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HomeMy WebLinkAboutLa Pine Urban Renewal Plan Rev 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 i l I ! f t La Pine Urban Renewal Plan <I f r l ,r. Adopted by the City of La Pine July 23, 2014 Ordinance No. List of Participants Mayor: Ken Mulenex City Council: Kathy Agan Greg Jones Stu Martinez Karen Ward Conrad Parker Planning Commission: Doug Ward, Chair Gloria Fleming, Vice Chair Rolando Alonzo Don Greiner Norm McClung Interim City Manager: Rick Allen City Planner: Deborah McMahon Office Utility Specialist: Ashley Williams Administrative Assistant: Patti Morgan Urban Renewal Citizens' Advisory Committee: Tony De Bone Deschutes County Commissioner Todd Dunkelberg Director Deschutes County Library Gloria Fleming Planning Commission City of La Pine Ann Gawith Director La Pine Chamber of Commerce Mike Jensen Bend-La Pine School District Board of Directors Corrine Martinez Business -Wilderness Garbage Ken Mulenex Mayor City of La Pine Vicky Russell Business Vic Russell Construction Dave Schneider General Manager Mid State Electric Bob Schulz Director La Pine Parks and Recreation District Gary Tingey Business -High Lakes Realty Dan Varcoe Business -Newberry Eagle Steve Dodd Business -Ace Hardware Vacant La Pine Rural Fire Protection District Consultant Team: Elaine Howard Consulting LLC, Elaine Howard ECONorthwest, Nick Popenuk, Tessa Krebs, Rob Wyman Jeannette Launer, Legal Counsel Leslie Vanden Bos, Editor TABLE OF CONTENTS I. DEFINITIONS II. INTRODUCTION III. GOALS AND OBJECTIVES IV. OUTLINE OF MAJOR URBAN RENEWAL PROJECT ACTIVITIES V. URBAN RENEWAL PROJECTS VI. PROPERTY ACQUISITION AND DISPOSITION VII. RELOCATION METHODS VIII. TAX INCREMENT FINANCING OF PLAN IX. FUTURE AMENDMENTS TO PLAN X. LAND USES XI. RELATIONSHIP TO LOCAL OBJECTIVES APPENDIX A: LEGAL DESCRIPTION I , f ~. ~ 3 I5 t ,t (: 9 !9 ,f 11 f t 11 l 12 I 13 I 15 ! 15 25 t I I l ! t I I. DEFINITIONS "Area" means the properties and rights of way located with the La Pine urban renewal boundary. "Citizens' Advisory Committee" means the committee formed from private individuals to provide input on the La Pine Urban Renewal Plan. Those members are identified on the acknowledgement page of the urban renewal plan. "City" means the City of La Pine, Oregon. "City Council" or "Council" means the City Council of the City of La Pine. "Comprehensive Plan" means the City of La Pine Comprehensive Land Use Plan and its implementing ordinances, policies, and standards. "County" means Deschutes County. "Fiscal year" 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 an urban renewal area at the time of adoption. The county assessor certifies the assessed value after the adoption of an urban renewal 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. "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. "ORS" means the Oregon revised statutes, specifically Chapter 457, which relates to urban renewal. "Planning Commission" means the La Pine Planning Commission. "Tax increment financing (TIF)" means the funds that are associated with the division of taxes accomplished through the adoption of an urban renewal plan. "Tax increment revenues" means the funds allocated by the assessor to an urban renewal area due to increases in assessed value over the frozen base within the area. "Urban renewal agency" or "agency" means an urban renewal agency created under ORS 457.035 and 457.045. This agency is responsible for administration of the urban renewal plan. "Urban renewal area" means a blighted area included in an urban renewal plan or an area included in an urban renewal plan under ORS 457.160. City of La Pine Urban Renewal Plan July 23, 2014 "Urban renewal plan" or "plan" means a plan, as it exists or is changed or modified from time to time, for one or more urban renewal areas, as provided in ORS 457.085, 457.095, 457.105, 457.115,457.120,457.125,457.135 and 457.220. "Urban renewal project" or "project" means any work or undertaking carried out under ORS 457.170 in an urban renewal area. "Urban renewal report" means the official report that accompanies the urban renewal plan pursuant to ORS 457.085(3). , I I City of La Pine Urban Renewal Plan 2 July 23, 2014 II. INTRODUCTION The La Pine Urban Renewal Plan (Plan) has been developed for the La Pine City Council (City Council) with the cooperative input of a Citizens' Advisory Committee. The Plan contains goals, objectives, and projects for the development of the La Pine Urban Renewal Area ( Area). The overall purpose ofthe Plan is to use tax increment financing to overcome obstacles to the proper development of the Area. The purpose of urban renewal is to improve specific areas of a city that are poorly developed or underdeveloped. These areas can have old or deteriorated buildings, public spaces that need improvements, streets and utilities in poor condition, a complete lack of streets and utilities altogether, or other obstacles to development. The Area has infrastructure needs, lacks adequate streets cape and parking, and does not have a program for assistance to business owners. Urban renewal allows for the use of tax increment financing (TIF), a financing source that is unique to urban renewal, to fund its projects. 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. In general, urban renewal projects 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 improvements to public spaces. The specific projects to be approved in this Plan are outlined in Sections IV and V. Urban renewal is put into effect when the local government (the City of La Pine, in this case) adopts 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 Area, shown in Figure 1, consists of approximately 577.13 total acres: 498.02 acres in parcels and 79.11 acres of public right-of-way. City of La Pine Urban Renewal Plan 3 July 23,2014 The Plan will be administered by the La Pine Urban Renewal Agency (Agency), which was established by the La Pine City Council as the City's Urban Renewal Agency (Ordinance No. --">. Substantial changes to the Plan, if necessary, must be approved by the City Council, as outlined in Section IX of this Plan. The Plan is accompanied by the City of La Pine's Urban Renewal Report (Report) that contains additional information, as required by ORS 457.085. The technical information in the Report includes: • A description of the physical, social, and economic conditions in the area; I • The expected impact of the Plan, including fiscal impact in light of increased services; J• The reasons for selection of each Area in the Plan; • The relationship between each project to be undertaken and the existing conditions; • The total cost of each project and the source 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 urban renewal area; and • A relocation report. It is anticipated that the Plan will take 25 years of tax increment collections (through FY 2039-40) to implement. The maximum amount ofindebtedness (amount of tax increment fmancing for projects and programs) that may be issued for the Plan is $7,019,000 (seven million nineteen thousand dollars). City of La Pine Urban Renewal Plan 4 July 23, 2014 In. GOALS AND OBJECTIVES The goals of the Plan represent the basic intents and purposes. Accompanying each goal are objectives, which generally describe how the Agency intends to achieve the goals. The urban renewal projects identified in Sections IV and V of the Plan are the specific means of meeting the objectives. The goals relate to adopted plans, as detailed in Section XI, and were developed with input from the La Pine Urban Renewal Plan Citizens' Advisory Committee, and community input from the urban renewal open house. The goals and objectives will be pursued as economically as is feasible and at the discretion of the urban renewal agency. The goals and objectives are not ranked by priority. 1. 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 ChamberlEvent Center to help inform the urban renewal planning process. d. Include citizens in the urban renewal agency. 2. 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. City of La Pine Urban Renewal Plan 5 July 23, 2014 f. Identify opportunities to support tourist/recreational related businesses, activities, and growth. 3. 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.l 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. 4. HousinglMixed-Use Development Encourage development in the Mixed-Use Commercial Residential District of the Area. Objectives 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. 5. Infrastructure Assist in providing infrastructure (water, sewer, storm water) to encourage development in La Pine. Objectives 1 Language from La Pine Comprehensive Plan City of La Pine Urban Renewal Plan 6 July 23, 2014 I I I t a. Upgrade/provide infrastructure as necessary to allow for the development or redevelopment of parcels within and adjacent to the urban renewal area. 6. 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. Objectives 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. City of La Pine Urban Renewal Plan 7 July 23,2014 Figure 1 -Urban Renewal Area Boundary / .,./" ~.Ii ••"~ I 1:1 0 ..........,;; ,g (,) : ~ en L-...---Mem n ,.. o cp: Qf ~I a,-: .: J QE! Q. u vI: ~ c: enl -l -11).c: 0 ,: , i ,I r--../---1_1/.' -.''\~ ,/ / II fI .. " ~ /l , /'-,/' / ~....u .......it....., /' : zyl / .//,' IS ./ I .,,,--// .i J/''#'ff7 7 7 / 7 7 7 7 7 7-;>'""7-7; . J.-d ..J. _ '1=-=, /I ~. I ~ ""l lllllftl!!U oI i 1\ .. ' ..................i .....~i.._ .._................. . ' . • :CON8I".lC5 \ /r-----------~--------------_,i' La Plne,OR Urban Renewal Boundary ...CIMIM .........I Tabl Boundary AIN:: 517:'3 Acres --1 1""1 Inside Oty of La Pine :L........J 26250Aaes Outside QtyofLa Pine: 314.63 Acres , La Pine City Boundary NA 1/J ..I ,.. , 0ift.eSQ,~!!CO~~....,.Iob_.u.. LIIECO;~~west • FI N . .>"NC[ • r_~.N'lING I City of La Pine Urban Renewal Plan 8 July 23 , 2014 I IV. OUTLINE OF MAJOR URBAN RENEWAL PROJECT ACTMTIES The projects within the Area include: A. District identity/transportation improvements B. Planning and development assistance programs C. Public facilitiesllnfrastructure D. Debt service and project administration E. Property acquisition v. URBAN RENEWAL PROJECTS Urban renewal projects authorized by the Plan are described below. Public improvements authorized under the Plan include assistance to help create a district identity for the Area, upgrade of utilities to encourage development, and economic assistance to developers. The projects are in conformance with the La Pine Comprehensive Plan, The La Pine Corridor Plan, and the La Pine Transportation Systems Plan as detailed in Section XI of this Plan. As shown in the Report, urban renewal funds will be combined with existing and other future sources of funding to finance project costs. Projects authorized by the Plan are: A. District Identitynransportation Improvements 1. Sidewalk improvements Improve sidewalks within the Area to allow for greater access for pedestrians to the commercial district. 2. Signage: business and way-finding Support effective signage for businesses and for way-finding to allow citizens and visitors to frequent the commercial area and to know of other opportunities the La Pine community has to offer. 3. Streetscape (Improve the streetscape in the Area to encourage citizens and visitors to visit the Area. Streetscape includes sidewalks, signage, trees, benches, landscaping, public art, archways, bus shelters, lighting and other improvements to enhance the overall appearance of the Area and f encourage development and redevelopment of the Area. 4. Bicycle paths r Add bike paths within the Area to encourage greater access to the commercial district. 5. Gathering spaces f Develop gathering spaces to add to the overall positive environment of the Area, encouraging f visits to the Area by citizens of La Pine and visitors to the Area. I6. Parking Assess parking needs for the Area. I City of La Pine Urban Renewal Plan 9 July 23, 2014 B. Planning and development assistance programs to support economic development 1. Assist with development of mixed-use area Encourage development of the mixed-use area by providing amenities to help make the area more desirable. 2. Encourage/support business expansion Work with business owners to develop and redevelop properties within the Area, leveraging public investment with private investment. 3. Storefront Improvements Work with business owners to improve the overall appearance of the exteriors of their properties. 4. Support for incubator businesses Look for opportunities to help facilitate the development of new businesses within La Pine. C. Public Facilitieslln/rastructure L RodeolEvent Site development 2. Development and redevelopment of public facilities that provide vital services (fire, police, and medical), gathering spaces, and other services for the community. 3. Upgrade/provide infrastructure as necessary to allow for the development or redevelopment of parcels within and adjacent to the urban renewal area. D. Debt service and project administration This project will allow for the repayment of costs associated with the preparation of an urban renewal plan, including the potential repayment of the initial planning costs for the development ofthe urban renewal plan, including the adoption, and implementation of the La Pine Urban Renewal Plan. It also includes ongoing administration and any fmancing costs associated with ! f I I issuing long-term debt, relocation costs, and other administrative costs. E. Property Acquisition This project will fund acquisition and assembly of key properties for redevelopment, public open space, public parking, trail corridor, housing, or other use consistent with the goals and objectives of this plan, consistent with the property acquisition section of this Plan (Section VI). City of La Pine Urban Renewal Plan 10 July 23, 2014 VI. PROPERTY ACQUISITION AND DISPOSITION The Plan authorizes the acquisition and disposition of property as described in this section. Property includes any and all interests in property, including fee simple ownership, lease, easements, licenses, or other rights to use. A. Property acquisition for public improvements The Agency may acquire any property within the Area for the public improvement projects undertaken pursuant to the Plan by all legal means, including use of eminent domain. Good faith negotiations for such acquisitions must occur prior to institution of eminent domain procedures. B. Property acquisition from willing sellers The Plan authorizes Agency acquisition of any interest in property within the Area that the Agency finds is necessary to support private redevelopment, but only in those cases where the property owner wishes to convey such interest to the Agency. The Plan does not authorize the Agency to use the power of eminent domain to acquire property from a private party to transfer property to another private party for private redevelopment. Property acquisition from willing sellers may be required to support development of projects within the Area. C. Land disposition The Agency will dispose of property acquired for a public improvement project by conveyance to the appropriate public agency responsible for the construction and/or maintenance of the public improvement. The Agency may retain such property during the construction ofthe public improvement. The Agency may dispose of property acquired under Subsection B of Section VI of this Plan by conveying any interest in property acquired. Property shall be conveyed at its fair reuse value. Fair reuse value is the value, whether expressed in terms of rental or capital price, at which the urban renewal agency, in its discretion, determines such land should be made available in order that it may be developed, redeveloped, cleared, conserved, or rehabilitated for the purposes specified in such plan. Because fair reuse value reflects limitations on the use of the property to those purposes specified in the Plan, the value may be lower than the property's fair market value. Where land is sold or leased, the purchaser or lessee must agree to use the land for the purposes designated in the Plan and to begin and complete the building of its improvements within a period of time that the Agency determines is reasonable. VII. RELOCATION METHODS When the Agency acquires occupied property under the Plan, residential or commercial occupants of such property shall be offered relocation assistance, as required under applicable state law. Prior to such acquisition, the Agency shall adopt rules and regulations, as necessary, for the administration of relocation assistance. City of La Pine Urban Renewal Plan 11 July 23, 2014 vm. TAX INCREMENT FINANCING OF PLAN Tax increment financing consists of using annual tax increment revenues to make payments on loans, usually in the form of tax increment bonds. The proceeds of the bonds are used to finance the urban renewal projects authorized in the Plan. Bonds may be either long-term or short-term. Tax increment revenues equal most of the annual property taxes imposed on the cumulative increase in assessed value within an urban renewal area over the total assessed value at the time an urban renewal plan is adopted. (Under current law, the property taxes for general obligation (GO) bonds and local option levies approved after October 6,2001 are not part ofthe tax increment revenues.) A. General description ofthe proposed financing methods The Plan will be financed using a combination of revenue sources. These include: Tax increment revenues; Advances, loans, grants, and any other form of financial assistance from the federal, state, or local governments, or other public bodies; Loans, grants, dedications, or other contributions from private developers and property owners, including, but not limited to, assessment districts; and Any other public or private source. Revenues obtained by the Agency will be used to payor repay the costs, expenses, advancements, and indebtedness incurred in (1) planning or undertaking project activities, or (2) otherwise exercising any ofthe powers granted by ORS Chapter 457 in connection with the implementation of this Plan. B. Tax incrementfinancing and maximum indebtedness The Plan may be financed, in whole or in part, by tax increment revenues allocated to the Agency, as provided in ORS Chapter 457. The ad valorem taxes, if any, levied by a taxing district in which all or a portion of the Area is located, shall be divided as provided in Section Ic, 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 the Agency based upon the distribution schedule established under ORS 311.390. 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 $7,017,000. This amount is the principal of such indebtedness and does not include interest or indebtedness incurred to refund or refinance existing indebtedness. C. Prior indebtedness Any indebtedness permitted by law and incurred by the Agency or the City of La Pine in connection with the preparation of this Plan or prior planning efforts that support the preparation or implementation of this Plan may be repaid from tax increment revenues from the Area when, and if, such funds are available. City of La Pine Urban Renewal Plan 12 July 23,2014 IX. FUTURE AMENDMENTS TO PLAN The Plan may be amended as described in this section. A. Suhstantial Amendments Substantial Amendments are amendments that: • Add land to the urban renewal area, except for an addition of land that totals not more than 1% of the existing area of the urban renewal area; or • Increase the maximum amount of indebtedness that can be issued or incurred under the Plan. 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 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 of La Pine, as required by ORS 457.120. Notice of adoption of a Substantial Amendment shall be provided in accordance with ORS 457.095 and 457.115. B. Council Approved Amendments Council approved amendments are those amendments that provide for the addition of improvements or activities that cost more than $500,000 in 2014 dollars. The $500,000 amount will be adjusted annually from the year 2014 according to the "Engineering News Record" construction cost index for the Northwest Area. C. Minor Amendments Minor Amendments are amendments that are not Substantial Amendment nor Council Approved Amendments in scope. They require approval by the Agency by resolution. D. Amendments to the La Pine Comprehensive Plan and/or La Pine Zoning Ordinance Amendments to the La Pine Comprehensive Plan and/or La Pine Zoning Ordinance that affect the Urban Renewal Plan and/or the Urban Renewal Area shall be incorporated automatically within the Urban Renewal Plan without any separate action required by the Agency or the City CounciL City of La Pine Urban Renewal Plan 13 July 23,2014 Figure 2 -Comprehensive Plan Designations ~....~il: La Pine Cily Boundary I!""~.,... N o 1/3­A I I I "'~ a.ta SaJ~ec.otlcra'r-c. £SRI u ....n..... .1D. cw~..GMiII!..• ECONorthwest :CON~t'dC5 • fll'\.".NCC • r..AN 'JINr:; ~ .. i o IP-as: c0.­... !:> a.0=Q ..u -IC .. -0> co Memoria l JJ;~ -~ La Pine. OR Comprehensive Plan Designations wlln Urban Renewal Boundary ....:.........,........ La Pine Urban Renewal Plan 14 July 23 , 2014 x. LANDUSES The land uses in the Area are shown in Table 1 of the Report accompanying the Plan. The land uses are defined by the Deschutes County Assessor. They are: Industrial, Commercial (partially exempt, improved, miscellaneous, and vacant), Manufactured Residential, Manufactured Structure, State Responsibility, Tract, Multi-Family, and Exempt. The zoning categories are shown in Table 2 of the Report accompanying the Plan. The zones are Traditional Commercial, Forest Use 1, Public Facility, Master Plan Residential, and Public LandIBureau of Land Management (BLM). The densities and building requirements are detailed in the City of La Pine Zoning Ordinance, Ordinance No. 2011-03. This ordinance may be updated from time to time, and those updates are hereby incorporated into this Plan. XI. RELATIONSBJP TO LOCAL OBJECTIVES The Plan relates to local planning and development objectives contained within the City of La Pine's Comprehensive Plan, La Pine Zoning Ordinance, the La Pine Corridor Plan, and the La Pine Transportation Systems Plan. The following section describes the purpose and intent ofthese plans, the particular goals and policies within each planning document to which the proposed Plan relates, and an explanation of how the Plan relates to these goals and policies. The numbering of the goals, policies, and implementation strategies will reflect the numbering that occurs in the original document. Italicized text is text that has been taken directly from an original planning document. The Comprehensive Plan designations are shown in Figure 2. This is not a comprehensive list of all parts of the above referenced documents that are supported by this Plan. This list includes the major Goals and Policies from the Comprehensive Plan that are supported, however, there may be other Goals and Policies that are not listed but are still supported by this Plan. A. City ofLa Pine Comprehensive Plan Goall Citizen Involvement The City shall: 1. Establish a process to involve a cross section ofaffected citizens, ensure effective communication between citizens and elected officials, and assure citizens will receive a response from policy makers. 2. Assure compliance with all state requirements for open meetings and open records, as well as ! f defining the process for standingfor advisory committees in La Pine land use actions. 3. Provide two bodies for assisting in citizen involvement in La Pine: a. The Committee for Citizen Involvement (CCI) shall be an advisory body to the City Council to assure that the intent andpurposes ofthis chapter are met. b. Citizen Advisory Committees (CAC's) shall insure plan amendments are developed in accordance with an overall City plan and advise the Council on individual land use matters. The La Pine Planning Commission is one example ofsuch an advisory committee. The Plan conforms with the intent of Goal I Citizen Involvement because, even though this was not the development of or amendments to the comprehensive plan, a Citizens Advisory I~Committee was formed to provide input to the urban renewal plan. In addition, there was a public , i topen house, an open Planning Commission meeting, and a City Council hearing that was noticed f f tLa Pine Urban Renewal Plan 15 July 23,2014 ! !, i I I t to all citizens of La Pine. In addition, the city council has included citizens on the board of the urban renewal agency. Goal V State Planning Goals 5, Natural Resources, Scenic and Historic Areas, and Open Spaces Goal # 1: Protect and enhance identified Goal 5 resources and other features ofthe natural environment using a variety ofmethods and strategies. Policies • The City shall coordinate with the ELM and Forest Servicefor the preservation ofthe natural forest environment on lands under their respective jurisdictions that are within and acijacent to the City, including transitions from urban to rural environments. • Programs are needed to address the protection ofthe natural environment in a balanced and fair fashion given the urban development goals ofthe City. • The City shall coordinate efforts with and among the La Pine Water and Sewer District, and Deschutes County to ensure appropriate provisions for connections to the La Pine sewer system for new and existing development in order to maintain safe groundwater. • The City shall coordinate wildfire protection plans with the La Pine Rural Fire protection District and shall implement wildfire protection regulations for new development. The Plan conforms with Goal V by allowing for development and redevelopment assistance, which may be used to help meet needs expressed by this goal. Goal VI Parks, Recreation and Open Space Goal # 1: Create a system ofparks, recreational facilities, and open space areas that provide quality active and passive recreational experiences for all urban area residents. Policies • The City shall coordinate the development ofnew parks and recreation opportunities. and programs with the La Pine Park and Recreation District. • The City shall encourage the continual involvement ofprivate recreation providers to citizens. • The City shall encourage recreational opportunities within the community to acknowledge and encourage use by visitors and tourists to the community. • Given the various agencies involved in providing open space, parks, trails, and recreational opportunities -a high level ofcoordination and planning will be required in order to maximize efficiency and reduce duplication. • The addition ofnew parks and recreational opportunities shall be sought in the most cost effoctive way possible, including land grants from County, State and Federal agencies. • Local parks and recreational opportunities tend to be distributed throughout the community without connecting links other than streets; La Pine's citizens desire to connect existing and future parks and recreation facilities by sidewalks, trails. and other mechanisms. Such connections provide greater opportunities for citizens, particularly children, to safely access parks without vehicle use. • Open space and/or recreational areas should be available to residents within Y4 mile oftheir homes unless an exception is granted by the City as new development occurs. La Pine Urban Renewal Plan 16 July 23, 2014 • New parks, linkages, and recreational facilities should be incorporated into new developments as a way to distribute resources throughout the community and reduce vehicle miles traveled. • Older neighborhoods and redevelopment areas should consider incorporating parks, trails, and other recreational facilities as a way to enhance the community. • New parks to serve new residents should be developed without community subsidy, while new trails and regional community recreational facilities may require additional funding through those sources available to the City and LPRD. The Plan conforms with Goal VI Parks, Recreation, and Open Space by designating gathering spaces s a project in the Plan. Linkages will be supported by streetscape improvements. Funding for the support for entrepreneurial ventures will potentially support the recreation alternatives of citizens. The development ofthe RodeofEvents facility will provide additional activities to citizens and tourists who will support the local economy through their visits. Chapter VII Public Facilities and Services Goal 1: Coordinate intra-agency efforts, including coordination with private service and Special District providers, and create a system ofpublic facilities for the planning horizon. • The La Pine Rural Fire Protection District shall continue to provide fire protection service within the City ofLa Pine. • Although many ofthe public facilities and services are not currently provided by the City, the City shall take an active role in coordinating and ensuring that such services are adequate for existing residents and businesses without adverse effects from anticipatedfuture growth. • Providing needed services in an economically viable and effective manner is good business and a good growth management tool. Goal 2: Create a system ofconservation practices for public resources, services, and related facilities. • Services such as public sewer collection facilities, public water sources, solid waste disposal, other point ofcontact public services, and services related to emergency response will need to be carefully managed to ensure supply and duration. The Plan conforms with Goal VII by stating that providing for public facilities development is one of the goals of the Plan and is in the project list for the Plan. Assisting in the provision of infrastructure to the RodeofEvent site will assist in the development of the site, a goal for the community. Goal VII Transportation Goal 1: Create a safe, convenient, balanced, functional and economical transportation system to maximize and extend the life oftransportationfacilities and improve livability throughout the La Pine community. • Vehicle use is the primary and most importantform oftransportation for the majority ofLa Pines citizens, but increased alternate mode use is essential to the livability ofthe community and to preserve valuable resources. • The street system shall be fully functional for the safe and efficient delivery ofemergency services. La Pine Urban Renewal Plan 17 July 23,2014 • Alternate mode use is essential for providing a full complement oftransportation choices and that land use regulations need to require an analysis oftransportation impacts, needs, and mitigation options. • The proper function and increased mobility ofHighway 97 to and through the community contributes to the local economy and bring goods and services into the community bolstering local commerce and tourism. • Balancing the needs ofthe local community with regional transportation needs must include open dialogue with citizens, state agencies/ODOr, Deschutes County, local business interests, special interest groups, and tourism professionals. • Trqffic calming measures in core commercial areas and residential neighborhoods can reduce vehicular speeds on roadways and create a safe pedestrianlbicycle environment. • The community, as a whole, will benefit from transportation systems that provide sidewalks, trails, bike lanes and transit amenities to encourage alternate mode use and promote a high level oflivability. • The community will benefit from streets that are designed to permit emergency service vehicles to access all parts ofthe community in an efficient manner. • Street trees, pedestrian amenities, separated sidewalks; curb extensions, traffic calming, and other related devices can be useful design elements especially when supported by a cost benefit analysis showing they are appropriate. • A transportation system that includes alternate modes in addition to vehicle needs is a State requirement. The term "Alternate Mode" includes anything, besides single occupant vehicles, capable ofmoving people and goods such as rail, pedestrian facilities, bike lanes, air transport, transit, and the like. I Bicycle and Pedestrian Policies f • Encourage pedestrian and bicycle movement as a sqfe, feasible alternative to the f automobile. • Require that all proposed subdivisions consider bicycle and pedestrian paths, integrated l with other bicycle and pedestrian path systems within the City. t • Insure that bicycle and pedestrian paths, not along street right-ofways are well lit and provide visual surveillance from the street. • Preserve space along existing and proposed Arterial streets and require at least one combined bicycle and pedestrian path. • Require all proposed activity centers generating large amounts oftraffic to provide sqfe and convenient off-street bicycle parking space and routes in their design. • Insure neighborhoods and activity centers, including public loading and pickup areas, are served by pedestrian and bicycle routes. • Provide curb cuts at all corners, intersections, or locations where bicycle and pedestrian routes andpaths intersect with streets. • Provide for paving ofpedestrian and bicycle ways where appropriate. • Improve signs, markings, and safety features on existing bicycle andpedestrian paths. The Plan confonns with Goal VII Transportation by providing infrastructure improvements to the Area, including sidewalk and streetscape improvements and bike path improvements that will La Pine Urban Renewal Plan 18 July 23, 2014 support economic activity, create a sense of identity, and help with the efficiency of transportation system in the Area, thereby attracting more businesses and retail activity in the Area. Goal IX Economy Goal # J: Provide adequate industrial and commercial land inventories to satisfy the urban development needs ofLa Pine for the 20-year planning horizon. Goal # 2: Develop an "Economic Development Strategic Plan" and other mechanisms necessary for supporting and enhancing the local economy. • Successful economic development strategies require cooperation with a variety ofagencies and other groups to develop a plan that best meets the requirements ofa growing community. • Successful economic opportunities rely upon the communities' ability to support and connect various elements ofthe economic development into an integrated framework. • Promoting an entrepreneurial climate for existing and new businesses is a key factor in strategic planning. • Providing a strong public partnership with local businesses is key to successful economic development. • Ensuring a high quality oflife and the small town atmosphere is essential to addressing citizen concerns about growth and economic development. The Plan conforms with Goal IX Economy by providing infrastructure improvements to the Area that will support economic activity in the Area. The Plan also allows for assistance programs for businesses located in the Area to improve their appearance and condition, as well as financial and technical assistance for entrepreneurial business activity in the Area. These programs will help grow the economy in La Pine, provide employment opportunities, and enhance the well-being of the community. Goal X Housing Goal # J: Encourage a wide range housing types satisfying the urban development needs ofthe La Pine community. • It is essential to develop strategies that increase the variety ofhousing choices in the community. These strategies must include an inventory and analysis ofneeded housing types, existing housing supplies, and strategies for meeting the changing community demographic. • It is necessary to accommodate growth andprovide mechanisms to ensure that a variety of housing options for all income levels are available in both existing neighborhoods and new residential areas. • It is necessary to encourage development and redevelopment ofresidential areas to make them safe, convenient, and attractive places to live and located close to schools, services, parks, shopping and employment centers. • La Pine desires to encourage and sustain affordable housing while protecting the physical characteristics ofland relating to the carrying capacity ofthe land, drainage, natural features, and vegetation. La Pine Urban Renewal Plan 19 July 23, 2014 Goal # 4: Promote and protect neighborhood qualities that reflect the small town appeal ofLa Pine and improve compatibility between various uses. • Compatibility standards are effective tools for making sure neighborhood uses are consistent with community goals and design standards. • The La Pine community demands a quality living experience for all residents and multi­ family developments. Thus, site plans for multi-family developments or attached single-family hous ing are required to provide for adequate yard space for residents andplay space for children which have distinct area and definite shape, appropriate for the proposed use, and are not just the residue left after buildings are designed and placed on the land. It is necessaryfor the public health and safety ofthe community to monitor and manage neighborhood uses. • The La Pine community desires to preserve, protect, and strengthen the vitality and stability ofexisting neighborhoods while permitting uses that make neighborhoods more "complete" and reduce vehicle miles traveled. • Multi-modal access should be provided internally and to adjacent new and existing neighborhood developments. • Higher density developments should be in close proximity to schools, services, parks, shopping, employment centers, andpublic transit. • Areas developed or designatedfor multi-family development should be compatible with adjoining land uses and not detractfrom the character ofexisting residential areas. • The location ofmost multi-family housing will be best suited near the City core, major transportation corridors, schools, services, parks, shopping, employment centers, and transit corridors. Goal # 5: Promote quality affordable housing and recognize that lack ofaffordable housing is an economic issue negatively affecting the vitality and sustainability ofLa Pine. • Affordable housing should be available for all income levels in the community. This issue affects all citizens because the economic health ofthe community is tied to providing greater choices in housing types. • It is necessary for the public health, safety, and economic values ofthe community to improve awareness ofaffordable housing problems and to encourage affordable housingfor all income levels. • A lack ofparticular housing choices create traffic congestion as people commute from one community to another, increase costs for businesses related to employee travel time, I employee absences, unnecessary street expansions andparking demand, reduced mobility for >. certain disadvantaged groups, and unnecessary community subsidy to remedy these and other impacts. Goal # 6: Recognize that addressing the housing needs ofthe community is essential to the successful future ofLa Pine as desirable place to live, work, shop, and play. • Strategies to improve the type and range ofhousing choices in the community must be based upon careful examination ofdemographiC data, trends, and local demands. La Pine Urban Renewal Plan 20 July 23, 2014 • The vitality ofthe City depends not just on the health ofone aspect ofhousing but preferably by taking a systemic approach to growth and development, preservation and continuity. The Plan confonns with Goal X Housing by providing streetscape improvements will help create a sense of identity and provide a pleasant atmosphere for living in the Area and in the city of La Pine. A project in the Plan is the development of open space in mixed-use developments in the Area. Chapter XI Energy Conservation Goal # 1: Create an arrangement and density ofland uses to encourage energy conservation. • The City will seek ways to require and will encourage the further development of sidewalks, trails and other bike and pedestrian paths. • The City shall increase the efficiency of all City operations where possible. The Plan confonns with Goal XI Energy Conservation I by providing infrastructure improvements that will help facilitate development of properties within the Area that will create a more compact retail core, encourage different types of transportation, and support the development of mixed-use properties in the Area. Chapter XII Urbanization Goal # 1: It is expected that Forest and Agricultural lands within the City limits will be converted to urban uses. Goal #2: Land within the City limits is adequate to serve as the La Pine Urban Growth Boundary unless special circumstances are identified and established as reasonable and supportable. • At such time as a transfer ofland from the Bureau ofLand Management to a government agency (City ofLa Pine or Deschutes County) occurs along the southwest City boundary, the use ofsuch lands for rodeo facilities shall be examined. The City desires such land to be included within the City limits, with future administration ofthe lands andfacilities used as rodeo grounds to be determined by mutual agreement ofthe City and the La Pine Park and Recreation District. The Plan confonns with Goal XII Urbanization by providing programs and infrastructure improvements to the Area, which lies within the current Urban Growth Boundary and is the downtown core of La Pine. This will help maximize the efficient use of land by encouraging more intense uses on lands already developed or designated for urban development, and will help keep the urban pattern compact. There is also a project in the Plan to assist with the future development of the BLM property into a RodeolEvent site. La Pine Urban Renewal Plan 21 July 23, 2014 B. La Pine Zoning Ordinance The Plan conforms to the La Pine Zoning Ordinance as all projects envision the present zoning of properties. The Plan also conforms to the Deschutes County Zoning Code, Title 18 for the property that is outside the city limits. C. La Pine Corridor Plan The La Pine Corridor Plan (Corridor Plan) was adopted in July 2011. The Corridor Plan addresses multi-modal and capacity needs for the downtown La Pine corridor between 1 st Street and 6th Street. Key study findings are: Frequent pedestrian and bicycle crossings occur at the US 971First Street intersection throughout the course ofthe day. There are no delineated pathways or crosswalks at the intersection and jield observations reveal frequent "near misses" between the pedestrians and oncoming traffic. This situation is further compounded by high vehicular speeds from southbound traffic entering the city from the rural segment of us 97. Many ofthe existing intersections along US 97 intersect the highway at a skewed angle, which make pedestrian crossings and turning onto and offofthe highway difficult. There are continuous sidewalks on the eastside of us 97 but not on the west. The presence of multiple driveways along the corridor presents conflicts between pedestrians and turning motorists. There are no bicycle lanes along US 97 so cyclists must share the road or walk their bicycles along the sidewalk. The pi Street -Reed Road, Huntington Road, Finley Butte, and 61h Street intersections with US 97meet minimum volume thresholds for the installation ofa traffic signal today. Although the highway has jive-lanes in areas ofthe downtown core, the curb-side lanes are primarily for usedfor passing or decelerating maneuvers. The wide striped shoulder toward the north end ofthe City serves as a deceleration area. This wide cross-section makes pedestrian and bicycle crossings ofthe highway difficult andprovides a level ofdiscomfort for those walking or cycling alongside the highway. La Pine is planningfor significant industrial and employment growth on the east side ofthe city during the next twenty years. This growth will further exacerbate the multimodal connectivity and capacity needs near the US 971First Street intersection. This growth will also require multimodal connectivity on city streets that parallel US 97 to provide residents with non-highway options to access their homes andjobs. The Plan conforms to the Corridor Plan as there are streetscape improvements identified as a project in the Plan. These improvements will help address some of the deficiencies identified in the Corridor Plan, including pedestrian and bicycle deficiencies. La Pine Urban Renewal Plan 22 July 23,2014 D. La Pine Transportation Systems Plan The La Pine Transportation Systems Plan (TSP) was completed in October 2013. The TSP tended to provide the City, County and ODOT with guidance for operating and improving a multimodal transportation system within the La Pine Urban Growth Boundary. The TSP focuses on priority projects, policies and programs for the next twenty years but also provides a vision for longer term projects that could be implemented should funding become available. The TSP is intended to be flexible to respond to changing community needs and revenue sources over the next twenty years and will be updated every 5 -7 years. Key projects identified are: Pedestrian Projects All roadway upgrades within the City ofLa Pine should include pedestrian facilities, as specified in the street design standards, to create a network ofcontinuous sidewalks that enable residents to travel via walking. Priority for pedestrian projects should be given to: Providing pedestrian access across US 97 within Wickiup and downtown La Pine. Creating a connected trail system between the downtown and WickiUp, particularly along the west side ofthe highway where the majority ofdevelopable lands are located. Considering pedestrian connectivity for recreational trips, such as those to existing and planned parks and trails. Bicycle Projects A network ofcontinuous bicycle facilities, whether they are bike lanes or shared-use paths, should be developed to encourage bicycling as a form oftransportation within the City. Improving bicycle facilities and connectivity will provide more opportunities for bicyclists ofall abilities to travel throughout the City. Priority for bicycle facility improvements projects should be given to: Providing east-west connections within the Cagle subdivision where roadways are currently unpaved. Providing trail system connectivity between the downtown and WickiUp, particularly along the west side ofthe highway where the majority ofthe developable lands are located. The Plan conforms to the Transportation Systems Plan as there are streetscape improvements identified as a project in the Plan. These improvements will help address some of the deficiencies identified in the Transportation Systems Plan, including pedestrian and bicycle deficiencies. La Pine Urban Renewal Plan 23 July 23,2014 APPENDIX A: LEGAL DESCRIPTION July 23, 2014 La Pine Urban Renewal Plan 25 REPORT ACCOMPANYING LA PINE URBAN RENEWAL PLAN Adopted by the City of La Pine July 23, 2014 Ordinance No. La Pine Urban Renewal Area Elaine Howard Consulting, LLC Elaine Howard ECONorthwest Nick Popunek Tessa Krebs Rob Wyman Jeannette Launer, Legal Counsel Leslie Vanden Bos, Editor Elaine Howard Consulting, LLC www.elainehowardconsulting.com office: 503.635.2783 cell: 503.975.3147 elaine@elainehowardconsulting.com ITABLE OF CONTENTS I f, REASONS FOR SELECTION OF EACH URBAN RENEWAL AREA IN THE PLAN ...........................13 ITHE RELATIONSHIP BETWEEN URBAN RENEWAL PROJECTS AND THE EXISTING CONDITIONS IN THE URBAN RENEWAL AREA ...................................................................................14 A. STOREFRONT LOANS/GRANTS .................................................................................................................................14 B. DISTRICT IDENTITY/TRANSPORTATION IMPROVEMENTS .................................................................................14 C. PLANNING AND DEVELOPMENT ASSISTANCE PROGRAMS TO SUPPORT ECONOMIC DEVELOPMENT ............. 15 ID. PUBLIC FACILITIES/INFRASTRUCTURE..................................................................................................................16 l E. DEBT SERVICE AND ADMINISTRATION ...................................................................................................................16 t F. PROPERTY ACQUISITION ...........................................................................................................................................16 EXISTING PHYSICAL. SOCIAL. AND ECONOMIC CONDITIONS AND IMPACTS ON MUNICIPAL SERVICES .., ..................................................................... , ........."..........,.........." ..................... , ...................,...... 4 PHYSICAL CONDITIONS .....•...•.....•..........•.•........•••....••........••••.......•..•.....•...•.....•..........•........•........••.................••. 4 LAND USE ............................................................................................................................................................................... 4 ZONING AND COMPREHENSIVE PLAN DESIGNATIONS .................................................................................................... 5 INFItASTRUCTURE: EXISTING CONDITIONS .............•.•......•..•.....••••.......•.•..•...•.....•.....••........•.••.......... , ....•.• " .....•. 7 INFRASTRUCTURE ................................................................................................................................................................. 7 SOCIAL CONDITIONS .•.....••..•.......•...............•.•........•.......•..........•.••.........•........•.....•.••••••.....•..•....•..•........•.•.........•. 9 ECONOMIC CONDITIONS ..................................................................................................................................... 11 TAXABLE VALUE OF PROPERTY WITHIN THE AREA .....................................................................................................11 BUILDING TO LAND VALUE RATIO ...................................................................................................................................12 IMPACT ON MUNICIPAL SERVICES ....................................................................................................................13 THE ANTICIPATED COMPLETION DATE FOR EACH PROJECT .......................................................18 THE ESTIMATED AMOUNT OF TAX INCREMENT REVENUES REQUIRED AND THE ANTICIPATED YEAR IN WHICH INDEBTEDNESS WILL BE RETIRED ..........................................22 IMPACT OF THE TAX INCREMENT FINANCING.................................................................................,,29 COMPLIANCE WITH STATUTORY LIMITS ON ASSESSED VALUE AND SIZE OF URBAN FINANCIAL ANALYSIS OF THE PLAN ......................................................................................................26 RENEWAL A EA .............. . .......................................................................................................................... 34 RELOCATION REPORT ................................................................................................................................34 Report Accompanying La Pine Urban Renewal Plan IINTRODUCTION The Report on the La Pine Urban Renewal Plan (Report) contains background information and project details that pertain to the La Pine Urban Renewal Plan (Plan). The Report is not a legal part of the Plan, but is intended to provide public information and a basis for the findings made by the City Council as part of its approval of the Plan. The Report provides the information required in ORS 457.085(3). The format ofthe Report is based on this statute. The Report documents not only the proposed projects in the Plan, but also documents the existing conditions in the La Pine Urban Renewal Area (Area). The Report provides the analysis required to meet the standards ofORS 457.085(3), including financial feasibility. However, the Report provides only guidance on how the urban renewal plan might be implemented. As the urban renewal agency reviews revenues and potential projects each year, they have the authority to make adjustments to the assumptions in this Report. They may allocate budgets differently, adjust the timing of the projects, decide to incur debt at different timeframes than projected in this Report, and make other changes, as allowed in the amendments section of the Plan. Report Accompanying La Pine Urban Renewal Plan 2 1---.../ \\ ,....... I . to 0 ....'....; J ~u: ~~ :: .. i Msmo H81 I ";o Q,\o. Q)0.-: c:oE!O: ~ u uC a::Ii:: a't. J -Q).co: i ......·······i1···1 ! ! i i .­ ___.J....­ ..-_ • ( ..J. _ j I L--.l 2fl2.5D A=s ••,liIIj.IIJ..W .iIiIl ................. Outside City of La Pine: 314.1!3A=s o I :CON:lI"".ICS • Figure 1 -La Pine Urban Renewal Plan Area BoundaIY ___---./• La Plne,OR Urban Renewal Boundary ...-......... Total BoundarvArec; S77.13 Acres I r---1 lnside Oty of La Pine: NA In I I M .... o.u.~,-=-=D:XJ~t,CSIItI ..... &D_.1Q.. DIIIlJICla"'~", ECONorthwest FIN .~CC • r _AN\JINf'i I Report Accompanying La Pine Urban Renewal Plan 3 EXISTING PHYSICAL, SOCIAL, AND ECONOMIC CONDITIONS AND IMPACTS ON MUNICIPAL SERVICES This section ofthe Report describes existing conditions within the La Pine Urban Renewal Area and documents the occurrence of "blighted areas," as defined by ORS 457.010(1). Physical Conditions Land Use According to data obtained from the City of La Pine and Deschutes County Assessor's office, the Area, shown in Figure I above, contains 194 parcels and consists of 498.02 acres and 79.11 acres of public right-of-way, for a total size of 577.l3 acres, 262.50 of which is in the city of La Pine. An analysis of propelty classification data from the City of La Pine and Deschutes County Assessment and Taxation database was used to determine the land use designation of parcels in the Area. Within the Area, the largest use ofland is Exempt (67% oftotal acreage). This includes the parcel that is presently owned by the Bureau of Land Management (BLM) and outside the city limits. Commercial-Vacant (12% of total) is the next largest category, followed by Commercial­ Improved with 9% of the Area. Table 1 -Existing Land Use of Area Industrial 3 3.98 0.80% 2 0.55Commercial Partially Exempt 0.11% 44.03Commercial Improved 73 8.84% Commercial Vacant 29 61.66 12.38% Misc. Commercial Improved 2 2.47 0.50% Manufactured residential 4 13.44 2.70% 2.37Manufactured structure 1 0.48% State Responsibility 2 1.10 0.22% Misc. 2 0.02 0.00% 6.32%54 31.475Tract 0.15%Multi Family 1 0.766 67.50%21Exempt 336.163 Total 194 498.02 100.00% Source: Deschutes County Assessor Data Report Accompanying La Pine Urban Renewal Plan 4 --- ----- - ---- - - -- - Zoning and Comprehensive Plan Designations The zoning code establishes districts to control land use throughout the city and regulates development standards within these established use districts. As illustrated in Table 2a, the large majority (62%) of the Area is zoned as Public Land. This is followed by Traditional Commercial, which is approximately 25% of the Area. Aside from public land, the vast majority of the land is zoned Traditional Commercial, and includes 182 of the 194 parcels . Table 2a -Existing Zoning Plan Designations of Area - , ''l'o of Tota lZoning _,-_~~lrccls -r ACl'C_~g~ r - _ACl'c~ge 24.59%Traditional Commercial 182 122.47 Forest Use 1 20.36 4.09%9 Public Facility 8.38 1.68%1 1 37.21 7.47%Master Plan Residential 62.17%Public LandlBLM 309.601 498.02 100.00%Total 194 Source: Deschutes County Assessor Data As illustrated in Table 2b, the large majority (62%) of the Area has a Public Land comprehensive plan designation. This is followed by Traditional Commercial, which is approximately 24% of the Area. Aside from public land, the vast majority of the land is zoned Traditional Commercial, and includes 179 of the 194 parcels. These can be seen in Figure 2. Table 2b -Existing Comprehensive Plan Designations of Area -------~~-- % of Tota lComp.·ehcnsil'e Plan I Parcels rA~rca;c r Acreage I - 179 117.91 23.67%Traditional Commercial 4.56 0.92%Open Space and Park 3 57 .57 11.56%10Mixed Use 8.38 1.68%Public Facility 1 1 309.60 62.17%Public LandlBLM 498.02 100.00%194Total Source: Deschutes County Assessor Data Report Accompanying La Pine Urban Renewal Plan 5 Figure 2 -Area Comprehensive Plan Designations ~o ~ tl ­:: ~i o Q,t. 4S0._: c: ... :> I C1.o.c • ... ... I: !G ,,;"' I ...J-...:: 0:: ~.....n ......." ....! i M ti@ 1emo_ La Pine,OR Comprehensive Ptan Designations w/ln Urban Renewal Mixed-Use COM I RES BLM I Public Facility • t:l La Pirie City Boundary ~.t~ftM N o A. 113 I I I ...,.. QIr\jt~-.:~.CRlM.~"D_~"'11----... ECONorthwest .......................~.....-__u,.............~:CON:W,IC5 • FIN.~CC • r _~,N 'lING Report Accompanying La Pine Urban Renewal Plan 6 Infrastructure: Existing Conditions Infrastructure The streets within the Area have the following classifications, as identified in the La Pine Transportation Systems Plan (TSP): Highway 97 Highway Huntington Road Downtown Arterial! Arterial Morson Street Downtown Arterial 41h Street Major Collector 3rd Street Major Collector/Minor Collector 6th Street Minor Collector All other streets are local streets. This section of the study identifies the existing deficiencies in the infrastructure in the Area. The street conditions information is from the TSP. This does not mean that a project has been identified in the urban renewal plan to address each deficiency, this is solely to identify conditions that are deficiencies within the Area. 1. Streets/SidewalkslPathwayslBike Lanes The following deficiencies are identified in the TSP. Huntington Road needs to be improved to Downtown Arterial standards from US 97 to 1 st Street. South Huntington Road intersection with Highway 97 needs to be realigned. Morson Street needs to be improved to Downtown Arterial standards. 3rd Street to 6th Street needs to be upgraded to Minor CollectorlMajor Collector standards. 4th Street needs to be upgraded to Major Collector standards. 15t Street needs to be upgraded to Downtown Arterial standards. Intersection improvements US 971Ashton Eaton Blvdll sl StreetlReed Road US 971 Ashton Eaton Blvdl Finley Butte Road-Morson Street US 971 Ashton Eaton Blvd/6th Street Report Accompanying La Pine Urban Renewal Plan 7 II Safety projects US 97! Ashton Eaton Blvd! 15t Street US 97!Ashton Eaton Blvd! Finley Butte Road-Morson Street US 97!Ashton Eaton Blvd!6 th Street Huntington Road Transit system Downtown area connection for service to Bend Sidewalks Highway 97!Ashton Eaton Blvd has sidewalks on the east side, but not continuous sidewalks on the west side of the street from 6th Street to 15t Street. Huntington Road has non-continuous sidewalks. 3rd Street has sidewalks on a single side from Huntington to Highway 97!Ashton Eaton Blvd and no sidewalks west of Huntington Road. 1st Street has sidewalks on a single side in some portions. 4th Street has sidewalks on both sides from Huntington to Highway 97!Ashton Eaton Blvd and no sidewalks west of Huntington Road. The Area would benefit from numerous types of sidewalk and streets cape improvements, from repaving, to constructing new sidewalks where they do not exist, to clearly identifying crosswalks. The condition of the sidewalks and the lack of bike lanes are factors of blight in the Area. Report Accompanying La Pine Urban Renewal Plan 8 Safety projects US 97/Ashton Eaton Blvd/l st Street US 97/Ashton Eaton Blvdl Finley Butte Road-Morson Street US 97/Ashton Eaton Blvd/6th Street Huntington Road Transit system Downtown area connection for service to Bend Sidewalks Highway 97/Ashton Eaton Blvd has sidewalks on the east side, but not continuous sidewalks on the west side of the street from 6th Street to 151 Street. Huntington Road has non-continuous sidewalks. 3rd Street has sidewalks on a single side from Huntington to Highway 97/ Ashton Eaton Blvd and no sidewalks west of Huntington Road. 15t Street has sidewalks on a single side in some portions. 4th Street has sidewalks on both sides from Huntington to Highway 97/Ashton Eaton Blvd and no sidewalks west of Huntington Road. The Area would benefit from numerous types of sidewalk and streetscape improvements, from repaving, to constructing new sidewalks where they do not exist, to clearly identifYing crosswalks. The condition of the sidewalks and the lack of bike lanes are factors of blight in the Area. Report Accompanying La Pine Urban Renewal Plan 8 2. Water Most water lines in the Area were constructed in 2001 and are in good condition. There are some areas that could benefit from an increased number of fire hydrants. Information for the La Pine Rural Fire District in May 2014 is shown below. The goal for the amount of water flow for fire flow is 3,500 gallons per minute (gpm) for common commercial areas. Not all of the commercial area in La Pine meets this gpm. For example, the flow at Ace Hardware is only 2,076 to 2,405 gpm. The water system booster fire pumps are not operational nor are they automatic. For each 1,000 required gpm in the business district, there should be a fire hydrant within 250 feet. Deficiencies in this are in the following locations: • South County Service Center needs 1 more on E side of 97 (has 1 on Huntington) • City Hall needs 1 more (has 1 on Huntington and 6th) • Shop smart needs 1 more on E side of97 (has 2 on Huntington) • La Pine Dental Center needs 1 on E side of97 • High lakes feed area needs 1 more on E side of97 (has 1 on Finely Butte) • Aspen Alley needs 2 on E side of 97 • Los 3 CaballeroslWhispering Pines needs 1 on east side of 97 • La Pine Square needs 2 on E. side of 97 • Industrial Warehouse on Bluewood place needs 3 • Strip malls on Bluewood Court need 1 more (has 1 in cul-de-sac) 3. Storm Water The storm water system in the Area needs significant improvement. There is no complete storm water system in the Area. 4. Sanitary Sewer Sanitary sewer lines that are in good condition exist throughout in the Area. 5. Parks Heritage Park is located at the corner of 151 from Huntington to Munson. 6. Conditions of Buildings A quick visual survey shows buildings that are in need of fac;ade improvements. Social Conditions Of the 194 parcels in the Area, only 10 are recorded as mixed-use that could include residential use, and these account for 11.56% of parcels in the Area. The 2010 census data is used, below, to describe the social conditions within the Area. As ofthe 2010 census, there were 1,653 people in La Pine. Age The age distribution of the Area is shown in Table 3. The majority of the population in the Area is between the ages of 15 and 44, and over 87% of the Area is younger than 60 years old. f Report Accompanying La Pine Urban Renewal Plan 9 ,J , Table 3 -Age Distribution of Area ---­----. Age Bracket --­- P - o - pulation-oto 17 years 22.40% 1 8 to 24 years 6.80% 25 to 44 years 22.50% 45 to 64 years 30.40% 65 and older 17.80% Total 100% Source: US Census 2010 Race The racial characteristics of the Area are shown in Table 4. The majority of people (93.5%) identify themselves as white and the second largest group (1.8%) that people identify with is "some other race." Hispanic or Latino of any race account for 5.8% of the population. Table 4 -Racial Characteristics of the Area I Race - Population i White alone 95.84% Black or African American alone 0.09% American Indian and Alaska Native alone 1.28% Asian 0.24% Pacific Islander 0 .10% Some other race alone 0.55% Two or more races 1.90% Total 100% Source: US Census 2010 Income The median income for a household in the area is $29,859, and the median income for a family is $33,938. Report Accompanying La Pine Urban Renewal Plan 10 -- -- - Population In the last few years, La Pine has remained stable in population. This change is typical of readjustments performed by the Portland State University Population and Research Center after reviewing the 20 10 Census data. Table 5 -Population in La Pine Year Population ----­-­ 0;;) Clumgc --­--­I 2010 1,660 0.60% 2011 1,670 0.00% 2012 1,670 0.00% 2013 1,670 I 0 .00% Source: Portland State University Population Research Center Economic Conditions Taxable Value ofProperty Within the Area The estimated 20] 3/2014 total assessed value of the real property in the Area is $26,466,444. The Deschutes County Assessor has recommended to apportion a share of the total citywide utility value in the same proportion as the ratio of real property real market value in the Area to real property assessed market value in the City (3.97%), for an estimated utility value of $1,082,274. The Assessor did caution that the personal property values may end up higher, so the boundary was adjusted to allow for the chance that the values of the personal properties are higher than estimated . The total estimated value of personal property in the Area is estimated at $1,257,672. This is based on calculating the share of personal property within the city and using that same percentage as a factor for the Area (4.62%). The total estimated assessed value, including all real, personal, and utility properties, is $28,945,892. This data is summarized in Table 6. Table 6 -Total Estimated Assessed Value Propert y Type ,. , Real Personal 1,257,672 5,278,720 4.62% Manufactured 139,502 585,520 .51% Utility 1,082,274 4,542,537 3.97% Total $28,945,892 $124,771,675 Source: Deschutes County Assessor's data If an urban renewal plan is adopted, the Deschutes County Assessor will calculate the frozen base using tax accounts for all of the real, personal, manufactured, and utility properties in the Area. The Report Accompanying La Pine Urban Renewal Plan 1 ] total assessed value of the City of La Pine is $124,771,675.' Using the figures in this Report, the Urban Renewal Area's estimated assessed value equals 23.20% ofthe total assessed value of the City. Building to Land Value Ratio An analysis of property values can be used to evaluate the economic condition of real estate investments in a given area. The relationship of a property's improvement value (the value of buildings and other improvements to the property) to its land value is generally an accurate indicator of the condition of real estate investments. This relationship is referred to as the "Improvement to Land Ratio," or "I:L." The values used are real market values. In urban renewal areas, the I:L may be used to measure the intensity of development or the extent to which an area has achieved its short­ and long-term development objectives. A healthy condition of real estate investment in the Area would be 3: I or more. An important fact to note about Table 7 is that there are 59 parcels with no improvements on them. These are vacant parcels that account for 83.91 acres of underutilized land that are located within the urban renewal area. There are also 24 parcels that are presently non-taxable, accounting for 346 total acres. In general, there is a very low I:L ratio in the Area. Over 97% of the Area (even excluding the Rodeo site) does not achieve the desired ratio of 3: I or better. Table 7 -I:L Ratio of Parcels in the Area - ---­-~ -- --­----­ % of % of tota l I .{:L Ratio Parcels Acreage Total H~~ except Acreage R d o eo Not Taxable 24 345.63 69.40% 19.71% No Improvements 59 83.91 16.85% 44.21 % 0.01 -0.50 37 20.65 4.15% 10.88% 0.51 -1.00 34 22.23 4.46% 11.71% 1.01 -1.50 21 10.93 2.19% 5.76% 1.51 -2.00 7 6.71 1.35% 3.54% 2.01 -3.00 6 4.09 0.82% 2.15% 3.01 -4.00 3 2.851 0 .57% 1.50% 4.01 -5.00 2 0.86 0.17% 0.45% >5.0 I 0.16 0.03% 0.08% Total 194 498.02 100.00% 100.00% Source: Deschutes County Assessor Real Market Value data I Data from Deschutes County Assessor's 2012-13 tax roll summary Report Accompanying La Pine Urban Renewal Plan 12 Impact on Municipal Services The fiscal impact of tax increment financing on taxing districts that levy taxes within the Area (affected taxing districts) is described in the Section on Impact of Tax Increment Financing of this Report. This subsection discusses the fiscal impacts resulting from potential increases in demand for municipal services. The projects being considered for future use of urban renewal are primarily district identity/transportation, business improvement/development, and public facilities projects. The use of urban renewal funding for these projects allows the City to match other funding sources to actually construct the improvements. It also allows the City to tap a different funding source besides the City of La Pine's general funds to make these improvements. It is anticipated that these improvements will catalyze development on the adjacent undeveloped and underdeveloped parcels. This development will require city services. As the development will be new construction or redevelopment, it wi1l be up to current building code and will aid in any fire protection needs. These impacts will be countered by providing transportation funding for vital connections to La Pine and major parcels of undeveloped and underdeveloped land. This land will provide future jobs to the La Pine area and future increased tax base for all taxing jurisdictions. REASONS FOR SELECTION OF EACH URBAN RENEWAL AREA IN THE PLAN The reason for selecting the Area is to provide the ability to fund improvements necessary to cure blight within the Area. Report Accompanying La Pine Urban Renewal Plan 13 THE RELATIONSHIP BETWEEN URBAN RENEWAL PROJECTS AND THE EXISTING CONDITIONS IN THE URBAN RENEWAL AREA The projects identified for the Area are described below, including how they relate to the existing conditions in the Area. The projects are listed in no particular order. A. Storefront loans/grants Establish a program to allow for assistance to property owners for improvements to the facades on their properties. B. District IdentitylTransportation Improvements 1. Sidewalk improvements Improve sidewalks within the Area to allow for greater access for pedestrians to the commercial district. 2. Sign age: business and way-flnding Support effective signage for businesses and for way-finding to allow citizens and visitors to frequent the commercial area and to know of other opportunities the La Pine community has to offer. 3. Streetscape Improve the streetscape in the Area to encourage citizens and visitors to visit the Area. Streetscape includes sidewalks, signage, trees, benches, landscaping, public art, archways, bus shelters, lighting, and other improvements to enhance the overall appearance of the Area and encourage development and redevelopment of the Area. 4. Bicycle paths Add bike paths within the Area to encourage greater access to the commercial district. 5. Gathering spaces Develop gathering spaces to add to the overall positive environment ofthe Area, encouraging visits to the Area by citizens of La Pine and visitors to the Area. 6. Parking Assess parking needs for the Area. Report Accompanying La Pine Urban Renewal Plan 14 Existing Conditions: There is no funding source at the City for these programs. There will be some streetscape improvements with an Oregon Department of Transportation project, butfor only afew blocks within the Area. The La Pine parks district is in charge ofparks, and any gathering spaces would be coordinated with them. Bike paths and sidewalks were identified as areas ofneed in the Transportation Systems Plan. Signage is presently not coordinated in terms ofa style or specific type. C. Planning and development assistance programs to support economic development 1. Assist with development ofmixed-use area Encourage development of the mixed-use area by providing amenities to help make the area more desirable. 2. Encourage/support business expansion Work with business owners to develop and redevelop properties within the Area, leveraging public investment with private investment. 3. Storefront Improvements Work with business owners to improve the overall appearance of the exteriors of their properties. 4. Support for incubator businesses Look for opportunities to help facilitate the development of new businesses within La Pine. Existing Conditions: There is no funding source at the City for these programs. Report Accompanying La Pine Urban Renewal Plan 15 D. Public Facilities/Infrastructure 1. RodeolEvent Site development 2. Development and redevelopment ofpublic facilities that provide vital services (fire, police, and medical), gathering spaces, and other services for the community. 3. Upgrade/provide infrastrllcture as necessary to allow for the development or redevelopment ofparcels within and adjacent to the urban renewal area. Existing Conditions: There is no funding source at the City for the RodeolEvent site development. The site is totally undeveloped at this time. The City Council would decide whether there was sufficientfundingfor development or redevelopment ofpublic facilities or upgrading ofinfra structure infuture city budgets. These are not presently in the city budget. E. Debt Service andAdministration This project will allow for the repayment of costs associated with the preparation, adoption, and implementation ofthe La Pine Urban Renewal Plan. This includes the potential repayment of the initial planning costs for the development of the urban renewal plan. It also includes ongoing administration and any financing costs associated with issuing long-term debt, relocations, and other administrative costs. Existing Conditions: As there is currently no urban renewal program, these activities do not exist. F. Property Acquisition This project will fund willing seller/willing buyer property acquisition and assembly of key properties for redevelopment, public gathering spaces, public parking, or other use consistent with the goals and objectives ofthis plan. Existing Conditions: The City has generalfund revenues that can be usedfor property acquisition. By allowing acquisition in the urban renewal plan, tax increment funds could also be used for property acquisition. Report Accompanying La Pine Urban Renewal Plan 16 ------- THE ESTIMATED TOTAL COST OF EACH PROJECT AND THE SOURCES OF MONEYS TO PAY SUCH COSTS The costs of the projects are shown in Table 8. The sources of funds are tax increment revenues. There will be other funding sources sought to leverage urban renewal funds. These sources include grant funds, general funds, state funding, or other sources of funding the City may identify, including private developer contributions. These figures are in nominal dollars, the cost of the dollar when spent in the future and constant dollars, the dollars in today's dollar. The actual dollars allocated to Planning and Development, District IdentitylTransportation and Public FacilitieslInfrastructure are roughly the same when using constant dollars. The differences in the nominal dollars is a result of how soon those dollars are spent as inflation increases the amount needed to actually complete projects in the future. For example, the District Identity category receives the largest budget allocation the earliest, over a million dollars in 2018119. This makes the total amount look smaller, but when you compare in constant dollars, they are very similar. The allocations are the best estimates of expenditures at the time of preparation of the urban renewal plan. The urban renewal agency will be able to review the allocations on an annual basis when they prepare their budgets. Table 8a -Projects to be Completed Using Urban Renewal Area Funds Urhan IT rhan Projeds Renc\\al Renewal constanl nominal - -dollars dollars ----­- Storefront loans $300,000 $406,700 Planning and development $1,445,000 $2,443,900 assistance District identity/transportation $1,200,000 $1,617,600 Public facilities/infrastructure $1,100,000 $1,778,200 Parking $175,000 $341,100 Repay initial planning costs $30,000 $33,800 Administration $212,514 $331,065 Financing fees $45,880 $65,000 $4,508,394 $7,017,365 Report Accompanying La Pine Urban Renewal Plan 17 THE ANTICIPATED COMPLETION DATE FOR EACH PROJECT The infrastructure projects will be scheduled as shown in the financing plan in Table 9. The other projects will be ongoing and will be completed as directed by the Urban Renewal Agency (Agency). The Agency may change the completion dates in their annual budgeting process or as project decisions are made in administering the urban renewal plan. This financing plan shows large allocations to projects in the fmal year. This is due to the ability to use the debt reserve funds for the bonds that have been defeased in the final year of the plan, FY2040-41. The inflation rate for project costs is 3%. Administration is allocated a 5% amount of the total annual tax increment. I ,f Report Accompanying La Pine Urban Renewal Plan 18 Table 9 -Projects and Costs in Year of Expenditure Dollars Source: ECONorthwest Report Accompanying La Pine Urban Renewal Plan 19 Table 9 -Projects and Costs in Year of Expenditure Dollars, continued $ 200,669 $ 56,549 $ 52,307 $ 72,039 $ 117,301 $ 189,617 $ 290,587 $ 7,887 \Inflation Percent 3% 3% 3% 3% 3% 3% 3%: 3% Source: ECONorthwest Report Accompanying La Pine Urban Renewal Plan 20 Table 9 -Projects and Costs in Year of Expenditure Dollars, continued $ 186,000 $ Source: ECONorthwest Report Accompanying La Pine Urban Renewal Plan 21 THE ESTIMATED AMOUNT OF TAX INCREMENT REVENUES REQUIRED AND THE ANTICIPATED YEAR IN WHICH INDEBTEDNESS WILL BE RETIRED Table 10 shows the tax increment revenues and their allocation to loan repayments, reimbursements, debt service, and debt service reserve funds. The Area also reaches the point where revenue sharing is required to begin, as implemented by the State in ORS 457.470, and this is further described in the section of this report on Impacts to Taxing Jurisdictions. It is anticipated that all debt will be retired by FY2041-42 (any outstanding bonds will be defeased). The maximum indebtedness is $7,017,000 (seven million, seventeen thousand dollars). The estimated total amount of tax increment revenues required to service the maximum indebtedness of $7,017,000 is $8,769,858. The interest rate for the bonds is estimated at 5% and the terms of the bonds are varied, depending on time of issuance. The time frame of urban renewal is not absolute; it may vary depending on the actual ability to meet the maximum indebtedness. lfthe economy is slower, it may take longer; if the economy is more robust than the projections, it may take a shorter time period. The Agency may decide to issue bonds on a different schedule, and that will alter the financing assumptions. These assumptions show one scenario for financing and this scenario is financially feasible. Report Accompanying La Pine Urban Renewal Plan 22 Table 10 -Tax Increment Revenues and Allocations to Debt Service DEBT SERVICE FUND Resources Beginning Fund Balance $ - $ - $ - $ - $ $ - $ -$ TlF for URA $ $ $ $ 88,481 $ 108,491 $ $ $ $ 193,043 Total Resources 043 $ (1,845,580) $ (92,279) $ (92,279) $ (92,279) $ (92,279) $ (1,725,258) $ (1,513,636) $ (1,487,892) $ (51,055) $ (69,717) $ (88,481) $ (108,491) $ (34,416) $ (55,670) $ (77.775) $ (100,764) I $ $ $ $ $ $ $ - $ 1,487,892 $ - $ -$ - $ 51,055 $ -$ - $ - $ 69,717 $ - $ - $ $ 88,481 $ - $ - $ - $ 108,491 $ - $ 34,416 100,764 Expenditures Debt Service New Loan 2020 New Loan 2025 New Loan 2033 Transfer to DIS Reserve Fund Total Expenditures DEBT SERVICE RESERVE FUND Resources Beginning Balance Interest Eamings Transfer from DIS Fund Transfer to Project Fund Total Expenditures Source: ECONorthwest Rep0l1 Accompanying La Pine Urban Renewal Plan 23 Table 10 -Tax Increment Revenues and Allocations to Debt Service, continued 2023-24 2024-25 DEBT SERVICE FUND Resources Beginning Fund Balance $ -$ - $ - $ -$ - $ -$ -$ T1F for URA $ 216,953 $ 241,818 $ 267,678 $ 294,572 $ 322,542 $ 351,631 $ 381,884 $ 413,347 Total Resources $ 216,953 $ 241,818 $ 267,678 $ 294,572 $ 322,542 $ 351,631 $ 381,884 $ 413.347 Expenditures Debt Service New Loan 2020 $ (92,279) $ (92 ,279) $ (92,279) $ (92 ,279) $ (92,279) $ (92,279) $ (92,279) $ (92,279) New Loan 2025 $ (88,267) $ (88,267) $ (88,267) $ (88,267) $ (88,267) $ (88,267) $ (88 ,267) New Loan 2033 $ (80,243) Transfer to DIS ReseNe Fund $ (124,674) $ (61,272) $ (87,132) $ (114 ,026) $ (141,996) $ (171,085) $ (201,338) $ (152,558) Total Expenditures $ (216,953) $ (241,818) $ (267,678) $ (294,572) $ (322,542) $ (351,631 DEBT SERVICE RESERVE FUND Resources Beginning Balance $ - $ - $ -$ -$ - $ -$ - $ Interest Earnings $ - $ -$ - $ -$ -$ - $ -$ Transfer from DIS Fund $ 124 ,674 $ 61,272 $ 87,132 $ 114 ,026 $ 141,996 $ 171,085 $ 201,338 $ 152,558 Transfer from Project Fund $ - $ - $ -$ - $ -$ - $ -$ Total Resources $ 124,674 $ 61,272 $ 87,132 $ 114,026 $ 141,996 $ 171,085 $ 201,338 $ 152,558 Transfer to Project Fund $ (124,674) $ (61,272) $ (87,132) $ (114,026) $ (141 ,996) $ (171,085)! $ (201,338) , $ (152,558) Total Expenditures $ (124,674) $ (61,272) $ (87,132) $ (114,026) $ (141.996) $ (171.085) $ (201,338) $ Source: ECONorthwest Report Accompanying La Pine Urban Renewal Plan 24 Table 10 -Tax Increment Revenues and Allocations to Debt Service, continued DEBT SERVICE FUND Resources Beginning Fund Balance l1F for URA Total Resources Expenditures Debt SeNice New Loan 2020 New Loan 2025 New Loan 2033 Transfer to DIS Reserve Fund $ -$ -$ -$ -$ -$ -$ $ 446,068 480,097 $ 515,489 $ 552,295 $ 590,575 $ 630,385 $ 671,787 $ $ (92,279) $ (92,279) $ $ (88,267) $ (88,267) $ $ (80,243) $ (80,243) $ 515,489 $ 552,295 $ 590,575 $ 630,385 $ 671,787 $ (92,279) $ (88,267) $ (80,243) $ (92,279) $ (88,267) $ (80,243) $ (92,279) $ (88,267) $ (80,243) $ (92,279) $ (88,267) $ (80,243) $ (92,279) $ (88,267) ' $ (80,243) $ $ (185,279) $ (219,308) $ (254,700) $ (291,506) $ (329,786) $ (369,596) $ (410,998) $ Total Expenditures $ DEBT SERVICE RESERVE FUND Resources Beginning Balance Interest Earnings Transfer from DIS Fund Transfer to Total Ex $ - $ $ -$ $ 185,279 $ $ - $ - $ - $ 219,308 $ - $ - $ - $ 254,700 $ - $ - $ - $ 291,506 $ -$ - $ - $ 329,786 $ - $ 369,596 - $ 714,845 $ 714,845 $ (92,279) (88,267), $ (80,243)1 $ (20,979) $ 433,077 722,407 1,1 (401,253) (791,449) Source: ECONOIihwest. Report Accompanying La Pine Urban Renewal Plan 25 FINANCIAL ANALYSIS OF THE PLAN The estimated tax increment revenues through FY 2040-41, as shown above, are based on projections of the assessed value of development within the Area and the total tax rate that will apply in the Area. The assumptions include new development projects, as identified by the City of La Pine, and minimum growth rates at 4%. There is substantialacreage in the Area that is undeveloped where the full future development value will add to the incremental assessed value of the Area. Table 11 -Historical Assessed Value Growth for City of La Pine FYE 2006 2007 2008 2009 2010 2011 2012 2013 2014 AAGR Source: Real Value $110,142,209 $116,105,105 $122,122,053 $120,412,805 $114,428,058 $113,192,354 $114,364,898 0.63% Personal Manufactured Value Value $6,188,560 $682,140 $6,437,010 $655,270 $7,807,300 $683,310 $6,168,920 $592,710 $5 ,677 ,600 $545,850 $5,503,650 $526,010 $5,278,720 $585 ,520 -2.62% -2.51 % Deschutes M50 Assessed Value Utility Total AVValue Unincorporated Unincorporated $3,016,747 $120,029,656 $3,035,608 $126,232,993 $3,133,730 $133,746,393 $3,453,463 $130,627,898 $5,193,676 $125,845,184 $4,493,122 $123,715,136 $4,542,537 $124,771,675 7.06% 0.65% County Annual Growth Rate 5.20% 6.00% -2.30% -3.70% -1.70% 0.90% Assessor's data Report Accompanying La Pine Urban Renewal Plan 26 FYE Assessed Value Frozen Base Excess Value Tax Rate TIF 2014 $ 29,727,252 $ 29,727,252 $ -14.2205 $ - 2015 $ 30,916,342 $ 29,727,252 $ 1,189,090 14.1930 $ - 2016 $ 33,366,466 $ 29,727,252 $ 3,639,214 14.0291 $ 51,055 2017 $ 34,701,124 $ 29,727,252 $ 4,973,872 14.0166 $ 69,717 2018 $ 36,089,168 $ 29,727,252 $ 6,361,916 13.9079 $ 88,481 2019 $ 37,532,734 $ 29,727,252 $ 7,805,482 13 .8993 $ 108,491 2020 $ 39,034,044 $ 29,727,252 $ 9,306,792 13 .6132 $ 126,695 2021 $ 40,595,406 $ 29,727,252 $ 10,868,154 13.6131 $ 147,949 2022 $ 42,219,222 $ 29,727,252 $ 12,491 ,970 13.6131 $ 170,054 2023 $ 43,907,990 $ 29,727,252 $ 14,180,738 13.6130 $ 193,043 2024 $ 45,664,309 $ 29,727,252 $ 15,937,057 13 .6131 $ 216,953 2025 $ 47,490,881 $ 29 ,727,252 $ 17,763,629 13 .6131 $ 241,818 2026 $ 49,390,516 $ 29,727,252 $ 19,663,264 13.6131 $ 267,678 2027 $ 51 ,366,136 $ 29,727,252 $ 21 ,638,884 13 .6131 $ 294,572 2028 $ 53,420,782 $ 29,727,252 $ 23,693,530 13.6131 $ 322,542 2029 $ 55,557,613 $ 29 ,727,252 $ 25,830,361 13.6131 $ 351,631 2030 $ 57,779,917 $ 29,727,252 $ 28 ,052,665 13.6131 $ 381,884 2031 $ 60,091,114 $ 29,727,252 $ 30,363,862 13.6131 $ 413,347 2032 $ 62,494,759 $ 29,727,252 $ 32,767,507 13.6131 $ 446,068 2033 $ 64,994,549 $ 29,727,252 $ 35,267,297 13.613] $ 480,097 2034 $ 67,594,331 $ 29,727,252 $ 37,867,079 13.6131 $ 515,489 2035 $ 70,298,104 $ 29,727,252 $ 40,570,852 13 .6131 $ 552,295 2036 $ 73,110,028 $ 29,727,252 $ 43,382,776 13.6131 $ 590,575 2037 $ 76,034,428 $ 29,727,252 $ 46,307,176 13 .6131 $ 630,385 2038 $ 79,075,805 $ 29,727,252 $ 49,348,553 13.6131 $ 671 ,787 2039 $ 82,238,837 $ 29,727,252 $ 52,511,585 13.6131 $ 714,845 2040 $ 85,528,391 $ 29,727,252 $ 55,801,139 13.6131 $ 759,626 Table 12 shows the projected incremental assessed value, projected tax rates that would produce tax increment revenues , and the annual tax increment revenues (not adjusted for under-collection, penalties, and interest). These projections of increment are the basis for the projections in Table 16. Revenue sharing is projected to be a feature of this urban renewal plan in the final year, FY 2040/41. However, if growth occurs at a faster pace, the Area will commence revenue sharing at the time required by the stature, the year after the tax increment proceeds equal 10% of the initial maximum indebtedness . Table 12a -Projected Incremental Assessed Value, Tax Rates, and Tax Increment Revenues . Source : ECONorthwest Report Accompanying La Pine Urban Renewal Plan 27 Table 12b -Projected Revenue Sharing I -----rTF Tn-;-----Til-=---I i I 2014 $0 $0 $0 2015 $0 $0 $0 2016 $51,055 $51,055 $0 2017 $69,717 $69,717 $0 2018 $88,481 $88,481 $0 2019 $108,491 $108,491 $0 2020 $126,695 $126,695 $0 2021 $147,949 $147,949 $0 2022 $170,054 $170,054 $0 2023 $193,043 $193,043 $0 2024 $216,953 $216,953 $0 2025 $241,818 $241,818 $0 2026 $267,678 $267,678 $0 2027 $294,572 $294,572 $0 2028 $322,542 $322,542 $0 2029 $351,631 $351,631 $0 2030 $381,884 $381,884 $0 2031 $413,347 $413,347 $0 2032 $446,068 $446,068 $0 2033 $480,097 $480,097 $0 2034 $515,489 $515,489 $0 2035 $552,295 $552,295 $0 2036 $590,575 $590,575 $0 2037 $630,385 $630,385 $0 2038 $671,787 $671,787 $0 2039 $714,845 $714,845 $0 2040 $759,626 $722,407 $37,220 Source: ECONorthwest Report Accompanying La Pine Urban Renewal Plan 28 IIMPACT OF THE TAX INCREMENT FINANCING This section describes the impact of tax increment financing of the new maximum indebtedness, both until and after the indebtedness is repaid, upon all entities levying taxes upon property in the urban renewal area. The impact of tax increment financing on overlapping taxing districts consists primarily of the property tax revenues foregone on permanent rate levies and local option levies as applied to the growth in assessed value in the Area. These projections are for impacts estimated through FY 2040­ 41, and are shown in Tables 13a and 13b. Revenue sharing is part of the 2009 legislative changes to urban renewal and means that, at thresholds defined in ORS 457.470, the impacted taxing jurisdictions will receive a share of the incremental growth in the area. The share is a percentage basis dependent upon the tax rates of the taxing jurisdictions. The first threshold is 10% of the original maximum indebtedness. At the 10% threshold, the urban renewal agency will receive the full 10% of the initial maximum indebtedness plus 25% of the increment above the 10% threshold and the taxing jurisdictions will receive 75% of the increment above the 10% threshold. The second threshold is set at 12.5% of the maximum indebtedness, however the projections do not estimate this threshold is met. Revenue sharing is projected to commence during the final year of the 25-year life of tax increment proceeds of the Plan. The La Pine School District and the 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 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. The formula for funding schools did not change in the 2012 legislative session. Dedicating efforts to maintaining a healthy downtown is one variable in a livable city. These efforts will produce spin-off economic benefits in terms of increased economic development in the area, increased jobs, and expected increases in overall populations, including the student populations in the schools. These increases in the schools' populations will bring in more funding to the schools through the per pupil funding formula. Tables 13a and 13b show the projected impacts to permanent rate levies of taxing districts as a result of this Plan. It assumes the growth as projected in the other tables in this Report, a 4% average annual growth rate in assessed value. Table 13a shows the general government levies and Table I3b shows the education levies. I f i ~ Report Accompanying La Pine Urban Renewal Plan 29 I t I Table 13a -Projected Impact on Taxing District Permanent Rate Levies General Government CITY OF LArINI' RURAL LAPINE PARKS LAPINE FIRE DISTRICT ANDREC 2016 (4,652) (2,002) (3,457) (5,095) (82) (589) (7,024) (5,603) (1,092) (29,596) 2017 (6,358) (2,736) (4,725) (6,963) (111) (805) (9,600) (7,658) (1,492) (40,448) 2018 (8,132) (3,499) (6,044) (8,907) (143) (1,029) (12,279) (9,795) (1,909) (51,737) 2019 (9,978) (4,293) (7,415) (10,928) (175) (1,263) (15,065) (12,018) (2,342) (63,477) 2020 (11,897) (5,119) (8,842) (13,030) (208) (1,506) (17,962) (14,330) (2,792) (75,686) 2021 (13,893) (5,977) (10,325) (15,215) (243) (1,758) (20,975) (16,734) (3,260) (88,380) 2022 (15,968) (6,871) (11,867) (17,489) (280) (2,021) (24,109) (19,234) (3,748) (101,587) 2023 (18 ,127) (7,799) (13,472) (19,853) (318) (2,294) (27,369) (21,834) (4,254) (115,320) 2024 (20,372) (8,765) (15,140) (22,312) (357) (2,579) (30,759) (24,538) (4,781) (129,603) 2025 (22,707) (9,770) (16,875) (24,869) (398) (2,874) (34,284) (27,351) (5,329) (144,457) 2026 (25,136) (10,815) (18,680) (27,529) (440) (3,182) (37,950) (30,276) (5,899) (159,907) 2027 (27,661) (11,901) (20,557) (30,294) (485) (3,501) (41,763) (33,317) (6,492) (175,971) 2028 (30,287) (13,031) (22,509) (33,171) (531) (3,834) (45,728) (36,481) (7,108) (192,680) 2029 (33,019) (14,207) (24,539) (36,162) (579) (4,179) (49,853) (39,771) (7,749) (210,058) 2030 (35,860) (15,429) (26,650) (39,274) (628) (4,539) (54,142) (43,193) (8,416) (228,131) 2031 (38,814) (16,700) (28,846) (42,509) (680) (4,913) (58,602) (46,751) (9,109) (246,924) 2032 (41,887) (18,022) (31,129) (45,875) (734) (5,302) (63,241) (50,452) (9,830) (266,472) 2033 (45,082) (19,397) (33,504) (49,374) (790) (5,706) (68,066) (54,301) (10,580) (286,800) 2034 (48,406) (20,827) (35,974) (53,014) (848) (6,127) (73,084) (58,304) (11,360) (307,944) 2035 (51 ,862) (22,314) (38,542) (56,799) (909) (6,564) (78,302) (62,467) (12,171) (329,930) 2036 (55,456) (23,861) (41,214) (60,736) (972) (7,019) (83,729) (66,797) (13,015) (352,799) 2037 (59,195) (25,469) (43,992) (64,830) (1,037) (7,493) (89,373) (71,299) (13,892) (376,580) 2038 (63,082) (27,142) (46,881) (69,088) (1,105) (7,985) (95,243) (75,982) (14,805) (401,313) 2039 (67,126) (28,881) (49,886) (73,516) (1,176) (8,496) (101,347) (80,852) (15,753) (427,033) 2040 (67,836) (29,187) (50,414) (74,294) (1,189) (8,586) (102,419) (81,707) (15,920) (431,552) Total (822,793) (354,014) (611,479) (901,126) (14,418) (104,144) (1,242,268) (991,045) (193,098) (5,234,385) Source: ECONOIthwest RepOit Accompanying the La Pine Urban Renewal Plan 30 Table 13b -Projected Impact on Taxing District Permanent Rate Levies Education 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) Source: ECONorthwest. Please refer to the explanation of the schools funding in the preceding section Report Accompanying the La Pine Urban Renewal Plan 3] Table 14 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 14 -Percent of Permanent Rate Levy Jurisdiction Deschutes County County Library Countywide Law Enforcement Rural Law Enforcement County Extension 4H 911 City of La Pine La Pine Rural Fire District La Pine Parks and Rec School District #1 High Desert ESD Central Oregon Communi 2013/14 levy 23,747,378 10,143,587 17,520,004 8,381,815 414,250 2,984,946 241,294 1,797,468 212,002 60,640,139 1,720,682 11,070,002 2016 tax increment revenue 4652 2002 3457 5095 82 589 7024 5603 1092 17,338 351 2258 percentage of permanent rate levy 0.02% 0.02% 0.02% 0.06% 0.02% 0.02% 2.91% 0.31% 0.52% 0.03% 0.02% 0.02% Source: Deschutes County Assessor records Report Accompanying La Pine Urban Renewal Plan 32 • Table 15 shows the projected increased revenue to the taxing jurisdictions after tax increment proceeds are projected to be terminated. These projections are for FY 2041/42. Table 15 -Additional Revenues Obtained after Termination of Tax Increment Financing From Frozen From Expiration Jurisdiction Base ofURA Deschutes County $ 1.2783 $ 38,000 $ 75,704 $ 113,704 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 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 ESO $ 0.0964 $ 2,866 $ 5,709 $ 8,575 Central Oregon Community College $ 0.6204 $ 18,443 $ 36,741 $ 55,184 Source: ECONorthwest 33Report Accompanying La Pine Urban Renewal Plan COMPLIANCE WITH STATUTORY LIMITS ON ASSESSED VALUE AND SIZE OF URBAN RENEWAL AREA 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 25% for municipalities under 50,000 in population. As noted below, the frozen base, including all real, personal, personal manufactured, and utility properties in the Area, is projected to be $28,945,892. The total assessed value of the City of La Pine is $124,771,675. This is 23.20% of the total assessed value, below the 25% maximum. The Urban Renewal Area has 577.13 acres, including right-of-way, and the City of La Pine has 4,474.33 acres; therefore 12.90% of the City's acreage is in an urban renewal area, below the 25% state limit. It should be noted that over 300 of these acres are the BLM parcel for a future Rodeo/Event site. Table 16 -Urban Renewal Area Conformance with Assessed Value and Acreage Limits - Source: City of La Pine, Deschutes County Assessor IRELOCATION REPORT -~---~ ---------~ --­ AssessedUrban Renewal Area AcresValue La Pine Urban Renewal Area $28,945,892 577.13 City of La Pine $124,771,675 4,474.33 Percent of La Pine Assessed Value in Urban Renewal 23.20% Percent of La Pine Acreage in Urban Renewal 12.90% There is no relocation report required for the Plan. No relocation activities are anticipated . Report Accompanying La Pine Urban Renewal Plan 34