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<br /> <br /> <br />ECC <br />UGENE ITY OUNCIL <br />AIS <br />GENDA TEM UMMARY <br /> <br /> <br /> <br />Action: Adoption of Resolution 5045 Extending the Completion Date for <br />Construction of Residential Units Granted a Multiple-Unit Property Tax Exemption <br />under Resolution No. 5032 (The Paradigm on Pearl) <br /> <br /> <br />Meeting Date: October 24, 2011 Agenda Item Number: 4 <br />Department: Planning and Development Staff Contact: Nan Laurence <br />www.eugene-or.gov Contact Telephone Number: 541-682-5340 <br /> <br /> <br /> <br /> <br />ISSUE STATEMENT <br /> <br />The City Council is asked to approve a resolution granting a four-month extension for the previously <br />th <br />approved Multiple-Unit Property Tax Exemption (MUPTE) for “The Paradigm on Pearl” at 17 and <br />Pearl. <br /> <br /> <br />BACKGROUND <br /> <br />On May 9, 2011, the council approved a MUPTE for The Paradigm on Pearl. The adopted resolution <br />reflected a provision in the state statutes that required the project to be completed for occupancy by <br />January 1, 2012, the scheduled sunset date for the MUPTE statute. <br /> <br />The 2011 state legislature has since adopted a statute that extends the sunset date by ten years. The <br />developer of The Paradigm on Pearl project is now requesting a four-month extension of the required <br />completion date. The City’s ordinance provides for the possibility of project extensions in the event of <br />intervening circumstances beyond the control of the developer. <br /> <br />Request for Extension <br />This project has made good progress under construction, but has experienced delays for three reasons. <br /> <br /> <br />First, the excavators encountered unexpected occurrences of solid rock in several locations, <br />including the elevator shaft, which were not indicated in the comprehensive soil study performed <br />before excavation. This required contracting with a Seattle firm to supply a highly specialized <br />drill rig to complete excavation. <br /> <br /> <br /> <br />Second, unseasonably heavy rainfall from May to July resulted in rainwater pooling in the <br />excavated pit on the building site, which required a time-consuming water removal process on <br />several occasions. <br /> <br /> <br /> <br />Third, the closing of the construction loan was delayed for several months. This delay prevented <br />the builders from ordering certain components and concluding other time-sensitive contracts <br />until the construction loan was closed. <br /> <br /> S:\CMO\2011 Council Agendas\M111024\S1110244 -and att A.doc <br /> <br />