08/13/1984 Meeting (2) - Laserfiche WebLink

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Ms. Wooten moved, seconded by Ms. Schue, that the bill be e read the second time by council bill number only, with unanimous consent of the Council, and that enactment be considered at this time. Councilor Hansen stated that he will vote against the motion, stating that the increase in taxes on the businesses located in the downtown would only compli- cate the Downtown Plan goal of encouraging business relocation to that area. He felt that it was inappropriate to exclude the not-for-profit businesses and residential properties from the DDD taxes until the City resolved some of the problems existing in the downtown. Councilor Ehrman stated that she would abstain from the motion due to a conflict of interest. In response to a question by Councilor Schue regarding the impact of the ordinance, Ms. James stated that the Eugene citizens had approved an ordinance in May 1984 establishing the ad valorem assessment for the downtown at $190,000 for FY8S. She said that assessment was appropriated to the downtown properties based on their assessed valuation. She said that the taxes for the other businesses would increase if the valuations for the residential and not-for-profit businesses were removed from the tax base. Councilor Wooten stated that the City was attempting to attract a diversity of businesses to the downtown. She said that businesses that were exempt from taxes by State and Federal laws fairly fell within the ordinance provisions. e Mr. Whitlow stated that the Downtown Plan to be reviewed by the council will study the downtown taxing system. He said the City in the present issue was attempting to avoid two public agencies going to court over the issue or the City writing off an assessment. Councilor Ball said he had some reservations regarding the exemption for residential property, stating that there was no way to determine if the exemption applied to any particular income level of housing. He said he was not sure that the City needed to encourage residential use in the downtown without some targeting of that policy. He said he will oppose the ordinance. Councilor Bascom stated that she would support the recommendation of the Downtown Commission in spite of the drawbacks of the ordinance. In response to a question by Councilor Hansen regarding the Downtown Commission study of the taxing structure, Mr. Whitlow estimated that the Downtown Commis- sion will receive a staff report no earlier than Spring 1985. He expected that at least six months will be spent in the study. In response to another question by Mr. Holmer, Ms. James stated that LCC was sUbject to the 10th and Oak assessment credits for all but one year. She said the tax bill for LCC would be approximately $6,000 if these credits were not applied. Councilor Obie stated that he was basing his support of the ordinance on the recommendation of the Downtown Commission which included representatives of the area businesses and residents of the downtown. - MINUTES--Eugene City Council August 13, 1984 Page 6