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had been expanded into the West University Neighborhood. He opined that, should the City be granting public funds to developers, high standards of development needed to be upheld in that area. In response to a question from Councilor Pap6, Mr. Weinman explained that the Ya-Po-Ah Terrace was a HUD 202 federal project and was tax-exempt because it was a Department of Housing and Urban Development project to build low-income housing. Councilor Pap6 supported the inclusion of the co-housing development project in the MUPTE boundary. Assistant City Manager Jim Carlson, in response to Councilor Pap6, stated that the Eugene area covered 43 square miles. Councilor Pap6 remarked that the project-by-project approval would prevent the West University Neighborhood from having a shoddy development built within its parameters with the benefit of MUPTE. He said that when counting city blocks, the MUPTE boundary seemed to encompass approximately one square mile and was not excessive. Councilor Taylor strongly believed that everyone should share the tax burden and if people are excused from taxes, it should be for a definite benefit. She supported a tax incentive for the core of the city. She opined that the Broadway Place development had not contributed to making the core of the downtown area more vibrant. She advocated for making all of the standards of quality required. She predicted that any proposed MUPTE would be submitted to the City Council in the Consent Calendar. Councilor Taylor asserted that people pay property taxes wherever they live. She thought the idea that a MUPTE was an investment in tax revenue that would otherwise not be collected was erroneous. Councilor Taylor said that new housing just moves tenants from one place to another. Mr. Weinman responded that the population was growing by two percent per year and the need for housing was increasing. He reiterated that increasing the level of development increased the property tax rolls. Mayor Torrey supported the concept of home ownership and incentives that promote home ownership in all areas and in the University area in particular. He recommended ;;thinking outside the box" and allowing, for instance, the co-housing development to qualify for the MUPTE. Councilor Bettman reminded the public that taxing jurisdictions including schools now forego revenue when property is exempted from taxes for ten years. She opined that people would not support forgoing money that would pay for school and core essential services in order to support student housing in the West University neighborhood. Mr. Weinman, in response to Councilor Kelly, affirmed that the council could only approve or reject a MUPTE and could not grant a partial MUPTE. Councilor Bettman predicted that residential housing would be displaced should a developer build on a site. She asked staff to bring back an amendment to delete the expanded district south of 13th Avenue and west of Lincoln Street. Councilor Pap6 asked if an applicant could reapply should the City Council turn a MUPTE down. Mr. Weinman replied that it could. In response to a further question from Councilor Pap6, Mr. Weinman stated that the land on which a development was being built would remain on the property tax rolls during the ten-year exemption period. Mayor Torrey closed the hearing. L:\CMO\2004 Council Agendas\M040421\S040421B.doc