Leveton Tax Increment Plan 11th Amendment

WORK SESSION

WASHINGTON COUNTY BOARD OF COMMISSIONERS

Session Date:

August 03, 2021

Land Use & Transportation

Presented by:

Stephen Roberts, Director

Chris Deffebach, Senior Policy Analyst

Title of Topic: City of Tualatin Urban Renewal Plan Proposal

ATTACHMENTS:

Tualatin URA Proposal - Presentation

Tualatin URA Proposal SWBC Letter REVISED Tualatin URA Proposal - Tax Amendment Letter

PURPOSE & DESIRED OUTCOME:

Mayor Bubenik and the City of Tualatin (City) representatives will brief your Board on a proposed urban renewal area in the Southwest and Basalt Creek areas, and on a proposed substantial

amendment to the existing Leveton Urban Renewal Area to increase the acreage and add the Herman Road improvement project. The City representatives will be available to answer questions on both proposals.

On Aug. 17, 2021 your Board will be asked to consider adopting a resolution to approve the new Urban Renewal Plan (Plan) for the Southwest and Basalt Creek areas. Your approval is required due to the inclusion of unincorporated properties in the Urban Renewal District, pursuant to ORS 457.105. The Leveton amendment does not require Board approval.

POLICY QUESTIONS FOR THE BOARD TO CONSIDER:

• Does the Board support adoption of the proposed Southwest and Basalt Creek Development Urban Renewal Plan?

• Is additional information needed to help the Board make an informed decision?

• Does your Board want to provide input to the City on the Leveton Plan amendment?

SUMMARY OF TOPIC:

Southwest and Basalt Creek Development Area Plan

After completing an Urban Renewal Feasibility Study in 2020, the Tualatin City Council directed City staff to prepare an urban renewal plan for the Southwest and Basalt Creek study areas. They also appointed a task force to provide input on the boundary and projects, and to review financial

documents. The proposed Urban Renewal Area (URA) is 717.3 acres (646.5 acres of land in tax lots and

70.8 acres of public right-of-way). The proposed URA is a result of, and continuation of, past work

identified in both the Southwest Industrial Concept Plan (adopted by the Tualatin City Council in 2005)

and the Basalt Creek Concept Plan (adopted by Council in 2018). The Southwest Industrial Concept subarea includes parcels in the vicinity of 124th Avenue and Tualatin-Sherwood Road. The southern portion of the study area includes the Basalt Creek Concept Plan Area. Washington County staff participated in the Southwest Industrial Concept Plan and the Basalt Creek Concept Plan processes.

The projects in the proposed Urban Renewal Plan are aligned with the Tualatin City Council’s vision and priorities of providing for a thriving and diversified economy, as well as an efficient, accessible,

innovative, sustainable and connected transportation system, including neighborhoods with housing that is available for all. Proposed Plan projects include transportation, sewer and water infrastructure to enable future development. Basalt Creek Parkway Extension (between Grahams Ferry and Boones Ferry roads), is not identified as a project that would be eligible for urban renewal funds. The parkway is the future boundary between the cities of Tualatin and Wilsonville. The County has taken the lead on identifying funding, designing and constructing the parkway. Wilsonville has committed approximately

$500,000 toward the project’s design and development.

It is anticipated that the Southwest and Basalt Creek Development Area Plan (Plan) will take thirty years of tax increment collections to implement. The maximum amount of indebtedness that may be issued for the Plan is $53,200,000. Maximum Indebtedness is the total amount of funds that may be spent on programs, projects and administration over the life of the Plan. It does not include interest paid on debt. The impact of Maximum Indebtedness from FYE 2023 through FYE 2052 for Washington County is estimated at $12,686,296.

Public input opportunities were provided at four task force meetings and the Tualatin Urban Renewal Agency meeting on June 28, 2021.The City is currently hosting a Virtual Open House and will present to the City’s Citizen Involvement Organizations and Tualatin Chamber of Commerce. The Tualatin City Council will hold a public hearing on Aug. 9, 2021. The City Council public hearing will be noticed to all utility customers of the City, with mailed notice to the owners of the unincorporated properties that would be included in the Plan, and public notice will be published in the Tigard-Tualatin Times.

The City is requesting Board approval of the Plan, due to the inclusion of the unincorporated properties, prior to the City Council’s planned ordinance adoption on Aug. 23, 2021. Board consideration of the Resolution is scheduled for Aug. 17, 2021.

Leveton Tax Increment Plan 11th Amendment

The City is also considering a substantial amendment to the existing Leveton Tax Increment Plan to add acreage to the existing Urban Renewal Area and to add the Herman Road improvement project as an eligible expenditure. ORS 457.220 requires the City to offer an opportunity for all taxing districts to comment on substantial amendments in the same manner as conducted for the original plan. Your Board is not required to take any action on this substantial amendment.

The Leveton Tax Increment District no longer impacts taxing districts, as it no longer takes division of

tax proceeds. There is no proposed increase to the maximum indebtedness of the Tax Increment

Finance (TIF) Plan; the Herman Road project will be accomplished with existing resources.

With input from the public and a citywide project charter team, the City has recommended a conceptual design for Herman Road and is ready to advance the project to preliminary engineering, final design and construction phases.

The County has previously supported the Herman Road project with MSTIP Opportunity Fund as match for the City’s application to Metro for regional flexible funds. Your Board later approved an

intergovernmental agreement with the City to complete a fund exchange in which the County provided

local funds to Tualatin in exchange for federal funds awarded by Metro to Tualatin for the project.

Proposed

Urban Renewal Efforts

PURPOSE

2

The City of Tualatin is required by ORS 457 to provide 45 days of consult and confer with overlapping taxing districts for proposed urban renewal plans. Due to the inclusion of unincorporated areas into this proposed urban renewal area, the Board must take official action before plan addition can occur.

PROPOSED SOUTHWEST AND BASALT CREEK

DEVELOPMENT AREA

Does the Board wish to provide input on the proposed urban renewal plan?

Does the Board support the adoption of the proposed urban renewal plan with the inclusion of unincorporated areas?

-- or --

Does the Board need additional information regarding this

PURPOSE

PROPOSED SOUTHWEST AND BASALT CREEK

DEVELOPMENT AREA

TUALATIN’S URA BACKGROUND

LEVETON TAX

INCREMENT DISTRICT CENTRAL URBAN RENEWAL DISTRICT

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BACKGROUND – LEVETON TAX INCREMENT DISTRICT

- Established 1985

- Over 200 acres of unincorporated greenfield

- Prioritize Four Goals:

- 1: Industrial Development - 2: Environment

- 3: Improved Traffic and Transportation

- 4: Provide Public Utilities

- Original Assessed Valuation: $3.5 million

SUCCESS – LEVETON TAX INCREMENT

DISTRICT

- Ceased Collection 2010 - $251 Million AV Increase - Completed 14/20 Projects - Notable Projects Include:

- Herman Road Improvements - Street Construction

- 118 ^th - Leveton - 124 ^th - 50+ Businesses - 9,000 + jobs

TUALATIN DEVELOPMENT COMMISSION6

BACKGROUND – CENTRAL URBAN RENEWAL

- Established 1975

- Over 300 acres of redevelopment - Converted Hervin Food

Company

- Prioritize Eleven Goals:

- 1: Commercial Development - 2: Housing Development

- 6: Pedestrian and Bikeways - 11: Design Considerations

- Original Assessed Valuation: $14

million

• 327 City Acres Redeveloped

• 41 / 60 projects completed

• $180M increase in valuation

• Notable Achievements

• Tualatin Commons $30M+

• Tualatin-Sherwood Bypass

• Nyberg/I-5 Interchange

• Core Area Parking

• Tualatin City Library

• Community Pride

The Success of Central Urban Renewal

TUALATIN DEVELOPMENT COMMISSION

SOUTHWEST AND BASALT CREEK DEVELOPMENT AREA

Over 15 years of work have gone into identify land use and infrastructure needs in the proposed urban renewal area.

2005 2014 2019 2019

Phased Timeline

ARE WE

HERE

SOUTHWEST AND BASALT CREEK DEVELOPMENT AREA OVERVIEW

Project Goal: To develop an urban renewal plan to finance and implement identified projects from area development plans – Basalt Creek Concept Plan, SW Tualatin Concept Plan, Transportation System Plan, and Tualatin|2040.

Stakeholder # 1

Stakeholder # 2 & # 3

AREA TASK FORCE

Seven member task force was established by the Tualatin Development Commission by resolution to provide recommend the proposed boundary and projects, and to review the proposed plan financials.

They met over four meetings beginning in March.

The proposed boundary and projects were voted and recommended by the task force.

Task Force Members:

• Janelle Thompson, City of Tualatin Planning Commission

• Cassandra Ulven, Tualatin Valley Fire and Rescue

• Grace Lucini, Property Owner

• Christen Sacco, City of Tualatin City Council

• Theresa Haskins, Property Owner Representative (PGE)

• Jilian Felton, Property Owner Representative (Community Partners for Affordable Housing)

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Tualatin Development Commission

On June 28, 2021 the Tualatin Development Commission approved Resolution 628-21 formally approving the public review process of the proposed Southwest and Basalt Creek Development Area Plan. This

review period begins a 45-day consult and confer with overlapping tax districts, as well as a public comment period.

Tualatin Planning Commission

On July 15, 2021 , the Tualatin Planning Commission found that the Southwest and Basalt Creek

Development Plan conformed with the Tualatin Development Code and Tualatin Comprehensive Plan.

Their recommendation will be considered by the Tualatin City Council on August 9, 2021.

PLAN GOALS

Goal 1: Public Involvement

Goal 2: Employment Land Development Goal 3: Transportation Infrastructure

Goal 4: Utility Infrastructure

Goal 5: Developer Assistance and Incentives

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PROPOSED AREA

PROPOSED AREA – ZONING DESIGNATIONS

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PROPOSED AREA – ACREAGE AND AV

Acreage Assessed Value Southwest and Basalt Creek

Development Area 717.3 $99,593,238

City of Tualatin 5,240 $4,943,725,336

% of City 13.68% 2.01%

PROPOSED AREA – PROJECTS

Project Title Constant FYE 2021 Year of Expenditure Project Cost TRANSPORTATION

• Blake Street Extension 1,500,000 3,234,900

• 124th/Future Blake Street

Signal 656,000 992,266

• Tonquin Trail 2,343,000 4,762,850

SEWER

• Tonquin Loop Sewer 657,000 936,685

• Basalt Creek Gravity Sewer 3,838,000 6,533,811

• SW Tualatin Gravity Sewer 418,000 732,963

WATER SYSTEM UPSIZING 12,000,000 22,034,075

PROPERTY MITIGATION 2,965,223 6,128,732

SMALL BUSINESS GRANTS 1,000,000 1,915,520

FINANCING FEES 199,280 284,000

ADMINISTRATION 3,450,000 5,804,346

Total Expenditures $29,026,503 $53,360,148

PROPOSED PLAN TERMS

- Maximum Indebtedness:

$53,200,000

- 30 Year Plan Term

- 6% Projected AV Growth

Average AV from New

Construction $4,700,000

Total Net TIF $60,700,000

Maximum Indebtedness $53,200,000

Capacity (2021$) $29,000,000

Years 1-5 $600,000

Years 6-10 $4,900,000

Years 11-15 $4,900,000

Years 16-20 $5,100,000

PROJECTED TIF REVENUE

PROJECTED IMPACT – WASHINGTON COUNTY

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$- $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000

2023 2028 2033 2038 2043 2048

Over the proposed

plan term of 30 years, the total projected

impact for Washington

County is $12,686,296.

NEXT STEPS – SOUTHWEST AND BASALT CREEK DEVELOPMENT AREA

- Currently – 45 Day Consult and Confer

- August 3, 2021 – Washington County Board of Commissioners Work Session - August 9, 2021 – Tualatin City Council Plan Ordinance Public Hearing

- August 17, 2021 – Washington County BoC Consideration for Approval

- August 23, 2021 – Tualatin City Council Plan Ordinance Adoption Consideration

QUESTIONS OR DISCUSSION?

P ^ROPOSED 11 ^TH A MENDMENT TO THE

Leveton Tax Increment Plan

PURPOSE

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The City of Tualatin is required by ORS 457 and the Leveton Tax Increment Plan to provide opportunity for input of overlapping taxing districts for proposed substantial amendment to existing urban renewal plans.

PROPOSED 11 ^TH AMENDMENT – LEVETON TAX INCREMENT PLAN

QUESTION FOR THE BOARD

Would the Board like to provide input or comment on the proposed amendment to the Leveton Tax Increment Plan to add additional

acreage and the Herman Road Extension to the plan project list?

PROPOSED 11 ^TH AMENDMENT – LEVETON TAX INCREMENT PLAN

• No longer taking division of tax revenue

• Changes have no financial impact on taxing districts

CHANGES

1. EXPAND THE DISTRICT 2. ADD THE HERMAN ROAD EXTENSION PROJECT

- Add 7.88 Acres

- No maximum indebtedness Increase - Allocate remaining funds to project

QUESTIONS OR DISCUSSION?

June 30, 2021 Washington County Tanya Ange

County Administrator 155 N. First Ave, Ste. 300 Hillsboro, OR 97124

RE: Southwest and Basalt Creek Development Area Plan Letter of Intent Dear Washington County,

The Tualatin Development Commission (TDC) is notifying your organization that it is

considering the adoption of the Southwest and Basalt Creek Development Area Plan (Plan). The boundary of the Plan Area (Area) is a result of past work under the Southwest Industrial Concept Plan (adopted in 2005) and the Basalt Creek Concept Plan (adopted in 2019). The northern Area includes the Southwest Industrial Concept Area with parcels around 124th Ave and areas along Tualatin-Sherwood Road. The southern portion of the Area includes the Basalt Creek Concept Plan Area with the boundary extending from I-5 westward to the Tonquin and 124^th Avenues.

The Area has key employment lands not only for Tualatin but for the Metro region. Future land development will only occur with the necessary infrastructure to support it. The Area consists of approximately 717.3 total acres: 646.51 acres of land in tax lots and 70.79 acres of public rights- of-way and is shown in Figure 1 of the attached Plan. The majority of projects identified in the Plan are infrastructure projects to provide capacity for future development in the Area.

It is anticipated that the Plan will take thirty years of tax increment collections to implement. The maximum amount of indebtedness that may be issued for the Plan is not to exceed $53,200,000 (Fifty Three Million Two Hundred Thousand dollars). Detailed financial analysis is in the Report accompanying the Tualatin Urban Renewal Plan (Report). The Plan includes a 30-year duration provision which is not a requirement of ORS 457, but is in response to overlapping taxing districts’ input to have a set time limit on the use of urban renewal in this Area. The projected impacts to the overlapping taxing districts are shown in Exhibit A.

In addition to the past planning and public input for the Area, the TDC formed an Urban Renewal Task Force which was comprised of representatives from the Tualatin City Council, Tualatin Planning Commission, Tualatin Valley Fire and Rescue (TVF&R), and property owners. The Task Force provided input on the boundary and proposed projects, and reviewed finances for the urban renewal area. Additional opportunities for public input were provided at a Basalt Creek Neighborhood Forum on May 17, 2021 and by the TDC on June 28, 2021. Upcoming public input opportunities will be available through an online open house during the month of July 2021, the Tualatin Planning Commission meeting on July 15, 2021 and the Tualatin City Council public hearing on August 9, 2021. The City Council public hearing will be noticed to all utiliy customers

Southwest and Basalt Creek Development Area Plan 6/30/2021

Page 2 of 2

in Tualatin and mailed individually to property owners who are inside the urban renewal area boundary outside of the municipal limits.

Pursuant to ORS 457, the TDC shall initiate the public review process for all proposed urban renewal plans and substantial plan amendments. Initiation of the public review processes for the attached draft Plan and accompanying Report require the following actions to be taken:

• Transmitting the proposed Plan and Report to the taxing districts.

• Tualatin Planning Commission will hold a hearing on July 15 for their review of the draft Plan’s conformance to the Tualatin Development Code.

• The Washington County Board of Commissioners will be briefed on the draft Plan and Report on August 3. They will consider approval of the Plan on August 17, 2021 as there are unincorporated properties within the Area.

• Tualatin City Council will hold a hearing on August 9, 2021 to consider adopting the draft Plan Amendment and Report. Staff will send out a notice advertising this hearing to all Tualatin postal patrons pursuant to ORS 457.

• Tualatin City Council will vote on the ordinance for plan adoption on August 23, 2021.

Your organization has 45 days to submit written recommendations on this Plan (August 14, 2021). Any written correspondence will be shared with the Tualatin City Council. If you have any questions, please contact Jonathan Taylor, Economic Development Manager, 503-692-3049 or [email protected]

There are three linked exhibits to this letter, Taxing District Impacts (Exhibit A), the draft Plan (Exhibit B) and the Report Accompanying the Plan (Exhibit C).

Sincerely,

Sherilyn Lombos

Administrator – Tualatin Development Commission City Manager - City of Tualatin

Exhibits:

Exhibit A Taxing District Impacts

Exhibit B Southwest and Basalt Creek Development Area Plan

Exhibit C Report on Southwest and Basalt Creek Development Area Plan

June 30, 2021

Washington County Tanya Ange

County Administrator 055 N. First Avenue, Ste 300 Hillsboro, OR 97124

RE: Leveton Tax Increment Plan 11^th Amendment Letter of Intent

Dear Washington County,

The Tualatin Development Commission (TDC) is notifying your organization that it is

considering a substantial amendment to the Leveton Tax Increment Plan (Plan) to add additional acreage and the Herman Road Extension project. This project will widen Herman Road from Tualatin Road to Teton Road, improve bike lanes, sidewalks, and transit stops along Herman Road between the employment district, neighborhoods, and downtown. This project will improve safety and mobility for all roadway users along the Herman Road corridor where currently, bicycles, pedestrians, automobiles, transit, and trucks share two 12-foot vehicle travel lanes because there are no bike lanes or sidewalks. Total acreage to be added is 7.88 acres.

According to the existing Plan (adopted in 1985), these changes require a substantial amendment.

The Leveton Tax Increment District (District) is no longer taking division of tax proceeds and no longer impacts taxing districts. There is no proposed increase to the maximum indebtedness of the Plan as existing resources will be allocated to this project. Despite no impact on taxing districts, the statute that governs urban renewal requires notification and consult and confer with the taxing districts for a substantial amendment. This letter is that official notification and starts the consult and confer process.

There are two exhibits to this letter, the draft Plan Amendment (Exhibit A) and the Report Accompanying the Leveton Tax Increment District Plan Amendment (Exhibit B). The Plan Amendment shows the verbiage changes to the existing Plan, while the Report gives technical information on blight conditions and the financial feasibility of the MI increase.

Pursuant to ORS 457, the TDC shall initiate the public review process for all proposed urban renewal plans and substantial plan amendments. Initiation of the public review processes for the draft Plan Amendment and accompanying Report require the following actions to be taken:

 Transmitting the proposed Amendment and Report to the taxing districts.

 The Tualatin Planning Commission will hold a hearing on July 15 for their review of the draft Amendment’s conformance to the Tualatin Development Code.

 The Washington County Board of Commissioners will be briefed on the draft Plan Amendment and report on August 3.

Proposed 11^th Amendment to the Leveton Tax Increment Plan 6/30/2021

Page 2 of 2

 Tualatin City Council will hold a hearing on August 9, 2021 to consider adopting the draft Plan Amendment and Report. Staff will send out a notice advertising this hearing to all Tualatin utility customers pursuant to ORS 457.

You have 45 days to submit written recommendations on this amendment (by August 14, 2021).

Any written correspondence will be shared with the Tualatin City Council. If you have any questions, please contact Jonathan Taylor, Economic Development Manager, 503-692-3049 or [email protected]

Sincerely,

Sherilyn Lombos

Administrator (Tualatin Development Commission) City Manager (City of Tualatin)

Exhibits:

Exhibit A Plan Amendment

Exhibit B Report on Plan Amendment