REPORT ON PROPOSED JUNIPER RIDGE URBAN RENEWAL August 29, 2005 City of Bend JUNIPER RIDGE URBAN RENEWAL REPORT LIST OF PARTICIPANTS City of Bend Staff John Russell Brian Shetterly Consultants Jeffrey Tashman, Tashman Johnson LLC Tina Mosca, Consulting Planner Ranjit Thomas, Financial Consultant JUNIPER RIDGE URBAN RENEWAL REPORT TABLE OF CONTENTS I. Introduction 1 II. Existing Physical and Economic Conditions and Impact on Municipal Services 2 A. Physical Conditions 2 B. Infrastructure 4 C. Social Conditions 6 D. Economic Conditions 7 E. Impact on Municipal Services 9 III. Reasons for Selection of Each Urban Renewal Area in The Plan 10 IV. The Relationship Between Urban Renewal Projects and the Existing Conditions in the Urban Renewal Area 11 A. Highway 97 Interchange and Intersection Improvements 11 B. Cooley Road Widening, Realignment and Improvements 11 C. Traffic Roundabouts 11 D. Cooley Road Extension 12 E. 18th Street Extension 12 F. Highway 97 Frontage Roads 12 G. New Collector Roads 13 H. New Local Roads 13 I. Sewer Trunk Line Extensions and Pump Station 13 J. Sewer Trunk Line Extensions 13 K. Sewer Pump Stations 14 L. Micro Package Treatment Plant 14 M. Water Trunk Line Connections and Hydrants 14 N. Storm Water Controls and Irrigation Ponds 14 O. Public Open Space 15 P. Linear Trail/ Greenway Network 15 Q. Hunnell Road Extension 15 R. Cooley Road Upgrade 16 S. Sub-Area B Bicycle Lane Improvements 16 T. Sub-Area B Sewer Extensions 16 U. Sub-Area B Water Extensions 16 JUNIPER RIDGE URBAN RENEWAL REPORT V. The Estimated Total Cost of Each Project and the Sources of Moneys to Pay Such Costs 18 VI. The Anticipated Completion Date for Each Project 19 VII. The Estimated Amount of Tax Increment Revenues Required and the Anticipated Year in which Indebtedness will be Retired 19 VIII. Financial Analysis of the Plan 20 IX. Impact on the Tax Increment Financing Both Until and After the Indebtedness is Repaid, Upon All Entities Levying Taxes Upon Property in the Urban Renewal Area 21 X. Relocation Report 22 JUNIPER RIDGE URBAN RENEWAL REPORT City of Bend August 5, 2005 I. INTRODUCTION The Juniper Urban Renewal Report (the ?Report?) contains background information and project details for the Juniper Ridge Renewal Plan (the ?Plan?). The Report is not a legal part of the Plan but is intended to provide public information and a basis for the findings made by the City Council as part of its approval of the Plan. The Report provides the information required in ORS 457.085(3). The format of the Report is based on this statute. JUNIPER RIDGE URBAN RENEWAL REPORT City of Bend August 5, 2005 II. EXISTING PHYSICAL AND ECONOMIC CONDITIONS AND IMPACT ON MUNCIPAL SERVICES This section of the Report describes existing conditions within the Juniper Urban Renewal Area (the ?Area?), documenting the occurrence of ?blighted areas? as defined by ORS 457.010(1). A. Physical Conditions 1. Land Use and Zoning The Area comprises an estimated 701.33 acres or 3.32% of Bend?s 21,110 acres of total land area. It is divided into two sub-areas. With an estimated land area of 558.4 acres, Sub-Area A includes properties adjacent to Cooley Road and Highway 97 and an estimated 513 acres of vacant land under city ownership, commonly referred to as Juniper Ridge Phase I (?Juniper Ridge?). While Sub-Area A is largely undeveloped, active uses, including two manufactured home parks on Highway 97, are present. Sub-Area B, which includes properties north and south of Cooley Road, west of Highway 97 and the Burlington Northern Santa Fe (BNSF) railroad, and north of Robal Road, encompasses an estimated 142.93 acres of predominantly and industrial and ancillary commercial lands. Existing commercial development within Sub-Area B includes the Lowe?s home improvement store on the SW corner of Cooley Road and Highway 97. Proposed development includes a Super Wal-Mart, to be located on the NW corner of Cooley Road and Highway 97. Following the adoption of this Plan, Juniper Ridge will be rezoned to allow for primarily industrial and ancillary commercial support uses that will facilitate the goals and objectives of the Plan. An analysis of property classification data from Deschutes County?s 2004-05 Tax Assessor?s database was used to identify existing land uses of parcels in the Area. As illustrated in Table 1, ?Land Use (2004-05),? the Area is characterized by a mix of uses, including commercial, industrial, mobile home park, non-EFU farmland and tax-exempt uses. The analysis of existing uses includes right-of-way (ROW) property within the Area, which as noted in Table 1, accounts for approximately 47.57 acres or 6.78% of the Area?s estimated total acreage. The property tax-exempt Juniper Ridge site accounts for the majority of the Area?s total acreage (78.5%). A large 52-acre parcel classified as vacant non- EFU farmland constitutes 8.0% of the Area?s total acreage. Commercial uses comprise 6.8% (44.24 acres) of the Area?s total acreage and residential uses are limited to two manufactured home parks totaling 16.94 acres or 2.6% of JUNIPER RIDGE URBAN RENEWAL REPORT City of Bend August 5, 2005 the Area?s total land area. As described above, vacant lands are predominant and constitute an estimated 560.08 acres or 85.7% of the Area?s total land area. Table 1: Land Use (2004-05) Property Class Number of Parcels Acres* % of Total Vacant Commercial 19 33.59 5.1% Improved Commercial 6 10.65 1.6% Vacant Industrial 5 13.03 2.0% Improved Industrial 5 14.09 2.2% Mobile Home Park 2 16.94 2.6% Vacant Non-EFU Farmland 1 0.46 0.1% Improved Non-EFU Farmland 1 52.00 8.0% Vacant City Exempt 1 513.00 78.5% Miscellaneous 1 0.00 0.0% TOTAL 41 653.76 100.0% TOTAL VACANT 26 560.08 85.7% TOTAL IMPROVED 14 93.68 14.3% Source: Deschutes County, OR 2004-05 Parcel Database *Analysis does not factor in an estimated 47.57 acres of ROW. As shown in Table 2, ?Zoning Districts (2004-05),? the Area is located within the City?s commercial, industrial and residential zoning districts. Similar to the land use analysis presented in Table 1, the zoning analysis does not factor in an estimated 47.57 acres of ROW property within the Area. JUNIPER RIDGE URBAN RENEWAL REPORT City of Bend August 5, 2005 Table 2: Zoning Districts (2004-05) Zoning District Number of Parcels Acres* % of Total Commercial Zoning Districts Commercial Highway (CH) 27 61.18 9.4% Mixed Employment (ME) 1 52.00 8.0% SUBTOTAL 28 113.18 17.3% Industrial Zoning Districts Light Industrial (IL)** 12 540.31 82.6% Residential Zoning Districts Residential Urban Standard Density (RS) 1 0.27 0.0% TOTAL 41 653.76 100.0% **The proposed zoning for Juniper Ridge Phase I is IL. Source: Deschutes County, OR 2004-05 Parcel Database *Analysis does not factor in an estimated 47.57 acres of ROW. Industrial-zoned lands are predominant, with an estimated 540.31 acres or 82.6% of the Area?s total acreage within Bend?s Light Industrial (IL) zoning district1. East of Highway 97, an estimated 113.18 acres or 17.3% of the Area?s total acreage is within Bend?s commercial zoning districts, with 61.18 acres in the Commercial Highway (CH) District and 52.00 acres in the Mixed Employment (ME) District. Residential-zoned property, limited to a small 0.27-acre parcel east of Highway 97 and north of Cooley Road, constitutes less than 1% of the Area?s total acreage. B. Infrastructure 1. Transportation As prescribed in the Transportation System Plan (TSP) and General Plan, the provision of safe and efficient multimodal access and the incorporation of high quality streetscape, landscape and parks and open space improvements throughout the Area will facilitate private investment. Under existing conditions, Sub-Area A is primarily undeveloped. The Juniper Ridge site lacks both internal collectors and local streets and adequate access from existing arterials and Highway 97. While access to Sub-Area B is less constrained, in order to increase the productivity of commercial and industrial lands, the Capital Improvement Plan (CIP) identifies transportation improvements that will increase both vehicular and non-vehicular access. The City has determined priority transportation needs for the Area, which include: 1The current General Plan designation for Juniper Ridge Phase 1 is Light Industrial (IL). The zoning analysis presented in Table 2 assumes that the City will apply the IL zoning designation to Juniper Ridge following the adoption of this Plan. JUNIPER RIDGE URBAN RENEWAL REPORT City of Bend August 5, 2005 1. convenient access to the Area from Highway 97 2. access to Juniper Ridge from Cooley Road 3. increased traffic volume capacity on Cooley Road 4. access to Juniper Ridge from 18th Street 5. traffic roundabouts within Juniper Ridge to facilitate safe, multimodal commutes 6. frontage roads along both sides of Highway 97 to facilitate local traffic circulation 7. a network of new collector roads to provide adequate internal access and circulation within Juniper Ridge 8. new local roads to provide direct access to sites in Juniper Ridge 9. a new railroad bridge where the BNSF railroad intersects with Cooley Road 10. access to properties north of Cooley Road from Hunnell Road 11. bike lanes on Cooley Road and Hunnell Road to provide safe and convenient multimodal access to and within Sub-Area B 12. increased access to Sub-Area B from Cooley Road 2. Public Utilities Sub-Area A presently lacks adequate sewer, water and stormwater infrastructure. In order for development to occur and to leverage private investment within Juniper Ridge, it will be necessary to provide sufficient public utilities. Sewer and water trunk line extensions along planned arterial and collector roads and street extensions, water connections to the McGrath Treatment Plant, and the construction of new sewer pump stations and a micro-package treatment plant have been identified as priority needs within Juniper Ridge. In addition, the Plan calls for the construction of irrigation ponds and other stormwater controls to manage stormwater runoff and mitigate the impacts of development on the natural environment. Similar to Sub-Area A, Sub-Area B lacks adequate sewer and water infrastructure to serve anticipated commercial and industrial development. The CIP identifies the extension of water lines along Cooley Road and the proposed Hunnell Road Extension and sewer lines along Cooley Road and Loco Road as priority projects. 3. Parks and Open Space At this time, there are no formal parks and open space areas in the Juniper Ridge area. The City has identified open space needs for Juniper Ridge, which include: JUNIPER RIDGE URBAN RENEWAL REPORT City of Bend August 5, 2005 ? public parks and open space areas that provide recreational opportunities for employees, visitors and local residents ? public access to natural amenities, including the waterfall along the Central Oregon Irrigation District (COID) canal ? a continuous and interconnected system of open space uses designed to preserve and enhance environmentally sensitive areas C. Social Conditions To provide an accurate assessment of the Area?s social conditions, a summary of demographic data and trends extracted from the 2000 U.S Census is included in this section. Given the predominance of commercial and industrial uses, the Area?s population is small and concentrated in two manufactured home parks abutting Highway 97. As Census Tract and Block Group geographic boundaries do not correspond with the Area, the analysis is limited to population and housing data available at the Census Block level. The analysis is based on the following Census Blocks: Census Tract 9912.01, Block Group 2 - Blocks 2042 and 2043 1. Population and Housing According to the Bureau of Census, the Area?s population was an estimated 69 persons in 2000. A total of 33 households with an estimated average household size of 2.15 persons was reported. The Area featured a total of 44 housing units in 2000. At 25% (11 units), the share of the Area?s housing units reported as vacant was significant. Of the Area?s 33 occupied units, 60.6% (20 units) were owner occupied and 39.4% (13 units) were renter occupied in 2000. As illustrated in Table 3, the Area?s population is predominantly white. In 2000, all reported residents affiliated were of one race and only 4 persons or 5.8% of the total population identified themselves as ?non-white?. JUNIPER RIDGE URBAN RENEWAL REPORT City of Bend August 5, 2005 Table 3: Race Characteristics (2000) Race Area Total % of Area Total Total: 69 100.0% Population of one race: 69 100.0% White alone 65 94.2% Black or African American alone 0 0.0% American Indian and Alaska Native alone 0 0.0% Asian alone 0 0.0% Native Hawaiian and Other Pacific Islander alone 0 0.0% Some other race alone 4 5.8% Two or more races: 0 0.0% Total non-white: 4 5.8% Source: 2000 Census, SF 1 - 100 Percent Data D. Economic Conditions 1. Taxable Value of Property within the Area The estimated taxable value of property within the Area, including all real, personal, personal manufactured and utility properties, is $14,210,598 or 0.26% of the City of Bend?s total assessed value. For municipalities over 50,000 in population, State law provides that the assessed value of an urban renewal area, when added to the certified assessed values for all other urban renewal areas, may not exceed 15% of the total assessed value of the municipality, exclusive of any increased assessed value for other urban renewal areas. Table 4 below, ?Conformance to Assessed Value Limits,? shows the certified frozen base AV of the existing Central Bend Urban Renewal Area and the impact that the new Area will have on the AV limit. Given the tax exempt status of Juniper Ridge, which accounts for the majority of the Area?s total acreage, the Area?s impact on the AV limit is very low and the City will remain well within the 15% limit. JUNIPER RIDGE URBAN RENEWAL REPORT City of Bend August 5, 2005 Table 4: Conformance to Assessed Value Limits Assessed Value Base AV Central Bend URA Frozen Base AV $48,487,501 Proposed Juniper Ridge URA $14,210,598 Total Certified Values in Urban Renewal Areas $62,698,099 Central Bend URA Incremental AV $113,348,000 Total AV, City of Bend (M50 AV less UR increment) $5,280,514,457 Percent of Bend AV in Urban Renewal Areas 1.19% In addition to imposing a 15% AV limit, State law limits the total land area within a municipality that can be within urban renewal areas to 15%. Table 5 below, ?Conformance to Acreage Limits,? shows the land area of the existing Central Bend Urban Renewal Area and the estimated acreage of the proposed new Area. With the addition of the Area, the City will remain within the 15% acreage limitation. 2. Existing Development As described in Section IIA, Land Use and Zoning, most of the Area is undeveloped at this time. Most notably, the Juniper Ridge site, with a General Plan designation of Light Industrial (IL), occupies an estimated 513 acres of vacant land or 78.5% of the Area?s total acreage. Commercial-zoned properties west of Highway 97 and north of Cooley Road are predominantly vacant. Existing uses, limited to two manufactured home parks and a single, low-value commercial structure, are not representative of the type of high- intensity commercial development that the General Plan expressly targets. With the exception of the Lowe?s on the SW corner of Cooley Road and Highway 97, which is anticipated to serve as an anchor for future commercial development and mixed employment uses in the vicinity of Highway 20, Highway 97 and Cooley Road, properties south of Cooley Road are undeveloped or underutilized. In particular, a large 52.0 acre property in Sub- Area B, west of Hunnell Road and south of Cooley Road, lies fallow. The property?s existing land use is non-EFU Farmland and its General Plan designation is ME. Improved commercial and industrial properties abutting Highway 97 are characterized by substandard, low value development. In general, the Area suffers from a lack of productive uses. Capital improvement projects and financial assistance programs provided in the Plan will encourage active uses and development that is consistent with the long range planning goals set forth in the General Plan. JUNIPER RIDGE URBAN RENEWAL REPORT City of Bend August 5, 2005 E. Impact on Municipal Services The fiscal impact of tax increment financing on taxing districts that levy taxes within the Area (?affected taxing districts?) is described in section IX of this Report. This subsection discusses the fiscal impacts resulting from potential increases in demand for municipal services. Anticipated increases in commercial and industrial development within the Area will generally result in higher demand for fire, life safety and public safety services. The completion of public open space areas in Juniper Ridge and landscaping improvements associated with many of the Plan?s public infrastructure and utility projects will increase the need for maintenance. As described in the Land Use and Zoning subsection, all properties in the Area are within the City?s commercial and industrial zoning districts and the Area?s existing population is small. Therefore, the increase in population and especially school age population within the Area is not expected to be significant and should not result in measurable increases in the demand for municipal and social services. JUNIPER RIDGE URBAN RENEWAL REPORT City of Bend August 5, 2005 III. REASONS FOR SELECTION OF EACH URBAN RENEWAL AREA IN THE PLAN There is one urban renewal area in the Plan and it was selected to remove and prevent the future occurrence of blighted areas as defined in ORS 457.010(1). JUNIPER RIDGE URBAN RENEWAL REPORT City of Bend August 5, 2005 IV. THE RELATIONSHIP BETWEEN URBAN RENEWAL PROJECTS AND THE EXISTING CONDITIONS IN THE URBAN RENEWAL AREA This section describes the relationship between the urban renewal projects authorized in the Plan and conditions generally described in Section II of this Report and, in more detail, below. Sub-Area A Projects A. Highway 97 Interchange and Intersection Improvements This project calls for the construction of freeway interchanges and intersection improvements on both sides of Highway 97, with separate turn lanes and grades for traffic entering and exiting the Highway and Cooley Road. Relationship to Existing Conditions As detailed in Section II, most of the Area is undeveloped, thereby limiting the demand for highway access. However, with the phased development of Juniper Ridge, commuter and commercial traffic is anticipated to increase dramatically and the demand for convenient and efficient access to Highway 97 will also rise. The construction of new interchanges at Highway 97 and Cooley Road, or other locations on Highway 97, will mitigate the impacts of increased traffic on existing arterials and facilitate safe and direct access to the Area. B. Cooley Road Widening, Realignment and Improvements This project calls for the widening of the existing Cooley Road to four lanes. The existing roadway will be realigned to connect it to the southwest entrance to Juniper Ridge. Relationship to Existing Conditions Cooley Road, the Area?s main east-west transportation corridor, is a 2-lane minor arterial with sufficient capacity to meet current traffic demands. As the Area develops, commutes to and from Juniper Ridge via Cooley Road will increase. To accommodate the projected increase in traffic volume, the realignment and widening of Cooley Road to a 4-lane arterial will be critical. C. Traffic Roundabouts The Plan calls for the design and construction of two traffic roundabouts in Juniper Ridge. Roundabout #1 will be located at the intersection of Cooley Road and 18th Street. Roundabout #2 will be on 18th Street. JUNIPER RIDGE URBAN RENEWAL REPORT City of Bend August 5, 2005 Relationship to Existing Conditions The installation of traffic roundabouts at key intersections in Juniper Ridge will promote multimodal safety and internal traffic circulation. D. Cooley Road Extension This project will extend the existing Cooley Road east from Roundabout # 1 to Deschutes Market Road. Relationship to Existing Conditions The existing Cooley Road extends as far as the planned location of Roundabout #1. Given that Juniper Ridge is undeveloped, facilitating access to the site, which extends beyond the terminus of the existing Cooley Road, has not been necessary to date. However, as development occurs and an internal street system of collectors and local roads is completed, the demand for convenient access to Juniper Ridge from various points on Cooley Road will increase. Further, extending Cooley Road to Deschutes Market Road will facilitate access to Juniper Ridge from the east. E. 18th Street Extension This project calls for the extension of 18th Street from Cooley Road to the COID canal. Relationship to Existing Conditions An existing north-south arterial, 18th Street extends north to Cooley Road. Similar to the Cooley Road Extension, the phased extension of 18th Street from Cooley Road to the COID canal will connect to internal collectors and local roads in Juniper Ridge and facilitate multimodal access and circulation throughout the area. F. Highway 97 Frontage Roads Concurrent with the implementation of the proposed Highway 97 Interchange and Intersection Improvements project, this project will extend frontage roads along both sides of Highway 97. Relationship to Existing Conditions As Juniper Ridge is undeveloped and inaccessible, its present impact on local traffic patterns is low. However, with the phased build-out of Juniper Ridge, it will be necessary to implement traffic management techniques and transportation improvements to ensure the safe and efficient of flow of traffic. Development of the proposed Highway 97 interchanges will necessitate the construction of frontage roads along Highway 97. The frontage roads will facilitate local traffic circulation and access to sites within Juniper Ridge without adding to traffic on Highway 97. JUNIPER RIDGE URBAN RENEWAL REPORT City of Bend August 5, 2005 G. New Collector Roads This project calls for the development of an anticipated eight new collector roads within Juniper Ridge. Relationship to Existing Conditions The provision of new collector roads within Juniper Ridge will promote multimodal circulation and safety by collecting and dispersing traffic from local roads to arterials. H. New Local Roads This project calls for the development of local roads in Juniper Ridge. Relationship to Existing Conditions The provision of new local roads will facilitate direct access to properties in Juniper Ridge. I. Sewer Trunk Line Extensions and Pump Station This project will provide new sewer main extensions and a pump station south of Roundabout #1. Relationship to Existing Conditions To date, the provision of sewer infrastructure within Juniper Ridge has not been a priority since the area is vacant. However, as with planned transportation, water and stormwater improvements, the provision of sewer lines and a new pump station is a prerequisite to development. J. Sewer Trunk Line Extensions Proposed projects include a new 14-inch sewer main extension from Roundabout #1 to the McGrath Treatment Plant and a Level 4 Water connection from the McGrath Treatment Plant. Additional sewer lines may be extended throughout Juniper Ridge as necessitated by development. Relationship to Existing Conditions As described above, Juniper Ridge lacks sewer infrastructure. The proposed improvements will enable new development to hook up to the City sewer system. By assisting with the costly expense of extending sewer lines to the area, urban renewal will help jump start development in Juniper Ridge. JUNIPER RIDGE URBAN RENEWAL REPORT City of Bend August 5, 2005 K. Sewer Pump Stations This project calls for the construction of new sewer pump stations concurrent with the phased development of Juniper Ridge. Relationship to Existing Conditions As the intensity of development in Juniper Ridge increases, the provision of new sewer pump stations will be necessary to meet the capacity demands of light industrial users. L. Micro-Package Treatment Plant This project calls for the construction of an on-site micro-package treatment facility and conveyance and disposal systems in Juniper Ridge, which could supplement or replace elements of planned sewer projects. Relationship to Existing Conditions Developing an on-site micro-package treatment plant and associated conveyance and disposal systems in Juniper Ridge will ensure that adequate sewage treatment services are available to businesses that locate in the Area. Most notably, this project will accommodate the capacity demands generated by water-intensive industrial processes. M. Water Trunk Line Connections and Hydrants This project calls for the provision of trunk line connections and fire and water flow hydrants at strategic locations within Juniper Ridge. The extension of a new water main along the Cooley Road Extension to Roundabout #1 and the COID canal is a priority project. Other projects may include a water main extension along the 18th Street Extension to Roundabout #2 and the COID canal. Relationship to Existing Conditions Juniper Ridge lacks water infrastructure. Extending existing water lines, including the 12-inch line along Cooley Road, through the area and installing flow hydrants will facilitate development and compliance with fire and safety regulations. N. Storm Water Controls and Irrigation Ponds Initially, this project calls for the construction of an irrigation pond and storm water controls near the planned entrance to the Juniper Ridge area. As build-out occurs, additional irrigation ponds may be constructed. Relationship to Existing Conditions Juniper Ridge lacks surface water management facilities. Development of the area will necessitate the construction of on-site storm water controls and irrigation ponds JUNIPER RIDGE URBAN RENEWAL REPORT City of Bend August 5, 2005 to manage stormwater runoff generated by light industrial users and mitigate impacts on environmentally sensitive areas. O. Public Open Space Proposed open space areas will be developed at key locations in Juniper Ridge. Open space areas may include but are not limited to the southwest corner of Juniper Ridge, an area adjacent to the North Point Neighborhood, and an area near the waterfall along the COID canal. Relationship to Existing Conditions Currently, Juniper Ridge does not have any public open space areas or recreational facilities. As the area develops and business, employment and commercial activity increases, public open space areas will be developed to serve workers and visitors and the general public. The open space areas will be designed to enhance and preserve the integrity of the area?s natural resources. P. Linear Trail/ Greenway Network This project calls for the creation of a linear trail/ greenway network that interconnects public open space uses within and around Juniper Ridge. Specific project components may include pedestrian pathways, recreational trails and greenway buffers that protect environmentally sensitive areas. Relationship to Existing Conditions As described above, the lack of formal public open space areas in Juniper Ridge will be addressed as the intensity of uses increases. The linear trail/ greenway network will connect individual open spaces areas and provide opportunities for recreational activity while preserving the area?s natural amenities. Sub-Area B Projects Q. Hunnell Road Extension This project will extend Hunnell Road, an existing minor arterial, from Cooley Road to the Urban Reserve Boundary. The extension will be classified as a collector road. Relationship to Existing Conditions Access to commercial-zoned properties that abut the proposed Hunnell Road Extension is severely constrained. Some properties lack direct access and must be accessed through neighboring properties. The extension will accommodate traffic generated by nearby commercial and industrial uses and generally improve traffic circulation within Sub-Area B. JUNIPER RIDGE URBAN RENEWAL REPORT City of Bend August 5, 2005 R. Cooley Road Upgrade In conjunction with proposed improvements to Cooley Road in Sub-Area A, this project calls for the upgrade of the existing Cooley Road to a 4-lane minor arterial between Highway 20 and the western boundary of Sub-Area A. A new intersection and traffic roundabout will be constructed at Cooley Road and the terminus of the existing Hunnell Road. Relationship to Existing Conditions Although Cooley Road is classified as a minor arterial in the TSP, it is not to standard at this time. As the Area develops and traffic volume increases, widening the existing 2-lane roadway to 4-lanes and upgrading it to arterial standards will be necessary to accommodate increased capacity demands. S. Sub-Area B Bicycle Lane Improvements Planned bike lanes within Sub-Area B will be located on Cooley Road (Hwy 20 to Highway 97), Hunnell Road (Robal Lane to Cooley Road) and Robal Lane (Hwy 20 to Highway 97). Relationship to Existing Conditions The lack of dedicated bike lanes on minor arterials within Sub-Area B hinders multimodal access to (and within) the area. Completing planned bike improvements identified in the City?s Bicycle and Primary Trail System Plan will facilitate safe and convenient access to the area by bicyclists and further the Plan?s objective to develop bike and pedestrian facilities that encourage multimodal transportation. T. Sub-Area B Sewer Extensions This project calls for the provision of a new north-south sewer line along the proposed Hunnell Road Extension and an east-west line along Loco Road, which parallels the Urban Reserve Boundary. Relationship to Existing Conditions Properties abutting Loco Road and the proposed Hunnell Extension lack sewer infrastructure. While the properties are within the City?s Highway Commercial zoning district, most are undeveloped or underdeveloped. Extending sewer lines along arterials and collectors will facilitate more productive uses within Sub-Area B. U. Sub-Area B Water Extensions Proposed water extensions within Sub-Area B may include a new north-south water line along the proposed Hunnell Road Extension and a 12-inch water line along Cooley Road. JUNIPER RIDGE URBAN RENEWAL REPORT City of Bend August 5, 2005 Relationship to Existing Conditions Water infrastructure in Sub-Area B is insufficient to meet the capacity demands of projected development. New water lines will facilitate more intensive development. JUNIPER RIDGE URBAN RENEWAL REPORT City of Bend August 5, 2005 V. THE ESTIMATED TOTAL COST OF EACH PROJECT AND THE SOURCES OF MONEYS TO PAY SUCH COSTS Table 6 below shows the estimated total cost of each project and the estimated sources of funds to address such costs, with all figures in year-of -expenditure dollars. Of the ?other revenues,? $20.9 million are anticipated to be loans to be repaid, with interest, from tax increment revenues by FY 2029. Table 6: Estimated Total Costs and Revenues REVENUES Debt Proceeds: Tax Increment Debt - Long term 17,842,167 Tax Increment Debt - Short term 2,521,440 State and Federal Funding For HWY 97/Cooley 15,000,000 State and Federal Funding For RR Crossing 1,000,000 Developer Contribution (Subarea B) 1,250,000 Other Revenues (SDC's, LID, Grants, City Funding) 34,066,995 Total Revenues 71,680,602 Administration 2,561,559 Project Needs (Year of Expenditure$) Highway 97 /Cooley Road Interchange and Intersection Improvements 36,050,000 Burlington Northern Santa Fe (BNSF) Railroad Grade Separation (Cooley Road) 1,545,000 Cooley Road Widening 4,604,100 Roundabouts on Cooley 824,000 Cooley Road Extension To Canal 3,646,200 18th Street Extension 1,730,400 Collector Roads 2,402,475 Sewer Trunk Line Extensions and Pump Station, Cooley and 18th 1,346,725 Water Trunk Lines on 18th and Cooley 1,102,100 COID Canal Piping 576,800 Hunnel Road Extension (West of 97) 0 Cooley Road Extension (West of 97) 0 Cooley Road Extension (Canal - Deschutes Market Rd) 4,944,000 Sewer Trunk Line Extensions and Connection to STP 4,833,275 18th Street Extension (Rdt 3 - Canal) 4,614,400 Bond Issuance Costs 899,568 Total Expenditures 71,680,602 JUNIPER RIDGE URBAN RENEWAL REPORT City of Bend August 5, 2005 VI. THE ANTICIPATED COMPLETION DATE FOR EACH PROJECT All projects are anticipated to be completed by June 30, 2017. VII. THE ESTIMATED AMOUNT OF TAX INCREMENT REVENUES REQUIRED AND THE ANTICIPATED YEAR IN WHICH INDEBTEDNESS WILL BE RETIRED Table 7 shows the yearly tax increment revenues and their allocation to debt service and debt service reserve funds. It is anticipated that all debt will be retired by the end of FY 2028/2029. Debt service includes short term bonds issued through FY 2016, and reimbursement of $20.9 million of the ?other revenues? shown in Table 6 from FY 2017 through FY 2029. The total amount of tax increment revenues required to pay this debt is $67,485,948. The difference between this total amount of tax increment revenues required and the maximum amount of indebtedness are the interest payments for debt. JUNIPER RIDGE URBAN RENEWAL REPORT City of Bend August 5, 2005 VIII. FINANCIAL ANALYSIS OF THE PLAN The estimated tax increment revenues of Table 7 are based on projections of the assessed value of development within the Area as provided by the City of Bend as part of the Juniper Ridge Public Facilities Plan and on development that has occurred or is underway on the West Side of Highway 97. Table 8 shows the projected incremental assessed value, projected tax rates that would produce tax increment revenues, and the annual tax increment revenues. These in turn provide the basis for the projections in Table 7. JUNIPER RIDGE URBAN RENEWAL REPORT City of Bend August 5, 2005 IX. IMPACT ON THE TAX INCREMENT FINANCING BOTH UNTIL AND AFTER THE INDEBTEDNESS IS REPAID, UPON ALL ENTITIES LEVYING TAXES UPON PROPERTY IN THE URBAN RENEWAL AREA The impact of tax increment financing on overlapping taxing districts consists primarily of the property tax revenues foregone on permanent rate levies as applied to the growth in assessed value in the Area without the Plan. Revenues on growth in assessed value that would not occur but for the Plan cannot be considered as foregone. It is reasonable to project that development within the Area without the Plan would take longer to occur, would be less extensive and would have lower assessed values. The projection in this Report is that development would begin in the area east of Highway 97 four years later (during FY 2008/2009) and would total 25% of the projected development with the Urban Renewal Plan. The projection of 25% is based on the importance of urban renewal investments to support the full scope and quality of development and the limited nature of alternative funding sources. Development west of Highway 97 is assumed at the same schedule and value as with the Urban Renewal Plan. Table 9 shows the property tax revenue foregone by overlapping taxing districts during the use of tax increment financing, in terms of average revenues foregone per year through FY 2028/2029, both in year of receipt dollars and current dollars. No impacts are shown for the K-12 School District or Educational Service District, because under the current K-12 and ESD financing system, property tax revenues foregone by the districts would be offset by additional revenues from the State School Fund. Table 10 shows the increase in permanent rate levy revenues that would occur in the years after termination of the tax increment financing, from FY 2030 through FY 2035, when the projected additional value in the Area would result in a ?break even? point. During FY 2034/2035, the value in current dollars of the revenues foregone would be exceeded by the value in current dollars of the additional revenues gained. JUNIPER RIDGE URBAN RENEWAL REPORT City of Bend August 5, 2005 X. RELOCATION REPORT At the time of adoption of the Plan, the alignments and locations of public improvements and facilities had not been determined with enough specificity to know whether any residents or businesses would be displaced. At the time that such project locations and alignments are determined, and if there is displacement as a result of projects, the Agency shall amend this section of the Report to present that information JUNIPER RIDGE URBAN RENEWAL REPORT Tashman Johnson LLC August 5, 2005 23 Table 7: Tax Increment Revenues, Debt Service and Debt Service Reserves FY Ending June 3020072008200920102011201220132014201520162017REVENUESBeginning Balance-$ 196,966$ 423,380$ 412,490$ 412,490$ 642,512$ 616,976$ 1,089,021$ 1,177,281$ 1,177,281$ 1,986,010$ Tax Increment Revenues 156,182$ 327,156$ 437,486$ 554,233$ 723,767$ 960,876$ 1,508,194$ 1,704,544$ 2,015,229$ 2,571,910$ 2,753,952$ Interest2,343$ 10,816$ 19,264$ 20,688$ 23,231$ 33,688$ 41,132$ 58,239$ 65,547$ 73,897$ 100,890$ Transfer from Bond Proceeds150,000$ 100,000$ Total Revenues308,524$ 534,938$ 880,129$ 987,411$ 1,159,488$ 1,637,076$ 2,166,302$ 2,851,803$ 3,258,057$ 3,823,089$ 4,840,852$ EXPENDITURESDebt Service, Long Term Bond 1111,558$ 111,558$ 111,558$ 111,558$ 111,558$ 111,558$ 111,558$ 111,558$ 111,558$ 111,558$ 111,558$ Bond 2200,931$ 200,931$ 200,931$ 200,931$ 200,931$ 200,931$ 200,931$ 200,931$ 200,931$ Bond 3204,487$ 204,487$ 204,487$ 204,487$ 204,487$ 204,487$ 204,487$ Bond 4560,305$ 560,305$ 560,305$ 560,305$ 560,305$ Bond 5759,798$ 759,798$ Total Debt Service, Long Term111,558 $ 111,558$ 312,490$ 312,490$ 516,976$ 516,976$ 1,077,281$ 1,077,281$ 1,077,281$ 1,837,079$ 1,837,079$ Bond Reserve111,558$ 111,558$ 312,490$ 312,490$ 516,976$ 516,976$ 1,077,281$ 1,077,281$ 1,077,281$ 1,837,079$ 1,837,079$ Debt Service Short Term/Reimbursement-$ 155,150$ 262,431$ -$ 503,124$ -$ 597,241$ 1,003,494$ -$ 1,066,694$ Total Expenditures223,117$ 223,117$ 780,129$ 887,411$ 1,033,953$ 1,537,076$ 2,154,562$ 2,751,803$ 3,158,057$ 3,674,158$ 4,740,852$ JUNIPER RIDGE URBAN RENEWAL REPORT Tashman Johnson LLC August 5, 2005 24Table 7: Tax Increment Revenues, Debt Service and Debt Service Reserves (Continued) FY Ending June 30201820192020202120222023202420252026202720282029REVENUESBeginning Balance1,937,079$ 1,937,079$ 1,937,079$ 1,937,079$ 1,825,521$ 1,825,521$ 1,624,589$ 1,624,589$ 1,420,103$ 1,420,103$ 859,798$ 859,798$ Tax Increment Revenues 3,203,971$ 3,575,256$ 3,934,473$ 4,302,801$ 4,705,295$ 4,771,032$ 4,800,622$ 4,831,099$ 4,862,490$ 4,894,824$ 4,928,127$ 4,962,430$ Interest106,172$ 111,741$ 117,129$ 122,654$ 125,345$ 126,331$ 120,747$ 121,204$ 115,540$ 116,025$ 99,716$ 100,230$ Transfer from Bond ProceedsTotal Revenues5,247,222$ 5,624,077$ 5,988,681$ 6,362,534$ 6,656,161$ 6,722,884$ 6,545,958$ 6,576,892$ 6,398,133$ 6,430,952$ 5,887,641$ 5,922,458$ EXPENDITURESDebt Service, Long Term Bond 1111,558$ 111,558$ 111,558$ 111,558$ Bond 2200,931$ 200,931$ 200,931$ 200,931$ 200,931$ 200,931$ Bond 3204,487$ 204,487$ 204,487$ 204,487$ 204,487$ 204,487$ 204,487$ 204,487$ Bond 4560,305$ 560,305$ 560,305$ 560,305$ 560,305$ 560,305$ 560,305$ 560,305$ 560,305$ 560,305$ Bond 5759,798$ 759,798$ 759,798$ 759,798$ 759,798$ 759,798$ 759,798$ 759,798$ 759,798$ 759,798 $ 759,798$ 759,798$ Total Debt Service, Long Term1,837,079$ 1,837,079$ 1,837,079$ 1,837,079$ 1,725,521$ 1,725,521$ 1,524,589$ 1,524,589$ 1,320,103$ 1,320,103$ 759,798$ 759,798$ Bond Reserve1,837,079$ 1,837,079$ 1,837,079$ 1,725,521$ 1,725,521$ 1,524,589$ 1,524,589$ 1,320,103$ 1,320,103$ 759,798$ 759,798$ 759,798$ Debt Service Short Term/Reimbursement1,473,064$ 1,849,919$ 2,214,523$ 2,699,934$ 3,105,120$ 3,372,774$ 3,396,780$ 3,632,201$ 3,657,928$ 4,251,052$ 4,268,045$ 4,402,862$ Total Expenditures5,147,222$ 5,524,077$ 5,888,681$ 6,262,534$ 6,556,161$ 6,622,884$ 6,445,958$ 6,476,892$ 6,298,133$ 6,330,952$ 5,787,641$ 5,922,458$ Summary of Tax Increment Debt Principal ? Maximum Amount Of Indebtedness Long Term Bonds17,842,167Short Term Bonds2,521,440Reimbursement20,886,393Total41,250,000Principal of Tax Increment Debt Total Tax Increment Revenues Required to Pay Maximum Amount Of Indebtedness : $ 67,485,948 JUNIPER RIDGE URBAN RENEWAL REPORT Tashman Johnson LLC August 5, 2005 25 Table 8: Projected Incremental Assessed Value and Tax Rates FY Ending June 3020072008200920102011201220132014201520162017Base14,210,59814,210,59814,210,59814,210,59814,210,59814,210,59814,210,59814,210,59814,210,59814,210,59814,210,598Appreciation %0%0%0%0%0%0%0%0%0%0%0%Appreciation Dollars00000000000AssessedValueofNewDevelopment,Eastof Highway 9704,118,8704,221,8427,212,3132,957,04917,049,23345,213,0909,553,25330,192,26125,928,62419,289,642AssessedValueofNewDevelopment,Westof Highway 9713,000,0009,750,00005,759,3855,903,3706,050,95400000Sub Total Industrial/R&D AV04,118,8708,340,71215,553,02618,510,07435,559,30780,772,39790,325,650120,517,912146,446,536165,736,178Sub Total Commercial AV27,636,91638,216,02343,478,80046,302,76457,919,90161,254,02863,091,64870,417,81166,933,93074,650,42771,010,206Total AV27,636,91642,334,89451,819,51261,855,79076,429,97596,813,335143,864,045160,743,461187,451,842221,096,963236,746,384Incremental AV13,426,31828,124,29637,608,91447,645,19262,219,37782,602,737129,653,447146,532,863173,241,244206,886,365222,535,786Tax Rate Per $1,000 AV11.7500Tax Increment Revenues157,759$ 330,460$ 441,905$ 559,831$ 731,078$ 970,582$ 1,523,428$ 1,721,761$ 2,035,585$ 2,597,889$ 2,781,770$ FY Ending June 30201820192020202120222023202420252026202720282029Base14,210,59814,210,59814,210,59814,210,59814,210,59814,210,59814,210,59814,210,59814,210,59814,210,59814,210,59814,210,598Appreciation %0%0%0%0%0%0%0%0%0%0%0%0%Appreciation Dollars000000000000AssessedValueofNewDevelopment,Eastof Highway 9736,556,01529,723,73128,620,35029,335,85932,203,2023,181,521000000AssessedValueofNewDevelopment,Westof Highway 970Sub Total Industrial/R&D AV202,292,193232,015,924260,636,274289,972,133322,175,335325,356,856325,356,856325,356,856325,356,856325,356,856325,356,856325,356,856Sub Total Commercial AV73,140,51275,334,72877,594,77079,922,61382,320,29184,789,90087,333,59789,953,60592,652,21395,431,77998,294,733101,243,574Total AV275,432,705307,350,652338,231,043369,894,745404,495,626410,146,756412,690,453415,310,461418,009,069420,788,635423,651,589426,600,431Incremental AV261,222,107293,140,054324,020,445355,684,147390,285,028395,936,158398,479,855401,099,863403,798,471406,578,037409,440,991412,389,833Tax Rate Per $1,000 AV11.750011.750011.750011.750011.750011.750011.750011.750011.750011.750011.750011.7500Tax Increment Revenues3,236,334$ 3,611,370$ 3,974,215$ 4,346,263$ 4,752,824$ 4,819,224$ 4,849,113$ 4,879,898$ 4,911,607$ 4,944,266$ 4,977,906$ 5,012,555$ JUNIPER RIDGE URBAN RENEWAL REPORT Tashman Johnson LLC August 5, 2005 Table 9: Revenues Foregone Revenues Forgone in Year of Receipt Dollars Through 2029 Average/Year Deschutes County 2,269,255 108,060 County Extension 4H 39,765 1,894 City of Bend 4,976,809 236,991 Bend Metropolitan Park and Recreation 2,593,586 123,504 911 287,229 13,678 Deschutes County Library 976,367 46,494 COCC 1,101,342 52,445 Present Value of Revenues Foregone Through 2029 Average/Year Deschutes County 1,436,618 68,410 County Extension 4H 25,174 1,199 City of Bend 3,150,716 150,034 Bend Metropolitan Park and Recreation 1,641,946 78,188 911 181,839 8,659 Deschutes County Library 618,118 29,434 COCC 697,237 33,202 Table 10: Revenues Gained After Termination of Tax Increment Financing FY 2030 through FY 2035 Taxing District Through 2035 Deschutes County 1,612,283 County Extension 4H 28,252 City of Bend 3,535,974 Bend Metropolitan Park and Recreation 1,842,717 911 204,074 Deschutes County Library 693,699 COCC 782,493