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  • TIF District Projects
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City of Tigard

TIF Districts

Tax increment financing (TIF) programs help fund projects that aid in the revitalization of Tigard’s two TIF Districts:

1. City Center (Downtown) TIF District
2. Tigard Triangle TIF District

TIF District programs are funded through tax increment financing generated in each area to fix identified problems in the same area. Each TIF District is guided by a tax increment financing (urban renewal) plan, and are administered by the Town Center Development Agency.

City Center TIF District

City Center  TIF District

TIF District Map 2021Approved by Voters: 2006
Expansion Approved: 
2017
Area Size:
228.96 acres
Plan Duration:
20 years (FY 2025-2026)
Maximum Project Funding Amount (Indebtedness):
$22 Million



The City Center TIF District Plan has five distinct goals:

Fanno-Creek-Regional-TrailGOAL 1: Revitalization of the Downtown should recognize the value of natural resources as amenities and as contributing to the special sense of place.


WES-Commuter-RailGOAL 2: Capitalize on Commuter Rail and Fanno Creek as catalysts for future investment and development. 




Burnham-Street-ImprovementsGOAL 3: Downtown’s transportation system should be multi-modal, connecting people, places and activities safely and conveniently.



Tigard-Street-Heritage-TrailGOAL 4: Downtown’s streetscape and public spaces should be pedestrian-friendly and not visually dominated by the automobile.




The-KnollGOAL 5: Promote high-quality development of retail, office and residential uses that support and are supported by public streetscape, transportation, recreation and open space investments.



Current and Proposed Projects

TIF District Matching Grant Program 
The TIF District Matching Grant Program provides matching grants for existing businesses and property owners in the City Center TIF District to make improvements to the exterior of their building. The program also funds interior improvements for restaurants or similar businesses that move into vacant commercial spaces. This program has previously supported renovations to projects at Max’s Fanno Creek Brew Pub, Tigard Taphouse, Symposium Coffee, Jeffrey Allen Gallery, and many others. Grant-funded projects have strengthened participating businesses and improved Main Street’s position as a walkable commercial district. More information.

Tigard Ava Roasteria
The Town Center Development Agency (TCDA) is actively engaged in redeveloping this key site where Main Street meets Fanno Creek. The TCDA purchased the property and then used $400,000 in grant funding from the U.S. EPA Brownfield Cleanup program to mitigate contaminants found on the property and prep the site for redevelopment. Cleanup has been completed and the TCDA is working with developer Ava Roasteria on a four-story mixed-use building that will bring added vitality to Downtown. The building will contain an Ava Roasteria coffee shop on the bottom floor, along with a roastery and tasting room and pastry shop.Ava_Roasteria

Tigard Street Heritage Trail & Rotary Plaza
Once a former railroad spur, the three-quarter-mile Tigard Heritage Trail is now a pathway for commerce and culture.  Thanks to the work of hundreds of people and dozens of partners, the Tigard Heritage Trail has opened new access to parks and trails, livable neighborhoods and the city’s vibrant Downtown. The already popular bike and pedestrian pathway now celebrates local heritage and identity as a “pedestrian boulevard” with historic and cultural landmarks. Visitors and neighbors will enjoy another link to Tigard’s growing trail system and a long-sought space for community gatherings in Rotary Plaza. RotaryPlaza

Universal Plaza
Planned to open in 2022, Universal Plaza will be a place for everyone- a community gathering spot in the heart of downtown Tigard that celebrates our shared humanity and our one shared planet. Careful attention and a lot of planning has led to the development of Universal Plaza in two phases.

Phase 1 will feature the community’s most requested amenity­ -- an interactive water feature and splash pad. Construction of Phase 1 will begin Winter 2021-2022. Phase 1 is planned to open Summer 2022. Phase 2 will construct a show stopping overhead canopy for shade in the summer and shelter in the winter.
Heritage Plaza


Completed Projects
TIF District Projects
View an interactive map of projects in the City Center TIF District.

Accomplishments to Date

$48.8M
of private investment into property improvements and new construction in the City Center TIF District since 2006. Triple the amount of investment in the 12 years preceding tax increment financing. 
Data Source: Washington County

2.6:1
leverage ratio of private to public investment into TIF District tenant and storefront improvements, meaning every $1 in grant funding has yielded $3 in private investment. Data Source: City of Tigard

28
downtown businesses have received TIF District matching grants for interior or exterior building improvements. Data Source: City of Tigard 
            
234
new units of multifamily housing units constructed in downtown Tigard since tax increment financing was approved in 2006. Data Source: Metro
 
32%
increase in multifamily housing in downtown Tigard since 2006, compared to a 9% increase in the rest of Tigard. Data Source: Metro

55%
increase in assessed value in the City Center TIF District between 2006–2016, compared to a 45% increase in assessed value citywide.  Data Source: Washington County

 

Supporting Documents

Tigard Triangle TIF District

TIF District Overview MapApproved by Voters: 2017
Area Size:
548 acres
Plan Duration:
35 years (FY 2052-53)
Maximum Project Funding Amount (Indebtedness):
$188 million














The Tigard Triangle TIF District Plan has five distinct goals: 

Tigard Triangle Open HouseGOAL 1: Encourage meaningful involvement by citizens, interested parties, and affected agencies throughout the life of the urban renewal district to ensure that it reflects the community’s values and priorities.

Walking in the Tigard TriangleGOAL 2:
Provide a safe and effective multimodal transportation network that provides access to, from, and within the Area and supports mixed-use and pedestrian-oriented development.


Infrastructure in the Tigard TriangleGOAL
3:
Provide public utility improvements to support desired development.



Tigard Triangle MonolithGOAL
4:
Create a clear identity for the Area as a fun and diverse place to live, work, shop, eat, and play by building upon existing unique and desirable features.


The AdrienneGOAL 5:
Provide financial and technical assistance to new and existing businesses and housing developments that contribute to the Area’s diversity and vitality and help it transform into a mixed-use and pedestrian-oriented district.


Current & Proposed Projects

A New Tigard Triangle: Planning for Equitable Development  
A New Tigard Triangle identifierThe City is working to transform the Tigard Triangle into a vibrant area where people of all ages, abilities and incomes can live and work within walking distance to shops, restaurants and parks.

Equitable development is a positive development strategy that ensures everyone participates in and benefits from the area’s economic transformation by dismantling barriers and expanding opportunities. The Tigard Triangle TIF District Equitable Implementation Strategy will ensure that projects deliver on the vision of equitable development and advance the broader change needed to link residents to economic and neighborhood opportunities.

Development Assistance for Affordable Housing
Red Rock RenderingA new affordable housing development on SW 68th parkway is the first project to receive TIF funding in the Tigard Triangle, adding 48 units of affordable housing. The development assistance helped close the funding gap in the project.

Proposed Projects
The Tigard Triangle (roughly the area bordered by I-5, Highway 217 and Highway 99W) is an area with great potential but also lacks basic infrastructure like sewers, sidewalks, roads and parks. The Tigard Triangle tax increment Plan includes projects that will help achieve improved walkability, address transportation issues, and help businesses grow. 

Projects include:  

  • New streets and sidewalks
  • New trails and parks
  • Major sewer line repairs
  • Red Rock Creek restoration
  • Stormwater management
  • Intersection improvements
  • Façade improvement grants/loans
  • Small business support

Supporting Documents

TIF District Matching Grant Program - City Center

Matching Grant ProgramApplications for matching grant funding are now being accepted on a rolling basis. See below for more information. 

The TIF District Matching Grant Program provides matching grants for existing businesses in the City Center TIF District to make improvements to the exterior of their business. New catalyst businesses moving into vacant spaces in Downtown are also eligible for funding to make interior upgrades. This program has previously supported renovation projects at Max’s Fanno Creek Brew Pub, Under Water Works, Sherrie’s Jewelry Box, Symposium Coffee, Jeffrey Allen Gallery, and many others. Click here for an interactive map of projects funded by this program.  

Matching grant funds support two distinct but related programs: The Exterior Improvement Program and the Interior Improvement Program.

See details about eligibility and requirements (en español).

For more information, contact Dylan Dekay-Bemis, Economic Development Coordinator at 503-718-2560.

TIF District FAQ

What is the difference between “TIF” and “urban renewal”?  Essentially, they are the same thing. Urban renewal was established by the Federal Housing Act of 1949 to provide funding for cities to invest in affordable housing and urban infrastructure projects in impoverished areas. Unfortunately, in many areas urban renewal has had devastating consequences, resulting in mass displacement of minorities and underrepresented populations in cities around the country, including Portland. For many, the term urban renewal evokes these past practices. Because of this, the City of Tigard has made the conscious decision to instead use the term tax-increment financing (or TIF), which is used consistently in other parts of the nation. Throughout the City of Tigard website, you will now see the use of TIF Districts, though we leave language and references to urban renewal in previously adopted plans.

What is tax increment financing (TIF)?
Tax increment financing is a powerful funding tool currently in place in over 75 communities across Oregon. It is used to help areas that are not performing well and/or lack public infrastructure by funding projects that fix identified problems and spur private investment that would otherwise not happen under normal market conditions.

What does tax increment financing do? Tax increment financing uses property taxes from within an area to fix identified problems in that same area. It often focuses on improving an area’s transportation and utility infrastructure since these kinds of improvements can unlock an area’s development potential. Tax increment financing can also be used to attract and retain small businesses, support affordable housing, and develop public spaces such as parks, plazas, and trails.

How does tax increment financing work? When a Tax Increment Financing (TIF) District is established, the County Assessor determines the current assessed value of all property within the district, and freezes that tax base. Tax revenue from this “frozen base” continues to go to taxing districts annually for the life of the TIF District. Tax revenue on any increase in property value that would occur anyway—from new development and/or appreciation—is allocated to the TIF District Agency for projects in the TIF District. This increase above the frozen base is also called the “increment.” When the TIF District expires, the frozen base also expires, and the local taxing districts resume receiving taxes on the full assessed value of the district. 

What are the benefits of TIF Districts for Tigard?

  1. Improves Tigard’s Long-Term Financial Health - By bringing in new businesses and development, TIF increases Tigard’s tax base over time which, in turn, helps fund future city services for all of Tigard residents.
  2. Provides a Stable Funding Source - By creating a stable, long-term funding source (without creating a new tax), the city can build or fix infrastructure that it may otherwise delay, or never be able to afford.
  3. Steers Investment Toward an Area Ready for Change - By focusing on areas already zoned for mixed-use commercial and residential density, TIF steers investments toward parts of Tigard that are the readiest for change.
  4. Furthers Tigard’s Walkability Goal - TIF can help further the city’s goal of becoming a more walkable, interconnected and healthy community by transforming auto-oriented districts with no or limited sidewalks into pedestrian-friendly areas with a diverse mix of destinations and activities.
  5. Supports Travel by Alternate Modes - By fostering the creation of a complete community – one which has jobs, housing, services, and transit –  TIF can make travel by alternate modes (travel by foot, bike, or transit) feasible. 
How are decisions made about tax increment financing? The Town Center Development Agency (TCDA) is the City of Tigard’s TIF District and is responsible for administering the City Center and Tigard Triangle plans. The Board of the Town Center Development Agency are the decision makers of the agency. The membership of the Board is made up of the Tigard City Council. The Town Center Advisory Commission makes recommendations to the board on policy, budget, and implementation of tax increment financing projects.

Who is affected by TIF Districts? TIF Districts have a financial effect on local taxing districts, but the impact is different for schools than for other districts. TIF Districts do not directly affect school districts because schools are funded through the State School Fund. Property tax revenues are an offset under the statewide school funding formula, and property tax revenues foregone by school districts because of TIF may be replaced with other State School Fund revenues.

Other taxing districts, such as Tualatin Valley Fire & Rescue, are directly affected by TIF. While a TIF District is active, revenue from that area is frozen, which means that taxing districts will not receive as much money as they would have otherwise received for the life of the TIF District. In essence, taxing districts forego some revenue now in exchange for an increase in their total property tax base later as a result of TIF Since the goal of TIF is to spur development that would otherwise not have occurred, taxing districts can expect to receive more tax revenue in the future than they would have had TIF Districts never existed. 

Is TIF a new tax? TIF is not a new tax on property anywhere in the city—TIF only changes how tax revenue is allocated. The revenue to pay for projects in a TIF District is self-generated by new development and property appreciation in the district. Tax bills for property owners within a TIF District do not increase because of TIF; it only changes how tax revenues are allocated. Read more about how it all works below.

Why does Urban Renewal/TIF Districts show up as a line item on my tax bill?
Voters approved the formation of a TIF District in Downtown Tigard in 2006 and in the Tigard Triangle in 2017. If you own property in the city, TIF shows up as a line item on your tax bill as (UR/Tigard) whether or not you own property in the TIF District, which can be confusing.

Technically, a portion of your taxes are going to the TIF District, but that’s only because of a 2002 court decision and subsequent 2003 legislation that requires the County Assessor to calculate the division of taxes in a very specific way. Even though the TIF District agency is not a taxing district, your tax bill treats it like a taxing district by showing it as a line item with a separate tax rate as required by law. In actuality, however, this line item does not represent a new tax, or result in a larger tax bill than would otherwise occur. Instead, it represents a division of tax dollars, collected from all properties in the city in an amount equal to the growth in assessed value inside the TIF District. When the TIF Districts expire, your property tax bill will not decrease. Property tax dollars will be redistributed to the existing taxing districts.

Urban Renewal: Historical Context

Urban renewal was established by the Federal Housing Act of 1949 to provide funding for cities to invest in affordable housing and urban infrastructure projects in underperforming areas. Unfortunately, in some cases, the implementation of urban renewal plans has had negative consequences, resulting in displacement of minorities and underrepresented populations in cities around the country.

For many, the term urban renewal evokes these past practices. The City of Tigard acknowledges urban renewal’s harmful past and seeks to reclaim it as an authentic tool for positive and equitable transformation.

Tigard’s Commitment to Equitable Implementation: The City of Tigard uses an equitable development strategy to ensure everyone participates in, and benefits from, the economic transformation of its urban renewal areas. This strategy ensures projects deliver on the vision of equitable development and advance the broader change needed to link community members to economic and neighborhood opportunities. Accountable public action and investment will result in more quality jobs and increasing entrepreneurship, wealth, and quality of life. The result will be a stronger, more competitive city.

Contact Us
Sean Farrelly
Redevelopment Project Manager
503-718-2420

On the Ballot 2021

Voters Overwhelmingly Approve Downtown Renewal Measure
On May 18, 2021 Tigard voters approved raising additional funding for downtown projects over the next 14 years. A ballot measure to amend the City Center Urban Renewal Plan passed 65% to 35%, increasing the maximum amount that can be allocated for urban renewal projects to $48.8 million and extending the end date for the Urban Renewal Plan to 2035. Read more here.


Talking Tigard Podcast: Exploring Downtown Tigard
Talking Tigard

Urban Renewal Explained

Financial Impact Report - Cover
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