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<br />six percent by year 10. Third, the project valuation is well below the amount needed to qualify for <br />conventional financing. At project stabilization, the projected value of the property is $32 million. The <br />total cost of the project is $35.5 million and requires $25.9 million in bank debt. At 70% loan to value, <br />the project needs to be valued at $37 million to qualify, a valuation gap of $5 million. <br /> <br />Timing <br />This application was submitted on December 18, 2008. If the council does not act within 180 days the <br />application is considered approved. <br /> <br /> <br />RELATED CITY POLICIES <br />MUPTE is enabled by state statute. The City of Eugene has participated in the MUPTE program since <br />1978. Encouraging housing in the core area is consistent with numerous adopted planning and policy <br />documents. Examples include: <br /> <br />Growth Management Policies <br />Policy 1 Support the existing Eugene Urban Growth Boundary by taking actions to increase <br />density and use on existing vacant land and under-used land within the boundary more <br />efficiently. <br />Policy 2 Encourage in-fill, mixed-use, redevelopment, and higher density development. <br />Policy 3 Encourage a mix of business and residential uses downtown using incentives and zoning. <br /> <br />Downtown Plan <br />Living Downtown Policy 1: Stimulate multi-unit housing in the downtown core and on the edges of <br />downtown for a variety of income levels and ownership opportunities. <br /> <br /> <br />COUNCIL OPTIONS <br /> <br />The council may approve the exemption, deny the exemption, or may delay approval in order to request <br />additional information from the developer to determine that a satisfactory public benefit has been met. <br /> <br /> <br />CITY MANAGER’S RECOMMENDATION <br />The City Manager recommends approving the resolution to grant the exemption. <br /> <br /> <br />SUGGESTED MOTION <br /> <br />Move to adopt Resolution 4966 approving a Multiple-Unit Property Tax Exemption for residential property <br />th <br />located at 10 Avenue and Charnelton Street, Eugene, Oregon (WG Development Co. /Applicant) <br /> <br /> <br />ATTACHMENTS <br />A. Resolution approving a property tax exemption <br />B. Resolution denying approval <br />C. Pro Forma staff analysis <br /> <br /> <br /> Z:\CMO\2009 Council Agendas\M090223\S0902237.doc <br /> <br />