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Concern grows over Talent urban renewal plan By Tony Boom Jul 09, 2022 12:30 AM A A Residents decry loss of revenue for fire district, other services Plans to move forward with a new Talent urban renewal district have come under increasing criticism due to its impacts on other taxing districts. A speaker at Talent Urban Renewal Agency’s July 5 board of directors meeting said it could affect emergency services, while seven letters in opposition were received prior to the session. Input addressed the impact the district will have on future tax revenues for Jackson County Fire District No. 5. Directors voted 5-0 at a June 29 session to advance creation of the 212-acre district by forwarding a plan to other government bodies. Prior to that meeting, correspondence was received from the city manager and a board member who couldn’t attend calling for a slowdown in the process to allow for more complete planning and to get buy-in from other taxing districts in the area that will see impacts to future revenue. Resident Deric Manzi expressed concern about the loss, over 30 years, of nearly $17 million in tax revenue by Fire District 5 if the new district is created. A recent brush fire 100 yards from his house was put out quickly by the department, he said. “How do you justify putting forward an agenda that could potentially reduce the budget of emergency services in a city that suffered a horrible natural disaster that has shown how critical those emergency services are?” asked Manzi. “As a resident of the city, I personally would like to see any pulling of tax revenues from emergency services for this agenda removed.” All seven letters attached to the July 5 meeting packet addressed the impact a new district would have on Fire District 5. Urban renewal would use the money for affordable housing, aid to commerce and resiliency-related projects. “I don’t disagree with the fact that we need more affordable housing, but to steal from FD5 is a slap in the face to those hardworking heroes who saved many of our lives and property less than two years ago,” wrote Matt Schmidt. “Taking from them will not only hurt our public and life safety; it will also leave a stain on our town’s and TURA’s relationship with other agencies in our community, especially those who serve and protect us.” Chris Luz of Phoenix wrote that the formula that determines revenue for urban renewal districts freezes increases for overlapping tax districts and will create substantial revenue beyond what is anticipated in the project plan as new buildings are built where fire destroyed structures. “The dramatic increase in taxes will flow to the urban renewal district and away from the overlapping taxing districts based on a frozen base date of January 2021 — because that frozen base rate is based on just raw land,” Luz wrote “You guys need to realize the differences between wants, dreams, needs and patience. Good things take time ... They don’t go well stealing from Peter to pay Paul. I'm appalled you would even consider this,” wrote Sandra Martineau. During the June 29 session, Jerry Hauck, president of the Oak Valley Homeowners Association, expressed concerns about the nearly $17 million in tax revenues the city will forgo over the next 30 years if the district is created. All of the homes in the subdivision, a 55-plus community, were destroyed in the Almeda fire. “Looking at the $16 million that’s going to be lost by the city, where is that going to be coming from except maybe from extra fees or bond issues? Most of our people are on fixed income(s). This is going to be a big factor,” said Hauck. “How come the taxing rate was chosen so far back before construction started? How is the city supposed to continue to operate?” Prior to the June 29 meeting, board member Ana Byers, who couldn’t attend due to illness, asked the group to consider a postponement of the new TURA plan process, as did City Manager Jordan Rooklyn. Rooklyn also is executive director of the urban renewal agency, and Byers is a Talent city councilor. The urban renewal board is composed of Talent City Council members and the mayor. Such arrangements are common in Oregon cities with urban renewal agencies. “I feel that we cannot lose the opportunity to enact a plan that has a solid foundation in detailed information, community input, project planning, relationship building, community stakeholder buy-in,” wrote Byers. We all intend to create true positive change via this project. I think the only way we can ensure that is to hold space to collect all the necessary input and information to make sure that good intentions become positive outcomes.” Rooklyn wrote the $16.8 million in revenue the city would forgo over the next 30 years from district creation would equal funding for about four to five full-time staff positions. “The financial impact … could be offset through fees added to the utility bill … or through additional taxes,” wrote Rooklyn. “Those types of fees and taxes, however, are regressive and would place a disproportionate burden on lower-income households living in Talent.” Rooklyn called for work on a plan that could be adopted before Dec. 31, which would still allow projects to be implemented under the proposed time frame. Postponement of the district creation would reduce the amount of revenue the agency would have to work with. To have revenue based on the Jan. 1, 2021, assessed value, a district would need to be in place by Sept. 25. The current plan calls for it to be created Sept. 23. Adoption at a later date would have the values set as of Jan. 1, 2022, a time when construction had replaced many burned structures in the proposed area, raising revenues that would flow to the overlapping taxing districts before a freeze. Should a new district be adopted, it would start with a tax base of $52 million based on values less than four months after the Almeda fire. But that value will increase rapidly with rebuilding. A report accompanying the plan shows an assessed value of $106 million in 2024, rising to $412 million by 2053. Approval June 29 led to the start of a 45-day consolation period with the 11 affected taxing districts. A required briefing on the formation will be held with Jackson County during July. The city’s Planning Commission would review it and make a recommendation July 26. A public hearing and first reading of an ordinance would be held by Talent City Council Aug. 17, followed by a second reading and potential adoption Aug. 24. The district could then become active Sept. 23. “We have very little wiggle room,” consultant Elaine Howard told the board at the June 29 session when discussing the timeline. Reach Ashland freelance writer Tony Boom at [email protected].