During the recent joint City of Portland/PDC budget process, a number of potential changes were identified that could impact various urban renewal areas (URAs). As a result of this process, it was estimated that Lents URA will not have the financial capacity beyond year 2011 to complete existing projects in the URA plan. Therefore, PDC has initiated a review of the maximum indebtedness, which allows PDC to issue bonds to pay for improvements like roads and parks, development of affordable housing, and assist new business development, as well as its boundary. The Lents maximum indebtedness (“credit card”) is currently set at $75 million with $37 million remaining until 2015 to carry out community development projects. If additional bonds can be issued through an increase in maximum indebtedness, it could help PDC to achieve the original URA goals and objectives that were created in 1998 and spur revitalization along major commercial corridors. Additionally, a request to include more commercial areas along SE Foster Road and other minor boundary changes will be studied.
A plan amendment process helps update and revise URA plans to reflect changes in the subject area and market over time. According to state law (Oregon Revised Statutes [ORS] 457.220) the PDC and the city must use this process to evaluate the existing boundary and maximum indebtedness to determine the feasibility of achieving the original goals of the district and to examine the potential for additional projects identified by the affected community.
The PDC is conducting a study to determine the feasibility of an increase in maximum indebtedness and a boundary adjustment. The study includes a financial analysis to determine the availability of funds, the amount needed to complete existing and any new projects, and whether an expansion of the boundary will help achieve additional community development goals. A boundary expansion is not a necessary component to increase the maximum indebtedness.
A decision to move forward with either option will not be made without public participation.
The Lents Urban Renewal Advisory Committee (URAC) meets bi-monthly, in open, public meetings and will have an opportunity to draft criteria, propose and prioritize projects, evaluate all proposals, and make recommendations to PDC staff and the PDC Board. Based on the technical and legal analysis, and public comments collected during the process, the PDC Board will consider this information before a decision is made to go forward. If the Board decides to authorize a plan amendment, an application, called an “Urban Renewal Plan & Report,” will be filed with the City of Portland Bureau of Planning for a hearing before the planning commission. The City Council will then hold another hearing and will make the ultimate decision about this and any plan amendment request.
Real estate development, infrastructure projects, and neighborhood change takes many years, and most URAs in the city have not rapidly met all of their original goals. There are many projects around the URA that have been completed since 1998. However, the Lents Town Center URA, like many areas in Portland, has reached a point where projects are more marketable and viable despite the challenges PDC has faced, such as a rise in construction and loan costs, and assembling contiguous properties. If additional resources become available, PDC can capitalize on these favorable market conditions and properties that have been acquired since 1998 to achieve the original goals of the URA.