My WebLink
|
Help
|
About
|
Sign Out
Home
Browse
Search
Item B: Ordinance on MUPTE
COE
>
City of Eugene
>
Council Agendas 2008
>
CC Agenda - 10/22/08 Work Session
>
Item B: Ordinance on MUPTE
Metadata
Thumbnails
Annotations
Entry Properties
Last modified
6/9/2010 1:14:52 PM
Creation date
10/17/2008 10:31:11 AM
Metadata
Fields
Template:
City Council
City_Council_Document_Type
Agenda Item Summary
CMO_Meeting_Date
10/22/2008
There are no annotations on this page.
Document management portal powered by Laserfiche WebLink 9 © 1998-2015
Laserfiche.
All rights reserved.
/
48
PDF
Print
Pages to print
Enter page numbers and/or page ranges separated by commas. For example, 1,3,5-12.
After downloading, print the document using a PDF reader (e.g. Adobe Reader).
View images
View plain text
APARTMENT ANNUAL REVENUE LOST TOTAL TAX AVERAGE CURRENT <br />PROPERTY TAX ON REMOVED PAID (ON TAX PAID ANNUAL TAX <br />PRIOR TO IMPROVEMENT LAND) ANNUALLY PAID ON LAND <br />MUPTE (LAND IN YEAR ONE DURING DURING AND <br />PLUS AND MUPTE MUPTE IMPROVEMENTS* <br />IMPROVEMENTS) ESTIMATED 10 EXEMPTION <br />(YEAR) YEAR TOTAL <br />Paradice Apts. 3,376 (1995) 1,398/18,733 24,020 2,404 18,156 <br /> <br />Burnell <br />3,564 (1995) 3,084/41,425 8,114 811 5,463 <br />Ambrose <br /> <br />Nozama Apts. 1,693 (1996) 135/1,809 19,065 1,905 10,959 <br /> <br />Hilyard House 3,357 (1996) 1,769/23,704 19,240 1,923 31,320 <br /> <br />*If one of these projects were constructed without the MUPTE the total tax exempted over ten years would <br />be approximately ten times the amount in the last column. However, it can be assumed that they would <br />not have been built at all, because the applicant had to financially demonstrate that the project wasn’t <br />feasible “but for” the MUPTE. <br /> <br />When was the current MUPTE boundary created, and has multi-family activity <br />followed the boundary amendments? <br /> <br />Response: The MUPTE boundary has changed numerous times since it was originally <br />created. The current boundary was adopted in 2004. Multi-family development activity <br />is most significantly impacted by economic factors which include the cost of land and <br />construction, interest rates, and housing demand. To some extent the degree of <br />construction is also impacted by opportunities in other locations. <br />After the boundary was reduced to the heart of downtown in the late 1990’s no multi- <br />family construction took place in the deleted MUPTE area. When the boundary was <br />mostly restored to the previous area in 2004 the tool was used and ten new developments <br />applied for and received approval. <br /> <br />If applied to other neighborhoods the tool may not work immediately because the rental <br />rates may not be adequate to offset the construction costs – even with a ten year tax <br />exemption. <br /> <br />Are there demonstrable differences between the developments with MUPTE and <br />without? <br /> <br />Response: Multi-family housing construction is primarily influenced by economics. The <br />most significant determining factors are the cost of land, cost of construction, and <br />potential rental income. There were recently two potentially eligible projects developed <br />in the West University Neighborhood (WUN) that did not apply for MUPTE assistance. <br />A local appraiser believes that neither needed the MUPTE (and therefore couldn’t prove <br />the “but for” requirement) because they were able to purchase the land at a very <br />favorable land value. Since there is almost no bare land in that neighborhood, any <br />redevelopment also includes an additional cost for an improvement (typically an old <br />
The URL can be used to link to this page
Your browser does not support the video tag.