Another example of why Urban Renewal is a bad idea stems from the politicians ability to manipulate all the construction projects in a city with an Urban Renewal area or areas. Please click the following link to an article in The Portland Tribune. In it they demonstrate how the Mayor of Portland is going to overhaul the city's Urban Renewal Agencies, so he can create the image of what "HIS" utopian Portland would look like, much like the Mayors or Managers of Bandon, Coos Bay, North Bend, etc, etc, etc......Rob T.
Mayor Hales proposes overhaul of city's urban renewal program.
Scrapping Education Urban Renewal Area
This effort has barely gotten off the ground, and would have taken many years to generate serious urban renewal funds, McNamara says. That’s because the PDC relies on tax increment financing, which freezes property values in urban renewal districts and siphons off taxes from rising property values to use for redevelopment. Much of the district is owned by PSU, which is property tax-exempt, limiting the available revenues to tap.
Dumping the district would mean less city aid for the university district in the south side of downtown, and $46 million less for subsidized housing near PSU.
The original urban renewal plan pushed by then-Mayor Adams called for improvements to some PSU buildings. But a subsequent tax ruling makes such projects “look a lot more questionable today,” McNamara says. That’s because any property taxes spent on PSU buildings must meet Oregon’s property tax limitation for education — causing a corresponding drop in property taxes for public schools. Hales sees the limitations of the PSU urban renewal area and “from a legal perspective, sees it as an imperfect tool,” McNamara says.
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