Urban Renewal
Answers

How does UR work?

Urban Renewal is also referred to as Tax Increment Financing (TIF), and it works like this: When an Urban Renewal Area is created, such as for Town Center, the County Assessor establishes the current assessed value of all property within that specific area. The Assessor “freezes” the total amount of property taxes collected in that area that will be shared with the overlapping tax districts.

For the duration of the Urban Renewal zone (typically 20 to 30 years), the taxing districts receive revenue at that frozen base.

As the value of the properties in that specific zone increases, the income above the base (the “increment”) goes to the Urban Renewal Agency. This money is then spent on projects such as infrastructure within the Urban Renewal zone.

When the Urban Renewal timeline ends, the taxing districts receive taxes on the full assessed value of the zone.

Is UR a new tax?

NO. This is not a new property tax. Tax bills for property within the Urban Renewal zone do not increase because of Urban Renewal. Urban Renewal merely changes how the tax revenue from that specific zone is distributed. The money to pay for infrastructure or projects within the zone is generated by new development and property appreciation in the specific Urban Renewal zone.

What are examples of how Wilsonville has used UR?

You don’t have to look far to see how UR has helped shape Wilsonville. Some of our most popular destinations including Town Center Park and Murase Park were funded in part through UR. Facilities such as Wilsonville High School’s gymnasium, City Hall, the sewage treatment plant and the homes in Creekside Woods Senior Housing were made possible through UR.

UR seems complicated. I’m not sure I understand it.

That’s understandable. It is complex, and why elected officials work with experts to ensure every detail of an Urban Renewal Area is considered and understood. Of course, there are plenty of opportunities for residents to provide input about any Urban Renewal Area, as guided by state law (ORS 457). Results from Wilsonville’s use of this financing tool, such as the Year 2000 Plan and West Side Plan, have been heralded by economic development experts as extremely efficient and are often referred to as the gold standard statewide.

It’s also important to know that the Wilsonville Urban Renewal Agency is the governing body for all Urban Renewal Areas in Wilsonville. Their meetings are held regularly and are public and include time for Citizen Comments.