Background and Voter Approvals
In May 2006, voters approved Measure 34-114, allowing Tigard to use tax increment financing for public improvements in the downtown City Center area. The measure followed years of debate and opposition from local property owners and capped debt at $22 million.
Nearly twenty years later, the program remains active. Voters approved a 37.7-acre expansion in 2017, then, in 2021, raised the maximum debt limit by $20.8 million to $42.8 million and extended the plan to 2035.
Progress to Date
In its first twenty years, the program improved Main Street and downtown areas, added housing, upgraded storefronts, and attracted businesses. The 2021 vote passed with about 64 percent support, though turnout was under 26 percent as Covid-19 restrictions eased.
Five years after expansion and two-thirds through the plan, Tigard should assess whether the program can still meet its ambitious goals. It has had some success, but appears likely to fall short on many major projects identified in the plan.
Unfinished Commitments
The 2021 City Center Urban Renewal Plan shows future downtown streets, but none appear planned or built. The May 2021 ballot statement said amendment funds would support projects including:
- Designing and building new streets
- Universal Plaza Phase 2
- A parking facility
- Tigard Heritage Trail improvements
- Fanno Creek Trail improvements
- Affordable housing development
- Pedestrian safety and streetscape improvements
- Land acquisition for mixed-use development
Questions for the Remaining Years
With nine years left, the city should explain whether available and extended funds can realistically complete the first listed projects. New streets and a parking facility seem unlikely, and Universal Plaza Phase 2 is hard to justify while some Phase 1 features remain inoperable.
The city should clearly tell the public what the program can still deliver: major new projects or mainly housing or smaller successes such as infrastructure improvements. If 2021 projects will not be finished by 2035, the city should say whether it expects to seek another voter-approved debt increase.
Need for Review and Transparency
The city should review the program and present realistic choices. City Center funds are limited, yet the June 30, 2025 Financial Report shows nearly 28 percent of available capital project funds going to administration—more than triple the share for Tigard Triangle urban renewal projects.
The city is also foregoing more than $217,000 in property taxes, while other taxing agencies are foregoing more than $827,000. After 2035, those revenues could support community services.
Conclusion
The City Center project appears administratively top-heavy and unlikely to complete major capital projects soon. Tigard should plan to close it in 2035. If funds or plans are lacking for new streets, Universal Plaza Phase 2, or a parking facility, the city should say so now rather than seek more time and money later. It should declare the program successful at its current level and prepare for orderly closure.
