County hears City of Bend’s three proposed TIF plans for housing; commissioners raise affordability and revenue trade-offs

City of Bend staff briefed the Deschutes County Board of Commissioners on April 16 about three proposed tax-increment financing (TIF) plans the city will consider to support four housing developments.

Jonathan Taylor, the City of Bend’s Urban Renewal project manager, said the three proposed TIF areas are meant to finance projects that together could add roughly 700 housing units, with a subset restricted at or below 90% area median income (AMI) for 30 years. Taylor said the proposed projects would contribute to 12% of Bend’s five-year housing goal cited in the 2025 Oregon Housing Needs Assessment and would restrict 153 units at or below 90% AMI. He said improvements are expected on historically underdeveloped parcels and that some projects emphasize local contractors and energy-efficiency measures.

Taylor and county staff provided budget-impact estimates. For the county general fund the annual average impact from the developments was presented as approximately $501 for one project example and, across taxing districts, an average annual impact of about $2,400 per year for the whole set of projects; the city presentation also estimated $3.9 million to schools, parks and fire over the life of a project. One of the three projects, located on land owned by Central Oregon Community College, was presented as having no net impact to county general-fund revenue because the frozen base is zero, though it would generate new tax revenue for other taxing districts when developed.

Commissioners pressed staff on affordability levels and asked why the assistance targets start at 90% AMI, with several saying that lower AMI targets (for example 60–80% AMI) would better serve renters who are cost‑burdened. City and county staff explained that the TIF policy is designed in part to encourage production of “middle” housing in the 90–110% AMI band as well as to work alongside other county and city programs that target deeper affordability (60–80% AMI), including the county’s existing tax exemption and a $5 million pro‑housing HUD grant the county is deploying.

Commissioners also questioned assumptions about parking and site design; staff said parking decisions are left to developers and vary by project, but that most projects presented include parking roughly on a per-unit basis. The board discussed the trade-off between foregone tax increment to support housing and the impact on revenue for county services such as law enforcement and 911, and county staff noted the projects would produce new tax revenue for schools and other districts over time.

No formal county action was required; staff asked whether the board wanted to submit a consult-and-confer comment letter to the City of Bend prior to the city’s May 21 hearings. Commissioners said they would consider submitting comments and directed staff to continue reviewing project materials and to bring any formal recommendation back before the commission if desired.

The City of Bend’s adoption timeline includes a public hearing on May 21; the county may submit comments by May 14 under the consult-and-confer schedule.