Why use Urban Renewal in Cornelius? How is an Urban Cornelius is in the process of completing a Renewal Plan Town Center Plan that will provide guidance Adopted? for developing Cornelius as a vibrant and Prior to being adopted by prosperous city, drawing people in from other the City Council, every areas of the city and neighboring communities. Urban Renewal Plan must The Town Center Plan will contain a list of go through the public projects that should be completed to enable review process which Cornelius to develop according to the vision of includes: its citizens. The funding from creating an urban renewal area will provide a financing  Urban Renewal Agency meeting tool to help complete these projects and other  Consult and confer with all overlapping needed projects in your community. taxing districts  County briefing What is Urban Renewal?  Planning Commission meeting Urban Renewal is one of the few tools for  City Council hearing and vote encouraging local economic development. It has been used for decades in cities including Any action by the City Council must be by more than 100 urban renewal areas in Oregon. non-emergency ordinance and after a public Urban renewal plans provide cities with an hearing is held. Notice of the public hearing alternative revenue stream called tax increment must be sent to households in the city. Non- financing. This revenue stream may be used on emergency ordinances can be referred to voters projects and programs in specifically within 30 days of adoption. designated urban renewal areas. How does Tax Increment Financing How is an Urban Renewal Plan Started? Work? Cornelius convened a Technical Advisory While urban renewal itself does not increase Committee to discuss urban renewal boundary property tax rates, it does function on the options, potential projects, and financial increases in property tax revenues from year- information. Upon completing the advisory to-year. An individual property tax payer’s committee process, the recommendations will property taxes may increase for two reasons. be used to prepare an Urban Renewal Plan One, the assessor can increase property values which will establish an official urban renewal at a rate of 3% per year and does so in most boundary, goals and objectives for the area, cases, and, two, if the individual completed a and outline projects and programs which will substantial renovation or new construction on help improve conditions of the area. The plan their property resulting in increased assessed also sets the spending limit, or maximum valuation. When an urban renewal area is indebtedness, for the urban renewal area. The created the property tax revenue from that area Urban Renewal Plan is also accompanied by a is diverted into two revenue streams. The first technical report which contains the financial stream is called “the frozen base”. The frozen feasibility analysis and makes projections for base is the total assessed value of the urban when funding will become available to pursue renewal area from the year the urban renewal projects within the area. area was formed. The property taxes from the

frozen base revenue stream continues to go to yearly tax increment financing revenues. The the regular taxing jurisdictions, such as the expenses for an urban renewal agency are its city, the county, and the school district. The yearly expenditures on projects, programs and second revenue stream is any increase over the administration. The spending limit for an urban frozen base which is called “the increment”. renewal agency is its maximum indebtedness. The increment represents the basis for tax Maximum indebtedness is the total amount of increment financing and is any increase money that can be spent in an urban renewal assessed valuation and the resulting property area on projects, programs and administration. tax revenues above the frozen base. The second revenue stream goes to the urban What types of Programs or Projects are renewal agency for use on projects, programs, Eligible under Urban Renewal? and administration throughout the life of the Urban renewal agencies can do certain projects district. or activities under an adopted Urban Renewal Plan. These activities generally include: How are Overlapping Taxing Districts  Construction or improvement of public Impacted by Urban Renewal? facilities including streets, utilities, parks The overlapping taxing districts continue to and other public uses. receive property tax revenues on the frozen  Acquisition and improvement of property. base assessed value of the area, but do not  Participation with developers for property receive property tax revenues from any growth improvement. in the area. Schools are not directly impacted by urban renewal. They are funded on a per- How does Urban Renewal Impact student basis from the State School Fund as Property Tax Payers? determined by the Oregon Legislature. That The “division of taxes”, which represents the per-student funding amount is not directly vast majority of tax increment financing impacted due to urban renewal in your revenues, does not increase property tax rates. community. Regardless, every taxpayer in a city where an urban renewal district exists will see an Once an urban renewal area is terminated, indication of urban renewal as a line item on there will generally be an increase in property their property tax bill. This can be confusing, tax revenues to all taxing jurisdictions. This but just remember that when an urban renewal increase of property tax revenue is a result of area is created, it changes how the existing the ability to concentrate funding in a specific taxes paid on a property are divided out area, encouraging economic development in amongst the taxing districts. Your property tax the area. bill amount would remain exactly the same How does an Urban Renewal Area with or without urban renewal - the money Function? would just be distributed differently among the An urban renewal area is run by an urban taxing jurisdictions. This division of taxes renewal agency which at its most basic level allows for a portion of the property taxes to be has income, expenses, and a spending limit. paid to the urban renewal agency to complete The income for an urban renewal agency is its projects in your community.