La Pine ponders urban renewal district

The city of La Pine held a final public hearing Wednesday evening before councilors vote on a proposal to spend about $7 million over the next 25 years to transform the heart of the city.

“It will be a terrific tool to really spruce up the town,” La Pine Chamber of Commerce Director Ann Gawith said.

The city is proposing to freeze taxed assessed property values in a designated area encompassing about 580 acres. The subsequent tax revenue from rising property values would go to the district to fund projects — things like improving the looks and accessibility of downtown.

Part of the city’s vision is newly established: a small stretch along the corridor of Ashton Eaton Boulevard now has sidewalks, trees and landscaping, thanks to an ODOT grant.

Mayor Ken Mulenex said he hopes a gleaming downtown will lure in the tourists.

“I’m tired of seeing them come into La Pine and just drive by,” Mulenex said.

There’s also an incentive to those who set up shop in La Pine.

“There will be more monies available for low-interest, or no-interest and forgivable loans, perhaps for existing businesses,” Gawith said. “We’re still teetering on the edge of the recession; businesses are still struggling somewhat to come out of it.”

A strong sale perhaps for business owners, but the new district would also name some losers. Several taxing districts, including the La Pine Rural Fire Protection District, would receive less tax money than they’d otherwise get.

City officials estimate the fire district would give up about $1 million over the 25-year period.

At the hearing. fire officials offered support for the plan’s goals, but expressed concern it would hurt their ability to serve the community.

“We’re opposed to the way the want to finance it,” Fire Board Director Jerry Hubbard told NewsChannel 21. “Over Fourth of July weekend, in 24 hours, we had 48 calls including multiple-vehicle accidents, structure fires, and so it’s not insignificant money.”

Hubbard said if the community suffers another recession, with falling property values, the department could be in real trouble.

“It’s $39,600 a year in lost revenue,” Hubbard said. “To keep our student station open for a year costs $40,000.”

But Mulenex argued that creating the district will benefit everyone and eventually bring more taxpayers to the area.

“When we get more businesses to grow, the jobs will get better, the income levels will improve and we’ll see a lot of our kids staying here in town,” Mulenex said.

Mulenex said downtown revitalization will be just the first domino. He thinks the district could help spark interest to bring businesses into the city’s industrial park.

Still, some residents at the meeting argued aesthetics shouldn’t trump public safety.

“We don’t want (the proposal) to be able to lower the level of service (of the fire department),” one resident said. “Many of our residents are, like me, elderly.”

But others said they support the plan.

“We think it would add to the livability of La Pine,” Dale Paulsen said. “We think there is a good future for La Pine, and we’re anxious to see it benefit.”

City councilors are expected to vote on the district at a council meeting July 23rd.

Mulenex said if the proposal is approved, projects would be chosen slowly and incrementally, as the funding allows — and where the city and community sees fit.