City of Talent Oregon / Urban Renewal / Frequently Asked Questions

Urban Renewal

Frequently Asked Questions

What is Urban Renewal?
The Oregon Legislature created what is known as urban renewal as a way to promote public and private investment within “blighted” areas. The goal of urban renewal is to improve these blighted areas so that property values within the urban renewal district increase over time and ultimately benefits the City as a whole.

How are Urban Renewal projects financed?
Tax increment financing (TIF) is the method used to finance urban renewal projects identified in an adopted urban renewal plan. Tax increment financing is not a new or additional tax imposed by the City. It’s simply a reallocation of some tax dollars to repay bonds issued to fund urban renewal projects. Tax revenue is reallocated to the urban renewal agency only if property values increase in the urban renewal area after the urban renewal plan is adopted. Tax collections based on property values at the time an urban renewal plan is adopted are unaffected by the urban renewal program. 

Will urban renewal increase my taxes?
No. An urban renewal district does not impose a new or additional tax. A portion of existing taxes within the district are reallocated from overlapping taxing districts to the urban renewal agency for purposes of undertaking urban renewal projects and repaying bonds. 

Why then does urban renewal show up on my tax statement if it does not impose a tax?
Tax statements show how much tax revenue has been provided to the urban renewal agency by overlapping taxing districts. Known as the “division of taxes” this shows how property taxes have been divided among all taxing districts. The total property tax paid is the same with or without urban renewal.

How do I as a property owner inside of an urban renewal district stand to benefit from urban renewal?
Public and private investment made within the urban renewal area could help improve your property’s value. In addition, urban renewal plans often include programs and financial incentives to help property owners improve or redevelop their property. 

How do I as a property owner outside of an urban renewal district stand to benefit?
Benefits of urban renewal outside of the urban renewal area are indirect. For example, promoting development within an urban renewal area results in a more cost-effective and sustainable development pattern reducing the need to extend costly public services. Provision of cost-effective public services reduces operating and capital costs potentially benefiting all rate payers.