1.14.2019 City Council Work Session Minutes

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MOTION AND VOTE: Councilor Clark, seconded by Councilor Taylor, moved to direct the City Manager to prepare an ordinance that mirrors Springfield Municipal Code Section 6.112, Unlawful Transfer on Vehicular Portion of the Right -of -Way, and schedule a public hearing. PASSED 6:2, councilors Syrett and Zelenka opposed. 2. WORK SESSION: Housing Tools and Strategies -Construction Excise Tax Planning and Development Director Denny Brand introduced the item and Council Discussion • Support expressed for the CET in general, but not the inclusion of the systems development charge component; keep it simple and reconsider both the upper and lower limits imposed. • The proposed CET will have a general negative effect on the General Fund; intent of tax is to lower the cost of building affordable housing. • Questions asked about how much money will be lost from SDC resources and the General Fund. • The proposed process will be cumbersome for a couple of years and then simplify; the proposed CET has strong, diverse support and can be adjusted after two years if needed. • It is important to establish an affordable housing fund and the proposal provides a means to this end; the legislation allows for some flexibility to use the funds for mortgage/rental assistance and emergency repairs. • The CET makes sense as a good start to the development of more subsidized housing. • More information requested about the track record of the CET in other communities like Bend, Oregon. • The CET is a long-term strategy; the first two years will be challenging but can review its effectiveness and make adjustments. • Only the feasibility of the proposed CET was analyzed by the committee, not the economic impacts; important to have conversation about what types of housing are most needed. MOTION: Councilor Clark, seconded by Councilor Taylor, moved to direct the City Manager to prepare a draft ordinance for council consideration and schedule a Public Hearing to create a Construction Excise Tax to support an Affordable Housing Fund that includes the provisions described in Option 1. MOTION TO AMEND: Councilor Zelenka, seconded by Councilor Syrett, moved to amend the motion add a new Option 1.iii - "1.0 percent tax rate effective July 1, 2021," and renumber the rest of Option 1 accordingly. • With this action, council will be creating a financing mechanism for subsidized housing that will fall short on its intended purpose and necessitate a real estate transfer tax. • Many Oregon communities have already established a one percent tax; confident it will move the dial on the amount of affordable housing developed and the affordability of housing. • The amount of funds generated through a MUPTE incentive is more than would be generated with a CET. VOTE ON MOTION TO AMEND: PASSED 5:3, councilors Clark, Taylor and Evans opposed. VOTE ON MAIN MOTION AS AMENDED: PASSED 6:2, councilors Clark and Taylor opposed. MINUTES - Eugene City Council January 14, 2019 Page 2 Work Session