Urban renewal is an economic development tool used to encourage private development or redevelopment in an area via tax-increment-financed public investment. The renewal process can include repurposing old or run-down buildings, constructing new infrastructure, upgrading utilities, or adding in civic amenities like public plazas, public parking, or other public facilities.
How Urban Renewal Works
Urban renewal is a revitalization tool that exists in 48 states. It is a proven mechanism designed to focus attention, effort, and funding on a blighted or underdeveloped area of a community with specialized needs – needs that require more than incremental change to become economically healthy.
Urban renewal allows a general purpose local government (a city or county) to build and finance the public infrastructure necessary to support and attract new private growth and development. When a city creates an urban renewal area, it draws a boundary around an area that it wants to improve. When property taxes inside that area rise due to new growth and development, some of the money is redirected into strategic capital investment in the district which, in turn, invites more development. All improvements and any debt are then paid for from the new property value and increased tax revenue generated by the private development.
This effort also can assist local special purpose taxing districts in strategic cooperative projects. When an overall effort is successful, the future tax base necessary for low cost-high quality public services will be strengthened. When all redevelopment objectives are achieved and district improvements paid for, the entire increased value in a district is then returned to the general tax rolls, creating a shared benefit to both local government by providing a stronger tax base and the public by lowering tax rates.
Frequently Asked Questions
If adopted, the proposed Gateway East District will have a 20 year term.
CCDC will have the ability to help the area invest in infrastructure and utility upgrades, mobility, and economic development projects in the district. Construction of new and improvements to existing streets, sidewalks, and utilities will take place throughout the district’s term. Property owners and business owners will have the opportunity to receive financial assistance from CCDC for public improvements associated with their property and projects.
There are a number of convenient ways to participate in the district formation process. Stay up-to-date on the project by signing up email updates here. You can share your ideas about projects you want to see happen or questions you may have about the process here. We invite you to attend public meetings to learn more about the planning efforts and to share your feedback. Learn more by visiting the Open House page.
When an urban renewal district is formed, the county assessor establishes the current “base” value for each property in that district. As property values rise with public and private investments and new development, that “incremental” value generates taxes that go to the urban renewal agency to pay for public improvements and other revitalization activities in that district.