Agenda Packet 12-10-18 Meeting - REVISED

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December 10, 2018, Meeting – Item 2C EUGENE CITY COUNCIL AGENDA ITEM SUMMARY Adoption of a Resolution Approving a Low-Income Rental Housing Property Tax Exemption for 11th and Lincoln Meeting Date: December 10, 2018 Agenda Item Number: 2C Department: Planning and Development Staff Contact: Ellen Meyi-Galloway www.eugene-or.gov Contact Telephone Number: 541-682-5532 ISSUE STATEMENT City Council is asked to approve a resolution for a new 20-year Low-Income Rental Housing Property Tax Exemption for 11th and Lincoln, a proposed apartment complex located at the northwest corner of 11th Avenue and Lincoln Street. The developer of the project is 11thandLincoln LLC. The property will be targeted to low-income renters. BACKGROUND The City adopted the low-income rental housing property tax exemption program in 1990. Eugene has approved tax exemptions for 31 affordable housing developments with over 1,200 units since adoption. Council unanimously approved extending the 20-year LIRHPTE program for an additional 10 years in 2011. The approved ordinance also enables recipients to reapply for the 20-year LIRHPTE after the initial 20-year period has expired. Council reviews each tax exemption request on a case-by-case basis. Most recently, council approved a new LIRHPTE for the Emerald Village Eugene development in January 2018 and a LIRHPTE renewal for Woodleaf Village in June 2018. Projects must meet 10 criteria, including requirements for rents and incomes limited to households with incomes at or below 60 percent of area median income . If an application meets the substantive criteria (Eugene Code 9.239(3)(a)-(i)) as referenced in the Report and Recommendation (Attachment A), the City must grant the exemption by resolution (Attachment B). A decision to deny the exemption cannot be made by simple motion or inaction; it would need to be made by a resolution (Attachment C) that explains how the applicant has failed to demonstrate that the tax exemption is in the public interest. Summary of requested tax exemption The requested tax exemption is for 11th and Lincoln, a proposed 70-unit affordable housing development in the Downtown neighborhood (map in Attachment D). The Eugene-based developer, 11thandLincoln LLC, has an option agreement to acquire the property. Craig Weicker is the Managing Member of 11thandLincoln LLC. The development would provide 64 small one-bedroom and six two-bedroom units to low and very low-income households at affordable rents. The development proposal includes laundry facilities, common area and secure indoor bicycle parking.