Investing in Our Future

Urban renewal is a partnership between the city and property owners to improve an area and encourage economic development with a "ripple effect" that invigorates businesses, strengthens the local economy, and ultimately increases property values. The intent of urban renewal is to improve specific areas that are poorly developed or underdeveloped, eliminate blighting conditions, and improve conditions to encourage economic development. Wherever possible, old buildings are preserved and rejuvenated, and neighborhood character is celebrated rather than demolished. Landowners and developers invest in improvements, aided by grants from the Urban Renewal Agency, which spurs business growth and generates jobs. Property values rise, and everyone benefits — including the city, as rising property values also mean more tax revenue for the city, county, schools, and other local agencies.

Urban renewal has been instrumental in many notable community improvements, including helping to restore the Egyptian Theatre, expanding the Eastside Boat Ramp, and doing seismic upgrades at City Hall. In the private sector, the Façade Improvement Grant Program helped revitalize landmarks such as the old Coos Bay National Bank Building and South Coast Office Supply.

Urban Renewal Districts

Coos Bay has two urban renewal districts -- one downtown, the other in Empire. The Downtown District was formed in 1988 and includes the shopping district and the upper portion of the bay. The Empire District was formed in 1995 and includes a business district and the lower portion of the bay. These districts have helped finance many public and private projects over the years, including the Dolphin Playhouse Theater, historic mural, road improvements, pedestrian crossings, and the addition of ADA ramps to Empire sidewalks. Not every project succeeds, but the overall track record is strong.

• Map of Urban Renewal Districts

Funding & Payoff

Money for urban renewal comes from taxing the increase in property values on property within an Urban Renewal District. Urban renewal does not increase property taxes, it just reallocates the taxes paid on increased property valuation. Jurisdictions don’t receive any less money than they did before the URA was formed. But urban renewal does divert the taxes on any increase in property valuation. During the life of the Urban Renewal District, that portion of tax revenue is invested in projects to improve the area. In the long run, those improvements raise property values, thereby yielding more property tax revenue for all of the taxing jurisdictions.

The payoff from urban renewal can be seen throughout Coos Bay. The Egyptian Theatre and Tioga Building restorations, 4th Street roadway reconstruction, the Coos Bay Village traffic safety infrastructure, and façade improvements at many local businesses all reflect urban renewal investment. Pinpointing the exact economic impact of urban renewal is impossible, because many factors affect property values, but we can make a reasonable estimate. We know that property values typically increase about 3 percent per year, and we know how much assessed valuation has risen in the Downtown and Empire Urban Renewal Districts. By subtracting 3 percent per year from the actual increase, we can estimate that urban renewal has enhanced the two districts by about $46 million. That increased valuation will yield higher property tax revenues over the long run.

History

Coos Bay has used urban renewal previously to improve the city. Before the two current districts, Coos Bay created an urban renewal district in the central downtown core area in 1968 that extended from the bay on the east to 4th Street on the west and from Commercial Avenue on the north to Curtis Avenue on the south. The district's projects consisted of elimination of traffic on Central Avenue from Highway 101 to 4th Street and the creation of a pedestrian mall, undergrounding of many utilities within the district, property acquisition to create parking lots and remove blighted structures, and canopied walkways to connect parking lots and other district areas with the pedestrian mall. The projects were completed in the early 1970s. The district ceased tax increment revenue financing in 1984 and the district ended in 1989. The lasting impact of these improvements is evident in the popular walkable downtown and numerous festivals and community events now held in the area.

Governance

The Urban Renewal Agency is headed by the Urban Renewal Board, whose membership consists of the Mayor and City Council. Staff support for the URA comes from the city’s Administration Department. The URA is governed by the URA Rules.

Oregon Revised Statutes (ORS) Chapter 457 establishes and governs urban renewal districts. Administrative costs associated with implementation of urban renewal projects are an allowable expenditure of urban renewal funds.

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