Urban Renewal Extension TUALATINTIGARD SCHOOLS Urban Renewal Frozen

Urban Renewal Extension TUALATIN-TIGARD SCHOOLS

Urban Renewal � Frozen property taxes within an area � Property owners still pay regular taxes, but dollars paid are re-invested in the area � Increased value eventually returned to tax rolls � Central Urban Renewal District (CURD) �$14 million frozen base (1985) �$194 million total AV (2010)

House Bill 3056 � Overlaying tax districts get to vote when: �An existing district �Planning on an extension greater than 20% � 75% of overlaying value must vote yes �Schools typically represent just over 30% �Veto power � New Urban Renewal not subject to a vote

Reason for 3056 � Impacts on funding for overlaying tax districts � Not planning, policy, design, or specific projects

Oregon School Funding � Schools funded out of the State School Fund Grant �State Income Tax collection �Local Property Tax � Local Property Tax is held as an “offset” to the State Income Tax collection funds

TTSD Funding � TTSD State School Fund Grant �$90 million (a per student formula) ○ $40 million Local Property Tax ○ $50 million State School Fund pot � What if TTSD Local Property Tax collection changed? �$90 million (per student formula) ○ If $20 million Local Property Tax ○ Then $70 million State School Fund pot ○ If $45 million Local Property Tax ○ Then $45 million State School Find pot

State School Fund is Limited � State School Fund = � Total $ / # of students = amount per student � Change in Local Property Tax collection impacts per student funding for the whole state � Metro Area contributes to rural areas. � TTSD would increase Local Property Tax collection if CURD ends � the state keeps the difference

CURD Specifics � Statewide: �School property taxes foregone through 2035 ○ Total $27, 472, 947 ○ Average Annual of $1, 098, 918 � TTSD �With State School fund offset (TTSD 2. 17%) ○ Total $596, 163 ○ Average Annual of $23, 163

Other TTSD $ Considerations � � Local Option outside of SSF Local Option is collectable in CURD � Additional collections for new development is about $12, 500 per year ○ Will increase as AV increases � School Bonds are collectable in CURD ○ Will increase as AV increases ○ Reduces burden on homeowner � What impact does CURD have on values outside of the renewal district for TTSD? � How do these values impact the State School Fund?

Other TTSD $ Considerations � Construction Excise Tax (CET) �$1. 00 per square foot residential �$. 50 per square foot commercial with a cap of $25, 000 per building � CURD Estimates: � 529 to 669 housing units � 1. 3 to 1. 8 million sq. ft. commercial

Construction Excise Tax (CET) � One Comparable – Apartments/Commercial/Mixed Use: �Apartments: 367 units with 413, 834 sq. ft. �Commercial: 22, 900 sq. ft. �Parking Structures: 209, 000 sq. ft. �Accessory Buildings: 106, 000 sq. ft. � Generated CET Estimate = $639, 734

CURD CET Estimates � CURD Estimates: � 529 to 669 housing units � 1. 3 to 1. 8 million sq. ft. commercial � CET estimate for housing ○ $596, 507 to $754, 373 � Commercial estimate ○ $326, 000 to $468, 340 = @ $. 25/sq. ft. =

TTSD Net Estimate � ($ 23, 847)/year ($596, 163) total � $12, 500 local option… increase w time � Favorable impact on Bond collections � CET estimate: �$922, 507 to $1, 222, 713 � Property value increase outside CURD � CURD returns to rolls at $800, 000 plus � Student population growth