Urban Renewal Agency

CITY of LA GRANDE JOINT CITY COUNCIL/URBAN RENEWAL AGENCY RETREAT Tuesday, January 28, 2025 6:00 p.m. Council Chambers La Grande City Hall 1000 Adams Avenue La Grande, Oregon You can view the Council Retreat on Facebook Live at the following link: https://www.facebook.com/CityofLaGrande/live_videos/ AGENDA The purpose of the Annual Agency/Council/Staff Retreat is to exchange ideas with Staff and establish Goals and Priorities for the upcoming year. The Goals/Manager Priorities then become the focal point of budget development for the 2025 ~ 2026 Fiscal Year. Council/Agency decisions are not made during a Council Retreat; but, rather, direction is provided to Staff in connection with the identification of the Goals to be scheduled for adoption during the February 5, 2025, Regular Sessions of the City Council and the Urban Renewal Agency. While the Annual Retreat is open to the public, public comments will not be entertained during the Retreat. Members of the public are routinely provided with an opportunity to engage the Mayor and Council/Agency during the Public Comments portion of each Regular Session Agenda. Per ORS 192.670(1), some Councilors/Agency Members and/or Staff may be participating in this Work Session by electronic communication. 1. CALL to ORDER/WELCOME 6:00 p.m. ~Justin Rock, Mayor 2. CITY AND URBAN RENEWAL ECONOMIC DEVELOPMENT RETREAT TOPICS/SEQUENCE (Please Refer to Attached) ~Robert A. Strope, City/District Manager 3. ADJOURN 8:30 p.m. _________________________ Stacey M. Stockhoff City Recorder Persons requiring special accommodations who wish to attend the Work Session are encouraged to make arrangements prior to the meeting by calling 541-962-1309, or emailing Stacey Stockhoff, City Recorder at sstockhoff@cityoflagrande.org. The City of La Grande does not discriminate against individuals with disabilities.  City and Urban Renewal Economic Development Retreat Summary January 28, 2025 Green type indicates actions Staff intends to take, indicates the item is informational only, or guidance is requested. Vision Statement: The City of La Grande is the economic, educational, recreational, and cultural hub for eastern Oregon, with a family oriented, small-town character. (City’s current Vision Statement with the goals specifically related to Economic Development highlighted below) Goals to support our vision: G1 Enhance and grow our diverse economy through innovation, partnerships, and relationships, to capitalize on our existing strengths while seeking new opportunities. G2 Take full advantage of the benefits of our thriving educational community, anchored by Eastern Oregon University. G3 Promote the natural beauty and resources of the Grande Ronde Valley, which provide recreational opportunities and quality of life benefits that complement our economic development objectives. G4 Showcase La Grande as a culturally-rich city with a strong sense of identity, pride, and environmental awareness that preserves our heritage. G5 Foster a family-oriented community with high quality amenities, including excellent parks, safe neighborhoods, and outstanding schools. G6 Champion public involvement and civic leadership that values economic, ecological, and social stewardship, while maintaining our small-town character. 1. Economic Development Strategy a. Recruitment/Business Attraction: i. Continue proactively pursuing our current priority industry sectors: 1. Recreational Manufacturing and Retail. a. Anything tied to the outdoors to maximize our assets. 2. Timber Industry. a. Mass Timber (Cross Laminated Timber). b. Woodgrain - Kronospan (Supply Chain). c. Other wood product related manufacturers. 3. E-Commerce. a. Businesses that rely on the internet and work from home. b. Distribution. 4. Small scale manufacturing and micro production. a. Small scale consumer products. b. Locally produced /packaged food & beverages. ii. Continue to respond to all inquiries and leads regardless of industry sector. iii. Incentives 1. Current incentives are limited to Call for Projects and Traded Sector/Business Park Call for Projects Business Attraction Incentive programs in the Urban Renewal District (URD) and the Enterprise Zone for Urban Growth Boundary (UGB) expansion area. iv. Industrial development/recruitment: 1. La Grande Business and Technology Park 2. UGB Expansion Area a. Large lot industrial with Enterprise Zone incentives Staff is not recommending any changes in the above strategies at this time. v. Commercial development/recruitment. 1. Commercial Land Needs Analysis and Comprehensive Plan Goal 9 Update/Goal 14 UGB Expansion. a. The City has completed the Commercial Land Needs Analysis and Comprehensive Plan Goal 9 Update to potentially increase our inventory to allow for new development. The City Council held a Work Session 1  in January, 2025, on the Goal 14 Urban Growth Boundary Expansion (UGB) efforts. While there is a demonstrated need for additional commercial and industrial lands, there are no willing land owners who support an expansion of the UGB. Therefore, the next step will be for the City to accept the report but not to move forward with any expansion of the UGB until such time a project surfaces that requires an expansion. This item in informational only, no Agency guidance is requested. b. Retail Recruitment and Downtown Redevelopment: i. Retail recruitment. 1. Continue proactive recruitment using existing leads previously generated by Buxton and new leads when identified. 2. Focused efforts in concert with La Grande Main Street Downtown utilizing their most recently adopted Strategic Plan. ii. Downtown redevelopment—(See Call for Projects). iii. Refine and implement a plan for the Redevelopment of Jefferson Avenue. Steering Committee will work with Main Street and City Staff to develop implementation strategy once Council has reviewed and adopted the plan Staff is not recommending any changes. c. Business Assistance, Retention, and Expansion: i. Resume large employer visits. ii. Business Retention and Expansion. 1. Based on the 2022 survey data, we are looking at 4 key points of focus including: a. Workforce challenges and the ability to recruit, and retain labor/talent. b. Minority business owner support and outreach. c. Business support and training particularly marketing and expanding online presence. d. Business retention and expansion assistance, with an emphasis on assisting start up and micro businesses transition from home and internet based, to brick and mortar locations. Staff is not recommending any changes. d. Create a culture of entrepreneurialism. i. The department continues to conduct entrepreneur outreach to identify small business needs including potential training and incentives. ii. City has received a $50,000 Business Oregon ROI Grant to continue developing our local Entrepreneur Ecosystem including potential advancement of a Shared Use Commercial Kitchen Facility. iii. The City participated as a member of the 2024 Recast City Cohort. This national program focuses on identifying and developing small scale manufacturing as an economic development strategy for revitalizing downtowns and historic commercial districts. The department has identified over 70 small product manufacturers in and around La Grande. Staff is not recommending any changes. e. Continuation of non-URA Funded Economic Development efforts i. Validate intent to continue to dedicate funds and resources to marketing non-URA industrial properties. 1. UGB large lot industrial site. 2. Large lot commercial efforts. The current percentage of the Economic Development Director’s salary is 70% URA and 30% City General Fund and we have limited City dollars included in the Materials and Services budget to allow for funding of non-URA efforts. Staff is not requesting any revisions to this allocation. 2 2. Partnerships i. We currently work closely with all local and regional partners in the Economic Development and Tourism industry. Timothy is a La Grande Main Street Downtown Board Member and Robert is a member of the Northeast Oregon Economic Development District (NEOEDD) and the Northeast Oregon Business Development District (NOBD) Boards. ii. Staff coordinates monthly meetings with key local economic development partners including The Union County Chamber of Commerce, La Grande Main Street, Union County, Eastern Oregon Visitors Association, and OTEC. This item in informational only, no Agency guidance is requested. 3. Urban Renewal Programs a. Historically we have budgeted new funding of $350,000 for non-Business Park Call For Projects (CFP), $100,000 for Business Park CFP, and $50,000 to $75,000 for the Façade Program each year. We combined the Business Park CFP with the Traded Sector into a new program with a budget of $425,000. We are maintaining the Agency Initiated project program, which we have not accessed yet, at $500,000. The current fiscal year budget has the following uncommitted, remaining balances for these programs, excluding Façade and carried over CFP funding: CFP $350,000 budgeted Traded Sector/Business Park $425,000 budgeted, $425,000 remaining Agency Initiated $500,000 budgeted, $500,000 remaining Total Budget: $1,275,000 Remaining: $925,000 Staff contemplating proposing: CFP $350,000 Traded Sector/Business Park $425,000 ($425,000 carried forward from prior years) Agency Initiated Project $500,000 ($500,000 carried forward from prior years) Total: $1,275,000 (Less $925,000 carried forward from prior year for $350,000 of “new” funding) Note that the funding amounts shown are not being approved as part of the Retreat process and will not be finalized until the District Manager/Budget Officer submits a Proposed Budget for Budget Committee approval and subsequent Agency adoption. b. Call for Projects i. Funding ($350,000) 1. Non-Business Park Projects: $350,000 per year has been allocated for this program the past few years based on revenues to URA with an under levy. Current year all $350,000 was awarded. ii. Policy revisions. 1. The Agency approved policy revisions in December, 2024, no other changes are being considered at this time. iii. Traded Sector/Business Park Call for Projects Business Attraction Incentive Funding ($425,000) 1. No applications have been received for this program. Intent is to carry funds over to next year. Staff is not recommending on any changes to these programs. c. Agency Initiated Funding Program i. Funding ($500,000 of one-time funding in current year’s budget) 1. The program is designed for the Agency to identify a project to fund on their own initiative and consideration of the funding would include a transparent, public process. Staff is seeking guidance from the Agency regarding this program. 3  d. Façade Program i. $75,000. ii. Policy revisions. 1. The Agency approved policy revisions in December, 2024, no other changes are being considered at this time. Staff is not recommending changes to the Façade Program or funding level. 4. Partnerships e. La Grande Main Street Downtown i. The Agreement with LGMSD runs through June, 2025. Under the agreement they are required to maintain the Performing Main Street level status as well as raise a minimum of $25,000 each fiscal year. Current funding is $25,000 a year from the Agency. It is anticipated LGMSD will request additional funding this spring, likely to $50,000. The $25,000 contribution has remained at that level since the organization was formed over a decade ago. 1. Part of last year’s annual report from their Board was the desire to request increased funding from the Agency in support of the program. The Urban Renewal District benefits in the following tangible ways: a. Access to Oregon Main Street Grants: i. Since 2017, four grants have been awarded to properties in La Grande, one grant for every cycle that funds were available. The program has increased the maximum funding from $200,000 to $400,000 per project and it is anticipated that at least one project will be submitted for consideration by LGMSD this year. ii. Below are the grants received with the grant match provided by the owner: 1. IOOF Building $100,000 grant, $588,553 match 2. Liberty Theatre $200,000 grant, $60,000 match 3. Evermine Building $200,000, $170,200 match 4. Bohnenkamp Building $200,000, $623,000 match 5. Total grant awards: $700,000, match $1,441,753, total investment $2,141,753 b. Façade Program administration: i. LGMSD works with applicants for these grant to improve properties within the District, including outreach, acceptance and screening of applications, assisting applicants with potential projects, making funding recommendations, and monitoring progress and completion of projects. This frees up Agency/City paid staff for other work. 2. In regards to the renewal of the agreement between the Agency/City and LGMSD, the District Manager recommends it be renewed and that an increase of funding to at least $40,000 be considered. As part of the renewal process, there may be language revisions recommended as well given the challenges in meeting the minimum fundraising requirement in recent years. Staff is seeking guidance from the Agency regarding this program. 5. Capital Projects a. There are two potential significant capital projects which could be pursued by the Agency. One is the continuation of the Streetscape the other is the Jefferson Avenue Redevelopment Project: i. Streetscape 1. At last year’s Retreat, the Agency reached consensus on limiting future improvements along Adams Avenue only to Greenwood, with other 4  improvements along the cross streets for later consideration. Funds were not included in the current Agency Adopted Budget, with the intent of Staff developing cost estimates for this limited scope of work. Due to other priorities, the estimates have not been completed. ii. Jefferson Avenue Redevelopment 1. This effort supports several large-scale redevelopment projects either in progress or recently completed, and potentially help leverage additional redevelopment as several properties along the corridor are preparing for transition of ownership. The street and sidewalks are severely deteriorated and any efforts to redevelop and attract new tenants will be hindered by the current conditions along this corridor. The proposed efforts also align potential redevelopment with adaptively reusing some of these spaces for a growing number of new and scaling small scale manufacturing and product making businesses. 2. Though it is not anticipated that any construction would occur in the immediate future, staff does plan to seek grant funding for public improvements along the corridor and would like the Agency to consider allocating funding for potential grant match for design and/or construction as part of the FY 2025-2026 Budget. Staff is seeking guidance from the Agency regarding the prioritization of these projects as well as funding considerations as they may pertain to the upcoming budget year. 6. Budget Related Issues/Fiscal Management f. Continue to implement the Urban Renewal Plan with base-line funding for full-time Economic Development position and core URA Programs. i. Current Goals from Agency approved Economic Development Strategy: 1. Ensure programs are achieving goals and needs of business. 2. Continue business recruitment efforts. 3. Continue business retention and expansion efforts. 4. Create a vibrant Central Business Zone (CBZ). 5. Encourage Entrepreneurial and small business development as a key strategy. g. Validate continuation of Urban Renewal Agency (URA) Under Levy—Agency perspective. 1. As of this writing, and assuming the Agency supports the program funding levels suggested above, the under levy amount would be very similar to the current fiscal year. 2. Should the Agency seek to reduce or suspend the under levy for any of the following reasons? a. Increase program funding for Call for Projects or the Agency Initiated Funding Program? b. Increase URA Fund balance? i. This could allow for funding of larger projects in the future without incurring debt. ii. The amount of an Under Levy drives both the City General Fund and URA Budgets. Does the Agency have any guidance regarding an Under Levy?. 5  City/District Manager’s Top Priorities Fiscal Year 2024-2025 (Approved by the City Council on February 7, 2024)  Fiscal Management o Continue to manage the City’s finances within limited resources to provide highest possible level of service to the City of La Grande.  Street and Road Infrastructure o Act on the recommendations of the Parking Traffic Safety Street Maintenance Advisory Commission (PTSSMAC) to address the condition of the infrastructure including potential funding options.  Housing o Continue to Implement the Comprehensive Housing Production Strategy (HPS) as adopted by the City Council.  Economic Development o Continue to implement the Urban Renewal Plan and economic development strategy as approved by the City Council/Urban Renewal Agency.  Staffing o Continue to take necessary actions to address critical staffing issues including, but not limited to, hard to fill positions and succession planning for key positions.  General Fund Capital Improvements o Identity funding sources and strategy to address major capital needs.  Emergency Management Planning o In concert with Union County and other agencies, take actions to assure La Grande is prepared in the event of an emergency, including but not limited to major incidents, flooding, wildfire, or other natural disaster.  Update the City’s Emergency Operations Plan  FEMA Maps and Land Use Code Amendments o Take all required actions regarding the FEMA Floodplain Map update submitted, including but not limited to responding to any requirements as needed throughout the process. o Complete the revisions and adoption of the City’s Land Use Codes as necessary. 1