Item 6: Resolution Approving MUPTE for Park Place Apartments

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Public Benefits After reviewing the Park Place Apartments application against the public benefit scoring criteria in the Standards and Guidelines, staff determined that the proposed development earned 150 points. (A minimum of 100 points is required for the City Manager to recommend that the council approve an application.) Points were awarded for the project through the following benefits: Density: 50 points (10 points per unit in excess of the minimum code requirement; 50-point max) o Location: 100 points for being located within the Downtown Plan Area o Impact and Need for Tax Exemptions to Encourage Housing The City and other local taxing districts forgo revenue when property is exempted from taxes. Broadway Lofts will continue to generate property tax revenue on the land. The submitted application estimates the land property tax at $4,500. After 10 years, the entire development will be taxable, generating an estimated $37,500 in year 11. The MUPTE is vital to the development and, if it is denied, the property could not be converted to a housing use. Financial Analysis The applicant demonstrated that the project as proposed could not be built but for the benefit of the tax exemption. Staff and the Loan Advisory Committee reviewed the pro-forma and confirmed this conclusion. (See Attachment E for more information.) Timing This application was submitted on November 30, 2011. The City Manager has 90 days (until February 28) to make a recommendation to the council. If the council has not acted in 180 days, the application is deemed approved. 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: Growth Management Policies Policy 1 Support the existing Eugene Urban Growth Boundary by taking actions to increase density and use on existing vacant land and under-used land within the boundary more efficiently. Policy 2 Encourage in-fill, mixed-use, redevelopment, and higher density development. Policy 3 Encourage a mix of business and residential uses downtown using incentives and zoning. West University Refinement Plan V.9 The City will encourage residential uses in all parts of the plan area. V.11 The City and the neighborhood shall study ways to encourage a variety or mix of structure types providing both owner and rental opportunities and appealing to a diverse population. S:\CMO\2012 Council Agendas\M120123\S1201236.doc