Milwaukie's urban Renewal slush fund takes nearly $200,000
Over the last 5 years, Milwaukie's General Fund for Basic Services loses $650,000 to Urban Renewal
This week, as property tax bills arrive for Milwaukie homeowners, the Clackamas County Tax Assessor publishes how much of Milwaukie's city government property tax proceeds are diverted away from Milwaukie's General Fund used for basic services (like Police, Library and urban forestry) ...diverted into Milwaukie's Urban Renewal account - which is planned to be used mainly to sometime in the future embellish Milwaukie's downtown area - embellished as Milwaukie's City Council and a few of its appointees so choose.
Milwaukie's Budget Committee meets this November 13, 2023; and I intend to make the case the City should at least footnote the draw on General Funds that Urban Renewal is taking.
(posted by Elvis Clark on October 29, 2023)
remove the new monroe apartments from Urban Renewal zone?
With the new Monroe Apartment Complex heading to completion, it could boost Milwaukie's Budget
The new Monroe Street Apartment Complex, located at the property at Monroe Street and 37th Avenue (Southwest corner area), could maybe bring-in up to $200,000 per year in new monies to Milwaukie's General Fund. Currently, this new Apartment project is within Milwaukie's Urban Renewal District, causing its property tax proceeds to go into Milwaukie's Urban Renewal Fund instead of Milwaukie's General Fund. The Urban Renewal fund is locked away for subsidizing developers among other things. Milwaukie City Council might be able to remove the new Monroe Apartment complex from the Urban Renewal, as soon as now but at least within the next five years.
Removing the Apartments from the Urban Renewal District, could boost Milwaukie's General Fund budget by some $200,000 per year. General Fund monies can be spent on such things as park maintenance, Street improvements and other beneficial expenditures for Milwaukie residents.
Removing this new Apartment Complex seems like something worth reviewing in the interest of increasing Milwaukie's General Fund budget.
How do I come up with the $200,000 revenue estimate. Well there are 240 or so apartments in the new Monroe Apartment Complex. The market value of each of these apartments could be as high as $300,000. With 240 of such apartments, this complex would have a total improvement value of $72 million. The property tax rate for Milwaukie's City services is about $4 per $1,000 of property value assessment. So, at $72 million in total property value, the result is a gross property tax proceed for the City of nearly $300,000 per year. But property tax limits, cause only 60% of these gross proceeds to be actually collected. Hence, this is the basis of my calculation that removing the new Monroe Apartment complex would yield up to $200,000 annually in new General fund revenues.
(posted by Elvis Clark on October 25, 2022)
Milwaukie City Council created an Urban Renewal Area - 2016
Milwaukie's Urban Renewal District covers I believe 17% of the City by acreage
Urban Renewal TAKES money from the City's general fund, which is used to fund basic services-police
Urban Renewal TAKES money from the City's general fund, which is used to fund basic services-police
The citizens of the City of Milwaukie did not get a chance to vote on approving or rejecting the creation of Milwaukie's Urban Renewal District, which covers Down Town Milwaukie and Central Milwaukie (Milwaukie Market Place and adjacent properties).
The Milwaukie City Council, including Mark Gamba and Lisa Batey along with two others on the Council in the year 2016, voted yes and created Milwaukie's Urban Renewal District.
Urban Renewal TAKES money from the City's general fund, which is used to fund basic services-police
Urban Renewal TAKES money from the City's general fund, which is used to fund basic services-police
Urban Renewal TAKES money from the City's general fund, which is used to fund basic services-police
Urban Renewal Districts, such as that in Milwaukie, essentially reduce a City's General fund monies which generally go towards basic services such as police, fire/rescue, public schools and other. Urban Renewal Districts such as Milwaukie's generally last for 30 years, and sometimes are extended beyond 30 years in life.
In the above table here, Milwaukie government officials have decided to spend about $2.8 million over the next five years on enticing developers to construct new Downtown buildings and housing.
What this means is our government officials decide to add new residents in Milwaukie in the Urban Renewal District without any extra money in the City's General fund to fully service these new residents with such things as police and other basic local government services.
Existing residents, in essence, are forced to share their property tax General Fund monies with developers and newly arriving residents within the Urban Renewal District. By the time the Urban Renewal District ends in thirty years, many of these existing residents at the beginning years of the Urban Renewal District creation, will have either moved to another city or died - such that they never get to share in the increased property tax revenues from the Urban Renewal Developments/improvements funded by their General Fund monies (those monies occurring in the absence of Urban Renewal).
At least some Building would occur even without Urban Renewal Districts in these areas
At least some Building would occur even without Urban Renewal Districts in these areas
At least some Building would occur even without Urban Renewal Districts in these areas
Here is a diagram of the Monroe Apartment Complex which is being built in Central Milwaukie at 37th and Monroe.
This construction very likely would have occurred even without Urban Renewal. I asked Milwaukie City staff if the Monroe Apartment complex received Urban renewal monies. And they didn't indicate the Monroe Apartment complex is targeted for developer financial assistance.
This points up the other General Fund shortfalls for existing residents created by Urban Renewal Districts such as Milwaukie's. The increased property tax revenues from new buildings (improvements) like the Monroe Apartment complex go into the Urban Renewal fund, when they would have otherwise gone into the City's General Fund for basic services.
Moreover, the 3% per year increase in property values on properties within the Urban Renewal District go not into the City's General Fund but rather the Urban Renewal District fund.
So, how can existing residents benefit from Urban Renewal?
At least some Building would occur even without Urban Renewal Districts in these areas
At least some Building would occur even without Urban Renewal Districts in these areas
Not by funding developers, but rather by funding public amenities such as an under pass such as the above proposed underpass of McLoughlin Boulevard, linking Downtown Milwaukie with Milwaukie Bay Park. (I myself prefer a bike/ped overpass at maybe Harrison where a banner could be hung for folks traveling Mcloughlin, saying: "Welcome To Milwaukie, and Sunday Farmers Market.")
General Fund monies if not diverted by Urban Renewal could just as easily be tapped for such public amenities as are now included in Milwaukie's Urban Renewal plans.
(posted by Elvis Clark on June 11,2022)