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Home My WebLink About2023-06-05 Study Session APD Annual Report to June 5, 2023 Council Use of force 2 Crime rates 3 DISORDERLY CFS DOWNTOWN Disorderly CFS 400 350 300 250 200 150 100 50 0 201420152016201720182019202020212022 4 STOP Data STOP Data WhiteBlackMENAAsian/PILatinx 5 QUESTIONS? Croman Mill Redevelopment Update Ashland, Oregon City Council Presentation June 5, 2023 Agenda 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: Many years experience in planning and building popular, successful, live- work-play neighborhoods that respect the local character and quality Planning Team: Expertise in climate-friendly development, strategic issues and tools Mehaffy doctoral dissertation on urban form and climate change, Delft University of Technology, 2015 Other successful communities by the planning team Live, work, shop, create, learn, play…in a five-minute walk from home OrencoStation TODSeabrook WAPleasant Hill TOD Affordable Housing MarketsParks Development Team: Many years of history in and emotional connection to Ashland as well as the Northwest region Mike WeinstockCarlene Chin Ally Weinstock Manager, Team Coordinator, Administrator, TownmakersLLCTownmakersLLC TownmakersLLC Public Outreach • Project website • Stakeholder meetings • Community open house • Media coverage COMMENTS 83 comments in total • Safety • Traffic impacts • Construction access • More industrial Ideal urban extension position Ashland Economic Diversification Strategy (ECONorthwest) Ashland Economic Diversification Strategy (ECONorthwest) Ashland Economic Diversification Strategy (ECONorthwest) Ashland Economic Diversification Strategy (ECONorthwest) Family-wage employment… not just in isolated districts, but increasingly in more competitive live-work-play neighborhoods (Sometimes in homes too! Work from home, home-based businesses, live-works et al.) The post-COVID employment world has changed! Ashland needs more housing, and more diverse housing… more affordable, more “missing middle”, et al. This is now a jobs and economic development issue…. 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 JohnsonThad Wilson Principal, Johnson EconomicsSenior Vice President, MuniCap Thank You! CITY OF ASHLAND UPDATE AND ADDENDUM ECONOMIC OPPORTUNITIES ANALYSIS June 5, 2023 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 CITY OF ASHLAND EMPLOYMENT LEVELS Employment growth has been • 12,000 modest in the City of Ashland since adoption of the EOA 10,000 0.09% AAGR (0.75% forecast) • 8,000 Retail and services employment • remains dominant, and was the 6,000 primary source of growth over the last decade Retail and Services 4,000 Employment in most industries • Industrial dropped significantly during the 2,000 Government pandemic 0 20072008200920102011201220132014201520162017201820192020 WORK AT HOME TRENDS Ashland has historically had a • 20% disproportionate share of remote 18.4% 18% workers 16% Ashland share of people working • 14% from home compared to the 12.5% 12% county, state, and country. 10.4% 10% 9.7% The graph to the right shows the % of • 8% all workers (16 and over) who reported to be working from home in 6% United States 2021. 4% Oregon This pattern accelerated during the • Jackson County 2% Ashland pandemic, but remains persistent 201620172018201920202021 0% EMPLOYMENT CAPACITY CITY COMPLETED BLI IN 2019 • Comp Plan# ParcelsNet Acres Airport10PMP 125 net acres of land designated for employment • Commercial2916.7 uses* Croman Mill2261.1 Capacity for over 1,300 jobs on employment lands* • Downtown80.4 SIGNIFICANT ADDITIONAL CAPACITY IN • Employment8892.4 RESIDENTIAL ZONES HC31.2 HDR5811.7 Assumed at 20% of employment in 2007 • Industrial614.6 Likely shift to closer to 40% in certain employment • LDR5718.8 categories MFR11942.2 MORE THAN ADEQUATE EMPLOYMENT • Normal Neighborhood2969.7 CAPACITY TO MEET DLCD REQUIREMENTS NM1416.4 SFR326205.1 SFRR4896.7 SOU31.8 Suburban R67.5 Woodland96.6 Total835662.9 * Excludes Croman Mill Site Total-Employment*134125.3 * Excluding Croman Mill 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 • J5, 2023 PACC UNERESENTATIONTOSHLANDITYOUNCIL OrderandGoalofthePresentation IntroduceMuniCap,Inc.andmyself Provideasummaryexplanationof“TaxIncrementFinance” Brieflydescribetheworkthatweintendtoperforminthecoming months–preparinga“planofpublicfinance” PrimaryGoal–Helpyouunderstandhowtaxincrementfinancecould beutilizedbytheCitytocreateapartnershipforthedevelopmentofthe CromanMillsite. 1 MC, I., PFC UNIAPNCAUBLICINANCEONSULTANCY Foundedin1997 HeadquarteredinColumbia,MD;providingservices inover30states; RegisteredasaMunicipalAdvisor; Assistedonover500borrowingstotalingover$10 billiontofunddevelopmentprojects; Solelyfocusedonfundingpublicinfrastructure throughpublicprivatepartnerships. 2 TW, EVP HADILSONXECUTIVEICERESIDENT Workedinpublicfinancefor17yearsandfor MuniCapforover14years; ServedpublicandprivateclientsacrosstheUS; RegisteredasaMunicipalAdvisor(Series50and Series54); Extensiveexperience helpingpublicentities establishtheirfirst“special”district. 3 TIF(“TIF”) AXNCREMENTINANCE Apublicfinancetoolwhichallows amunicipalityto direct future,incrementaltaxrevenuesfromadesignated areatofunddesiredpublicimprovements. Typicallyutilizesrealpropertytaxes,includingportions fromotherjurisdictions(county,school); Onlycapturesandredirectstheincrease(the “increment”)intaxes; Usesaborrowingtoprovidecapitalforthecostofthe improvements; 4 TIF() AXNCREMENTINANCECONTINUED Usedresponsivelyandoftenacrossthenationand Oregon; Oftenusedasakeybackboneofapartnership agreementbetweenarealestatedeveloperanda municipality; Canbesetup(andisintendedtobesetupinthis case)toprovidea financingsolutionwithout creatinganyfinancialrisktotheCity. 5 GTIF M ENERALECHANICS Existing(“base”)taxescontinuetoflowinthe standardmanner; ExistenceofaTIFdistrictdoesnotimpactthetotal amountofrealpropertytaxpaidbyaproperty owner; Annualcalculationofincrementaltaxrevenues, whicharedirectedtoaspecialfund. 6 ECUTIF R XAMPLEALCULATIONANDSEOFEVENUE WhentheTIFdistrictiscreated: Taxablevalue-$1,000,000(servesasthe“basevalue”) Annualrealpropertytaxes-$15,000 Afterredevelopment: Taxablevalue-$50,000,000 Annualrealpropertytaxes-$750,000 Incrementalrealpropertytaxes-$735,000($750,000-$15,000=$735,000) Thepreviouslyexisting$15,000ofannualrealpropertytaxesaredistributedas before. Theincrementalrevenue(subjecttoOregonsharingformulas)ispledgedto supportalong-termborrowin gthatgeneratesfundsforpublic improvements. 7 WTIF CRCM HYAOULDBEIGHTFORROMANILL Opportunitytohelpcureabrownfieldsitethathas strongdevelopmentpotential(sizeandlocation); Significantpublicinfrastructureneeds; Existingcommunityneeds; Highvaluedevelopmentusesarepossible; Publicawareness/expectationthatthissite needspublicassistance. 8 EPPF STABLISHINGALANOFUBLICINANCE WorkingcollaborativelywiththeCity,weintendto craftaplantoefficientlyusetaxincrementfinance,and possiblyothertools,tohelpdeliverthepublic improvementsasquicklyaspossible. Thisplanisnotyetprepared–tobeprovidedata followingCouncilsession. 9 KCPPF EYHARACTERISTICSOFTHELANOFUBLICINANCE Planofpublicfinancewillbebuiltarounda mutuallydesireddevelopmentplan,including desiredpublicimprovementsthatwillgeneratea betterlong-termoutcomeforthesite; Citywillbedeeplyinvolvedinthepreparationof andexecutionoftheplanofpublicfinance; Theresultingplanwillgeneratenofinancial risktotheCity. 10 DPPF ETAILSOFALANOFUBLICINANCE Theplanofpublicfinancewillgeneratea realisticsolution, considering: Estimatedcostsofthepublicimprovements,andthetiming ofsuchcosts; Estimatesforthetype,quantity,timingandtaxablevaluesof theexpecteddevelopmentuses; Publicpolicyconsiderations; Borrowingstructureandborrowingassumptions. TobepreparedcollaborativelywiththeCityandpresentedata followingCityCouncilsession. 11