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<br /> <br />ECC <br />UGENE ITY OUNCIL <br />AIS <br />GENDA TEM UMMARY <br /> <br /> <br /> <br /> <br />Public Hearing and Possible Action: An Ordinance Concerning Multiple-Unit Housing <br />Property Tax Exemptions and Amending Sections 2.945 and 2.947 <br />of the Eugene Code, 1971 (to Reflect Changes to the Sunset in the State Statutes) <br /> <br /> <br />Meeting Date: October 24, 2005 Agenda Item Number: 5 <br />Department: Planning and Development Staff Contact: Richie Weinman <br />www.eugene-or.gov Contact Telephone Number: 682-5533 <br /> <br /> <br /> <br /> <br />ISSUE STATEMENT <br /> <br />The City Council is asked to conduct a public hearing and consider an ordinance that extends the sunset <br />date of the Multiple Unit Property Tax Exemption Program (MUPTE) from 2006 to 2012. City Council <br />action could take place either immediately after the public hearing or on November 14, 2005. <br /> <br /> <br />BACKGROUND <br /> <br />The City of Eugene has participated in the MUPTE program for over 25 years. This incentive program <br />for core area housing is available to the City because it is enabled in state statute. Each individual local <br />exemption must be approved by the City Council. The program is set to terminate in 2006. The most <br />recent legislative session extended the program to 2012. Extension of the program was a priority in the <br />City’s legislative policies and the IGR committee supported a six year extension. <br /> <br />This action is a “housekeeping item” that brings the City’s ordinance into compliance with the state <br />statutes. <br /> <br />The City and other local taxing districts may forgo revenue when property is exempted from taxes. In <br />the MUPTE program the land continues to be taxed. If a taxed improvement is removed from the <br />property, there is a tax loss during the exemption period. In past cases this revenue is recovered and <br />substantially increased once the exemption period is over, because the value of the added improvement <br />is much greater than what was removed. This ordinance only enables the program. Each tax exemption <br />application is approved by the council on a case-by-case basis. <br /> <br />COUNCIL OPTIONS <br /> <br />The City Council may approve or deny the ordinance after conducting a public hearing. <br /> <br /> <br />CITY MANAGER’S RECOMMENDATION <br /> <br /> <br />The City Manager recommends the adoption of the proposed ordinance. <br /> <br /> <br /> L:\CMO\2005 Council Agendas\M051024\S0510245.doc <br /> <br />