South Dallas urban renewal plan reviewed; staff outlines goals, projects and $41.6 million debt limit

City staff walked the Economic Development Commission through the South Dallas urban renewal plan, reviewing statutory mechanics, goals for the area and a list of public- and private-sector projects the plan contemplates.

"Tax increment revenues are the amount of property taxes generated by the increase in total assessed values in the urban renewal area," Charlie said while explaining how the district's increment would be captured and used to repay borrowed funds under ORS 457.

Key details: Staff said the South Dallas urban renewal area is roughly 423 acres and estimated it could take about 30 years to accomplish the plan's projects. The plan lists a maximum indebtedness of $41,600,000 and groups investments into three categories: public infrastructure, private-sector economic development programs, and administration.

Project list highlights: On the public side staff enumerated ten project types including a mill-site floodway study (north fork Ash Creek), Monmouth Cutoff Road improvements, mill-site transportation corridors, Ash Creek improvements and water/sewer upgrades. Private-sector measures listed include state site-certification assistance, fee/SDC waivers for targeted businesses, targeted commercial marketing (where the GSLI activity fits), and specific mill-site improvements.

Financing discussion: Staff estimated current annual tax-increment revenues at roughly $125,000–$150,000 and outlined two broad approaches: (1) conserve annual increment and fund small projects over time, or (2) borrow against future increment to finance larger projects now — a strategy that increases early impact but requires credible debt-service capacity. "It kind of takes a number of years for a fledgling urban renewal district to start generating the tax increment that it needs," staff said.

Local projects and recruitment: Commissioners discussed matching recruitments (via GSLI and Business Oregon) to vacant buildings and the mill site; staff noted some recruitments require a minimum building size of 25,000 sq ft while available leasable space is around 18,000 sq ft for the former TBS/Mac Metals building. The commission also discussed a potential small-scale business incubator as a way to activate local entrepreneurship, though staff noted the city currently does not own surplus property in the district.

Next steps: Commissioners asked staff to run debt-capacity and return-on-investment scenarios and to circulate the TGM study and selected appendices of the consultant survey for follow-up discussion. No formal borrowing decision or amendment to the plan was made at the meeting.

Limitations and statutory context: Charlie referenced ORS 457 and Dallas municipal code sections governing urban renewal and the commission's duties. Any amendment to district boundaries, maximum indebtedness, or major financing actions would follow statutory processes and require council and public-notice steps.