Coos Bay City Council Public Hearing on Empire Urban Renewal Plan Amendment July 20, 2021
Urban Renewal is not a direct property tax, but the TIF process creates a debt that must be repaid by the other overlapping taxing districts like the county, the college, the schools, and the city of Coos Bay.
The Coos Bay City Council will hold a public hearing on July 20, 2021, during the regular Council meeting which begins at 7 p.m. to discuss, take public comment and consider an ordinance on the proposed Empire Urban Renewal Plan 2021 Substantial Amendment. A copy of the ordinance, the proposed Empire Urban Renewal Plan 2021 Substantial Amendment and accompanying report may be obtained by contacting the City Finance Department at: 541-269-8915 or finance@coosbay.org.
The Empire District and its urban renewal plan was established in 1995 and is governed by a seven-member board comprised of the Coos Bay City Councilors. Annual budgets are prepared, approved, and adopted through a public process as required by Oregon Revised Statutes. Urban Renewal is used as a mechanism to jump-start area growth and improvements. The development of an Urban Renewal Agency (URA) involves consensus of overlapping taxing districts and creates a “frozen tax base” for all properties within the identified district. From that point on and for a determined time, the increases in value of the district provide “Tax Increment Financing” (TIF) for district projects. This tool, while creating a tax base for the district, does not result in higher taxes to property taxpayers. Rather, the overlapping taxing districts have agreed to the TIF going directly to the URA for support of projects identified within the plan. Plans may be amended to include new projects, to extend the life of the district, or to add/subtract area from the district. URAs provide a funding source that would otherwise be unavailable; the projects completed would not be done, “but-for” urban renewal.
The Amendment includes proposed maximum indebtedness for the Empire Urban Renewal Plan Amendment of $29,000,000 which is an increase of $10,109,989. Most of these funds will be allocated to street repairs in the Empire Urban Renewal Area and brownfield remediation. The ordinance, if approved, is subject to referendum. The Amendment does not increase property tax rates. The proposed Amendment also includes addition of land area to the district (small area of land within John Topits Park previously identified as the location for the new library site); time extension of the plan due to the maximum indebtedness; and addition of projects to the plan (library site development including utility delivery and traffic related improvements, and brownfield remediation). This proposed Plan Amendment will provide continuing capacity towards efforts to encourage investment and development in the Empire District with focus on livability and business stability, followed by renewed recreation and increased tourism.
With consensus of the overlapping taxing districts to forego tax revenue for the support of the URA projects, the community benefits without an increase in permanent tax rates. Members of the City’s Plan Amendment Team have met with several of the overlapping taxing districts, presenting materials to these district’s governing bodies, resulting in support from these districts.
