During last night’s City Council meeting, the Council, by a vote of 6-1, gave preliminary approval to adopt the Core Area Tax Increment Finance Plan and establish the Core Area Tax Increment Finance Area. The plan identifies up to $195 million in tax increment financing for projects that support the development and redevelopment of the 637-acre Core Area over a 30-year period. Final approval is scheduled for August 19.
The Core Area primarily includes the Bend Central District, East Downtown, inner Highway 20/Greenwood and KorPine opportunity areas from the 2016 Urban Growth Boundary expansion and Comprehensive Plan update, which identified the need for about 1,900 new housing units and about 1,700 new jobs to meet our state-mandated housing and employment goals. Revenue generated from tax increment financing (TIF) are to be invested in capital projects, such as:
- Transportation, streetscape and utility infrastructure
- Affordable housing assistance, partnership and support
- Business assistance, partnership and support
- Open space, facilities, amenities and wayfinding
- Plan administration, implementation, reporting and support
A list of identified projects with descriptions are provided in the Core Area Tax Increment Finance Plan (Page 11).
Tax increment financing is not a new tax on property and does not increase the amount a property owner pays in property taxes; it is a financing mechanism used throughout Oregon to implement city plans in designated areas. Tax increment financing makes investments that spur private development that would otherwise not have occurred. Revenue for a tax increment financing plan is generated by the growth in assessed property value from new development and/or redevelopment within the area. Property owners do not receive an increase in taxes from tax increment financing.
While the Core Area is an active tax increment financing area, other taxing jurisdictions’ revenue from that area remains largely fixed. The tax revenue from the increase in assessed values will go to the Bend Urban Renewal Agency to pay for projects that support investment, development and/or redevelopment as outlined in the Core Area Tax Increment Finance Plan. When the tax increment financing area expires, taxing jurisdictions can expect to receive additional tax revenue due to increases in assessed values supported by the investments made in the area.
By separate motion, Council voted 4-3 to recommend the Bend Urban Renewal Agency consider an “under-levy” for the 2021/2022 fiscal year; which would redirect the potential tax increment revenue generated by the Core Area Tax Increment Finance Plan back to the affected taxing districts. This action would ensure that over the next 24 months, the Core Area Tax Increment Finance Plan does not impose a financial impact on the affected taxing districts annual budgets.
The Core Area Tax Increment Plan was developed over a 14-month public planning process that included input from the Urban Renewal Advisory Board, taxing districts, property and business owners, public agency partners and community members. The process also included five pop-up outreach events in the Core Area, two open houses and two online surveys.
Learn more at bendoregon.gov/core-area-tif.
