Item 6: MUPTE for North Park Apartments

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balconies, roof overhangs and canopies. 38 parking spaces are provided, which exceeds the minimum requirement of 30 spaces. Parking is accessed from the alleyway and shielded from neighborhood 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 is underdeveloped, based on the zoning. The land, which includes two currently vacant parcels, 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 $6,409. The current tax on the land is estimated at $3,022 and will continue to be taxed during the exemption period. Therefore, $3,322 that is currently being paid in taxes on the existing improvements will come off the tax rolls for ten years ($33,220). However, after ten years an estimated $64,615 will be annually paid in taxes, based on the new improvements. Staff has found that the construction of the housing, as presented, would not be financially feasible without the benefit of the tax exemptionThe pro-forma that was submitted . demonstrates that point. The lost revenue from the taxes on the current improvements will be made up the first year after the ten year exemption ends and the project is fully on the tax rolls. Timing This application was submitted on May 9, 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. COUNCIL OPTIONS The council may approve the exemption, deny the exemption, or may delay approval in order to request additional information from the developer to determine that a satisfactory public benefit has been met. Z:\CMO\2008 Council Agendas\M080714\S0807146.doc