Economic Improvement District

Economic Improvement District

Economic Improvement Districts (“EIDs”) are public-private partnerships in which local property and business owners elect to make a collective contribution to the maintenance, development, and promotion of their property. EIDs provide a unique and straightforward economic and community development tool for municipalities, developers, and property owners because they allow targeted control, financing, and development of projects without creating an additional financial burden on taxing units. Oregon EIDs were established under ORS 223.114.

Yes! There are over 1,000 EIDs throughout North America, many concentrated in downtown areas. Nearby cities such as Bend, McMinnville, Albany, and Astoria have long-standing and successful EIDs in their downtowns.

Supporting the EID enables the district residents and businesses to receive services above and beyond what the City can provide. The assessments collected go entirely to the district, with the sole focus of improving Downtown. The EID board of directors, made up of a wide variety of property and business owners in the district, make budget decisions which ensures direct accountability for these enhanced services. Lastly, EIDs have a track record of success. Nationally, they have a renewal rate of 99%, and there are studies that show they have a positive effect on property values, sales, and occupancies.

Contingent would be on why the building is vacant. Parcels that have a vacant building are subject to the assessment. If we determine assessed property owners would benefit from services being provided to the vacant buildings (i.e., clean & safe activities, business advocacy, etc.), the property owners whose land has a vacant building can be assessed.

Zoning, use code, parcel square footage, linear frontage, building square footage. The complexity of the assessment methodology is contingent on the data available to us (i.e., we don’t always have complete building square footage data)

Typically, an EID has a term of 3 years and can be renewed for an additional 3-year term if it receives support. In the event that an EID is not renewed, the City Council has a few options. They can choose to 1) distribute the funds proportionally among property owners, once all EID debts are settled; 2) utilize any excess funds for further economic improvements; or 3) employ a combination of both options.

The City’s finance department will treat each property owner assessment as an account payable and the specific collection process may be at the City’s discretion.

Stakeholder education & support (property owner & City staff/elected); consensus on EID parameters; incomplete data.

Yes it has been attempted but failed to be adopted. 

Depending on the lease agreement the fees could be passed down the business owners. Or the building could choose to put it in the lease cost or absorb it. In any case, the assessment remains the property owner’s responsibility.

The most effective improvements implemented by EIDs include Clean & Safe initiatives, Beautification projects, Marketing & Special Events, and Advocacy/Support from property owners to sustain and renew the EID. The effectiveness of the EID is measured by various factors such as reduction in crime rates, improved cleanliness in downtown areas, increased number of businesses opening, higher visitor footfall, and feedback from property owners.

Nearby cities in Oregon who have successful EID’s are Bend, McMinnville, and Albany. See PDF on EID Comparable Markets in Oregon. Click Here

Another cities (EIDs are known as PBIDs in California): Midtown Sacramento; Pasadena; Downtown Roseville ; Downtown Burbank ; Antelope PBID

The feasibility study is expected to be completed within 2-4 months. Following that, a formation process would begin, involving the creation of legal documents that outline the EID parameters, such as assessment methodology, services, budget, and boundary. Property owners would then petition the City to establish the EID. The City would conduct public hearings and pass a formation ordinance if there is no significant protest during the period. The duration of this process can vary, taking approximately 6 months depending on the level of engagement and support. The services offered at each level would be determined based on the level of benefit received.

EID services must beneficial to all assessed property owners proportionately, and parking lots can’t be assessed.

The decision to pass on the difference between a BID and EID to tenants rests with the building owner. While the assessment can be transferred to tenants, it is ultimately the property owner’s obligation, not the tenants’.

EIDs tend to fail for several reasons, including lack of engagement with key constituents, lack of unified direction, insufficient organization, poor leadership.

Yes, the only parcels that are legally exempt are those zoned as parking lots, residential or religious.

The assessment information would be included in the ordinance. During the hearing process, each property owner will be notified of their assessment and it will be further discussed in the Second phase of the process. The first phase involves a feasibility study which includes town halls, education sessions, and more.

Generally, properties owned and occupied by the owner tend to have higher success levels. This can be attributed to the owner’s personal attachment to the area and their willingness to support initiatives. In contrast, investors, who may not have a direct connection to the community, are often harder to reach and may not recognize the immediate need for services.

To Be Determined

No, only exemptions are for parcels zoned as parking lots, residential or religious. However, the EID can implement their own exemptions if it’s determined these property owners will not benefit from services.

It can be passed down, but it’s the property owner’s responsibility.

There isn’t enough data available on EIDs to provide an average rate. This is a complex question as it relies on the assessment methodology a particular district uses.

On a macro level, by promoting the district as destination and center for commerce, travel, residence, and play. On a micro level, in the same ways that DMA does as a portion of the funds would be directed towards DMAs operations. Community events (M3F), retail campaigns (shop local), education, resources, etc.

Absolutely!

60% – DISTRICT DEVELOPMENT, BEAUTIFICATION, & ACTIVATION

Focus on positioning the district as a vibrant commercial center through services aimed at increasing commercial activity and investment appeal. 

Examples

• Implement infrastructure and facade improvement programs to enhance street-facing properties, attract customers, and enhance the downtown Medford streetscape.

• Support and educate businesses, start-ups, and property owners in locating buildings, filling vacancies, and ensuring  business plans are viable and sustainable.

• Support events within the assessed district which may attract increased visitation and time spent.

28% – ADVOCACY

Examples

• Grant writing to acquire institutional funding of large projects that enhance assessed properties and the overall assessed district.

• Collaborate with other non-governmental organizations whose missions and interests overlap with the interests of the assessed property owners.

• Bringing urban planners, visual designers, or community builders from across the nation to Medford to speak to the Medford community.

11% Administrative, Contingency, Collections

• Administrative | Costs may include rent, telephone charges, legal fees, accounting fees, postage, administrative staff, insurance, and other general office expenses and administration costs.
• Contingency | An account for annual operating surplus or uncollected assessments.
• Collection | City shall be responsible for the collection of assessments and the Finance Department shall treat each assessment as an account payable. The assessment may be paid in quarterly-annual installments including any interest. The City shall be reimbursed with EID funds for the costs of administering and operating the EID.

The EID Service Plan will only affect properties within the EID District.

Your next question might be can a property opt-in? Yes

And your next question might be can a property in the district opt-out? No

Yes, a property outside the district could opt-in to help with the vibrancy of the district. 

No, a property inside the district will not be able to opt-out. 

(a) Parcels within the District will be assessed annually on the basis of actual parcel size (in square feet) and ownership classification, according to the following tiered structure:
1. Reduced Rate Parcels. Parcels owned by a government entity or a nonprofit organization qualifying under section 501(c) of the Internal Revenue Code shall be eligible for the reduced assessment rate of $0.075 per square foot.

2. Standard Rate Parcels. All other non‐exempt parcels shall be assessed at the standard assessment rate of $0.10 per square foot.
(b) Any parcel that meets the ownership criteria described in (a)(1) may elect to be assessed under the reduced rate provided herein, provided that:
  (i) When the assessment district is formed or in the annual assessment notification, The property owner submits a written notice to the City (or its designated administrator) specifying that the parcel chooses the reduced rate;
  (ii) The parcel remains owned by the government entity or nonprofit organization and continues to satisfy the eligibility criteria;
  (iii) If ownership or status changes such that the parcel no longer qualifies under (a)(1), the parcel shall revert to the standard rate for subsequent assessment years.

revert to the standard rate for subsequent assessment years.

All tax lots within the district are subject to assessment, regardless of their nature or primary use (including, but not limited to, parcels designated as alleyways or rights-of-way), with the following specific exceptions:

The following property types shall be excluded from the assessment:

• Parking lots (though lots whose primary use is not a parking lot but simply contain off-street parking for the associated primary use are assessed the full amount)
• Residential property (specifically properties whose primary use is residential, regardless of whether the zoning is residential or commercial. Properties whose primary use is commercial are assessed the full amount even if they contain a residential apartment)
• Religious-owned property

Estimated $90,000 collected annually

60% – District Development, Beautification, & Activation

28% – Advocacy

6% – Administrative

4% – Contingency

2% – Collections

See service plan for more details.

The MEID may have up to a three (3) year life. Near the end of the term, Council may enact an ordinance that renews the EID for a maximum of three (3) years by following all the required steps to formation.

Bear Creek Bridge on the West to Oakdale on the East

6th Street on the South and 8th Street on the North

See map at the top of the page. 

Estimated 11 properties owners are from out of the area.

Estimated 13 properties are owned by non-profit organizations.

The City of Medford is responsible for administering and operating the MEID; however, the City may contract with the Downtown Medford Association (DMA) to carry out the administration and operation of the MEID. Additionally, the City Council may authorize agreement(s) with an Advisory Committee to provide all or part of the economic improvements.