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Proposed downtown development authority draws questions about taxes, governance and community outreach
Summary
City staff outlined a proposed Downtown Development Authority (DDA) to finance downtown revitalization through tax increment financing, a replacement mill levy and use of parking assets; TAB members expressed strong concerns about public outreach, governance, and the tradeoffs of TIF on other city funds.
City economic development staff briefed TAB on a proposed Downtown Development Authority that would consolidate downtown and University Hill reinvestment tools, potentially replace two existing parking improvement levies and use tax increment financing (TIF), a property tax mill replacement and parking revenue to fund downtown investments.
Regan Brown, economic development strategy manager, said the DDA would not require findings of blight and would not have eminent domain authority; it would be governed by an appointed board and would require voter approval to form. "The DDA can support a wide range of investments from redevelopment, public spaces, mobility improvements, parking management, business support and infrastructure," Brown said. Staff floated three main funding strategies: TIF (capturing future growth above a fixed sales‑tax base), a replacement mill levy to replace existing GID levies, and continued use of off‑street parking revenues.
Board concerns and community pushback: multiple TAB members raised concerns about the DDA's size, complexity and potential to divert incremental sales tax that would otherwise flow to city funds. Members asked for clearer analysis of root causes of downtown decline, examples of specific projects the DDA would deliver, and more time for public engagement. Questions also covered governance (who appoints the DDA board), voting eligibility (only voters inside the district), and the mechanics and distribution of TIF revenues. Regan Brown said the plan of development would be approved by council and that the IGA and governance details would be negotiated post‑vote.
Why it matters: TAB members said downtown vacancy and changing office use are real policy problems but urged staff and council to improve community education about the DDA's effects and options and to show concrete project examples and financial modeling before asking voters to approve the measure.
Next steps: if council refers ballot measures, voters inside the proposed boundary would see three questions in November (create the DDA, approve the replacement mill levy, and authorize TIF). If approved, council would appoint the board and negotiate an intergovernmental agreement to transition parking assets over a phased period.
