Downtown Medford is now an 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.

Clean Sweep program unfortunately went away due to funding. DMA is open to help facilitate a quarterly cleaning committee and if the EID were approved and the building owner and/or merchants want this to be a priority.

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.

Please follow these links (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.

The assessments may be paid in quarterly-annual payments.

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!