CC Minutes - 01/22/07 Meeting - Laserfiche WebLink

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Councilor Clark ascertained that the estimated life of the building would be approximately 60 years. He pointed out that the development would bring roughly $1 million in property tax to the City over its lifetime in addition to the existing tax burden on that property. He observed that it was the opinion of many that these types of exemptions took money away from jurisdictions, but he disagreed. He believed it added money to the City’s coffers over the long-term. He likened it to the many establishments that sell appliances with no interest and no payments for a period of time and do so with the understanding that without these enticements the transactions would be less likely to happen. Councilor Solomon underscored that the MUPTE was not a complete tax exemption as the developer was still required to pay taxes for the land. She reiterated that the 10-year exemption was only for the improvements made to the land. She noted that the developer had included in his application eight sustainable features. She pointed out that the council had sustainability as one of its goals for the coming year. She believed that this was the kind of work the council wished to promote and wanted others to emulate. She added that the West University Neighbors expressed support for the project. Councilor Poling echoed the comments of councilors Clark and Solomon. He said the council had the same conversation every time another MUPTE application was made. He reiterated that no money was being taken away as the taxes were still being paid on the property and the exemption was only for the improve- ments. He believed it to be a good project and he believed the MUPTE was a good tool for promoting such projects. Councilor Zelenka pointed out that the West University Neighbors had sent a letter conveying the group’s support for and approval of the project. He said there were many deteriorating housing in that neighborhood and he believed the project would benefit it. He commended the developer for the inclusion of the elements of sustainability, such as solar panels and carpeting made from recycled materials. Councilor Bettman did not dispute it was a good project. She asserted that there were families living in single-family houses that were not getting tax breaks and could not afford to renovate their houses. She alleged that all of the tax breaks statewide added up to $18 billion. She questioned whether the City could “afford to subsidize this development” or if it should let the market forces take hold. She called the assumption that the development would not be built without the exemption a “false argument” because no one could prove whether it would or would not be built. She asked if there was a way to reduce the timeline. Mr. Weinman responded that the State statute for the MUPTE dictated that the exemption should be for 10 years. Councilor Bettman declared that the MUPTE made “hypocrites out of us” every time elected officials complain that there was not enough money for public safety, road infrastructure, and schools. She opined that the project did not justify a tax exemption. Councilor Taylor agreed with Councilor Bettman. She also felt it was a good project, but there were people “all over town” whose houses needed upgrading. She did not think the council could “give everybody a tax exemption.” Mayor Piercy said if the council had designated this area for this kind of exemption to occur to meet a certain set of goals, then the council should look to changing the policy if it no longer wished to support the MUPTE. MINUTES—Eugene City Council January 22, 2007 Page 6 Regular Meeting