The City offers incentives to encourage redevelopment that have a specific geographic <br />scope. These tools could be expanded to include targeted areas in the River Road corridor <br />area. <br />• Multiple Unit Property Tax Exemption (MUPTE). This is a state -enabled program <br />designed to be an incentive of redevelopment of residential properties in city centers <br />and along transit corridors. It reduces property taxes on new multi -family development <br />in specific locations and with specific characteristics defined by the City for up to 10 <br />years. Development feasibility testing for River Road indicates that MUPTE would have <br />a noticeable impact on the feasibility of multi -family development. The City currently <br />offers this program for multi -family development in the downtown, subject to a few <br />additional requirements. This program could be applied to specific target areas (e.g. <br />adjacent to the new Santa Clara transit station) or throughout the corridor, given the <br />area's transit proximity. <br />• Urban Renewal or Tax Increment Financing (TIF). Oregon law allows local jurisdictions <br />to establish tax increment financing (TIF) districts, also known as Urban Renewal districts, <br />where taxable value over a set `frozen base' goes to that TIF district. The revenue above <br />the frozen base from all overlapping taxing district is directed to the TIF district. Eugene <br />has two TIF districts: the Downtown and Riverfront Urban Renewal Districts. The TIF revenue <br />has funded a broad range of development projects and has capitalized loan programs to <br />support redevelopment. <br />The City could establish a new Urban Renewal district in the River Road corridor area. A <br />TIF district would create a dedicated funding source for targeted programs, including: <br />o Grants or low-interest loans targeted at storefront improvements for existing <br />commercial buildings or other uses; <br />o Funding Tenant Improvement (TI) allowances for targeted businesses to move <br />into existing commercial space; <br />o Land acquisition, so the City could direct redevelopment activity; and <br />o Public infrastructure improvements. <br />TIF is a flexible tool that can be used to fund a wide variety of projects. However, <br />establishing a new TIF district requires rigorous analysis and extensive stakeholder <br />outreach. It may require a multi-year planning process. In addition, it takes years before <br />the incremental revenue—that revenue over the frozen base—is substantial enough to <br />fund any meaningful investment. <br />The City could also establish tools that are not currently available. <br />• Vertical Housing Tax Credit. This is a partial tax abatement for multi -story mixed-use <br />development. The value of the exemption is less than the value associated with the MUPTE <br />program (described above). It is an alternative to MUPTE. <br />• Scaled SDCs. The City has scaled its Transportation SDC so that it is lower in the <br />downtown and along transportation corridors, to further incentivize development <br />in those areas. The City could scale the other SDCs imposed on new <br />development in targeted areas, in alignment with Neighborhood Plan goals. <br />(pg 64) <br />39 <br />