By Mary Owen
Stayton’s urban renewal plans were put on hold following a public hearing held July 20 that drew mixed reviews from those attending.
“There were nine individuals who testified at the hearing – three in favor, five opposed, and one with general testimony, neither yeah or nay,” said Dan Fleishman, the city planner for Stayton.
Stayton Fire District Chief Jack Carriger is a key opponent of the plan, which establishes a financing mechanism for carrying out the policies of the Downtown Transportation and Revitalization plan. He projects the plan would cost the first district $937,203 in foregone revenue over the next 20 years.
“That’s more than a year of our base revenue lost,” Carriger said. “I don’t think it’s fair that one agency can decide to take revenue from another agency to build their own projects – especially when they haven’t asked the people who live in Stayton whether they want that project or are willing to pay for it.”
Stayton businessman Ken Cartwright said the fire district won’t stop receiving tax dollars if the urban renewal plan was passed and pointed out it does have a new building, 911 center and some new gear.
“The core area does not have a chance without the revenue opportunities that the other areas of the city have had,” Cartwright said.
“The fire department tax collections will not stop because of the renewal zone, but will be frozen with today’s tax base for 20 years. They will continue to see tax revenues from the district plus increases from the other areas both inside and outside the city. They will not suffer as I see it, but will survive,” Cartwright said.
However, Carriger pointed out that other losses, including the tax impact of Measure 5, and potential federal cuts to the fire district may further hamper its operations. “It’s getting harder and harder,” he said of the district’s efforts to maintain quality service.
Despite Carriger’s reservations, Fleishman said Stayton’s downtown area needs help.
“The city hasn’t been able to do anything during the last 30 years, and it’s about time,” he said.
More than 65 Oregon cities and counties have urban renewal plans, and 90 plans are now in effect. To initiate its plan, Stayton must provide its residents with a background report that identifies and estimates the number and assessed values of acres, any deficient or blight conditions, tax increment revenues, costs of plan activities, the time frame to carry out projects and pay off debt, and the tax impacts of carrying out the plan.
The report is available at the Planning and Development Department office and on the city’s Web site.
“Urban renewal causes no change in property owners’ tax bills,” Fleishman said. “Funded through tax-increment financing, property taxes paid on new assessed value after the date of the plan goes to the urban renewal agency instead of being distributed to the usual taxing jurisdictions like the county, city, school district and fire district.”
The other taxing jurisdictions continue to collect property taxes on the “frozen base” assessed value that existed at the start of the urban renewal program, Fleishman said.
In return, Stayton’s downtown district will be revitalized through the following offerings: promoting and marketing the downtown area, business assistance, financial assistance to property owners and developers, street and utility improvements, beautification and additional public facilities such as a civic center.
Benefits to the Stayton Fire District include renovation and replacement of older structures, funding provided for fire code upgrades as part of remodels, and replacement of older water mains. To date, 14,000 feet of existing water line is undersized, and 26 hydrants on those lines are more than 25 years old.
“It’s important that we have a financing plan in place to revitalize the downtown core area without raising taxes,” Cartwright testified at the hearing. “Not much has been done in the past 55 years in the way of curb, sidewalk, drain and other improvements to the core area.”
Cartwright said, when completed, First Avenue improvements drew downtown traffic, and Third Avenue improvements are “just as necessary to keep and attract residential, commercial office and residents to the downtown area.”
Susan Horvat with Prudential NW Properties is in favor of the urban renewal plan “mostly because we have nothing else that has been done that has worked.”
“It is time for a change and improvement,” Horvat said.
Kelly Schreiber, director of the Stayton-Sublimity Chamber of Commerce, agreed.
“While the plan does not increase taxes, it does reallocate funds to provide for improvements that are necessary for revitalization, including but not limited to infrastructure improvement, pedestrian improvement, parking, parks and natural areas, beautification, building rehabilitation loans, grants and other assistance,” Schreiber said. “In other words, the things that are needed to make Stayton’s downtown more alive and vibrant.”
But before the city council approves the plan, Art Christiansen urges people to come to the next meeting and consider its implications.
Christiansen, who is on the board of directors for the Stayton Cooperative Telephone Co., believes that only a very small portion of Stayton’s population is represented by the downtown area, and that the city’s entire population should have the right to vote on the plan.
“If the majority wants it, then I’ll go with it,” said Christiansen, who voiced his opposition at the hearing. “But it should go to a vote of the people.”
The Stayton City Council will discuss the urban renewal plan on Aug. 3.
“We’ll see what happens then,” Fleishman said.
