City budget committee learns of underperforming revenue generation in urban renewal district
By Anne Scheck
Trammart News Service, April 25, 2025
A clearer picture of why the municipal debt tops $30 million emerged this week – and it ties to support and preparation for Independence Landing, the riverfront urban renewal project.
By the end of the 2023-24 fiscal year, the city was owed $6.4 million by its own urban renewal agency, despite expectations that resulting property-tax increases would be able to support the loans that the city sunk into the development, according to Finance Director Rob Moody. He acknowledged that the results “haven’t played out as expected.”
The information arrived prior to the city budget committee’s second meeting, which was held Wednesday night. During the meeting, City Councilor Dawn Roden, who had made the same inquiry at a city council work session the day before, asked about this year’s shortfall of more than $750,000.
The cause hasn’t yet been fully addressed, though the budget last year was said to be balanced upon approval by the city council. This year city administrators, including City Manager Kenna West and Moody, said the city is spending more than it is taking in.
The report by Moody was provided to city councilors after their work session Tuesday evening, when they convened as the Urban Renewal Agency. The councilors learned that the city-borne expense of turning a riverside stretch of land once owned by a gravel company into a shovel-ready site, as well as providing incentives for building, ticked up to nearly $8 million by the time the first phase of the project, the Independence Hotel, opened its doors roughly five years ago.
For example, about $2 million of charges for infrastructure to the developer, Tokola Properties, was waived during construction, according to the disposition and development agreement. The private-public partnership between the city and Tokola was announced in 2017; Groundbreaking for the hotel took place in 2018.
The city council at the time – which was headed by Mayor John McArdle and included present-day councilors Marilyn Morton and Kathy Martin-Willis – was cautioned about the possibility of accumulating debt by outside city auditor Kamala Austin, of Merina & Company at a city council meeting. She also noted that Independence was also being affected by subsidizing the municipal fiberoptic, MINET.
A consultant hired by the city showed that the urban renewal debt repayment would come from a special part of the property tax designated for the area – called Tax Increment Financing – that was collected exclusively by the city. However, the actual proceeds for that fell short by nearly a million dollars of what was predicted, according to Moody’s recent presentation.
Refinancing on the bonds and loans was undertaken for some of the pending obligations – with a 50-50 split on repayment coming from the city and the Urban Renewal Agency, which contains Independence Landing’s 120-plus apartment complex and hotel. However, this arrangement meant depletion of the city’s General Fund, Moody explained.
Currently, a payback to the General Fund for those loan amounts seems to rely on the cash flow generated by the Urban Renewal District, he pointed out.
Moody said an outside consulting firm, hired with grant funding, is expected to weigh in on that determination – and to provide an analysis “to support a path forward” in repaying the debt.
So far, the proposed city budget calls for cuts that include closing the library an extra day per week, combining the library with the museum, selling the museum's downtown building and putting at least one park up for sale. But the recent report by Moody also raises a question previously raised by some residents: Why sell those current assets without trying to market one or more of the three relatively large lots of city-owned property in the Independence Landing area?
The city budget cuts will be discussed this Wednesday, April 30, at the budget committee meeting at 6:30 pm in the City Council Chambers at the Independence Civic Center, 555 S Main St.
EDITORIAL NOTE
Keeping tabs on city meetings --Anne Scheck
If you're wondering how you can find the meetings of the Independence Urban Renewal Agency, I have found a way. It is w-a-y below, and thank you to City Recorder Myra Russell.
A word of advice: If you are depending on the city calendar to guide you to meetings, as apparently several residents do, perhaps you may wanna fuhgeddaboudit, as they say in 1940s mobster movies.
In fact, this is how I've met a few locals – by using the city calendar, then standing in the foyer of city hall, with a couple of us asking each other: "Wasn't there supposed to be a meeting tonight? It was on the city calendar."
On Tuesday night, the city calendar noted that there was a city council meeting – actually, a work session – but no mention of a meeting of the Urban Renewal Agency. It followed the work session, with exactly the same people (city councilors).
This turned out to be an important meeting, at least in my view.
I learned that the financial squeeze on the city is more like a huge vice grip, the kind that you might expect from a starving python. I'd discovered the meeting quite by accident. I tuned in to the video of the work session, to make sure I got all the information, after leaving the meeting a bit early.
Whoa, was I wrong. There was the Independence Urban Renewal Agency being held, seemingly without public notice.
I filed a grievance with the city. If you don't know what that is, allow me to inform you that it is fairly new for all cities in Oregon. A bill passed by the legislature allows official public-meeting law complaints for those who feel a public meeting wasn't advertised. Anyone can submit one with their city.
FYI, Springfield, near Eugene, has a good one that you could adapt for using in Independence. You can google it!
As it turns out, City Manager Kenna West assured me the meeting was "noticed separately" and the agenda was posted, legally.
Well, I just couldn't find it. So, the hunt was on ...
The city calendar was no help. Following the link posted there took me to an erroneous city council date of May 13, despite the fact that this was April 22.
I sent a couple of screen shots to city administration. I thought this might prove convincing. But apparently it only showed that I was looking at the wrong agenda. This is because, again, to repeat myself, I was using the posting on the city calendar.
The information was noticed correctly, West said. It was at the bottom of the "Agendas & Minutes" heading and section that one can click from the main homepage of the city website
The fact that "it was overlooked by you or others does not translate to a failure of notice," West stated in her email response to Trammart News. "We cannot be held responsible for individual oversights or assumptions," she added.
So, I withdrew the grievance.
Meanwhile, City Recorder Myra Russell sent me two ways to be able to check on meetings. The first is to sign up for meeting notices. You can sign up using the city's Meeting Portal.
To do so, visit: City of Independence - Subscribe; choose the board/commission you would like to get notices about and complete the entry information. You will then get an email to confirm your subscription – you must click on the link inside that email to complete the process, Russell advised.
As far as agendas of upcoming meetings, if you go to the city website and then proceed to “Agendas & Minutes” on the front page, it takes you to the Agendas and Minutes page. If you scroll down, you will see all the meeting dates and agendas posted there for the various city boards, commissions and of course, the city council. If you click on the “HTML” or “PDF” you can bring up the agenda for that meeting, according to Russell. ▪
Anne Scheck, Trammart News & Publishing
Editorial contact
[email protected]
(503) 409-9204
An inside look at Polk County Fairgrounds & Event Center -- and the proposed levy for it
By Anne Scheck
Trammart News Service, April 25, 2025
In the more than 25 years since she joined the staff of the Polk County Fairgrounds, Tina Andersen has battled bouts of scorching heat during the annual rodeo, addressed special crowd-control issues involving guinea pigs to goats and answered some of the same inquiries thousands of times – “Where’s the bathroom!” – in her role as manager of the fairgrounds and event center.
But now she’s fighting misinformation. As the campaign for a levy to help pay for maintenance of the fairgrounds goes forward, Andersen has seen online commentary that’s so far afield from fact-based she has trouble believing someone would post it.
However, she’s in the unenviable position of being relatively unable to address much about a levy vote on the May ballot, except for basic information. She works for the county, leaving her little room for advocacy.
So, when someone erroneously observes online that the fairgrounds don’t get enough grants, she can only counter that a fairly big one, of $130,000, was awarded by The Oregon Cultural Trust.
And, as criticism rolls in that the fairgrounds have limited offerings, she can point to a list disproving that – ranging from a venue for homegrown musical groups like The Joe Shinkle Band to the annual Gem & Mineral Show, which returns every year. That event draws huge throngs of people, including busloads of school children on field trips to learn about geology through hands-on experience with rocks and stones and led by experts in the field.
Though many people associate the facility with the county fair because both 4H and FFA groups prepare for it annually, there are lesser-known events that serve the community. A regular senior fitness class is provided in one building – at no charge to organizers, Andersen said. Additionally, children and youth who need a place to practice their sport in winter can access a building for free, she added.
Tim Ray, who chairs the Polk County Fair Board, is not under the same constraints about levy campaigning. “As Chair of the Polk County Fair Board, I am proud to speak in support of the Polk County Fairgrounds and Event Center Operating Levy,” he said. “This levy is not just about funding – it’s about preserving a space that brings our community together, supports youth development, and strengthens the local economy,” he added.
During the pandemic, the "Labor Day Fires" of 2020 left many homeless but some found temporary housing at the fairgrounds – 75 families were there, including many of their animals. Horses and sheep were housed along with family pets like dogs.
The community outreach was phenomenal, Andersen recalled. One man arrived with a trailer-truck that had a pair of washers and dryers, so laundry could be done on site. The Grain Station in Monmouth fixed dinner nightly with donated food; Neighboring Rookies provided breakfast burritos. Teens from 4H and FFA showed up constantly to care for animals.
Ray observed that the Polk County Fairgrounds and Event Center serves as a year-round hub for learning, celebration and connection.
Last year there were 642 events at the Polk County Fairgrounds, which holds a large monthly flea market, except in August. Family celebrations like quinceaneras and anniversaries are held there, too.
As a result of keeping ticket prices and vendor fees low, needed work will be undertaken with the five-year levy. It calls for taxing property owners in Polk County 15 cents per $1,000 of assessed property value – believed to be among the lowest of any proposed tax increase in recent history.
“This modest levy will ensure that we can continue to operate, maintain, and improve the fairgrounds for generations to come,” Ray said. “It will help cover essential costs, such as safety improvements, equipment maintenance, and infrastructure repairs, which cannot be met with existing funding.”
In year one of the levy passage, electrical upgrades will be tackled. By the end of year four, it’s hoped a stage or amphitheater can be installed at the northwest corner of the property.
“This levy reflects our shared values. It honors our rural heritage, invests in our youth, and keeps Polk County’s traditions alive,” Ray said.
The levy offers the means to support and sustain a space that belongs “to all of us,” he said. “It’s a vote for community, opportunity, and the future of Polk County,” Ray stressed. ▪
Downtown historic building renovation project in need of building permit
By Anne Scheck
Trammart News Service, April 25, 2025 A mercantile that sold dry goods on Main Street in Independence more than a century ago is being returned to its former historic storefront with the addition of large transom windows.
It’s only missing two items. One is a large glass pane needed to help finish the project and the other is a building permit.
A building permit? That’s right. The building’s owner Ted Baker of Portland, who formerly restored the Independence Opera House, didn’t remember to get one.
He and Shawn Irvine, the Independence assistant city manager, have been so involved with the effort – which was grant-funded through “Diamonds in the Rough” from the state’s historic preservation office – that it seemed to have slipped through the cracks, according to City Planning Manager Fred Evander, who noted the permit was missing at the Historic Preservation Commission last week.
Baker expressed contrition over the lapse, explaining that he was bent on meeting the terms of the grant. “I honestly forgot that I also needed to apply with the city,” he said in a statement submitted to the HPC.
The commissioners approved the changes at the former 1913 emporium, which in that time period was known as “Wetherbee & Jones.”
After the meeting, Baker said his aim was to reinstate the original appearance of the building. He’s now on a quest to match the traditional lettering that once was on the building, at 284 and 286 S. Main Street, he said.
The newly refurbished structure, which once housed Lava River Forestry, has attracted interest from several prospective tenants, Baker confirmed.
However, he declined to identify who might be occupying the place where fabric was once sold under the heading “textiles” and clothing was billed as “ready-to-wear.” ▪