Item 5: MUPTE for 16th and Hilyard Apartments

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fascia board is 17 feet, and a hip roof eliminates the towering effect of a gable end. Additional investment will be put into porches, rail details, stone columns and trim details. Front porches provide gathering spaces and, given their proximity to the street and sidewalks, there will be less likelihood of vandalism. Tenants will be able to interact between themselves and the community via the open porches and balconies. Each unit is provided with outdoor gathering space directly adjacent to the street. Trees, shrubs, and lawn area will further integrate the development with the neighborhood. The parking area will consist of seven spaces (exceeding the minimum required by the Code for this 12-bedroom complex) which will be shielded from public view. Impact and Need for Tax Exemptions to Encourage Housing The City and other local taxing districts forgo revenue when property is exempted from taxes. This project proposes new construction on a property that has been underdeveloped, based on the zoning. The land continues to be taxed during the exemption period. The improvements will bring substantial revenue, after ten years, beyond what is currently being collected. The total current property taxes on the property total $4,037. The tax on the land is estimated at $960 and will continue to be taxed during the exemption period. Therefore, $3,077 that is currently being paid in taxes on the existing improvements will come off the tax rolls for ten years ($30,770). However, after ten years an estimated $9,069 will be annually paid taxes on the new improvements. Staff has determined that construction of this housing development, as presented, would not be financially feasible without the benefit of the tax exemption. The pro-forma that was submitted demonstrates that point. The lost revenue from the taxes on the current improvements will be made up 3.39 years after the ten year exemption ends. Timing This application was submitted on April 24, 2008. The council has 90 days to review the Director’s Report and Recommendation. If the council hasn’t acted in 180 days the application is considered approved. City Council consideration is currently in the first 90-day time period. RELATED CITY POLICIES MUPTE is enabled by state statute. The City of Eugene has participated in the MUPTE program since 1978. Since that time, 18 requests have been approved by the City Council. Encouraging housing in the core area is consistent with numerous adopted planning and policy documents. Examples include: 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. West University Refinement Plan V.9 The City will encourage residential uses in all parts of the plan area. V.11 The City and the neighborhood shall study ways to encourage a variety or mix of structure types providing both owner and rental opportunities and appealing to a diverse population. Z:\CMO\2008 Council Agendas\M080714\S0807145.doc