Item A: Review of Draft Request for Proposals for 10th and Charnelton Development Site

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Appendix A DOWNTOWN TOOLS AND INCENTIVES Vertical Housing Development Zone The 10th & Charnelton development site is located within the Downtown Eugene Vertical Housing Development Zone. Established under state law, Vertical Housing Development Zones encourage mixed-use projects that provide dense urban-style development or redevelopment. Specifically, an eligible project consists of ground-level commercial with one or more upper floors of residential housing that has been newly constructed, reconstructed or rehabilitated. The program offers a la-year property tax exemption on the new structure, or incremental change in the property value of the building that comprises the project. The program grants a tax exemption of 20% for each floor of housing that is incorporated above ground floor commercial, with a maximum tax exemption of 80% for any single project. Tax exemption requests are reviewed and approved by the State of Oregon. The exemption is effective upon initial occupancy or re-occupancy. Multi-Unit Property Tax Exemption The 10th & Chamelton development site is located within the Multi-Unit Property Tax Exemption (MUPTE) boundary. The MUPTE program is enabled under state law to stimulate the construction of multi-unit housing in the core area and to ensure use of the core area as a place where citizens have the opportunity to live as well as work. Projects eligible for the tax exemption include construction, addition, or conversion of rental or ownership multi-unit housing. The MUPTE program offers a property tax exemption on the new structure or incremental change in the property value of the building that results from the project, for a maximum of 10 years. Projects are required to address specific quality standards established in the program. Tax exemption requests are reviewed and approved by the Eugene Gty CounciL Brownfield Economic Development Initiative/HUD Section 108 The City of Eugene has been awarded a $2 million Brownfield Economic Development Initiative (BEDI) grantto assist with redevelopment of abandoned, idled and underused properties within the Downtown and Riverfront urban renewal districts. BEDI funds must be used in conjunction with, and for projects financed with, a new HUD Section 108 guaranteed loan commitment. Section 108 provides communities with a sotlrce of financing --,_/...~~ ~--,--~ /- .~ .----.- -'" Request for Proposals 10th & Cbamelton Development Site 15