02/13/1989 Meeting - Laserfiche WebLink

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e e e V. PUBLIC HEARING: ORDINANCE CONCERNING MULTIPLE-UNIT RENTAL PROPERTY TAX EXEMPTION City Manager Mike Gleason introduced the topic. Councilor Bennett declared a potential conflict of interest on the issue because of his fiduciary interest in an undeveloped parcel within the geographical area affected by the proposed ordinance. Before removing himself from the discussion, Mr. Bennett referred to a low-income housing fee on a project that was not designated low income initially. He called attention to the standards and guidelines for processing applications in Exhibit "A" and wondered if the intent was for the fee to exceed what would be paid in full property tax. Richie Weinman, Planning, Development, and Building Department staff, reported that the property tax exemption was enabled under State legislation and originally was intended to provide incentives for construction of multiple-family housing in core areas. The program was available in Eugene previously, but was sunsetted in 1985. The program provides a ten-year property tax exemption only for new improvements with the land and any existing improvements continuing to receive property taxation. Mr. Weinman said the proposed ordinance only addresses buildings having five or more units. The Downtown Commission recommended re-instatement of the program to the Planning Commission. Mr. Weinman reported that the Planning Commission had expressed concern that the ordinance could encourage demQlition of historic or potentially historic properties. The standards and guidelines attempt to address that concern by providing some protection for historic properties. There was consensus among Planning Commissioners that low-income housing provides a public benefit as required by State legislation. If fewer than 50 percent of a project's units are low-income housing, the Planning Commission recommends that a fee be collected, amounting to ten percent of what taxes would otherwise be in years three through ten, and that money should be dedicated to low-income housing. Staff's review of that recommendation led to the conclusion that a ten percent fee could be contrary to State law. Staff proposed, instead, an annual charge equal to $100 for each studio dwelling unit, $110 for each one-bedroom unit, $125 for each two-bedroom unit, and $135 for each other dwelling unit located on the property subject to the charge. Mr. Weinman pointed out that these charges had been misprinted in the ordinance submitted to the council, an error observed earlier by Mr. Bennett. Regarding boundary issues, Mr. Weinman said that the Planning and Downtown commissions favored expanding the boundary to provide incentive for more housing while staying within the State statutes that require core area housing. Mr. Weinman said the boundary shown on the map distributed to council should include an area between 18th and 19th avenues west of High Street that appeared to be excluded. MINUTES--Eugene City Council February 13, 1989 Page 5