“Urban Renewal” is the term that we use to describe our work in the community. In accordance with Oregon Revised Statute (ORS) 457, we identify areas of “blight,” set a geographic boundary around the blight, and implement a plan to address it through various development activities within a specified time period. Once established by the Portland Development Commission (PDC) and approved by the Portland Planning Commission and the Portland City Council, the designated area becomes an Urban Renewal Area (URA).
The PDC funds development efforts in these URAs using a financial tool called “tax increment financing.” In its most simple form, tax increment financing (TIF) allows us to borrow money against future property taxes on new growth in the URA. We use the borrowed money to promote new development which then leads to higher property values in the URA.
In a way, we serve as our community’s investment broker. We invest your tax dollars in urban renewal projects that address “blight” in a number of ways:
- We help attract and retain large and small businesses that hire local residents while producing goods and services.
- We invest in housing developments that provide affordable housing options to households of limited means. Our homeownership programs help young families buy their first home and help older residents stay in their homes.
- We partner with other public agencies to upgrade streets and improve transit options; build or improve parks; and even address environmental issues through Brownfield remediation and watershed management improvements.
If these investments prove successful, property values increase in the URA and the taxes on the increased property value pay for the development projects while building the tax base for local taxing jurisdictions.
The Future of Urban Renewal Initiative invites interested parties to join us as we look at our existing investment plans and prepare for the future.
Learn More:
- ORS 457
- FAQs - A more detailed description of urban renewal and tax increment financing
Explanation of tax increment financing as it relates to the Westside Study PowerPoint, Video clip of the presentation by Ken Rust (Director of Portland’s Office of Management and Finance) and Harvey Rodgers (Bond Counsel).
- DTWF : Downtown Waterfront Urban Renewal Area
- FOUR : Future of Urban Renewal
- LTC : Lents Town Center Urban Renewal Area
- ORS : Oregon Revised Statutes
- PDC : Portland Development Commission
- RD : River District Urban Renewal Area
- SPB : South Park Blocks Urban Renewal Area
- TIF : Tax-increment financing
- URA : Urban Renewal Area
- URAC : Urban Renewal Advisory Committee
- URAG : Urban Renewal Advisory Group (Westside Study)