Grants to revitalize communities with revenues from regional construction excise tax
Public agencies in 12 different cities within the Portland metropolitan area are each vying for a slice of more than $3.5 million in grant dollars available to fund their visions for making land within the urban growth boundary ready for development.
The first round of applicants in Metro's construction excise tax planning grants program submitted letters of intent for 26 separate projects that support the development of sustainable, vibrant communities, safe and walkable neighborhoods, and local jobs.
Using revenues from the CET, the Metro Council is encouraging good planning that readies land for development, removes barriers to private investment in development and enhances the livability of the region.
The construction excise tax is assessed on construction permits issued within the Portland metropolitan region. The tax is assessed at 0.12 percent of the total value of improvements for which the permit is sought. Permits valued below $100,000 and permits for affordable housing projects or services for residents with income levels of 50 percent or less of federal median income standards are exempt.
As part of the eligibility requirements, agencies were required to demonstrate availability of other public and private resources including cash or in-kind services associated with the project. A total of $6,812,600 in grant funds was requested through the 26 letters of intent while applicants secured matching funds and in-kind services totaling an additional $7,462,385 on their own.
In general, projects fell into three broad categories: connecting transportation and land use in both small and large areas, land use and transportation strategies that address maintaining a healthy ecosystem, and helping development happen in areas with site conditions that may preclude traditional development approaches.
One key criteria in evaluating the proposed projects is a focus on development or redevelopment in or near centers, corridors, main streets, station centers, employment areas or industrial areas that enhance the 2040 Growth Plan. In response, several of the letters of intent proposed projects for revitalizing and maintaining the distinctive character of industrial neighborhoods and historic downtowns.
Public agencies submitting a letter of intent will receive feedback from Metro on ways to strengthen their application or provide information that may be missing. The next step for applicants is to then submit a formal application to Metro by Jan. 29, 2010. Applications will be reviewed by a steering committee comprising nine members with expertise ranging from economic development to real estate and infrastructure finance. After reviewing and scoring the applications, the committee's recommendations will be passed on to the Metro Council. The first round of grants is expected to be awarded in May 2010.