Item 3: MUPTE for The Sequoia - Laserfiche WebLink

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and Guidelines, staff determined that the proposed development earned only 65 points. Points were awarded through the following benefits: Density – Exceeding the minimum (40 points earned for four units over the minimum density - ten points for each unit in excess of minimum, with 50 maximum points) Green Building- “Earth Advantage” construction (25 points earned for “Earth Advantage Silver”) The proposed development also would provide six parking spaces in excess of what is currently required. If the property were part of the Residential Parking Program, the application would have earned an additional 60 points. However, the property is not part of that program and the applicant failed in his attempt to join the program by obtaining the necessary signatures of support from adjacent property owners and tenants. An attached letter from the West University Neighborhood Association (Attachment D) addresses their support for consideration of this issue. Impact and Need for Tax Exemptions to Encourage Housing: The City and other local taxing districts forgo revenue when property is exempted from taxes. This project proposes new construction on a property that is underdeveloped based on the zoning. The three-bedroom single-family home currently on the site will be replaced by eight apartments with 24 total bedrooms. In December, the house on the site will be moved to the Whiteaker neighborhood where it will continue to be a taxable asset. After ten years, The Sequoia will generate new tax revenue, starting at approximately $25,000. The annual total property taxes on the property are currently $2,602. The portion of the tax attributed to the land is estimated at $989. The land will continue to be taxed during the exemption period. Therefore, $1,613 that is currently being paid in taxes on the existing improvement will come off the tax rolls (at that site) for ten years. This is a total cumulative value of $19,625, assuming a 2% annual increase in taxes. After the ten year exemption ends, over $25,000 will then be paid annually in property taxes. Therefore, all exempted revenue will be recovered in the first year after the exemption ends. This is illustrated in Attachment G. Timing This application was originally submitted on August 11, 2009, and amended on August 25, 2009. The City Manager has 90 days to make a recommendation on the application to the council. If the council hasn’t acted in 180 days, the application is deemed approved. The 90-day recommendation period expires on November 9, 2009. RELATED CITY POLICIES MUPTE is enabled by state statute. The City of Eugene has participated in the MUPTE program since 1978. Encouraging housing in the core area is consistent with numerous adopted planning and policy documents. Examples include: Z:\CMO\2009 Council Agendas\M091109\S0911093-and att'sABCFG.doc