HomeMy WebLinkAboutLa Pine Taxing District Letter_revised 06302014
Date: June 9, 2014
Re: Proposed La Pine Urban Renewal Plan
The La Pine City Council is considering adoption of an ordinance to establish an urban renewal
area that encompasses the downtown commercial core of La Pine (Figure 1). The tax increment
revenues from urban renewal would assist with funding projects that would increase the
economic vitality of La Pine.
The legal requirements for the adoption of an urban renewal plan stipulate that the proposed
urban renewal plan be sent to representatives of overlapping taxing districts. Although the
approval of overlapping taxing districts is not required, the City Council is required to respond
specifically to any written recommendations of the districts. This letter is the official
transmission of the proposed La Pine Urban Renewal Plan.
The La Pine City Council is scheduled to consider the adoption of the proposed La Pine Urban
Renewal Plan on July 9th, 2014 at the La Pine City Hall, 16345 6th Street, at 6:00 pm.
I. BACKGROUND
The La Pine Urban Renewal Plan (Plan) and La Pine Urban Renewal Report (Report) have been
developed with the cooperative input of the La Pine Urban Renewal Citizens’ Advisory
Committee (Committee). The Committee was comprised of representatives from the La Pine
City Council, La Pine Planning Commission, Deschutes County Library, Bend -La Pine School
District, La Pine Parks and Recreation District, Deschutes County, La Pine Chamber of
Commerce and businesses of La Pine. The consulting team met with the advisory committee
three times. The first was to review urban renewal and the potential boundary, the second to
review and advise on the goals and objectives, potential projects and the third to review and
provide input on the entire draft La Pine Urban Renewal Plan (Plan) and Report including the
financial data in the Report. At the final meeting, the committee voted unanimously to forward
the draft Plan and Report to the La Pine City Counci l for their review.
An Open House will be held on June 18, 2013, 5:30 – 6:30 pm at the La Pine Chamber of
Commerce office where there will be an opportunity to gather and share information. Please
feel free to attend the Open House.
The La Pine Urban Renewal Plan contains goals, objectives, and projects for the development of
the La Pine Urban Renewal Area. The overall purpose of the Plan is to use tax increment
financing to help improve the vitality of downtown La Pine, overcoming obstacles to the full
development of the Area.
II. PROPOSAL
The La Pine Urban Renewal Plan area (Area), shown in Figure 1, consists of approximately 577
acres of land including rights of way. The Area encompasses the downtown commercial core of
La Pine and adjacent development opportunities including the future Rodeo/Event site.
The purpose of urban renewal is to improve specific areas of a city that are poorly developed or
underdeveloped. These areas can have old deteriorated buildings, public spaces which need
improvements, a lack of investment, streets and utilities in poor condition or they can lack
streets and utilities altogether. The Area has many properties that are undeveloped or under
developed, and lacks sufficient infrastructure within the Area. The Area also needs streetscape
improvements and effective signage. The Area does not have a program that provides
assistance to property owners for improvement of their properties, and such a program is
identified in the Plan.
Urban renewal projects in general can include construction or improvement of streets, utilities
and other public facilities, assistance for rehabilitation or redevelopment of property,
acquisition and re-sale of property (site assembly) from willing sellers and can provide funds for
improvements to public spaces. The specific projects proposed in this Plan are outlined in
Sections IV and V of the Plan.
Urban renewal is unique in that it brings its own financing source: tax increment financing (TIF).
Tax increment revenues - the amount of property taxes generated by the increase in total
assessed values in the urban renewal area from the time the urban renewal area is first
established – are used to repay borrowed funds. The funds borrowed are used to pay for urban
renewal projects.
Urban renewal is put into effect by the local government (the city in this case) adopting an
urban renewal plan. The urban renewal plan defines the urban renewal area, states goals and
objectives for the area, lists projects and programs that can be undertaken, provides a dollar
limit on the funds borrowed for urban renewal projects, and states how the plan may be
changed in the future.
The goals of the Plan are shown below and the specific objectives are listed in Section III of the
attached Plan.
Public Involvement
Provide for community input in urban renewal planning and administration.
Objectives
a. Include the community in a Citizens’ Advisory Committee for planning the urban
renewal area.
b. Provide opportunities for community-wide input in the urban renewal plan planning
process.
c. Have an informal open house at the Chamber of Commerce office to help inform the
public and business owners about the urban renewal planning process.
d. Include citizens in the urban renewal agency.
Economy
Promote the role of the Area as an energetic community of local businesses that is supported
by the residents of both La Pine and outlying areas and by tourists travelling through La Pine.
Objectives
a. Develop programs and incentives to encourage expansion of existing businesses, and
development of new business activity to create additional jobs in the Area.
b. Provide for a pleasing visual perception of La Pine by providing assistance for storefront
improvements to businesses in the Area.
c. Form public-private partnerships and use public investment to generate private
investment.
d. Encourage the creation of a focused area of commercial activity to both strengthen
existing businesses and create new business activity.
e. Promote an entrepreneurial climate for business expansion and growth, including a
potential business incubator building.
f. Identify opportunities to support tourist/recreational related businesses, activities, and
growth.
Create an Identifiable Town Center as a Hub of Community Activity
The Town Center would be a compact area that is centrally located and planned for easy
walking access. The uses would be comprised of a mixture of commercial businesses, civic
buildings, and other community uses.1
Within this Town Center, create a unique identity that strengthens the sense of place,
promotes economic development through resident and tourist visits, encourages return
patronage, and leverages private investment.
Objectives
a. Establish an identity that promotes a sense of character, providing a community for
existing businesses and residents and inviting visitors to bring additional commerce to
the Area.
b. Establish gateway features to delineate the Town Center and show pride in the
community by providing improved aesthetic features.
c. Improve sidewalks, streetscape, walkways, and bike pathways to provide easier access
to the commercial area and to promote activity within the Town Center.
d. Provide business and way finding signage.
e. Create gathering places that will provide focal points and draw patronage to the Area.
f. Assess parking needs to support the business district.
g. Assist in the development of public facilities that expand or enhance the services
provided in the Town Center and that serve the interests of the citizens of La Pine and
tourist activity in La Pine.
Housing/Mixed-Use Development
Encourage development in the Mixed-Use Commercial Residential District of the Area.
a. Encourage development of workforce housing opportunities, commercial support
services, and office opportunities in proximity to the housing.
b. Help facilitate the development of public spaces within the mixed-use area.
1 Language from La Pine Comprehensive Plan
Infrastructure
Assist in providing infrastructure (water, sewer, storm water) to encourage development in La
Pine.
a. Upgrade/provide infrastructure as necessary to allow for the development or
redevelopment of parcels within and adjacent to the urban renewal area.
Public Facilities
Provide opportunities for residents and visitors alike to shop and recreate in La Pine, supporting
public service providers and existing businesses and providing stimulus for new economic
activity.
a. Assist in development and redevelopment of public facilities that provide vital services
(fire, police, and medical), gathering spaces, and other services for the community,
including the proposed Rodeo and Events site.
III. FINANCING
The proposed maximum indebtedness, the limit on the amount of funds that may be spent on
administration, projects and programs in the Area is $7,017,000. The maximum indebtedness
does not include interest paid on any borrowing by the urban renewal agency. There is a
proposed financing plan in the Report that shows that the Plan is financially feasible. It is
understood that the Agency may make changes to the financing plan as needs and
opportunities arise, typically during the annual budgeting process.
Figure 1 - Proposed Urban Renewal Area
IV. IMPACT ON TAXING JURISDICTIONS
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 Area. The projections for impacts on the taxing jurisdictions are estimated through
fiscal year (FY) 2040-41.
Revenue sharing was a feature of the 2009 legislative changes in urban renewal law. Revenue
sharing is based on the actual tax increment revenues generated and occurs at stipulated
trigger points in the life of a Plan. Revenue sharing is based on the actual tax increment
revenues generated and occurs at stipulated trigger points in the life of a Plan. The first trigger
point is when the annual tax increment revenues are equal to 10% of the maximum
indebtedness established for the Area. It is projected that this urban renewal area may reach
the revenue sharing triggers in the final year of the Plan. If actual assessed value growth in the
urban renewal area exceeds the projections made in the urban renewal plan, revenue sharing
could occur earlier.
General obligation (GO) bonds and local option levies issued after October 2001 would not be
impacted by the proposed urban renewal district. The issuing jurisdiction will still receive their
share of the taxes on any GO bonds and local option levies issued after October 2001.
The School District 1 and the High Desert Education Service District are not directly affected by
the tax increment financing, but the amounts of their taxes divided for the urban renewal plan
are shown in the charts. 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 that are foregone because of the use of Tax Increment Financing are replaced
(as determined by a funding formula at the State level) with State School Fund revenues.
Tables 1a and 1b show the projected impacts to the taxing districts as a result of the proposed
La Pine Urban Renewal Plan.
Table 1a – Projected Impact on Taxing District Permanent Rate Levies
Source: ECONorthwest La Pine Schools and the Education Service District are not directly impacted, as they are allocated funding through
a state school funding formula based on per pupil counts.
FYE
DESCHUTES
COUNTY
COUNTY
LIBRARY
COUNTYWIDE
LAW
ENFORCEMENT
RURAL LAW
ENFORCEMENT
COUNTY
EXTENSION
/ 4H 911
CITY OF
LAPINE
LAPINE RURAL
FIRE DISTRICT
LAPINE PARKS
AND REC SUBTOTAL SCHOOL DISTRICT #1
2016 (4,652) (2,002) (3,457) (5,095) (82) (589) (7,024) (5,603) (1,092) (29,596) (17,338)
2017 (6,358) (2,736) (4,725) (6,963) (111) (805) (9,600) (7,658) (1,492) (40,448) (23,696)
2018 (8,132) (3,499) (6,044) (8,907) (143) (1,029) (12,279) (9,795) (1,909) (51,737) (30,309)
2019 (9,978) (4,293) (7,415) (10,928) (175) (1,263) (15,065) (12,018) (2,342) (63,477) (37,186)
2020 (11,897) (5,119) (8,842) (13,030) (208) (1,506) (17,962) (14,330) (2,792) (75,686) (44,339)
2021 (13,893) (5,977) (10,325) (15,215) (243) (1,758) (20,975) (16,734) (3,260) (88,380) (51,777)
2022 (15,968) (6,871) (11,867) (17,489) (280) (2,021) (24,109) (19,234) (3,748) (101,587) (59,513)
2023 (18,127) (7,799) (13,472) (19,853) (318) (2,294) (27,369) (21,834) (4,254) (115,320) (67,558)
2024 (20,372) (8,765) (15,140) (22,312) (357) (2,579) (30,759) (24,538) (4,781) (129,603) (75,926)
2025 (22,707) (9,770) (16,875) (24,869) (398) (2,874) (34,284) (27,351) (5,329) (144,457) (84,628)
2026 (25,136) (10,815) (18,680) (27,529) (440) (3,182) (37,950) (30,276) (5,899) (159,907) (93,678)
2027 (27,661) (11,901) (20,557) (30,294) (485) (3,501) (41,763) (33,317) (6,492) (175,971) (103,090)
2028 (30,287) (13,031) (22,509) (33,171) (531) (3,834) (45,728) (36,481) (7,108) (192,680) (112,878)
2029 (33,019) (14,207) (24,539) (36,162) (579) (4,179) (49,853) (39,771) (7,749) (210,058) (123,058)
2030 (35,860) (15,429) (26,650) (39,274) (628) (4,539) (54,142) (43,193) (8,416) (228,131) (133,646)
2031 (38,814) (16,700) (28,846) (42,509) (680) (4,913) (58,602) (46,751) (9,109) (246,924) (144,657)
2032 (41,887) (18,022) (31,129) (45,875) (734) (5,302) (63,241) (50,452) (9,830) (266,472) (156,108)
2033 (45,082) (19,397) (33,504) (49,374) (790) (5,706) (68,066) (54,301) (10,580) (286,800) (168,017)
2034 (48,406) (20,827) (35,974) (53,014) (848) (6,127) (73,084) (58,304) (11,360) (307,944) (180,403)
2035 (51,862) (22,314) (38,542) (56,799) (909) (6,564) (78,302) (62,467) (12,171) (329,930) (193,284)
2036 (55,456) (23,861) (41,214) (60,736) (972) (7,019) (83,729) (66,797) (13,015) (352,799) (206,680)
2037 (59,195) (25,469) (43,992) (64,830) (1,037) (7,493) (89,373) (71,299) (13,892) (376,580) (220,612)
2038 (63,082) (27,142) (46,881) (69,088) (1,105) (7,985) (95,243) (75,982) (14,805) (401,313) (235,102)
2039 (67,126) (28,881) (49,886) (73,516) (1,176) (8,496) (101,347) (80,852) (15,753) (427,033) (250,170)
2040 (67,836) (29,187) (50,414) (74,294) (1,189) (8,586) (102,419) (81,707) (15,920) (431,552) (252,817)
Total (822,793) (354,014) (611,479) (901,126) (14,418) (104,144) (1,242,268) (991,045) (193,098) (5,234,385) (3,066,470)
Table 1b – Projected Impact on Taxing District Permanent Rate Levies
Source: ECONorthwest
Table 2 shows the tax revenues projected to be available to taxing jurisdictions once the Area is
terminated. These are estimates only; changes in the economy may impact the projections. The
table depicts the taxes from the frozen base of the Area that the taxing jurisdictions receive
throughout the life of the Plan, and the taxes estimated from the additional taxes which will be
received by the taxing jurisdictions once the Plan is terminated, estimated to be in FY 2041 -42.
The final column estimates the total amount of taxes estimated for the year that the Plan is
expected to be terminated.
FYE SCHOOL DISTRICT #1 HIGH DESERT ESD
CENTRAL
OREGON
COMMUNITY
COLLEGE SUBTOTAL TOTAL
2016 (17,338) (351) (2,258) (19,947) (49,543)
2017 (23,696) (479) (3,086) (27,261) (67,709)
2018 (30,309) (613) (3,947) (34,869) (86,606)
2019 (37,186) (752) (4,843) (42,781) (106,258)
2020 (44,339) (897) (5,774) (51,010) (126,696)
2021 (51,777) (1,048) (6,743) (59,568) (147,948)
2022 (59,513) (1,204) (7,750) (68,467) (170,054)
2023 (67,558) (1,367) (8,798) (77,723) (193,043)
2024 (75,926) (1,536) (9,887) (87,349) (216,952)
2025 (84,628) (1,712) (11,021) (97,361) (241,818)
2026 (93,678) (1,896) (12,199) (107,773) (267,680)
2027 (103,090) (2,086) (13,425) (118,601) (294,572)
2028 (112,878) (2,284) (14,699) (129,861) (322,541)
2029 (123,058) (2,490) (16,025) (141,573) (351,631)
2030 (133,646) (2,704) (17,404) (153,754) (381,885)
2031 (144,657) (2,927) (18,838) (166,422) (413,346)
2032 (156,108) (3,159) (20,329) (179,596) (446,068)
2033 (168,017) (3,400) (21,880) (193,297) (480,097)
2034 (180,403) (3,650) (23,493) (207,546) (515,490)
2035 (193,284) (3,911) (25,170) (222,365) (552,295)
2036 (206,680) (4,182) (26,915) (237,777) (590,576)
2037 (220,612) (4,464) (28,729) (253,805) (630,385)
2038 (235,102) (4,757) (30,616) (270,475) (671,788)
2039 (250,170) (5,062) (32,578) (287,810) (714,843)
2040 (252,817) (5,116) (32,923) (290,856) (722,408)
Total (3,066,470) (62,047) (399,330) (3,527,847) (8,762,232)
Table 2 – Additional Revenues Projected After Termination of Tax Increment Financing
Table 3 shows the impact of the first year of tax increment funds projected to be received in
2016 on the 2014/15 permanent rate levy of the taxing jurisdiction. The impact should be less
than this chart shows because the permanent rate levy usually increases each year, so the 2016
permanent rate levy would be higher than the 2014 levy depicted.
Table 3 – Percent of Permanent Rate Levy
Jurisdiction
2013/14
Permanent
Rate Levy
2016 Tax
Increment
Revenue
Percentage of
Permanent Rate
Levy
Deschutes County 23,747,378 4,652 0.02%
County Library 10,143,587 2,002 0.02%
Countywide Law Enforcement 17,520,004 3,457 0.02%
Rural Law Enforcement 8,381,815 5,095 0.06%
County Extension 4H 414,250 82 0.02%
911 2,984,946 589 0.02%
City of La Pine 241,294 7,024 2.91%
La Pine Rural Fire District 1,797,468 5,603 0.31%
La Pine Parks and Rec 212,002 1,092 0.52%
School District #1 60,640,139 17,338 0.03%
High Desert ESD 1,720,682 351 0.02%
Central Oregon Community College 11,070,002 2,258 0.02%
Source: ECONorthwest
Jurisdiction Tax Rate
From Frozen
Base
From Expiration
of URA Total
Deschutes County 1.2783$ 38,000$ 75,704$ 113,704$ Jail -$ -$ -$ -$
County Library 0.5500$ 16,350$ 32,572$ 48,922$
Countywide Law Enforcement 0.9500$ 28,241$ 56,261$ 84,502$
Rural Law Enforcement 1.4000$ 41,618$ 82,911$ 124,529$ La Pine Library -$ -$ -$ -$
County Extension 4H 0.0224$ 666$ 1,327$ 1,993$
911 0.1618$ 4,810$ 9,582$ 14,392$
City of La Pine 1.9300$ 57,374$ 114,299$ 171,673$
La Pine Rural Fire District 1.5397$ 45,771$ 91,185$ 136,956$
La Pine Parks and Rec 0.3000$ 8,918$ 17,767$ 26,685$
School District #1 4.7641$ 141,624$ 282,141$ 423,765$
High Desert ESD 0.0964$ 2,866$ 5,709$ 8,575$
Central Oregon Community College 0.6204$ 18,443$ 36,741$ 55,184$
V. PROCESS FOR REVIEW
The process for final review of the Plan and Report include the following steps:
June 11 La Pine Urban Renewal Agency review
June 12-13 Send formal notice to taxing jurisdictions
June 18 Planning Commission review
June/July Presentation to Deschutes County Commission
June/July Notice to property owners
July 9 City Council Public Hearing
The draft La Pine Urban Renewal Plan and Report are enclosed with this letter. If you would like
to provide written comments, they will be responded to by the La Pine City Council. Please
provide any written comments by June 27, 2014. For more information, please contact me at
(541) 536-1432 or rlallen@ci.la-pine.or.us.
Sincerely,
Rick Allen, Interim City Manager
City of La Pine
16345 6th Street,
La Pine, OR 97739
Attachments: A: La Pine Urban Renewal Plan B: Report on the La Pine Urban Renewal Plan