Item C: Capstone Student Housing Development Proposal

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20.When does Council read the MUPTE written comments? Comments submitted by March 30 are included in the council packet for the April 9 work session. Staff will continue to forward comments received until council takes action. 21.Can Council grant a MUPTE for fewer than 10 years? Yes, the council can grant an exemption for less than 10 years. State law and city code establish 10 years as the maximum term of a MUPTE, but neither requires that the exemption be 10 years. For example, ORS 307.612(1) specifically mentions duration, stating in part that multiple-unit housing "may be exempt from ad valorem taxation for no more than 10 successive years." City code contains a similar provision. The standards and guidelines do require that the city manager recommend an exemption that is 10 years, but nothing requires the council to approve a term of 10 years. 22.Can council approve only a percentage of the MUPTE? No, the percentage is 100% for each exempted year. Unlike the information stated in the previous answer, State law does not contain anything comparable with respect to percentage. State law, like city code, does provide that a MUPTE cannot include the value of the land, or improvements not part of the multiple-unit housing. The city code provision that mentions percentage is addressing the contingency that part of the property and structure may not be exempt from taxation. So, for example, the City could determine that the value of the land and the portion of the structure that is not multiple-unit housing comprise 15% of the total value, and therefore grant an exemption that is equal to 85%. Similarly, nothing in the Standards and Guidelines contemplates an exemption that is less than 100% of the covered structure (i.e., the part that is multiple-unit housing). rd 23.Why are there two hearings on April 23? One hearing is for the MUPTE application and the other hearing is on the proposal to transfer ownership (vacate) the east/west alley and a portion of the north/south alley from the City to the developer so that it can be realigned with the bike path. 24.Can conditions be placed on the MUPTE approval? Council has the ability to impose conditions that are directly related to the MUPTE criteria adopted by the MUPTE ordinance. The eight public benefit criteria relate to: density; green building features; mixed income; homeownership; accessibility; historic sensitivity; location; and parking. More information about MUPTE is available on the city’s website at: http://www.eugene- or.gov/portal/server.pt?open=512&objID=807&PageID=4390&cached=true&mode=2&userID=2. 25.Did this property pay any property taxes? All but one tax lot was tax exempt last year. The taxable property owed just under $5,000. 26.Does the project need a MUPTE to move forward? Staff is in the process of reviewing the financial information provided by Capstone. MUPTE was established to stimulate the construction of multi-unit housing in targeted areas where it would otherwise not occur “but for” the granting of a tax exemption. The tax exemption can help off-set