Economic Improvement District renewal

 

What is the Downtown Economic Improvement District?

In 1976 the citizens of Salem approved a ballot measure to: (1) Remove penny parking meters from downtown, (2) Replace the City's lost meter income with a new tax on downtown business owners, and (3) Provide stable funding for a new downtown association to represent and benefit downtown businesses.

 

The parking tax funded the downtown association for 35 years. That tax currently collects $435,000 annually. In 2006 the City of Salem refused to give any funding to the downtown association, claiming the City needed all the funds.

 

In 2007 the City asked the downtown property owners to implement another tax, the Economic Improvement District assessment, to fund the downtown association. This tax has to be renewd by property owners through a remonstrance process every three years. For the first three years, the funds were administered by Go Downtown Salem. 

 

Go Downtown Salem was a secretive organization much disliked by the downtown community. Prior to the next three year renewal, the City awarded the contract to a new association, the Salem Downtown Partnership. It was funded for one year. Then the City changed an ordinance and allowed the City Manager to terminate the Salem Downtown Partnership contract.

 

The City Manager then created a personal "advisory group." The group meets in secret. No meeting minutes are kept. For the past 18 months the City Manager has personally administered the Economic Improvement District and Parking District funds promised to the Salem Downtown Partnership. This was a classic bait-and-switch. The Economic Improvement District is up for renewal again in May 2014.

 

What is good about the Economic Improvement District?

The Economic Improvement District and Parking District assessments are the main funding sources for an independent downtown association. They are special assessments paid only by downtown property and business owners. When the funds are administered by an independent board, property/business owners work together to make downtown more financially viable and prosperous. Downtown associations also provide cohesive political representation for downtowns. 

 

What is bad about the Economic Improvement District?

Since the City Manager took over the administration of the Economic Improvement District and Parking Tax expenditures, downtown businesses have had no say in how their tax money is spent. The City rarely communicates with the downtown property/business owners. Longstanding promotional events like First Wednesday are being ruined.

 

How will the Economic Improvement District be financed?

The Economic Improvement District is an assessment paid by all owners of downtown property in the EID district. The tax is assessed based on the total square footage of a building (including basement) at 6 cents per square foot. Parking lots are assessed at 2 cents per square foot The city collects $235,000 annually.

 

Why should I care about the Economic Improvement District?

Without a source of income for an independent downtown association, downtown will continue to flounder. Most downtowns in Oregon have some downtown association that works to keep their area viable, able to compete with malls for customer dollars. Without an association, downtown is fractured. City officials dictate what can, and cannot, happen. There is no organized political voice representing downtown business and property owners against the City of Salem's implementation of parking meters and other methods of driving downtown customers to shop elsewhere.

 

What can I do about the Economic Improvement District renewal?

If you support an independent downtown association and renewal of the Economic Improvement District assessment, send a letter of support to the Statesman Journal. Continue to visit this Salem Community Vision website. "Like" the Salem Community Vision Facebook page. Subscribe to our email notifications so we can let you know about new information related to this subject. (See "Join our mailing list" box below.)