What effect does urban renewal have on the other governments in the area?

While an urban renewal district is in effect, the city, county, and school districts continue to receive taxes based on the property value in the district when it was created.  Any tax revenue on growth in property values above that “frozen base” is redirected to projects within the urban renewal district.  For instance, in the Downtown District, this “frozen base” is about $31 million, and the City receives about $200,000 of taxes each year on the frozen base.  

If the Downtown Urban Renewal District stopped its collection of tax increment revenue, the City’s General Fund would receive approximately 50% of what the Downtown District collects ($1.3 million per year as of FY22). Lane County would receive approximately 9% ($235,000 per year as of FY22).  Approximately 34% ($880,000 per year as of FY22) would be collected on behalf of School District 4J, although it is important to note that the impact to 4J’s overall budget would be negative. This is due to State funding mechanisms for education and local properties that are in ‘compression’ related to State laws regarding property tax limits. If the Downtown Urban Renewal District ceases to collect tax increment revenue, the net impact to School District 4J would be an estimated decrease of $150,000 per year as of FY22.

Show All Answers

1. What is urban renewal?
2. Where is urban renewal used in Eugene?
3. What has been done in the Downtown District with urban renewal funds?
4. How does urban renewal work?
5. Does urban renewal raise property taxes?
6. How has urban renewal evolved?
7. Who benefits from urban renewal?
8. Where do urban renewal funds come from?
9. What effect does urban renewal have on the other governments in the area?
10. How will urban renewal impact the school district?
11. Who makes the decisions about urban renewal projects and spending?
12. Why is the City considering an amendment to the Downtown Urban Renewal Area?
13. How will the money be spent if the Downtown Urban Renewal Plan is amended?
14. How much money is there to spend in the Downtown District?
15. What is the City's next step related to downtown and urban renewal?