Item C: MUPTE - Envision Eugene Implementation (2)

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Attachment B for a map of the projects showing the current boundary, and Attachment C for a summary of changes over the last 15 years.) Envision Eugene The Envision Eugene Draft Proposal identifies several strategies calling for more compact urban development and multi-family housing. The proposal specifically calls for meeting the 20-year multi- family housing and commercial lands needs within the existing Urban Growth Boundary through development of vacant lands and focusing new development and redevelopment on key transit corridors and core commercial areas (including downtown). While past growth management strategies have mostly relied on regulation to achieve compact development, recent community discussions have recognized the need for incentives to help attract development to the targeted areas, overcome market challenges, and provide for adaptable, flexible, and collaborative implementation. A strategy under the Compact Urban Development pillar calls for making compact urban development within key transit corridors and core commercial areas easier through incentives such as infrastructure improvements, tax incentives, loan programs, and public/private lending partnerships. In the context of implementing Envision Eugene, MUPTE is one of very few incentives that have measurable market impact. This program has been discussed as a potentially effective and flexible incentive for both housing and mixed-use development. The success of a mixed-use redevelopment strategy, especially along transit corridors, relies in part on creating more multi-family housing. Increasing multi-family housing also enables the community to take a meaningful step towards local and statewide goals for a denser, more sustainable form of residential development while maintaining community livability, compatibility and prosperity. Impact of State Legislation The State Legislature recently extended the program sunset date from January 1, 2012, to January 1, 2022. The new legislation also allows the exemption to include the commercial portion of a multi-unit housing project to the extent that the commercial portion of the project is required in the design or is considered by the authorizing city to be a public benefit. In the downtown core, for example, ground floor retail or commercial services that support residents or pedestrian activity may be determined to create public benefit, and therefore included as tax-exempt improvements. This new commercial property provision would only be available in cases where public benefit is identified, and the council approves on a case-by-case basis the extension of the tax exemption to include the commercial component. The ability to include commercial uses has the potential to be a valuable tool, particularly in the downtown core where mixed-use housing projects have been difficult to realize. For the Eugene MUPTE program to continue beyond January 1, 2012, the council would need to hold a public hearing and adopt a new authorizing ordinance, and the City Manager would then update existing Administrative Order 53-09-01-F. In addition to the extension of the sunset date, the ordinance could address boundary changes and public benefit criteria. Boundary Considerations Currently, the MUPTE boundaries include nearly all of the property within the Downtown Plan area (see Attachment D). The boundaries also include the majority of the West University area, the Trainsong \\Cesrv500\cc support\CMO\2011 Council Agendas\M110720\S110720C.doc