Agenda Item - 2024-02-20 - Number 04.1 - Presentation - Urban Renewal Plans and Foothills Area Update 4.1
Lake Oswego
Redevelopment Agency
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LORA Board — Urban Renewal Area Review
February 20 , 2024
LAKE OSWEGO REDEVELOPMENT AGENCY (LORA)
LORA Goals: -oulh - - __
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• Support Council goals i ,-- , 13 r, - -
+�r�»r.s Rd
__ — --Pine Park
Hld Parka Trion Creek .._..1 r.. `^.
r„_l J I -r-1 PaAt Cone n State41. / .._f
• Revitalize areas in the city , �m TwillsPrline NaturalArea '4,14l M1-~
Y r SE perk Ave
P 1!ootl m Oak Creek.EEemenlary Touchstone :I m[ FT g 1 i
School lr� .a �_ i
•-- _r'Park Scnml �( ial.' Lake Oswego - �,yi Neddmer,t-- ---, b' 'StaffOrd Adult 2,^ l.G }M°Irosq eS9aatkon yot„c kk _ High Scholl YI-^�c.�.�-1 ,f-�arN xmre Park C°mmuniry m ,(rJ,,
• Stronger economic base el�er _
r' - — .fi Forest Hllls
:estlake Park E^ �p pm°rY A {� f- .1 Elementary Sch voE vp- - _ n
o Lake Oswego�b '1/4�' ` CO Library 'r.
Mid[Ne FClue Rd -'.J -
• Generate return on public West Hills School ,
Montessori School
investments made in URAS ✓ I ` mow]°Lake Main Fire SE r%°urtney Ave
Kruse C� SpriPgahkv°k v Country Club
rj 4 Chandler Rd Our r'0.5[alin,E le+c^
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- ,,' i Meaavws iNa e+M@ of the Lae �.
Rn r c s� v s°n°d U .A ‘ti..rrd ti
'Future I,'C'd-' - __ 1 %Garman ,9 �• Iron g�v J:a'�'r'- C
_-8cilhk�135'. 2 on Mountain Bel fi'yan y-r .--.. r �o,}.�y `era
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LORA manages two URAs: — Pa Park Na tre Roehrr k SE Oak Grove.
i�,N �=ij P�,r 9a 1 -'Preserve
• East End (1986) <<LTfl - Ima�• _ love El r. T LO J
_, Park-West -w..,-avr.trict a
Qp `__�?.l`L-^y .t e Ave Cc Park Roger Park
�� � - p e'Ellen R Bemis is m
• Lake Grove Village Center (2012) m Nature Preoeme
ri a�" South Shore
SrI ;� Li., il4P,Lake ab Natural Area ParkAcaderrry an \��.. d
Ihti 'at, d' "-Swim Park D SvutliSh°re p1•° c,OnoV
Fe 5y �'-`�t_�,.-^,y- Fire Station Hallman Glelmlarie �G
(Repealed Foothills 2 013) r-ii ,� st -. a hero Freeport:.Park .N° Greemra,_
• i___ nj y.La Y � �'�. a'�S a 5 r , Fre.Nana Park Hdlinan O ` �kc°'' SE
- - — - Lanwnl 5pin9= g2Y� Grea,lree. Aspen Elementary
Heran`-
"'-�- -i�.li'. Naturd Area Weft L- Gre entree park Rd Pad i'i Creek High-4
Academy
�a Lake r l NalrrCl anrea J! e- .'f
The Cy-Ickren's !` Ci[y Owego Pudic ,`.a i (2 M:t 'Pa
Golf Course ------ Glenm°nie k
May 2023 Board Direction: HoarAkadeay Maintenance Par
if Center tp� Jean Road m $ Laker[dge n I `-l"'.._:�.[ P�
•1 IS
Jean Rtl i 1:,;iricti9tit ego Station O�ei1p°� High Scholl ,�°�j.�—'9- Bergis'� fill 5 Skyla4gbr 1-� O
• Bring back plan to close East End - - 1 Lakal[Ige r Weslridge Dr Ri
Scholl, ti r-- a
:'�1 wed, EEemenlary wa,! Lakeridge r` �, y t
l-- Scholl ee °Scheid High School Heeelii3 Field Ir-1-� r 5i�-�r
I7 ` f7I I� Rn .','aslrldge 1 Dosch. I L{ _�j \1,1h
• Pursue increasingMI for Lake Grove Park Cooks
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ti:t r�o s.si;ly Bye Firlane
c) ,_I Seh ov€�"I Pan[ PmnertY Brock r h
• .v� Property r• l
I. -, r _ --die:ens i •9c n`
p le t hod 1, an ' ' MeatlessOs
.. ^•-_SEE n e m- Steve,. s ['fti,„
Update Foothills Plans _ h�e< e
,• ,:... r Fylkin 11 V�lo°d_ .. r-- Meatlrnvs [Z'o
':par _� LzI Fla[ Park l Pica,Creek
Sunny pomn Natural Area
I Child Rd SIe O p Creek Neturd H �__ _ Hillcres[C1
2024 City Council Initiative: - r pe pen ?AreaPecatural I
GanalAcr�, SNSpace Natural
Rivagrrn• Pecan
paM _F Icef r, credo Area Q', i City of Lake Oswego
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Update the Lake Grove Plan and begin work
on a plan to use urban renewal to support the
redevelopment of the Foothills area.
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East End .
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Urban Renewal Area
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• 1987. $55m Frozen Tax Base Assessed Property Value ..
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• 2023. $441m Assessed Property Value _ ...
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• $94m -Maximum Indebtedness , ., ". r. -,- 1'
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• 66 projects completed • e.... . 14, /WO
• $2.2m — Est. Revenue returned to City after URA closes .
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• 2028 — Close the URA by Resolution ‘4.
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Lake Grove Village Center . -h ' #
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Urban Renewal Ar( ' ' - 4 v
Board Direction: -w-• 1 .--. d • _ J :s ,� 4,,,.. ,-
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Increase the maximum indebtedness of the plan in order to ,. . v *4 ” is x
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fund projects in the area. ,„ ir • ''T.0 -,s,c1,,,, lc
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Lake Grove Village Center Urban Renewal Plan (2012) d
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• $36m -Maximum Indebtedness ;',::� !'r, 0 ; '
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• Two projects in URA: -" : - ' .la) Boones Ferry Rd Improvement Phase 1 a. _ ' ... : 1- :; r, fi .. .a
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($39M, $30m TIF) 4 r, u ' ' V `°.••, `
1b Boones FerryRd Improvement Phase 2 ($32m) g
2) Public Parking ($4M) - . , - : - * I
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1.
2024 City Council Goal Setting t • - -
Interest in collaborating with the Lake Oswego School District and �. :f: ". � hrs ., , .
other stakeholders to developan all-ages and all-activities community " 14: �.�: "
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center on the west side of town that would include event and meeting ; = .,..: ,- a i-, :i ` 'r`" ,
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IV spaces, public services, and may include library services. ;Y - , - -; ,f: . 4 ��!! :,
HOW IS A SUBTANTIAL AMENDMENT
WITH CONCURRENCE ADOPTED ?
• • Public Input
Public Projects, Boundary, Finances
Agency • Agency Reviews and decides whether to
send out for formal public review
• Presentation to County
• Letter to taxing districts — 45-day review
Taxing • Concurrence from taxing districts
For public building 3 of 4 most impacted
Districts taxing districts
For MI increase 75% of taxing districts
PC • Planning Commission Review
Conformance with Comprehensive Plan
CC { • City Council Hearing and Vote
• Notice to all Citizens
Elaine Howard Consulting LLC
LAKE GROVE SUBSTANTIAL AMENDMENT
APPROVAL PROCESS 7 MONTHS
Taxing Districts 45 day
Public Input
M City Council notice
Concurrence by other Taxing Districts
Two months Prepare documents
LORA City Council hearing
Jun 3 Aug 1
Planning Commission City Council vote
Jun 10 Sep 2
2024
1 2 3 4 5 6 7 2024
Months
Elaine Howard Consulting LLC
How Urban Renewal Works
■ Tax Revenue to Urban Renewal Area Termination of URA
Tax Revenue to Taxing Districts
I
Tax Revenue from Frozen Base
Tax Revenue without URA Investment
0'
Tax Revenue with URA Investment
re
Additional Revenue
ra
Revenue Foregone by Taxing Districts r to Taxing Districts
after Termination of
URA
Time
Urban Renewal Finance
• Tax Increment Financing can only be used to
repay indebtedness for specific projects
• Can only fund capital projects, not operations
and maintenance
• Limited by "Maximum Indebtedness," the
cumulative amount of debt incurred
• Long-term, URAs may hit financial thresholds
that require "revenue sharing"
Forecast TIF Revenue and Debt Service
$1D
$8
TIF Revenue
to URA Shared Revenue
6 to Taxing Districts
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0
.- $4
$2 1111111111111 II III
Existing Debt Service New Debt Service Admin Costs
LGVC - Project Funding
Nominal Dollars 2024 Dollars
New Principal Indebtedness $33,700,000 $30,800,000
Existing Fund Balance $8,500,000 $8,500,000
Surplus TIF $9,300,000 $8,200,000
Total Funding for Projects $51,400,000 $47,500,000
Maximum Indebtedness ( MI )
Total Future Spending for Projects $51,400,000
Less: Existing Unused MI Capacity $3,100,000
Less: Program Income $2,100,000
MI Increase Needed $46,200,000
Plus: Existing M! $36,000,000
Total Maximum Indebtedness After Increase $82,200,000
Impact to Taxing Districts
Taxing District Impact
General Government
City of Lake Oswego - Inside School District $50,700,000
Clackamas County - City $24,500,000
County Extension & 4H $500,000
Clackamas County Library $4,100,000
County Soil Conservation $500,000
Lake Grove Park $400,000
Port of Portland $700,000
Metro $1,000,000
Vector Control $100,000
Subtotal $82,500,000
Education
Portland Community College $2,900,000
Clackamas ESD $3,800,000
Lake Oswego School District $45,600,000
Subtotal $52,300,000
Total $134,800,000
Conclusions
• Impending "revenue sharing" will limit future
growth in annual TIF revenues
• New debt that could be supported by
remaining cashflow estimated to be $33 . 7M
• Combined with existing fund balance and
"surplus" TIF in future years, ability to fund
$51 .4M in future projects
• Would require increasing maximum
indebtedness by $46 . 2M ( $82 . 2M total )
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Foothills Urban Renewal Plan ., :,', .c ►_ae. . 's ,
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Board Direction : ; .. f r�* `
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Update the revised Foothills Framework Plan and prepare a �5 , i . i
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new urban renewal plan for the area. ,. rya r/ *.
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Two step process: •
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1 Foothills Framework Plan (2012) f-- ; l ; .��} t �► " : •_
• Lake Oswego's Next Great Neighborhood A - ,t
• WWTP relocation project "'3,- . ). v' ' Lit�
• 4-year process f '_;. , . #` _ i . ,I &
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• Grant funding: Metro or ODOT r - :,
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2) Adopt new Foothills Urban Renewal Plan 1 itt } 4. IP4,+ ,�'Wyk,, 1 Foothills Urban Renewal
- E. r Plan Area Boundary 11
• Up to 10-12 months, after adoption of FH -+ , r • ,. i (Map GreaewC Oct 2.5,207..2)
j J4m Ropey Nee .uMay
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Plan �', . .:- II
,t ECG lii thwest
HOW IS A PLAN ADOPTED ?
Public Input
Public - Goals and Objectives, Boundary, Projects,
Finances
Age
�1 • Agency Reviews and decides whether to send
out for formal public review
Taxing • Presentation to County
Districts • Letter to taxing districts — 45-day review
P • Planning Commission Review
Conformance with Comprehensive Plan
CC { • City Council Hearing and Vote
• Notice to all Citizens
Elaine Howard Consulting LLC
FOOTHILLS URBAN RENEWAL PLAN
APPROVAL PROCESS 10 MONTHS + TIME
FOR FOOTHILLS PLANNING PROCESS
Taxing Districts 45 day
Public Input
I City Council notice
Prepare documents
3-4 months
City Council hearing
LORA
Planning Commission City Council vote
1 2 3 4 5 6 7 8 9 10
Months
EIai .a Howard Consulting LLC
Forecast TIF revenue
$16
7
$14
° $12
— $10
Cil
a $8
iaJ
$ To URA from f.
1
0 $4 Increment
0
0 $2
To Taxing Districts from Frozen Base
$- 1
ri/°5 e),4' e);1) e),<5 e);\ e))°) t'cl t'?) 1<:) t/<\ t?) <,' ' <')t)) 4) <' \ <OC) (Cli (0e))
FYE
Potential Capacity
Net T I F $113,600,000
Maximum Indebtedness $97,900,000
Capacity (2024 $) $51,600,000
Years 1-5 $6,000,000
Years 6-10 $7,600,000
Years 11-15 $9,700,000
Years 16-20 $8,900,000
Years 21-25 $7,800,000
Years 26-30 $11,500,000
Impact to Taxing Districts
Taxing District Impact
General Government
City of Lake Oswego - Inside School District $42,000,000
Clackamas County City $20,300,000
Clackamas County Extension & 4H $400,000
Clackamas County Library $3,400,000
Clackamas County Soil Conservation $400,000
Port of Portland $600,000
Metro $800,000
Vector Control $100,000
Subtotal $68,000,000
Education
Clackamas Community College $4,700,000
Clackamas ESD $3,100,000
Lake Oswego School District $37,800,000
Subtotal $45,600,000
Total $113,600,OOO
Conclusions
• Foothills area has significant financial capacity
from urban renewal . At least $51 . 6M capacity
in today's dollars
• Final boundary and value of future
development will determine actual financial
capacity
• only permanent rate taxes are impacted, and
there is no direct impact to school funding
Direction & Next Steps
• East End Redevelopment Plan:
Close the district as anticipated in 2028 or sooner.
• Lake Grove Village Center Urban Renewal Plan:
Move forward with increasing the maximum indebtedness of the plan in order to fund
projects in the area.
Bring back additional information for the Board's consideration at a future study session.
• Foothills District Framework Plan and Foothills Urban Renewal Plan :
Initiate updating and pursuing grants for the Foothills Refinement Plan and develop a
Foothills Urban Renewal Plan.