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HomeMy WebLinkAbout2023-06-05 Study Sessionrn5irl":11 Courid"I Study Sessliorli Agerida ASHLAND CITY COUNCIL STUDY SESSION AGENDA Monday, June 5,2023 Council Chambers, 1175 E Main Street View on Channel 9 or Channels 180 and 181 (Charter Communications) or live stream via rvtv.sou.edu select RVTV Prime. HELD HYBRID (in -Person or Zoom Meeting Access) Public testimony will be accepted for both general public forum items and agenda items. Please complete the online Public Testimony Form, for WRITTEN and ELECTRONIC testimony only. Indicate on the Public Testimony Form if you wish to provide WRITTEN testimony, or if you wish to speak ELECTRONICALLY during the meeting. Please submit your testimony no later than 10:00 a.m. the day of the meeting. 5:30 p.m. City Council Study Session 1. Public Input (up to 15 minutes) 2. Annual Police Report 3. Croman Mill Redevelopment Update 4. Adjournment of Study Session In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Manager's office at 541.488.6002 (TTY phone number 1.800.735.2900). Notification 72 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to the meeting (28 CFR 35.102-35.104 ADA Title 1). Page I of I Council Study Session June 5, 2023 erg bier —T-Ashland -'—Police --Department --Annual Report To Council (Formerly —Use —o—f,--Force) From Tighe O'Meara Police Chief i Items T Requested by Council ❑Update ❑ Request r Direction 1:1 Presentation X SUMMARY Since 2008 the police department has come before Council to provide an annual use of force report. This presentation has grown in scope and now includes use of force, crime and clearance rates, an update on the enhanced law enforcement area (ELEA), as well as the most recent data from Statistical Transparency Of Policing (STOP). POLICIES, PLANS & GOALS SUPPORTED 47. Keep the Council informed of organizational activity and provide timely information for Council decision -making. BACKGROUND AND ADDITIONAL INFORMATION Use of Force Information During 2022 the Police Department used force 14 times. In 2022 12 of the incidents involved subjects who were identified as white, one was identified as being black and one was unknown (deployment of spike strips on a fleeing vehicle). All subjects were identified as being male. Of the 14 uses of force: -the TASER was deployed and used on four occasions -OC (pepper) spray was not used -the less lethal shotgun (which shoots a bean bag projectile to incapacitate a suspect) was not used in 2022 -officers displayed a firearm on five occasions in 2021 -the rest of the incidents involved empty-handed techniques such as take downs, joint locks, control holds and empty-handed strikes. The department's use of force review board reviews all instances of use of force. All the incidents of use of force in 2022 were deemed to be within policy. Page I of 5 CITY OF ASHLAND In 2022 the Ashland Police Department handled 29,073 calls for service and investigated 2,650 cases. This means that one half of one percent (005%) of the cases handled by the department resulted in a use of force. During 2022 Ashland officers received a total of 1 ;3 06 hours of use of force training. Crime Rates and Clearances Reported crime statistics can be influenced by several factors. Several team members, both internal and external, both sworn and non -sworn, touch APD reports and ensuring 100% accuracy in reporting is very problematic and hard to achieve. Every year the APD reports its crime statistics to the State of Oregon, and through them to the Federal Bureau of Investigation. While these reported crime statistics may not be exactly a I for I match depending on which database is accessed and which report is analyzed, they do paint a generally accurate picture of crime in Ashland. Additionally, staffing changes have caused some processes to be lost, leading to those processes needing to be recreated. APD will work toward additional training for its entire team to ensure the most accurate reporting possible going forward. In previous years APD has brought info to Council on what had been termed "Part I Crimes." "Part I crimes" were those that were reported annually to the FBI for inclusion in the Uniform Crime Report. They were homicide, rape, robbery, aggravated assault, burglary, auto theft, arson and larceny. Nationally all law enforcement agencies have moved from Uniform Crime Reporting to a new system called National Incident Based Reporting System that has re -categorized reported crimes. However, for purposes of continuity APD is still reporting what were previously called "Part I crimes." In 2022 the city saw a total of 526 "Part I crimes." This is up slightly from the 421 reported in 2021. Violent crime is defined as homicide, rape, robbery and aggravated assault. There were 36 violent crimes reported to the Ashland Police Department in 2022, up slightly from 31 in 2020. Clearance rates for violent crime remain very high at 63%. Page 2 of 5 C I T Y 0 F -ASHLAND Reported Criminal Activity Aft Crime data for the state is available for public viewing at oregon.gov/osp/pages/unifonn-crime-reporting- data.aspx Enhanced Law Enforcement Area The Enhanced Law Enforcement Area (ELEA) ordinance has been in effect since August of 2012. The ELEA is roughly defined as downtown. In this area we see a concentrated number of complaints and disorderly behavior as this is the focal gathering point for many members of the community. A conviction of three or more qualifying violations (or crimes) in Ashland Municipal Court within a six-month period may result in a person being expelled from the downtown area. The expulsion has judicial review, in that only the Municipal Court Judge can authorize it. The qualifying violations are: scattering rubbish; unnecessary noise; dogs -control required; consumption of alcohol; open container of alcohol; dog license required; or use of marijuana in public. In 2022 there were 79 ELEA violation convictions in the municipal court. There was one person expelled from the downtown area and there were two people charged with persistent violator failure to appear under the city ordinance. The ELEA continues to be a valuable tool to address chronic negative behavior. For several years we have used calls for service downtown for disorderly -type behavior as a metric for quality of life issues downtown. 2021 saw a continued decrease from the high in 2017. The metric tracks calls for service such as disorderly behavior, drinking in public, urinating in public as well as others. 2014: 199 2015: 322 2016: 335 2017: 360 2018: 216 2019: 198 2020: 126 2021:137 2022: 147 Page 3 of 5 CITY OF -ASHLAND 400 350 300 250 200 150 100 50 0 2014 DISORDERLY CFS DOWNTOWN 2015 2016 2017 2018 2019 2020 2021 2022 Statistical Transparency of Policing (STOP) The Oregon legislature has mandated that all police officers in the state record certain demographic and enforcement data for officer -initiated enforcement stops. The most recent data that is available is for the period of July 1, 2021 through June 30, 2022. This data is available through the department's webpage under the "STOP Data" button. For that period of time data for the Ashland Police Department indicates that officers initiated enforcement stops involving individuals identified as follows: STOP Data m White a Black , ME NA ® Asian/Pl m Latinx Asian or Pacific Islander 5% Middle Eastern I % Black 5% Native American 0% Latinx 8% White 82% Page 4 of 5 CITY OF -ASHLAND This data is dependent on officers' observations, not an inquiry, and seems to be consistent with Ashland's demographics. Due to staffing and officer deployment issues over the last two years self -initiated activity such as traffic stops fell off from 3,193 in 2021 to 1,603 in 2022. The department is working to bring this number back up as staffing numbers stabilize. The Ashland Police Department will always strive to equitably serve the entire community. With that in mind, we need to recognize that STOP data will never match up perfectly with demographic data for the community. Demographic data varies from source to source, so the exact representation of a specific race within the community cannot be perfectly known. Also, we need to recognize that STOP data is solely dependent on an officer's perception and is not derived from an inquiry into how the person identifies. STOP data does not allow for a person to be identified as multi -racial, which many people do. Demographic data does allow for this, and 34% of the Ashland population identifies as such. Ashland is a tourist town, a university town, and is on the 1-5 corridor as well. All of this information skews the data on who is actually present in the community and how they might be perceived by the officer. Again, this all comes together to create a situation that will never allow the STOP to perfectly match up with the demographic data. Also, again, and most importantly, we will always work to make sure all members of the community are being treated equitably. FISCAL IMPACTS N/A DISCUSSION QUESTIONS N/A SUGGESTED NEXT STEPS This report will continue annually with additional topics being included if Council requests it. REFERENCES & ATTACHMENTS None Page 5 of 5 CITY OF ASHLAND SUMMARY The Council had previously requested that the firm looking utredevelopment Vfthe former Cronnon Mill site provide regular updates as their plans to redevelop the property move forward. The Council last heard from Townmakers at the February 7, 2023 regular meeting, POLICIES, PLANS &GOALS SUPPORTED The CwommamMill District: CMDnuroentivino|udeoMvozones,Cornpctib|o|nduatrio|/rM-CA,MixodUae (CM -MU), Neighborhood Center (CM -NC), Office Employment (CM -OE), and Open Space/conservation (CM -OS) and is regulated as a special district within Ashland's Land Use Ordinance 2023-2031NoumUng Production Strategy. Strategic Achon-Emakuote using UdbonRenewxal-^ThoCitvwiU evaluate the potential to use Urban Renewal to support infrastructure and affordable housing. The City would need to develop and implement an Urban Renewal Plan, establish an Urban Renewal Agency, and select projects tofund through Urban Rmnevvoi" Adopted Implementation Timeline: Evaluate approach, -2O2G;Develop plans -2O27; Adopt -2O2O BACKGROUND AND ADDITIONAL INFORMATION |nSeptember of2021,the owners nfdleformerCmmonMiUahe,ondthedmve|opmentteamnomed TownrnokemLK,began conceptualizing the future development ofthe property for nmixed-use development incorporating commercial, employment, light industrial and residential uses. The changes envisioned by Townmakers LLC would require amendments to the adopted standards and allowable use, which would require legislative action bvthe City Council. Upon presenting onupdate iothe City Council on October 3, 2022, the Council requested intermittent updates from Townmakers LLC regarding the pro|eot'm progress. Tmwnrnokero LLC presented to the City Council on Februory7t", 2023, regarding their future development proposal, and are returning this evening with further updates. The property is comprised of multiple parcels totaling 60.92 acres in size and is currently within the CFornonMill District. All but Gacres Vfthe property are currently within the City Limits. The 8-oorwportion cd the property outside the City Limits is located along Siskiyou Blvd., is within the Urban Growth Boundary, and would be annexed as part of the development proposal. Townmakers LLC. has created odraft conceptual plan for the site's future development and has presented the general concept to the Planning Commission, the City Council, and in January of 2022 held an open house to share the concept and take Page /of4 � � feedback from the public. Revisions to this plan including research on Transportation impacts, Economic Land Needs, and infrastructure needs and financing are ongoing. As the Council is ovvone, the former Mill site is undergoing testing for environmental contaminants to determine the degree of clean up required as a preliminary action to Tovvnrnobera LUC'apurchoso of the property. This investigation, and any subsequent cleanup activity, is being undertaken hythe current property owner, Dwain and Bud LLC, under the oversight of the Oregon Department of Environmental Quality /DE0\. DEQ was on site to oversee sampling by the property owners' environmental consultant on May 2, 2023. At that time, DEQ representatives spoke with City Councilors, staff and interested citizens in attendance. Testing of the oornp|ed rnotedo|a will occur over this aurnnnor (there is o backlog of tests nationwide due to testing n*|ohed to spills from the recent train derailments) and will ultimately aid in developing o plan for clean-up of the property under UEQ'o voluntary clean-up program. DE0 representatives are tentatively scheduled to discuss the preliminary test results at the July 31, 2023, study session tohelp inform the City ofthe result. This agenda item does not relate to the site o|ean-upThis Study Session item will provide TownmokersLLC with the opportunity to discuss progress in their planning for the project. Specific discussion items are likely to include the appropriate phasing of commercial and ornP|nynnert uses relative to housing construction, and Townmakers LLC hopes to gauge the Council's interest in establishing an Urban Renewal District and and using tax increment financing (TIF) as a tool to aid in providing needed public infrastructure to support redevelopment ofthe site. The applicants have indicated that their municipal finance consultants will be available at the meeting to respond to questions relating to the potential use of tax increment financing. Tax Increment Financing Overview Tax Increment Financing (TIF) is a financing mechanism that allows municipalities to fund redevelopment or infrastructure projects using future increases in property tax revenue within o designated area. In the case of the City of Ashland, Oregon, partnering with a private developer, the TIF process would involve the following general steps: l. Creation of an Urban Renewal District: The City of Ashland would delineate a blighted or underdeveloped area within its jurisdiction and designate itoouT|Fdistrict. The district boundaries would be established, and o plan for redevelopment or infrastructure improvement would be formulated. 2. Baseline Property Assessment: The current assessed value of properties within the Urban Renewal District is determined. This value represents the baseline property tax revenue that the city currently receives from the district. 3. Analysis of Impacted Taxing Districts: Todetermine which taxing authorities would participate in the requested TIF, an analysis of other impacted taxing districts would be necessary. This analysis would involve assessing the potential participation and effects of the TIF on entities such as the Ashland School District, Jackson County, and other relevant taxing authorities. itioimportant to understand the potential impact on their tax revenue and whether they would agree to participate in the Urban Renewal DiotrictT|F. Page 2of4 4. Project Development: The City of Ashland, inpartnership with the private developer, would collaborate to identify specific redevelopment or infrastructure projectsthat align with the goals of the TIF district which are in the public interest and would not otherwise be provided by the private developer. These projects could include improving public infrastructure, promoting economic development, constructing affordable housing, among others. 5. Implementation and Property Tax Collection: As the redevelopment projects are implemented, property values within the TIF district are expected to increase. The difference between the new property tax revenue and the baseline revenue is referred to as the "tax increment." 6. Allocation of Tax Increment Revenue: The tax increment revenue is typically used to repay the bonds issued for the project financing. The revenue can also be used for additional infrastructure improvements within the Urban Renewal District or other economic development initiatives. These "tax increments" collected over time are invested to pay off the improvements within the district funded bvthe TlFprogram. 7. Value to the City: o. Funding for Development: TIF allows the city to finance projects that may otherwise be financially unfeasible. By leveraging the future increase in property tax revenue, the city can undertake redevelopment initiatives without relying solely on its existing budget. b. Stimulating EonnVrnio Growth: TIF promotes economic growth by attracting private investment and revitalizing blighted areas. The partnership with o private developer brings additional resources, expertise, and potential job creation tothe city. o. Increased Tax Base: As the TIF district undergoes redevelopment, property values rise, resulting in an expanded tax base. This increase in property tax revenue benefits the city beyond the Urban Renewal District, contributing to overall municipal revenues. d. Community Development: Urban Renewal Uia1rio1T|F enables the city to address community needs by funding public infrastructure improvements, affordable housing, and other community -oriented projects. It can help transform neglected areas into vibrant, livable spaces, enhancing the quality oflife for residents. FISCAL IMPACTS The fiscal impacts related to the Zoning Amendment project fall into two categohes-(ity staff time and specialized analysis requiring outside oxperdoe Review ofoproposal toamend the CrornonMill District implementing ordinances will require the dedication of Staff time from the Cornrnunkv Development, Public Works, and Legal departments to review proposed amendments to the land use ordinances and proposed infrastructure development plans. Approval ofamendments tothe Land UemO[dinonceornendnnentoondTronnpnrtotionSVo1ennP|on/rSP\re|oUngtooCronnonMiU0atriot Redevelopment plan will be necessary. Consideration of the formal development proposal would be V legislative decision with public hearings before the Planning Commission and City Council. 4City supported Urban Renewal District T|Ftosupport the development offacilities muses inthe public interest would have additional Fiscal Impacts for the City which would require careful evaluation and consideration. The City cf Ashland would need tofollow Oregon's T|Flaws and Page aof4 ��`��� requiations, including conducting an analysis of other impacted taxing districts, to determine which taxing authorities would participate in the requested TIF and the revenue that could be realized. DISCUSSION QUESTIONS Townmakers LLC is available at this Council study session to address questions the Council may have prior to formalizing a development proposal to submit for consideration. * What site related infrastructure would the Urban Renavvn| DiatriotT|F provide for vs. the developer and what are its estimated costs? ~ What sort ofbusinesses and corresponding job -creating uses does the applicant envision will be attracted to the project (retail, restaurant, maker, |igh1industrio|/oore employment uuon\? ° What would be the process and timeline for implementing Urban Renewal District TIF here? o What would be the public benefits and costs to the city of implementing tax increment financing? ° How will affordable housing beincorporated into the project? (i.e. affordability level, number of units, partners) • How will con* employment uses be ensured within the district given the proposed flexibility in zoning? REFERENCES &ATTACHMENTS Attachment #l:Materials provided bvTownrnoka[uLUC Attachment #2: League of Oregon Cities handout on Tax Increment Financing Attachment #3: Current CMD map Page 4of4 WV TOWNMAKERs LLC PARTNER PROPOSAL TO UNLOCK THE CROMAN MILL SITE Background document on a potential development strategy for "world class development," Summary Many Ashland citizens are eager to see the site of the former Croman Mill cleaned up and developed into a beneficial new district for the city. Towumakers LLC and its team also sees an opportunity for an innovative and successful new development on the site, and they intend to move forward on acquisition and redevelopment. However, if the site is to be more than simply another form of conventional development, careful strategy and collaboration will be needed. In a recent report on economic diversification of the City, the economics consulting firm ECONorthwest describe the Croman Mill site as "Perhaps the property with the most potential to redefine its area," with a mixed -use development that provides family -wage jobs, employment and needed housing.' Accordingly, the Townmakers team's draft master plan features a walkable, mixed, livable, sustainable form of urbanization that will exploit climate -friendly strategies, seek to add core employment and family wage jobs, and provide much -needed housing supply, including affordable and workforce housing. Left: the site. Right: the current master plan showing potential use areas. I onDiversificationStrategy.pdf Broadly speaking, we plan to pursue two complementary strategies. One strategy is to try to capture existing markets for employment -generating industries, including agriculture -related products, technology businesses, and the like. Another, complementary strategy, which we feel could be more appropriate for Ashland, would be to build on the unique qualities, assets and local culture of the city, generating more businesses at a smaller and more local scale — including a diverse range of pay scales. Examples might include craft -based and value-added food and beverage products, specialty technologies, recreation -related businesses, businesses related to sustainability and climate change, fire resilience expertise, research and consulting expertise, and lifestyle -related health and wellness innovations, as well as other emerging opportunities. Such an "ecosystem" of smaller businesses and so-called "makerspaces," could be highly complementary to the more sustainable development model of a walkable, mixed -use, live -work -play district — and crucially, one that is complementary to, and not competitive with, other areas and established businesses of the city. Accelerating Success with a Tax -Increment Finance District Townmakers believes that this development model can be successful. However, the project can better deliver on addressing city-wide needs, and do it more promptly, with the use of certain public finance tools. These tools include tax increment finance (TIF), which allows a city, often in partnership with a land developer, to support a desired redevelopment plan. Specifically, tax increment finance creates a mechanism for the funding of public improvements necessary for a development project through the direct use of incremental real property taxes that the development generates over a period of time. Importantly, the use of tax increment finance does not create an encumbrance on existing tax revenues of a public entity. Tax increment finance is a well -established tool that has been used successfully by a great many municipalities and counties throughout the US, including widespread use in Oregon (in Oregon, TIF is sometimes also referred to as "urban renewal"). For example, the Oregon Economic Development Agency has published a guide on "Best Practices for Tax Increment Financing Agencies in Oregon," which outlines how this tool can been used successfully to achieve wider community benefits, including economic diversification and opportunity. - Similarly, ECONorthwest, in their report on Ashland's economic diversification strategy, also recommended that the City "develop public financing tools to invest in public infrastructure that can help unlock sites and achieve world class developments." It is important to stress that the Townmakers' team does not believe any encumbrance on existing public revenues would be appropriate or necessary. Rather, through the use of tax increment finance, the incremental tax revenues from the redevelopment of the site (measured annually off the current level of tax revenue from the site) would generate the necessary funding to finance significant investments in public improvements, including extensive parks, bike and pedestrian paths, primary / commercial streets, infrastructure to support affordable housing and other public amenities, all built for the benefit and direct use of the entire City, and all in support of the recruitment of new businesses and home-grown startups. Accordingly, Townmakers LLC has retained Thad Wilson of MuniCap Inc., a nationally known and respected public finance consulting firm which focuses on the creation and use of tax increment finance 2 https://oeda.biz/wD-content/ul2loads/2019/11/2019-Tax-Increment-Financing-in-Oregoii-Best-Practices- Mai tual-Pub lic-Edition.pdf). N districts. Townmakers would like to introduce Thad to the Ashland City Council, and invite a conversation about the broad outlines of this development approach. In addition, Townmakers has retained Jerry Johnson of Johnson Economics, to analyze the market demand for industrial and commercial lands in Ashland in general, and Croman Mill in particular. His data will inform us about a broader strategy to raise the Croman Mill district to a new level of success. A tax increment finance district, involving the City and other partners, could greatly facilitate such an entrepreneurial opportunity for the entire development site, and potentially assist with incubator businesses and the infrastructure such businesses need. In today's competitive environment, the best employers are looking for the best qualified employees, at a range of pay scales including family -wage jobs. They in turn are looking for the most livable, diverse, affordable, live -work -play neighborhoods and homes, offering the highest possible quality of life. Ashland is certainly poised to offer such a combination, although as noted, it will take careful collaboration. A tax increment finance district could greatly enhance the appeal of such a neighborhood, aiding in the recruitment of highly qualified employees, and the new and existing employers that seek them. Left: Bird's-eye view of "civic core" looking north from Siskiyou Boulevard. Right: The compatible industrial or "makerspace " district, integrated with nearby housing. Illustrations by Laurence Qamar for Townmakers LLC 1. What is "Urban Renewal"? Urban renewal is a financing mechanism used to improve the economic viability of specified areas. Specifically, ORS chapter 457 gives cities and counties the authority to activate an urban renewal agency, with the power to propose and act on plans and projects to address "blight" in identified areas. 1 Examples of "blight" include buildings that are unsafe or unfit for occupancy, inadequate infrastructure, or population loss. 2 The area subject to urban renewal is called the ``plan area." 2. How does My City Determine if Urban Renewal is Necessary? The best way to determine if urban renewal is right for your city is to engage in preliminary feasibility studies. State law does not require cities or counties to conduct preliminary feasibility studies, but they can greatly help a city determine if blight exists in an area, how large a plan area should be, and what projects will successfully address the blight. Preliminary feasibility studies are often drafted by a technical advisory committee, ideally with input from residents, business owners, and other stakeholders. 3. How Does My City Create an Urban Renewal Agency? A city or county can activate an urban renewal agency by declaring, via ordinance, that a blighted area exists in the city or county and there is a need for an urban renewal agency to function in the area. 3 4. Is an Urban Renewal Agency Part of the City or County? No. The new urban renewal agency is a separate entity from the city or county that created it. Thus, when the city or county activates an urban renewal agency, it must also establish a governing structure for the agency and appoint a board. An urban renewal agency board can take one of three forms: (1) the governing body of the municipality (e.g., the city council) acts as the agency board; (2) a separate group —appointed by the municipal governing body —acts as the board; or (3) the city housing authority acts as the board.4The urban renewal agency board may also appoint an advisory committee, although state law does not require one. S. Are There any Limits on the Size of an Urban Renewal Area? Yes. State laws limits the amount of acreage and assessed value that may be under the jurisdiction of an urban renewal agency. For cities with a population greater than 50,000, that limit is 15 percent, and for cities with a population less than 50,000, that limit is 25 percent. The 15 percent and 25 percent for maximum acreage and assessed value includes both the proposed urban renewal area and all other areas in the city already under an urban renewal plan. ' Article 9 of the Oregon Constitution gives the Legislature authority to provide for urban renewal throughout the state. ORS chapter 457 sets out the state laws that govern urban renewal areas and agencies. 2 See ORS 457.010(l) (statutory definition of blight). ORS 457.035. ORS 457.045. ORS 457.420. FAQ: Urban Renewal 2 6. What Must be Included in an Urban Renewal Plan? After being activated by the city or county, an urban renewal agency is tasked with drafting an urban renewal plan. 6 State law identifies the components that must be included in an urban renewal plan. Urban renewal plans must include the following components: a. A description of each urban renewal project to be undertaken. b. An outline of the major project activities planned for the urban renewal area(s). c. A map and legal description of the urban renewal area(s). d. An explanation of how the plan relates to local objectives. e. An indication of proposed land uses, maximum densities, and building requirements for each urban renewal area. f. A description of relocation methods for residents or businesses that must move because of urban renewal agency projects. g. A description of property to be acquired by the urban renewal agency (if any) and how it will be disposed (e.g., sale or lease), along with a schedule for acquisition and disposition. h. If the plan calls for use of tax increment financing, the maximum amount of indebtedness to be issued or incurred. I . A description of which changes to the urban renewal plan are to be considered "substantial amendments." j. If the plan calls for the development of a public building (e.g., police station), an explanation of how the building serves or benefits the urban renewal area. 7. How does Urban Renewal Relate to my City's Comprehensive Plan? State law mandates that an urban renewal plan conform with a city's acknowledged comprehensive plan.' However, if a city council certifies that an area is in need of redevelopment or rehabilitation as a result of a flood, fire, hurricane, earthquake, storm or other catastrophe respecting which the governor has certified the need for disaster assistance under federal law, the city council may approve an urban renewal plan and project for such area without having the urban renewal plan and project conform to the city's comprehensive plan. S. Does the Public have the Right to Participate in Urban Renewal Planning? Yes. State law requires that an urban renewal agency provides for public involvement in all stages of the development of an urban renewal plan. 9 Public involvement can take different forms, including: meetings between agency staff and elected officials; meetings with business owners and chambers of commerce; public hearings and information sessions for residents; and outreach with other taxing jurisdictions (e.g., school districts and special districts). 6 ORS 457.085(2). 7 ORS 457.095(3). ' ORS 457.160. 9 ORS 457.085(1). FAQ: Urban Renewal 3 9. How is Urban Renewal Funded? Urban renewal may be funded in a variety of manners, including, but not necessarily limited to: tax increment financing (TIF), selling property, loans, grants and bonds. Tax increment financing, perhaps the primary way urban renewal is funded, is used to fund projects within urban renewal areas by earmarking property tax revenue from increases in assessed property value within an urban renewal area. Essentially, the tax increment financing process splits tax revenue from properties within the urban renewal area into two components: base revenue and incremental revenue. Base revenue is the level of property tax revenue available before the urban renewal area is established and is unaffected by urban renewal. Incremental revenue is the revenue that exceeds base revenue and is (ideally) generated by development projects in the urban renewal area. Incremental revenues are allocated to the urban renewal agency to finance urban renewal projects. 10. Where Can I Find More Information on Urban Renewal? The Oregon Department of Revenue (DOR) publishes the annual Oregon Property Tax Statistics, which contain property tax information for each urban renewal agency and urban renewal plan. o DOR Property Tax Statistics: http://www.oregon.gov/DOR/programs/gov- research/Pages/research-property.aVx. The Association of Oregon Redevelopment Agencies (AORA), now a part of the Oregon Economic Development Association as an urban renewal committee, advocates for local redevelopment throughout Oregon. AORA published a helpful guide on urban renewal, entitled Best Practices for Urban Renewal Agencies in Orco-on (January 2014). o AORA website: http://www.oregonurbanrenewal.org/. o OEDA website: https://oeda.biz/committees/urban-renewal • The Legal Research Department at the League of Oregon Cities can assist members with questions about urban renewal in their cities. FAQ: Urban Renewal 4 W� K���W� ������� � ��~�`� �������� ��� urban �� n u��m� ����^�~v �� ��w�jy ~.n~������ m�wn N� ����������H ��������~�� ���~� ������ ~� ����� Q ��renewal o m � � � agency, m n � and w�� how mn �� that � °" �� "�* � ^� .�� ���4�����`� � ���������� « ������m m~�,� ~�n u �� " Under Oregon law, every city has anurban � enevva|agency that isdormant und|the dty Ae council passes a non -emergency ordinance to ac- tivate it. The role of an urban renewal agency is to improve areas in the citythat are "blighted" —areas that are detri- mental to the public health, safety or welfare of the commu- nity due to deterioration, obsolescence, unsafe structures, inadequate streets orutilities, orareas that are otherwise underdeveloped, unproductive orlack open space. Toactivate acity\urban renewal agency, the city council must pass enon-emergency ordinance stating that blighted areas exist in the city and that the city needs an urban re- newal agency. The urban renewal agency is a separate legal entity, sothe ordinance must specify the governing body ofthe agency. Often, the city council will designate itself to serve asthe governing body ofthe urban renewal agency although ocouncil could create aseparate board oragency tuserve asthe governing body. Once activated, anurban renewal agency carries out its purpose bycreating anurban renewal plan toimprove the blighted areas inthe city using the financing mechanism described below. The urban renewal plan will identify the urban renewal district, and authorize projects within that dis- trict on which money can be spent. The urban renewal plan will include details regarding the cost, schedule and funding for urban renewal projects. Anannual financial report shall beprovided bythe urban renewal agency tuthe city onor before January 31each year thereafter. The public has opportunities tnbeinvolved indeveloping the urban renewal plan asthe plan must bepresented to the planning commission, the county commissioners and, insome cases, other local governing bodies. Ultimately, the city council will hold ahearing onthe plan, and ifthe council decides toadopt it, the council will dosousing anon -emer- gency ordinance, Udzenrenewal projects are funded through apublic fi- nancing tou|knownasTax|nmementRnandng.VVhenan urban renewal district ixestablished, the county assessor determines the current assessed value wfall property inthe district and freezes that tax base. Whatever local revenue a local jurisdiction received from the frozen base will remain the same until the urban renewal area isterminated. As tax values increase above this frozen base, however, the tax revenues resulting from the increase inpermanent rates above the frozen base are directed toprojects inthe urban renewal district, Assessed values can increase yearly aLthe 396maximum allowed byOregon law orbymore than this if new development occurs within the area. The revenues gen- erated above the frozen tax base are called the "increment! When the urban renewal area expires, the frozen base also expires, and the local taxing jurisdictions resume receiving taxes onthe full assessed value ufthe area. |n2OO9,the Oregon Legislature established aformula for maximum in- debtedness ofanurban renewal plan, added restrictions on plan amendments which increase maximum indebtedness, and required the concurrence ofoverlapping taxing districts for substantial plan amendments. The statutory authority for activating and operating an urban renewal agency can befound inORS chapter 457. & city considering activating its urban renewal agency and adopting anurban renewal plan should work closely with its city attorney. For more information onthis and other urban renewal or public financing issues, consult these League resources ^ City Handbook: Chapter 4'section [l Financing Public Facilities (urban renewal isdiscussed atpage 14_19and a host ofother financing tools are described inthe pages which follow) " The Handbook isunelectronic reference for city of- ficials provi6inginformabonondtyoperatiuns.po|icy setting, and governance. "Tbaccess, click onthe blue "City Handbook" button on the League komepage(vvwm/oxjtiecorg). - A-Z Index: Urban Renewal "Anonline repository ofinformation, including apage devoted to urban renewal with links tusample ordi- nances and plans. "Twaccess, click onthe blue "A-Z|ndex"6u\Lonunthe League homepage(www/oojdesorg)and then on"U" for Urban Renewal. 10 14 LocxLrocos JJ"nr2016 °wworciues.um SUCCESSFUL ECONOMIC DEVELOPMENT lax Increment Financing ana Urban Renewal By Elaine Howard Tax increment financing, which follows the creation of an urban renewal area by a city or county, is an invaluable tool for helping create economic vitality in communi- ties throughout Oregon. This type of financing is authorized under state law, implemented locally, and allows for the con- centrated use of property tax revenues to facilitate economic growth in certain designated areas of a city or county. These areas can have a variety of deficient conditions, including in- frastructure that is in need of upgrading; buildings that could benefit from storefront improvements or more full renovation; or low property values, which indicate the necessity of ad- ditional efforts to facilitate development. The underpinning theory of urban renewal is that if these properties and the surrounding infrastructure are upgraded, they will contribute more substantially to the local economy and to the property taxes which support all of the taxing jurisdictions. I $6 $5 $4 $3 $2 $1 -11.1 VITTI 11101 !!1 1 11111, 1 �1111111 Urban renewal is unique in that it has its own funding source: tax increment financing (TIF). At the time an urban renewal plan is adopted, a county assessor calculates the total tax assessed value of the area and establishes this value as the "frozen base" for the area. Growth above the base is called the "increment." Tax increment revenues are the property tax revenues generated off the increase in the assessed values over the frozen base. These taxes from the growth in the urban re- newal area go to the urban renewal agency for use within the urban renewal area. Taxes off the frozen base continue going to all of the taxing jurisdictions. The amount of funds an urban renewal area may use is deter- mined by setting a maximum indebtedness. This is the total amount of money that can be used on projects, programs and administration of the urban renewal area. It is based on 2013 2018 2023 2028 2033 2038 2043 Frozen Base ESharedTIF EITIFfor URA After URA 22 LOCAL FOCUS I July 2015 www.orcities.org lax increment revenues are the property tax revenues generated off the increase in the assessed values over the balancing the project needs in the area with the timeframe desired for use of the tax increment tool. Typical new urban renewal plans are for 20-25 years. Interest on any borrowing (bonds, lines of credit) is not counted towards the maximum indebtedness. Urban renewal plans adopted after 2009 have the potential for revenue sharing when certain thresholds of tax increment generation are met. This potential is indicated in the chart on the previous page. -.• Urban renewal agencies can do certain projects or activities under an adopted urban renewal plan. These activities gener- ally include: • Construction or improvement of public facilities includ- ing streets and utilities. The Barber Street extension project in Wilsonville bridges the Coffee Creek wetlands and connects approximately 2,500 planned units of new residential development in the Villebois neighborhood of Wilsonville to transit services at South Metro Area Rapid Transit's (SMART) Cen- tral station and the Westside Express Service commuter rail station, located on the east side of the wetlands. By providing alternative routes for vehicle traffic, this urban renewal -funded project will improve fire department access to Villebois, school bus access to Lowrie Primary School, and reduce traffic congestion on Wilsonville Road. Ad- ditionally, this connection improves bike and pedestrian connectivity within the city and will tie into a future phase of the Tonquin Trail. • Development of parks, way -finding signage and other public uses. The Garden of Surging Waves in Astoria, a park that com- memorates Chinese heritage in the community, was funded through a variety of sources, including tax increment financing. It is directly adjacent to the downtown core and within blocks of the recently renovated Liberty Theater, both projects key in bringing economic vitality and livability to Astoria. • Participation with developers for property improvement, or the creation of jobs and housing. The Face Rock Creamery was a project of the Bandon Urban Renewal Agency and a private developer. At present they have 15 new permanent full-time employees and four (continued on page 24) www.orcities.org July 2015 1 LOCAL FOCUS 23 TAX INCREMENT FINANCING & URBAN RENEWAL seasonal employees plus additional work for delivery trans- portation and milk truck drivers as well as the temporary jobs for construction. The business serves as a key tourist attraction at the north portal to Bandon. The La Grande McLean Family Dental property was par- tially funded through an urban renewal grant. The project added jobs in the urban renewal area and services to the community. • Rehabilitation of existing buildings Sandy has an innovative storefront program, bringing in an architect to design the new exterior facade in keeping with a theme established for the downtown core. How Does Tax Increment Financing Affect Overlapping Taxing Districts? Financially and through improvements. Taxing jurisdictions are impacted by tax increment financ- ing both directly through the division of taxes for the urban renewal agency, but also impacted due to the positive impacts of urban renewal projects. Urban renewal agencies gain revenues through the collection of property taxes. Property tax increases come through new development and the statu- tory limit of 3 percent increase in assessed values on existing real property. During the use of tax increment financing, the permanent rate property taxes on the growth in assessed value in the urban renewal area are allocated to the Urban Renewal Agency and not the taxing district. The taxing jurisdictions still are able to collect the property tax revenues from the assessed value of the frozen base, but increases in revenues are allocated to the Urban Renewal Agency for use within the urban renewal area. In many urban renewal areas, that growth from new investment would not have occurred but for the use of urban renewal which has stimulated the growth. Shared TIF as shown in the chart above refers to meeting thresholds as defined in ORS 457 where TIF revenues must be shared with overlapping taxing jurisdictions. The impacts on schools and education serviced districts are more indirect, as they are funded through the State School Fund that is comprised of other sources of revenues including property taxes. Once an urban renewal area is terminated, there generally will be an increase in property tax revenues to all taxing jurisdic- tions. This increase of property tax revenue is a result of the ability to concentrate funding in a specific area, encouraging the area to develop properly. Many urban renewal projects improve infrastructure to allow for new development, both creating new jobs and housing 1 0//' n 9 S ANNUAL CONFERENCE SEPTEMBER 24-26, 2015 s magazine over for a preliminary guide )015 Annual Conference. nformation on speakers, tours, program and lodging. 24 LOCAL FOCUS I July 2015 www,orcities.org for the community. These infrastructure projects ects are often helpful to the local fire districts as they provide water service or improved roads. This infrastructure also encourages busi- ness growth, and encouraging the growth of local businesses supports surrounding neighborhoods as well as provides job opportunities within the community. Other projects help in- crease the livability in a city by developing much needed public facilities. Employment opportunities and livability are key in families making decisions to move to or remain in communities, providing students for the schools. Since schools are funded on a per -pupil basis, the retention and growth of families in a community is a vital component to supporting schools. The improvement of buildings in a community help in the visual ap- pearance but often help in addressing fire and life safety issues, key issues for fire districts. Property Tax PayersTax Bills? Most property tax payers will not see an increase in property taxes as a result of a new urban renewal area. If there is an increase, it is due to bond or local option levies which were adopted prior to October of 2001 and are still collecting rev- enues. There are very few local option levies still in existence that were issued prior to October 2001. These impacts are typically VERY small. However, once an urban renewal plan is adopted in an urban renewal area, tax payers within that area will see a line item on their property tax statements for urban renewal. This can be quite confusing because even if you are not physically located in the area, you will see an indication of the impact of urban renewal on your property tax bill. Your overall tax bill does not increase, but the allocation of revenues received from your payment is changed as a portion of that payment now goes to urban renewal. This is called "division of taxes" and is the administrative way that assessors must show the calculation of the tax increment revenue. The Association of Oregon Redevelopment Agencies (AORA) b has a website, www.orurbanrenewal.org, that Contains additional information and publications on urban renewal, including a Best Practices Manual for AORA members. AORA is present- ly working on a video presentation to tell the stories of success- ful projects. Check back on the website in the fall. 9 Learn more about urban renewal at the 90th LOC Conference, September 24-26 in Bend. Consultant Elaine Howard will be presenting a concurrent session on urban renewal and enterprise zones, followed by a tour of the city of Redmond's downtown revitalization efforts. For more information, check out the conference guide contained in this issue of Local Focus. More municipal experience to help -municipal clients. Since opening our doors in 2007, Patterson Buchanan has expanded to thirty-six attorneys and steadily grown over the Northwest to meet the needs of public entities, including cities. Whether acting as general counsel, city prosecutor, or an attorney defending civil litigation against a city, the opportunity to provide practical but aggressive representation is one that we embrace. In these times of budgetary concern, all of us also understand the need for strong representation at reasonable cost, If we can be of assistance, let us know, If you want more information, just contact us. Whatever your municipal needs, we are determined and experienced attorneys committed to the highest level of client service. SEATTLE OFFICE 2112 THIRD AVENUE, SUITE 500 SEATTLE, WASHINGTON 98121 PHONE (206) 462-6700 - FAX (206) 462-6701 PORTLAND OFFICE 1001 SW FIFTH AVENUE, 11TH FLOOR PORTLAND, OREGON 97204 PHONE (503) 200-5400 - FAX (503) 200-5401 TOLL FREF(800)722-')815 - WWW.PATTFRSONBUCHANAN.COM www.orcities.org July 2015 1 LOCAL FOCUS 25 txisting f use D City Limits' Croman Mill District E-1 landuse office employment (CM -OE) compatible industrial (CM -CI) neighborhood center (CM -NC) D R_1_5 mixed use (CM -MU) i M-1 openspace/conservation (CM -OS) central park} S � x t l W i & ,. r R-1-5 F N e . < S t ox Y E-1 H x k. Txx L---4 S £[[ k t£ s l 2 p _ e f . a 1 Studley Sessions THIS FORM IS A PUBLIC RECORD ALL INFORMATION PROVIDED WILL BE MADE AVAILABLE TO THE PUBLIC 1) Complete this form, including the topic you want to speak on and send to the City Recorder: 171ailto ib@ellssa.l�t.lita £Nii a&�al lm8 d.onus 2) Begin the oral testimony during the meeting by stating your name for the record. 3) Limit your comments to the amount of time given to you by the Mayor, usually 3 or 5 minutes. 4) If you present written materials, please email a copy of the materials with this form to the City Recorder for the record. 5) Speakers are solely responsible for the content of their public statement. Meeting Date Name rA Agenda topic/item number/Topic �' r The Public Meeting Law requires that all city meetings are open to the public. Oregon law does not always require that the public be permitted to speak. Comments and statements by speakers do not represent the opinion of the City Council, City Officers or employees or the City of Ashland. C'. III ,'" III° Z DIIIIIIIII' II''" III'°° '1-5IIC: 'w''' III 'IIC'0 Vul,"^ 400 ;o 2150 200 1150 2014 201"--) 2016 2017 2018 2019 2020 2021 202) STOP Data wWhEe "Blad< ,,ME = NA lillAslan/Pi lilLatInx QUH-riGNS? 1. Update on project planning and progress 2. Introduction to Jerry Johnson, economics specialist (Johnson Economics) 3. Introduction to Thad Wilson, infrastructure finance specialist (MuniCap) 4. Discuss project goals, opportunity for city-wide benefits, and need for multi -party collaboration to achieve them Planning Team: Expertise in climate -friendly development, strategic issues and tools 13 Architecture 2015 and the Built environment Urban Form and Greenhouse w Gas Emissions F�a��e�,s s .a��m��a�o sw�swPonl�.b�oiQ yam. to Mehaffy doctoral dissertation on urban form and climate change, Delft University of Technology, 2015 Ideal urban extension position Suppoirt SpecWty IlAstu°liras Economic Diversification A balanced economy can also be reflected in a city's geography and having different areas with Strategy identities that each exert their own gravity. In addition to downtown, there are three districts Ashland Chamber of that show strong potential to continue developing into distinct, mixed -use areas of the city: Commerce University District, Railroad District, and the Croman Mill District. Each brings its own ,x potential to expand past residential and commercial into areas like research, flex industrial, entertainment or small manufacturing. 1. University District — Southern Oregon University has the potential to transform not only a few properties on its campus, but its role within the city. By developing some strategic locations into dense, mixed -use buildings that cater to students and young L"CfDNorthwesr professionals, the organization can establish an anchor for both residential and commercial development. 2. Railroad District — Already a popular part of the city, with some strategic investments this area could act as a walkable, nearby counterbalance to the downtown and provide the opportunity to define a separate cluster of retail and nightlife activities. 3. Croman Mill District — Perhaps the property with the most potential to redefine its area, the former Croman Mill site can provide the type of residential and commercial development at scale to significantly expand the growth of the city. If the city would like to develop more housing for young families, this site provides an opportune landscape. The fact that the site remains undeveloped 15 years after the adoption of the Croman Mill Master Plan suggests that the master plan and implementing ordinances should be revisited. 3. Croman Mill District - Perhaps the property with the most potential to redefine its area, the former Croman Mill site can provide the type of residential and commercial .......................................................................................................................................................................................................................................................................................................................................... ,development at scale to significantly expand the growth of the city. If the city would like to develop more housing for young families, this site provides an opportune landscape. ................................................................................................................................................................................................................................................................................................................................................................................ The fact that the site remains undeveloped 15 years after the adoption of the Croman Mill Master Plan suggests that the master Elanand im le e nt ordinances should be revisited. i IEstalhl.9sh SirnaV[ F.1atch Ashaiid ) Key ingredients to a thriving micro -batch community are; (1) A strong customer base that has Econornic Diversilfl cation disposable incomes and values authentic goods; (2) A city brand that signifies quality and craft; Strategy and (3) A culinary community that supports restauranteurs and food entrepreneurs. These are AsNand Chamber of all elements that few cities outside of Ashland have in high concentration. To better support ....... .......................................................................................................................................................................................................................................................................................... ... ........................................................................................................... Commerce current (or future) small food and beverage manufacturers, the city can provide the tools for those entrepreneurs to easily scale production. By partnering with an operator of a co-workin or makerspace, a small facility could be developed with the equipment (bottling, a e ing, etc.) that is a common barrier to growth. LCONorthwest • Research the growth process for these types of Small businesses, Rogue Valley enterprises and the common challenges. Community College, SOU, Talent Maker City I E;kir��cr�.��In���'n�wlsh��E��llfo, IR�ItY;:ff�llms��idk�[�,�I�uj�s�lll���f„u�i�I��G�l�it��uuylu�l-��'�u'IIIw✓r�;,�„-°�Ir'��u���,'n-'w���u'��-"s��'ij�ll�����lll�ui�-:�'h.�rw��r��rt>k IGwvuf... OU'1III",RIIdrAIrNOI'V6Irr1'>INAIha(C}IVr7PVIC 1[A Vt N'MEN1 lhif',:, i E'iNII)IING 3::: lItIEMO"IPIE jNr0jfktl tr h, Ri GI N r )A', A ado+ aP d fro lrt.JN7AFt °r t.tF Ki nn+ li �A/O KLNS Remote workers are highly mobile, which is both an apportionny and a challenge, Typically, the first lime someone visits a region isas a tourist and mcroasingdly in modern society, people are choosing where they hive first (as opposed to. going whore this jabs ore). Remote workers yfecally choose their homes based on quality of life and amenities, so It is no surprise that Southern Oregon's populatllon of remote workersis nearly double the national -rage. By creating resources and ongogiing remote workers, the Rogue Valley willl retain their workforce and also hav- e taollkit they can b- uood to ettro,t Wont to th- r-ginm II. IIGUIIRlldl 3. WORKING OIF II II OMIkii "k'!?IN'I'O MARKERS AGIF Id OR OII)FIR SOREbI VVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVV �.Q4. leakson Cdunty Giza., zerr�-'Ir-ae-�araerwi-cico-nswinu.naa i ii: ...... Ci (n) c" ,. v"e � "p, illr,r@@ Zuoiv haw wr�mlPo![ Rctooc rni"nun Oregon, Including the Jackson County Fairgrounds amphiitheater,. SM2. Encourage tactiieal urbanism projects such as pop-up shops in underutilized downtown spaces no encourage foot traffic and community engagement. 25 m Bolster organizations that focus on downtown vitality, such as chambers of commerce, main streets, and downtown associations,. S.' 3., Support Rogue Valley shop -local initiatives and campaigns that hi hlli ht the re iion"s crafR and boutique iindustries, e-mrs, and arts and cuhu�radl eimen4ies (strategy 4.3). In addition to supportin ngi�ncai�u �i ia..s.....res I.enf2=nf w;'Z6cl fasters a sense of a core muni h✓ T' Federal transit Adrc n stralion irons I Odoirted IDevelopmont " 'I 1 April 201v�wv+ h air d s[ .S.D r /l lCF. Accaleratar for America, " C`)ppor,mly Zone In—innioni Prospectus Gu de," October 201B, e 5teoat PI ns" tdctcdl GrbanW's Goid'e to MdP rich and Desrgn, Docember 20l6, 1 ,, Y i 1 1,,r 11 i i nor r i,l City o�f Ashland 2021--2041 IHousing Capacity An What are the key findings of the Housing Capacity Anatysis? development of new single-family attached (tO,% of new housing); duplex, triplex, and The key findings of the Ashland's Housing Capacity Analysis are that: I quadplex housing (10% of now housing); and multifamily units (35% of neve housing) Ashland has sufficient land to accommodate its housing forecast between 202I and 2941 and can accommodate growth (858 dwelling units) over the next 20-years with a surplus of capacity. Some development in the Suburban Residential, Normal Neighborhood, and Multifamily Residential Plan Designations will need to be accommodated in the City's urban growth boundary, outside the City Limits. Ashland is planning for the continued growth of single-family detached units, however, need to occur to meet the City's need s.'rhe factors driving the shift in types of housing needed in Ashland include changes in demographics and decreases in housing affordability. Ibe aging of the baby boomers and the household formation of the rrillennials and Generation Z will drive demand for renter- and owner -occupied housing,* such as single- family detached housing, townhouses, duplexes, tri- and quad-plexes, and apartments. b2!t&2!M Mgj gj�&jj=! h i w I able nciahborhoods with access to services. , IT ; 2 .............................................. ... ........................................................... l .......................................................................................................................................................... Over the 2021 to 2041 period, Ashland will need to plan for dwelling units in the future to meet the City's housing needs. Historically, 66% of MsTaraMps M=using was single-family detachei. While 351 of new housing in Ashland is forecast to be single-family detached, the City will need to provide opportunities for the Ashland has unmet needs fore affordable housi--. Ashland has unmet housing needs for households with extremely -low and very -low-income households, as well as households with low- and middle-income.'rhe forecast shows 273 of Ashland's new households will have incomes of $32,600 (in 2019 dollars) or less.'rhcne households can afford monthly housing costs of $820, which is considerably below market rate rents starting around $1,145 for a two -bedroom unit. About 127 of Ashland's new households will have incomes between $32,600 and $52,000 and can afford $820 to $1,3410 in monthly housing costs. Ashland will need more rn"Adiverse ho ' types to meet these housing needs and 11111111 address deographi"t-oVn,.g ae;�l-%,—e,4-', .sing types include rental and ownership I9, , opportunities DUSH accessory dwelling units essuch as: small single-family detached I cello-ehousi - town the diversification of housing types, lack of affordability will continue to be a problem, possibly growing in the future if incomes continue to grow at a slower rate than housing costs. The memorandum AsM and Housing Strategy (Appendix A of this report) was developed to present recommendations for policy changes to address Ashland's unmet housing needs. Based on this Housing Capacity Analysis report and using the Ashland Housing Strategy for guidance, Ashland will need to develop a Housing Production Strategy within one year of adoption of CROMAN MILL DISTRICT - ASHLAND, OREGON - MIKE WEI NSTOCK,TOWNMAKERS LLC. TOWN Pl ANNERS AND, DESOGNERS: Q_AMAR &L ASSOCIATES, AND s,ruCTkJRA NATURALIS - JANUARY 1, 2022 Current Status 1. Development of proposed site plan, district standards, zoning code, annexation... in progress 2. Traffic Impact Analysis —firm is ready to proceed 3. Economic analysis — report in progress (Johnson Economics); State / DLCD legal requirements as well as City goals 4. Infrastructure finance — proposal in development for public improvements — paths, trails, major streets, parks (MuniCap) Economics Team: • Discussion of State Law issues, City economic goals • Discussion of public -private models to unlock wider benefits for the full district and the city as a whole Jerry Johnson Principal, Johnson Economics Thad Wilson Senior Vice President, MuniCap CROMAN MILL Dis-mtc-T­ AsiiLAND, OREGON - MIKE WEINSTOCK, JOWNMAKERs LLC. T()WN I'l ANN I RS AND DESI NMi : CZAMAR & ASSOCIA I F S. AND S I OCIURA NAT I I RAI IS -)AN UARY P 2022 OVERVIEW OF FINDINGS • Employment growth in Ashland has been negligible since 2007 EOA • Shift in work patterns towards remote work • Ashland is well positioned to capitalize on this shift in work patterns • New master plan for Croman Mill site responsive to this shifting context • Maintains employment capacity • Enhancing economic development offerings • Community designed to facilitate and encourage remote working JOHNSON ECONOMICS CITY OF ASHLAND EMPLOYMENT LEVELS • Employment growth has been modest in the City of Ashland since adoption of the EOA • 0.09% AAGR (0.75% forecast) • Retail and services employment remains dominant, and was the primary source of growth over the last decade • Employment in most industries dropped significantly during the pandemic 1.2,000 10,000 8,000 6,000 4,000 2,000 JOHNSON ECONOMICS 0 2007 2008 2009 2010 2011 2012 2013 2014; 2015 - 2016 20117 2019 2019 2020 WORK AT HOME TRENDS JOHNSON EcoNemics • Ashland has historically had a 20% disproportionate share of remote 18% 18.4% workers 16% • Ashland share of people working 14% from home compared to the 12% 12.5% county, state, and country. 10% 10.4% - The graph to the right shows the % of 8% 9.7% all workers (16 and over) who reported to be working from home in .......... -United States 2021. 4% - ....................... . Oregon • This pattern accelerated during the 2% -Jackson County pandemic, but remains persistent 0% -Ashland EMPLOYMENT CAPACITY • CITY COMPLETED BLI IN 2019 • 125 net acres of land designated for employment uses* • Capacity for over 1,300 jobs on employment lands* • SIGNIFICANT ADDITIONAL CAPACITY IN RESIDENTIAL ZONES • Assumed at 20% of employment in 2007 • Likely shift to closer to 40% in certain employment categories • MORE THAN ADEQUATE EMPLOYMENT CAPACITY TO MEET DLCD REQUIREMENTS * Excludes Croman Mill Site Comp Plan # Parcels Net Acres Airport 10 PIMP Commercial 29 16.7 Croman Mill 22 61.1 Downtown 8 0.4 Employment 88 92.4 HC 3 1.2 HDR 58 11.7 Industrial 6 14.6 LDR 57 18.8 MFR 119 42.2 Normal Neighborhood 29 69.7 NM 14 16.4 SFR 326 205.1 SFRR 48 96.7 SOU 3 1.8 Suburban R 6 7.5 Woodland 9 6.6 Total 835 662.9 Total -Employment* 134 125.3 ` *Excluding Croman Mill JOHNSON ECONOMICS FINDINGS TO -DATE MODEST EMPLOYMENT GROWTH SINCE ADOPTION OF EOA • Well below forecast in the City of Ashland SHIFTING NATURE OF EMPLOYMENT • Significant increase in remote working options • Commensurate decrease in demand for traditional office space • Tight labor market shifts power towards employee • Ashland's lifestyle advantages will increasingly attract more footloose employment EMPLOYMENT CAPACITY IS INCREASINGLY CONTAINED IN RESIDENTIAL DEVELOPMENT • Proposed development is responsive to changes in workforce and living preferences • Desire for third places, live/work/play communities • Complementary to downtown JOHNSON ECONOMICS L6, JNE 5� 2023 PRESENTATION To ASHLAND CITY COUNCIL Order and Goal of the Presentation Introduce MuniCap, Inc. and myself Provide a summary explanation of "Tax Increment Finance" Briefly describe the work that we intend to perform in the coming months — preparing a "plan of public finance" Primary Goal — Help you understand how be utilized by the City to create a partnership Croman Mi, site. MUNICAP, I . PUBLIC FINANCE tax increment finance could for the development of the MUNICAP, INC., A PUBLIC FINANCE CONSULTANCY ➢ Founded in 1997 ➢ Headquartered in Columbia, MD; providing services in over 30 states; ➢ Registered as a Municipal Advisor; ➢ Assisted on over 500 borrowings totaling over $10 billion to fund development projects; ➢ Solely focused on funding public infrastructure through public private partnerships. MUNICAP, INC. PUBLIC FINANCE THEAT) WILSON, EXECUTIVE VICE PRESIDENT ➢ Worked in public finance for 17 years and for MuniCap for over 14 years; ➢ Served public and private clients across the US; ➢ Registered as a Municipal Advisor (Series 50 and Series 54); ➢ Extensive experience helping public entities establish their first "special" district. MUNICAP, I PUBLIC FINANCE x TAx INCREMENT FINANCE t i A public finance tool which allows a municipality to direct future, incremental tax revenues from a esignated area to fund desired public improvements. ➢ Typically utilizes real property taxes, including portions from other Jurisdictions(county,school); ➢ Only captures and redirects the increase (the "increment") in taxes; ➢ Uses a borrowing to provide capital for the cost of the improvements; MUNICAP, I . PUBLIC FINANCE 4 L6, TAx INCREMENT FINANCE U ➢ Used responsively and often across the nation and Oregon; ➢ Often used as a key backbone of a partnership agreement between a real estate developer and a municipality; ➢ Can be set up (and is intended to be set up in this case) to provide a financing solution without creating any financial risk to the City. MUNICAP, I PUBLIC FINANCE GENERALTIFMECHANICS ➢ Existing ("base") taxes continue to flow in the standard manner; ➢ Existence of a TIF district does not impact the total amount of real property tax paid by a property owner; ➢ Annual calculation of incremental tax revenues, which are directed to a special fund. MUNICAP, I . PUBLIC FINANCE CALCULATIONEXAMPLE F TIF J When the TIF district is created: Taxable value - $1,000,000 (serves as the "base value") Annual real property taxes - $15,000 After redevelopment: Taxable value - $5050005000 Annual real property taxes - $7505000 Itic -etite.tital. real [)r0�[)(,rt\ taxes --- S735MOO ($750,000 - $15,000 = $735,000) The previously existing $15,000 of annual real property taxes are distributed as before. The incremental revenue (subject to Oregon sharing formulas) is pledged to support a long-term borrowing that generates funds for public improvements. MUNICAP, I PUBLIC FINANCE WHY A ... COULD BE RIGHT.L ➢ Opportunity to help cure a brownfleld site that has strong development potential (size and location); ➢ Significant public infrastructure needs; ➢ Existing community needs; ➢ High value development uses are possible; ➢ Public awareness /expectation that this site needs public assistance. MUNICAP, I PUBLIC FINANCE n ESTABLISHING J SIC FINANCE Working collaboratively with the City, we intend to craft a plan to efficiently use tax increment finance, and possibly other tools, to help deliver the public improvements as quickly as possible. This . t yet c. -rcto bc 1"novidcd at IT MUNICAP, I . PUBLIC FINANCE KEY CHARACTERISTICS OF THE PLANPUBLIC FINANCE ➢ Plan of public finance will be built around a mutually desired development plan, including desired public improvements that will generate a better long-term outcome for the site; ➢ City will be deeply involved in the preparation of and execution of the plan of public finance; ➢ The resulting plan will generate no financial risk to the City. MUNICAP, I PUBLIC FINANCE 10 DETAILS OF A PLAN OF PUBLIC FINANCE The plan of public finance will generate a realistic solution, considering: ➢ Estimated costs of the public improvements, and the timing of such costs; ➢ Estimates for the type, quantity, timing and taxable values of the expected development uses; ➢ Public policy considerations; ➢ Borrowing structure and borrowing assumptions. To be pre ared collaboratively with the City and presented at a gtY followin Ci Council session. MUNICAP, I C. PUBLIC FINANCE