Item A: Core Campus - Application for MUPTE for 505 East Broadway

Home Browse Search

EUGENE CITY COUNCIL AGENDA ITEM SUMMARY Eugene Action: Core Campus - Application for Multiple -Unit Property Tax Exemption for Residential Property Located at 505 East Broadway (The Hub in Eugene) Meeting Date: June 17, 2013 Agenda Item: A Department: Planning and Development Staff Contact: Amanda Nobel www.eugene - or.gov Contact Telephone Number: 541 - 682 -5535 ISSUE STATEMENT The City Council is asked to take action on the request for a Multiple -Unit Property Tax Exemption ( MUPTE) by Core Campus for The Hub in Eugene project located at 505 East Broadway. BACKGROUND In January, the City of Eugene received a MUPTE application from Core Campus for a proposed student housing development (The Hub in Eugene) on East Broadway and Ferry Street. Council held work sessions on May 29 and June 10 to review and discuss the Core Campus proposal and written public comment. Information Requested at the June 10 Work Session At the June 10 work session, councilors made the following requests for information: Housing market information (Attachment A) If /then scenarios (Attachment B) Brownfield information: The property owners and prior user have ongoing and complicated negotiations. The site continues to be an open file with Department of Environmental Quality (DEQ). Some minimal remediation has already occurred including removal of the underground tanks. The cost of additional remediation may be somewhat limited but is as yet undetermined; the prior user bears responsibility for remediation costs. In its current state, ground floor residential is not allowed. The Report and Recommendation of the Planning and Development Department is in Attachment C and includes the list of program defined public benefits and other benefits from the project. The resolutions for approval and denial are in Attachment D and E. Based on council discussion on the Core Campus proposal and potential revisions to the program in general, the approval resolution includes the public benefits as conditions: A. Payment in Lieu of Affordable Housing. A requirement of guaranteed payments to the City in excess of the land property tax due in years six through ten, totaling $1,030,000, which the City could choose to apply to affordable housing. Continuation of the MUPTE would be conditioned on each of the guaranteed payments being paid. The project would S:ACMO \2013 Council Agendas \Ml306l7 \Sl3O6l7A.doc