Item 3A: Approval of City Council Minutes

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An Ordinance Concerning Multiple-Unit Housing Property Tax Exemption (MUPTE) and Amending Sections 2.945 of the Eugene Code, 1971 Urban Services Manager Richie Weinman presented an overview of the central tenets and history of the MUPTE program for the benefit of the council as well as an overview of the proposed amendments. A copy of Mr. Weinman’s presentation was submitted to the council with their agenda materials. Ms. Taylor was opposed to expanding the boundaries of the MUPTE program as indicated in Mr. Weinman’s presentation and believed the boundaries should be back to their original designations. She indicated that the most favorable option being presented was the proposed amendment to reduce the MUPTE boundary to the Downtown Plan Area, further stating her position that the Riverfront area should not be included in the revised boundary. Ms. Taylor stated that while she approved of the points system proposed for evaluating the MUPTE criteria, she felt it was too easy for developers to meet certain portions of the proposed criteria. Mr. Clark indicated that the discussion surrounding the MUPTE program was very interesting to him in that it highlighted the taxpayers’ willingness to accept a short term tax exemption versus the long term tax assessment viability of the properties in question. He reminded the council that while buildings under the MUPTE were tax exempt under the program for the short-term, the land on which the property existed was still taxable. Mr. Clark thanked staff for their work on determining the MUPTE evaluation criteria, and further noted that he was in favor of the proposed boundary options C and F as presented by Mr. Weinman. Mr. Clark maintained that the thth inclusion of the 6 and 7 Avenue corridor and Trainsong Neighborhood into the MUPTE was essential to the well- being of the community. Mr. Clark opposed the elimination of the West University Neighborhood from the MUPTE area boundaries, particularly since his recent conversations with University representatives indicated that there would be an enormous increase in the number of students over the coming years. Ms. Solomon felt that the MUPTE boundary options presented to the council did not need to be an either/or proposition with respect to the inclusion or exclusion of the Trainsong and West University Neighborhoods. She added that she was concerned that removing the West University Neighborhood from the MUPTE boundaries would encourage competition for housing between the Trainsong and West University Neighborhoods. Mr. Weinman, responding to a question from Mr. Poling, clarified the nature of the MUPTE approval criteria points system, noting that the Council was legally obligated to retain the final decision regarding property tax exemptions and that the points system was designed to aid the council in that regard. thth Mr. Poling stated he was in favor of including the 6 and 7 Avenue corridor and the Trainsong Neighborhood within the MUPTE boundaries, stating that its inclusion was vital to the continued prosperity of the area. Mr. Pryor felt that the points system for the MUPTE approval criteria would best be used as a set of flexible guidelines for the council to follow in making their decisions regarding MUPTE approval. He maintained that MUPTE applications, regardless of their scores within the approval criteria points system, should not automatically be approved without being first thoroughly reviewed by the council. He summarized saying he supported options C and F as outlined in the agenda item summary. thth Ms. Ortiz commented that there had not been a huge rush to develop properties within the 6 and 7 Avenue Corridor and Trainsong Neighborhood areas. She further noted that her conversations with residents of those neighborhoods had indicated that MUPTE exemptions would be helpful incentive to encourage responsible development in those areas. Mr. Zelenka noted he was in favor of option D of the proposed MUPTE boundary revisions, and further stated that it MINUTES: Eugene City Council October 22, 2008 Page 7 Work Session