Wilsonville, OR. — Wilsonville voters will decide Nov. 3 whether the city should establish a new urban renewal district to finance streets, utilities, public spaces and economic development programs in and around Town Center.
The City Council voted Aug. 6 to refer proposed Ordinance No. 905 to the general election ballot. Approval would authorize the city to continue the required process for creating the Town Center Development District, including hearings before the Planning Commission and City Council. The council would subsequently decide whether to adopt the ordinance.
If the measure fails, the district would not be created.
The proposed district covers approximately 169 acres, including property within and adjacent to Town Center Loop and the Village at Main commercial area south of Wilsonville Road. The area had a projected assessed value of about $195 million for fiscal year 2026. Its initial “frozen base” is estimated at approximately $206 million when tax-increment collections begin.
The district would use tax increment financing, which redirects property taxes generated by growth in assessed value above the frozen base. Taxes on the base value would continue flowing to existing taxing districts, while most revenue associated with subsequent growth would be allocated to urban renewal projects and debt repayment.
The measure would not create a new property tax or increase existing property tax rates. However, it would temporarily redirect some future revenue that otherwise would go to the city, county, fire district and other taxing jurisdictions.
The plan allows up to $152 million in principal indebtedness over the district’s lifetime. That figure does not include interest or refinancing costs. The accompanying financial analysis estimates approximately $174.5 million in tax-increment revenue would be needed to service the maximum debt.
Collections are expected to begin in fiscal year 2029 and continue for 28 years, through fiscal year 2056. The district would take on smaller loans or other debt at different points rather than borrowing the entire amount immediately.
In 2027 dollars, the city estimates the proposed projects would cost about $170.6 million. Urban renewal funding is expected to cover approximately $85.5 million in current-dollar costs, with city general funds, system development charges, state money, grants and private developer contributions potentially providing the remainder.
Infrastructure accounts for most of the proposed spending. The plan estimates $152.2 million in total infrastructure costs, with $66.9 million coming from urban renewal funds. Eligible projects include:
- Redesigning and extending Park Place as a pedestrian-oriented “Main Street”
- Improving Courtside Drive and Wilsonville Road intersections
- Expanding the local street network
- Building sidewalks, cycle tracks and streetscape improvements
- Relocating underground utilities
- Developing parking facilities, parks, plazas and gathering spaces
The proposal also includes approximately $13 million in urban renewal funding for economic development. That includes $10 million for real estate and site-preparation activities, $2 million for small-business grants and loans, and $1 million for food-cart incentives. Another $5.6 million is allocated for plan administration.
The plan does not approve any private development. New housing, commercial buildings and other private projects would still require applicable land-use reviews, permits, fees and city approvals.
For financial planning, the city assumes the area could add 2,381 housing units and approximately 1.1 million square feet of commercial development. Under that scenario, assessed value would grow to about $1.7 billion by fiscal year 2056. City documents emphasize that those projections are assumptions rather than approved or guaranteed development.
Over the district’s life, the financial analysis projects approximately $96.2 million in redirected permanent-rate revenue from general-government jurisdictions and $78.3 million associated with education districts. The city’s projected share is about $34.1 million, while Clackamas County’s is approximately $32.5 million and Tualatin Valley Fire & Rescue’s is about $20.6 million.
School districts are treated differently under Oregon’s funding system. The report says reductions in local school property-tax revenue are substantially replaced through the State School Fund formula. General obligation bonds and local-option levies would not be affected.
Revenue sharing with affected taxing districts is projected to begin in fiscal year 2054. Once the urban renewal district closes, all property-tax revenue generated by the area’s assessed value would again be available to the regular taxing jurisdictions.
The council developed the proposal following earlier feasibility studies and public discussions. It reduced anticipated redevelopment, shortened the district’s proposed duration, lowered maximum indebtedness and removed a proposed Interstate 5 bicycle and pedestrian bridge from the project list.
The ballot referral follows voter approval of Wilsonville Charter Measure 3-632 in May, which requires voter authorization before the city creates or substantially changes an urban renewal plan.
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