Silverton expands urban renewal district, but not everyone is happy about it

SILVERTON – The drive into town is not picturesque.

As visitors arrive through the northern gateway to Silverton along Highway 214 as it transitions into North 1st Street, visitors are greeted by an industrial area — metal buildings about 40 years old and no sidewalks. It that lacks the style much of the city possesses.

The area is considered blighted.

The Silverton City Council recently expanded its urban renewal district by 20 acres in the north end of the city to give it more options for revitalizing the area.

“In this case, the 1st Street expansion, I really see that as a general good because that is an area of blight,” councilor Laurie Carter said. “As you come into town, it looks really trashy. And it’s not to the benefit to the whole community to have those trashy entrances.”

But not everybody is happy about it.

City councilor Jim Sears fought against adding the area into the urban renewal district and instead wants a residential area included.

Silverton’s urban renewal district was created in 2004, and the businesses within that district have been paying into the district since then.

The handful of businesses added in the expansion of the urban renewal district will pay approximately $46,000 into the fund during the current plan, which likely will go through 2024 when it reaches its $12.7 million cap.  

But the businesses added will be eligible for some of the funds property owners already in the urban renewal district have paid in.

“Those people who are now in the new district, they can come in and request funds,” Sears said. “Now they have an opportunity, and those properties haven’t paid in.”

What is an urban renewal district?

Urban renewal districts divert tax money that would otherwise go to other entities like fire districts into a separate fund, and that money is designated to encourage investment in existing infrastructure and buildings to increase the value of the properties in the area and create new jobs.

Since Silverton’s urban renewal district was started in 2004, $3.8 million has been spent, including $1.8 million on private projects.

The expanded urban renewal district includes Jefferson Street and Mill Town Pub & Historic Restaurant on Mill Street.

Businesses on North 1st, including Harley’s Coffee, Silverton Import Auto, Abiqua Landscape Products, Silver Lining Auto Restoration, Pro’s Custom Cabinets, Silver Creek Auto Body and Withers Lumber are included in the expanded urban renewal district.

Among those who have expressed support for the expansion are Bob Knodel, owner of Silver Creek Auto Body.

Most of the buildings in the area were built between 1946 and 1997.

Over the past 10 years, there has been $145,825 in recorded improvements to buildings in that area, less than 3 percent of the assessed value.

Were someone to develop one of the vacant properties in the boundary, it would add to the tax base.

“If anybody develops on those, there’s huge … potential for income into the urban renewal fund," councilor Dana Smith said, "because you’re freezing tax base on bare property and then you build on it, everything above that bare property tax base goes into the urban renewal fund. I see adding the bare properties as nothing but a good thing.”

The urban renewal district has limited funds remaining with $444,330 on rehabilitation and $28,353 in new construction.

But the businesses will be eligible to apply for existing urban renewal district funds.

“They’re not going to put a lot more money into the district,” Sears said  of the businesses just added to the area. “The district doesn’t end up getting more money (in the) long run. They’re going to get it anyway because the district’s already formed, they’re getting a $12.7 million cap.”

Some of the Silverton businesses that have previously benefited from urban renewal funds include Silverton Falls Ale House, Lewis Street Crossfit Gym, Gather Restaurant, Main Street Bistro, Willamette Valley Pie Company and Gear-Up Coffee.

The urban renewal funds also have been used for park improvements, kiosks, directional signage, trash cans and light fixtures downtown.

The sidewalks end at the edge of the previous urban renewal district, and there are businesses that have benefited from funds from the district.

Silverton's Seven Brides Brewing has closed

Seven Brides Brewing, which is located just south of the expanded urban renewal district on 1st Street, received a grant of $50,000 from the fund to upgrade its building and $9,119 to construct an outdoor patio.

Seven Brides closed its taproom and restaurant in October 2018, though it continues to operate as a brewery.

Other areas that need help

Sears has long been an advocate of expanding Silverton’s urban renewal district.

But instead of expanding it in north, he sought to expand it into the Northside Addition – also referred to as “mill town” – a residential area of Silverton which similarly lacks sidewalks and has many buildings in need of improvement.

“To me, that’s blight,” Sears said. “I advocated that we include that area so those folks could get some relief. 

“And the reason it hasn’t got support is that the agency has pretty much earmarked the funds for commercial. There hasn’t been any dollars spent for residential.”

The city council has added the Northside Addition for a future focus area and has set a goal of providing funding options to use the area as a model for other areas of the city.

Sears also advocated adding the Pettit Property – 80 acres adjacent to the Oregon Garden the city owns about which development has long been discussed – into the district.

But neither was added into the current urban renewal district.

bpoehler@StatesmanJournal.com or Twitter.com/bpoehler