CC Minutes - 05/09/11 Meeting - Laserfiche WebLink

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Mr. Zelenka said his concern was about the loss of property tax revenues that would otherwise go to the General Fund. He said the initial reason for the MUPTE was to stimulate development that had not been happening in the West University area. He pointed out over the last two to three years, multiple developments had occurred in the area. Many were located outside the MUPTE boundaries and received no property tax exemption. He suggested the City was granting tax exemptions that were not needed. He agreed with Ms. Ortiz that other areas of the community needed the MUPTE, such as downtown and the Trainsong area. Mayor Piercy said that development would occur with or without the MUPTE, but the question was what would be built and its quality. She looked forward to a discussion of how to incentivize the type of construction the City wanted to see built. Mr. Poling found the application unlike any other MUPTE application he had seen because of the inclusion of underground parking and the first -floor commercial retail space. In addition, the development would generate more tax revenue at the beginning on the land and commercial value than it pays now, and in the I I t " year it would pay all taxes levied against the property. He said the project would enhance the neighborhood. He pointed out that development could also be converted to condominiums in the future. He said the council needed to work with the rules and boundary in place, or change them. The council should not punish people for following the rules. Ms. Taylor pointed out the council did not have to approve the application. She suggested the City should incentivize better construction everywhere, not just in the area in question. People were struggling to pay their taxes in other parts of the community and questioned such breaks when they heard of them. She said the next -door neighbors were upset about the loss of solar access and the balconies that would be provide views over backyards. She thought the City should receive an advantage when it gave a tax exemption. She did not think the MUPTE was needed in the neighborhood. She hoped that the developer was building a good building because they want to attract renters and build a nice building for the community. Ms. Ortiz determined from Ms. Nobel Flannery there were no other MUPTE applications pending. Mr. Pryor was also interested in a council work session on the MUPTE program. He was willing to support the application but that did not guarantee his future support for future applications. He said the discussion pointed to one of the council's challenges, in that each councilor believed each dollar in the budget needed to be spent in a slightly different way. Mr. Farr agreed with the remarks of Mayor Piercy and Mr. Poling regarding the quality of construction and its relationship to City goals. He suggested the development fit Mr. Matthews' goals for quality dense infill. He looked forward to the work session and to discussing how the MUPTE program could be applied in the Trainsong area. Mr. Zelenka agreed the quality of multi - family housing was important. He pointed out that a development outside the MUPTE zone built without subsidies was seeking LEED certification, and suggested the City look into how that was accomplished. He suggested the City might more appropriately have a LEED certified incentive program. He pointed out that the code allowed such exemptions to be granted if the council found it to be in the public interest to do so. He did not think the MUPTE was needed for this project and hence was not in the public interest. He opposed the motion. Roll call vote: The motion passed, 5:3; Ms. Taylor, Mr. Zelenka, Mr. Brown voting no. MINUTES — Eugene City Council May 9, 2011 Page 6 Regular Meeting