HomeMy WebLinkAboutItem 03 Council Ratification of SEDA Plan Amendment
AGENDA ITEM SUMMARY Meeting Date: 6/24/2019
Meeting Type: Regular Meeting
Staff Contact/Dept.: Mary Bridget Smith, City Attorney’s Office
Staff Phone No: 541-744-4061
Estimated Time: 5 Minutes S P R I N G F I E L D
C I T Y C O U N C I L
Council Goals: Encourage Economic
Development and Revitalization through Community Partnerships ITEM TITLE: RATIFICATION OF GLENWOOD URBAN RENEWAL PLAN AMENDMENT
TO UPDATE FINANCIAL ANALYSIS OF THE PLAN
ACTION REQUESTED: Approve/Not Approve the following Resolution: A Resolution Ratifying an Amendment to the Glenwood Urban Renewal Plan to Update the Financial
Analysis of the Plan.
ISSUE STATEMENT: The Glenwood Urban Renewal Plan (Plan) adopted in 2004 projected tax increment revenue over a 20-year period. SEDA updated the financial analysis of the Plan to
more accurately reflect the Plan’s feasibility and duration. SEDA approved the
Plan amendment updating the financial analysis of the Plan on June 10, 2019 and Council is being asked to ratify that amendment.
ATTACHMENTS: Attachment 1: Resolution
DISCUSSION/
FINANCIAL IMPACT:
A financial analysis is a statutory requirement of an urban renewal plan. In 2018,
SEDA updated the financial analysis of the Plan to better understand the Plan’s feasibility and duration. This issue came to light when SEDA’s bond counsel determined that a sentence in the Summary section 2004 ballot title allocating taxes
to the Plan could be interpreted to mean that the plan should sunset in 2025. Bond Counsel is critical to SEDA being able to borrow against the Glenwood Urban
Renewal District’s tax increment because a significant portion of her role is to
provide bond investors and banks the required validity and tax opinions for them to be willing to lend to agencies like SEDA.
The updated financial analysis is built upon realistic and conservative assumptions about the amount of land in the Plan area that will be developed, its real market
value, the mix between residential and commercial uses and its location within the Plan area. The updated financial analysis estimates that during its duration the Plan will complete 2 more borrowings and estimates that SEDA will need to continue to
collect increment revenue to incur and repay the maximum indebtedness of $32,860,000 through 2035.
Section 900D of the Plan allows SEDA to amend the Plan by resolution for amendments that “clarify language, add graphic exhibits, make minor modifications
in the scope or location of improvements authorized by this Plan, or other such
modifications which do not change the basic planning or engineering principles of the Plan.” If Council ratifies SEDA’s plan amendment, both governing bodies may
bring a statutory Validation action in Lane County Circuit Court later in 2019. A
Validation proceeding allows a municipality to bring a decision such as the Plan amendment for updated financial analysis to court for examination and judgment of
the municipalities decision. If the City and SEDA are successful in this matter at
Lane County Circuit Court, the issue will bond counsel will be resolved and the Plan will better reflect the Plan’s financial feasibility and duration.
CITY OF SPRINGFIELD, OREGON
RESOLUTION NO. ___________
A RESOLUTION RATIFYING AN AMENDMENT TO THE GLENWOOD URBAN RENEWAL PLAN
TO UPDATE THE FINANCIAL ANALYSIS OF THE PLAN
WHEREAS, in November 2004, the City of Springfield voters approved formation of the Glenwood
Urban Renewal District;
WHEREAS, the City Council approved the Glenwood Urban Renewal Plan (Plan) by Ordinance 6103 on
December 6, 2004 and transferred authority to exercise the urban renewal powers to the Springfield
Economic Development Agency (SEDA) Board of Directors, under Ordinance 6107 on December 6,
2004;
WHEREAS, consistent with ORS 457.085, the Plan contains a financial analysis to determine the
feasibility of the Plan and a fiscal impact statement that estimates the impact of the tax increment
financing upon all affected taxing entities in the urban renewal area, both until and after the
indebtedness is repaid;
WHEREAS, in 2018, SEDA completed an updated financial analysis of the Plan to determine whether
the performance of the Plan has been consistent with the initial financial analysis and projections of the
impact of tax increment financing on the Plan’s affected taxing entities;
WHEREAS, Section 900D of the Plan provides that amendments that clarify language, add graphic
exhibits, make minor modifications in the scope or location of improvements authorized by the Plan or
other such modifications which do not change the basic planning or engineering principles of the Plan
may be approved by SEDA in resolution form;
WHEREAS, on June 10, 2019, SEDA approved the Plan amendment updating the financial analysis of
the Plan which is attached as Exhibit A to this Resolution; and
WHEREAS, the City Council has reviewed and evaluated the Plan amendment to update the financial
analysis of the Plan,
NOW, THEREFORE, BE IT RESOLVED BY THE COMMON COUNCIL OF THE CITY OF SPRINGFIELD:
Section 1: The City Council ratifies and approves the Glenwood Urban Renewal Plan
amendment to update the Plan’s financial analysis as described in the attached Exhibit A.
Section 2: This Resolution will take effect upon adoption by the Council and approval by the
Mayor.
ADOPTED by the Common Council of the City of Springfield this ___ day of June, 2019, by a
vote of _____ for and ____ against.
_______________________
Mayor
ATTEST:
__________________________
City Recorder
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