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<br /> <br />ECC <br />UGENE ITY OUNCIL <br />AIS <br />GENDA TEM UMMARY <br /> <br /> <br /> <br /> <br />Adoption of Resolution 4859 Extending the Completion Date for Construction <br />of Residential Units Granted a Multiple-Unit Property Tax Exemption <br />Under Resolution No. 4816, as Amended Under Resolution No. 4824 <br />(Arthur C. Carmichael, Jr. and Larry Von Klein) <br /> <br /> <br />Meeting Date: February 27, 2006 Agenda Item Number: 2D <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 approve a resolution granting a one-year extension for the Multi-Unit <br />Property Tax Exemption (MUPTE) for “The Patterson House” at 979 Patterson. <br /> <br /> <br />BACKGROUND <br /> <br />On December 6, 2004, the council approved a MUPTE for The Patterson House. The adopted <br />resolution reflected a provision in the state statutes that required the project to be completed for <br />occupancy by January 1, 2006. Two months later, in a procedural action on February 14, 2005, the <br />council approved a one-year extension that was allowed under the statutes. The extension <br />acknowledged the time it takes to design and construct such a project. <br /> <br />The state legislature has since adopted a statute that extends the sunset date by six years. On October <br />24, 2005, the City adopted the necessary provisions to match the state statutes. The Patterson House <br />project is now requesting an additional one-year extension of its MUPTE . <br /> <br />Reason for the Request <br />This project is proceeding toward construction but has experienced delays for two reasons. First, the <br />developers spent time negotiating and acquiring a small piece of adjacent property from Sacred Heart <br />Hospital. This acquisition will enable improved alley access to the apartments. <br /> <br />Second, as a result of Hurricane Katrina, construction costs significantly increased as building materials <br />have been in short supply. The builders waited for these costs to stabilize and come down. This will, in <br />the end, prevent the rents from rising to meet the increased financing costs. The builders expect to <br />begin construction this summer and may come close to completion in January 2007, but it is not <br />guaranteed. Therefore, they have requested an extension to January 2008. <br /> <br />This action is being placed on the Consent Calendar because it is a minor change from what the council <br />approved. The end result will be the construction of the same housing project that was previously <br />approved. <br /> L:\CMO\2006 Council Agendas\M060227\S0602272D.doc <br /> <br />