By RAELYNN RICARTE
News staff writer
October 12, 2007

The Hood River City Council is moving ahead with a taxation plan to pay the salary of a person to market downtown businesses.

On Tuesday, the elected body decided that building owners should be allowed to opt out of the special assessment.

“The council felt that if this was a voluntary effort then more people would feel comfortable about participating,” said Bob Francis, city manager.

The Hood River Downtown Business Association has requested the formation of an Economic Improvement District. The money raised during the three years of its existence would be used to supplement the wages of Moira Reynolds, the DBA’s part-time promotional coordinator and owner of PoCards on Oak Street.

“The advantage of this program is that it will pay for a person who is dedicated to getting stores filled and keeping them filled,” said Francis.

He said if every building owner in the downtown corridor participates, the assessment on square footage is expected to generate about $27,000 per year. The current proposal is to have properties along Oak Street pay five cents per square foot. Buildings along State, Columbia and Industrial streets, and both Cascade and Sherman avenues, would be charged 3 cents per square foot.

Since residences would not be included in the EID, that amount of square footage would be deducted from the total of a building. For example, a structure with 20,000 square feet — but half of which is used for residences — would be assessed on only 10,000 square feet.

Nonprofit organizations, public facilities and undeveloped parcels would be exempt from the assessment.

The city would collect the funds and deduct 5 percent to cover administrative costs. The balance would be turned over to the HRDBA within 30 days of receipt.

Francis said by the end of three years, DBA members will know if having Reynolds work on their behalf full-time has paid off in added profits.

He said if more than 33 percent of the downtown property owners object to the EID, the whole idea will be dropped. He will bring a final draft copy of the ordinance setting up the program before the council in January.

At that time, the elected officials can choose to proceed with formation of the EID, modify the proposal yet again, or scrap it altogether.

In April, the council held the first reading on an EID ordinance that raised objections from some business owners. These individuals, many of whom were service providers, did not want the assessment cost passed on in the form of higher rents. They said the EID would benefit commercial enterprises but not attorneys and other professional firms.