Item B: Ordinance on MUPTE - Laserfiche WebLink

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October 22, 2007 Councilor Zelenka requested that staff provide council with options on making the local standards less subjective and more objective. That is the basis for the proposal provided for consideration. The ordinance, as proposed, uses the word “better” one time. It is in the current MUPTE ordinance [2.945 (1)] and is not changed, although the sentence is edited to enable the district to be expanded to the Trainsong Neighborhood: There is a need and demand for better housing at rental rates or sale prices accessible to a broad range of the general public in the downtown and transit oriented areas which is not likely to be produced without this incentive. This incentive is intended to: In this context the term “better” is subjective and could be interpreted in various ways, including an improvement over the existing land use. A traditional way to measure improvement would be the resulting increase in property value. 3) Please provide a map delineating "transit oriented areas" which is a completely new term, as well as define what a "transit oriented area is?" Why didn't you use the term in the code "Transit Oriented Zone?" Response: The map is included in the attachments. The term, “Transit Oriented Area” comes from the state statutes that enable the tax exemption. The statute language originates from an expansion of the original purpose that was limited to the “core area” in order to accommodate housing that is built along transit corridors, such as the MAX in Portland. The area proposed for expansion up to and including the Trainsong Neighborhood is being done through the Transit Oriented Area portion of the statutes, because it is arguably not in the core area. 4) According to the criterion to build 5 or more units, a developer could remove 5 units and build 5 and still get tax breaks-correct? Would it be consistent with the state statute to adopt criteria requiring a net gain of 5 units? If it is legal to do so please provide language to achieve it with the added caveat that units that were demolished within a year before application is made, get counted in the formula for determining net gain of units. Response: It is possible that a developer could remove five units and then receive Council approval for a MUPTE to add five units. To date, this has not happened. There has consistently been a gain of five units or more. It is possible for the City to add that requirement. For example, council could add a new subsection to E.C. 2.945(6) to provide that in order to approve an application the council must find that “construction of the multiple-unit housing project will result in a net gain of five or more housing units. Units demolished within the year preceding the filing date of the application will be included in the calculation of whether the project would result in a net gain of five or more housing units.” 5) Please provide language to amend to continue to collect the current rate of taxes on land and improvements during the 10 years of tax breaks, at least that way the Co., city, and schools won't be losing the revenue they are currently receiving. Response: Z:\CMO\2008 Council Agendas\M081022\S081022B.docm