Tax Increment Financing in Oregon: How TIF Drives Growth

Event Overview

Tax Increment Financing (TIF) is an economic tool which can assist in achieving community vision. This forum will discuss the generalities of TIF and how this program has been successfully utilized by Urban Renewal Agencies to create beautiful places throughout Oregon. As equally important, the panel will touch upon what challenges they encountered and the lessons they learned from these endeavors.

Speakers

Elaine Howard, Elaine Howard Consulting, LLC
Website, LinkedIn

Matt Lorenzen, Economic Development Manager, City of Wilsonville
.gov, LinkedIn

Will Norris, Urban Renewal Administrator, City of Hood River
.gov, Linkedin

Sid Sin, Urban Renewal/Economic Development Manager, City of Tualatin
.gov, Linkedin

Key Takeaways

TIF is Not a New Tax
Tax Increment Financing does not raise taxes or create new ones. It uses the increase in property values (above a frozen base) to fund improvements in underdeveloped or blighted areas.

Strategic Investment Leads to Long-Term Growth
Urban renewal funds are often used to catalyze development by improving infrastructure, amenities, or buildings—sometimes indirectly—making areas more attractive to private investment and increasing property values over time.

Quality of Life and Placemaking Are Central
Speakers emphasized TIF’s role in creating memorable and livable spaces—from Lake Oswego’s downtown village to Tualatin’s placemaking projects—reinforcing that urban renewal is about more than buildings; it’s about community vitality.

Successful TIF Projects Require Strong Public-Private Partnerships
All panelists highlighted that success hinges on collaboration with private developers, local businesses, and community stakeholders.

Patience and Political Will Are Essential
Several projects, like Lake Oswego’s redevelopment, took decades and required consistent political and community support through leadership changes and legal challenges.

Key Topics & Speaker Highlights

Elaine Howard – Urban Renewal Expert

• Explained TIF mechanics: “frozen base” value vs. incremental increase.
• Emphasized that new urban renewal districts do not impact school funding due to Oregon’s state school fund model.
• Gave real-world example of Astoria’s Liberty Theater and Fort George Brewery as revitalization wins.

Matt Lorenzen – Wilsonville

• Shared a small-town success story from Estacada where a blighted building was transformed into a vibrant community hub (YoTreats and kayak shop), using $100K of urban renewal funds.
• Described Wilsonville’s larger-scale downtown vision and how an advisory vote narrowly failed due to unrelated political controversies and low voter turnout.

Will Norris – Hood River

• Detailed Hood River’s waterfront transformation: from a smelly, underused area into a booming district featuring breweries, parks, and a hotel.
• Shared a creative deal where the city bought parkland from a hotel developer using a zero-interest loan repaid with the hotel’s own tax increment—a closed-loop reinvestment model.

Sid Sin – Tualatin (formerly Lake Oswego)

• Emphasized placemaking and the emotional, social value of urban renewal.
• Tracked Lake Oswego’s 45-year redevelopment, from a Blue Ribbon vision committee in 1979 to award-winning public-private projects like Lakeview Village and The Windward.
• Advocated for visionary consistency and engaging the community throughout long redevelopment processes.

Expanded Q&A: Key Audience Questions

Q1: How extensive was cleanup for the Hood River waterfront project and who participated?

Answer – Will Norris:
The area was technically a greenfield site—already filled during the dam construction—so it didn’t require major brownfield remediation. For the passive park portion, which was a former shipyard, the city focused on native plantings and let nature take the lead on restoration. There wasn’t a formal cleanup operation in terms of environmental hazard mitigation.

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Q2: How do you counter the argument that Tax Increment Financing (TIF) diverts funds from vital services and taxing districts?

Answer – Will Norris:
You can’t always change critics’ minds, but transparency helps. Emphasize the successful ROI—how TIF investments generate more money for districts than they would have otherwise. Norris also sees a fiduciary responsibility to all overlapping taxing districts, not just the city.

Answer – Matt Lorenzen:
Urban renewal is a co-investment model. Including other taxing districts in the planning and vision-setting phase is key. Oregon law now requires revenue sharing, meaning once TIF districts begin collecting significant increment, a portion is returned to those other districts even before the plan ends. Wilsonville even voluntarily reduced its district boundaries in the past to release high-value properties back onto the regular tax rolls.

Technical Tools:

• Revenue Sharing: Required by Oregon law when districts generate substantial increment.
• Under-Levying: Cities can voluntarily leave some increment uncollected, benefiting other districts.
• Boundary Reductions: Some cities shrink urban renewal areas to release tax revenue earlier.

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Q3: Can you have a successful urban renewal plan without land acquisition?

Answer – Sid Sin:
Yes, but it’s much harder. Acquiring and consolidating land reduces developer risk, offers certainty, and shows city “skin in the game.” In Lake Oswego’s North Anchor project, holding a key parcel for over a decade positioned them to drive vision-aligned development when the time came.

Answer – Elaine Howard:
Land control helps prevent developments that conflict with a community’s long-term vision. For example, if Wilsonville doesn’t control the former Fry’s site, it could become a big box store rather than a mixed-use downtown anchor. Acquiring and then reselling land with clear redevelopment terms enables more intentional outcomes.

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Q4: Should urban renewal agencies hold land for long periods off the tax rolls?

Answer – Sid Sin:
Ideally, no. But there are strategic advantages. If land is purchased early, it’s cheaper. As the district grows, that land increases in value. The city can use it in proposals to attract developers, making projects pencil out more easily.

Answer – Matt Lorenzen:
Sometimes land is sold at a reduced price (even $1) to make projects viable. But often, the city can recoup a large portion of investment and reinvest it elsewhere. In the Estacada YoTreats example, the agency recovered about $300K of a $400K project. Holding land too long isn’t ideal—but when managed well, it supports long-term goals.

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Conclusion

Tax Increment Financing continues to be a powerful tool for revitalizing communities, fostering public-private collaboration, and bringing long-term visions to life. As the success stories from across Oregon show, when used strategically and with community support, TIF can transform blighted areas into vibrant, thriving spaces that serve both residents and local economies.