12/03/1980 Meeting - Laserfiche WebLink

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~ v V. PRELIMINARY RECOMMENDATIONS ON AMENDING THE MULTIPLE-UNIT PROPERTY TAX . EXEMPTION PROGRAM (memo and additional information distributed) Mr. Henry stated that this proposal is for new construction, not existing buildings or rehabilitation. Four areas should be considered for change: extension of the program to 1985, reduction of minimum size of projects from 24 to 10 units, negotiation of the length of exemption for up to ten years, and expansion of the boundaries. If approved, the changes will come back in ordinance form to the council in January or February. He introduced Robin Johnson, HCC, to provide additional information. Ms. Johnson stated that the multi-unit property tax exemption program was adopted in 1977 to encourage housing downtown. Projects had to be 24 units or larger in size and within certain boundaries. Since the beginning of this program, the City and State have made changes to the program. The State now allows cities to establish the minimum number of units to qualify for the program, and the City has redefined the requirements for public benefits and created a project advisory committee which recommends public benefits to the Joint Housing Committee on a project-by-project basis. The Joint Housing Committee has met twice regarding this program and developed amendments that serve to broaden the scope of the program and improve the program's capacity to encourage downtown housing. The committee is presenting preliminary recommen- dations for conceptual approval. If this approval is given, the committee will proceed by refining the amendments, drafting the necessary legislative language, contacting School District 4-J for input, and returning to the council for final approval after the first of the year. The recommendation to extend the program . to 1985 would be necessary to keep the old program operational even if the other three recommendations are not approved. In regard to reducing the number of units, even smaller projects than ten units could be considered in some instances. The recommendation allowing negotiation of up to ten years for the length of exemption would give the City the ability to decide how much tax benefit would be given. This should be related to individual projects and their size, location, etc. The fourth recommendation is to expand the boundaries, although the committee has no firm recommendations of where the bound~ries should be. They are awaiting the report on long-term stategies for downtown housing. Mr. Lieuallen asked if this requires any changes by the legislature. Ms. Johnson stated that it does not. Ms. Miller arrived at the meeting. Mr. Lieuallen asked if the committee will go to the school district and if their board must approve this program. Ms. Johnson stated that policy approval was given in 1977, but the committee will go back to the board to explain the proposed changes and ask for their input. Mr. Lieuallen asked for an estimation of the amount of subsidy and if this would be a ten-year abatement for all projects. Ms. Johnson stated that this only exempts the improved values of property. She would bring back a report on what the costs are to the City. Charles Kupper, HCC, stated that as an example, the tax abatement would be about $150,000 for ten years for the Bro~dw~y C~nter. . MINUTES--Eugene City Council December 3, 1980 Page 5