Item A: Multi-Unit Property Tax Exemption

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ECC UGENE ITY OUNCIL AIS GENDA TEM UMMARY Work Session: Multi-Unit Property Tax Exemption and Envision Eugene Meeting Date: October 12, 2011 Agenda Item Number: A Department: Planning and Development Staff Contact: Nan Laurence www.eugene-or.gov Contact Telephone Number: 541-682-5340 ISSUE STATEMENT The City Council is asked to provide direction on a proposed strategy for determining priority areas for the Multi-Unit Property Tax Exemption (MUPTE) program in the context of Envision Eugene for property outside of the Downtown Plan area. BACKGROUND 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 program provides a 10-year property tax exemption on qualified improvements. On July 20, 2011, the council considered MUPTE in the context of Envision Eugene and directed staff to proceed in two phases: 1) prepare an ordinance and hold a public hearing to extend the sunset date for MUPTE within the Downtown Plan area, and 2) conduct additional work sessions in the fall to discuss other priority areas for council consideration and future action. On September 19, 2011, the council held the public hearing and on September 26, 2011, approved an ordinance extending the sunset date for MUPTE within the Downtown Plan Area. As directed, staff is returning to the council to discuss a process for consideration of other priority areas for MUPTE as part of Envision Eugene implementation. Envision Eugene Envision Eugene is a community-based process to determine how best to accommodate growth in the community over the next 20 years. The Envision Eugene Draft Proposal identifies several strategies calling for more compact urban development and multi-family housing, and specifically focusing new development and redevelopment on key transit corridors and in core commercial areas. The insights gleaned from the intensive visioning phase of Envision Eugene have highlighted the need for incentives to help attract development to the targeted areas, to overcome market challenges, and to provide for adaptable, flexible, and collaborative implementation. The council’s recent action to continue the MUPTE program for the Downtown Plan area implements an Envision Eugene pillar by promoting compact urban development. For areas outside of downtown, MUPTE similarly represents a potentially effective and flexible incentive to encourage housing and residential mixed-use development in desired locations. S:\CMO\2011 Council Agendas\M111012\S111012A.doc