Measure 20-134

As promised in our Slant column Nov. 15, here is the full text of Councilor Bonny Bettman’s letter to our local daily newspaper's editorial management Nov. 1, 2007:

The Register-Guard is setting a new low in biased journalism with their coverage of Measure 20-134. They have abandoned all pretense of objectivity.

They are actively using our community paper as a campaign organ. Gerry Gaydos held a press conference and used his appointed position to LTD (again with NO board vote) to stump for 20-134 and the R-G never mentions he is the director of the Eugene Chamber PAC which has contributed $10,000 to the YES side of the measure. School Board members express their personal opinions on the measure, also do not take a vote as a board, and the R-G states the "board" backs the measure.

Ed Russo restructures my sentences and omits key points, (like LCC's and ESD's losses), instead of presenting voters with both sides of the school finance issue so they can be equipped to make informed choices. Ed Russo, who has all my contact info and can reach me whenever he wants , failed to contact me regarding the "KWG" last-minute conversion for a "possible" open space in their plan — worse yet, he failed to even ask KWG what it will cost or how it will be financed — and this election is all about the money.

Welch did an opinion piece, entirely one sided and in favor of 20-134, masquerading as a column, he didn't even try to contact opponents. There have been several columns by (Don) Kahle in favor of 20-134; two R-G editorials in favor of the measure long before the editors even spoke with the opposition for the paper's "official" endorsement piece; opinion pieces permitted by the opposition have been overwhelmingly out-numbered by proponent op-eds. The number of printed letters to the editor has also been imbalanced in favor of the measure, and not for lack of letters. Many people who sent theirs in have yet to see them in print. This is by no means an exhaustive list. The volume of coverage has only been surpassed by its lack of objectivity.

It has taken me a while to come to this conclusion because I have become accustomed to low standards of local reporting by the R-G, and of course I never expect them to agree or support a position that I have taken. But the bottom line here is that they have a responsibility, as our only community daily paper, to provide balanced information to the public. The R-G's posturing on this issue has been extreme, and extremely manipulative. Apparently they don't they trust the voters to weigh relevant information and make an informed choice. The paper has proven to be utterly biased and uninformative on local issues. For regional, state, and national issues there are other newspapers. I am canceling my subscription to the R-G.

Respectfully,
Bonny Bettman

Urban Renewal Defeated
Local vote upsets scheme to divert taxes to developer subsidies

By Alan Pittman

The city of Eugene’s controversial urban renewal plan to subsidize downtown developers with parking garages and other handouts totaling more than $40 million was rejected overwhelmingly by voters on Nov. 6.

In unofficial final results, 64 percent voted no on Measure 20-134.

The defeat came despite proponents outspending opponents by more than a two-to-one margin. Much of the $49,085 proponents raised came from property owners that hoped to cash in on the city’s offers to buy downtown buildings for two to four times their assessed real market value and from construction companies that stood to get contracts for the project. Opponents raised only $20,452, much of it from local businesses threatened with displacement or subsidized chain store competition.

“We were completely outgunned,” said Councilor Bonny Bettman, a leader in the campaign against the measure.

The defeat also came despite strong backing of the measure by The Register-Guard in editorials and, critics say, slanted news stories.

“For this campaign they abandoned all semblance of objectivity,” Bettman said. “It was not just the editorial stance, it was the news stance,” she said. “They basically took the proponents' talking points and reiterated them.”

The R-G repeatedly stated without attribution in news stories that the measure would not raise taxes. But both city finance staff and the county tax assessor wrote that the measure could result in a small tax increase to make up for revenue needed to pay off some existing bonds and levies. Opponents also pointed out that the measure would likely result in larger tax increases as other government services sought to make up for revenue diverted to urban renewal.

The measure’s defeat also came despite the claims of proponents, including all the members of the Eugene 4J School Board, that it would not hurt schools. In fact, about 34 percent of the developer subsidies would be money diverted from state school tax revenue. Statewide, a total of about $165 million a year is diverted for urban renewal.

“I was very disappointed in the school board,” said Councilor Betty Taylor, a former teacher. School board members shouldn’t be arguing that it’s OK for developers to take money from state school funding, she said. “It’s terrible, it’s disgraceful.”

Bettman said it was “scandalous” for the school board members to push to give away school money. “If the school board members think the schools are so flush with money” that they can afford to give it to developers, Bettman said, “they sure shouldn’t have students out there hustling money with candy and wrapping paper” fundraisers.

Taylor said voters saw through the proponents' misleading claims. “It was deceptive, but I think Eugene voters are intelligent.”

The strong vote against tax diversion for developers here could change the future use of urban renewal in Eugene and statewide.

Bettman and Taylor said the city should sunset its existing urban renewal districts downtown and along the riverfront.

Gavin McComas, owner of Sundance Natural Foods and instigator of the 20-134 referral vote, said the city “absolutely” needs to have a vote whenever it expands its urban renewal plans. “I question whether we need to continue with our urban renewal districts.”

Ending the districts could throw a wrench into schemes by city, EWEB and UO staff to use urban renewal tax diversions to subsidize a new City Hall building and massive development of the riverfront and Franklin Boulevard.

Bettman said the city and school district should lobby for a state bill to allow schools and other impacted taxing districts to opt out of having their funding diverted by urban renewal.

“I wish urban renewal statewide could see the light of day,” Bettman said. Describing how the “smoke and mirrors” funding diversion is “bleeding money from schools and essential services,” Bettman said, “urban renewal does not stand up to scrutiny.”

State Rep. Paul Holvey wrote an email just before the election calling for legislative reform of urban renewal.

Lane County Commissioner Peter Sorenson said the county is working on a legislative proposal to allow counties, which lose money from diversion, to get a vote on urban renewal. “We’re optimistic we can get a bill,” Sorenson said.

As for what the city will do now after the defeat of 20-134, Bettman and Taylor said the council should immediately move to approve the Beam Development proposal for remodeling the Center Court with an addition in the adjacent pit and remodeling the Washburne building. The councilors said the city should also move on the T.K. development proposal for condos and retail across from the library and discuss adding a park adjacent to the project. The three projects “would have a big impact,” Taylor said.

The fight for the urban renewal measure has left some lasting damage. The city was “absolutely crazy” to spend $345,000 on now mostly useless options to buy property at unrealistic prices, Taylor said.

Bettman said proponents' false campaign rhetoric that downtown is unsafe will hurt efforts to bring more people downtown. They were “creating their own bad PR,” she said.

But McComas said proponents should “set aside their differences and come together” with opponents to create a “more locally oriented and fiscally responsible way” to improve downtown.

A version of this story was also posted on the Eugene Weekly website here and will appear in the printed paper on Thursday.

The city of Eugene withheld the purchase options list for property downtown until after Eugene Weekly went to press with its last issue before the election on Measure 20-134. The list now shows that the city’s land purchase costs have increased from earlier estimates of about $16 million to about $19 million now. The purchase prices average about double the real market value the Lane County Tax assessor has set for the properties. The city has offered some owners up to four times the real market value. For the Bradfords building and adjacent one-eighth-block parking lot owned by Diamond Parking Inc., the city purchase option would trade a city parking lot at 12th and Oak that’s twice as large and pay $290,360 in cash.

For the complete updated Broadway options list, see the end of the updated news story here.