Item 2C: Resolution Approving Low-Income Rental Housing Property Tax Exemption for Willakenzie Crossing - and attsA-D

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The council reviews each tax exemption request on a case by case basis. Most recently, the council approved a low-income rental housing tax exemption for St. Vincent de Paul Society of Lane County’s Lamb Building in October 2010. If an application meets the substantive criteria [EC 9.239(2)(a)-(i)] as referenced in the Report and Recommendation (Attachment A), the City must grant the exemption by resolution (Attachment B). A decision to deny the exemption cannot be made by simple motion or inaction; it would need to be made by a resolution (Attachment C) that explains how the applicant has failed to demonstrate that the tax exemption is in the public interest. Summary of requested tax exemption for Willakenzie Crossing - The requested tax exemption is for Willakenzie Crossing, a 56-unit affordable housing development that includes 16 units for developmentally disabled adults. The units are targeted to individuals and families at or below 60 percent of the area median income level. The development is located at 3057 Willakenzie Road, next to the Willakenzie Grange. The development site is close to shopping, jobs, public transit, schools, city parks and other services. Willakenzie Crossing includes a large community center and garden, children’s play area, ample bike parking and a pedestrian connection to Willakenzie Park from Willakenzie Road In addition, the proposed ordinance would enable recipients to reapply for the 20-year low-income rental housing property tax exemption after the initial 20-year period has expired. Metro proposed the Willakenzie Crossing project through the 2009 Annual Housing Request for Proposals. Metro requested federal HOME funds provided by the City ($680,000) and System Development Charge waivers ($185,000) to subsidize the development of the project. Metro was also awarded the Willakenzie Landbank site through the process. In September, 2009, the council unanimously approved the requested allocation of federal HOME funds, System Development Charge waivers and awarded the land to Metro. At that time, Metro notified the City that it would seek a property tax exemption in order to achieve rents affordable to low-income persons. Construction of Willakenzie Crossing will be completed by July 31, 2012, and tenants will move in shortly thereafter. A grand opening event will be held summer 2012. The requested exemption meets the substantive criteria [EC 9.239(2)(a)-(i)] as shown in the Report and Recommendation (Attachment A). RELATED CITY POLICIES The proposed tax exemption supports multiple City priorities and policies including the Eugene- Springfield 2010 Consolidated Plan, Growth Management Policies, and the Housing Dispersal Policy. Eugene-Springfield 2010 Consolidated Plan -This plan identifies a need for affordable housing for low-income persons and sets a five-year goal of developing 500 new units of affordable housing. The proposed project directly supports the objective by creating 56 units for low-income families and individuals. Eugene Adopted Growth Management Policies - The City of Eugene affordable housing development programs and Willakenzie Crossing support multiple Growth Management Policies including:  Promote construction of affordable housing.  Encourage in-fill, mixed-use, redevelopment, and higher density development.  Improve the appearance of buildings and landscapes. \\Cesrv500\cc support\CMO\2011 Council Agendas\M110627\S1106272C and attsA-D.doc