Rainier Economic Development Council (REDCO)

Position

Name

Term Ends

1

Mike Avent, Chairman

Jan 2010

Terry Grice

Jan 2011

David Qualman

Jan 2011

Tim Navarro

Jan 2012

Terry Deaton

Jan 2012

Dearl Taylor

Jan 2009

Paul Rice

Jan 2009

REDCO in the News

REDCO Selects New Attorney; Hears, Moves on Grant Requests

The Clatskanie Chief

By Ruth E. Howard

March 6, 2008

Selection of an attorney, approval of a small business grant, and discussion of two other grants were among the items of business for the Rainier Economic Development Council (REDCO) at its meeting Thursday, Feb. 28.

Following an executive session mid-way through the meeting, a motion passed to accept the recommendation of a committee and make an offer to Karen Williams, a Portland attorney with the Lane Powell law firm, to become REDCO's new attorney.

According to the Lane Powell web site, Williams has provided representation on five urban renewal plans and was named one of "The Best Lawyers in America" for 2006-08.

The REDCO attorney committee included chair Mike Avent, members Terry Deaton and Dearl Taylor and a past REDCO member Lori Piercy.

At its Jan. 31st meeting, REDCO unanimously voted to terminate its contract with attorney Rob Sullivan.

Small Business Grant Requests Approved, Heard

In other business, the council looked again at two small business grant applications, which were first reviewed at its January meeting.

A grant request for $4,900.02 from Sloan and Jennifer Nelson of Hotel Rainier LLC was approved by the council. The funds are 50 percent of an anticipated $9800.04 project cost to make overall facade and other exterior improvements to the Nelson's "Hotel Rainier" building, located on the north side of East A Street.

The proposed improvements include replacing a previously-existing front balcony, sealing and repainting of storefronts and the east and west exterior walls, and cleaning and staining the awnings.

A grant request for $4050 from Scott Nelson of Columbia River Carpet One for replacement of an awning sign was tabled, pending b further research.

Members of the council questioned whether the sign replacement qualified as "maintenance," for which REDCO does not provide grants. City Administrator Lars Gare was directed to review REDCO's application process and invite the applicant, Scott Nelson, to give testimony to the board. It was also noted that the grant request appeared to be for the total project cost of S $4,050, rather than for 50 percent, per REDCO policy.

There was some discussion regarding encouraging grant recipients to patronize local businesses.

In addition, the board heard a presentation from Sue Drummond and Jan Moon of the Rainier Marina Market regarding a small business grant request for a total of $9,300 for advertising and upgrades to the building housing the market.

Drummond noted that the new market, which replaces the former Saturday Market in the Park, is "almost full," with a number of vendors already committed.

Fresh seafood and seafood salads, home baked breads, coffee, fresh produce, jams and jellies, gourmet hot dogs and sausages, as well as a variety of arts and handcrafts are expected at the market, said Drummond. The market opens April 26 and runs on Saturdays through December 13 in the former hardware store East A Street.

"It solves our problem for not having a grocery store ... there's everything you would need," she said. Moon noted that REDCO was being asked to grant $4300, half of the anticipated advertising costs and one-third or $5000 for various building: expenses, including upgrades.

"I think it's going to really kick- start the downtown area," said Moon. The building has sat vacant for seven years, she said.

As per REDCO policy, the board did not act on the grant request, but will review it again at its next regular meeting on March 27.

REDCO Projects Reviewed

The board briefly reviewed a REDCO projects summary compiled by Deaton from previous meeting minutes and past REDCO project lists. The summary was put together based on a request from the Rainier city council to know what REDCO funds were available and what has been spent.

Deaton said she was unable to access some city financial records and thus some project costs may not be exact or complete, but were "as close as I could come up with." The summary included total project costs and a breakdown of REDCO's and the city’s share, if available.

Board member Tim Navarro commented that REDCO funds are often used as "seed money" to obtain grants for various projects.

Projects with which REDCO has participated, that have been completed as of Feb. 23, include:

·         The water treatment plant, phases 1 and 2;

·         West B Street/pedestrian improvements,

·         A Street extension, marina refurbishment, phases 1 and 2;

·         Marina launch - engineering and construction, phase 3;

·         The Rainier Senior Center;

·         Public works housing, Community Development Block Grant;

·         City Hall improvements;

·         Creation of open space and a ball field at Rainier Riverfront Park;

·         Fox Creek daylighting and restoration;

·         Development of the waterfront mixed use conceptual ideas plan;

·         Three West Rainier Industrial Acres feasibility studies;

·         Mobius play structure at Riverfront Park and library window coverings (Team 97048 projects);

·         Development of REDCO web site;

·         Update of city web site and development of REDCO brochures.

According to Deaton's summary, the above projects total $12,390,765, with REDCO contributing $910,984.

Uncompleted projects, which REDCO has committed funds to, include:

·         A Street Streetscape/ Rail Safety project preliminary design);

·         Wastewater treatment plant - various phases;

·         Riverfront Park, phase 3;

·         First Street Square;

·         Marina Square/Riverfront Trail;

·         Transportation enhancement on Highway 30; and

·         Fox Creek pedestrian crossing.

Costs for the uncompleted projects are estimated at $7,688,269, with REDCO committing about $111,200.

Deaton said the uncompleted projects costs are not current and need to be updated.

The combined completed and uncompleted project costs is $20,079,034, with REDCO contributing and/or committing $1,022,184.

REDCO budget officer Terry Grice pointed out that when REDCO has committed funds to various projects; it designates those funds, setting them aside.

Because REDCO records have stored in boxes, the board approved purchasing a filing cabinet for REDCO.

REDCO Discusses IGAs, Possible New Projects

In other discussion, Grice asked whether the city council's recent decision to not participate in an intergovernmental agreement (IGA) regarding the division of funds among Lower Columbia Maritime Enterprise Zone sponsors, would affect Columbia County's willingness to participate in an IGA with REDCO regarding sharing tax revenue to help with the repayment of REDCO's loan to the United States Gypsum Company (USG).

REDCO and the county entered into an IGA in 2006, with the county agreeing to contribute a portion of its revenue from USG's taxes, about $40,320. The IGA is an annual agreement.

David Qualman, a councilor and vice-chair of REDCO, said he was concerned how the council's decision would affect REDCO's IGA with the county.

"Though REDCO and the city of Rainier are not the same agency, they are often viewed as one and the same ... For Rainier to not enter into an IGA, I don't think it bodes very well for Columbia County and an IGA with us."

Deaton said she believed the council did not "have enough time to evaluate" the IGA. "I think if they had the time, they would have evaluated it better."

Deaton raised the possibility of REDCO transferring $200,000, previously designated for the wastewater treatment plant, to the [potable city] water treatment plant, to allow Columbia River Fire & Rescue (CRF&R) to participate in an IGA with REDCO, since they use city water.

A Lane County judge ruled last fall that the statutes of CRF&R and four other taxing districts would not allow them to participate in IGAs to share tax revenue with REDCO for the USG loan payment.

Grice, deputy chief with CRF&R, said there was a possibility the fire district's statute would allow them to contract or participate in an IGA for water "since it's the supply side."

"It might help us get some IGA funds from the fire department...It would help the city and help pay the loan to USG, if it worked," said Deaton.

According to its IGA with REDCO, CRF&R would have contributed about $86,430 toward the loan payment.

The REDCO board agreed the option should be further investigated.

REDCO also heard a request from Jess Hillsbery regarding the rezoning of a portion of his property, located south of Rinearson Slough in West Rainier.

REDCO authorized Gare to write a letter to Columbia County stating that REDCO has no objection to the zone change, and advised Hillsbery to take the matter to the Rainier Planning Commission.

In other discussion, Deaton said a citizen had suggested the city turn one of its public bathrooms into a state facility, to be upgraded, maintained and winterized by the state, since there are no public bathrooms along Highway 30, between Portland and Clatskanie.

Taylor asked if there had been discussion of a fueling station at the local transit dock.

"I think it would be a big draw if people could fuel down there ...another reason to stop and walk into town …I would like to see us do a little more with the marina.”

Taylor agreed to research the idea.

The board briefly reviewed a state statute regarding recording meeting minutes, with Deaton noting that reviewing past REDCO minutes she discovered some information was "almost impossible" to find and asked that REDCO's minutes at least include a "basic description of discussion."

REDCO set its annual planning session for Thursday, March 13, at 6 p.m., in the council chambers at city hall.

After Appeal Deadline Passes...

REDCO Waits on Loan Decision Until Hiring New Attorney

The Clatskanie Chief

February 7, 2007

by Ruth E. Howard

Decisions on a course of action for repayment of a loan to the United States Gypsum Company (USG) have been temporarily halted by the Rainier Economic Development Council (REDCO) after discussion at its regular monthly meeting, including an executive session, on Wednesday, Jan. 31.

Action on appealing a court decision related to special districts' participation in repayment of the loan has been discontinued after REDCO attorney Rob Sullivan notified Mike Avent, REDCO chair, on Jan. 24 that the appeal timeline expired Jan. 13, as Sullivan previously stated in a Dec. 27th letter to REDCO.

At a special joint meeting on Jan. 22, REDCO and the Rainier City Council, by a narrow 5-4 margin, authorized Sullivan to research the chances of successfully appealing the court's ruling that five of nine taxing districts, which receive a portion of USG's taxes, could not share in REDCO's approximately $600,000 annual loan repayment to USG.

In a letter to Avent, dated Jan. 24, Sullivan wrote, "I feel I should have inquired further of you or the Board prior to January 13th about pursuing an appeal and encourage you and/or the Board to consult with another attorney..."

At its meeting Jan. 31, the REDCO board unanimously voted to terminate its contract with Sullivan and directed city attorney Steve Petersen to compile a list of five other attorneys for consideration.

Avent later told the Chief, that the REDCO board "amicably decided" to "cut our losses and look at other options."

"The board thought it was time to move on and get a fresh sight of eyes...the board is about saving taxpayers as much as we can," said Avent, and wants an "advocate" to help "explore every possibility ...and don't leave a stone unturned."

Last October, a Lane County judge ruled that only four of nine county agencies - the city of Rainier, Columbia County, Port of St. Helens and the Northwest Regional Education Service District - could share with REDCO a portion of their revenue received from USG's taxes to help make the approximately $600,000 payments due annually to USG.

To encourage USG's siting in Rainier, REDCO, an urban renewal agency, purchased the waterfront property in 1999 and conveyed it to USG, using a $3.4 million loan from the gypsum company.

REDCO's repayment of the $3.4 million loan, plus about $3.8 million in interest, for a total of approximately $7.2 million, began in December 2006, after USG entered the tax rolls in November, following a seven-year tax break. Twice-a-year payments continue until June 2018.

REDCO's current dilemma is related to the fact that in 1998 it decided to cap its tax increment financing (TIF) revenues from USG at $300,000, in response to Oregon's property tax limitation measures. The intent was to share the new property taxes from USG with other local taxing districts, such as Columbia County, the fire district, 9-1-1, etc.

(Due to a reporter's error, it was incorrectly stated in the Jan. 24th issue of the Chief, that REDCO captures the majority of USG's taxes in its TIF revenues. That would have been true if REDCO had not opted to cap its receipts at $300,000.)

USG paid $1,771,458.85 in taxes in the 2006-07 tax year. According to information provided by REDCO budget officer Terry Grice, based on the 2006-07 USG tax valuation, the city of Rainier is collecting about $608,000 in USG taxes. In another example, Columbia River Fire & Rescue is expected to receive approximately $347,000.

Other taxing districts, including Rainier School District, Columbia County, Columbia 9-1-1 Communications District, Columbia County 4-H and Extension Service, Northwest Regional ESD, Port of St. Helens, Rainier Cemetery District and Columbia County Vector Control District, receive amounts based on their varying tax rates.

With its TIF cap of $300,000, REDCO sought the help of nine county taxing districts to make up the additional $300,000 needed for the $600,000 annual payments to USG. In 2006 it entered into intergovernmental agreements (IGAs), to be renewed annually, with eight of nine county agencies. (Columbia 9-1-1 Communications District did not agree to the IGA.)

Under those IGAs, the agencies would give REDCO a portion of their tax revenue increases received from USG's taxes so that REDCO would have enough money to meet the payments.

However, the court decision that only four of the nine agencies can participate in the IGAs and share their tax revenue with REDCO, leaves REDCO about $101,000 short annually.

The three payments made to USG so far have been from REDCO's reserves, said Grice.

As allowed by law, capping its tax receipts also gave REDCO the option of increasing revenues with a special urban renewal levy. The current REDCO special levy rate is approximately 67¢ per $1,000 in assessed value.

It has been discussed that REDCO could lower its special levy rate to 46¢ and have enough revenue to cover the $101,000 shortfall, but not fund any other urban renewal projects, such as community and small business grants.

At its meeting last week, the board agreed to wait on researching other loan repayment options until consulting with a new attorney.

New Members Welcomed, Grant Requests Reviewed

In other business, new members Dearl Taylor and Paul Rice were welcomed to the board. Taylor and Rice, positions 6 and 7, respectively, were appointed after the resignations of Ralph Painter and Sloan Nelson, and will serve out the remainder of Painter and Nelson's terms, which expire in January 2009.

In addition, the board moved to recommend to the city council the reappointment of Tim Navarro and Terry Deaton, positions 4 and 5, respectively, whose terms expired in January 2008. The reappointment would be for four-year terms.

(At its meeting Feb. 4 the council did accept REDCO's recommendations and reappointed Navarro and Deaton. See council story, starting on page 1.)

Also at last week's meeting, REDCO heard several requests for grant funds.

Sue Drummond, manager for the Rainier Marina Market, made a brief presentation about the new market, which is replacing Rainier's "Saturday Market in the Park" and will operate every Saturday from April 26-Dec. 13, in the former hardware store on East A Street.

"I think it's going to be a wonderful thing for the community...and create some excitement in the core of old Rainier," said Drummond.

She noted that REDCO has supported the Saturday markets in the past and requested $2000 for advertising and signage.

Avent encouraged Drummond to obtain a REDCO grant application from city hall to begin the grant process.

The board reviewed a small business grant application from Sloan and Jennifer Nelson, owners of Hotel Rainier LLC, for major facade improvements to the old "Rainier Hotel" building, on the north side of East A Street.

The building presently houses the hotel, the Ol' Pastime Tavern, Rainier Appliance, a Hometown Property Management office and a vacant storefront.

Sloan Nelson told the board that the improvements, to return the building to its circa-1950s appearance, would include replacement of a previously-existing balcony on the front of the building, exterior sealing and repainting of the storefronts and the east and west sides of the building, and cleaning and staining of the awnings.

Painting over a large mural on the building's west side is also planned since the structure has suffered cracks and the mural is "fading and peeling," said Nelson.

"I think it's going to make a huge impact to the downtown area," he said, noting the building is in one of REDCO's "target points" for improvements.

According to the grant application, the project would cost about $9,800, with the Nelsons asking $4,900 from REDCO.

Another small business grant request was also received from Scott Nelson of Columbia River Carpet One for $4,050 for replacement of the carpet store's illuminated awning sign.

As per REDCO policy, the board did not act on the grant requests in the first review, but deferred any decisions to its next meeting.

By a Narrow Margin...

REDCO, Council Vote to Research Appeal of USG Court Case

The Clatskanie Chief

January 24, 2008

by Ruth E. Howard

After a lengthy and complicated discussion at a special joint meeting on Tuesday, Jan. 22, the majority of a combined Rainier Economic Development Council (REDCO)/Rainier City Council group approved a motion to investigate appealing a recent court decision regarding nine agencies' involvement in a loan repayment to the United States Gypsum Company (USG).

By a 5-4 vote, REDCO attorney Rob Sullivan was authorized to research the appeal, including obtaining a second legal opinion to determine the chance of success, and to report back to the group.

"If there is anything better than a 35 percent chance, I make a motion that we solicit that," said councilor Mike Avent in making the multi-faceted motion.

The joint group also agreed to continue investigating several other options, discussed in detail Tuesday evening, for REDCO to repay its loan to USG.

In 1999, REDCO obtained a $3.4 million loan from USG to purchase Rainier waterfront property. The land was then conveyed to USG to built a wallboard plant.

After a seven-year tax break, USG entered the tax rolls in November 2006 and began paying property taxes, the majority of which were captured as tax increment revenues by REDCO, an urban renewal district.

REDCO's repayment of the loan to USG began in December 2006, with three payments being made since then. REDCO owes USG a total of $7.2 million, including the $3.4 million loan and approximately $3.8 million in interest, due in payments of about $600,000 per year, with the final payment being due in 2018.

The current problem was caused as a result of REDCO capping its tax increment financing revenues at $300,000 in July 1998 so that other taxing districts would receive some of the taxes paid by USG. But, that cap resulted in a shortage for REDCO when it began repaying the loan under the 1999 agreement.

To make up the needed additional $300,000 due under the 1999 agreement, in 2006 REDCO entered into intergovernmental agreements (IGAs) with eight of the nine county agencies receiving a share of USG's taxes.

Under those IGAs, the agencies would give REDCO a portion of their tax revenue increases received from USG's taxes so that REDCO would have enough money to meet the payments.

The Columbia 9-1-1 Communications District did not enter into an IGA, questioned the legality of the agreements, and with the Special Districts Association of Oregon, sent the case to court.

In late October, a Lane County judge ruled that only four of the nine entities could share their USG tax revenue with REDCO, leaving REDCO about $101,000 short of the $300,000 it was seeking from the nine taxing districts.

A meeting of REDCO is scheduled for Thursday, Jan. 24, at 6 p.m. at city hall.

Council Hears from Veolia, OKs Staff Recruitment

Following the joint REDCO/council session, the council convened for a regular meeting Tuesday evening.

Veolia Water representatives gave a presentation about the water service company, and the services it can offer the city of Rainier, including entering into a public-private partnership to operate the city's water treatment and wastewater treatment plants.

Since early December Veolia has provided operations assistance at the wastewater treatment plant, but the company's representatives advised that Veolia cannot continue to operate indefinitely under its current emergency operations contract with the city.

The council was urged to issue requests for proposals (RFPs) for operation of the plant and to undertake needed upgrades and repairs, previously outlined by Veolia. "This needs to go forward with or without us," advised Owen Boe of Veolia.

City Administrator Lars Gare reported on efforts to obtain FEMA (Federal Emergency Management Agency) assistance for December storm-related costs and damage.

Gare said the city may be eligible for funds for the C Street slippage, for the city's watershed (for protective measures and for damage sustained), and for costs related to increased turbidity at the water treatment plant. Gare was to meet again with FEMA on Jan. 23.

In other business, the council approved job descriptions for a director of public works and a finance director/city recorder and authorized advertising the positions as soon as possible.

The council heard a request from builder Tim Navarro, tabled from the Jan. 7th meeting, and waived a required geotechnical study for a deck project at Evergreen Pub & Café.

Navarro said an existing deck behind the pub would be replaced with a larger structure and asked the council to waive the study because the ground is relatively flat and disturbance of the earth would be minimal.

The council agreed to the request, with the condition that the property owner would sign a "hold harmless" agreement in case of future ground movement.