Table 5 Project Impact, Report on Britta Ridge TIF District 3 Table 5 Project Impact, Report on Century TIF District 4 Table 5 Project Impact, Report on Veridian TIF District PO Box 431 Bend, OR 97709 (541) 388-5505 bendoregon.gov REVENUE SHARING: Revenue sharing was a feature of 2009 legislative changes in TIF law. Revenue sharing thresholds are not expected to be met in the period of the TIF Plan. If actual assessed value- growth in the tax increment area exceeds the projections made in TIF Plan and TIF Report, revenue sharing could occur. GENERAL OBLIGATION BONDS AND LOCAL OPTION LEVIES: The TIF Plan will not impact general obligation (GO) bonds and/or local option levies. Developments within each plan area will be assessed for any applicable GO bonds and levies. TAX REVENUES AFTER TERMINATION OF TIF AREA: Upon termination of a TIF area, all future tax revenue will be distributed to the affected taxing districts. The TIF reports identify the projected tax revenues for affected taxing districts in the year after the termination of each TIF area. Tables 2 through 4 show the projected tax revenues for the Deschutes County for the year after the termination of each TIF area. These are estimates only; changes in the economy may impact the projections. - - - - - -- Revenue from Revenue from Excess Total Revenue Frozen Base Value $344 $73,322 $84,195 Source: City of Bend; Table 6— Report Accompanying Britto Ridge Area TIF Plan Revenue from Revenue from Excess I Total Revenue Frozen Base Value $4,550 $250,348 $254,899 -- Source: City of Bend; Table 6 — Report Accompanying Century Area TIF Plan Revenue from Revenue from Excess Total Revenue Frozen Base I Value ;_$0 $45,756_ ---� $45,756 1 Source: City of Bend, Table 6 — Report Accompanying Veridian Area TIF Plan PO Box 431 Bend, OR 97709 (541) 388 5505 bendoregon.gov PROCESS FOR REVIEW: The process for review and adoption of the TIF plans by the Bend City Council include the following steps: March 19, 2025 Bend Urban Renewal Agency Review March 26, 2025 Send Formal Notice to Taxing Jurisdictions April 14, 2025 Planning Commission Review April 24, 2025 (tentative) Presentation to Deschutes County Commission May 6, 2025 Written Comment Deadline May 7, 2025 City Council Public Hearing and First Reading City Council Second Reading and Vote May 21, 2025 For more information, please contact Jonathan Taylor, Urban Renewal Manager, at 541.322.6332 or jtaylor@bendoregon.gov. ncy Attachments: A) Britta Ridge Tax Increment Finance Plan B) Report on the Britta Ridge Tax Increment Finance Plan C) Century Tax Increment Finance Plan D) Report on the Century Tax Increment Finance Plan E) Veridian Tax Increment Finance Plan F) Report on the Veridian Tax Increment Finance Plan PO Box 431 Bend, OR 97709 (541) 388-5505 bendoregon.gov Language Assistance Services & Accommodation Information for People with Disabilities You can obtain this information in alternate formats such as Braille, electronic format, etc. Free language assistance services are also available. Please Jonathan Taylor, Urban Renewal Manager at jtaylor@ bend oregon.gov or 541-322-6332 Relay Users Dial 7-1-1. 0 Servicios de asistencia lingiiistica a informaci6n sobre alojamiento para personas con discapacidad Puede obtener esta informaci6n en formatos alternativos como Braille, formato electr6nico, etc. Tambi6n disponemos de servicios gratuitos de asistencia lingiiistica. P6ngase en contacto con Jonathan Taylor, Urban Renewal Manager en jtaylor@bendoregon.gov o 541-322-6332 Los usuarios del servicio de retransmisi6n deben marcar el 7-1-1. PO Box 431 Bend, OR 97709 (541) 388-5505 bendoregon.gov Britta Ridge Tax Increment Finance Plan DRAFT FOR PUBLIC COMMENT AND REVIEW NOT ADOPTED tDD; CITY OF BENCH BUILDING ON OUR PAST SERVING THE PRESENT SHAPING BEND'S FUTURE LIST OF PARTICIPANTS Mayor Melanie Kebler Mayor Pro tern Megan Perkins City Council Gina Franzosa Ariel Mendez Mike Riley Megan Norris Steve Platt Planning Commission Margo Clinton, Chair Scott Winters, Vice -Chair Bob Gressens Suzanne Johannsen John LaMotte Erin Ludden Nathan Nelson City Manager Eric King City Finance Director Samantha Nelson City Attorney Ian Leitheiser Senior Assistant City Attorney Elizabeth Oshel Real Estate Director Matt Stuart Urban Renewal Manager Jonathan Taylor Planning Manager Renee Brooke Housing Manager Racheal Baker Bend Urban Renewal Agency Mike, Riley, Chair Gina Franzosa, Vice -Chair Ariel Mendez Megan Noris Steve Platt Melanie Kebler Megan Perkins Core Area Advisory Board Corie Harlan, Chair Dale VanValkenburg, Vice -Chair Dawn Cofer Hank Kamakaala James Teeter Jeff Baker John Fischer John Heylin Katherine Austin Bend Economic Development Advisory Board Gary North, Chair DaWayne Judd, Vice -Chair Briana Manfrass Jenn Lynch Jillian Taylor Mark Kroncke Petra Oroslanova Ryan Andrews Tierney Booker Affordable Housing Advisory Committee Mandy Dalrymple Alison Hohengarten Ian Karasz Tony Levison Isabel Mikovich Richard Reese Helen Silfven Heather Simmons Geoff Wall TABLE OF CONTENTS 1. DEFINITIONS 4 11. INTRODUCTION 7 III. MAXIMUM INDEBTEDNESS 9 IV. PLAN GOALS 10 V. TIF AREA PROJECT CATEGORIES 12 VI. TIF AREA PROJECTS 12 VII. AMENDMENTS TO PLAN 12 VIII. PROPERTY ACQUISITION AND DISPOSITION 13 IX. RELOCATION METHODS 13 X. TAX INCREMENT FINANCING OF PLAN 14 XI. ANNUAL REPORT 14 XII. RELATIONSHIP TO LOCAL OBJECTIVES 14 XIII. PLAN AREA LEGAL DESCRIPTION 20 1. DEFINITIONS "Agency" or "BURA" means the Bend Urban Renewal Agency. The Agency is responsible for administration of this Britta Ridge TIF Plan and other TIF plans previously adopted in the City of Bend. "Annual report" is the report required by ORS 457.460 that is filed with the City of Bend and distributed to the taxing districts. "Area" or "TIF Area" or "Plan Area" means the tax increment finance area established for this Plan pursuant to ORS chapter 457, and described in Section XIII of the Plan, below, including the properties and rights -of -way located therein. "Area Median Income" or "AMI" means the area median income as determined by the most recent United States Department of Housing and Urban Development for the Bend Metropolitan Statistical Area at the time of the household's application for housing. "Blight" is defined in ORS 457.010(1)(a-i) and identified in the ordinance adopting a TIF plan. "Board of Commissioners" means the Deschutes County Board of Commissioners. "City" means the City of Bend, Oregon. "City Council" or "Council" means the Bend City Council. "Comprehensive Plan" means the City of Bend Comprehensive Plan and its implementing ordinances, policies, and standards. "County" means Deschutes County, Oregon. "Fiscal year" or "FYE" means the year commencing on July 1 and closing on June 30. "Frozen base" means the total assessed value including all real, personal, manufactured, and utility values within a TIF area at the time of adoption. The county assessor certifies the assessed value after the adoption of a TIF area plan. "Increment" means that part of the assessed value of a taxing district attributable to any increase in the assessed value of the property located in an urban renewal area, or portion thereof, over the assessed value specified in the certified statement from the assessor (frozen base). "Maximum indebtedness" means the amount of the principal of indebtedness included in a plan pursuant to ORS 457.190 and does not include indebtedness incurred to refund or refinance existing indebtedness. The maximum indebtedness for this Plan is $14,666,437. "More Affordable Housing" is housing that is rented at rates equal to or less than 30% of household income to households earning 90% of area median income (AMI) or less. It assumes housing is available to residents at a range of incomes, at or below 90 percent of AMI. "Municipality" means any county or any city in the state of Oregon. 4 1 Britta Ridge Tax Increment Finance Plan "ORS" means the Oregon Revised Statutes and specifically Chapter 457, which relates to urban renewal. "Plan" or "Britta Ridge TIF Plan" or "TIF Plan" means the adopted plan for the TIF Area pursuant to ORS chapter 457. "Planning Commission" means the Bend Planning Commission. "Policy" means the Policy for Tax Increment Assistance for Housing Affordability and Employment Growth adopted by BURA Resolution No. 158 on October 16, 2024. "Policy Justification" means a document with an analysis of the local housing and employment market for the City of Bend used to establish policy parameters for the Tax Increment Assistance for Housing Affordability and Employment Growth. "Project(s)" or "TIF Project(s)" means any work or undertaking carried out under the Britta Ridge TIF Plan. "Report Accompanying Britta Ridge TIF Plan" or "Report" means the official report that accompanies the Britta Ridge TIF Plan pursuant to ORS 457.087. "Revenue sharing" means sharing tax increment proceeds as defined in ORS 457.470. "Tax increment" means that part of the assessed value of a taxing district attributable to any increase in the assessed value of the property located in an urban renewal area, or portion thereof, over the assessed value specified in the certified statement. "Tax increment finance area" or "TIF area" means a blighted area included in a TIF plan. "Tax increment finance area plan" or "TIF plan" means a plan, as it exists or is changed or modified from time to time, for one or more TIF areas, as provided in ORS 457. "Tax increment finance area project(s)" or "TIF area project(s)" or "project(s)" means any work or undertaking carried out under ORS 457.170 and ORS 457.180 in a TIF area. "Tax increment finance area report" or "report" means the official report that accompanies the TIF plan pursuant to ORS 457.087. "Tax increment finance" or "tax increment financing" or "TIF" means the funds that are associated with the division of taxes accomplished through the adoption of a TIF plan. "Tax increment revenues" means the funds allocated by the assessor to renewal TIF area due to increases in assessed value over the frozen base within the area. "UGB" means urban growth boundary. "Urban Renewal" means the statutory authority provided in ORS 457. In this Plan it is synonymous with TIF. Note on language: This Plan, wherever applicable and permissible, uses the term Tax Increment Finance or TIF rather than "urban renewal". The term TIF is used consistently in other parts of the nation and does not evoke past practices of other urban renewal agencies throughout the country wherein minorities and vulnerable populations were displaced to clear the way for 5 1 Britta Ridge Tax Increment Finance Plan redevelopment. This Plan aims to avoid those connotations and has been created with intention to avoid those outcomes. Utilizing the term TIF does not affect the statutory authority of ORS 457, as it relates to this Plan. 6 1 Britta Ridge Tax Increment Finance Plan INTRODUCTION This Britta Ridge TIF Plan was developed for the Bend City Council based on the Policy for Tax Increment Assistance for Housing Affordability and Employment Growth adopted by BURA Resolution No. 158 on October 16, 2024, to support the development of new multi -unit housing with minimum numbers of more affordable units by providing development assistance in existing or through the creation of new TIF areas. The Policy was developed with input from BURA and the City advisory bodies — Core Area Advisory Board, Bend Economic Development Advisory Board, and the Affordable Housing Advisory Committee. This Plan was developed with public input at BURA meetings, a Planning Commission meeting, and meetings of the Bend City Council. This Plan will go into effect following adoption by the City Council. A. Background The Bend Urban Renewal Agency's Policy Justification for the Policy noted: Bend has a very low residential vacancy rate and many households are spending more than 30% of their household income on housing costs. An average individual/household would need to make $72,000 to not be cost burden to afford current market rent. Currently, 81% of occupations in the Bend Redmond MSA cannot adequately support market rate rent on a single income. Those making $43,000 or less account for nearly 50% of total employment. The number of Bend households that cannot adequately afford market rate rent is 45%.1 Providing incentives for housing affordability starting at 90% area median income for multi- unit rental units, with additional incentives for developments meeting certain energy efficiency and supplier diversity criteria, will assist in meeting the City of Bend's affordable housing and other Council goals. The City of Bend currently incentivizes housing affordable to households making 60% and 80% AMI or less through its Non -Profit and Qualifying Rental Property Tax Exemptions. This Plan and Projects incentivize creation of additional units of market rate housing integrated with units that are affordable to households making 90% AM[ or less. ORS chapter 457 allows for the use of tax increment revenues, a financing source that is unique to TIF areas, to fund projects within a specific boundary. Tax increment revenues - the amount of property taxes generated by the increase in total assessed values within a TIF area from the time an area is first established - are used to repay borrowed funds or meet contractual obligations. The borrowed funds and contractual obligations fund projects within an area that meet the goals of the plan and cannot exceed the maximum indebtedness amount set by a TIF plan. The purpose of a TIF area is to improve specific areas of a municipality that are poorly developed or underdeveloped, called blighted areas in ORS chapter 457. These areas can Bend Urban Renewal Policy Justification for the Tax Increment Assistance for Housing Affordability and Employment Growth, presented on August 7, 2024 7 1,Britta Ridge Tax Increment Finance Plan have property that is undeveloped or underdeveloped, old or deteriorated buildings, streets and utilities in poor condition, a complete lack of streets and utilities altogether, or other obstacles to development. In general, TIF area projects funded with tax increment can include construction or improvement of streets, utilities, and other public facilities, assistance for development, rehabilitation or redevelopment of property, and improvements to public spaces. The Bend Urban Renewal Agency's Policy allows the creation of TIF areas consisting of a single or small number of tax lots in the City currently not included in an existing tax increment area to support construction of new housing that includes More Affordable Housing, for households earning 90% AMI or less. The development assistance for the project in the new TIF area may consist of a rebate of a portion of the tax increment to the property owner in exchange for making a minimum percentage of units available to households earning 90% AM or less at rents affordable to those households, and agreeing to limit annual rent increases to lower than the maximum rental increases allowed under ORS 90.323 for those rent restricted units. The actual rebate amount and number of affordable units in the development will be set in an agreement between BURA and the property owner and based on the Policy for Tax Increment Assistance for Housing Affordability and Employment Growth, consistent with the provisions of this Plan. This Plan will support the development of housing that includes More Affordable Units and the other requirements of the Policy, in an area known as Britta Ridge, shown in Figure 1. The Plan reflects input from the community received at public meetings at the Agency and hearings before the Planning Commission and the City Council. The Plan is anticipated to last 32 years, resulting in 30 years of tax increment collection. The Plan is to be administered by the Agency. Substantial amendments to the Plan must be approved by City Council as outlined in Section VII of this Plan. All amendments to the Plan are to be listed numerically on the inside over of the front page of the Plan and then incorporated into the Plan, document and noted by footnote with an amendment number and adoption date. The relationship between the sections of the Plan and the ORS 457.085 requirements is shown in Table 1. The specific reference in the table below is the section of this Plan that primarily addresses the statutory reference. There may be other sections of the Plan that also address the noted statute. Table 1- Statutory References Statutory Requirement Plan Section ORS 457.085(2)(a) V, VI ORS 457.085(2)(b) V, VI ORS 457.085(2)(c) XIII 8 1 Britta Ridge Tax Increment Finance Plan ORS 457.085(2)(d) XII XI IX ORS 457.085(2)(e) ORS 457.085(2)(f) ORS 457.085(2)(g) VIII Ill ORS 457.085(2)(h) ORS 457.085(2)(i) VII B. TIF Area Overview The Britta Ridge TIF Plan Area shown in Figure 1, consists of approximately 6.16 total acres. This TIF Area meets the definition of a blighted area due to its infrastructure deficiencies, including inadequate streets and rights -of -way, undeveloped status resulting in the unproductive land that is potentially useful and valuable for contributing to the public health, safety, and welfare as the location of new housing units, and impaired investments. These blight conditions are specifically cited in the ordnance adopting the Plan and described in detail in the Report. The Report contains the information required by ORS 457.087, including: • A description of the physical, social, and economic conditions in the area; • The expected impact of the Plan, including fiscal impact in light of increased services; • Reasons for selection of the Area; • The relationship between each Project to be undertaken and the existing conditions; • The estimated total cost of each Project and the source(s) of funds to pay such costs; • The estimated completion date of each Project; • The estimated amount of funds required in the Area and the anticipated year in which the debt will be retired; • A financial analysis of the Plan; • A fiscal impact statement that estimates the impact of tax increment financing upon all entities levying taxes upon property in the Area; and • A relocation report. III. MAXIMUM INDEBTEDNESS Maximum indebtedness is a legal term for the total amount of money that can be spent on projects, programs, and administration throughout the life of the Plan. The maximum amount of indebtedness that may be issued or incurred under the Plan, based upon good faith 9 1 Britta Ridge Tax Increment Finance Plan estimates of the scope and costs of projects in the Plan and the schedule for their completion, is $14,666,437 (Fourteen Million Six Hundred and Sixty Six Thousand, Four Hundred and Thirty Seven Dollars).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. The projects under this plan are not anticipated to be financed through bonds, but primarily through rebate of property taxes paid. IV. PLAN GOALS The goals of the Plan represent its basic intent and purpose. The TIF Projects identified in Sections V and VI of the Plan are specific means of meeting the goals. The goals will be pursued as economically as is feasible and at the discretion of the Agency. A. Housing Development To increase the supply of housing by providing financial incentives for the development of housing in the City of Bend. B. Encourage More Affordable Housing To increase the supply of more affordable housing options by providing financial incentives for the development of more affordable housing in the City of Bend. C. Encourage Energy Efficiency Housing To increase the number of energy -efficient certified housing projects by providing financial incentives for the utilization of energy efficiency standards in the construction of housing projects that lower overall housing costs for households and reduce carbon emissions. D. Administration. To provide administrative support for the implementation of the Plan. 10 1 Britta Ridge Tax Increment Finance Plan Figure 1— Britta Ridge TIF Area Source: City of Bend 11 I Britta Ridge Tax Increment Finance Plan V. TIF AREA PROJECT CATEGORIES To support the Plan Goals described in the previous section, the Projects within the Area fall into the following categories: A. Housing Development and Development Incentives, Partnership, and Support B. Plan Administration, implementation, Reporting, and Support A. TIF AREA PROJECTS The Projects authorized by the Plan are: A. Housing Development and Development Assistance, Partnership, and Support This Project will provide incentives for the development of housing units and More Affordable Housing in the Plan Area. The development to be supported by this Project is a multi -unit residential complex in the Area approved by the City of Bend under application number PLSPR20211127, as such approval may be modified, consistent with the goals of this Plan. Incentives may be in the form of either an annual tax increment reimbursement payment over a specified period and/or payment of City development fees associated with the proposed development project (i.e., system development charges) ("Assistance"). The form of Assistance for the Project will be determined through a development agreement with the developer of the housing that stipulates the amount and timing of the development and the amount and timing of the incentive. BURA staff will conduct pre -development meetings with a developer of property within the Area to identify the financing needs of the site. Staff will recommend a financing package not to exceed the maximum indebtedness to the Agency that will contain recommendations on the appropriate length of incentive through negotiations with the developer for the development of the housing units. A development agreement, approved by the Agency will set out the method of providing the Assistance to the eligible project and a commitment by the developer owner for providing the required More Affordable Units. A guideline for the amount of Assistance is provided in the Report accompanying the Plan. B. Plan Administration, Implementation, Reporting, and Support The Agency may provide administration of the Plan including but not limited to staff support, legal counsel assistance, review of annual payments, financial statements, budget preparation, and annual reports pursuant to ORS 457.460. VII. AMENDMENTS TO PLAN The Plan may be amended as described in this section. 12 1 Britta Ridge Tax Increment Finance Plan A. Substantial Amendments Substantial Amendments, in accordance with ORS 457.085(2)(i), shall require the same notice, hearing, and approval procedure required of the original Plan under ORS 457.095, including public involvement, consultation with taxing districts, presentation to BURA, the Planning Commission, and adoption by the City Council by non - emergency ordinance after a hearing. Notice of such hearing shall be provided to individuals or households within the City, as required by ORS 457.120. Substantial Amendments shall be processed in accordance with ORS 457.095 and 457.220. Substantial Amendments are amendments that: 1. Add land to the Area, representing more than 1% of the existing area of the Area; z or 2. Increase the maximum amount of indebtedness that can be issued or incurred under the Plan. B. Minor Amendments Minor Amendments are amendments that are not Substantial Amendments as defined in this Plan and in ORS chapter 457. Minor Amendments require approval by BURA by resolution. The projects proposed in the Plan and Report are organized by project categories. If BURA determines that the allocation of funds within a project category should be adjusted based on needs within the Area, they may do so through a Minor Amendment.-3 Vill. PROPERTY ACQUISITION AND DISPOSITION Property acquisition and disposition are not eligible activities under the Plan. IX. RELOCATION METHODS There are no persons living in or business situated in the Plan Area, therefore relocation is not part of this Plan. 2 Unless otherwise permitted by state law, no land equal to more than 20 percent of the total land area of the original Plan shall be added to the urban renewal area by amendments, and the aggregate amount of all amendments increasing the maximum indebtedness may not exceed 20 percent of the Plan's initial maximum indebtedness, as adjusted, as provided by law, with increases beyond that amount requiring concurrence as stated in ORS 457, 3 Project costs may be impacted by grants, timing, cost savings, inflation, or other external forces unanticipated at this time but which may occur over the 32-year life of this Area. 13 1 Britta Ridge Tax Increment Finance Plan X. TAX INCREMENT FINANCING OF PLAN Tax increment financing consists of using annual tax increment revenues to make payments on debt, usually in the form of bank loans or revenue bonds, or contractual obligations for TIF projects under a TIF plan. Tax increment revenues are the revenue received from increases in property taxes based on the increase in assessed value within a TIF area over the total assessed value from the time a plan is adopted. Increment does not include property taxes levied to pay for General Obligation (GO) bonds and local option levies. A. General description of the proposed financing method The Plan will be financed using tax increment revenues. Revenues obtained by the Agency will be used to pay or repay the costs, expenses, advancements, and indebtedness incurred in planning and undertaking project activities, and otherwise exercising any of the powers granted by ORS Chapter 457 in connection with the planning and implementation of this Plan, including preparation of the Plan. No bonds will be issued to finance the activities in the Plan. B. Tax increment financing The Plan may be financed, in whole or in part, by tax increment revenues allocated to BURA, 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 pursuant to ORS 457.440 shall be deposited into the unsegregated tax collections account and distributed to BURA based upon the distribution schedule established under ORS 311.390. Should a court of competent jurisdiction find any work, clause, sentence, section or part of this Plan to be invalid, the remaining words, clauses, sentences, sections or parts shall be unaffected by such findings and shall remain in full force and effect for the duration of this Plan. Xl. ANNUAL REPORT BURA shall file an Annual Report in compliance with ORS 457.460. XI1. RELATIONSHIP TO LOCAL OBJECTIVES ORS 457.085 requires that the Plan describe the relationship of the plan to definite local objectives regarding appropriate land uses and improved traffic, public transportation, public utilities, telecommunications utilities, recreational and community facilities and other public improvements. This section provides that analysis. Relevant local planning and development objectives are set out in the Bend Comprehensive Plan, Bend Economic Development Advisory Board Strategic Plan, and the Bend Development Code. This section describes the purpose and 14 1 Britta Ridge Tax Increment Finance Plan intent of these plans, the main applicable goals and policies within each plan, and an explanation of how this Plan conforms to the applicable goals and policies. The numbering of the goals and policies within this section reflects the numbering that occurs in the original document. The language from the original document is in italics. All of the land in the Area is designated Mixed Employment (ME) in the Comprehensive Plan, and zoned Mixed Employment in the Bend Development Code. Allowed land uses, maximum densities, and building, requirements for all land in the Area are governed by the Bend Development Code, as described in subsection C of this Section Xlll. A. Bend Comprehensive Plan The analysis of how the Plan conforms to the Comprehensive Plan covers the most relevant sections, but may not cover every section of the Comprehensive Plan that relates to the Plan. If the Comprehensive Plan policies identified in the Plan are updated in the future, this document will automatically incorporate those updates without the Plan having to be formally amended. If a Substantial Amendment is completed in the future, this section of the Plan should be updated at that point. Below are applicable Comprehensive Plan policies and statements of how the Plan conforms to these Comprehensive Plan policies. Chapter 1 Citizen Involvement Policies 1-4 The City and special districts shall work toward the most efficient and economical method for providing their services within the UGB. 1-7 The City will encourage compact development and the integration of land uses within the Urban Growth Boundary to reduce trips, vehicle miles traveled, and facilitate non - automobile travel. 1-8 The City and county will encourage infill and redevelopment of appropriate areas within the Bend Central Core, Opportunity Areas and Transit Corridors. 1-15 The City shall continue to use advisory committees in their planning process, members of which are selected by an open process, and who are widely representative of the community. 1-16 The City will use other mechanisms, such as, but not limited to, meetings with neighborhood groups, planning commission hearings, design workshops, and public forums, to provide an opportunity for all the citizens of the area to participate in the planning process. Finding: The Plan conforms to Chapter 1 Citizen involvement as there has been extensive citizen involvement in the preparation of the Plan and all related BURA policies. The Plan and 15 1 Britta Ridge Tax Increment Finance Plan Project support compact development within the Urban Growth Boundary by supporting residential development in the Mixed Employment (ME) zone, near residential and commercial uses. The Area is in a Transit Corridor as identified in Figure 11-1 of the Comprehensive Plan, and the identified Project supports infill development on currently undeveloped lots. Over twenty-five opportunities for public involvement were provided in the course of development of the Policy supporting this Plan. In this process, the Bend Economic Development Advisory Board, the Affordable Housing Advisory Committee, Core Area Advisory Board, the Bend Chamber of Commerce, Economic Development of Central Oregon, and a round table of housing developers provided input on development of the Policy supported by the this Plan. Specific to public improvement in this Plan, BURA, the Planning Commission, and the City Council all held public meetings regarding this Plan, at which public comment was accepted prior to the adoption of this TIF Plan and Report. Chapter 5 Housing Policies 5-7 The City will continue to create incentives for and remove barriers to development of a variety of housing types in all residential zones, consistent with the density ranges and housing types allowed in the zones. This policy is intended to implement the City's obligation under the State Housing Goal to "encourage the availability of adequate numbers of needed housing units at price ranges and rent levels which are commensurate with the financial capabilities of Oregon households and allow for flexibility of housing location, type, and density". 5-18 The City will assist in identifying, obtaining and leveraging funding sources for the development of new housing for very low, low, and moderate - income residents, as determined by appropriate percentages of Area Median Family income in the Housing Needs Assessment. 5• 31 Residential areas will offer a wide variety of housing types in locations best suited to a range of housing types, needs and preferences. 5­38 Medium -and high -density residential developments should have good access to transit, K- 12 public schools where possible, commercial services, employment and public open space to provide the maximum access to the highest concentrations of population. Policy 5-20 defines affordable, in the case of dwelling units offered for rent, as housing for which the rent and utilities constitute no more than 30 percent of such gross annual household income for a family at 60% of the area median income, based upon most recent HUD Income limits for the Bend MSA. Policy 5-20 provides that other programs or policies can specify other levels of affordability. Finding: The Plan conforms to Chapter 5 Housing as the Housing Development and Development Assistance, Partnership, and Support Project will encourage the development of housing for households earning 90% AMI or less, along with market rate units, meeting housing needs identified in the Oregon Housing Needs 2025 Methodology for the Bend UGB, supporting 16 1 Britta Ridge Tax Increment Finance Plan the goals of the Comprehensive Plan and Policy 5-20 to provide affordability at additional income levels. The Area is within a Transit Corridor identified in the Comprehensive Plan, and has access to transit, K-12 public schools, commercial services, employment, and public open space. The Area is within 1.2 miles of two K-5 public schools, within 0.1 miles from a developed public park, and is in a Mixed Employment (ME) zone surrounded by properties developed with commercial and a mix of housing types and densities. Surrounding properties are zoned Residential Standard Density (RS) to the north and west, which are developed with single -unit detached dwellings. A 116-unit apartment complex is located on the property located directly to the south of the Area, on a parcel zoned Residential Medium Density (RM). The properties to the east are zoned Mixed Employment (ME) and developed with a variety of commercial, service, and industrial uses. Chapter 11: Growth Management Employment Districts 11-1 The City will encourage compact development and the integration of land uses within the Urban Growth Boundary to reduce trips, vehicle miles traveled, and facilitate non - automobile travel. 11-2: The City will encourage infill and redevelopment of appropriate areas within Bend's Central Core, Opportunity Areas and transit corridors. 11-3 The City will ensure that development of large blocks of vacant land makes efficient use of land, meets the city's housing and employment needs, and enhances the community. 11-4 Streets in the Centers and Corridors, Employment Districts, Neighborhoods, and Opportunity Sites will have the appropriate types of pedestrian, biking, and transit scale amenities to ensure safety, access, and mobility. 11-12 The City shall explore incentives for re -development of existing commercial strips in order to help reduce the need to expand the Urban Growth Boundary. 11-23 The City will encourage development and redevelopment in commercial corridors that is transit -supportive and offers safe and convenient access and connections for all modes. Finding: The Plan conforms to Chapter 11 Growth Management as for the Project encourages infill and redevelopment in a Transit Corridor, makes efficient use of large blocks of vacant land that meets the City's housing needs, and supports development and redevelopment in commercial corridors that is transit -supportive, and offers safe and convenient access and connections for all modes in the Area. The housing development supported by the Plan will be required to improve its frontage streets with appropriate pedestrian and biking amenities supporting the housing units developed in the Area. B. Bend Economic Development Advisory Board Strategic Plan The Bend Municipal Code requires the Bend Economic Development Advisory Board (BEDAB) to create a three-year strategic plan, identifying projects and guiding the work of the city's nine -member board as it seeks to: 17 1 Britta Ridge Tax Increment Finance Plan • Advocate: Provide input into City policy and procedures from a private sector perspective. • Facilitate: Broker entrepreneurial support among existing community resources. • Market: Brand and guide marketing efforts of Bend as "Open for Business." • Coordinate: Organize and oversee City resources applied to economic development. The following goal and strategy from the 2022-2024 BEDAB Strategic Plan is directly related to the Plan. Goal 2: Monitor and provide input on other relevant City policies relating to economic development • Support policies that provide for a spectrum of workforce housing opportunities Finding: The Plan conforms to the Bend Economic Development Advisory Board Strategic Plan as for the Project will create additional market rate and 90% AMI housing units in the Area, supporting the Bend workforce. C. Bend Development Code The Projects in the Area supported by the Plan conform to the zoning in the Bend Development Code, including maximum densities and building requirements, and those provisions of the Bend Development Code are incorporated by reference herein. The entirety of the area is zoned Mixed Employment (ME). Multi -unit residential developments are permitted in the ME as part of a mixed -use development or if approved as an Urban Dwelling Site. As the Bend Development Code is updated, the references to the Bend Development Code in this document will be deemed to incorporate those updates without the Plan having to be formally amended. If a Substantial Amendment to this Plan is completed in the future, this section will be updated to match the current zoning designations. The provisions of the Bend Development Code in effect at the time of development approval will apply for any development assisted by this Plan. B.2 — MIXED -USE ZONING DISTRICTS Bend Development Code Section 2.3.100 Purpose and Applicability Mixed Employment District (ME) - The Mixed Employment Zone is intended to provide a broad mix of uses that offer a variety of employment opportunities. Where Mixed Employment Districts occur on the edge of the City, their function is more transitional in nature providing service commercial businesses and supporting residential uses in an aesthetic mixed environment. in this instance, when residential units are provided, the units shall be within easy walking distance to the commercial and employment uses. Multi -unit residential development is an allowed use within the ME zone, as part of a mixed -use development or as an Urban Dwelling Site under BDC 3.8.800. The Area is within the area shown in BDC Figure 3.8.800.D. as eligible for development as an Urban Dwelling Site. 18 1 Britta Ridge Tax Increment Finance Plan Maximum residential density in the ME zone is controlled by the applicable lot coverage and building height standards. There is no maximum density for Urban Dwelling Sites. Finding: The Plan conforms to the Bend Development Code as the Projects and expenditures proposed in the Plan conform to the requirements in the Bend Development Code and support the types of uses allowed in the zoning present in the Area. The Project will support development of a multi -unit residential project that the City has approved as a Urban Dwelling Site in the Mixed Employment (ME) zone under application number PLSPR20211127. This development has been required to comply with the provisions of BDC Chapter 3.4, Public Improvement Standards, and other provisions of the Bend Development Code to provide sufficient public infrastructure to serve the development. The proposal includes the build -out of an undeveloped site, in a generally developed area. 19 1 Britta Ridge Tax Increment Finance Plan XII1. PLAN AREA LEGAL DESCRIPTION A PORTION OF SECTION 17, TOWNSHIP 17 SOUTH, RANGE 12 EAST OF THE WILLAMETTE MERIDIAN, DESCHUTES COUNTY, OREGON, DESCRIBED AS FOLLOWS: BEGINNING AT A POINT SOUTH 89°55'44" EAST, 30 FEET FROM THE SOUTHWEST CORNER OF THE SOUTHEAST QUARTER OF THE SOUTHEAST QUARTER (SE1/4 SE1/4); THENCE NORTH, 620 FEET; THENCE SOUTH 89655'44" EAST, 325.16 FEET; THENCE SOUTH 26*58'58" EAST, 66.85 FEET; THENCE SOUTH 20'00'54" EAST, 69.33 FEET; THENCE SOUTH 63'09'04" EAST, 73.36 FEET; THENCE SOUTH 62-06'37" EAST, 41.96 FEET; THENCE SOUTH 06*26'40" WEST, 445.46 FEET; THENCE NORTH 89°55'44" WEST TO THE POINT OF BEGINNING. 20 1 Britta Ridge Tax Increment Finance Plan EXHIBIT A Britta Ridge Tax Increment Finance Plan - Report DRAFT FOR PUBLIC COMMENT AND REVIEW NOT ADOPTED CITY OF BEND BUILDING ON OUR PAST SERVING THE PRESENT SHAPING BENDS FUTURE LIST OF PARTICIPANTS Mayor Bend Urban Renewal Agency Melanie Kebler Mike, Riley, Chair Mayor Pro tem Gina Franzosa, Vice -Chair Megan Perkins Ariel Mendez City Council Megan Nods Gina Franzosa Steve Platt Ariel Mendez Melanie Kebler Mike Riley Megan Perkins Megan Norris Core Area Advisory Board Steve Platt Corie Harlan, Chair Planning Commission Dale VanValkenburg, Vice -Chair Margo Clinton, Chair Dawn Cofer Scott Winters, Vice -Chair Hank Kamakaala Bob Gressens James Teeter Suzanne Johannsen Jeff Baker John LaMotte John Fischer Erin Ludden John Heylin Nathan Nelson Katherine Austin City Manager Bend Economic Development Advisory Eric King Board City Finance Director Gary North, Chair Samantha Nelson DaWayne Judd, Vice -Chair City Attorney Briana Manfrass Ian Leitheiser Jenn Lynch Senior Assistant City Attorney Jillian Taylor Elizabeth Oshel Mark Kroncke Real Estate Director Petra Oroslanova Matt Stuart Ryan Andrews Urban Renewal Manager Tierney Booker Jonathan Taylor Affordable Housing Advisory Committee Planning Manager Mandy Dalrymple Renee Brooke Alison Hohengarten Housing Manager Ian Karasz Racheal Baker Tony Levison Isabel Mikovich Richard Reese Helen Silfven Heather Simmons Geoff Wall TABLE OF CONTENTS I. DEFINITIONS...................................................................................................................1 II. INTRODUCTION..............................................................................................................3 III. THE PROJECTS IN THE AREA AND THE RELATIONSHIP BETWEEN TIF DISTRICT PROJECTS AND THE EXISTING CONDITIONS IN THE TIF DISTRICT.................................6 IV. THE ESTIMATED TOTAL COST OF EACH PROJECT AND THE SOURCES OF MONEYS TO PAYSUCH COSTS............................................................................................................7 V. FINANCIAL ANALYSIS OF THE PLAN....................................................................................8 VI. THE ESTIMATED AMOUNT OF TAX INCREMENT REVENUES REQUIRED AND THE ANTICIPATED YEAR IN WHICH INDEBTEDNESS WILL BE RETIRED...............................10 VII. THE ANTICIPATED COMPLETION DATE FOR EACH PROJECT..........................................10 VIII. REVENUE SHARING.......................................................................................................10 IX. IMPACT OF THE TAX INCREMENT FINANCING................................................................11 X. COMPLIANCE WITH STATUTORY LIMITS ON ASSESSED VALUE AND SIZE OF TIF/URBAN RENEWALAREAS..........................................................................................................15 XI. EXISTING PHYSICAL, SOCIAL, AND ECONOMIC CONDITIONS AND IMPACTS ON MUNICIPALSERVICES...................................................................................................17 XII. REASONS FOR SELECTION OF EACH PLAN AREA IN THE PLAN......................................21 XIII. RELOCATION REPORT....................................................................................................21 I. DEFINITIONS "Agency" or "BURA" means the Bend Urban Renewal Agency. The Agency is responsible for administration of this Britta Ridge TIF Plan and other TIF plans previously adopted in the City of Bend. "Annual report" is the report required by ORS 457.460 that is filed with the City of Bend and distributed to the taxing districts. "Area" or "TIF Area" or "Plan Area" means the tax increment finance area established for this Plan pursuant to ORS chapter 457, and described in Section Xlll of the Plan, below, including the properties and rights -of -way located therein. "Area Median Income" or "AMI" means the area median income as determined by the most recent United States Department of Housing and Urban Development for the Bend Metropolitan Statistical Area at the time of the household's application for housing. "Blight" is defined in ORS 457.010(1)(a-i) and identified in the ordinance adopting a TIF plan. "Board of Commissioners" means the Deschutes County Board of Commissioners. "City" means the City of Bend, Oregon. "City Council" or "Council" means the Bend City Council. "Comprehensive Plan" means the City of Bend Comprehensive Plan and its implementing ordinances, policies, and standards. "County" means Deschutes County, Oregon. "Fiscal year" or "FYE" means the year commencing on July 1 and closing on June 30. "Frozen base" means the total assessed value including all real, personal, manufactured, and utility values within a TIF area at the time of adoption. The county assessor certifies the assessed value after the adoption of a TIF area plan. "Increment" means that part of the assessed value of a taxing district attributable to any increase in the assessed value of the property located in an urban renewal area, or portion thereof, over the assessed value specified in the certified statement from the assessor (frozen base). "Maximum indebtedness" means the amount of the principal of indebtedness included in a plan pursuant to ORS 457.190 and does not include indebtedness incurred to refund or refinance existing indebtedness. The maximum indebtedness for this Plan is $14,666,437. "More Affordable Housing" is housing that is rented at rates equal to or less than 30% of household income to households earning 90% of area median income (AMI) or less. It assumes housing is available to residents at a range of incomes, at or below 90 percent of AM I. 11 Report on Britta Ridge TIF District Plan "Municipality" means any county or any city in the state of Oregon. "ORS" means the Oregon Revised Statutes and specifically Chapter 457, which relates to urban renewal. "Plan" or "Britta Ridge Area TIF Plan" or "TIF Plan" means the adopted plan forthe TIF Area pursuant to ORS chapter 457. "Planning Commission" means the Bend Planning Commission. "Policy" means the Policy for Tax Increment Assistance for Housing Affordability and Employment Growth adopted by BURA Resolution No. 158 on October 16, 2024. "Policy Justification" means a document with an analysis of the local housing and employment market for the City of Bend used to establish policy parameters for the Tax Increment Assistance for Housing Affordability and Employment Growth. "Project(s)" or "TIF Project(s)" means any work or undertaking carried out under the Britta Ridge TIF Plan. "Report Accompanying Britta Ridge Area TIF Plan" or "Report" means the official report that accompanies the Britta Ridge TIF Plan pursuant to ORS 457.087. "Revenue sharing" means sharing tax increment proceeds as defined in ORS 457.470. "Tax increment" means that part of the assessed value of a taxing district attributable to any increase in the assessed value of the property located in an urban renewal area, or portion thereof, over the assessed value specified in the certified statement. "Tax increment finance area" or "TIF area" means a blighted area included in a TIF plan. "Tax increment finance area plan" or "TIF plan" means a plan, as it exists or is changed or modified from time to time, for one or more TIF areas, as provided in ORS 457. "Tax increment finance area project(s)" or "TIF area project(s)" or "project(s)" means any work or undertaking carried out under ORS 457.170 and ORS 457.180 in a TIF area. "Tax increment finance area report" or "report" means the official report that accompanies the TIF plan pursuant to ORS 457.087. "Tax increment finance" or "tax increment financing" or "TIF" means the funds that are associated with the division of taxes accomplished through the adoption of a TIF plan. "Tax increment revenues" means the funds allocated by the assessor to renewal TIF area due to increases in assessed value over the frozen base within the area. "UGB" means urban growth boundary. "Urban Renewal" means the statutory authority provided in ORS 457. In this Plan it is synonymous with TIF. Note on language: This Plan, wherever applicable and permissible, uses the term Tax Increment Finance or TIF rather than "urban renewal". The term TIF is used consistently in other parts of the nation and does not evoke past practices of other urban renewal agencies 2 1 Report on Britta Ridge TIF District Plan throughout the country wherein minorities and vulnerable populations were displaced to clear the way for redevelopment. This Plan aims to avoid those connotations and has been created with intention to avoid those outcomes. Utilizing the term TIF does not affect the statutory authority of ORS 457, as it relates to this Plan. li. INTRODUCTION The Report contains background information and project details that pertain to the Britta Ridge TIF District Plan. The Report is not a legal part of the Plan but provides public information and supports the findings made by the Bend City Council as part of the approval of the Plan. The Report provides the analysis required to meet the standards of ORS 457.087, including financial feasibility. The Report accompanying the Plan contains the information required by ORS 457.087, including: • A description of the physical, social, and economic conditions in the area, ORS 457.087(1) • Expected impact of the Plan, including fiscal impact in light of increased services, ORS 457.087(1) • Reasons for selection of the area, ORS 457.087(2) • The relationship between each project to be undertaken and the existing conditions, ORS 457.087(3) • The estimated total cost of each project and the source of funds to pay such costs, ORS 457.087(4) • The estimated completion date of each project, ORS 457.087(5) • The estimated amount of funds required in the area and the anticipated year in which the debt will be retired, ORS 457.087(6) • A financial analysis of the Plan, ORS 457.087(7) • A fiscal impact statement that estimates the impact of tax increment financing upon all entities levying taxes upon property in the urban renewal area, ORS 457.087(8) • A relocation report, ORS 457.087(9) 3 1 Report on Britta Ridge TI F District Plan The relationship of the sections of the Report and the ORS 457.087 requirements is shown in Table 1. The specific reference in the table below is the section of this Report that most addresses the statutory reference. There may be other sections of the Report that also address the statute. Tahip 1 - Statutory References Statutory Requirement Report Section ORS 457.087(1) X, VIII ORS 457.087(2) XI ORS 457.087(3) II ORS 457.087(4) III ORS 457.087(5) VI ORS 457.087(6) - IV,V ORS 457.087(7) IV,V ORS 457.087(8) VIII _ ORS 457.087(9) XII The Report provides guidance on how the Plan might be implemented. The Agency has the authority to adjust the implementation assumptions in this Report. The Agency may allocate budgets differently, adjust the timing of the projects and make other adjustments to the financials as determined by the Agency. The Agency may also make changes as allowed in the Amendments section of the Plan. These adjustments must stay within the overall maximum indebtedness of the Plan. 4 1 Report on Britta Ridge TIF District Plan Figure 1 _.. Britta Ridge TIF Area Boundary PROPOSED URBAN RENEWAL AREA N D A Urban Renewal Area —Roads a� o�, ism CITY OF BEND Tax tots �� . �, ti..o �.. >aoa�s�w�r. warw�t 117t 0!t! 4tlf tC �J w w n air- N fw ina Ye e ■ swimtaD et Mna Lnmees cower';P;;rntr'�,`.""� Source: City of Bend 5 1 Report on Britta Ridge TIF District Plan III. THE PROJECTS IN THE AREA AND THE RELATIONSHIP BETWEEN TIF DISTRICT PROJECTS AND THE EXISTING CONDITIONS IN THE TIF DISTRICT The projects identified for the Britta Ridge TIF Plan Area are described below, including how they relate to the existing conditions in the Plan Area. A. Housing Development and Development Assistance, Partnership, and Support This Project will provide incentives for the development of housing units and More Affordable Housing in the Plan Area. The development to be supported by this Project is a 178-unit apartment complex in the Area approved by the City of Bend under application number PLSPR20211127. Incentives may be in the form of either an annual tax increment reimbursement payment over a specified period of time and/or payment of City development fees associated with the proposed development project (Le., system development charges) ("Assistance"). The form of Assistance for the Project will be determined through a development agreement with the developer of the housing that stipulates the amount and timing of the development and the amount and timing of the incentive. BURA staff will conduct pre -development meetings with a developer of property within the Area to identify the financing needs of the site. Staff will recommend a financing package not to exceed the maximum indebtedness to the Agency that will contain recommendations on the appropriate length of incentive through negotiations with the developer for the development of the housing units. A development agreement, approved by the Agency will set out the method of providing the Assistance to the eligible project and a commitment by the developer owner for providing the required More Affordable Units. A guideline for the amount of Assistance is shown in the Table 2 of this Report. This is a guideline only, and actual assistance provided will be set through development agreements with BURA, balancing the needs for administration and incentives. Existing Conditions: The property is currently undeveloped. There are transportation deficiencies, topography challenges, and impaired investments as identified in Section X of this Report. As described in the Plan and the adopting documents, there is a lack of residential housing units and affordable housing units in Benda The Plan will support development of housing in the Area, including improvements to presently deficient rights -of -way and public infrastructure, increase the supply of housing units, and provide housing units affordable for I City of Bend Comprehensive Plan 6 1 Report on Britta Ridge TIF District Plan households in income ranges for whom there is presently a lack of affordable units in Bend.z B. Administration The Agency may provide administration of the Plan including but not limited to staff support, legal counsel assistance, review of annual payments, financial statements, budget preparation and annual reports pursuant to ORS 457.460. Existing Conditions: There is presently not a TIF area in this location. Therefore, there is no existing funding or need for administration in the Area by BURA. This project would provide that administrative support. A table showing the projects and total estimated costs is shown in Table 2. The total costs are estimated based on the projected future assessed value of the project. IV. THE ESTIMATED TOTAL COST OF EACH PROJECT AND THE SOURCES OF MONEYS TO PAY SUCH COSTS The total cost estimates for the Projects are shown in Table 2 below. These are all estimates acknowledging that these project activities must fit within the maximum indebtedness. These costs are shown in nominal, year of expenditure (YOE) dollars, and are equal to the maximum indebtedness of $14,666,437. The estimated project costs assume development assistance of 97% of the tax increment from the Plan to the developer incentive project and 3% to the Agency for administration of the Plan. The Agency will be able to review and update fund expenditures and allocations on an annual basis when the annual budget is prepared. Table 2 - Estimated Cost of Each Project, ($2025) Project Development Assistance Administration TOTAL Source: City of Bend Estimated Cost Percentage of Total $ 14,226,444 97% $ 439,993 3% $14,666,437 W 100% a Oregon Housing Needs Assessment 2025 Methodology 7 1 Report on Britta Ridge TIF District Plan V. FINANCIAL ANALYSIS OF THE PLAN The estimated tax increment revenues through fiscal year ending 2057 are calculated based on projections of the growth in assessed value of new development within the TIF Area and the consolidated tax rate that will apply in the TIF Area. Table 3 shows the incremental assessed value, tax rates, and tax increment revenues each year, adjusted for discounts, delinquencies, truncation loss, and receipt of delinquent taxes from prior years. The incremental assessed value is the estimated assessed value based on real market value of the proposed project as determined by the Deschutes County Property Tax Estimator as provided by the applicant. The first year of tax increment collections is anticipated to be FYE 2026. Gross tax increment financing revenue (the column titled Gross TIF, in Table 3) is calculated by multiplying the tax rate times the excess value used. Excess value is the increased in assessed value over the frozen base. The tax rate is expressed per thousand dollars of assessed value, so the calculation is "tax rate times excess value used divided by one thousand." The column titled Net TIF Revenue in Table 3 also indicates the total Maximum Indebtedness proposed in this plan as referenced in Table 2, and represents the gross TIF, less expected discounts, to show the total amount of increment expected to be received by BURA in each year of the Plan. In Oregon, when the full amount of the property tax bill is paid by November 15, the taxpayer gets a 3 percent discount. If the taxpayer pays two thirds of the tax by November 15, they get a 2 percent discount. 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THE ESTIMATED AMOUNT OF TAX INCREMENT REVENUES REQUIRED AND THE ANTICIPATED YEAR IN WHICH INDEBTEDNESS WILL BE RETIRED The maximum indebtedness is $14,666,437 (Forteen Million Six Hundred and Sixty Six Thousand, Four Hundred and Thirty Seven Dollars). This is also the estimated total amount of tax increment revenues required to service the maximum indebtedness as no formal borrowings or interest payments are anticipated in the Plan. VII. THE ANTICIPATED COMPLETION DATE FOR EACH PROJECT The schedule for projects will be based on the availability of funding. The projects will be ongoing and will be completed as directed by the Agency. Anticipated annual expenditures for program administration are shown in Table 2. The Agency is anticipated to complete the projects and to terminate the Plan in FYE 2057, allowing two years for construction of the housing assisted by the Plan and 30 years of increment rebate and housing affordability, for a 32 year Plan duration. VIII. REVENUE SHARING Revenue sharing thresholds are not projected to be reached during the life of the Plan. Revenue sharing is defined in ORS 457.470 and requires that the impacted taxing jurisdictions receive a share of the incremental growth in the Plan Area when annual tax increment finance revenues exceed 10% and 12.5% of the original maximum indebtedness of the Plan. For this Plan, 10% equals $1,466,64. As shown in the column labeled Gross TIF in Table 3, neither threshold is projected to be reached during the life of the Plan. If either threshold is met, the Agency will comply with statutory requirements for revenue sharing. 10 1 Report on Britta Ridge TIF District Plan IX. IMPACT OF THE TAX INCREMENT FINANCING This section describes the impact of tax increment financing of the maximum indebtedness, both until and after the indebtedness is repaid, upon all entities levying taxes upon property in the TIF Area. The impact of tax increment financing on overlapping taxing districts consists primarily of the property tax revenues foregone on permanent rate levies as applied to the growth in assessed value in the TIF Area. These projections show the estimated tax revenues that would be received by the taxing districts if the development assisted by the Plan were to occur without the Plan. Table4 and Table 5 shows impacts estimated through HE 2057. The Bend -La Pine School District is not directly affected by the tax increment financing, but the amounts of their taxes divided for the Plan are shown in the following tables. Under current school funding law, property tax revenues are combined with State School Fund revenues to achieve per -student funding targets. Under this system, property taxes foregone, due to the use of tax increment financing, are substantially replaced with State School Fund revenues, as determined by a funding formula at the state level. If new school aged students move into these units and attend the local schools, the funding through the State School Fund would increase. Table 4 and Table 5 show the projected impacts to permanent rate levies of taxing districts as a result of this Plan. Table 4 shows the general government levies, and Table 5 shows the education levies. 111 Report on Britta Ridge TIF District Plan Table 4 -Projected Impact on Taxing District Deschutes County FYE City of Bend County Library Permanent Countywide Law Enforcement Rate Levies County Extension - General vovernment Bend Parks and Recreation 9-1-1 District Total 2026 $23 $10 $4 $10 $0 $3 $12 $62 2027 $46 $21 $9 $20 $0 $6 $24 $127 2028 $65,816 $30,010 $12,912 $29,34S $526 $8,494 $34,299 $181,401 2029 $67,813 $30,920 $13,304 $30,236 $542 $8,751 $35,340 $186,905 2030 $69,870 $31,858 $13,707 $31,153 $558 $9,017 $36,412 $192,575 2031 $71,988 $32,824 $14,123 $32,098 $575 $9,290 $37,516 $198,414 2032 $74,171 $33,819 $14,551 $33,071 $593 $9,572 $38,6S3 $204,429 2033 $76,418 $34,844 $14,992 $34,073 $611 $9,862 $39,824 $210,624 2034 $78,734 $3S,900 $35,105 $629 $10,161 $41,031 $217,006 203S $81,118 $36,987 __$15,446 $15,914 $36,168 $648 $10,469 $42,274 $223,578 2036 $83,575 $38,107 $16,396 $37,263 $668 $10,786 $43,554 _.. $230,348 2037 $86,104 $39,261 $16,892 $38,391 _ $688 $11,112 $44,872 $237,321 2038 $88,710 $40,449 $17,403 $39,553 $709 $11,448 $46,230 $244,503 2039 $91,394 $41,673 $17,930 $40,750 $730 $11,795 $47,629 $251,900 2040 $94,159 $42,933 $18,472 $41,983 $752 $12,151 $49,069 $2S9,520 2041 $97,006 $44,231 $19,031 $43,252 $775 $12,519 $50,553 $267,368 2042 $99,939 $45,569 $19,606 $44,560 $799 $12,897 $52,082 $275,451 2043 $102,960 $46,946 $20,199 $45,907 $823 $13,287 $53,656 $283,777 2044 $1061,071 $48,365 $20,809 $47,294 _ $848 $13,689 $55,277 $292,353 2045 $109,276 $49,826 $21,438 $48,723 $873 $14,102 _ $56,947 $301,185 2046 $112,577 $51,331 $22,086 $50,195 $899 $14,S28 `__$58,668 $310,283 2047 J$115,977 $52,881 $22,753 $51,711 $927 $14,967 $60,439 $319,654 2048 $1191,478 $54,478 $23,440 $53,272 $955 $15,419 $62,264 $329,306 2049 $123,085 $56,123 $24,147 $54,880 $983 $15,885 $64,144 $339,248 2050 $126,801 $57,817 $24,876 $56,537 $1,013 $16,364 �$66,080 $349,488 2051 $130,627 $59,562 $25,627 $58,243 $1,044 $16,858 $68,074 _ $360,035 2052 $134,569 $61,359 $26,400 $60,000 $1,075 $17,367 $70,128 $370,898 2053 $138,628 $63,210 $27,197 ._. $61,810 $1,108 $17,890 $72,244 $382,087 2054 $142,810 $65,116 $28,017 $63,675 $1,141 $18,430 $74,423 $393,612 2055 $147,117 $67,080 $28,862 $65,595 $1,175 $18,986 $76,668 $405,483 2056 $151,553 $69,103 $29,732 $67,573 $1,211 $19,558 $78,979 $417,710 2057 $156,122 $71,186 $30,629 $69,610 $1,247 $20,148 $81,361 $430,304 Total $3,144,533 $1,433,800 $616,905 $1,402,057 T $25,125 $405,811 __ $1,638,724 _ $8,666,956 Source: City of Bend 12 1 Report on Britta Ridge TIF District Plan Table 5 - Projected Impact on Taxing District Permanent Rate Levies - Education FYE Bend La -Pine School District Central Oregon CC High Desert ESD Total 2026 $38 $5 $1 $44 2027 $78 $10 $2 $90 2028 $111,843 $14,565 $2,263 $128,671 2029 $115,237 $15,007 $2,332 $132,575 2030 $118,732 $15,462 $2,403 $136,597 2031 $122,333 $15,931 $2,475 $140,739 2032 $126,041 $16,414 $2,550 $145,005 2033 $129,861 $16,911 $2,628 $149,400 2034 $133,795 $17,423 $2,707 $153,926 2035 $137,848 $17,951 $2,789 $158,588 2036 $142,022 $18,495 $2,874 $163,390 2037 $146,321 $19,054 $2,961 $168,336 2038 $150,749 $19,631 $3,050 $173,430 2039 $155,310 $20,225 $3,143 $178,677 2040 $160,007 $20,837 $3,238 $184,082 2041 $164,846 $21,467 _ $3,336 $189,649 2042 $169,830 $22,116 $3,436 $195,382 2043 $174,963 $22,784 $3,540 $201,288 2044 $180,251 $23,473 $3,647 $207,371 2045 $185,697 $24,182 $3,758 $213,636 2046 $191,306 $24,913 $3,871 $220,090 2047 $197,084 $25,665 $3,988 $226,737 2048 $203,035 $26,440 $4,108 $233,583 2049 $209,164 $27,238 $4,232 $240,635 2050 $215,477 $28,060 $4,360 $247,898 2051 $221,980 $28,907 $4,492 $255,379 2052 $228,678 $29,779 $4,627 $263,085 2053 $235,577 $30,678 $4,767 $271,022 2054 $242,683 $31,603 $4,911 $279,196 2055 $250,002 $32,556 $5,059 $287,617 2056 $257,540 $33,538 $5,211 $296,289 2057 $265,305 $34,549 $5,368 $305,222 Total $5,343,632 $695,869 $108,127 $6,147,627 Source: City of Bend Please refer to the explanation of the schools funding in the preceding section 13 1 Report on Britta Ridge TIF District Plan Table 6 shows the projected increased revenue to the taxing jurisdictions after termination of the Plan and tax increment collection by BURA is terminated. These projections are for FYE 2058. The frozen base is the assessed value of the Plan Area established by the County Assessor at the time the Plan is established. Excess value is the increased assessed value in the Plan Area above the frozen base. Table 6 - Additional Revenues Obtained after Termination of Tax Increment Financing in FYE 2058 (Year after Termination) Taxing District General Government City of Bend Deschutes County County Library Countywide Law Enforcement County Extension 9-1-1 BPRD Subtotal Education From Increment From Frozen Total Value Base Value $160,806 $754.45 $161,560 $73,322 $344.00 $73,666 $31,547 $148.01 $31,695 $71,699 $336.39 $72,035 $1,285 $6.03 $1,291 $20,752 $97.36 $20,850 $83,801 $393.17 $84,195 $443,213 $2,079 $445,292 Bend La -Pine School District $273,264 $1,282.07 $274,546 COCC $35,586 $166.96 $35,752 High Desert ESD $5,529 $25.94 $5,555 Subtotal $314,379 $1,474.96 $315,854 Total $757,592 $3,554 $761,146 Source: City of Bend 14 1 Report on Britta Ridge TIF District Plan X. COMPLIANCE WITH STATUTORY LIMITS ON ASSESSED VALUE AND SIZE OF TIF/URBAN RENEWAL AREAS State law limits the percentage of both a municipality's total assessed value and the total land area that can be contained in an urban renewal area at the time of its establishment to 15% for municipalities over 50,000 in population. As noted below, the frozen base of the Britta Ridge TIF Area (using assumed FYE 2025 values) is projected to be $269,110. The total assessed value of properties in the City is $16,125,929,179. The increment of the City's existing TIF areas is $833,743,768. To get the total percentage of assessed value in TIF areas, divide the total assessed value of the City minus the increment of the TIF areas by the frozen base values of the urban renewal areas. Table 7 shows that in Bend, 3.35% of the City's assessed value is located in TIF areas, which is below the 15% threshold. The City is considering adopting three new TIF areas in May 2025. Table 7a shows that if all areas proposed for adoption in May 2025 are created, total TIF areas in the City are below the 15% threshold. Table 7- Assessed Value Statutory Limit Verification Bend Urban Renewal Areas Frozen Base Increment Juniper Ridge $13,752,568 $157,422,963 Murphy Crossing $72,685,192 $65,530,594 Core Area $443,857,101 $80,495,350 Britta Ridge $269,110 $ - TOTAL: $530,563,971 $303,448,907 Calculation A. City of Bend Total AV $16,125,929,719 B. Total Frozen Base of URAs $530,563,971 C. Total Increment of URAs $303,448,907 D. Frozen Base as % of City AV: B/(A-C) 3.35% Source: City of Send and Deschutes County Assessor, SAL 4c (FYE 2025) AV — assessed value Frozen base -- assessed value the urban renewal area at the time it is established Increment — increased assessed value over the frozen bas URA —urban renewal area Table 7a — Assessed Value Statutory Limit Verification —Proposed Districts (May 2025) Bend Urban Renewal Areas Frozen Base Increment Juniper Ridge $13,752,568 $157,422,963 Murphy Crossing $72,685,192 $65,530,594 15 1 Report on Britta Ridge TIF District Plan Core Area $443,857,101 $80,495,350 Veridian * $0 Britta Ridge* $269,110 Century* $3,559,680 TOTAL: $534,123,651 $303,448,907 Calculation A. City of Bend Total AV $16,125,929,719 B. Total Frozen Base of URAs $534,123,651 C. Total Increment of LIRAS $303,448,907 D. Frozen Base as % of City AV: B/(A-C) 3.38% * other recommended Plan Areas Source: City of Bend and Deschutes County Assessor, SAL 4c (FYi= 2025) Av assessed value Frozen base — assessed value the urban renewal area at the time It Is established Increment — increased assessed value over the frozen bas URA ••- urban renewal area The Britta Ridge TIF Area contains 6.16 acres. There are 1,640.12 acres in other TIF areas in the City. The City contains 21,315.8 acres. 7.70% of the City's acreage is located in TIF areas, which is below the 15% threshold. The City is considering adopting three new TIF areas in May 2025. Table 8a shows that if all areas proposed for adoption in May 2025 are created, total TIF areas in the City are below the 15% threshold. Table 8- Acreage Statutory Limit Verification Bend Urban Renewal Areas Acreage Juniper Ridge 721.95 Murphy Crossing 275.15 Core Area 637.16 Britta Ridge 6.16 Total 1,640.42 City of Bend 21,315.80 URA as % of City of Bend 7.70% Source: City of Bend 16 1 Report on Britta Ridge TIF District Plan Table 8a -- Acreage Statutory Limit Verification -- Proposed Districts (May 2025) Bend Urban Renewal Areas Acreage Juniper Ridge 721.95 Murphy Crossing 275.15 Core Area 637.16 Veridian 2.81 Britto Ridge* 6.16 Century* 9.20 Total 1,652.43 City of Bend 21,315.80 URA as % of City of Bend 7.75% XI. EXISTING PHYSICAL, SOCIAL, AND ECONOMIC CONDITIONS AND IMPACTS ON MUNICIPAL SERVICES This section of the Report describes existing conditions within the Plan Area Area and documents the occurrence of "blighted areas," as defined by ORS 457.010(1). A. Physical Conditions I. Land Use The Plan Area measures 6.16 total acres in size. The Area consists of vacant, undeveloped, privately owned land and adjacent rights -of -way. 2. Zoning and Comprehensive Plan Designations The Areas is zoned Mixed Employment (ME) and designated Mixed Employment (ME) in the Comprehensive Plan. 3. Topography The Plan Area is in irregular shape and has varying topography with elevation changes up to 25 feet. Steeper slopes exist on the north side of the area, the east side of the area, and the mound on the central/south portion of the area. The area will require strategic placement of developed structures and the use of retaining walls so the site can be developed in accordance with the Bend Development Code to provide accessible connections to required site elements, along with abutting streets and rights -of -way. B. infrastructure This section identifies the existing conditions in the Plan Area to assist in establishing blight in the ordinance adopting the Plan. This does not mean that all of these projects are included as projects to be undertaken in the Plan. The specific projects that are included in the Plan are listed in Section II of this Report. 17 1 Report on Britta Ridge TIF District Plan 1. Transportation The Plan Area abuts Halfway Road and Britta Street. Britta Street is the proposed frontage. This street is designated as collector in the Bend Transportation System Plan ("TSP"). A residential development has been approved by the City in land use permit PLSPR20211127. This approved development is anticipated to be assisted by the Project in the Plan. This development will dedicate adequate right-of-way, and the improve the street to meet the City transportations standards. The proposed development will construct the boundary street improvements of Britta Street and Halfway Road in accordance with land -use permit PLSPR20211127. There is presently no public pedestrian pathway on the site. There is presently no interior transportation system that provides multimodal access from Britta Street and Halfway Road to the eastern and southern boundaries of the site. 2. Other Utilities The water, sewer, and storm infrastructure are available within surrounding streets/areas and are adequate to serve the site. As stated in permits PLLD20211128 / PLVAR20211129 / PLMISC20220384, approved by the City, the developer is proposing to connect to a 8-inch gravity sewer main from manhole CMHO12251 north to the intersection of Halfway Road and Britta Street, and then east in Halfway Road so that area can be served by a lateral that meets City of Bend standards. The development is also proposing to install an 8-inch water main within Halfway Road to service the plan area or provide a future opportunity to loop the water system in conformance with the City of Bend Standards. Public utility improvements are required for the development of this site. All proposed improvements are conceptual at this time. These improvements must conform to the City of Bend Standard and Specifications and will be reviewed by the City. C. Social Conditions The Plan Area has no existing residents. The City of Bend needs an additional 8,500 residential units across all income ranges by 20305 to accommodate the underproduction for existing need and 15,000 new residents.6 Building more housing units with emphasis on encouraging more affordable housing options are high priorities within the City according to both community statements and City Council 2023-2025 Goals. The Plan Area is in Block Group 2 in Census Tract 11.02 in the City of Bend. Tables 9 through 13 show the social conditions for this block group. Table 9 - Race in Block Group 2 s Oregon Housing Needs Analysis, 2025 e Portland State University, Population Projects 2030 18 1 Report on Britta Ridge TIF District Plan Race Number Percent White alone 1,691 81% Black or African American alone 26 1% American Indian and Alaska Native alone 16 1% Asian alone 0 0% Native Hawaiian and Other Pacific Islander alone 0 0% Some other race alone 59 3% Two or more races 300 14% TOTAL 2,092 100•/0 Source: American Community Survey 2023 5-year Estimates Table 10 - Age in the Block Group 2 Age Number Percent Under 5 years 75 4% 5 to 9 years 7 0% 10 to 14 years g 0 15 to 17 years 34 2% 18 to 24 years 324 15% 25 to 34 years 554 26% 35 to 44 years 244 12% 45 to 54 years 285 14% 55 to 64 years 361 17% 65 to 74 years 90 4% 75 to 84 years 57 3% 85 years and over 52 2% TOTAL 2,092 100% Source: American Community Survey 2023 5-year Estimates Table 11- Educational Attainment for Population 25 years and Over in the Block Group 2 Educational Attainment Number Percent Less than high school 95 6% High school graduate (includes equivalency) 210 13% Some college 557 34% Associate's degree 90 5% Bachelor's degree 460 28% Master's degree 114 7% Professional school degree 82 5% Doctorate degree 35 2% TOTAL 1,643 100% Source: American Community Survey 2023 5-year Estimates 19 1 Report on Britta Ridge TIF District Plan Table 12 - Travel Time to Work in Block Group 2 Travel Time Number Percent Less than 10 minutes 179 22% 10 to 19 minutes 546 68% 20 to 29 minutes 16 2% 30 to 34 minutes 45 6% 35 to 59 minutes 6 1% 60 or more minutes 6 1% TOTAL 798 100% Source; American Community Survey 2023 5-year Estimates Table 13 — Means of Transportation to Work in Block Group 2 Means of Transportation Number Percent Drove alone 710 89% Carpooling 41 5% Using Public Transportation 12 2% Bicycling 0 0% Walking 5 1% Working at home 30 4% TOTAL 798 100% Source: American Community Survey 2023 5-year Estimates D. Economic Conditions 1. Taxable Value of Property within the Plan Area The estimated total assessed value from the Deschutes County Department of Assessment and Taxation for FYE 2025 is $269,110. The Area is zoned Mixed Employment (ME) and is presently vacant. The Area previously included a single -unit home, a use that is not permitted in the ME zone. The home has since been demolished. With a consistent lack of development, the Area has diminished taxable value reducing overall tax receipts in comparison to adjacent areas thereby not contributing its fair share to the overall tax base of the City. The result is stagnant and unproductive use of land resulting in taxable value $2.9 million less per acre than adjacent parcels. E. Impact on Municipal Services The fiscal impact of tax increment financing on taxing districts that levy taxes within the Plan Area (affected taxing districts) is described in Section VII of this Report. This subsection discusses the fiscal impacts resulting from potential increases in demand for municipal services. 20 1 Report on Britta Ridge TIF District Plan The projects in the Plan are for development assistance to assist in the development of housing units in the Area and administration of this Plan. The development to be supported by the Projects in this Plan is new residential units in the Plan Area, approved by the City under planning application number PLSPR20211127. The Area is within the City limits, and the approved development is consistent with the Comprehensive Plan and zoning designations, and the City has anticipated the need to provide services to the Area. As the development will be new construction, it will be constructed to current building codes, which will aid in the needs for fire protection and lessen the burden on fire response. The financial impacts from tax increment collections will be countered by housing production and, in the future, adding future increased increases in assessed value to the tax bases for all taxing jurisdictions, including the City. XI1. REASONS FOR SELECTION OF EACH PLAN AREA IN THE PLAN The reason for selecting the Plan Area is to fund development assistance necessary to cure blight within the Plan Area. The development assistance will support providing more market rate and workforce affordable housing units as identified in Bend's Housing Needs Analysis and the Oregon Housing Needs Assessment 2025 Methodology, contributing to the health, safety and welfare of Bend residents. The Plan Area is vacant, does not have adequate development of streets and other rights of way or utilities, and has not been developed commensurate with surrounding lands. XIII. RELOCATION REPORT There is no relocation report required for the Plan. No specific acquisitions that would result in relocation benefits have been identified. However, if property is acquired that requires relocation, the Agency will comply with applicable relocation requirements. 211 Report on Britta Ridge TIF District Plan Century Tax Increment Finance Plan DRAFT FOR PUBLIC COMMENT AND REVIEW NOT ADOPTED r • \ J CITY OF BEND BUILDING ON OUR PAST SERVING THE PRESENT SHAPING BEND'S FUTURE LIST OF PARTICIPANTS Mayor Melanie Kebler Mayor Pro tem Megan Perkins City Council Gina Franzosa Aries Mendez Mike Riley Megan Norris Steve Platt Planning Commission Margo Clinton, Chair Scott Winters, Vice -Chair Bob Gressens Suzanne Johannsen John LaMotte Erin Ludden Nathan Nelson Steve Platt, Council Liaison City Manager Eric King City Finance Director Samantha Nelson City Attorney Ian Leitheiser Senior Assistant City Attorney Elizabeth Oshel Real Estate Director Matt Stuart Urban Renewal Manager Jonathan Taylor Planning Manager Ren6e Brooke Housing Manager Racheal Baker Bend Urban Renewal Agency Mike Riley, Chair Gina Franzosa, Vice -Chair Ariel Mendeza Megan Noris Steve Platt Melanie Kebler Megan Perkins Core Area Advisory Board Corie Harlan, Chair Dale VanValkenburg, Vice -Chair Dawn Cofer Hank Kamakaala James Teeter Jeff Baker John Fischer John Heylin Katherine Austin Bend Economic Development Advisory Board Gary North, Chair DaWayne Judd, Vice -Chair Briana Manfrass Jenn Lynch Jillian Taylor Mark Kroncke Petra Oroslanova Ryan Andrews Tierney Booker Affordable Housing Advisory Committee Mandy Dalrymple Alison Hohengarten Ian Karasz Tony Levison Isabel Mikovich Richard Reese Helen Silfven Heather Simmons Geoff Wall TABLE OF CONTENTS I. DEFINITIONS 4 II. INTRODUCTION 6 Ili. MAXIMUM INDEBTEDNESS 8 IV. PLAN GOALS 9 V. TIF AREA PROJECT CATEGORIES 11 VI. TIF AREA PROJECTS 11 VII. AMENDMENTS TO PLAN 12 Vlll. PROPERTY ACQUISITION AND DISPOSITION 12 IX. RELOCATION METHODS 13 X. TAX INCREMENT FINANCING OF PLAN 13 Xl. ANNUAL REPORT 13 XII. RELATIONSHIP TO LOCAL OBJECTIVES 13 XIII. PLAN AREA LEGAL DESCRIPTION 20 I. DEFINITIONS "Agency" or "BURA" means the Bend Urban Renewal Agency. The Agency is responsible for administration of this Century TIF Plan and other TIF plans previously adopted in the City of Bend. "Annual report" is the report required by ORS 457.460 that is filed with the City of Bend and distributed to the taxing districts. "Area" or "TIF Area" or "Plan Area" means the tax increment finance area established for this Plan pursuant to ORS chapter 457, and described in Section XIII of the Plan, below, including the properties and rights -of -way located therein. "Area Median Income" or "AMI" means the area median income as determined by the most recent United States Department of Housing and Urban Development for the Bend Metropolitan Statistical Area at the time of the household's application for housing. "Blight" is defined in ORS 457.010(1)(a-i) and identified in the ordinance adopting a TIF plan. "Board of Commissioners" means the Deschutes County Board of Commissioners. "City" means the City of Bend, Oregon. "City Council" or "Council" means the Bend City Council. "Comprehensive Plan" means the City of Bend Comprehensive Plan and its implementing ordinances, policies, and standards. "County" means Deschutes County, Oregon. "Fiscal year" or "FYE" means the year commencing on July 1 and closing on June 30. "Frozen base" means the total assessed value including all real, personal, manufactured, and utility values within a TIF area at the time of adoption. The county assessor certifies the assessed value after the adoption of a TIF area plan. "Increment" means that part of the assessed value of a taxing district attributable to any increase in the assessed value of the property located in an urban renewal area, or portion thereof, over the assessed value specified in the certified statement from the assessor (frozen base). "Maximum indebtedness" means the amount of the principal of indebtedness included in a plan pursuant to ORS 457.190 and does not include indebtedness incurred to refund or refinance existing indebtedness. The maximum indebtedness for this Plan is $49,613,485. "More Affordable Housing" is housing that is rented at rates equal to or less than 30% of household income to households earning 90% of area median income (AMI) or less. It assumes housing is available to residents at a range of incomes, at or below 90 percent of AMI. "Municipality" means any county or any city in the state of Oregon. 4 1 Century Tax Increment Finance Plan "ORS" means the Oregon Revised Statutes and specifically Chapter 457, which relates to urban renewal. "Plan" or "Century TIF Plan" or "TIF Plan" means the adopted plan for the TIF Area pursuant to ORS chapter 457. "Planning Commission" means the Bend Planning Commission. "Policy" means the Policy for Tax Increment Assistance for Housing Affordability and Employment Growth adopted by BURA Resolution No. 158 on October 16, 2024. "Policy Justification" means a document with an analysis of the local housing and employment market for the City of Bend used to establish policy parameters for the Tax Increment Assistance for Housing Affordability and Employment Growth. "Project(s)" or "TIF Project(s)" means any work or undertaking carried out under the Century TIF Plan. "Report Accompanying Century TIF Plan" or "Report" means the official report that accompanies the Century TIF Plan pursuant to ORS 457.087. "Revenue sharing" means sharing tax increment proceeds as defined in ORS 457.470. "Tax increment" means that part of the assessed value of a taxing district attributable to any increase in the assessed value of the property located in an urban renewal area, or portion thereof, over the assessed value specified in the certified statement. "Tax increment finance area" or "TIF area" means a blighted area included in a TIF plan. "Tax increment finance area plan" or "TIF plan" means a plan, as it exists or is changed or modified from time to time, for one or more TIF areas, as provided in ORS 457. "Tax increment finance area project(s)" or "TIF area project(s)" or "project(s)" means any work or undertaking carried out under ORS 457.170 and ORS 457.180 in a TIF area. "Tax increment finance area report" or "report" means the official report that accompanies the TIF plan pursuant to ORS 457.087. "Tax increment finance" or "tax increment financing" or "TIF" means the funds that are associated with the division of taxes accomplished through the adoption of a TIF plan. "Tax increment revenues" means the funds allocated by the assessor to renewal TIF area due to increases in assessed value over the frozen base within the area. "UGB" means urban growth boundary. "Urban Renewal" means the statutory authority provided in ORS 457. In this Plan it is synonymous with TIF. Note on language: This Plan, wherever applicable and permissible, uses the term Tax Increment Finance or TIF rather than "urban renewal'. The term TIF is used consistently in other parts of the nation and does not evoke past practices of other urban renewal agencies throughout the country wherein minorities and vulnerable populations were displaced to clear the way for 5 1 Century Tax Increment Finance Plan redevelopment. This Plan aims to avoid those connotations and has been created with intention to avoid those outcomes. Utilizing the term TIF does not affect the statutory authority of ORS 457, as it relates to this Plan. II. INTRODUCTION This Century TIF Plan was developed for the Bend City Council based on the Policy for Tax Increment Assistance for Housing Affordability and Employment Growth adopted by BURA Resolution No. 158 on October 16, 2024, to support the development of new multi -unit housing with minimum numbers of more affordable units by providing development assistance in existing or through the creation of new TIF areas. The Policy was developed with input from BURA and the City advisory bodies — Core Area Advisory Board, Bend Economic Development Advisory Board, and the Affordable Housing Advisory Committee. This Plan was developed with public input at BURA meetings, a Planning Commission meeting, and meetings of the Bend City Council. This Plan will go into effect following adoption by the City Council. The Bend Urban Renewal Agency's Policy Justification for the Policy noted: Bend has a very low residential vacancy rate and many households are spending more than 30% of their household income on housing costs. An average individual/household would need to make $72,000 to not be cost burden to afford current market rent. Currently, 81% of occupations in the Bend Redmond MSA cannot adequately support market rate rent on a single income. Those making $43,000 or less account for nearly 50% of total employment. The number of Bend households that cannot adequately afford market rate rent is 45%.1 Providing incentives for housing affordability starting at 90% area median income for multi- unit rental units, with additional incentives for developments meeting certain energy efficiency and supplier diversity criteria, will assist in meeting the City of Bend's affordable housing and other Council goals. The City of Bend currently incentivizes housing affordable to households making 60% and 80% AM or less through its Non -Profit and Qualifying Rental Property Tax Exemptions. This Plan and Projects incentivize creation of additional units of market rate housing integrated with units that are affordable to households making 90% AMI or less. ORS chapter 457 allows for the use of tax increment revenues, a financing source that is unique to TIF areas, to fund projects within a specific boundary. Tax increment revenues - the amount of property taxes generated by the increase in total assessed values within a TIF area from the time an area is first established - are used to repay borrowed funds or meet contractual obligations. The borrowed funds and contractual obligations fund projects within an area that meet the goals of the plan and cannot exceed the maximum indebtedness amount set by a TIF plan. 'Bend Urban Renewal Policy Justification for the Tax Increment Assistance for Housing Affordability and Employment Growth, presented on August 7, 2024 6 1 Century Tax Increment Finance Plan The purpose of a TIF area is to improve specific areas of a municipality that are poorly developed or underdeveloped, called blighted areas in ORS chapter 457. These areas can have property that is undeveloped or underdeveloped, old or deteriorated buildings, streets and utilities in poor condition, a complete lack of streets and utilities altogether, or other obstacles to development. In general, TIF area projects funded with tax increment can include construction or improvement of streets, utilities, and other public facilities, assistance for development, rehabilitation or redevelopment of property, and improvements to public spaces. The Bend Urban Renewal Agency's Policy provides for the creation of TIF areas consisting of a single or small number of tax lots in the City currently not included in an existing tax increment area to support construction of new housing that includes More Affordable Housing, for households earning 90% AM or less. The development assistance for the project in the new TIF area may consist of a rebate of a portion of the tax increment to the property owner in exchange for restricting a minimum percentage of units available to households earning 90% AMI or less at rents affordable to those households, and agreeing to limit annual rent increases to lower than the maximum rental increases allowed under ORS 90.323 for those rent -restricted units. The actual rebate amount and number of affordable units in the development will be set in an agreement between BURA and the property owner and based on the Policy for Tax Increment Assistance for Housing Affordability and Employment Growth, consistent with the provisions of this Plan. This Plan will support the development of housing that includes More Affordable Units and the other requirements of the Policy, in an area known as Century, shown in Figure 1. The Plan reflects input from the community received at public meetings at the Agency and hearings before the Planning Commission and the City Council. The Plan is anticipated to last 32 years, resulting in 30 years of tax increment collection. The Plan is to be administered by the Agency. Substantial amendments to the Plan must be approved by City Council as outlined in Section VII of this Plan. All amendments to the Plan are to be listed numerically on the inside over of the front page of the Plan and then incorporated into the Plan, document and noted by footnote with an amendment number and adoption date. The relationship between the sections of the Plan and the ORS 457.085 requirements is shown in Table 1. The specific reference in the table below is the section of this Plan that primarily addresses the statutory reference. There may be other sections of the Plan that also address the noted statute. Table 1- Statutory References Statutory Requirement Plan Section ORS 457.085(2)(a) V, VI ORS 457.085(2)(b) V, VI 7 1 Century Tax Increment Finance Plan ORS 457.085(2)(c) Xill XII ORS 457.085(2)(d) ORS 457.085(2)(e) XI ORS 457.085(2)(f) IX Vlll ORS 457.085(2)(g) ORS 457.085(2)(h) III ORS 457.085(2)(1) VII A. TIFArea Overview The Century TIF Plan Area, shown in Figure 1, consists of approximately 9.2 total acres. This TIF Area meets the definition of a blighted area due to its infrastructure deficiencies, including inadequate streets and rights -of -way, undeveloped status resulting in unproductive land that is potentially useful and valuable for contributing to the public health, safety, and welfare as the location of new housing units, and impaired investments. These blight conditions are specifically cited in the ordnance adopting the Plan and described in detail in the Report accompanying the Plan. The Report contains the information required by ORS 457.087, including: • A description of the physical, social, and economic conditions in the area; • The expected impact of the Plan, including fiscal impact in light of increased services; • Reasons for selection of the Area; • The relationship between each Project to be undertaken and the existing conditions; • The estimated total cost of each Project and the source(s) of funds to pay such costs; • The estimated completion date of each Project; • The estimated amount of funds required in the Area and the anticipated year in which the debt will be retired; • A financial analysis of the Plan; • A fiscal impact statement that estimates the impact of tax increment financing upon all entities levying taxes upon property in the Area; and • A relocation report. III. MAXIMUM INDEBTEDNESS Maximum indebtedness is a legal term for the total amount of money that can be spent on projects, programs, and administration throughout the life of the Plan. The maximum amount 8 1 Century Tax Increment Finance Plan 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 $49,613,485 (Forty Nine Million, Six Hundred and Thirteen Thousand, Four Hundred and Eighty Five Dollars.) 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, if any. The projects under this plan are not anticipated to be financed through bonds, but primarily through rebate of property taxes paid. IV. PLAN GOALS The goals of the Plan represent its basic intent and purpose. The TIF Projects identified in Sections V and VI of the Plan are specific means of meeting the goals. The goals will be pursued as economically as is feasible and at the discretion of the Agency. A. Housing Development To increase the supply of housing by providing financial incentives for the development of housing in the City of Bend. B. Encourage More Affordable Housing To increase the supply of more affordable housing options by providing financial incentives for the development of more affordable housing in the City of Bend. C. Encourage Energy Efficiency Housing To increase the number of energy -efficient certified housing projects by providing financial incentives for the utilization of energy efficiency standards in the construction of housing projects that lower overall housing costs for households and reduce carbon emissions. D. Administration. To provide administrative support for the implementation of the Plan. 9 1 Century Tax Increment Finance Plan Figure 1 —Century TIF Area Source; City of Bend 10 1 Century Tax Increment Finance Plan V. TIF AREA PROJECT CATEGORIES To support the Plan Goals described in the previous section, the Projects within the Area fall into the following categories: A. Housing Development and Development Incentives, Partnership, and Support B. Plan Administration, Implementation, Reporting, and Support VI. TIF AREA PROJECTS The Projects authorized by the Plan are: A. Housing Development and Development Assistance, Partnership, and Support This Project will provide incentives for the development of housing units and More Affordable Housing in the Plan Area. The development to be supported by this Project are for a multi -unit housing development and associated site improvements at 1081 SW Mt Bachelor Drive, approved by the City of Bend under application number PLSPR20211160, and a project consisting of two buildings for residential / mixed -use development on two tax lots and associated site improvements, approved by the City of Bend under application number PLSPR20230367, as such applications may be modified, consistent with the goals of this Plan. Incentives may be in the form of either an annual tax increment reimbursement payment over a specified period and/or payment of City development fees associated with the proposed development project (i.e., system development charges) ("Assistance"). The form of Assistance for any Project will be determined through a development agreement with the developer of the housing that stipulates the amount and timing of the development and the amount and timing of the incentive. BURA staff will conduct pre -development meetings with a developer of property within the Area to identify the financing needs of the site. Staff will recommend a financing package not to exceed the maximum indebtedness to the Agency that will contain recommendations on the appropriate length of incentive through negotiations with the developer for the development of the housing units. A development agreement, approved by the Agency will set out the method of providing the Assistance to the eligible project and a commitment by the developer owner for providing the required More Affordable Units. A guideline for the amount of Assistance is provided in the Report accompanying the Plan. B. Plan Administration, implementation, Reporting, and Support The Agency may provide administration of the Plan including but not limited to staff support, legal counsel assistance, review of annual payments, financial statements, budget preparation, and annual reports pursuant to ORS 457.460. 111 Century Tax Increment Finance Plan VII. AMENDMENTS TO PLAN The Plan may be amended as described in this section. A. Substantial Amendments Substantial Amendments, in accordance with ORS 457.085(2)(i), shall require the same notice, hearing, and approval procedure required of the original Plan under ORS 457.095, including public involvement, consultation with taxing districts, presentation to BURA, the Planning Commission, and adoption by the City Council by non - emergency ordinance after a hearing. Notice of such hearing shall be provided to individuals or households within the City, as required by ORS 457.120. Substantial Amendments shall be processed in accordance with ORS 457.095 and 457.220. Substantial Amendments are amendments that: 1. Add land to the Area, representing more than 1% of the existing area of the Area; z or 2. Increase the maximum amount of indebtedness that can be issued or incurred under the Plan. B. Minor Amendments Minor Amendments are amendments that are not Substantial Amendments as defined in this Plan and in ORS chapter 457. Minor Amendments require approval by BURA by resolution. The projects proposed in the Plan and Report are organized by project categories. If BURA determines that the allocation of funds within a project category should be adjusted based on needs within the Area, it may do so through a Minor Amendments VIII. PROPERTY ACQUISITION AND DISPOSITION Property acquisition and disposition are not eligible activities under the Plan. 2 Unless otherwise permitted by state law, no land equal to more than 20 percent of the total land area of the original Plan shall be added to the urban renewal area by amendments, and the aggregate amount of all amendments increasing the maximum indebtedness may not exceed 20 percent of the Plan's initial maximum indebtedness, as adjusted, as provided by law, with increases beyond that amount requiring concurrence as stated in ORS 457. s Project costs may be impacted by grants, timing, cost savings, inflation, or other external forces unanticipated at this time but which may occur over the 32-year life of this Area. 12 1 Century Tax Increment Finance Plan IX. RELOCATION METHODS There are no persons living in or business situated in the Plan Area, therefore relocation is not part of this Plan. X. TAX INCREMENT FINANCING OF PLAN Tax increment financing consists of using annual tax increment revenues to make payments on debt, usually in the form of bank loans or revenue bonds, or contractual obligations for TIF projects under a TIF plan. Tax increment revenues are the revenue received from increases in property taxes based on the increase in assessed value within a TIF area over the total assessed value from the time a plan is adopted. Increment does not include property taxes levied to pay for General Obligation (GO) bonds and local option levies. A. General description of the proposed financing method The Plan will be financed using tax increment revenues. Revenues obtained by the Agency will be used to pay or repay the costs, expenses, advancements, and indebtedness incurred in planning and undertaking project activities, and otherwise exercising any of the powers granted by ORS Chapter 457 in connection with the planning and implementation of this Plan, including preparation of the Plan. No bonds will be issued to finance the activities in the Plan. B. Tax increment financing The Plan may be financed, in whole or in part, by tax increment revenues allocated to BURA, 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 pursuant to ORS 457.440 shall be deposited into the unsegregated tax collections account and distributed to BURA based upon the distribution schedule established under ORS 311.390. Should a court of competent jurisdiction find any work, clause, sentence, section or part of this Plan to be invalid, the remaining words, clauses, sentences, sections or parts shall be unaffected by such findings and shall remain in full force and effect for the duration of this Plan. XI. ANNUAL REPORT BURA shall file an Annual Report in compliance with ORS 457.460. XII. RELATIONSHIP TO LOCAL OBJECTIVES ORS 457.085 requires that the Plan describe the relationship of the plan to definite local objectives regarding appropriate land uses and improved traffic, public transportation, public 13 1 Century Tax Increment Finance Plan utilities, telecommunications utilities, recreational and community facilities and other public improvements. This section provides that analysis. Relevant local planning and development objectives are set out in the Bend Comprehensive Plan, Bend Economic Development Advisory Board Strategic Plan, and the Bend Development Code. This section describes the purpose and intent of these plans, the main applicable goals and policies within each plan, and an explanation of how this Plan conforms to the applicable goals and policies. The numbering of the goals and policies within this section reflects the numbering that occurs in the original document. The language from the original document is in italics. All of the land in the Area is designated Mixed Use Urban (MU) in the Comprehensive Plan, and zoned Mixed Use Urban in the Bend Development Code. Allowed land uses, maximum densities, and building requirements for all land in the Area are governed by the Bend Development Code, as described in subsection C of this Section X111. A. Bend Comprehensive Plan The analysis of how the Plan conforms to the Comprehensive Plan covers the most relevant sections, but may not cover every section of the Comprehensive Plan that relates to the Plan. If the Comprehensive Plan policies identified in the Plan are updated in the future, this document will automatically incorporate those updates without the Plan having to be formally amended. If a Substantial Amendment is completed in the future, this section of the Plan should be updated at that point. Below are applicable Comprehensive Plan policies and statements of how the Plan conforms to these Comprehensive Plan policies. Chapter Citizen Involvement Policies 1-4 The City and special districts shall work toward the most efficient and economical method for providing their services within the UGB. 1-7 The City will encourage compact development and the integration of land uses within the Urban Growth Boundary to reduce trips, vehicle miles traveled, and facilitate non - automobile travel. 1-8 The City and county will encourage infill and redevelopment of appropriate areas within the Bend Central Core, Opportunity Areas and Transit Corridors. 1-15 The City shall continue to use advisory committees in their planning process, members of which are selected by on open process, and who are widely representative of the community. 1-16 The City will use other mechanisms, such as, but not limited to, meetings with neighborhood groups, planning commission hearings, design workshops, and public forums, to provide an opportunity for all the citizens of the area to participate in the planning process. 14 1 Century Tax Increment Finance Plan Finding: The Plan conforms to Chapter 1 Citizen Involvement as there has been extensive citizen involvement in the preparation of the Plan and all related BURA policies. The Plan and Project support compact development within the Urban Growth Boundary by supporting residential development in the Mixed -Use Urban (MU) zone, near residential and commercial uses. The Area is in an Opportunity Area and Transit Corridor as identified in Figure 11-1 of the Comprehensive Plan, and the identified Project supports infill development on currently undeveloped lots. Over twenty-five opportunities for public involvement were provided in the course of development the Policy supporting this Plan. In this process, the Bend Economic Development Advisory Board, the Affordable Housing Advisory Committee, Core Area Advisory Board, the Bend Chamber of Commerce, Economic Development of Central Oregon, and a round table of housing developers provided input on development of the Policy supported by this Plan. Specific to public involvement in this Plan, BURA, the Planning Commission, and the City Council all held public meetings regarding this Plan, at which public comment was accepted, prior to the adoption of this TIF Plan and Report. Chapter 5 Housing Policies 5-7 The City will continue to create incentives for and remove barriers to development of a variety of housing types in all residential zones, consistent with the density ranges and housing types allowed in the zones. This policy is intended to implement the City's obligation under the State Housing Goal to "encourage the availability of adequate numbers of needed housing units at price ranges and rent levels which are commensurate with the financial capabilities of Oregon households and allow for flexibility of housing location, type, and density". 5-18 The City will assist in identifying, obtaining and leveraging funding sources for the development of new housing for very low, low, and moderate - income residents, as determined by appropriate percentages of Area Median Family income in the Housing Needs Assessment. 5-31 Residential areas will offer a wide variety of housing types in locations best suited to a range of housing types, needs and preferences. 5-38 Medium -and high -density residential developments should have good access to transit, K- 12 public schools where possible, commercial services, employment and public open space to provide the maximum access to the highest concentrations of population. Policy 5-20 defines affordable, in the case of dwelling units offered for rent, as housing for which the rent and utilities constitute no more than 30 percent of such gross annual household income for a family at 60% of the area median income, based upon most recent HUD Income Limits for the Bend MSA. Policy 5-20 provides that other programs or policies can specify other levels of affordability. 16 1 Century Tax Increment Finance Plan Finding: The Plan conforms to Chapter 5 Housing as the Housing Development and Development Assistance, Partnership, and Support Project will encourage the development of housing for households earning 90% AMI or less, along with market rate units, meeting housing needs identified in the Oregon Housing Needs 2025 Methodology for the Bend UGB, supporting the goals of the Comprehensive Plan and Policy 5-20 to provide affordability at additional income levels. The Area is within an Opportunity Zone and within or near a Transit Corridor identified in the Comprehensive Plan, and has access to transit, K-12 public schools, commercial services, employment, and public open space. Other significant uses in the area include the public Cascade Middle School, private 7 Peaks School, and the public Skyline Sports Complex. The Deschutes River, with public trails and parks including Riverbend Park and Farewell Bend Park are located in close proximity to the east. The Area is in a Mixed -Use Urban (MU) zone surrounded by properties developed with commercial and a mix of housing types and densities. Surrounding properties are zoned Mixed Use Urban (MU) to the north, Residential Standard Density (RS) to the east, Medium Density Residential (RM) to the west, and Light Commercial (CL) to the South. Chapter 6 Economy 6-24 Mixed -use development may be regulated through one or more plan designations and zoning districts to encourage the development of a mix of employment, or a mix of employment and residential uses 6-25 The city will encourage vertical mixed -use development in commercial and Mixed Use Urban zones, especially where those occur within the Central Core, Opportunity Areas and along transit corridors. 6-26 The City will encourage development and redevelopment in commercial corridors that is transit -supportive and offers safe and convenient access and connections for all transportation modes. 6-30 The City sholl strive to retain and enhance desirable existing commercial areas and encourage property owners' efforts to rehabilitate or redevelop older commercial areas. 6-43 The City will work with public agencies and community partners to support solutions for houselessness. This includes finding ways to keep people in their homes, provide temporary transitional housing, increase the availability of affordable housing, and provide flexible shelter and housing options for people experiencing hardships due to economic instability and other legitimate reasons. Finding: The Plan conforms to Chapter 6 Economy as there are projects, programs, and expenditures identified for Housing Development and Development Incentives, Partnership, and Support that will encourage vertical residential uses along transit corridors. 16 I Century Tax Increment Finance Plan Chapter 11: Growth Management Mixed Use Urban Districts 11-1 The City will encourage compact development and the integration of land uses within the Urban Growth Boundary to reduce trips, vehicle miles traveled, and facilitate non - automobile travel. 11-2: The City will encourage infill and redevelopment of appropriate areas within Bend's Central Core, Opportunity Areas and transit corridors. 11-3 The City will ensure that development of large blocks of vacant land makes efficient use of land, meets the city's housing and employment needs, and enhances the community. 11-4 Streets in the Centers and Corridors, Employment Districts, Neighborhoods, and Opportunity Sites will have the appropriate types of pedestrian, biking, and transit scale amenities to ensure safety, access, and mobility. 11-6 Medium and high -density residential development should have good access to transit, K- 12 public schools where possible, commercial services, employment and public open space to provide the maximum access to highest concentrations of population. 11-10 The City shall continue to explore Mixed Use Urban zoning as one of the land use patterns that will promote fewer vehicle trips and shorter trip lengths. 11-12 The City shall explore incentives for re -development of existing commercial strips in order to help reduce the need to expand the Urban Growth Boundary. 11-12 The City shall explore incentives for re -development of existing commercial strips in order to help reduce the need to expand the Urban Growth Boundary. 11-23 The City will encourage development and redevelopment in commercial corridors that is transit -supportive and offers safe and convenient access and connections for all modes. 11-24 The City will encourage vertical Mixed Use Urban development in commercial and Mixed Use Urban zones, especially where those occur within the Central Core, Opportunity Areas and along transit corridors. 11-26 New commercially designated areas are encouraged to develop with mixed -use centers to include housing, open space, commercial development, and other employment uses. 11-27 The City will encourage development and redevelopment in commercial corridors that is transit -supportive and offers safe and convenient access and connections for all modes. Finding: The Plan conforms to Chapter 11 Growth Management as there are projects, programs, and expenditures identified for encouraging compact development, infill and redevelopment, making efficient use of large blocks of vacant land that meet's the City's housing need, and encouraging development and redevelopment in commercial corridors that is transit -supportive, and offers access and connections for all modes in the Area. To the extent not provided by the existing transportation improvements, the development supported by this Plan will be required to make infrastructure improvements as set out in the Bend Development Cade. 17 1 Century Tax Increment Finance Plan 8. Bend Economic Development Advisory Board Strategic Plan The Bend Municipal Code requires the Bend Economic Development Advisory Board (BEDAB) to create a three-year strategic plan, identifying projects and guiding the work of the city's nine - member board as it seeks to: • Advocate: Provide input into City policy and procedures from a private sector perspective. • Facilitate: Broker entrepreneurial support among existing community resources. • Market: Brand and guide marketing efforts of Bend as "Open for Business." • Coordinate: Organize and oversee City resources applied to economic development. The following goal and strategy from the 2022-2024 BEDAB Strategic Plan is directly related to Goal 2• Monitor and provide input on other relevant City policies relating to economic development • Support policies that provide for a spectrum of workforce housing opportunities Finding: The Plan conforms to the Bend Economic Development Advisory Board Strategic Plan as for the Project will create additional market rate and 90% AM housing units in the Area, supporting the Bend workforce. C. Bend Development Code The Projects in the Area supported by the Plan conform to the zoning in the Bend Development Code, including maximum densities and building requirements, as demonstrated by the City of Bend approval of planning applications for the housing developments that may be supported by the Projects of this Plan, and those provisions of the Bend Development Code are incorporated by reference herein. The entirety of the area is zoned Mixed Use Urban (MU). Multi -unit residential developments are permitted outright in the MU zone. As the Bend Development Code is updated, the references to the Bend Development Code in this document will be deemed to incorporate those updates without the Plan having to be formally amended. If a Substantial Amendment to this Plan is completed in the future, this section will be updated to match the current zoning designations. The provisions of the Bend Development Code in effect at the time of development approval will apply for any development assisted by this Plan. 8.2 — MIXED -USE ZONING DISTRICTS Bend Development Code Section 2.3.100 Purpose and Applicability The Mixed -Use Urban (MU) Zone is intended to provide opportunities for vibrant mixed -use centers and districts in areas with high -quality connectivity to and within the area. It is intended to allow for a denser level of development of a variety of commercial and residential uses than in surrounding areas with an emphasis on retail and entertainment uses at the street level. It is 18 1 Century Tax Increment Finance Plan intended to provide for development that is supportive of transit by encouraging a pedestrian - friendly environment. Finding: The Plan conforms to the Bend Development Code as the Projects and expenditures proposed in the Plan conform to the requirements in the Bend Development Code and support the types of uses allowed in the zoning present in the Area. The Project will support development of multi -unit residential developments that the City has approved following planning review. These developments will be required to comply with the provisions of BDC Chapter 3.4, Public Improvement Standards, and other provisions of the Bend Development Code to provide sufficient public infrastructure to serve the development. The proposal includes the build -out of the undeveloped sites, in a generally developed area. 19 1 Century Tax Increment Finance Plan XII1. PLAN AREA LEGAL DESCRIPTION OT 4 OF MOUNT BACHELOR VILLAGE, RECORDED MARCH 22, 2002 IN CABINET F, PAGE 61, CITY OF BEND, DESCHUTES COUNTY OREGON. TOGETHER WITH THAT PORTION OF VACATED REED MARKET ROAD THAT INURED TO SAID PROPERTY BY ORDINANCE NS-1836, RECORDED SEPTEMBER 4, 2002 IN INSTRUMENT NO. 2002- 48277, MORE PARTICULARLY DESCRIBED AS: BEGINNING AT A POINT ON THE NORTH BOUNDARY OF THE TRACT CONVEYED PER WARRANTY DEED RECORDED ON AUGUST 21, 1987 IN BOOK 150, PAGE 0762 OF OFFICIAL RECORDS IN THE OFFICE OF THE DESCHUTES COUNTY CLERK WHICH BEARS NORTH 42043'02" WEST A DISTANCE OF 732.81 FEET FROM THE SOUTH ONE -QUARTER CORNER OF SAID SECTION 6; THENCE ALONG THE NORTH BOUNDARY OF SAID TRACT THE FOLLOWING ONE (1) CURVE AND ONE (1) COURSE: 338.98 FEET ALONG A CURVE TO THE LEFT WITH A RADIUS OF 371.04 FEET, THE CHORD OF WHICH BEARS SOUTH 80045'S3" EAST A DISTANCE OF 327.32 FEET; NORTH 73°03'46" EAST A DISTANCE OF 174.93 FEET TO A POINT WHICH BEARS SOUTH 73°03'46" WEST A DISTANCE OF 80.49 FEET FROM ABOVE POINT A: THENCE LEAVING THE NORTH BOUNDARY OF SAID TRACT 57.17 FEET ALONG A NON -TANGENT CURVE TO THE RIGHT WITH A RADIUS OF 74.00 FEET, THE CHORD OF WHICH BEARS SOUTH 25°50'33" WEST A DISTANCE OF 55.76 FEET; THENCE SOUTH 78006'33" WEST A DISTANCE OF 214.21 FEET; THENCE 243.13 FEET ALONG A NON -TANGENT CURVE TO THE RIGHT WITH A RADIUS OF 250.00 FEET, THE CHORD OF WHICH BEARS NORTH 74001'40" WEST A DISTANCE OF 233.66 FEET; THENCE NORTH 46-10-02" WEST A DISTANCE OF 44.28 FEET; THENCE NORTH 05"14'25" EAST A DISTANCE OF 0.94 FEET TO THE POINT OF BEGINNING, THE TERMINUS OF THIS DESCRIPTION. 20 1 Century Tax Increment Finance Plan EXHIBIT A Century Tax Increment Finance Plan - Report DRAFT FOR PUBLIC COMMENT AND REVIEW NOT ADOPTED CITY OF BEND BUILDING ON OUR PAST SERVING THE PRESENT SHAPING BEND'S FUTURE 11 Century Tax Increment Finance Plan Report LIST OF PARTICIPANTS Mayor Bend Urban Renewal Agency Melanie Kebler Mike, Riley, Chair Gina Franzosa, Vice -Chair Mayor Pro tem Ariel Mendez Megan Perkins Megan Noris City Council Steve Platt Gina Franzosa Melanie Kebler Ariel Mendez Megan Perkins Mike Riley Core Area Advisory Board Megan Norris Corie Harlan, Chair Steve Platt Dale VanValkenburg, Vice -Chair Planning Commission Dawn Cofer Margo Clinton, Chair Hank Kamakaala Scott Winters, Vice -Chair James Teeter Bob Gressens Jeff Baker Suzanne Johannsen John Fischer John LaMotte John Heylin Erin Ludden Katherine Austin Nathan Nelson Bend Economic Development Advisory City Manager Board Eric King Gary North, Chair City Finance Director DaWayne Judd, Vice -Chair Samantha Nelson Briana Manfrass Jenn Lynch City Attorney Jillian Taylor Ian Leitheiser Mark Kroncke Senior Assistant City Attorney Petra Oroslanova Elizabeth Oshel Ryan Andrews Tierney Booker Real Estate Director Matt Stuart Affordable Housing Advisory Committee Mandy Dalrymple Urban Renewal Manager Alison Alison Jonathan Taylor Ian Karasz Planning Manager Tony Levison Renee Brooke Isabel Mikovich Richard Reese Housing Manager Helen Silfven Racheal Baker Heather Simmons Geoff Wall 2 1 Century Tax Increment Finance Plan Report TABLE OF CONTENTS I. DEFINITIONS...............................................................................................I...................1 II. INTRODUCTION..............................................................................................................3 III. THE PROJECTS IN THE AREA AND THE RELATIONSHIP BETWEEN TIF DISTRICT PROJECTS AND THE EXISTING CONDITIONS IN THE TIF DISTRICT.................................6 IV. THE ESTIMATED TOTAL COST OF EACH PROJECT AND THE SOURCES OF MONEYS TO PAYSUCH COSTS............................................................................................................7 V. FINANCIAL ANALYSIS OF THE PLAN....................................................................................7 VI. THE ESTIMATED AMOUNT OF TAX INCREMENT REVENUES REQUIRED AND THE ANTICIPATED YEAR IN WHICH INDEBTEDNESS WILL BE RETIRED...............................10 VII. THE ANTICIPATED COMPLETION DATE FOR EACH PROJECT..........................................10 VIII. REVENUE SHARING.......................................................................................................10 IX. IMPACT OF THE TAX INCREMENT FINANCING................................................................10 X. COMPLIANCE WITH STATUTORY LIMITS ON ASSESSED VALUE AND SIZE OF TIF/URBAN RENEWALAREAS..........................................................................................................15 XI. EXISTING PHYSICAL, SOCIAL, AND ECONOMIC CONDITIONS AND IMPACTS ON MUNICIPALSERVICES...................................................................................................17 XIL REASONS FOR SELECTION OF EACH PLAN AREA IN THE PLAN......................................21 XIII. RELOCATION REPORT....................................................................................................21 3 1 century Tax Increment Finance Plan Report I. DEFINITIONS "Agency" or "BURA" means the Bend Urban Renewal Agency. The Agency is responsible for administration of this Britta Ridge TIF Plan and other TIF plans previously adopted in the City of Bend. "Annual report" is the report required by ORS 457.460 that is filed with the City of Bend and distributed to the taxing districts. "Area" or "TIF Area" or "Plan Area" means the tax increment finance area established for this Plan pursuant to ORS chapter 457, and described in Section XIII of the Plan, below, including the properties and rights -of -way located therein. "Area Median Income" or "AMI" means the area median income as determined by the most recent United States Department of Housing and Urban Development for the Bend Metropolitan Statistical Area at the time of the household's application for housing. "Blight" is defined in ORS 457.010(1)(a-i) and identified in the ordinance adopting a TIF plan. "Board of Commissioners" means the Deschutes County Board of Commissioners. "City" means the City of Bend, Oregon. "City Council" or "Council" means the Bend City Council. "Comprehensive Plan" means the City of Bend Comprehensive Plan and its implementing ordinances, policies, and standards. "County" means Deschutes County, Oregon. "Fiscal year" or "FYE" means the year commencing on July 1 and closing on June 30. "Frozen base" means the total assessed value including all real, personal, manufactured, and utility values within a TIF area at the time of adoption. The county assessor certifies the assessed value after the adoption of a TIF area plan. "Increment" means that part of the assessed value of a taxing district attributable to any increase in the assessed value of the property located in an urban renewal area, or portion thereof, over the assessed value specified in the certified statement from the assessor (frozen base). "Maximum indebtedness" means the amount of the principal of indebtedness included in a plan pursuant to ORS 457.190 and does not include indebtedness incurred to refund or refinance existing indebtedness. The maximum indebtedness for this Plan is $14,666,437. "More Affordable Housing" is housing that is rented at rates equal to or less than 30% of household income to households earning 90% of area median income (AMI) or less. It assumes housing is available to residents at a range of incomes, at or below 90 percent of AMI. "Municipality" means any county or any city in the state of Oregon. 1 I Report on Century TIF District Plan "ORS" means the Oregon Revised Statutes and specifically Chapter 457, which relates to urban renewal. "Plan" or "Century Area TIF Plan" or "TIF Plan" means the adopted plan for the TIF Area pursuant to ORS chapter 457. "Planning Commission" means the Bend Planning Commission. "Policy" means the Policy for Tax Increment Assistance for Housing Affordability and Employment Growth adopted by BURA Resolution No. 158 on October 16, 2024. "Policy Justification"' means a document with an analysis of the local housing and employment market for the City of Bend used to establish policy parameters for the Tax Increment Assistance for Housing Affordability and Employment Growth. "Project(s)" or "TIF Project(s)" means any work or undertaking carried out under the Britta Ridge TIF Plan. "Report Accompanying Century Area TIF Plan" or "Report" means the official report that accompanies the Century TIF Plan pursuant to ORS 457.087. "Revenue sharing" means sharing tax increment proceeds as defined in ORS 457.470. "Tax increment" means that part of the assessed value of a taxing district attributable to any increase in the assessed value of the property located in an urban renewal area, or portion thereof, over the assessed value specified in the certified statement. "Tax increment finance area" or "TIF area" means a blighted area included in a TIF plan. "Tax increment finance area plan" or "TIF plan" means a plan, as it exists or is changed or modified from time to time, for one or more TIF areas, as provided in ORS 457. "Tax increment finance area project(s)" or "TIF area project(s)" or "project(s)" means any work or undertaking carried out under ORS 457.170 and ORS 457.180 in a TIF area. "Tax increment finance area report" or "report" means the official report that accompanies the TIF plan pursuant to ORS 457.087. "Tax increment finance" or "tax increment financing" or "TIF" means the funds that are associated with the division of taxes accomplished through the adoption of a TIF plan. "Tax increment revenues" means the funds allocated by the assessor to renewal TIF area due to increases in assessed value over the frozen base within the area. "UGB" means urban growth boundary. "Urban Renewal" means the statutory authority provided in ORS 457. In this Plan it is synonymous with TIF. Note on language: This Plan, wherever applicable and permissible, uses the term Tax Increment Finance or TIF rather than "urban renewal". The term TIF is used consistently in other parts of the nation and does not evoke past practices of other urban renewal agencies throughout the country wherein minorities and vulnerable populations were displaced to 2 1 Report on Century TIF District Plan clear the way for redevelopment. This Plan aims to avoid those connotations and has been created with intention to avoid those outcomes. Utilizing the term TIF does not affect the statutory authority of ORS 457, as it relates to this Plan. II. INTRODUCTION The Report contains background information and project details that pertain to the Century TIF District Plan. The Report is not a legal part of the Plan but provides public information and supports the findings made by the Bend City Council as part of the approval of the Plan. The Report provides the analysis required to meet the standards of ORS 457.087, including financial feasibility. The Report accompanying the Plan contains the information required by ORS 457.087, including: • A description of the physical, social, and economic conditions in the area, ORS 457.087(1) • Expected impact of the Plan, including fiscal impact in light of increased services, ORS 457.087(1) • Reasons for selection of the area, ORS 457.087(2) • The relationship between each project to be undertaken and the existing conditions, ORS 457.087(3) • The estimated total cost of each project and the source of funds to pay such costs, ORS 457.087(4) • The estimated completion date of each project, ORS 457.087(5) • The estimated amount of funds required in the area and the anticipated year in which the debt will be retired, ORS 457.087(6) • A financial analysis of the Plan, ORS 457.087(7) • A fiscal impact statement that estimates the impact of tax increment financing upon all entities levying taxes upon property in the urban renewal area, ORS 457.087(8) • A relocation report, ORS 457.087(9) 3 1 Report on Century TIF District Plan The relationship of the sections of the Report and the ORS 457.087 requirements is shown in Table 1. The specific reference in the table below is the section of this Report that most addresses the statutory reference. There may be other sections of the Report that also address the statute. Table 1- Statutory References Statutory Requirement Report Section ORS 457.087(1) X, VIII ORS 457.087(2) XI ORS 457.087(3) II _ ORS 457.087(4) II I ORS 457.087(5) VI ORS 457.087(6) IV,V ORS 457.087(7) IV,V ORS 457.087(8) Vlll ORS 457.087(9) X11 The Report provides guidance on how the Plan might be implemented. The Agency has the authority to adjust the implementation assumptions in this Report. The Agency may allocate budgets differently, adjust the timing of the projects and make other adjustments to the financials as determined by the Agency. The Agency may also make changes as allowed in the Amendments section of the Plan. These adjustments must stay within the overall maximum indebtedness of the Plan. 4 1 Report on Century TIF District Plan Figure I — Century TIF Area Boundary Source: City of Bend 5 1 Report on Century TIF District Plan III. THE PROJECTS IN THE AREA AND THE RELATIONSHIP BETWEEN TIF DISTRICT PROJECTS AND THE EXISTING CONDITIONS IN THE TIF DISTRICT The projects identified for the Century TIF Plan Area are described below, including how they relate to the existing conditions in the Plan Area. A. Housing Development and Development Assistance, Partnership, and Support This Project will provide incentives for the development of housing units and More Affordable Housing in the Plan Area. The development to be supported by this Project are for a multi -unit housing development and associated site improvements at 1081 SW Mt Bachelor Drive, approved by the City of Bend under application number PLSPR20211160, and a project consisting of two buildings for residential / mixed -use development on two tax lots and associated site improvements, approved by the City of Bend under application number PLSPR20230367. Incentives may be in the form of either an annual tax increment reimbursement payment over a specified period and/or payment of City development fees associated with the proposed development project (i.e., system development charges) ("Assistance"). The form of Assistance for the Project will be determined through a development agreement with the developer of the housing that stipulates the amount and timing of the development and the amount and timing of the incentive. BURA staff will conduct pre -development meetings with a developer of property within the Area to identify the financing needs of the site. Staff will recommend a financing package not to exceed the maximum indebtedness to the Agency that will contain recommendations on the appropriate length of incentive through negotiations with the developer for the development of the housing units. A development agreement, approved by the Agency will set out the method of providing the Assistance to the eligible project and a commitment by the developer owner for providing the required More Affordable Units. A guideline for the amount of Assistance is shown in the Table 2 of this Report. This is a guideline only, and actual assistance provided will be set through development agreements with BURA, balancing the needs for administration and incentives. Existing Conditions: The property is currently undeveloped. There are transportation deficiencies, topography challenges, and impaired investments as identified in Section X of this Report. As described in the Plan and the adopting documents, there is a lack of residential housing units and affordable housing units in Benda The Plan will support development of housing in the Area, including improvements to presently deficient rights -of -way and public infrastructure, increase the supply of housing units, and provide housing units affordable for I City of Bend Comprehensive Plan 6 1 Report on Century TIF District Plan households in income ranges for whom there is presently a lack of affordable units in Bend.2 B. Administration The Agency may provide administration of the Plan including but not limited to staff support, legal counsel assistance, review of annual payments, financial statements, budget preparation and annual reports pursuant to ORS 457.460. Existing Conditions: There is presently not a TIF area in this location. Therefore, there is no existing funding or need for administration in the Area by BURA. This project would provide that administrative support. A table showing the projects and total estimated costs is shown in Table 2. The total costs are estimated based on the projected future assessed value of the project. IV. THE ESTIMATED TOTAL COST OF EACH PROJECT AND THE SOURCES OF MONEYS TO PAY SUCH COSTS The total cost estimates for the projects are shown in Table 2 below. These are all estimates acknowledging that these project activities must fit within the maximum indebtedness. These costs are shown in nominal, year of expenditure (YOE) dollars, and are equal to the maximum indebtedness of $49,613,485. The estimated project costs assume a 97% rebate to the developers and 3% to the Agency for administration of the Plan. The Agency will be able to review and update fund expenditures and allocations on an annual basis when the annual budget is prepared. Table 2 - Estimated Cost of Each Project, ($2025) Project Estimated Cost Percentage of Total Development Assistance $48,125,081 97% Administration $ 1,488,405 3% TOTAL $49,613,4$5 100% Source: City of Bend V. FINANCIAL ANALYSIS OF THE PLAN The estimated tax increment revenues through fiscal year ending ("FYE") 2057 are calculated based on projections of the growth in assessed value of new development within the TIF Area and the consolidated tax rate that will apply in the TIF Area. Oregon Housing Needs Assessment 2025 Methodology 7 1 Report on Century TIF District Plan Table 3 shows the incremental assessed value, tax rates, and tax increment revenues each year, adjusted for discounts, delinquencies, and truncation loss.3 The incremental assessed value is the estimated assessed value based on real market value of the proposed project as determined by the Deschutes County Property Tax Estimator as provided by the applicant. The first year of tax increment collections is anticipated to be FYE 2026. Gross tax increment financing revenue (the column titled Gross TIF, in Table 3) is calculated by multiplying the tax rate times the excess value used. Excess value is the increased in assessed value over the frozen base. The tax rate is expressed per thousand dollars of assessed value, so the calculation is "tax rate times excess value used divided by one thousand." The column titled Net TIF Revenue in Table 3 also indicates the total Maximum Indebtedness proposed in this plan as referenced in Table 2, and represents the gross TIF, less expected discounts, to show the total amount of increment expected to be received by BURA in each year of the Plan. 3 In Oregon, when the full amount of the property tax bill is paid by November 15, the taxpayer gets a 3 percent discount. If the taxpayer pays two thirds of the tax by November 15, they get a 2 percent discount. 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N Vf +n Vl +n eR N V1 V? to V> in M 4A i/! 4n Vr C w t-SLnppN0p4 O M O h iIOI.0O�}OnW W d �a Nb pOw anl. MRMw Om N hM SS W NWko 006 fyi 06 0M IcD} SarHdrimO cohIDO � M aN0 HNM O n H�1ONInp2f ID C g m eo N d' n a N Ili 00 H a n O m n O v 00 . f Ili ai 00 N n N Ih N h N 06 eri 44 V! h OO 00 00 Ol al al O O d e-4 r1 H N N N M co M � It N Ul ID IQ h h 00 00 01 F. Ul in Vl sA Vl N V! iHn Vl VHT V1 iHn YH1 Vl V/ Vl VH V/ V1 N Vl V7 V/ Vl VT Vl Vl Vl W LO h W a1 Mn."1 N M N ID n W Ol O H N M e} h 40 h to al O H N m <f In u' n N N N N m M- M M M M M M a <f a a a a N m N Yl Hl N tin Ul O O O O O O O O D } LL 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 N N N N N N N N cY N N lV N N N N N (V N N N N N N N N N N N N N N F LY VI. THE ESTIMATED AMOUNT OF TAX INCREMENT REVENUES REQUIRED AND THE ANTICIPATED YEAR IN WHICH INDEBTEDNESS WILL BE RETIRED The maximum indebtedness is $49,613,485 (Forty Nine Million, Six Hundred and Thirteen Thousand, Four Hundred and Eight Five dollars). This is also the estimated total amount of tax increment revenues required to service the maximum indebtedness as no formal borrowings or interest payments are anticipated in the Plan. VII. THE ANTICIPATED COMPLETION DATE FOR EACH PROJECT The schedule for projects will be based on the availability of funding. The projects will be ongoing and will be completed as directed by the Agency. Annual expenditures for program administration are shown in Table 2. The Agency is anticipated to complete the projects and to terminate the Plan in FYE 2057, allowing up to two years for construction of the housing assisted by the Plan and 30 years of increment rebate and housing affordability, for a 32 year Plan duration. VIII. REVENUE SHARING Revenue sharing thresholds are not projected to be reached during the life of the Plan. Revenue sharing is defined in ORS 457.470 and requires that the impacted taxing jurisdictions receive a share of the incremental growth in the Plan Area when annual tax increment finance revenues exceed 10% and 12.5% of the original maximum indebtedness of the Plan. For this Plan, 10% equals $4,961,349. As shown in the column labeled Gross TIF in Table 3, neither threshold is projected to be reached during the life of the Plan. If either threshold is met, the Agency will comply with statutory requirements for revenue sharing. IX. IMPACT OF THE TAX INCREMENT FINANCING This section describes the impact of tax increment financing of the maximum indebtedness, both until and after the indebtedness is repaid, upon all entities levying taxes upon property in the TIF Area. The impact of tax increment financing on overlapping taxing districts consists primarily of the property tax revenues foregone on permanent rate levies as applied to the growth in assessed value in the TIF Area. These projections show the estimated tax revenues that would be received by the taxing districts if the development assisted by the Plan were to occur without the Plan. Table 4 and Table 5 shows impacts estimated through FYE 2057. The Bend -La Pine School District is not directly affected by the tax increment financing, but the amounts of their taxes divided for the Plan are shown in the following tables. Under current 10 1 Report on Century TIF District Plan school funding law, property tax revenues are combined with State School Fund revenues to achieve per -student funding targets. Under this system, property taxes foregone, due to the use of tax increment financing, are substantially replaced with State School Fund revenues, as determined by a funding formula at the state level. If new school aged students move into these units and attend the local schools, the funding through the State School Fund would increase. Table 4 and Table 5 show the projected impacts to permanent rate levies of taxing districts as a result of this Plan. Table 4 shows the general government levies, and Table 5 shows the education levies. 111 Report on Century TIF District Plan Table 4 - Proiected Impact on Taxing District Permanent Rate Levies - General Government FYE City of Bend Deschutes County County Library Countywide Law Enforcement County Extension 9-1-1 Bend Parks and Recreation Total 2026 $299 $137 $59 $133 $2 $39 $156 $825 2027 $608 $277 $119 $271 $5 $78 $317 $1,675 2028 $193,133 $88,062 $37,890 $86,113 $1,543 $24,924 $100,648 $532,314 2029 $227,370 $103,673 $44,606 $101,378 $1,817 $29,343 $118,490 $626,676 2030 $234,490 $106,920 $46,003 $104,552 $1,874 $30,262 $122,201 $646,302 2031 $241,824 $110,264 $47,442 $107,823 $1,932 $31,208 $126,023 $666,516 2032 $249,378 $113,708 $48,924 $111,191 $1,993 $32,183 $129,960 $687,336 2033 $257,159 $117,256 $50,450 $114,660 $2,055 $33,187 $134,014 $708,782 2034 $265,173 $120,910 $52,023 $118,233 $2,119 $34,221 $138,191 $730,870 2035 $273,428 $124,674 $53,642 $121,914 $2,185 $35,287 $142,493 $753,622 2036 $281,930 $128,551 $55,310 $125,705 $2,253 $36,384 $146,924 $777,055 2037 $290,688 $132,544 $57,028 $129,609 $2,323 $37,514 $151,487 $801,192 2038 $299,708 $136,656 $58,798 $133,631 $2,395 $38,678 $156,188 $826,053 2039 $308,998 $140,893 $60,620 $137,773 $2,469 $39,877 $161,030 $851,660 2040 $318,567 $145,256 $62,498 $142,040 $2,545 $41,112 $166,016 $878,035 2041 $328,424 $149,750 $64,431 $146,435 $2,624 $42,384 $171,153 $905,201 2042 $338,576 $154,379 $66,423 $150,961 $2,705 $43,694 $176,444 $933,182 2043 $349,033 $159,147 $68,474 $155,624 $2,789 $45,044 $181,893 $962,003 2044 $359,803 $164,058 $70,587 $160,426 $2,875 $46,434 $187,506 $991,688 2045 $370,896 $169,116 $72,764 $165,372 $2,963 $47,865 $193,287 $1,022,264 2046 $382,323 $174,326 $75,005 $170,467 $3,055 $49,340 $199,242 $1,053,757 2047 $394,092 $179,692 $77,314 $175,714 $3,149 $50,859 $205,375 $1,086,195 2048 $406,214 $185,220 $79,692 $181,119 $3,246 $52,423 $211,692 $1,119,606 2049 $418,700 $190,913 $82,142 $186,686 $3,345 $54,034 $218,199 $1,154,019 2050 $431,560 $196,777 $84,665 $192,420 $3,448 $55,694 $224,901 $1,189,465 2051 $444,806 $202,816 $87,264 $198,326 $3,554 $57,404 $231,804 $1,225,974 2052 $458,450 $209,037 $89,940 $204,410 $3,663 $59,164 $238,914 $1,263,579 2053 $472,503 $215,445 $92,697 $210,675 $3,775 $60,978 $246,237 $1,302,311 2054 $486,977 $222,045 $95,537 $217,129 $3,891 $62,846 $253,781 $1,342,206 2055 $501,886 $228,843 $98,462 $223,777 $4,010 $64,770 $261,550 $1,383,297 2056 $517,242 $235,845 $101,474 $230,623 $4,133 $66,752 $269,553 $1,425,621 2057 $533,059 $2430056 $104,577 $237,675 $4,259 $68,793 $277,795 $1,469,215 Total $10,637,298 $4,850,244 $2,086,861 $4,742,865 $84,992 $1,372,775 $5,543,461 J $29,318,496 Source: City of Bend 12 1 Report on Century TIF District Plan Table 5 - Projected Impact on Taxing District Permanent Rate Levies - Education FYE Send La -Pine School District Central Oregon cc High Desert ESD mm� Total 2026 $509 $66 $10 $585 2027 $1,033 $134 $21 $1,188 2028 $328,199 $42,739 $6,641 $377,580 2029 $386,379 $50,316 $7,818 $444,513 2030 $398,479 $51,891 $8,063 $458,433 2031 $410,942 $53,514 $8,315 $472,772 2032 $423,779 $55,186 $8,575 $487,540 2033 $437,001 $56,908 $8,843 $502,752 2034 $450,620 $58,681 $9,118 $518,419 2035 $464,647 $60,508 $9,402 $534,557 2036 $479,095 $62,390 $9,694 $551,179 2037 $493,977 $64,328 $9,995 $568,300 2038 $509,305 $66,324 $10,306 $585,934 2039 $525,093 $68,380 $10,625 $604,098 2040 $541,354 $70,497 $10,954 $622,806 2041 $558,104 $72,678 $11,293 $642,075 2042 $575,356 $74,925 $11,642 _ $661,923 2043 $593,125 $77,239 $12,002 $682,366 2044 $611,428 $79,623 $12,372 $703,422 2045 $630,279 $82,077 $12,753 $725,110 2046 $649,696 $84,606 $13,146 $747,449 2047 $669,696 $87,210 $13,551 $770,458 2048 $690,296 M$89,893 $13,968 $794,157 2049 $711,513 $92,656 $14,397 $818,567 2050 $733,367 $95,502 $14,839 _ $843,709 2051 $755,877 $98,433 $15,295 $869,606 2052 $779,062 $101,453 $15,764 $896,279 2053 $802,943 $104,562 $16,247 $923,753 2054 $827,540 $107,766 $16,745 $952,051 2055 $852,875 $111,065 $17,258 _ $981,197m T 2056 $878,970 $114,463 $17,786 $1,011,219 2057 $905,848 $117,963 $18,330 $1,042,140 Total �$18,076,387 $2,353,979 $365,770 $20,796,136 Source: City of Bend Please refer to the explanation of the schools funding in the preceding section 13 1 Report on Century TIF District Plan Error! Not a valid bookmark self -reference. shows the projected increased revenue to the taxing jurisdictions after termination of the Plan and tax increment collection by BURR is terminated. These projections are for HE 2058. The frozen base is the assessed value of the Plan Area established by the County Assessor at the time the Plan is established. Excess value is the increased assessed value in the Plan Area above the frozen base. Table 6 - Additional Revenues Obtained after Termination of Tax Increment Financing in FYE 2058 (Year after Termination) From From Taxing District Increment Value Frozen Base Value Total General Government City of Bend $549,050 $9,980 $559,030 Deschutes County $250,348 $4,550 $254,899 County Library $107,715 $1,958 $109,672 Countywide Law Enforcement $244,806 $4,450 $249,255 County Extension $4,387 $80 $4,467 9-1-1 $70,857 $1,288 $72,144 BPRD $286,129 $5,201 $291,330 Subtotal $1,513,291 $27,506 $1,540,797 Education Bend La -Pine School District $933,023 $16,959 $949,982 COCC $121,502 $2,208 $123,710 High Desert ESD $18,879 $343 $19,223 Subtotal $1,073,405 $19,510 $1,092,915 Total $2,586,696 $47,016 $2,633,712 Source: City of Bend 14 1 Report on Century TIF District Plan X. COMPLIANCE WITH STATUTORY LIMITS ON ASSESSED VALUE AND SIZE OF TIF/URBAN RENEWAL AREAS State law limits the percentage of both a municipality's total assessed value and the total land area that can be contained in an TIF area at the time of its establishment to 15% for municipalities over 50,000 in population. As noted below, the frozen base of the Century TIF Area (using assumed FYE 2025 values) is projected to be $3,559,680. The total assessed value of properties in the City is $16,125,929,179. The increment of the City's existing TIF areas is $833,743,768. To get the total percentage of assessed value in TIF areas, divide the total assessed value of the City minus the increment of the TIF areas by the frozen base values of the urban renewal areas. Table 7 shows that in Bend, 3.35% of the City's assessed value is located in TIF areas, which is below the 15% threshold. The City is considering adopting three new TIF areas in May 2025. Table 7a shows that if all areas proposed for adoption in May 2025 are created, total TIF areas in the City are below the 15% threshold. Table 7- Assessed Value Statutory Limit Verification Send Urban Renewal Areas Frozen Base Increment Juniper Ridge $13,752,568 $157,422,963 Murphy Crossing $72,685,192 $65,530,594 Core Area $443,857,101 $80,495,350 Century $3,559,680 TOTAL: $533,854,541 $303,448,907 Calculation A. City of Bend Total AV $16,125,929,719 B. Total Frozen Base of URAs $533,854,541 C. Total Increment of URAs $303,448,907 D. Frozen Base as % of City AV: B/(A-C) 3.37% Source: City of Bend and Deschutes County Assessor, SAL 4c (FYE 2025) AV — assessed value Frozen base — assessed value the urban renewal area at the time it is established Increment — increased assessed value over the frozen bas URA —urban renewal area Table 7a — Assessed Value Statutory Limit Verification —Proposed Districts (May 2025) Bend Urban Renewal Areas Frozen Base Increment Juniper Ridge $13,752,568 Murphy Crossing $72,685,192 Core Area $443,857,101 Veridian * $0 Britta Ridge* $269,110 $157,422,963 $65,530,594 $80,495,350 15 1 Report on Century TIF District Plan Century* $3,559,680 TOTAL: $534,123,651 $303,448,907 Calculation A. City of Bend Total AV $16,125,929,719 B. Total Frozen Base of LIRAS $534,123,651 C. Total Increment of URAs $303,448,907 D. Frozen Base as % of City AV: BJ(A-C) * Other recommended Plan Areas 3.38% Source: City of Bend and Deschutes County Assessor, SAL 4c (FYE 2025) AV —assessed value Frozen base — assessed value the urban renewal area at the time it is established Increment — Increased assessed value over the frozen bas URA —urban renewal area The Century TIF Area contains 9.2 acres. There are 1,640.12 acres in other TIF areas in the City. The City contains 21,315.8 acres. 7.71% of the City's acreage is located in TIF areas, which is below the 15% threshold. The City is considering adopting three new TIF areas in May 2025. Table 8a shows that if all areas proposed for adoption in May 2025 are created, total TIF areas in the City are below the 15%threshold. Table 8- Acreage Statutory Limit Verification Bend Urban Renewal Areas Acreage Juniper Ridge 721.95 Murphy Crossing 275.15 Core Area 637.16 Century 9.2 Total 1,643.46 City of Bend 21,315.80 URA as % of City of Bend 7.71% Source: City of Bend Table 8a — Acreage Statutory Limit Verification — Proposed Districts (May 2025) Bend Urban Renewal Areas Acreage Juniper Ridge 721.95 Murphy Crossing 275.15 Core Area 637.16 Veridian 2.81 Britta Ridge* 6.16 Century* 9.20 16 1 Report on Century TIF District Plan Total 1,652.43 City of Bend 21,315.80 URA as % of City of Bend 7.75% XI. EXISTING PHYSICAL, SOCIAL, AND ECONOMIC CONDITIONS AND IMPACTS ON MUNICIPAL SERVICES This section of the Report describes existing conditions within the Plan Area Area and documents the occurrence of "blighted areas," as defined by ORS 457.010(1). A. Physical Conditions Land Use The Plan Area measures 9.2 total acres in size. The present land use is vacant, privately owned property and adjacent rights -of -way. 2. Zoning and Comprehensive Plan Designations The Area is zoned Mixed Use Urban (MU) and designated Mixed Employment (ME) in the Comprehensive Plan. 3. Topography The Plan Area is in irregular shape and has substantial topographical and geological issues. has varying topography with elevation changes up to 25 feet. The area has varying topography with elevation changes over 25 feet on the west and southside with a seismic fault line on the west side of the Plan Area. The area will require significant strategic placement of developed structures, seismic modifications, and site design and mitigation so the area can be developed in accordance with the City of Bend Development Code. 8. Infrastructure This section identifies the existing conditions in the Plan Area to assist in establishing blight in the ordinance adopting the Plan. This does not mean that all of these projects are included as projects to be undertaken in the Plan. The specific projects that are included in the Plan are listed in Section II of this Report. 1. Transportation The Plan Area boarders SW Century Drive (a minor arterial without on street -parking) to the Northwest, SW Mt. Bachelor Drive (a local street with on -street parking), and SW Reed Market Road (a minor arterial without on -street parking) to the south. The area's transportation and rights -of -way are general constructed in conformance with City Standards. The housing developments assisted under the Plan will be required to bring 17 1 Report on Century TIF District Plan existing rights -of -way into conformance with City Standards. Additional connections will be required on the east side of the Plan area for access to SW Colorado Road. There is presently no interior transportation system that provides multimodal access SW Mt. Bachelor Drive to access the eastern, south-eastern, and north-eastern plan area. 2. Other Utilities Water, sewer, and storm infrastructure are available and are adequate to serve the sites in the Plan Area or will be required to be improved with development. There is a 10-inch gravity sewer main located in Mt. Bachelor Drive to the east, a 16-inch water main in SW Reed Market Road, and a 12-inch water main in SW Mt. Bachelor Drive. Part of this 12-inch water main lies within the northeast portion of the subject property in a City water easement. A portion of the plan Area is not currently served with City of Bend Sewer. New sewer and water laterals must be installed to serve new development in conformance with City of Bend Standards and Specifications, pursuant to City of Bend approved land use permits for development. C. Social Conditions The Plan Area has no existing residents. The City of Bend needs an additional 8,500 residential units across all income ranges by 2030s to accommodate the underproduction for existing need and 15,000 new residents.6 Building more housing units with emphasis on encouraging more affordable housing options are high priorities within the City according to both community statements and City Council 2023-2025 Goals. The Plan Area is in Block Group 2 in Census Tract 14.02 in the City of Bend. Tables 9-13 show the social conditions for this block group. Table 9 — Race in the Block Group 2 Race Number Percent White alone 737 93% Black or African American alone 0 0% American Indian and Alaska Native alone 0 0% Asian alone 24 3% Native Hawaiian and Other Pacific Islander alone 0 0% Some other race alone 0 0% Two or more races 28 4% TOTAL 789 100% Source: American Community Survey 2023 5 year Estimates Oregon Housing Needs Analysis, 2025 r. Portland State University, Population Projects 2030 18 1 Report on Century TIF District Plan Table 10 — Age in the Block Group 2 Age Number Percent Under 5 years 5 to 9 years 10 to 14 years 15 to 17 years 18 to 24 years 25 to 34 years 20 2% 17 2% 36 4% 6 1% 102 12% 175 21% 35 to 44 years 91 11% 45 to 54 years 95 11% 55 to 64 years 129 16% 65 to 74 years 105 13% 75 to 84 years 52 6% 85 years and over 0 0% TOTAL 828 100% Source: American Community Survey 2023 5-year Estimates Table 11— Educational Attainment for Population 25 years and Over in the Block Group 2 Educational Attainment Number Percent Less than high school 8 1% High school graduate (includes equivalency) 36 6% Some college 143 22% Associate's degree 26 4% Bachelor's degree 265 41% Master's degree 128 20% Professional school degree 12 2% Doctorate degree 29 4% TOTAL 647 100% Source: American Community Survey 2023 5-year Estimates Table 12 - Travel Time to Work in the Block Group 2 Travel Time Number Percent Less than 10 minutes 65 18% 10 to 19 minutes 144 39% 20 to 29 minutes 62 17% 30 to 34 minutes 97 26% 35 to 59 minutes 0 0% 60 or more minutes 0 0% TOTAL 368 100% Source: American Community Survey 2023 5-year Estimates 19 1 Report on Century TIF District Plan Table 13 — Means of Transportation to Work in the Block Group 2 Means of Transportation Number Percent Drove alone 301 61% Carpooling 0 0% Using Public Transportation 0 0% Bicycling 0 0% Walking 67 14% Working at home 123 25% TOTAL 491 100% Source: American Community Survey 2023 5 year Estimates D. Economic Conditions 1. Taxable Value of Property within the Plan Area The estimated total assessed value from the Deschutes County Department of Assessment and Taxation for FYE 2025 is $3,559,680. The Area is zoned Mixed Use Urban (MU) and is presently vacant. With consistent lack of development due to significant topography and geological issues, the proposed area has diminished taxable value reducing overall tax receipts in comparison to adjacent areas thereby not contributing its fair share to the overall tax base of the City. The result is stagnant and unproductive reducing taxable values $3.5 million less per acre than adjacent parcels. E. impact on Municipal Services The fiscal impact of tax increment financing on taxing districts that levy taxes within the Plan Area (affected taxing districts) is described in Section VII of this Report. This subsection discusses the fiscal impacts resulting from potential increases in demand for municipal services. The projects in the Plan are for development assistance to assist in the development of housing units in the Area and administration of this Plan. The development to be supported by the Projects of this Plan are for a multi -unit housing development and associated site improvements at 1081 SW Mt Bachelor Drive, approved by the City of fiend under application number PLSPR20211160, and a project consisting of two buildings for residential / mixed -use development on two tax lots and associated site improvements, approved by the City of Bend under application number PLSPR20230367. The Area is within the City limits, the approved development is consistent with the Comprehensive Plan and zoning designations, and the City has anticipated the need to provide services to the Area. As the development will be new construction, it will be constructed to current building codes, which will aid in the needs for fire protection and lessen the burden on fire response. 20 1 Report on Century TIF District Plan The financial impacts from tax increment collections will be countered by housing production and, in the future, adding future increased increases in assessed value to the tax bases for all taxing jurisdictions, including the City. XI1. REASONS FOR SELECTION OF EACH PLAN AREA IN THE PLAN The reason for selecting the Plan Area is to fund development assistance necessary to cure blight within the Plan Area. The development assistance will support providing more market rate and workforce affordable housing units as identified in Bend's Housing Needs Analysis and the Oregon Housing Needs Assessment 2025 Methodology, contributing to the health, safety and welfare of Bend residents. The Plan Area is vacant, does not have adequate development of streets and other rights of way or utilities, and has not been developed commensurate with surrounding lands. XIII. RELOCATION REPORT There is no relocation report required for the Plan. No specific acquisitions that would result in relocation benefits have been identified. However, if property is acquired that requires relocation, the Agency will comply with applicable relocation requirements. 211 Report on Century TIF District Plan Veridian Tax Increment Finance Plan DRAFT FOR PUBLIC COMMENT AND REVIEW NOT ADOPTED CITY OF BEND BUILDING ON OUR PAST SERVING THE PRESENT S14APING BEND'S FUTURE LIST OF PARTICIPANTS Mayor Melanie Kebler Mayor Pro tern Megan Perkins City Council Gina Franzosa Ariel Mendez Mike Riley Megan Norris Steve Platt Planning Commission Margo Clinton, Chair Scott Winters, Vice -Chair Bob Gressens Suzanne Johannsen John LaMotte Erin Ludden Nathan Nelson City Manager Eric King City Finance Director Samantha Nelson City Attorney Ian Leitheiser Senior Assistant City Attorney Elizabeth Oshel Real Estate Director Matt Stuart Urban Renewal Manager Jonathan Taylor Planning Manager Ren6e Brooke Housing Manager Racheal Baker Bend Urban Renewal Agency Mike Riley, Chair Gina Franzosa, Vice -Chair Ariel Mendez Megan Noris Steve Platt Melanie Kebler Megan Perkins Core Area Advisory Board Corie Harlan, Chair Dale VanValkenburg, Vice -Chair Dawn Cofer Hank Kamakaala James Teeter Jeff Baker John Fischer John Heylin Katherine Austin Bend Economic Development Advisory Board Gary North, Chair DaWayne Judd, Vice -Chair Briana Manfrass Jenn Lynch Jlllian Taylor Mark Kroncke Petra Oroslanova Ryan Andrews Tierney Booker Affordable Housing Advisory Committee Mandy Dalrymple Alison Hohengarten Ian Karasz Tony Levison Isabel Mikovich Richard Reese Helen Silfven Heather Simmons Geoff Wall TABLE OF CONTENTS I. DEFINITIONS II. INTRODUCTION III. MAXIMUM INDEBTEDNESS IV. PLAN GOALS V. TIF AREA PROJECT CATEGORIES VI. TIF AREA PROJECTS VII, AMENDMENTS TO PLAN Vlll. PROPERTY ACQUISITION AND DISPOSITION IX. RELOCATION METHODS X. TAX INCREMENT FINANCING OF PLAN XI. ANNUAL REPORT XII. RELATIONSHIP TO LOCAL OBJECTIVES XIII. PLAN AREA LEGAL DESCRIPTION 4 6 8 9 11 11 11 12 12 13 13 13 18 I. DEFINITIONS "Agency" or "BURA" means the Bend Urban Renewal Agency. The Agency is responsible for administration of this Britta Ridge TIF Plan and other TIF plans previously adopted in the City of Bend. "Annual report" is the report required by ORS 457.460 that is filed with the City of Bend and distributed to the taxing districts. "Area" or "TIF Area" or "Plan Area" means the tax increment finance area established for this Plan pursuant to ORS chapter 457, and described in Section XIII of the Plan, below, including the properties and rights -of -way located therein. "Area Median Income" or "AMI" means the area median income as determined by the most recent United States Department of Housing and Urban Development for the Bend Metropolitan Statistical Area at the time of the household's application for housing. "Blight" is defined in ORS 457.010(1)(a-i) and identified in the ordinance adopting a TIF plan. "Board of Commissioners" means the Deschutes County Board of Commissioners. "City" means the City of Bend, Oregon. "City Council" or "Council" means the Bend City Council. "Comprehensive Plan" means the City of Bend Comprehensive Plan and its implementing ordinances, policies, and standards. "County" means Deschutes County, Oregon. "Fiscal year" or "FYE" means the year commencing on July 1 and closing on June 30. "Frozen base" means the total assessed value including all real, personal, manufactured, and utility values within a TIF area at the time of adoption. The county assessor certifies the assessed value after the adoption of a TIF area plan. "Increment" means that part of the assessed value of a taxing district attributable to any increase in the assessed value of the property located in an urban renewal area, or portion thereof, over the assessed value specified in the certified statement from the assessor (frozen base). "Maximum indebtedness" means the amount of the principal of indebtedness included in a plan pursuant to ORS 457.190 and does not include indebtedness incurred to refund or refinance existing indebtedness. The maximum indebtedness for this Plan is $8,782,431, "More Affordable Housing" is housing that is rented at rates equal to or less than 30% of household income to households earning 90% of area median income (AMI) or less. It assumes housing is available to residents at a range of incomes, at or below 90 percent of AMI. "Municipality" means any county or any city in the state of Oregon. "ORS" means the Oregon Revised Statutes and specifically Chapter 457, which relates to urban renewal. 4 1 Veridian Tax Increment Finance Plan "Plan" or "Veridian Ridge TIF Plan" or "TIF Plan" means the adopted plan for the TIF Area pursuant to ORS chapter 457. "Planning Commission" means the Bend Planning Commission. "Policy" means the Policy for Tax Increment Assistance for Housing Affordability and Employment Growth adopted by BURA Resolution No. 158 on October 16, 2024. "Policy Justification" means a document with an analysis of the local housing and employment market for the City of Bend used to establish policy parameters for the Tax Increment Assistance for Housing Affordability and Employment Growth. "Project(s)" or "TIF Project(s)" means any work or undertaking carried out under the Britta Ridge TIF Plan. "Report Accompanying Veridian TIF Plan" or "Report" means the official report that accompanies the Veridian TIF Plan pursuant to ORS 457,087. "Revenue sharing" means sharing tax increment proceeds as defined in ORS 457.470. "Tax increment" means that part of the assessed value of a taxing district attributable to any increase in the assessed value of the property located in an urban renewal area, or portion thereof, over the assessed value specified in the certified statement. "Tax increment finance area" or "TIF area" means a blighted area included in a TIF plan. "Tax increment finance area plan" or "TIF plan" means a plan, as it exists or is changed or modified from time to time, for one or more TIF areas, as provided in ORS 457. "Tax increment finance area project(s)" or "TIF area project(s)" or "project(s)" means any work or undertaking carried out under ORS 457.170 and ORS 457.180 in a TIF area. "Tax increment finance area report" or "report" means the official report that accompanies the TIF plan pursuant to ORS 457.087. "Tax increment finance" or "tax increment financing" or "TIF" means the funds that are associated with the division of taxes accomplished through the adoption of a TIF plan. "Tax increment revenues" means the funds allocated by the assessor to renewal TIF area due to increases in assessed value over the frozen base within the area. "UGB" means urban growth boundary. "Urban Renewal" means the statutory authority provided in ORS 457. In this Plan it is synonymous with TIF. Note on language: This Plan, wherever applicable and permissible, uses the term Tax Increment Finance or TIF rather than "urban renewal". The term TIF is used consistently in other parts of the nation and does not evoke past practices of other urban renewal agencies throughout the country wherein minorities and vulnerable populations were displaced to clear the way for redevelopment. This Plan aims to avoid those connotations and has been created with intention to avoid those outcomes. Utilizing the term TIF does not affect the statutory authority of ORS 457, as it relates to this Plan. 5 I Veridian Tax Increment Finance Plan II. INTRODUCTION This Veridian TIF Plan was developed for the Bend City Council based on the Policy for Tax Increment Assistance for Housing Affordability and Employment Growth adopted by BURA Resolution No. 158 on October 16, 2024, to support the development of new multi -unit housing with minimum numbers of more affordable units by providing development assistance in existing or through the creation of new TIF areas. The Policy was developed with input from BURA and the City advisory bodies — Core Area Advisory Board, Bend Economic Development Advisory Board, and the Affordable Housing Advisory Committee. This Plan was developed with public input at BURA meetings, a Planning Commission meeting, and meetings of the Bend City Council. This Plan will go into effect following adoption by the City Council. A. Background The Bend Urban Renewal Agency's Policy Justification for the Policy noted: Bend has a very low residential vacancy rate and many households are spending more than 30% of their household income on housing costs. An average individual/household would need to make $72,000 to not be cost burden to afford current market rent. Currently, 81% of occupations in the Bend Redmond MSA cannot adequately support market rate rent on a single income. Those making $43,000 or less account for nearly 50% of total employment. The number of Bend households that cannot adequately afford market rate rent is 45%.' Providing incentives for housing affordability starting at 90% area median income for multi- unit rental units, with additional incentives for developments meeting certain energy efficiency and supplier diversity criteria, will assist in meeting the City of Bend's affordable housing and other Council goals. The City of Bend currently incentivizes housing affordable to households making 60% and 80% AMI or less through its Non -Profit and Qualifying Rental Property Tax Exemptions. This Plan and Projects incentivize creation of additional units of market rate housing integrated with units that are affordable to households making 90% AMI or less. ORS chapter 457 allows for the use of tax increment revenues, a financing source that is unique to TIF areas, to fund projects within a specific boundary. Tax increment revenues - the amount of property taxes generated by the increase in total assessed values within a TIF area from the time an area is first established - are used to repay borrowed funds or meet contractual obligations. The borrowed funds and contractual obligations fund projects within an area that meet the goals of the plan and cannot exceed the maximum indebtedness amount set by a TIF plan. The purpose of a TIF area is to improve specific areas of a municipality that are poorly developed or underdeveloped, called blighted areas in ORS chapter 457. These areas can ' Bend Urban Renewal Policy Justification for the Tax Increment Assistance for Housing Affordability and Employment Growth, presented on August 7, 2024 6 1 Veridian Tax Increment Finance Plan have property that is undeveloped or underdeveloped, old or deteriorated buildings, streets and utilities in poor condition, a complete lack of streets and utilities altogether, or other obstacles to development. In general, TIF area projects funded with tax increment can include construction or improvement of streets, utilities, and other public facilities, assistance for development, rehabilitation or redevelopment of property, and improvements to public spaces. The Bend Urban Renewal Agency's Policy allows the creation of TIF areas consisting of a single or small number of tax lots in the City currently not included in an existing tax increment area to support construction of new housing that includes More Affordable Housing, for households earning 90% AM or less. The development assistance for the project in the new TIF area may consist of a rebate of a portion of the tax increment to the property owner in exchange for making a minimum percentage of units available to households earning 90% AM or less at rents affordable to those households, and agreeing to limit annual rent increases to lower than the maximum rental increases allowed under ORS 90.323for those rent restricted units. The actual rebate amount and number of affordable units in the development will be set in an agreement between BURA and the property owner and based on the Policy for Tax Increment Assistance for Housing Affordability and Employment Growth, consistent with the provisions of this Plan. This Plan will support the development of housing that includes More Affordable Units and the other requirements of the Policy, in an area known as Veridian, shown in Figure 1. The Plan reflects input from the community received at public meetings at the Agency and hearings before the Planning Commission and the City Council. The Plan is anticipated to last 30 years, resulting in 30 years of tax increment collection. The Plan is to be administered by the Agency. Substantial amendments to the Plan must be approved by City Council as outlined in Section VII of this Plan. All amendments to the Plan are to be listed numerically on the inside over of the front page of the Plan and then incorporated into the Plan, document and noted by footnote with an amendment number and adoption date. The relationship between the sections of the Plan and the ORS 457.085 requirements is shown in Table 1. The specific reference in the table below is the section of this Plan that primarily addresses the statutory reference. There may be other sections of the Plan that also address the noted statute. Table 1- Statutory References Statutory Requirement Plan Section ORS 457.085(2)(a) V, VI ORS 457.085(2)(b) V, VI XIIL ORS 457.085(2)(c) ORS 457.085(2)(d) - XII� XI ORS 457.085(2)(e) 7 1 Veridian Tax Increment Finance Plan ORS 457.085(2)(f) IX ORS 457.085(2)(9) Vill ORS 457.085(2)(h) III ORS 457.085(2)(1) FIVII B. TIF Area Overview The Veridian TIF Plan Area shown in Figure 1, consists of approximately 2.81 total acres. This TIF Area meets the definition of a blighted area due to undeveloped status resulting in the unproductive land that is potentially useful and valuable for contributing to the public health, safety, and welfare as the location of new housing units, and impaired investments. These blight conditions are specifically cited in the ordnance adopting the Plan and described in detail in the Report. The Report contains the information required by ORS 457.087, including: • A description of the physical, social, and economic conditions in the area; • The expected impact of the Plan, including fiscal impact in light of increased services; • Reasons for selection of the Area; • The relationship between each Project to be undertaken and the existing conditions; • The estimated total cost of each Project and the source(s) of funds to pay such costs; • The estimated completion date of each Project; • The estimated amount of funds required in the Area and the anticipated year in which the debt will be retired; • A financial analysis of the Plan; • A fiscal impact statement that estimates the impact of tax increment financing upon all entities levying taxes upon property in the Area; and • A relocation report. III. MAXIMUM INDEBTEDNESS Maximum Indebtedness is a legal term for the total amount of money that can be spent on projects, programs, and administration throughout the life of 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 $8,782,431(Eight Million Seven Hundred and Eighty Two Thousand, Four Hundred and Thirty One Dollars).This amount is the principal of such indebtedness and does not include interest or 8 1 Veridian Tax Increment Finance Plan indebtedness incurred to refund or refinance existing indebtedness, or interest earned on bond proceeds. The projects under this plan are not anticipated to be financed through bonds, but primarily through rebate of property taxes paid. IV. PLAN GOALS The goals of the Plan represent its basic intent and purpose. The TIF Projects identified in Sections V and VI of the Plan are specific means of meeting the goals. The goals will be pursued as economically as is feasible and at the discretion of the Agency. A. Housing Development To increase the supply of housing by providing financial incentives for the development of housing in the City of Bend. B. Encourage More Affordable Housing To increase the supply of more affordable housing options by providing financial incentives for the development of more affordable housing in the City of Bend. C. Encourage Energy Efficiency Housing To increase the number of energy -efficient certified housing projects by providing financial incentives for the utilization of energy efficiency standards in the construction of housing projects that lower overall housing costs for households and reduce carbon emissions. D. Administration. To provide administrative support for the implementation of the Plan. 9 1 Veridian Tax increment Finance Plan Figure 1— Veridian TIF Area Boundary PROPOSED URBAN RENEWAL AREA N D AUrban ftrkwal Area Roads ° Cal CITY OF BEND Tax Lotsp�er, FYf! Oke, �LLT f0.307f •w Wn n b a�bn o, e.,no W � N Source: City of Bend 10 1 Veridian Tax Increment Finance Plan V. TIF AREA PROJECT CATEGORIES To support the Plan Goals described in the previous section, the Projects within the Area fall into the following categories: A. Housing Development and Development Incentives, Partnership, and Support B. Plan Administration, Implementation, Reporting, and Support VI. TIF AREA PROJECTS The Projects authorized by the Plan are: A. Housing Development and Development Assistance, Partnership, and Support This Project will provide incentives for the development of housing units and More Affordable Housing in the Plan Area. The development to be supported by this Project is a multi -unit apartment complex in the Area approved by the City of Bend under application number PLSPR20220819, as it may be modified, consistent with the goals of this Plan. Incentives may be in the form of either an annual tax increment reimbursement payment over a specified period and/or payment of City development fees associated with the proposed development project (i.e., system development charges) ("Assistance"). The form of Assistance for the Project will be determined through a development agreement with the developer of the housing that stipulates the amount and timing of the development and the amount and timing of the incentive. BURA staff will conduct pre -development meetings with a developer of property within the Area to identify the financing needs of the site. Staff will recommend a financing package not to exceed the maximum indebtedness to the Agency that will contain recommendations on the appropriate length of incentive through negotiations with the developer for the development of the housing units. A development agreement, approved by the Agency will set out the method of providing the Assistance to the eligible project and a commitment by the developer owner for providing the required More Affordable Units. A guideline for the amount of Assistance is provided in the Report accompanying the Plan. B. Plan Administration, Implementation, Reporting, and Support The Agency may provide administration of the Plan including but not limited to staff support, legal counsel assistance, review of annual payments, financial statements, budget preparation, and annual reports pursuant to ORS 457.460. VII. AMENDMENTS TO PLAN The Plan may be amended as described in this section. 111 Veridian Tax Increment Finance Plan A. Substantial Amendments Substantial Amendments, in accordance with ORS 457.085(2)(i), shall require the same notice, hearing, and approval procedure required of the original Plan under ORS 457.095, including public involvement, consultation with taxing districts, presentation to BURA, the Planning Commission, and adoption by the City Council by non - emergency ordinance after a hearing. Notice of such hearing shall be provided to individuals or households within the City, as required by ORS 457.120. Substantial Amendments shall be processed in accordance with ORS 457.095 and 457.220. Substantial Amendments are amendments that: 1. Add land to the Area, representing more than 1% of the existing area of the Area; z or 2. Increase the maximum amount of indebtedness that can be issued or incurred under the Plan. B. Minor Amendments Minor Amendments are amendments that are not Substantial Amendments as defined in this Plan and in ORS chapter 457. Minor Amendments require approval by BURA by resolution. The projects proposed in the Plan and Report are organized by project categories. If BURA determines that the allocation of funds within a project category should be adjusted based on needs within the Area, they may do so through a Minor Amendment.3 VIII. PROPERTY ACQUISITION AND DISPOSITION Property acquisition and disposition are not eligible activities under the Plan. IX. RELOCATION METHODS There are no persons living in or business situated in the Plan Area, therefore relocation is not part of this Plan. 2 Unless otherwise permitted by state law, no land equal to more than 20 percent of the total land area of the original Plan shall be added to the urban renewal area by amendments, and the aggregate amount of all amendments increasing the maximum indebtedness may not exceed 20 percent of the Plan's initial maximum indebtedness, as adjusted, as provided by law, with increases beyond that amount requiring concurrence as stated in ORS 457. 3 Project costs may be impacted by grants, timing, cost savings, inflation, or other external forces unanticipated at this time but which may occur over the 32-year life of this Area. 12 1 Veridian Tax Increment Finance Plan X. TAX INCREMENT FINANCING OF PLAN Tax increment financing consists of using annual tax increment revenues to make payments on debt, usually in the form of bank loans or revenue bonds, or contractual obligations for TIF projects under a TIF plan. Tax increment revenues are the revenue received from increases in property taxes based on the increase in assessed value within a TIF area over the total assessed value from the time a plan is adopted. Increment does not include property taxes levied to pay for General Obligation (GO) bonds and local option levies. A. General description of the proposed financing method The Plan will be financed using tax increment revenues. Revenues obtained by the Agency will be used to pay or repay the costs, expenses, advancements, and indebtedness incurred in planning and undertaking project activities, and otherwise exercising any of the powers granted by ORS Chapter 457 in connection with the planning and implementation of this Plan, including preparation of the Plan. No bonds will be issued to finance the activities in the Plan. B. Tax increment financing The Plan may be financed, in whole or in part, by tax increment revenues allocated to BURA, 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 pursuant to ORS 457.440 shall be deposited into the unsegregated tax collections account and distributed to BURA based upon the distribution schedule established under ORS 311.390. Should a court of competent jurisdiction find any work, clause, sentence, section or part of this Plan to be invalid, the remaining words, clauses, sentences, sections or parts shall be unaffected by such findings and shall remain in full force and effect for the duration of this Plan. XI. ANNUAL REPORT BURA shall file an Annual Report in compliance with ORS 457.460. XII. RELATIONSHIP TO LOCAL OBJECTIVES ORS 457.085 requires that the Plan describe the relationship of the plan to definite local objectives regarding appropriate land uses and improved traffic, public transportation, public utilities, telecommunications utilities, recreational and community facilities and other public improvements. This section provides that analysis. Relevant local planning and development objectives are set out in the Bend Comprehensive Plan, Bend Economic Development Advisory Board Strategic Plan, and the Bend Development Code. This section describes the purpose and 13 1 Veridian Tax Increment Finance Plan intent of these plans, the main applicable goals and policies within each plan, and an explanation of how this Plan conforms to the applicable goals and policies. The numbering of the goals and policies within this section reflects the numbering that occurs in the original document. The language from the original document is in italics. All of the land in the Area is designated High Density Residential in the Comprehensive Plan, and zoned High Density Residential (RH) in the Bend Development Code. Allowed land uses, maximum densities, and building requirements for all land in the Area are governed by the Bend Development Code, as described in subsection C of this Section XIII. A. Bend Comprehensive Plan The analysis of how the Plan conforms to the Comprehensive Plan covers the most relevant sections, but may not cover every section of the Comprehensive Plan that relates to the Plan. If the Comprehensive Plan policies identified in the Plan are updated in the future, this document will automatically incorporate those updates without the Plan having to be formally amended. If a Substantial Amendment is completed in the future, this section of the Plan should be updated at that point. Below are applicable Comprehensive Plan policies and statements of how the Plan conforms to these Comprehensive Plan policies. Chapter 1 Citizen Involvement Policies 1-4 The City and special districts shall work toward the most efficient and economical method for providing their services within the UGB. 1-7 The City will encourage compact development and the integration of land uses within the Urban Growth Boundary to reduce trips, vehicle miles traveled, and facilitate non - automobile travel. 1-15 The City shall continue to use advisory committees in their planning process, members of which are selected by an open process, and who are widely representative of the community. 1-16 The City will use other mechanisms, such as, but not limited to, meetings with neighborhood groups, planning commission hearings, design workshops, and public forums, to provide an opportunity for all the citizens of the area to participate in the planning process. Finding: The Plan conforms to Chapter 1 Citizen Involvement as there has been extensive citizen involvement in the preparation of the Plan and all related BURA policies. The Plan and Project support compact development within the Urban Growth Boundary by supporting residential development in the High Density Residential (RH) zone, near residential and 14 1 Veridian Tax Increment Finance Plan commercial uses. The identified Project supports infill development on currently undeveloped lots within a generally developed area. Over twenty-five opportunities for public involvement were provided in the course of development of the Policy supporting this Plan. In this process, the Bend Economic Development Advisory Board, the Affordable Housing Advisory Committee, Core Area Advisory Board, the Bend Chamber of Commerce, Economic Development of Central Oregon, and a round table of housing developers provided input on development of the Policy supported by this Plan. Specific to public involvement in this Plan, BURA, the Planning Commission, and the City Council all held public meetings regarding this Plan, at which public comment was accepted, prior to the adoption of this TIF Plan and Report. Chapter 5 Housing Policies 5-7 The City will continue to create incentives for and remove barriers to development of a variety of housing types in all residential zones, consistent with the density ranges and housing types allowed in the zones. This policy is intended to implement the City's obligation under the State Housing Goal to "encourage the availability of adequate numbers of needed housing units at price ranges and rent levels which are commensurate with the financial capabilities of Oregon households and allow for flexibility of housing location, type, and density". 5-18 The City will assist in identifying, obtaining and leveraging funding sources for the development of new housing for very low, low, and moderate - income residents, as determined by appropriate percentages of Area Median Family income in the Housing Needs Assessment. 5-31 Residential areas will offer a wide variety of housing types in locations best suited to a range of housing types, needs and preferences. 5-38 Medium -and high -density residential developments should have good access to transit, K- 12 public schools where possible, commercial services, employment and public open space to provide the maximum access to the highest concentrations of population. Policy 5-20 defines affordable, in the case of dwelling units offered for rent, as housing for which the rent and utilities constitute no more than 30 percent of such gross annual household income for a family at 60% of the area median income, based upon most recent HUD Income Limits for the Bend MSA. Policy 5-20 provides that other programs or policies can specify other levels of affordability. Finding: The Plan conforms to Chapter 5 Housing as the Housing Development and Development Assistance, Partnership, and Support Project will encourage the development of housing for households earning 90% AMI or less, along with market rate units, meeting housing needs identified in the Oregon Housing Needs 2025 Methodology for the Bend UGB, supporting the goals of the Comprehensive Plan and Policy 5-20 to provide affordability at additional income levels. The Area has access to transit, K-12 public schools, commercial services, 15 1 Veridian Tax Increment Finance Plan employment, and public open space. The Area is adjacent to a higher education institution, Central Oregon Community College, near K-12 public schools and public parks, and is in a High Density Residential (RH) zone. The surrounding properties are zoned Standard Density Residential, developed with single -unit homes, RH, developed with a large church facility and associated improvements, and Public Facilities, developed with a higher education institution. The Area is .5 miles from an area zoned and developed with industrial, commercial, and mixed employment uses. Chapter 11: Growth Management Employment Districts 11-1 The City will encourage compact development and the integration of land uses within the Urban Growth Boundary to reduce trips, vehicle miles traveled, and facilitate non - automobile travel. 11-6 Medium and high -density residential development should have good access to transit, K 1.2 public schools where possible, commercial services, employment and public open space to provide the maximum access to highest concentrations of population. 11-3 The City will ensure that development of large blocks of vacant land makes efficient use of land, meets the city's housing and employment needs, and enhances the community. 11-23 The City will encourage development and redevelopment in commercial corridors that is transit -supportive and offers sofe and convenient access and connections for all modes. Finding: The Plan conforms to Chapter 11 Growth Management as for the Project encourages compact development and integration within the Urban Growth Boundary, makes efficient use of large blocks of vacant land that meets the City's housing needs, and supports development and redevelopment along transit -supportive corridors, and offers access and connections for all modes in the Area. To the extent not provided by the existing transportation improvements, the development supported by this Plan will be required to make infrastructure improvements as set out in the Bend Development Code. B. Bend Economic Development Advisory Board Strategic Plan The Bend Municipal Code requires the Bend Economic Development Advisory Board (BEDAB) to create a three-year strategic plan, identifying projects and guiding the work of the city's nine -member board as it seeks to: • Advocate: Provide input into City policy and procedures from a private sector perspective. • Facilitate: Broker entrepreneurial support among existing community resources. • Market: Brand and guide marketing efforts of Bend as "Open for Business." • Coordinate: Organize and oversee City resources applied to economic development. 16 1 Veridian Tax Increment Finance Plan The following goal and strategy from the 2022-2024 BEDAB Strategic Plan is directly related to the Plan. Goal 2: Monitor and provide input on other relevant City policies relating to economic development • Support policies that provide for a spectrum of workforce housing opportunities Finding: The Plan conforms to the Bend Economic Development Advisory Board Strategic Plan as for the Project will create additional market rate and 90% AMI or less housing units in the Area, supporting the Bend workforce. A. Bead Development Code The Projects in the Area supported by the Plan conform to the zoning in the Bend Development Code, including maximum densities and building requirements, and those provisions of the Bend Development Code are incorporated by reference herein. The entirety of the area is zoned High Density Residential (RH). As the Bend Development Code is updated, the references to the Bend Development Code in this document will be deemed to incorporate those updates without the Plan having to be formally amended. if a Substantial Amendment to this Plan is completed in the future, this section will be updated to match the current zoning designations. The provisions of the Bend Development Code in effect at the time of development approval will apply for any development assisted by this Plan. B.2 -- Residential Districts Bend Development Code Section 2.1.100 Purpose and Applicability High Density Residential (RH) - The High Density Residential District is intended to provide land for primarily high density multi -unit residential in locations close to shopping and services, transportation and public open space and to provide a transitional use area between other Residential Districts and other less restrictive areas. Finding: The Plan conforms to the Bend Development Code as the Projects and expenditures proposed in the Plan conform to the requirements in the Bend Development Code and support the types of uses allowed in the zoning present in the Area. The Project will support development of a multi -unit apartment complex that the City has approved under application number PLSPR20220819. This development will be required to comply with the provisions of BDC Chapter 3.4, Public Improvement Standards, and other provisions of the Bend Development Code to provide sufficient public infrastructure to serve the development. The proposal includes the build -out of an undeveloped site, in a generally developed area. 17 1 Veridian Tax Increment Finance Plan XI11. PLAN AREA LEGAL DESCRIPTION Development Tract B of Outcrop of subdivision of portion of land located in the Southwest One - Quarter (SW1/4) of Section 25, Township 17 South, Range 11 East, Willamette Meridian, City of Bend, Deschutes County, Oregon 18 1 Veridian Tax Increment Finance Plan EXHIBIT A Veridian Tax Increment Finance Plan - Report DRAFT FOR PUBLIC COMMENT AND REVIEW NOT ADOPTED BUILDING ON OUR PAST SERVING THE PRESENT SHAPING BEND'S FUTURE LAST OF PARTICIPANTS Mayor Melanie Kebler Mayor Pro tern Megan Perkins City Council Gina Franzosa Ariel Mendez Mike Riley Megan Norris Steve Platt Planning Commission Margo Clinton, Chair Scott Winters, Vice -Chair Bob Gressens Suzanne Johannsen John LaMotte Erin Ludden Nathan Nelson City Manager Eric King City Finance Director Samantha Nelson City Attorney Ian Leitheiser Senior Assistant City Attorney Elizabeth Oshel Real Estate Director Matt Stuart Urban Renewal Manager Jonathan Taylor Planning Manager Renee Brooke Housing Manager Racheal Baker Bend Urban Renewal Agency Mike, Riley, Chair Gina Franzosa, Vice -Chair Ariel Mendez Megan Noris Steve Platt Melanie Kebler Megan Perkins Core Area Advisory Board Corie Harlan, Chair Dale VanValkenburg, Vice -Chair Dawn Cofer Hank Kamakaala James Teeter Jeff Baker John Fischer John Heylin Katherine Austin Bend Economic Development Advisory Board Gary North, Chair DaWayne Judd, Vice -Chair Briana Manfrass Jenn Lynch Jillian Taylor Mark Kroncke Petra Oroslanova Ryan Andrews Tierney Booker Affordable Housing Advisory Committee Mandy Dalrymple Alison Hohengarten Ian Karasz Tony Levison Isabel Mikovich Richard Reese Helen Silfven Heather Simmons Geoff Wall 2 l Report on Veridian TIF District Plan TABLE OF CONTENTS I. DEFINITIONS...................................................................................................................1 INTRODUCTION..............................................................................................................3 III. THE PROJECTS IN THE AREA AND THE RELATIONSHIP BETWEEN TIF DISTRICT PROJECTS AND THE EXISTING CONDITIONS IN THE TIF DISTRICT.................................6 IV. THE ESTIMATED TOTAL COST OF EACH PROJECT AND THE SOURCES OF MONEYS TO PAYSUCH COSTS............................................................................................................7 V. FINANCIAL ANALYSIS OF THE PLAN...................................................................................8 VI. THE ESTIMATED AMOUNT OF TAX INCREMENT REVENUES REQUIRED AND THE ANTICIPATED YEAR IN WHICH INDEBTEDNESS WILL BE RETIRED...............................10 VII. THE ANTICIPATED COMPLETION DATE FOR EACH PROJECT..........................................10 VIIl. REVENUE SHARING........................................................................................................10 IX. IMPACT OF THE TAX INCREMENT FINANCING...............................................................10 X. COMPLIANCE WITH STATUTORY LIMITS ON ASSESSED VALUE AND SIZE OF TIF/URBAN RENEWALAREAS..........................................................................................................15 XI. EXISTING PHYSICAL, SOCIAL, AND ECONOMIC CONDITIONS AND IMPACTS ON MUNICIPAL SERVICES...................................................................................................17 Xil. REASONS FOR SELECTION OF EACH PLAN AREA IN THE PLAN......................................20 XIII. RELOCATION REPORT....................................................................................................21 3 :i Report on Veridian TIF District Plan I. DEFINITIONS "Agency" or "BURR" means the Bend Urban Renewal Agency. The Agency is responsible for administration of this Veridian TIF Plan and other TIF plans previously adopted in the City of Bend. "Annual report" is the report required by ORS 457.460 that is filed with the City of Bend and distributed to the taxing districts. "Area" or "TIF Area" or "Plan Area" means the tax increment finance area established for this Plan pursuant to ORS chapter 457, and described in Section XI11 of the Plan, below, including the properties and rights -of -way located therein. "Area Median Income" or "AMI" means the area median income as determined by the most recent United States Department of Housing and Urban Development for the Bend Metropolitan Statistical Area at the time of the household's application for housing. "Blight" is defined in ORS 457.010(1)(a-i) and identified in the ordinance adopting a TIF plan. "Board of Commissioners" means the Deschutes County Board of Commissioners. "City" means the City of Bend, Oregon. "City Council" or "Council" means the Bend City Council. "Comprehensive Plan" means the City of Bend Comprehensive Plan and its implementing ordinances, policies, and standards. "County" means Deschutes County, Oregon. "Fiscal year" or "FYE" means the year commencing on July 1 and closing on June 30. "Frozen base" means the total assessed value including all real, personal, manufactured, and utility values within a TIF area at the time of adoption. The county assessor certifies the assessed value after the adoption of a TIF area plan. "Increment" means that part of the assessed value of a taxing district attributable to any increase in the assessed value of the property located in an urban renewal area, or portion thereof, over the assessed value specified in the certified statement from the assessor (frozen base). "Maximum indebtedness" means the amount of the principal of indebtedness included in a plan pursuant to ORS 457.190 and does not include indebtedness incurred to refund or refinance existing indebtedness. The maximum indebtedness for this Plan is $8,782,431. "More Affordable Housing" is housing that is rented at rates equal to or less than 30% of household income to households earning 90% of area median income (AMI) or less. It assumes housing is available to residents at a range of incomes, at or below 90 percent of AMI. 11 Report on Veridian TIF District Plan "Municipality" means any county or any city in the state of Oregon. "ORS" means the Oregon Revised Statutes and specifically Chapter 457, which relates to urban renewal. "Plan" or "Veridian Area TIF Plan" or "TIF Plan" means the adopted plan for the TIF Area pursuant to ORS chapter 457. "Planning Commission" means the Bend Planning Commission. "Policy" means the Policy for Tax Increment Assistance for Housing Affordability and Employment Growth adopted by BURA Resolution No. 158 on October 16, 2024. "Policy Justification" means a document with an analysis of the local housing and employment market for the City of Bend used to establish policy parameters for the Tax Increment Assistance for Housing Affordability and Employment Growth. "Project(s)" or "TIF Project(s)" means any work or undertaking carried out under the Veridian TIF Plan. "Report Accompanying Veridian Housing Area TIF Plan" or "Report" means the official report that accompanies the Veridian TIF Plan pursuant to ORS 457.087. "Revenue sharing" means sharing tax increment proceeds as defined in ORS 457.470. "Tax increment" means that part of the assessed value of a taxing district attributable to any increase in the assessed value of the property located in an urban renewal area, or portion thereof, over the assessed value specified in the certified statement. "Tax increment finance area" or "TIF area" means a blighted area included in a TIF plan. "Tax increment finance area plan" or "TIF plan" means a plan, as it exists or is changed or modified from time to time, for one or more TIF areas, as provided in ORS 457. "Tax increment finance area project(s)" or "TIF area project(s)" or "project(s)" means any work or undertaking carried out under ORS 457.170 and ORS 457.180 in a TIF area. "Tax increment finance area report" or "report" means the official report that accompanies the TIF plan pursuant to ORS 457.087. "Tax increment finance" or "tax increment financing" or "TIF" means the funds that are associated with the division of taxes accomplished through the adoption of a TIF plan. "Tax increment revenues" means the funds allocated by the assessor to renewal TIF area due to increases in assessed value over the frozen base within the area. "UGB" means urban growth boundary. "Urban Renewal" means the statutory authority provided in ORS 457. In this Plan it is synonymous with TIF. Note on language: This Plan, wherever applicable and permissible, uses the term Tax Increment Finance or TIF rather than "urban renewal". The term TIF is used consistently in other parts of the nation and does not evoke past practices of other urban renewal agencies 2 1 Report on Veridian TIF District Plan throughout the country wherein minorities and vulnerable populations were displaced to clear the way for redevelopment. This Plan aims to avoid those connotations and has been created with intention to avoid those outcomes. Utilizing the term TIF does not affect the statutory authority of ORS 457, as it relates to this Plan. II. INTRODUCTION The Report contains background information and project details that pertain to the Veridian TIF Area Plan. The Report is not a legal part of the Plan but provides public information and supports the findings made by the Bend City Council as part of the approval of the Plan. The Report provides the analysis required to meet the standards of ORS 457.087, including financial feasibility. The Report accompanying the Plan contains the information required by ORS 457.087, including: • A description of the physical, social, and economic conditions in the area, ORS 457.087(1) • Expected impact of the Plan, including fiscal impact in light of increased services, ORS 457.087(1) • Reasons for selection of the area, ORS 457.087(2) • The relationship between each project to be undertaken and the existing conditions, ORS 457.087(3) • The estimated total cost of each project and the source of funds to pay such costs, ORS 457.087(4) • The estimated completion date of each project, ORS 457.087(5) • The estimated amount of funds required in the area and the anticipated year in which the debt will be retired, ORS 457.087(6) • A financial analysis of the Plan, ORS 457.087(7) • A fiscal impact statement that estimates the impact of tax increment financing upon all entities levying taxes upon property in the urban renewal area, ORS 457.087(8) • A relocation report, ORS 457.087(9) 3 1 Report on Veridian TIF District Plan The relationship of the sections of the Report and the ORS 457.087 requirements is shown in Table 1. The specific reference in the table below is the section of this Report that most addresses the statutory reference. There may be other sections of the Report that also address the statute. Table 1- Statutory References Statutory Requirement Report Section ORS 457.087(1) X, VIII ORS 457.087(2) XI ORS 457.087(3) 11 ORS 457.087(4) ORS 457.087(5) VI ORS 457.087(6) IV,V ORS 457.087(7) IV,V ORS 457.087(8) VIII ORS 457.087(9) XII The Report provides guidance on how the Plan might be implemented. The Agency has the authority to adjust the implementation assumptions in this Report. The Agency may allocate budgets differently, adjust the timing of the projects and make other adjustments to the financials as determined by the Agency. The Agency may also make changes as allowed in the Amendments section of the Plan. These adjustments must stay within the overall maximum indebtedness of the Plan. 4 1 Report on Veridian TIF District Plan Figure 1— Veridian TIF Area Boundary PROPOSE® URBAN RENEWAL AREA N D A fm IBM urban Renewal Area - Roads o Co: mal 103 CITY OF BEN P Tax Lots III woaeo.M.Y.mats"d �r.�...a...om...«w c.. R7t �e'1tr 60. ^_II`L wsw nMaAbea r.,rnr.we. tcuen!WR6ei4 DeSCvh:Caiy er�.+k+�r�.+a..�is�aatl�on�.4ir w�. Source: City of Bend 5 1 Report on Veridian TIF District Plan Ill. THE PROJECTS IN THE AREA AND THE RELATIONSHIP BETWEEN TIF DISTRICT PROJECTS AND THE EXISTING CONDITIONS IN THE TIF DISTRICT The projects identified for the Veridian TIF Plan Area are described below, including how they relate to the existing conditions in the Plan Area. A. Housing Development and Development Assistance, Partnership, and Support This Project will provide incentives for the development of housing units and More Affordable Housing in the Plan Area. The development to be supported by this Project is a 69-unit apartment complex in the Area approved by the City of Bend under application number PL.SPR20220819. Incentives may be in the form of either an annual tax increment reimbursement payment over a specified period and/or payment of City development fees associated with the proposed development project (i.e., system development charges) ("Assistance"). The form of Assistance for the Project will be determined through a development agreement with the developer of the housing that stipulates the amount and timing of the development and the amount and timing of the incentive. BURA staff will conduct pre -development meetings with a developer of property within the Area to identify the financing needs of the site. Staff will recommend a financing package not to exceed the maximum indebtedness to the Agency that will contain recommendations on the appropriate length of incentive through negotiations with the developer for the development of the housing units. A development agreement, approved by the Agency will set out the method of providing the Assistance to the eligible project and a commitment by the developer owner for providing the required More Affordable Units. A guideline for the amount of incentive is shown in the Table 2 of this Report. This is a guideline only, and actual assistance provided will be set through development agreements with BURA, balancing the needs for administration and incentives. Existing Conditions: The property is currently undeveloped. There are impaired investments as identified in Section X of this Report. As described in the Plan and the adopting documents, there is a lack of residential housing units and affordable housing units in Bend.'The Plan will support development of housing in the Area, including improvements to presently deficient on -site infrastructure, increase the supply of housing units, and provide housing units affordable for households in income ranges for which there is presently a lack of affordable units in Benda I City of Bend Comprehensive Plan 2 Oregon Housing Needs Assessment 2025 Methodology 6 1 Report on Veridian TIF District Plan B. Administration The Agency may provide administration of the Plan including but not limited to staff support, legal counsel assistance, review of annual payments, financial statements, budget preparation and annual reports pursuant to ORS 457.460. Existing Conditions: There is presently not a TIF area in this location. Therefore, there is no existing funding or need for administration in the Area by BURA. This project would provide that administrative support. A table showing the projects and total estimated costs is shown in The total cost estimates for the Projects are shown in Table 2 below. These are all estimates acknowledging that these project activities must fit within the maximum indebtedness. These costs are shown in nominal, year of expenditure (YOE) dollars, and are equal to the maximum indebtedness of $8,782,431. The estimated project costs assume development assistance of 97% of the tax increment from the Plan to the developer incentive project and 3% to the Agency for administration of the Plan. The Agency will be able to review and update fund expenditures and allocations on an annual basis when the annual budget is prepared Table 2. The total costs are estimated based on the projected future assessed value of the project. IV. THE ESTIMATED TOTAL COST OF EACH PROJECT AND THE SOURCES OF MONEYS TO PAY SUCH COSTS The total cost estimates for the Projects are shown in Table 2 below. These are all estimates acknowledging that these project activities must fit within the maximum indebtedness. These costs are shown in nominal, year of expenditure (YOE) dollars, and are equal to the maximum indebtedness of $8,782,431. The estimated project costs assume development assistance of 97% of the tax increment from the Plan to the developer incentive project and 3% to the Agency for administration of the Plan. The Agency will be able to review and update fund expenditures and allocations on an annual basis when the annual budget is prepared Table 2 - Estimated Cost of Each Project, ($2025) Project Estimated Cost Percentage of Total Development Assistance $8,518,958 97% Administration $263,473 3% TOTAL $8,782,431 100% Source: City of Bend 7 1 Report on Veridian TIF District Plan V. FINANCIAL ANALYSIS OF THE PLAN The estimated tax increment revenues through fiscal year ending ("HE") 2055 are calculated based on projections of the growth in assessed value of new development within the TIF Area and the consolidated tax rate that will apply in the TIF Area. Table 3 shows the incremental assessed value, tax rates, and tax increment revenues each year, adjusted for discounts, delinquencies, truncation loss, and receipt of delinquent taxes from prior years.3 The incremental assessed value is the estimated assessed value based on real market value of the proposed project as determined by the Deschutes County Property Tax Estimator as provided by the applicant. The first year of tax increment collections is anticipated to be FYE 2028. Gross tax increment financing revenue (the column titled Gross TIF, in Table 3) is calculated by multiplying the tax rate times the excess value used. Excess value is the increased in assessed value over the frozen base. The tax rate is expressed per thousand dollars of assessed value, so the calculation is "tax rate times excess value used divided by one thousand." The column titled Net TIF Revenue in Table 3 also indicates the total Maximum Indebtedness proposed in this plan as referenced in Table 2, and represents the gross TIF, less expected discounts, to show the total amount of increment expected to be received by BURA in each year of the Plan. 3 In Oregon, when the full amount of the property tax bill is paid by November 15, the taxpayer gets a 3 percent discount. If the taxpayer pays two thirds of the tax by November 15, they get a 2 percent discount. To get a discount on the current year's tax bill, all delinquent taxes, penalty, and interest must first be paid in full (See: http://www.oregon.gov/dor, Property Tax Payment Procedure). 8 k Report on Veridian TIF District Plan N G1 C Q7 N C C Q) f.- u C X C m aj m cc X m N t0/T td/? 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THE ESTIMATED AMOUNT OF TAX INCREMENT REVENUES REQUIRED AND THE ANTICIPATED YEAR IN WHICH INDEBTEDNESS WILL BE RETIRED The maximum indebtedness is $8,782,431(Eight Million, Seven Hundred and Eighty Two Thousand, Four Hundred and Thirty One Dollars). This is also the estimated total amount of tax increment revenues required to service the maximum indebtedness as no formal borrowings or interest payments are anticipated in the Plan. VI1. THE ANTICIPATED COMPLETION DATE FOR EACH PROJECT The schedule for projects will be based on the availability of funding. The projects will be ongoing and will be completed as directed by the Agency. Anticipated annual expenditures for program administration are shown in Table 2. The Agency is anticipated to complete the projects and to terminate the Plan in FYE 2055, allowing two years for construction of the housing assisted by the Plan and 30 years of increment rebate and housing affordability, for a 30-year Plan duration. Vill. REVENUE SHARING Revenue sharing thresholds are not projected to be reached during the life of the Plan. Revenue sharing thresholds are not projected to be reached during the life of the Plan. Revenue sharing is defined in ORS 457.470 and requires that the impacted taxing jurisdictions receive a share of the incremental growth in the Plan Area when annual tax increment finance revenues exceed 10% and 12.5% of the original maximum indebtedness of the Plan. For this Plan, 10% equals $878,243. As shown in the column labeled Gross TIF in Table 3, neither threshold is projected to be reached during the life of the Plan. If either threshold is met, the Agency will comply with statutory requirements for revenue sharing. IX. IMPACT OF THE TAX INCREMENT FINANCING This section describes the impact of tax increment financing of the maximum indebtedness, both until and after the indebtedness is repaid, upon all entities levying taxes upon property in the TIF Area. The impact of tax increment financing on overlapping taxing districts consists primarily of the property tax revenues foregone on permanent rate levies as applied to the growth in assessed value in the TIF Area. These projections show the estimated tax revenues that would be received by the taxing districts if the development assisted by the Plan were to occur without the Plan. Table4 and Table 5 shows impacts estimated through FYE 2057. 10 1 Report on Veridian TIF District Plan The Bend -La Pine School District is not directly affected by the tax increment financing, but the amounts of their taxes divided for the Plan are shown in the following tables. Under current school funding law, property tax revenues are combined with State School Fund revenues to achieve per -student funding targets. Under this system, property taxes foregone, due to the use of tax increment financing, are substantially replaced with State School Fund revenues, as determined by a funding formula at the state level. If new school aged students move into these units and attend the local schools, the funding through the State School Fund would increase. Table 4 and Table 5 show the projected impacts to permanent rate levies of taxing districts as a result of this Plan. Table 4 shows the general government levies, and Table 5 shows the education levies. 111 Report on Veridian TIF District Plan Table 4 - Proiected Impact on Taxing District Permanent Rate Levies - General Government FYE City of Bend Deschutes County County Library Countywide Law Enforcement County Extension 9-1-1 Bend Parks and Recreation District Total 2026 $0 $0 $0 $0 $0 $0 $0 $0 2027 $0 $0 $0 $0 $0 $0 $0 $0 2028 $43,861 $19,999 $8,605 $19,556 $350 $5,660 $22,857 $120,889 2029 $45,177 $20,599 $8,863 $20,143 $361 $5,830 $23,543 $124,516 2030 $46,532 $21,217 $9,129 $20,747 $372 $6,005 $24,249 $128,251 2031 $47,928 $21,853 $9,403 $21,370 $383 $6,185 $24,977 $132,099 2032 $49,366 $22,509 $9,685 $22,011 $394 $6,371 $25,726 $136,062 2033 $50,847 $23,184 $9,975 $22,671 $406 $6,562 $26,498 $140,143 2034 $52,372 $23,880 $10,275 $23,351 $418 $6,759 $27,293 $144,348 2035 $53,943 $24,596 $10,583 $24,052 $431 $6,962 $28,112 $148,678 2036 $55,561 $25,334 $10,900 $24,773 $444 $7,170 $28,955 $153,138 2037 $57,228 $26,094 $11,227 $25,516 $457 $7,385 $29,824 $157,733 2038 $58,945 $26,877 $11,564 $26,282 $471 $7,607 $30,718 $162,465 2039 $60,714 $27,683 $11,911 $27,070 $485 $7,835 $31,640 $167,339 2040 $62,535 $28,514 $12,268 $27,883 $500 $8,070 $32,589 $172,359 2041 $64,411 $29,369 $12,636 $28,719 $515 $8,312 $33,567 $177,529 2042 $66,343 $30,250 $13,015 $29,581 $530 $8,562 $34,574 $182,855 2043 $68,334 $31,158 $13,406 $30,468 $546 $8,819 $35,611 $188,341 2044 $70,384 $32,093 $13,808 $31,382 $562 $9,083 $36,679 $193,991 2045 $72,495 $33,055 $14,222 $32,324 $579 $9,356 $37,780 $199,811 2046 $74,670 $34,047 $14,649 $33,293 $597 $9,636 $38,913 $205,805 2047 $76,910 $35,068 $15,088 $34,292 $615 $9,925 $40,080 $211,979 2048 $79,217 $36,120 $15,541 $35,321 $633 $10,223 $41,283 $218,339 2049 $81,594 $37,204 $16,007 $36,380 $652 $10,530 $42,521 $224,889 2050 $84,042 $38,320 $16,488 $37,472 $671 $10,846 $43,797 $231,636 2051 $86,563 $39,470 $16,982 $38,596 $692 $11,171 $45,111 $238,585 2052 $89,160 $40,654 $17,492 $39,754 $712 $11,506 $46,464 $245,742 2053 $91,835 $41,873 $18,016 $40,946 $734 $11,852 $47,858 $253,115 2054 $94,590 $43,130 $18,557 $42,175 $756 $12,207 $49,294 $260,708 2055 $97,427 $44,424 $19,114 $43,440 $778 $12,573 $50,773 $268,529 Total $1,882,983 $858,576 $369,410 $839,568 $15,045 $243,005 $981,287 $5,189,873 Source: City of Bend 12 1 Report on Veridian TIF District Plan Table 5 - Projected Impact on Taxing District Permanent Rate Levies -- Education FYE Bend La -Pine School District Central Oregon CC High Desert ESD Total 2026 $0 $0 $0 $0 $0 2027 $0 $0 $0 2028 $74,534 $9,706 $1,508 $85,749 2029 _ $76,770 $9,997 $1,553 $88,321 2030 $79,073 $10,297 $1,600 $90,971 2031 $81,446 $10,606 $1,648 $93,700 2032 _ $83,889 $10,924 $1,697 $96,511 2033 $86,406 $11,252 $1,748 $99,406 2034 $88,998 $11,590 $1,801 $102,388 2035 $91,668 $11,937 $1,855 $105,460 2036 $94,418 $12,295 $1,911 $108,624 2037 $97,250 $12,664 $1,968 $111,883 2038 $100,168 $13,044 $2,027 $115,239 2039 $103,173 $13,436 $2,088 $118,696 2040 $106,268 $13,839 $2,150 $122,257 2041 $109,456 $14,254 $2,215 $125,925 2042 $112,740 $14,681 _ $2,281 $129,703 2043 $116,122 $15,122 $2,350 $133,594 2044 $119,606 $15,576 $2,420 $137,601 2045 $123,194 $16,043 $2,493 $141,730 2046 $126,890 $16,524 $2,568 $145,981 2047 _ $130,696 $17,020 $2,645 $150,361 2048 $134,617 $17,530 $2,724 $154,872 2049 $138,656 $18,056 $2,806 $159,518 2050 $142,816 $18,598 $2,890 $164,303 ! 2051 $147,100 $19,156 $2,977 $169,232 2052 $151,513 $19,731 $3,066 $174,309 2053 $156,058 $20,323 $3,158 $179,539 2054 $160,740 1 $20,932 $3,253 $184,925 2055 $165,562 $21,560 $3,350 $190,473 Total $3,199,828 $416'694 $64,747 $3,681,270 Source: City of Bend Please refer to the explanation of the schools funding In the preceding section 13 1 Report on Veridian TIF District Plan Table 6 shows the projected increased revenue to the taxing jurisdictions after termination of the Plan and tax increment collection by BURR is terminated. These projections are for FYE 2056. The frozen base is the assessed value of the Plan Area established by the County Assessor at the time the Plan is established. Excess value is the increased assessed value in the Plan Area above the frozen base. Table 6 - Additional Revenues Obtained after Termination of Tax Increment Financing in FYE 2056 (Year after Termination) Taxing District From Increment From Frozen Base Total Value Value General Government City of Bend $100,350 $0 $100,350 Deschutes County $45,756 $0 $45,756 County Library $19,687 $0 $19,687 Countywide Law $44,743 $0 $44,743 Enforcement County Extension $802 $0 $802 9-1-1 $12,950 $0 $12,950 Bend Parks and $52,296 $0 $52,296 Recreation Subtotal $276,585 $0 $276,585 Education Bend La -Pine School $170,529 $0 $170,529 District Central Oregon CC $22,207 $0 $22,207 High Desert ESD $3,451 $0 $3,451 Subtotal $196,187 $0 $196,187 Total $472,772 $0 $472,772 Source: City of Bend 14 i Report on Veridian TIF District Plan X. COMPLIANCE WITH STATUTORY LIMITS ON ASSESSED VALUE AND SIZE OF TIF/URBAN RENEWAL AREAS State law limits the percentage of both a municipality's total assessed value and the total land area that can be contained in a TIF area at the time of its establishment to 15% for municipalities over 50,000 in population. As noted below, the frozen base of the Veridian TIF Area (using assumed FYE 2025 values) is projected to be $0. The total assessed value of the City is $16,125,929,179. The increment of the existing urban renewal areas is $833,743,768. To get the total percentage of assessed value in TIF areas, divide the total assessed value of the City minus the increment of the TIF areas by the frozen base values of the urban renewal areas. Table 7 shows that in Bend, 3.35% of the City's assessed value is located in TIF areas, which is below the 15% threshold. The City is considering adopting three new TIF areas in May 2025. Table 7a shows that if all areas proposed for adoption in May 2025 are created, total TIF areas in the City are below the 15% threshold. Table 7- Assessed Value Statutory Limit Verification Bend Urban Renewal Areas Frozen Base Increment Juniper Ridge $13,752,568 $157,422,963 Murphy Crossing $72,685,192 $65,530,594 Core Area $443,857,101 $80,495,350 Veridian $0 TOTAL: $530,294,861 $303,448,907 Calculation A. City of Bend Total AV $16,125,929,719 B. Total Frozen Base of URAs $530,294,861 C. Total Increment of URAs $303,448,907 D. Frozen Base as % of City AV: B/(A-C) 3.35% Table 7a — Assessed Value Statutory Limit Verification —Proposed Districts (May 2025) Bend Urban Renewal Areas Frozen Base Increment Juniper Ridge $13,752,568 $157,422,963 Murphy Crossing $72,685,192 $65,530,594 Core Area $443,857,101 $80,495,350 Veridian* $0 Britta Ridge* $269,110 Century* $3, 559, 680 TOTAL: $534,123,651 $303,448,907 Calculation 15 1 Report on Veridian TIF District Plan A. City of Bend Total AV $16,125,929,719 B. Total Frozen Base of LIRAS $534,123,651 C. Total Increment of LIRAS $303,448,907 D. Frozen Base as % of City AV: B/(A-C) 3.38% * May2025 Recommended Plan Areas Source: City of Bend and Deschutes County Assessor, SAL 4c (FYE 2025) AV — assessed value Frozen base — assessed value the urban renewal area at the time it is established Increment— increased assessed value over the frozen bas URA —urban renewal area The Veridian TIF Area contains 2.81 acres. There are 1,640.12 acres in other TIF areas in the City. The City contains 21,315.8 acres. 7.68% of the City's acreage is located in TIF areas, which is below the 15% threshold. The City is considering adopting three new TIF areas in May 2025. Table 8a shows that if all areas proposed for adoption in May 2025 are created, total TIF areas in the City are below the 15% threshold. Table 8- Acreage Statutory Limit Verification Bend Urban Renewal Areas Acreage Juniper Ridge 721.95 Murphy Crossing 275.15 Core Area 637.16 Century 2.81 Total 1,637.07 City of Bend 21,315.80 URA as % of City of Bend 7.68% Source: City of Bend Table 8a — Acreage Statutory Limit Verification — Proposed Districts (May 2025) Bend Urban Renewal Areas Acreage Juniper Ridge 721.95 Murphy Crossing 275.15 Core Area 637.16 Veridian * 2.81 Britta Ridge* 6.16 Century* 9.20 Total 1,652.43 City of Bend 21,315.80 URA as % of City of Bend 7.75% 16 1 Report on Veridian TIF District Plan XI. EXISTING PHYSICAL, SOCIAL, AND ECONOMIC CONDITIONS AND IMPACTS ON MUNICIPAL SERVICES This section of the Report describes existing conditions within the Plan Area Area and documents the occurrence of "blighted areas," as defined by ORS 457.010(1). A. Physical Conditions 1. Land Use The Plan Area measures 2.81 total acres in size. The present land use is vacant, undeveloped, and publicly owned property. 2. Zoning and Comprehensive Plan Designations The Area is zoned High Density Residential (RH) and designated High Density Residential (RH) in the Comprehensive Plan. B. Infrastructure This section identifies the existing conditions in the Plan Area to assist in establishing blight in the ordinance adopting the Plan. This does not mean that all of these projects are included as projects to be undertaken in the Plan. The specific projects that are included in the Plan are listed in Section II of this Report. 1. Transportation The Plan Area abuts NW Mt. Washington Drive and NW Shevlin Park Road. The streets are designated as minor arterials in the Bend Transportation System Plan ("TSP"). A residential development has been approved by the City with permit PLSPR20220819. The approved development is anticipated to be assisted by the Project in the Plan. The area's transportation and rights -of -way are generally constructed in conformance with City Standards. The proposed development will construct two new street connections to NW Mt. Washington Drive and NW Shevlin Park Road in accordance with Bend Development Code 3.4, Mitigation 5 in the Traffic Analysis Memo and land -use permit PLSPR20220819. There is presently no interior transportation system that provides multimodal access from the Plan Area to NW. Mt. Washington Drive and NW Shevlin Park Road. Buildout of the undeveloped sites within the Plan Area is proposed to connect to abutting rights -of -way with access improved to City Standards. 2. Other Utilities The water, sewer, and storm infrastructure are available within surrounding streets/areas and are adequate to serve the site. The plan area is not currently served with City of Bend Sewer or Water. As stated land -use permit PLSPR20220819, the development must extend the 8-inch water main from the western plan and an 8-inch PVC sewer main from the northwest corner of the Plan Area that will meet City of Bend Standards. 17 1 Report on Veridian TIF District Plan C. Social Conditions The Plan Area has no existing residents. The City of Bend is currently needs an additional 8,500 residential units across all income ranges by 20305 to accommodate underproduction for existing need and 15,000 new residents.6 Building more housing units with emphasis on encouraging more affordable housing options are high priorities within the City according to both community statements and City Council 2023-2025 Goals. The Plan Area is in Block Group 1 in Census Tract 13.02 in the City of Bend. Tables 9-13 show the social conditions for this block group. Table 9 — Race in the Block Group 1 Race Number Percent White alone 2,765 86% Black or African American alone 0 0% American Indian and Alaska Native alone 0 0% Asian alone 34 1% Native Hawaiian and Other Pacific Islander alone 0 0% Some other race alone 22 1% Two or more races 379 12% TOTAL 3,200 100% Source: American Community Survey 2023 5-year Estimates Table 10 — Age in the Block Group 1 Age Number Percent Under 5 years 167 5% 5 to 9 years 185 6% 10 to 14 years 157 5% 15 to 17 years 158 5% 18 to 24 years 75 2% 25 to 34 years 208 7% 35 to 44 years 534 17% 45 to 54 years 525 16% 55 to 64 years 495 15% 65 to 74 years 499 16% 75 to 84 years 170 5% 5 Oregon Housing Needs Analysis, 2025 6 Portland State University, Population Projects 2030 18 1 Report on Veridian TIF District Plan 85 years and over 27 1% TOTAL 3,200 100% Source: American Community Survey 2023 5-year Estimates Table 11— Educational Attainment for Population 25 years and Over in Block Group 1 Educational Attainment Number Percent Less than high school 25 1% High school graduate (includes equivalency) 176 7% Some college 370 15% Associate's degree 190 8% Bachelor's degree 792 32% Master's degree 596 24% Professional school degree 145 6% Doctorate degree 164 7% TOTAL 2,458 100% Source: American Community Survey 2023 5-year Estimates Table 12 —Travel Time to Work in Block Group 1 Travel Time Number Percent Less than 10 minutes 131 19% 10 to 19 minutes 346 51% 20 to 29 minutes 208 30% 30 to 34 minutes 0 0% 35 to 59 minutes 0 0% 60 or more minutes 0 0% TOTAL 685 100% Source: American Community Survey 2023 5-year Estimates Table 13 — Means of Transportation to Work in Block Group 1 Means of Transportation Number Percent Drove alone 610 50% Carpooling 0 0% Using Public Transportation 0 0% Bicycling 75 6% Walking 0 0% Working at home 541 44% TOTAL 1,226 100% Source: American Community Survey 2023 5-year Estimates 19 1 Report on Veridian TIF District Plan D. Economic Conditions 1. Taxable Value of Property within the Plan Area The estimated total assessed value from the Deschutes County Department of Assessment and Taxation for FYE 2025 is $0. The Area is zoned High Density Residential (RH) and is presently vacant. With a consistent lack of development, the Area has diminished taxable value reducing overall tax receipts in comparison to adjacent areas thereby not contributing its fair share to the overall tax base of the City. The result is stagnant and unproductive use of land resulting in taxable value $1 million less per acre than adjacent parcels. E. Impact on Municipal Services The fiscal impact of tax increment financing on taxing districts that levy taxes within the Plan Area (affected taxing districts) is described in Section VII of this Report. This subsection discusses the fiscal impacts resulting from potential increases in demand for municipal services. The projects in the Plan are for development assistance to assist in the development of housing units in the Area and administration of this Plan. The developments to be supported by the Projects of this Plan are for multi -unit housing development and associated site improvements, approved by the City under planning application number PLSPR20220819. The Area is within the City limits, the approved development is consistent with the Comprehensive Plan and zoning designations, and the City has anticipated the need to provide services to the Area. As the development will be new construction, it will be constructed to current building codes, which will aid in the needs for fire protection and lessen the burden on fire response. The financial impacts from tax increment collections will be countered by housing production and, in the future, adding future increased increases in assessed value to the tax bases for all taxing jurisdictions, including the City. XII. REASONS FOR SELECTION OF EACH PLAN AREA IN THE PLAN The reason for selecting the Plan Area is to provide the ability to fund developer assistance necessary to cure blight within the Plan Area. The development assistance will assist with providing more market rate and workforce affordable housing units as identified in Bend's Housing Needs Analysis and the Oregon Housing Needs Assessment 2025 Methodology, contributing to the health, safety and welfare of Bend residents. The Plan Area is zoned High Density Residential (RH) and is not being utilized to the use for which it is zoned. The Plan Area is vacant, does not have adequate development of utilities, and has not been developed commensurate with surrounding lands. 20 1 Report on veridian TIF District Plan XIII. RELOCATION REPORT There Is no relocation report required for the Plan. No specific acquisitions that would result in relocation benefits have been identified. However, if property is acquired that requires relocation, the Agency will comply with applicable relocation requirements. 211 Report on Veridian TIF District Plan vT E S COG2� { BOARD OF COMMISSIONERS MEETING DATE: April 16, 2025 SUBJECT: Formation of Committee to Create Commissioner Districts BACKGROUND AND POLICY IMPLICATIONS: Ballot Measure #9-173 passed in November 2024 which expands the County Commissioners to a five seat Board. The two new positions will be elected in 2026, for an initial two-year term which will begin in January 2027 and will be at -large seats. In previous Board of County Commissioners (BOCC) meetings in November 2024 and March 2025, the BOCC indicated interest in creating Commissioner Districts through a Ballot Measure process in place of having 5 at -large Commissioner Positions. On March 31, 2025, the BOCC voted to move forward to develop a process to draft Commissioner Districts for voter consideration. The BOCC supports a district map drawing process via a committee and directed staff to research and present options for forming a citizen committee to commence the map drawing work. Specifically, the BOCC directed staff to present options on the committee formation processes for the following: 1. Local Appointments 2. State Home Rule Charter Committee Appointment Process 3. Civic Assembly/Application Process In addition to compiling research from the City of Portland and two Oregon counties which have completed a re -districting or new districting process, staff has talked extensively with the consultant who led the Civic Assembly process last fall. Based upon that information as well as staff background and experience, the following options are presented for BOCC discussion and decision: Local Appointments Options (combination of any of the following) • Cities o How many appointments? o Each city appoints 1 member or a weighted formula is created based on proportional voter population o The voting population data by city as of April 1, 2025: City Voting Population Percent of Total Deschutes County Voting Population 163,826 City of Bend 77,587 47% City of La Pine 2,317 1 % City of Redmond 26,954 16% City of Sisters 3,206 2% Other 53,762 33% • BOCC o How many appointments? ■ 3 = 1 each ■ 4 = 1 each plus 1 selected by majority vote of the BOCC • Other options • State elected officials from Deschutes County o How many appointments? ■ 1 each ■ Proportional appointments based on voting population ■ Other o The voting population by office as of April 1, 2025: State Senate Elected Official District Deschutes County Representation Voting Population (Deschutes County Only) Percent of Total Deschutes County Voting Population (163,826 Senator Broadman 27 All 113,120 69% Senator Linthicum 28 Partial 29,263 18% Senator McLane 30 Partial 21443 13% State House Elected Official District Deschutes County Representation Voting Population (Deschutes County Only) Percent of Total Deschutes County Voting Population (163,826) Rep. E. Levy 53 All 58746 36% Rep. Kro f 54 All 54374 33% Rep. Reschke 55 Partial 29263 18% Rep. Breese Iverson 59 Partial 21387 13% Rep. Owens 60 Fraction 56 0% • At large appointments by citizen applications o How many appointments? • Other • Recommended Timeline o Appointment nominations due by May 301n o Appointments confirmed during June 16t" BOCC meeting Budget Impact o If appointment only, no budget impact anticipated o If application process, costs involved could include translation services for notices and print advertising costs (potentially) State Home Rule Charter Committee Appointment Process (9 member committee) • BOCC Appoints 4 members 0 4 = 1 each plus 1 selected by majority vote of the BOCC 0 4 selected by majority vote of the BOCC o Other State Senators and State Representatives representing the County appoint 4 members o Please refer to the chart of listed state elected officials above 0 1 each by elected officials that have majority representation in the County (Senator Broadman, Rep. Levy, and Rep. Kropf) and 1 combined by the remaining elected who have partial representation in the County (Senator Linthicum, Senator McLane, Rep. Reschke, Rep. Breese Iverson, and Rep. Owens) o Other BOCC appointees and State Senator/Representatives appointees combined appoint 1 member o For state elected officials - weighted nominations based on voting population represented or each puts forth a nomination o BOCC - each put forth a nomination or selected by majority vote of the BOCC o All parties vote on nominations and top vote gets the nomination o Other • Recommended Timeline o Appointment nominations due by May 30`" o Appointments confirmed during June 16`" BOCC meeting Budget Impact o No budget impact anticipated Civic Assembly/Application Process/Hybrid Background: In the Fall of 2024 a Civic Assembly was formed in Deschutes County with the intent of having a group of demographically represented citizens come together and present a large range of recommendations on a complicated issue (Youth Homelessness). Forming a committee with one set goal (drawing Commissioner district maps) has unique considerations and the process for the formation of the Civic Assembly may not be entirely compatible with forming a district maps committee. However, staff believe that there were some great processes in place for the formation of the Civic Assembly that could potentially be adapted and implemented to form a district maps committee. • Engage Josh Burgess with Democracy Next in the process? o Josh may be available to conduct some light consulting work on the process Advertise on social and traditional media platforms to solicit applications o Use a QR code for easy access to application process o Reverse process of demographic representation? ■ The assembly sent out targeted mailing using software that selected 12,500 registered voters who were demographically represented and invited those selected to apply to participate • Costs on the assembly County could cast a wide net of applications and potentially use software to randomly select a demographically represented group for application review and committee selection o Assembly paid a stipend to participants as well as offered reimbursements for childcare and transportation o Stipend for Committee members? ■ A consideration for the BOCC for committee members whether the committee is formed through an assembly, nomination, or application process o Total cost of the assembly was $250,000, currently the County has $12,000 budgeted for the district map process • Meeting schedule o The assembly met for 5 days for 8 hours a day o Staff propose a meeting schedule that takes place over the course of 8-12 weeks, 1-2 times a week, 2-hour meetings each • Timeline o The assembly required at least 6 months of prep work before the meetings began o Please refer to the PowerPoint from the March 31, 2025, BOCC meeting for a draft timeline assuming the ballot measure is on the May 2026 election Other items to consider in developing a process to form a Committee: • Committee Size o Recommend that the committee has an odd number of members o Recommend a Committee size between 11-19 members, however a smaller committee size is also an option (7-9 members) Committee member requirements o Registered voter? o Deschutes resident? o Eligible to run for a Commissioner seat in the 2026 election? o Demographic representation? o Geographic representation? If application option is part or all of any option then: o Who selects the applicants? ■ Blind (redacted identifying information) application review? ■ Rating system for applications? ■ Cornmissioners, staff, representatives from cities/communities, and/or others involved in the application review? ■ Other? o Software generating demographically represented applicants and randomly selected? o Online application option? o Timeline for announcing applications, deadline, and selection process • Engaging students from COCC and/or OSU-Cascades in the committee process? o Students were trained in facilitation and moderation for the Civic Assembly o OSU-Cascades -A laboratory for the American Conversation o COCC - Political Science department The next BOCC work session to discuss the process to create district maps will occur on May 5. Topics likely to include: • Committee meeting facilitation • Meeting schedule, including when to start • Charter formation o Map drawing criteria ■ BOCC or Committee decision? o District map options -how many and who decides ■ BOCC or Committee decision? o District Numbering ■ BOCC or Committee decision? 0 5 Districts or 4 and 1 at -large • Public Input o Timing o Type of outreach o Public Hearing(s) BUDGET IMPACTS: $12,000 has been budgeted for FY 2026 to complete the process. ATTENDANCE: Nick Lelack, County Administrator Jen Patterson, Strategic Initiatives Manager Steve Dennison, County Clerk