Agenda Packet 9-11-19 Work Session

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September 11, 2019, Work Session – Item 1 contractor provide an affidavit attesting to not having any unpaid judgments for construction debt, including unpaid wages, and to being in compliance with Oregon tax laws, c) post information about the City’s Rights Assistance Program in English and Spanish on the job site during construction of the project, and d) after construction, provide a report of the home city or zip code of all the construction labor workers. Moderate-Income Housing Contribution. RNS Management has committed to maintaining a minimum of 30 percent of the units (15) with rents that qualify as moderate-income units during the MUPTE period. (Moderate income is defined in the MUPTE ordinance as affordable to households at 100 percent of the area median income.) Project Design and Compatibility. The building is being constructed as an infill addition on an existing developed site. The project design is intended to harmonize with the scale, form and quality of onsite and adjacent development. The project meets the design intent of designing for the human scale, appropriate to the local climate and natural resiliency, promote transparency, help define a sense of place, fit the neighborhood, and employ high-quality materials and color. Historic and Existing Housing Sensitivity. The project site does not have existing housing other than Eugene Manor, which will remain. The site is adjacent to one building that meets the MUPTE definition of “historic locale” (a building that has a historic, cultural and/or architectural significance). The City’s historic preservation staff reviewed the project site and deemed the historic locale is not affected by the Ferry St. Manor redevelopment. Project Need. Johnson Economics, an independent real estate consultant firm, provided a pro forma evaluation of the project’s viability with a review of assumptions including income, lease rates, operating costs, permanent financing, construction costs and return. (See Attachment F for the analysis.) The consultant concluded that the project proforma used reasonable assumptions, the project would not be viable without the availability of the exemption, and that MUPTE is critical to the success of the project from a financial feasibility perspective. The Review Panel concluded that project need was demonstrated and a majority agreed that a 10-year exemption was warranted. Two members advocated for shorter exemptions, and one member advocated for no exemption. Tax Impact Ferry St. Manor will generate property tax revenue on the land. The estimated property tax paid will be approximately $3,900 in year one. During the exemption period, the total taxes to be paid on the land would be approximately $45,000. After the exemption period, it is estimated the entire development will generate $113,000 in year 11. Public Comments A display advertisement was published in The Register-Guard on April 14, 2019, soliciting comments for 30 days. The period ended on May 14, 2019, at 5:00 p.m. All written comments received by staff through August 26 are included as Attachment G. MUPTE requires applicants to contact the relevant neighborhood association to share project information and seek input. The proposed project is located in the West University Neighborhood,