Item B: Core Campus Application for MUPTE for 505 East Broadway

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Project Overview The Hub in Eugene would be a 12-story, $44 million project: 197 apartments with on-site parking, nearby parking, and commercial retail space. The site, which was a former Chevron service station, has been vacant for eight years and is a brownfield site. Directly to the west is a Korean/Japanese restaurant (formerly a Dunkin Donuts). To the east is a Pizza Hut. Due north is a storage facility, and south, across Broadway, are eating establishments (including Burrito Boy) and offices. The project is proposed to have 501 bedrooms, 4,430 square feet of retail space, 34 on-site parking spaces, and 88 surface parking spaces in a nearby lot (901 Franklin proposed). The building would be designed to achieve LEED Silver certification and would include a green roof among other features. The first-floor commercial spaces, sales center, and lobby, would have a clear floor-to-ceiling glass storefront. The commercial space would front East Broadway. The development would have onsite staff and security: six to eight full-time jobs and six part-time jobs. The full-time staff would consist of a property manager, an assistant manager, a leasing director, a leasing professional, a chief building engineer, a maintenance technician, and porters. The proposed construction schedule would be 14-16 months long and provide an average of 120- 150 construction jobs. If the MUPTE is approved, construction would begin in February/March 2014. MUPTE Program The MUPTE program is enabled by state legislation and designed to encourage higher density housing and redevelopment in the core area and along transit corridors. The objective aligns with several of the pillars of Envision Eugene. Increasing the amount of multi-family housing in the downtown and along transit corridors helps reduce pressure on urban growth boundary (UGB) expansion and protects existing neighborhoods. The program provides a 10-year property tax exemption on qualified new multi-unit housing investments that occur within a specific, targeted area, that meet program requirements, and that are reviewed and approved by the council. During the exemption period, property owners still pay taxes on the assessed value of the land and any commercial portions of the project, except those commercial improvements deemed by the council to be a public benefit and included in the exemption. In September 2011, the council added the option to exempt the commercial portion of a multi-unit housing project to the extent that the commercial property is required or considered to be a public benefit. The council amended Eugene’s code provisions in November 2008 to assist both staff and the council in evaluating a MUPTE application with 1) adoption of approval criteria and 2) direction to the City Manager to adopt a public benefit scoring system (described below). Staff’s review of the Core Campus MUPTE proposal is based on the current program requirements. As ideas and potential revisions to the MUPTE program have emerged from the City Council’s discussions, staff has had conversations with the developer about the possibility of incorporating elements of the MUPTE revisions into proposed conditions of approval. S:\CMO\2013 Council Agendas\M130610\S130610B.doc