Frequently Asked Questions
How does urban renewal work in Oregon?
The purpose of urban renewal is to improve specific areas of a city that are poorly developed or underdeveloped. Urban renewal provides three types of authority that are not otherwise available to local governments.
- First it allows for the use of tax increment financing (explained below) to fund improvement projects.
- Second, it allows for special powers to buy and assemble sites for development or redevelopment, if that is desired, although property cannot be acquired without the property owners’ consent.
- Third, it allows for special flexibility in working with private parties to complete development projects.
For a city or county to use urban renewal, it must activate an urban renewal agency and it must adopt an urban renewal plan.
Urban renewal is unique in that activities can be funded by tax increment revenues. Tax increment revenues are the amount of property taxes generated by the increase in total assessed values in the urban renewal area from the time the urban renewal area is first established. The assessed value of an urban renewal area at the time the plan is adopted is called the “frozen base.” Growth above the base is called the “increment.” Though the amount of tax increment revenue is determined by the growth inside the urban renewal area, the taxes are actually raised from all property within the city. The normal taxes paid by each property owner in the city are divided, so that taxing districts and the urban renewal agency gets their proper share.
Tax increment revenues must be used to make payments on debt. The amount borrowed is then used to pay for urban renewal projects.
Can you help with public-private partnership real estate transactions that do not include urban renewal projects?
Absolutely. I have recently assisted in disposing of excess City-owned land to a developer. I am representing a group of property owners in its negotiation with a city for a development plan that will lead to an integrated public-private development of multiple properties. And I also do more generic real estate transactions, such as purchase and sale agreements and leases.
If you are the expert, can my little town afford your rates?
My rates are competitive with other municipal attorneys who represent clients throughout the state.
Who else do you work with?
My work often involves other expert disciplines, such as urban renewal consultants, land use planners, economic feasibility consultants, and bond attorneys. However, the most direct relationships are always with the client and the client staff.
Can you help with a transaction that is outside Oregon?
I am not licensed to practice law outside the state of Oregon. Depending on the nature of the assignment and local ethics rules, I may be able to assist on an out of state project. For example, I have consulted with other out of state jurisdictions in coordination with their local attorneys.
