HomeMy WebLinkAboutItem 01 Choices for Establishing a Downtown Urban Renewal District
AGENDA ITEM SUMMARY Meeting Date: July 2,2007
Meeting Type: Work Session
Department: Development Service~ ..........
Staff Contact: Mark Metzget1Zfil . '\ \."\.YI,,-
S P R I N G FIE L D Staff Phone No: 726-3775 ~\
C I T Y C 0 U N C I L Estimated Time: 40 minutes
ITEM TITLE: CHOICES FOR ESTABLISHING A DOWNTOWN URBAN RENEWAL DISTRICT
ACTION
REQUESTED:
Staff will brief Council on two choices for establishing an urban renewal district in the
downtown, both of which require an election. Council is requested to give staff initial
feedback on two questions, the answers to which will provide needed guidance.
ISSUE
STATEMENT:
Discussion will focus on two questions that accompany the establishment of a downtown
urban renewal district. These include:
I) The timing of an election for authorization to form a district: Should a fall 2007 or a spring
2008 election be planned?
2) Shall a new downtown renewal district be formed. or should the Glenwood district be
expanded to include downtown, as allowed under law?
ATTACHMENTS: Attachment I: Matrix Showing Key Decisions for Election Date Options
Attachment 2: Pros and Cons of Key Decisions
Attachment 3: Aerial photo: Potential Boundaries for a Downtown Urban Renewal
DISCUSSION/
FINANCIAL
IMPACT:
Attachment I illustrates two different approaches and election dates for establishing urban
renewal downtown. Inherent in choosing a fall 2007 election date would be the need to give
staff specific direction at or before the July 23rd meeting with Team Springfield to avoid
returning during the August recess. The spring 2008 alternative would provide more time for
planning and decision making, but would delay the capture oftax increment revenues for a
year.
Attachment 2 provides an analysis of the pros and cons related to the questions identified in
the issue statement above.
Fall 2007 versus a Spring 2008 election. A successful fall election would allow tax
increment revenues to begin accruing July 1,2008. A successful spring 2008 election would
start the revenue accrual on July I, 2009.' Meeting the deadlines for a November election
requires a tight schedule that is achievable but leaves less time than a spring election for
coordination and communication with the public, and affected taxing bodies.
Form a new downtown renewal district or expand the Glenwood district? State laws
allow for the expansion of an existing urban renewal district by up to 20% of the established
district's area. Forming a new district allows a new boundary to be designated, without being
limited to an acreage that is 20% of the Glenwood district (about 120 acres). Expanding the
Glenwood district would allow increment revenues from Glenwood to be used in the
downtown and vice versa. Forming a new district would keep the revenues separate.
Attachment 3 shows three potential renewal district boundaries. If the Glenwood district is
expanded into the downtown, then Boundary I or a similar boundary must be chosen to meet
the 20% statutory limitation.
Attachment 1
Matrix Showing Key Decision Points and Dates
Based on Three Election Date Options
KEY DECISIONS TO BE MADE BY COUNCIL (IN BOLD)
Formal Notice
Expand Select of Plan to Council
Glenwood Conceptual Submit Ballot Planninq First Council
/Form New Authorize District Title to Lane Commission & Election Reading Approves
District Election Boundarv Countv Taxina Bodies* Dates of Plan Plan
en
~
() Fall Ballot July 2nd or
~ July 23rd July 23rd July 23rd Sept 6th Oct 16th Nov 6th Nov 8th Dee 3rd
....
Z
0 Spring
i=
() Ballot July 23rd Feb 11th Feb 11th March 28th . May 12th May 20th May 26th June 9th
W
...J
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* Informal dialogue will be ongoing
Attachment 2
PROS and CONS of Key Decisions
A. HOLD A FALL 2007 OR SPRING 2008 Election?
Pros:
1. The primary advantage of a fall election is that if approved, tax increment revenue
will begin accruing one year earlier than a spring election.
2. The documentation completed to establish the Glenwood Urban Renewal District
can be used as a template for creating an urban renewal plan for downtown.
3. The existing plans and studies provide a wealth of source materials for identifying
goals and projects for a downtown renewal district.
4. The existence of the Glenwood documentation and prior planning studies will
greatly expedite the development of a downtown urban renewal plan, making a
November election feasible.
5. There is a perceived momentum in the downtown. An early election date could
take advantage of that momentum and create a high level of energy and
movement around urban renewal in a short period of time.
6. November is a general election. The spring election is a presidential primary.
The renewal district issue may receive more public attention in November when
political races are not dominating the news.
Cons:
1. The primary disadvantage of a November election is the tight time line for
engaging the public and affected taxing bodies. A spring 2008 election date
affords more time for planning and communication.
2. Adequate (but not ample) time exists for engaging the public, community
organizations and affected taxing bodies partner agencies in the development of a
downtown urban renewal plan. A spring election date would allow more time to
engage stakeholders and the public would benefit the effort to secure buy-in and
win citizen support.
3. The August Council recess and the packed agenda between now and the end of
July will require Council to make key decisions in a timely manner that may feel
hurried.
Pros and Cons of Key Decisions
July 2, 2007
1
B. EXPAND GLENWOOD BOUNDARY OR CREATE A NEW DOWNTOWN
URBAN RENEWAL DISTRICT?
Expand the Glenwood Urban Renewal District to Include Downtown Areas:
Pros:
1. The primary advantage to expanding the Glenwood Urban Renewal District is the
ability to take advantage of the existing Glenwood Renewal Plan. The existing
plan would need to be amended, and would still need voter approval.
2. Expanding the district could allow tax increment revenues from Glenwood to be
used for downtown projects. This may be viewed as a con as well.
Cons:
1. The primary disadvantage to expanding the Glenwood Urban Renewal District is
the possibility that the expansion would be a breach of the original intent of the
district: use Glenwood increment revenues to benefit Glenwood.
2. Expanding the Glenwood District would require County participation. Glenwood
has land that is both inside and outside the Springfield city limits and requires
County participation to establish the district. A separate downtown renewal
district, if drawn to include only land within the city limits, would not require
County participation.
3. State law limits the expansion of an existing renewal district to 20% of the
original district's area. This would limit the expansion to about 120 acres in the
downtown or roughly the size of Boundary 1 shown on Attachment 3.
Create a New Downtown Urban Renewal Plan
Pros
1. The primary advantage of forming a separate downtown urban renewal district is
that establishing a new district would allow a boundary to be drawn that best
meets the needs of the downtown, without regard for the 20% statutory limitation
imposed by expanding the Glenwood district.
2. Creating a downtown renewal district that is wholly within the city limits would
be less complicated because all areas are annexed.
3. May create dissatisfaction and mistrust in Glenwood due to shifting of revenue
from one area to another.
4. Provides its own source oftax-increment from downtown for downtown specific
projects and preserves Glenwood funding for Glenwood projects.
Pros and Cons of Key Decisions
July 2, 2007
2
Downtown Urban Renewal
Potential District Boundaries
N City Limits
"[~1 Washburne Historic District
C Boundary 1
C Boundary 2
C Boundary 3
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