What is Urban Renewal?
Urban renewal is a financing tool cities and counties can use to catalyze the revitalization of an area experiencing blight, without raising tax rates. Rather than increasing taxes, urban renewal shifts net new property tax revenue to pay for public benefit projects. Funds can only be used on approved projects within the boundaries of the established urban renewal district.
How Does It Work?
Property tax revenues that exist at the time the urban renewal district is created continue to flow to the different taxing districts, such as the county, fire district, and Metro (the light green portion on the graph).
As new development occurs inside the urban renewal boundary and property values increase over time, the urban renewal district generates net new revenue that is reinvested into approved public benefit projects (the orange portion on the graph). This revenue from new development and growth is called the “tax increment,” which is why urban renewal is also sometimes called “tax-increment financing” (TIF).
When the urban renewal district closes, tax increment is no longer collected by the urban renewal agency, and all taxing districts then receive property tax revenue based on the new, higher value of development within the urban renewal district (the darker green portion on the graph).
Urban Renewal Law
There are several laws that guide urban renewal in Wilsonville. It is authorized under Oregon state law (ORS Chapter 457), and cities and counties that use urban renewal must follow the rules and processes outlined therein. Additionally, the passage of Measure 3-632 by Wilsonville voters in May 2026 introduced new charter provisions that govern how urban renewal districts are established and amended in our community.
How Does Urban Renewal Work? A Quick Breakdown
