Adopt the Twelfth Amendment to the Central Eastside Urban Renewal Plan
The City of Portland ordains:
Section 1. The Council finds:
- The Central Eastside Urban Renewal Plan (the “Central Eastside Plan” or “Plan”) was adopted by the Portland City Council (“City Council”) on August 26, 1986, by Ordinance No. 158940, in order to provide tax increment funding (“TIF”) to promote redevelopment within the Central Eastside Plan area (“Central Eastside TIF District” or “District”) and to protect the public health, safety, and welfare of the City of Portland. The Central Eastside Plan has been amended eleven times, with the most recent Eleventh Amendment approved by City Council on April 1, 2015, by Ordinance 187070.
- Prosper Portland recommended that the Central Eastside Plan be amended to better align with the requirements set forth in Oregon Revised Statutes 457.220, related to the procedures for making Substantial Amendments and Minor Amendments to plans. On August 28, 2024, the Prosper Portland Board of Commissioners adopted Resolution 7561, approving the Twelfth Amendment to the Central Eastside Plan and referring the matter to the Portland City Council with a recommendation to approve the Twelfth Amendment, as set forth in Exhibit A.
- The proposed Twelfth Amendment to the Central Eastside Plan is not a Substantial Amendment, it does not modify the goals or planning principles of the Plan, it does not change the plan boundaries, and it does not increase the amount of maximum indebtedness of the Plan, and is therefore not required to be approved by the City Council in the same manner as the Council’s approval of the original plan.
- The proposed Twelfth Amendment to the Central Eastside Plan does not make any changes to project activities, revise any project boundaries, include acquisitions of real property, make any other changes that diverge from the basic principles of the Plan, or make any changes to the goals of the plan, and it therefore does not require the review and recommendation of the Planning Commission prior to consideration by the Council.
- The proposed Twelfth Amendment to the Central Eastside Plan does not adopt a new urban renewal district, adopt or amend goals and objectives that will guide investment priorities within the Central Eastside TIF District, or amend the boundaries of the District, and therefore is not required to be reviewed for compliance with the City of Portland’s 2035 Comprehensive Plan.
NOW, THEREFORE, the Council directs:
- The Twelfth Amendment to the Central Eastside Urban Renewal Plan, attached hereto as Exhibit A, is hereby approved and will be effective thirty (30) days after passage of this ordinance.
Official Record (Efiles)
An ordinance when passed by the Council shall be signed by the Auditor. It shall be carefully filed and preserved
in the custody of the Auditor (City Charter Chapter 2 Article 1 Section 2-122)
Passed by Council
Auditor of the City of Portland
Simone Rede
Impact Statement
Purpose of Proposed Legislation and Background Information
On June 28, 2023, Portland City Council through Resolution 37623 directed Prosper Portland to “pursue analysis and creation of new Tax Increment Finance districts to advance equitable development and inclusive growth in East Portland and the Central City.” The resolution further stipulated that:
- The East Portland TIF exploration process shall consider up to 7,500 acres of available land area and up to approximately $6 billion in available assessed value for up to three new districts, including a potential district along 82nd Avenue to support the City's parallel investments in transportation improvements; and
- The Central City TIF exploration process shall consider up to 1,500 acres of available land area and up to approximately $3.7 billion in available assessed value for new TIF district(s).
At the October 23, 2024, City Council meeting, staff will present six new TIF plans for Council consideration. One of the contingencies for these six districts’ potential approval is the successful amendment and reduction of the Central Eastside TIF district plan area to ensure there are no tax lots within multiple TIF districts at the same time.
Financial and Budgetary Impacts
This action has no financial or budgetary impacts, but the related action by the Prosper Portland Board for the Thirteenth Amendment to the Central Eastside Urban Renewal Plan will remove 708 acres from the TIF District and release $230,541,190 of assessed value back to the taxing jurisdictions.
Economic and Real Estate Development Impacts
The community involvement for those proposed actions is outlined in related ordinances for the proposed Central Eastside Corridor, Lloyd-Holladay, and Westside Plans. The action to amend the Central Eastside Plan will allow Prosper Portland to invest its remaining TIF resources in the multi-phased Workshop Blocks project and provide grant and loan resources to small businesses and property owners.
Community Impacts and Community Involvement
This is an administrative action related to the proposed new TIF Districts in the Central City. The community involvement for those proposed actions is outlined in related ordinances for the proposed Central Eastside Corridor, Lloyd-Holladay, and Westside Plans.
100% Renewable Goal
This action does not have an impact on the city’s 100% renewable goal.
Financial and Budget Analysis
Analysis provided by City Budget Office
At the October 23, 2024, City Council meeting, Prosper staff will present six new TIF plans for Council consideration. One of the contingencies for these six districts’ potential approval is the successful amendment and reduction of the Central Eastside TIF district plan area to ensure there are no tax lots within multiple TIF districts at the same time. The proposed amendment clarifies the distinctions between Substantial Amendments, which require City Council approval, and Minor Amendments, which may be approved by a Resolution of the Prosper Portland Board of Commissioners. This action has no financial or budgetary impacts, but the related action by the Prosper Portland Board for the subsequent Thirteenth Amendment to the Central Eastside Urban Renewal Plan will remove 708 acres from the TIF District and release $230,541,190 of assessed value back to the taxing jurisdictions, with the City's portion already incorporated into its forecasts. As this subsequent amendment's actions are considered to be Minor Amendments, City Council approval is not necessary.