Laserfiche WebLink
<br /> <br />ECC <br />UGENE ITY OUNCIL <br />AIS <br />GENDA TEM UMMARY <br /> <br /> <br /> <br /> <br />Work Session: Discussion of Imposing Fees on Unoccupied Downtown Buildings <br /> <br /> <br />Meeting Date: February 28, 2007 Agenda Item Number: A <br />Department: Planning and Development Staff Contact: Richie Weinman <br />www.eugene-or.gov Contact Telephone Number: 682-5533 <br /> <br /> <br /> <br /> <br />ISSUE STATEMENT <br /> <br />The City Council requested a work session to discuss imposing fees on unoccupied downtown buildings. <br /> <br /> <br />BACKGROUND <br /> <br />The Downtown Plan, adopted in 2004, includes policies related to downtown as a strong regional center, <br />and a place that supports the urban qualities of density, vitality, livability and diversity. A significant <br />amount of redevelopment activity, including both public and private investments has occurred in the <br />past five years, although some properties remain vacant or underutilized. To implement the policies in <br />the Downtown Plan, the City needs a combination of successful strategies to improve the viability of <br />redevelopment proposals and address those properties which are vacant or underutilized. <br /> <br />Much of downtown is successful, active throughout the day and evening. The most recent survey staff <br />found regarding this issue was conducted by Duncan and Brown in spring 2005. Although not very <br />recent, it indicated a downtown retail vacancy rate of 7% and a downtown office vacancy rate of 26%. <br />Large vacancies such as the Centre Court Building escalate the office vacancy rate. Residential <br />downtown vacancy was under 1% as of fall 2006. <br /> <br />A fee could take several different formats including a penalty fine, a fee on unoccupied space, or a fee <br />collected within the existing Downtown Services District program. The Downtown Services District <br />program collects a per square foot fee on occupied space. Currently, fees are not collected on <br />unoccupied space. The fees support services provided by Downtown Eugene, Inc. (DEI). <br /> <br />The following are some initial pros and cons associated with the imposition of fees on unoccupied <br />buildings: <br /> Pros <br /> <br />Potential to increase occupied space. <br />? <br /> <br />Potential revenue to support downtown services. <br />? <br /> <br /> <br /> Cons <br /> <br />Potential to encourage inactive or marginal uses that do not contribute to the vitality of the <br />? <br /> <br />area. <br /> Fee amount insufficient to motivate building owners. <br />? <br /> <br /> Administration cost associated with monitoring and collection. <br />? <br /> <br /> L:\CMO\2007 Council Agendas\M070228\S070228A.doc <br /> <br />