McMinnville Urban Renewal Board adopts annual financial report; members debate reallocating funds from Alpine Avenue

The McMinnville Urban Renewal Agency on the evening agenda adopted its annual financial report for the fiscal year ending June 30, 2025, and heard extended discussion about whether to shift money from planned new construction toward repair of existing downtown infrastructure.

Heather Richards, director presenting the report, laid out the agency's goals and project history and said the district has collected "about $4,100,000 in property tax revenue" through the 2025 fiscal year while noting that annual increment collections (about $684,000) remain below the earlier feasibility estimate of roughly $1.2 million.

The shortfall, Richards told the board, "means it may take longer to implement the projects in the plan, based on how we're collecting funds and can repay back those bonded projects." She also summarized project accounts: a property assistance program assigned $940,000 with about $618,000 invested in loans and grants (and about $133,000 repaid so far); a $1,000,000 parking allocation of which roughly $115,000 has been spent; and Alpine Avenue phase 1 and other streetscape work paid in part with prior bond funds.

The board discussed priorities during a question-and-answer period. Councilor Chenoweth urged the agency to "consider minimizing what we do with the Alpine District and instead repurposing as much of the money as we can" toward repairing existing downtown infrastructure, saying the downtown core has pressing unmet needs. Richards replied that changing the amount allocated to a named project would require a major amendment to the urban renewal plan — a process that could include revising maximum indebtedness or reallocating line items — and that such an amendment would involve consultation with overlapping taxing districts.

Richards and staff also described the Northwest Rubber site as a catalytic redevelopment opportunity, noting carrying costs through June 30, 2026 (utilities and security) and interest earnings of about $143,000 that the agency may use for projects that meet plan objectives.

The board then considered Resolution 2026-02, authorizing the annual financial report under Oregon Revised Statute 457.46. The motion, moved by Councilor Gary and seconded by Councilor Cunningham, passed unanimously. The Urban Renewal Agency meeting adjourned and the council reconvened in regular session.

The agency will return to design and budget items in coming meetings, including a recommended project-advisory approach for Alpine Avenue phase 2; staff estimated design to 100% construction documents would cost approximately $450,000.