Report Accompanying Recommended Estacada Downtown Urban Renewal Plan Prepared by: Tashman Johnson LLC Cascade Economic Planning SERA Architects January 11, 2007 LIST OF PARTICIPANTS Mayor of Estacada Robert Austin Estacada City Council Becky Arnold Michele Conditt Ben Erickson Norm Ernst Richard Hartwig Kay Nelson City of Estacada Staff Randy Ealy, City Manager Chris Randall, Public Works Director Consultants Jeffrey Tashman, Tashman Johnson LLC Tina Mosca, Cascade Economic Planning Allison Wildman, SERA Architects TABLE OF CONTENTS I. Introduction ....................................................................................................................................1 II. Existing Physical and Economic Conditions and Impact on Municipal Services.....................2 A. Physical Conditions...................................................................................................................2 B. Infrastructure .............................................................................................................................5 C. Social Conditions ......................................................................................................................7 D. Economic Conditions ................................................................................................................7 E. Impact on Municipal Services.................................................................................................10 III. Reasons for Selection of Each Urban Renewal Area in the Plan .............................................11 IV. Compliance with Statutory Limits on Assessed Value and Size of Urban Renewal Area .....11 V. The Relationship between Urban Renewal Projects and the Existing Conditions in the Urban Renewal Area....................................................................................................................12 A. Central Business District Streetscape Improvements..............................................................12 B. Highway 224 Gateway Improvements....................................................................................12 C. Area-Wide Street Pavement Improvements ............................................................................13 D. Public Parking .........................................................................................................................13 E. Water System Improvements ..................................................................................................13 F. Sewer System Improvements ..................................................................................................14 G. Riverfront Improvements ........................................................................................................14 H. Fire Station Improvements ......................................................................................................14 VI. The Estimated Total Cost of Each Project and the Sources of Moneys to Pay Such Costs...15 VII. The Anticipated Completion Date for Each Project..................................................................21 VIII. The Estimated Amount of Tax Increment Revenues Required and the Anticipated Year in which Indebtedness will be Retired ............................................................................................21 IX. Financial Analysis of the Plan .....................................................................................................21 X. Impact of the Tax Increment Financing, Both Until and After the Indebtedness is Repaid, Upon All Entities Levying Taxes Upon Property in the Urban Renewal Area.......................22 XI. Relocation Methods......................................................................................................................24 REPORT ON ESTACADA DOWNTOWN RENEWAL PLAN City of Estacada January 11, 2007 1 I. INTRODUCTION The Estacada Downtown Urban Renewal Report (the ?Report?) contains background information and project details for the Estacada Downtown Urban Renewal Plan (the ?Plan?). The Report is not a legal part of the Plan but is intended to provide public information that will guide 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. REPORT ON ESTACADA DOWNTOWN RENEWAL PLAN City of Estacada January 11, 2007 2 II. EXISTING PHYSICAL AND ECONOMIC CONDITIONS AND IMPACT ON MUNICIPAL SERVICES This section of the Report describes existing conditions within the Estacada Downtown 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, shown in Figure 1 below, contains approximately 72.2 acres, including an estimated 36.7 acres of public right-of-way (ROW). It includes 153 individual properties zoned for commercial and residential use. An estimated 31.3 acres is within the City?s Central Commercial (C-1) District, which encompasses Estacada?s downtown/central district. South of Highway 224, an estimated 4.3 acres of property overlooking the Clackamas River, including several vacant and underutilized sites, is within the Multiple Family Residential (R-3) District. The Clackamas River is an important natural amenity that provides recreational opportunities for local residents and visitors to the Area. The riverfront area?s proximity to downtown, Highway 224 and recreational activities makes it an ideal location for new residential and tourist-oriented development. Under current conditions, the Area consists primarily of redevelopable commercial property in Estacada?s downtown/central business district. A significant share of existing commercial buildings in the Area have been poorly maintained and will require major upgrades, rehabilitation or redevelopment to attract and retain high quality retail, entertainment and recreational uses and office development that will provide professional employment opportunities for local residents. Most of the Area?s existing businesses are concentrated north of Highway 224, in the downtown area. While the majority of downtown retailers are small, locally owned retail shops, regional retailers such as Hi-School Pharmacy and Thriftway as well as national franchises such as Subway and True Value Hardware are also represented. In addition to businesses specializing in retail sales and services, two major utility companies, Cascade Utilities and Portland General Electric, operate facilities and ancillary offices in the downtown area. Commercial development in the southern portion of the Area, which extends from Highway 224 to the Clackamas River, is generally oriented to tourists and recreational users. Examples of existing businesses include the Red Fox Motel and two restaurants, the Boots and Spurs Family Restaurant and the Cazadero Inn. In addition to the commercial uses described above, the Area features a limited number of residential uses. Most of the Area?s existing residential development is older and in substandard condition. Although existing development regulations REPORT ON ESTACADA DOWNTOWN RENEWAL PLAN City of Estacada January 11, 2007 3 prohibit residential development in the C-1 District, a scattering of single family homes and apartment complexes that pre-date current zoning and development provisions are located in the downtown/central business district. South of Highway 224 in the R-3 District, existing residential development includes a newer single family home built in 1995 and an aging apartment complex adjacent to the Clackamas River. REPORT ON ESTACADA DOWNTOWN RENEWAL PLAN City of Estacada January 11, 2007 4 Figure 1: Estacada Downtown Urban Renewal Area REPORT ON ESTACADA DOWNTOWN RENEWAL PLAN City of Estacada January 11, 2007 5 Table 1, ?Land Use? shows the distribution of Area lands by property class, as identified in Clackamas County?s Fiscal Year 2005-06 Assessment and Taxation database. Table 1: Land Use Land Use Acres 2/ % of Total Acres Vacant Residential 0.9 2.7% Improved Residential 3.9 10.9% Vacant Commercial 2.0 5.7% Improved Commercial 23.7 66.9% Vacant Multi-family Residential 0.9 2.7% Improved Multi-family Residential 1.4 3.9% Operating Assessed 1/ 2.6 7.2% TOTAL 35.5 100.0% TOTAL VACANT 3.9 11.1% Source: Clackamas County 2005-06 Assessment and Taxation Database 1/ Utility properties assessed by the State 2/ Does not include an estimated 36.7 acres of public right-of-way. As described above, the Area features a broad mix of uses. At 66.9% (23.7 acres), improved commercial property is the predominant use, followed by improved residential property, which constitutes 10.9% (3.9 acres) of the Area?s total acreage. Vacant residential and commercial lands comprise 11.1% of the Area?s total acreage. Cascade Utilities and Portland General Electric own seven properties totaling 2.6 acres that are assessed by the Oregon Department of Revenue. B. Infrastructure 1. Transportation The Area is adjacent to Highway 224, a state highway that serves as the primary entryway to the City and provides direct access to the downtown/central business district from outside areas. Under current conditions, Highway 224 lacks the sort of visual markers (e.g. decorative signage, landscaping features, etc.) needed to create a clearly identifiable gateway to the City and capture the attention of motor vehiclists traveling through the area. The poor condition of many Area roadways ? in particular, substandard pavement conditions ? limits the Area?s economic vitality and its capacity to attract and retain high quality retail and office development and tourist-related uses. Further, the Area lacks a comprehensive system of streetscape improvements and REPORT ON ESTACADA DOWNTOWN RENEWAL PLAN City of Estacada January 11, 2007 6 pedestrian facilities needed to create a safe and attractive environment for shopping, entertainment and recreational activities and improve connections within the downtown/central business district and between downtown and neighboring areas. Upgrades to the pedestrian, bicycle and streetscape systems south of Highway 224 are also needed to facilitate the redevelopment of the riverfront area into a neighborhood that includes a mix of high quality residential and tourist-oriented development. The Plan supports transportation projects that will improve multimodal access, connectivity and safety within the Area by improving surface street conditions, providing a contiguous system of pedestrian-oriented streetscape improvements and increasing pedestrian and bicycle access to the riverfront area. Further, to increase the visibility of the downtown/central business district from Highway 224 and create a unique identity for the City, the Plan identifies gateway improvements along Highway 224 as a priority project. 2. Public Facilities The Area lacks the public facilities needed to support higher-intensity commercial, office, residential and recreational uses and new development that is consistent with the goals and objectives of the Development Code and Comprehensive Plan. 3. Public Buildings Estacada Rural Fire District?s Main Station No. 110 is in the Area. The existing fire station will need to be upgraded or replaced to continue to meet the growing demand for fire and emergency services both within and outside the Area. 4. Parks There are no public parks in the Area at this time. 5. Public Parking Currently, there are no public parking facilities in the Area. As the Area redevelops, attracting new commercial and office development and recreational uses, the provision of public parking facilities that are centrally located, within close proximity of retail shops and commercial and office buildings, will be necessary. REPORT ON ESTACADA DOWNTOWN RENEWAL PLAN City of Estacada January 11, 2007 7 C. Social Conditions Currently, the Area encompasses an estimated twenty-three single family residences ranging in age from 11 to 102 years old, as well as four apartment complexes and a retirement home. These residential uses are dispersed throughout the Area and represent a relatively small number of households. Given the Area is contained within two Census Block Groups that encompass all property within the City of Estacada, acquiring meaningful population and household statistics on Area households is not possible and a summary of existing social conditions is not provided in this Report. D. Economic Conditions 1. Taxable Value of Property Within the Area The estimated total assessed value of the Area, including all real, personal, personal manufactured and utility properties, is $23,604,203 or 17.8.% of the City of Estacada?s total assessed value for FY 2005/2006. 2. Building to Land Value Ratio An analysis of property values can be used to evaluate the economic condition of real estate investments in a given area. The relationship of a property?s improvement value (the value of buildings and other improvements to the property) to its land value is generally an accurate indicator of the condition of real estate investments. This relationship is referred to as the ?Improvement to Land Ratio? or ?I:L?. The values used are real market values. In urban renewal areas, the I:L may be used to measure the intensity of development or the extent to which an area has achieved its development objectives. I:L ratios for healthy properties within the Area could range between 7.0 -10.0 or more. For instance, a property on a 10,000 square foot lot would have a land value of $120,000 at $12.00 per square foot. A three-story development with ground floor retail and professional offices on the upper floors containing 15,000 square feet valued at $65.00 per square foot would have an improvement value of $975,000. The I:L ratio for this property would be 8.1. Table 2 below, ?Improvement to Land Ratios (FY 2005-06),? shows the improvement to land ratios for properties within the study area. REPORT ON ESTACADA DOWNTOWN RENEWAL PLAN City of Estacada January 11, 2007 8 Table 2: Improvement to Land Ratios (FY 2005-06) Improvement to Land Class Taxlot Acres % of Total No Building Value 6.0 18.1% < 1 4.7 14.3% 1 to 2 7.6 23.1% 2 to 5 6.7 20.2% Greater than 5 8.0 24.3% TOTAL1/ 32.9 100.0% Source: Clackamas County 2005-06 Assessment and Taxation Database 1/ Does not include utility properties assessed by the Oregon Department of Revenue. As the table shows, I:L ratios for improved properties in the Area are generally low. More than half of Area properties (55.5%) have an I:L ratio of less than 2.0 and just over three quarters of Area properties (75.7%) have an I:L ratio of 5.0 or less. This is a direct reflection of the predominance of older commercial buildings and single family residences in substandard physical condition and the need for public improvements and development assistance programs that will facilitate private investment that is consistent with the City?s long-term vision for the Area. Figure 2 below identifies three redevelopment areas with low improvement to land value ratios and significant redevelopment potential. Under existing conditions, these areas contain a considerable number of vacant and underutilized properties. In cooperation with land owners and existing businesses, the Agency may wish to focus its revitalization efforts in these areas. REPORT ON ESTACADA DOWNTOWN RENEWAL PLAN City of Estacada January 11, 2007 9 Figure 2: Redevelopment Areas REPORT ON ESTACADA DOWNTOWN RENEWAL PLAN City of Estacada January 11, 2007 10 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 X of this Report. This subsection discusses the fiscal impacts resulting from potential increases in demand for municipal services. Increases in commercial and residential occupancies within the Area will generally result in higher demand for fire, life safety and public safety services. However, transportation improvements identified in the Plan will make the Area safer and more accessible to fire and emergency services vehicles. Street and public facilities improvements in the Area will increase the need for maintenance. As noted above, however, these improvements will make the Area a more attractive destination for new commercial, residential and tourism-related development. REPORT ON ESTACADA DOWNTOWN RENEWAL PLAN City of Estacada January 11, 2007 11 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 improve and prevent the future occurrence of blighted areas as defined in ORS 457.010(1). IV. COMPLIANCE WITH STATUTORY LIMITS ON ASSESSED VALUE AND SIZE OF URBAN RENEWAL AREA State law limits the percentage of a municipality?s total assessed value and area that can be contained in an urban renewal area at the time of its establishment to 25% for municipalities under 50,000 in population. As noted above, the estimated total assessed value of the Area, including all real, personal, personal manufactured and utility properties, is $23,604,203 or 17.8% of the City of Estacada?s total assessed value. The estimated total acreage of the Area, including 36.7 acres of ROW, is 72.2 acres or 6.1% of the City?s total land area. Accordingly, the Area is well within the 25% assessed value and area limits contained in Chapter 457 of Oregon Revised Statutes. REPORT ON ESTACADA DOWNTOWN RENEWAL PLAN City of Estacada January 11, 2007 12 V. 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 called for in the Plan and conditions generally described in Section II of this Report and more particularly described below. A. Central Business District Streetscape Improvements The provision of streetscape improvements and pedestrian facilities in Estacada?s downtown/central business district is a project under the Plan. Relationship to Existing Conditions Under existing conditions, the central business district lacks a visually distinct unified identify and pedestrian facilities. The design and installation of a complete system of streetscape improvements and pedestrian amenities, including but not limited to landscaping features, street trees, street lighting and street furniture, will help create a unique character and sense of place that draws people to the central business district to shop, work and recreate. B. Highway 224 Gateway Improvements The design and construction of gateway improvements along Highway 224 that demarcate the entrance to Estacada?s downtown/central business district is a project under the Plan. Relationship to Existing Conditions Highway 224 is the primary entryway to Estacada and the downtown/central business district from locations outside of the City. Under current conditions, however, the stretch of Highway 224 that parallels downtown lacks the streetscape enhancements and landscaping features needed to attract tourists and out-of-town visitors to the Area. The provision of gateway improvements along Highway 224 will increase the visibility of the downtown/central business district to vehicular traffic traveling on Highway 224. These improvements will also help create a more visually distinct and welcoming environment that will facilitate increased retail and tourist activities in the Area. REPORT ON ESTACADA DOWNTOWN RENEWAL PLAN City of Estacada January 11, 2007 13 C. Area-Wide Street Pavement Improvements The provision of Area-wide street pavement improvements is a project under the Plan. Relationship to Existing Conditions Under existing conditions, substandard pavement conditions on several Area roadways limits multimodal traffic circulation and safety. Implementing Area- wide street pavement improvements will make the Area a safer and more accessible destination for a broad range of retail, employment and recreational activities. D. Public Parking The development of public parking facilities in the Area is a project under the Plan. Relationship to Existing Conditions The demand for public parking facilities is anticipated to increase as the Area redevelops and attracts new retail, office and tourist-oriented recreational uses. Providing public parking facilities that offer safe and convenient access to retail shops, professional offices and entertainment and recreational activities will benefit local businesses by making the Area a more attractive destination for tourists, out of town visitors and local residents. Further, this project will benefit downtown workers by creating additional off-site parking facilities close to employment areas. E. Water System Improvements The provision of water improvements throughout the Area, in accordance with the Water System Master Plan, is a project under the Plan. Relationship to Existing Conditions Under current conditions, most of the Area?s water distribution lines are at capacity. To accommodate higher intensity commercial and office uses and ensure the continued provision of adequate water services to Area businesses, replacing water lines throughout the Area will be needed. . REPORT ON ESTACADA DOWNTOWN RENEWAL PLAN City of Estacada January 11, 2007 14 F. Sewer System Improvements The provision of sewer improvements throughout the Area, in accordance with the Waste Water Plan, is a project under the Plan. Relationship to Existing Conditions The Area?s existing sanitary sewer facilities are at capacity and will not support projected long-term growth in employment density. Replacing existing sewer lines with higher capacity lines will ensure that the Area can continue to provide adequate sanitary sewer services to existing businesses and new commercial and office development that is anticipated to occur as the Area redevelops. G. Riverfront Improvements Improvements to existing pedestrian, bicycle and public recreational facilities in the riverfront area are a project under the Plan. Relationship to Existing Conditions Under existing conditions, the riverfront area lacks a comprehensive system of pedestrian, bicycle and public recreational facilities needed to attract and sustain tourism and tourist-oriented development as well as new, higher density residential development. Upgrading existing facilities, including the multi-use riverfront trail, and providing new public recreational facilities, which may include but are not limited to a river-walk, finger piers, non-motorized boat launches, bird watching facilities, picnicking sites and a covered pavilion, will make the riverfront area a more attractive destination for tourists and local residents. H. Fire Station Improvements Improvements to Estacada Rural Fire District?s Main Station No. 110 are a project under the Plan. Relationship to Existing Conditions The existing Main Station No. 110 will need to be upgraded or replaced with a new facility to continue to provide adequate fire and life safety services to residents and businesses. In particular, as the Area redevelops and residential and commercial densities increase, the demand for services is expected to grow. REPORT ON ESTACADA DOWNTOWN RENEWAL PLAN City of Estacada January 11, 2007 15 VI. THE ESTIMATED TOTAL COST OF EACH PROJECT AND THE SOURCES OF MONEYS TO PAY SUCH COSTS Table 3 below shows the estimated total cost of each project and the estimated sources of funds to address such costs, with capital costs in year-of-expenditure dollars (which take into account inflation). Table 4 provides a summary of total revenues by source. Table 3: Estimated Costs ($) Bond Issuance Costs 229,138 Materials & Services 1,347,298 Capital Projects Streetscape Improvements 1,085,000 Highway 224 Gateway Improvements 100,000 Area-Wide Street Pavement Improvements 250,000 Riverfront Improvements 325,000 Public Parking 675,000 Water Improvements 365,000 Sanitary Sewer Improvements 355,000 Fire Station Development Assistance 200,000 Assistance to Property Owners 1,330,000 Total Capital Projects 4,685,000 Contingency 315,500 Total Expenditures 6,576,937 With Ending Fund Balance 6,580,721 Table 4: Estimated Revenues ($) Long Term Tax Increment Debt Proceeds 5,610,330 Short Term Tax Increment Debt Proceeds 945,000 Interest 25,392 Total 6,580,721 REPORT ON ESTACADA DOWNTOWN RENEWAL PLAN City of Estacada January 11, 2007 16Table 5 shows costs, revenues and a schedule of urban renewal projects throughout the duration of the Plan. Table 5: Annual Costs and Revenues FY Ending June 3020082009201020112012201320142015201620172018RevenuesBeginning Balance0190,898121,60740,351124,88313,132308,72817,264260,1572,972197,986Long Term Tax Increment Debt Proceeds 271,76800202,2180840,2550649,3160670,2190Short Term Tax Increment Debt Proceeds0000000075,0000110,000Interest01,9091,2164041,2491313,0871732,602301,980Total271,768192,807122,823242,972126,132853,518311,815666,753337,758673,220309,966ExpendituresBond Issuance Costs10,871008,089033,610025,97337526,809550Materials & Services20,00021,20022,47250,00053,00056,18059,55163,12466,91170,92675,182Capital ProjectsStreetscape Improvements100,000100,000100,000100,000100,000Highway 224 Gateway Improvements100,000Area-Wide Street Pavement ImprovementsRiverfront Improvements75,00075,000175,000Public Parking50,000Water Improvements50,000Sanitary Sewer Improvements50,000Fire Station Development AssistanceAssistance to Property Owners50,00050,00060,00060,00060,000125,000125,000125,00075,00075,00075,000Total Capital ProjectsContingency0000030,00010,00017,50017,50027,5005,000Total Expenditures80,87171,20082,472118,089113,000544,790294,551406,597334,786475,235205,732 REPORT ON ESTACADA DOWNTOWN RENEWAL PLAN City of Estacada January 11, 2007 17 Table 5 (continued) FY Ending June 3020192020202120222023202420252026RevenuesBeginning Balance104,234279,62394,895185,77947,147412,905109,76326,865Long Term Tax Increment Debt Proceeds 657,8530588,2580772,02800958,416Short Term Tax Increment Debt Proceeds0110,00050,000115,00050,000125,000190,000120,000Interest1,0422,7969491,8584714,1291,098269Total763,130392,419734,102302,637869,646542,034300,8601,105,549ExpendituresBond Issuance Costs26,31455023,78057531,13162595038,937Materials & Services79,69284,47489,54294,915100,610106,646113,045119,828Capital ProjectsStreetscape Improvements100,000100,00050,000100,000100,000135,000Highway 224 Gateway ImprovementsArea-Wide Street Pavement Improvements50,00050,00050,00050,00050,000Riverfront ImprovementsPublic Parking75,00075,000100,000375,000Water Improvements50,00050,00050,00050,00050,00065,000Sanitary Sewer Improvements50,00050,00050,00050,00050,00055,000Fire Station Development Assistance200,000Assistance to Property Owners75,00075,00050,00050,00050,00050,00050,00050,000Total Capital ProjectsContingency27,50012,50035,00010,00025,00025,00010,00063,000Total Expenditures483,507297,524548,323255,490456,741432,271273,9951,101,765 REPORT ON ESTACADA DOWNTOWN RENEWAL PLAN City of Estacada January 11, 2007 18 Table 6: Tax Increment Revenues, Debt Service and Debt Service Reserves FY Ending June 30200820092010201120122013201420152016201720182019RevenuesBeginning Balance02716,78517,89760,107136,189169,096244,230294,439310,870378,341381,140Property Tax Current Year27,07532,39956,66586,579118,753157,118197,389234,745273,881314,870357,786393,517 Prior Year08551,0231,7892,7343,7504,9626,2337,4138,6499,94311,299Interest2713356451,0631,8162,9713,7144,8525,7576,3447,4617,860Transfer From Project FundTotal27,34633,86065,119107,329183,410300,028375,162490,060581,491640,733753,531793,814ExpendituresDebt Service - Long Term BondsBond 127,07527,07527,07527,07527,07527,07527,07527,07527,07527,07527,07527,075Bond 220,14620,14620,14620,14620,14620,14620,14620,14620,14620,146Bond 383,71183,71183,71183,71183,71183,71183,711Bond 464,68964,68964,68964,68964,689Bond 566,77166,77166,771Bond 665,539Bond 7Bond 8Bond 9Total Debt Service - Long Term Bonds27,07527,07547,22147,22147,221130,932130,932195,621195,621262,391262,391327,931Bond Reserve47,22147,221130,932130,932195,621195,621262,391262,391327,931Short Term Bonds075,000110,000Total Expenditures27,07527,07547,22194,44294,442261,864261,864391,241466,241524,783634,783655,861Ending Balance2716,78517,89712,88688,96838,164113,29898,819115,249115,950118,748137,953 REPORT ON ESTACADA DOWNTOWN RENEWAL PLAN City of Estacada January 11, 2007 19 Table 6 (continued) FY Ending June 30202020212022202320242025202620272028202920302031RevenuesBeginning Balance465,884480,270530,759548,472612,230633,388620,458633,759799,9901,083,6331,402,9961,824,045Property Tax Current Year430,799463,843494,205523,650554,167583,599614,054645,564676,291707,878740,350773,731 Prior Year12,42713,60414,64815,60616,53617,50018,42919,39120,38621,35722,35423,379Interest9,0919,57710,39610,87711,82912,34512,52912,98714,96718,12921,65726,212Transfer From Project FundTotal918,201967,2951,050,0081,098,6051,194,7631,246,8321,265,4701,311,7011,511,6331,830,9962,187,3572,647,366ExpendituresDebt Service - Long Term BondsBond 127,07527,07527,075Bond 220,14620,14620,14620,14620,14620,146Bond 383,71183,71183,71183,71183,71183,71183,71183,711Bond 464,68964,68964,68964,68964,68964,68964,68964,68964,68964,689Bond 566,77166,77166,77166,77166,77166,77166,77166,77166,77166,77166,77166,771Bond 665,53965,53965,53965,53965,53965,53965,53965,53965,53965,53965,53965,539Bond 758,60658,60658,60658,60658,60658,60658,60658,60658,60658,60658,606Bond 876,91476,91476,91476,91476,91476,91476,91476,91476,914Bond 995,48395,48395,48395,48395,48395,483Total Debt Service - Long Term Bonds327,931386,536386,536436,375436,375436,375511,711511,711428,000428,000363,312363,312Bond Reserve327,931386,536359,461436,375436,375416,229511,711428,000428,000363,312363,312296,541Short Term Bonds110,00050,000115,00050,000125,000190,000120,000Total Expenditures765,861823,072860,997922,749997,7491,042,6031,143,423939,712856,001791,312726,624659,853Ending Balance152,340144,223189,011175,856197,013204,229122,047371,989655,6331,039,6841,460,7331,987,514 REPORT ON ESTACADA DOWNTOWN RENEWAL PLAN City of Estacada January 11, 2007 20 Table 7: Projected Incremental Assessed Value and Tax Rates FY Ending June 30200820092010201120122013201420152016201720182019Appreciation Growth %2.8%2.8%2.8%2.8%2.8%2.8%2.8%2.8%2.8%2.8%2.8%2.8%Appreciation Growth $602,152624,953654,690710,839779,432851,406937,2311,027,3191,110,8841,198,4331,290,1271,386,133New Development Assessed Value212,180437,0911,350,6111,738,9111,791,0782,213,7732,280,1861,957,1602,015,8752,076,3512,138,6411,468,534Total Assessed Value22,319,75423,381,79725,387,09827,836,84830,407,35833,472,53736,689,95539,674,43342,801,19246,075,97649,504,74552,359,411Certified ("Frozen") Base Value20,919,67120,919,67120,919,67120,919,67120,919,67120,919,67120,919,67120,919,67120,919,67120,919,67120,919,67120,919,671Incremental Assessed Value1,985,8332,462,1264,467,4276,917,1779,487,68712,552,86615,770,28418,754,76221,881,52125,156,30528,585,07431,439,740Consolidated Billing Rate14.351713.851713.351713.175313.175313.175313.175313.175313.175313.175313.175313.1753Tax Increment Revenues28,50034,10559,64891,136125,003165,388207,778247,100288,296331,442376,617414,228 FY Ending June 30202020212022202320242025202620272028202920302031Appreciation Growth %2.8%2.8%2.8%2.8%2.8%2.8%2.8%2.8%2.8%2.8%2.8%2.8%Appreciation Growth $1,466,0641,549,4661,623,3871,691,3081,757,1761,825,4441,891,2861,959,4142,029,9042,098,6412,169,3032,241,943New Development Assessed Value1,512,5901,090,577802,353661,139680,973526,052541,833558,088425,000425,000425,000425,000Total Assessed Value55,338,06457,978,10760,403,84862,756,29565,194,44467,545,94069,979,06072,496,56274,951,46677,475,10780,069,41082,736,353Certified ("Frozen") Base Value20,919,67120,919,67120,919,67120,919,67120,919,67120,919,67120,919,67120,919,67120,919,67120,919,67120,919,67120,919,671Incremental Assessed Value34,418,39337,058,43639,484,17741,836,62444,274,77346,626,26949,059,38951,576,89154,031,79556,555,43659,149,73961,816,682Consolidated Billing Rate13.175313.175313.175313.175313.175313.175313.175313.175313.175313.175313.175313.1753Tax Increment Revenues453,473488,256520,216551,210583,333614,315646,372679,541711,885745,135779,316814,453 REPORT ON ESTACADA DOWNTOWN RENEWAL PLAN City of Estacada January 11, 2007 21 VII. THE ANTICIPATED COMPLETION DATE FOR EACH PROJECT Table 5 shows the anticipated completion dates of the urban renewal projects. VIII. THE ESTIMATED AMOUNT OF TAX INCREMENT REVENUES REQUIRED AND THE ANTICIPATED YEAR IN WHICH INDEBTEDNESS WILL BE RETIRED Table 6 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 2030/31. The estimated amount of tax increment revenues required to service debt is $9,956,745. IX. FINANCIAL ANALYSIS OF THE PLAN The estimated tax increment revenues of $9,956,745 are based on projections of the assessed value of development and appreciation of existing property within the Area. Table 7 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 6. REPORT ON ESTACADA DOWNTOWN RENEWAL PLAN City of Estacada January 11, 2007 22 X. IMPACT OF 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. (Very small increases in property tax rates for General Obligation bonds will occur as a result of tax increment financing.) 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 much longer to occur, would be less extensive and would have lower assessed values. For the analysis below, it was projected that generally the value of new development within the Area without the Plan would be 25% of the value with the Plan. Table 8 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 from FY 2008/2009 through FY 2031/32 in current dollars. No impacts are shown for the Estacada School District or the Clackamas Educational Service District because under the current education financing system, property tax revenues foregone by these districts would be offset by additional revenues from the State School Fund. Table 8: Revenues Foregone FY 2008/2009 ? 2031/2032 Taxing District Levy Present Value Total Revenues Foregone Present Value Revenues Foregone Average/Year Present Value Average Permanent Rate Levy Average % of Levy Clackamas County Rural 805,207 35,009 52,120,43 5 0.1% City of Estacada 715,478 31,108 617,820 5.0% Estacada Fire 650,014 28,261 2,071,643 1.4% Port of Portland 18,963 824 2,665,583 0.0% Vector Control 1,758 76 247,165 0.0% Clackamas CC 151,000 6,565 22,072,37 1 0.0% Estacada Cemetery District 16,014 696 120,240 0.6% REPORT ON ESTACADA DOWNTOWN RENEWAL PLAN City of Estacada January 11, 2007 23 Table 9 shows the increases in permanent rate levy revenues that would occur in the years after termination of the tax increment financing, from FY 2032/33 through 2040/2041, when the projected additional value in the Area would result in a ?break even? point. During FY 2040/2041 the value in current dollars of the revenues foregone would be exceeded by the value in current dollars of the additional revenues gained. Table 9: Total Revenues Gained, FY 2032/2033 ? FY 2040/2041 Revenues Gained County Rural 868,360 City of Estacada 771,594 Estacada Fire 700,995 Port of Portland 20,450 Vector Control 1,896 Clackamas CC 162,843 Estacada Cemetery District 17,270 REPORT ON ESTACADA DOWNTOWN RENEWAL PLAN City of Estacada January 11, 2007 24 XI. RELOCATION METHODS The Plan authorizes the acquisition of property by willing sellers only. Relocation benefits must be paid for any public acquisition, whether the acquisition is voluntary or involuntary. Therefore, before the Agency acquires any property, the Agency will adopt relocation regulations.