Item 2D - Appl.for MUPTE (Tate) - Laserfiche WebLink

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Mr. Bruce Cooley e-mailed the following comment: I wonder why the city even has a MUPTEprogram when we are so overrun with apartment; already. Why do we need to offer potent incentives? Rent is enough incentive to build any housing in Eugene, especially in the near-University area. 1375 Olive is close enough to UO to command pretty high rent, so what more incentive do these developers need to build? Does anybody really think they will not build these apartment; if you don't offer them a huge long-term tax break? A few years ago I completely rebuilt a multi-unitproperty in the University area that has 9 bedrooms and 5 bathrooms on a 30' x 150' lot, andI sure wish someone would offer me a lO- year break from the $4,500 or so I pay every year now. That would be almost $50,000. Wow. Please let me know how I can sign up for this tax break. Staff response to Mr. Cooley's comment: Adopted City policies encourage compact urban growth and downtown area housing. Because it is significantly more expensive to build multi-family housing in the core area, incentives are needed to help level the playingfield The tax exemption is only granted if there is evidence that the project would not otherwise be built. Furthermore, it is only available to the new construction of housing development; of at least five unit,'. The rehabilitation project that Mr. Cooley refers to is not new construction and would not qualify. The project proposed for 1375 Olive is not a rental project but a condominium development which will add owner occupant; to the neighborhood. The tax exemption, if granted, will begin following completion of the project. The applicants have stated that if the exemption is granted, groundbreaking will take place almost immediately. RELATED CITY POLICIES MUPTE is enabled by state statute. The City of Eugene has participated in the MUPTE program since 1978. Since that time, eleven requests have been approved (Attachment D). Encouraging housing in the core area is consistent with numerous adopted planning documents. Examples include: The Downtown Plan Policy V. 1 Stimulate multi-unit housing in the downtown core and on the edges of downtown for a variety of income levels and ownership housing. (The Tate is not inside the Downtown Plan boundary but is on the edge, five blocks from the intersection of Broadway and Willamette.) Growth Management Policies Policy 1 Support the existing Eugene Urban Growth Boundary by taking actions to increase density and use on existing vacant land and under-used land within the boundary more efficiently. Policy 2 Encourage in-fill, mixed-use, redevelopment, and higher density development. Policy 3 Encourage a mix of business and residential uses downtown using incentives and zoning. L:\CMO\2004 Council Agendas\M041122\S0411222D.doc