Urban Renewal in South Corvallis

Urban renewal is an economic development tool that provides funding for projects in specific areas in cities. It has been used for decades in cities around the country, including more than 100 urban renewal areas in Oregon.

In March 2019, Corvallis voters approved the City's first-ever urban renewal district in South Corvallis. The district is intended to help spur economic growth in the area by enhancing public assets such as streets and sidewalks, improving access to commercial services and housing opportunities, and developing resources that can assist other projects in South Corvallis. All of this work will make South Corvallis more appealing to new and existing businesses, which will catalyze economic growth in the area.

Many of the projects identified by the Urban Renewal Plan will build on the action items identified the City's Climate Action Plan by enhancing resiliency and encouraging alternative transportation options throughout South Corvallis.

The current plan was created with input from community members, property owners, City Councilors and representatives of taxing districts.

Incentive Programs for South Corvallis Urban Renewal

Commercial Revolving Loan Fund

NEW: Revolving Loan Fund Program Available for Businesses in South Corvallis

May 27, 2025 - The Corvallis Urban Renewal Agency has approved a Revolving Loan Fund Program aimed at supporting new and existing businesses and encouraging commercial investment in the South Corvallis Urban Renewal District.  Applications will be accepted on a first come, first serve basis beginning June 2, 2025 in person at City Hall, 501 SW Madison Ave Corvallis, Oregon 97330 or by emailing economic.development@corvallisoregon.gov.

Eligible projects include building and facade renovations, new construction, and renewable energy improvements at commercial properties within the South Corvallis Urban Renewal District. The total budget for this program is $250,000 and loans will be provided at a 2.5% interest for eligible business or property owners.

This new loan program was made possible by the South Corvallis Urban Renewal District, which was approved by Corvallis voters in 2019 and is intended to catalyze economic growth in this area of the community for years to come.

Commercial Expansion/Renovation Grants – On May 22, 2025 the Corvallis Urban Renewal Agency approved a $250,000 grant program to support commercial and mixed use capital projects. Grant applications are required to demonstrate a clear return on investment by adding taxable value within the South Corvallis Urban Renewal District or provide three public benefits from an approved list. Applicants will be responsible for the cost of a third-party pro forma review to evaluate financial feasibility. The grant application cycle will open in June 2025 and competitively evaluated. More information will be available soon!

Housing/Mixed Use/Commercial Development Incentives - Incentives for large scale development projects can vary significantly depending on the size, type, and public benefits of the proposed development as well as the site-specific financial need. Please contact Economic Development at economic.development@corvallisoregon.gov or 541.766.6339 or Housing & Neighborhood Services at Housing@corvallisoregon.gov or 541.766.6555 for more information if you are seeking incentives for a large new development project.

History: How Did We Get Here?

Back in 1997, the City of Corvallis adopted the South Corvallis Area Refinement Plan, which envisioned a neighborhood commercial center that would provide a mix of housing, and a range of retail and neighborhood services to serve the area. More than 20 years later, the contemplated projects have not been completed, and South Corvallis still lacks many of the amenities that other neighborhoods enjoy.

To develop its urban renewal plan, the City partnered with Living Southtown, Willamette Neighborhood Housing Services, and other property owners and South Corvallis neighborhoods. An advisory committee was formed, and additional community input was obtained through more than 30 public meetings and events.

Common Questions

What Projects Will Be Funded by Urban Renewal?

Urban renewal in South Corvallis could provide funding for projects to do the following:

• Provide streetscapes and transportation infrastructure. Urban renewal could provide funds for capital improvements, such as sidewalks, pedestrian crossings, traffic signals, bicycle and pedestrian paths, and other transportation infrastructure in the area.
• Develop affordable housing options. Corvallis is working to provide more affordable housing in the community, and urban renewal funds could be used as a tool to assist in the development of affordable and workforce housing.
• Remove barriers for development. Urban renewal funds could be used to work and partner with developers on public-private projects. 
• Provide basic infrastructure. Urban renewal funds could be used to help fund projects to provide basic infrastructure in the area including water, sewer, and storm water. Funding these projects removes a major upfront cost for developers and makes the sites economically viable.

Is Urban Renewal a Tax?

No. Urban renewal isn't a tax — rather, it changes how the existing taxes paid on a property are divided out amongst the taxing districts. Under the new urban renewal plan, every property owner in Corvallis would see a line item on their property tax bill for urban renewal. This would not represent a new tax, just a new way to distribute the taxes they are already paying.

DESCRIPTION OF MEMBERS:
The City Council declares that pursuant to ORS 457.045(3), it hereby appoints an Urban Renewal Agency consisting of the Mayor and all of the members of the City Council and a member of the Benton County Board of Commissioners appointed by the County. Term of office shall be the same as that of the City Council.