Q&A

Frequently Asked Questions (FAQ)

A STUDY TO CONSIDER ALENTS TOWN CENTER URBANRENEWAL PLAN AMENDMENT

PLAN AMENDMENT PROCESS

Why is the Portland Development Commission (PDC) and City Council consider-ing an increase in maximum indebtedness and a potential boundary expansion forthe Lents Town Center Urban Renewal Area?

During the recent joint City of Portland/PDC budget process, a number of po-

tential changes were identified that could impact various urban renewal areas

(URAs). As a result of this process, it was estimated that Lents URA will not have

the financial capacity beyond year 2011 to complete existing projects in the URA

plan. Therefore, PDC has initiated a review of the maximum indebtedness, which

allows PDC to issue bonds to pay for improvements like roads and parks, devel-

opment of affordable housing, and assist new business development, as well as

its boundary. The Lents maximum indebtedness (“credit card”) is currently set at

$75 million with $37million remaining until 2015 to carry out community develop-

ment projects. If additional bonds can be issued through an increase in maximum in-

debtedness, it could help PDC to achieve the original URA goals and objectives that

were created in 1998 and spur revitalization along major commercial corridors. Additionally, a

request to include more commercial areas along SE Foster Road and other minor boundary

changes will be studied.

What is an Urban Renewal Plan Amendment?

A plan amendment process helps update and revise URA plans to reflect changes in the

subject area and market over time. According to state law (Oregon Revised Statutes [ORS]

457.220) the PDC and the city must use this process to evaluate the existing boundary

and maximum indebtedness to determine the feasibility of achieving the original goals of

the district and to examine the potential for additional projects identified by the affected

community.

Why have a study and how is it decided to go ahead or not?

The PDC is conducting a study to determine the feasibility of an increase in maximum in-

debtedness and a boundary adjustment. The study includes a financial analysis to deter-

mine the availability of funds, the amount needed to achieve existing and any new

projects, and whether an expansion of the boundary will help achieve additional community develop-

ment goals. A boundary expansion is not a necessary component to increase the maximum indebted-

ness.

A decision to move forward with either option will not be made without public participation.

The Lents Urban Renewal Advisory Committee (URAC) meets bi-monthly, in open, public meetings

and will have an opportunity to draft criteria, propose and prioritize projects, evaluate all proposals,

and make recommendations to PDC staff and the PDC Board. Based on the technical and legal analy-

sis, and public comments collected during the process, the PDC Board will consider this information

before a decision is made to go forward. If the Board decides to authorize a plan amendment, an ap-

plication, called an “Urban Renewal Plan & Report,” will be filed with the City of Portland Bureau of

Planning for a hearing before the planning commission. The City Council will hold another hearing and

will make the ultimate decision about this and any plan amendment request.

7Lents Town Center URA November 2007

Storefronts on SE Foster Road

Q&A8

Lents Town Center URA November 2007

Why is the Lents Town Center not yet completed?

Real estate development, infrastructure projects, and neighborhood change takes many years, and

most URAs in the city have not rapidly met all of their original goals. There are many projects around

the URA that have been completed since 1998. However, real estate development is all about timing

and market conditions. The Lents Town Center URA, like many areas in Portland, has reached a point

where projects are more marketable and viable despite the challenges PDC has faced, such as a rise in

construction and loan costs, and assembling contiguous properties. If additional resources become

available, PDC can capitalize on these favorable market conditions and properties that have been ac-

quired since 1998 to achieve the original goals of the URA.

How do citizens give feedback?

PDC has a variety of ways for you to get involved and provide comments during the process. You can

attend URAC meetings and special events like Founders Day or an open house, send us an e-mail, sign

up to receive e-mail updates, volunteer to host a “coffee talk,” or attend a neighborhood association

or business area association meeting. Anyone can attend a PDC Board, Planning Commission or City

Council hearing to give testimony. Also, periodically check for updates and new materials on the proj-

ect website: www.pdc.us/ura/future-of-urban-renewal/default.asp.

What areas will be considered for expansion and how much can be added?

Three possible areas will be considered for expansion. One is the commercial corridor of SE Foster

Road between SE 50th and 79th avenues, which is a key gateway to the Lents community, potentially

meets the definition (ORS 457) of “blight,” and includes key business redevelopment sites. The other

two areas include the northern and eastern boundary of the Lents URA along Powell Boulevard and

122nd Avenue, which currently only includes one side of the street. There may be parts of these cor-

ridors where the boundary should expand to include opportunity sites to improve housing options

and business redevelopment on both sides of the street. A plan amendment cannot add more than 20

percent (541 acres) than the original URA size (2,472 acres).

F INANCIAL & STRATEGIC PLANNING

Why do we need more funds available for Lents Town Center programs?

It is estimated that Lents Town Center URA will run out of revitalization funds in four years if current proj-

ects/programs proceed as successfully planned. The current maximum indebtedness is not sufficient to

fund some significant projects identified in the URA plan (1998) including the Freeway Land, the largest

economic development opportunity site on the east side of Portland, as well as several key Lents Town

Center redevelopment, business development, and infrastructure projects.

What projects will be funded in the next two years?

2006-2007 PROJECTS:

� $5 million for the new MAX Green Line (expected to be open September 2009)

� $1.8 million in financial assistance to Assurety NW for construction of new

headquarters, including mixed-use spaces

� Housing opportunities

� Business assistance

LENTSTOW

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URBANRENEWAL

AREASTUDY

Q&A

2007-2008 PROJECTS: LENTS TOWN

CENTER REDEVELOPMENT

� Redevelopment of SE 92nd Ave & Harold Street

� Improvements to local parks

� Schools/Family/Housing: Foster School reuse

� Affordable rental housing and new homeownership

development

� Small business loans and business assistance

What projects will be considered for funding with an increase in theURA’s maximum indebtedness ?

� Freeway Land: While this is a key project, the privately owned

Freeway Land has no budget allocation beyond next fiscal

year. This 100-acre property, located next to I-205 and light

rail, has great potential for locating new jobs and generating other jobs in related

businesses. This is an industrially zoned economic development opportunity that

can be aggressively pursued once environmental clean up occurs and businesses

can be recruited.

� Storefront facelifts, small business assistance, improvements to streets, side-

walks, stormwater management, floodplain restoration, and parks and open

space.

� Continuing redevelopment of the Lents Town Center, including the New Cop-

per Penny, the new MAX Green Line Station Area, and other key opportunity

sites.

� Continuing work to rehabilitate and preserve existing affordable housing op-

tions and promote new housing opportunities in Lents.

Does this potential amendment change the focus of the original Lents Town Center URAto other parts of the neighborhood?

No. The original URA goals and objectives to revitalize the town center and the rest of

the URA will not substantially change. Significant time and resources have been and

will be spent on opportunity sites within the town center to realize the vision of the

original URA plan. The plan amendment study will determine the amount of additional

resources to be allocated to achieve the goal of a thriving town center, and if decided,

will allocate resources to improve other areas added to the boundary, such as the com-

mercial corridor along Foster Road.

Why didn’t the PDC start out with a larger maximum indebtedness?

The original maximum indebtedness was set at $75 million in 1998. At the time, property values were

projected to be lower than the actual increases in assessed valuation that have occurred over the last

ten years. These higher property tax revenues, at a rate higher than originally expected, will allow the

city to extend the credit line for the URA district and still be used to pay off bonds through tax incre-

ment financing (TIF) for the URA. Extending the credit line will allow for completion of the original proj-

ects in the URA plan.

Does the increase in the maximum indebtedness require an extension of the life of the URA?

The current expiration date for the LTC URA is 2015. As part of the plan amendment study, PDC will

develop a list of potential projects with community input and identify current and forecasted budgets

and estimated timelines of these projects. The project timelines will then be compared with the remain-

ing fiscal years of the URA. A recommendation about the life of the URA is expected as a result of this

financial analysis.

9Lents Town Center URA November 2007

SE 92nd and Harold site

Q&A10

Lents Town Center URA November 2007

Can TIF generated in the Lents Town Center URA be spent on operations and maintenanceor other areas in the city?

No. Urban renewal funds can only be spent on “bricks and mortar” type of projects and not on oper-

ations and maintenance for a public agency or private business. All funds in the LTC URA can only be

spent within the LTC URA boundary. For example, LTC URA funds were spent on the portion of the

MAX Green Line through the district but could not be spent in the Central Eastside URA on a street-

car project.

What impact did the Shiloh decision have on the available amount of TIF for Lents?

Oregon’s current property tax system is the result of Measure 5 (1990-91 limits on taxes paid

by individual properties) and Measure 50 (1997-98 changes to assessed value). The effect on urban re-

newal dollars was explained by the Oregon Supreme Court in the Shilo decision. In Shilo, the court de-

cided that taxes for urban renewal must be subject to the Measure 5 limit on general government

taxes. More information on Oregon’s tax structure and the Shilo case are available on the Oregon

Department of Revenue website: www.oregon.gov/DOR/PTD/property.shtml.

What happened to all the plans that were produced when the URA was formed?

PDC uses those plans as guiding documents to make policy and budget decisions. The original URA

plan was adopted by the City Council in 1998 and any PDC project is legally required to comply with

the URA plan. After the URA plan was completed, a series of strategies for economic development,

housing, and transportation were adopted to implement those applicable goals and objectives in the

plan. A copy of each plan is available on the LTC URA website.

If PDC does not get more money what happens to all the current projects under construction?

All current funded projects under construction will continue and will be completed. However, there are

projects identified in the URA plan that are not funded and likely will not be undertaken if another rev-

enue source is not identified. PDC is committed to getting currently funded projects done for the Lents

community.

AFFORDABLE HOUSING

Does an increase in the maximum indebtedness still require a 30 percent of the overall URA budget to be“set aside” for affordable housing?

Yes. The City Council and PDC Board adopted a policy in April 2007 to spend at least 30 percent of

urban renewal resources to meet housing needs that will continue with an extension of the URA and/or

an increase in the maximum indebtedness. This policy will allow the PDC to continue providing the

same assistance for a variety of homeownership and rental programs, including homebuyer assistance,

home repair, and high quality rental housing rehabilitation and construction.

What kinds of affordable housing has PDC done and what does it expect to do with new funds if theplan amendment is adopted?

Affordable housing, along with job creation and redevelopment, is one part of a three pronged solu-

tion to revitalizing the Lents community. Since 1998, 524 homeowners have received housing assis-

tance in Lents. These programs target first time homebuyers and existing homeowners that need

repairs through low interest loans. PDC also assisted with the development of 24 rental units (Reed-

way Place) and seven “scattered site” rental homes have been created in Lents. If the plan amendment

is approved, PDC will continue to offer the same programs and services for affordable homeownership

and home repair around the URA. As property values and housing costs continue to rise in Lents and

citywide, PDC will also pursue opportunities to include some affordable housing in new and rehabili-

tated mixed-use developments that would help revitalize the town center and transit station areas, in

order to meet the original URA plan goal of “providing new and rehabilitated housing units suitable

for households with a range of incomes and housing needs…[and] Create housing opportunities that

allow Lents residents of all ages and income levels to remain in the community.”

LENTSTOW

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URBANRENEWAL

AREASTUDY

If PDC redevelops property on Foster Road what will happen to the existing businessesand residents on those specific sites?

PDC is required by law to offer relocation assistance for projects that PDC acquires. For

example, if PDC purchases a property along Foster Road that has rental housing, PDC

would be required to assist with relocation, in accordance with the Relocation Policies

and Procedures, A copy of the policy can be found on the PDC website:

www.pdc.us/pubs/sub_type_list.asp?id=53.

JOBS & ECONOMIC DEVELOPMENT

How many jobs have been created since 1998, how many businesses have been helped,and how many jobs will be created as a result of this amendment?

PDC supports small and large businesses. PDC has helped 94 small businesses since

1998, including 66 matching grants for storefront improvements and 28 loans for

quality jobs and building improvements. This public investment was doubled by the

private sector; of the $4.5 million loaned to small businesses, another $11.8 million in

private investment was leveraged to spur small business growth and jobs for local

residents.

Our economic development programs are geared towards helping small businesses as

well as assisting larger busi-

nesses. A majority of busi-

nesses in Lents fall into the

small business category.

PDC is a reliable resource to

help grow and expand

small business. Direct assis-

tance to businesses has cre-

ated or retained a total of

198 jobs – 26 created in

FY 06-07.

PDC does not project job

growth in the URA because

there are too many vari-

ables and factors that affect

employment. PDC is an op-

portunistic and entrepre-

neurial organization that

relies on market conditions,

timing, and building rela-

tionships with customers to

grow businesses and em-

ployment.

CONTACT INFORMATION:Kevin A. Cronin, ProjectManager, 503-823-3305;e-mail to cronink@pdc.us.

11Lents Town Center URA November 2007

www.pdc.us

DRAFT Lents Town Center URA November 2007