Agenda Packet 10-17-18 Work Session

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Page 3 of 4 Resolution EXHIBIT A – Report and Recommendation impacts, such as alterations or demolitions, to any of the identified resources. Furthermore, each locale will maintain its setting and special relationships that characterize each property.” No historic structures or existing housing were demolished or removed from the property in the 2 years prior to the date of application. 2.6.7 Project Need. The project’s pro-forma and financial information was analyzed by PNW Economics, an independent, real estate economics consultant who found that the project as proposed could not be built but for the benefit of the tax exemption. The financial information Gordon Lofts submitted in their application is based on projections prior to finalizing financing, construction, and tenanting. It includes assumptions regarding rents, vacancy rates, operating costs, lender underwriting criteria, interest rates, and reasonable rate of return. PNW Economics, the Review Panel, and staff reviewed the assumptions. The PNW Economics analysis concludes that the project would not be viable without the availability of the MUPTE, using the reasonable assumptions outlined and concludes that MUPTE is critical to the success of the project from a financial feasibility perspective. See Section 4 below for the Review Panel’s conclusions. 2.6.8 Public Benefit beyond Period of Exemption. The public benefits of the project that will extend beyond the period of the tax exemption include Green Building (energy performance), Project Design and Compatibility, and Compact Urban Development. 2.7 A presentation on the Gordon Lofts project was given to the Downtown Neighborhood Association on March 28, 2018. 2.7.1 Future Neighborhood Engagement. Prior to completing final drawings, Gordon Lofts will meet with the Downtown Neighborhood Association. Before submitting for permits, Gordon Lofts will submit the design to staff to review conformance with the design attached to the MUPTE resolution (should City Council approve the MUPTE). Staff will also allow the neighborhood an opportunity to review and comment on that final design. 3. A display ad soliciting recommendations or comments from the public regarding this project was published in the Register-Guard on July 14, 2018. The period for comment expired on August 13, 2018 and resulted in 26 written comments. Additional comments were submitted to staff or directly to City Council after the official comment period. All 26 comments received as of October 8 were provided to City Council with the materials for the October 17 work session. 4. The community member MUPTE Review Panel considered the project application, including compliance with program criteria and the independent consultant’s financial review, during 3 meetings held on August 23, September 10, and September 20. The Review Panel concluded that the project meets the Required Public Benefit criteria. The Panel noted that Project Need October 17, 2018, Work Session – Item 2