Item 4: MUPTE for Student Housing Project

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help create opportunities for financing and return-on-investment that are not otherwise achievable in core area multi-unit development. For each application, the developer provides financial information to demonstrate that the project as proposed could not be built but for the benefit of the tax exemption. Staff and the Loan Advisory Committee review the pro-forma and evaluate this conclusion. Specifically, we analyze assumptions regarding lease rates, operating expense, capitalization rate, lender underwriting criteria, interest rate assumption, market expected rate of return, and construction cost to assure that they are within the standards of this marketplace. The general issues for projects are being able to qualify for the needed debt and attract the needed equity. For debt, the issue is having sufficient loan-to-value and debt coverage ratio. For equity, the issue is having sufficient cash-on-cash return. Please see Attachment F of the April 23 public hearing AIS for information on the Capstone “but for.” 7.Will the parking structure floors be flat? No; the floors will be sloped or ramped. 8.Did previous capstone projects in other communities have a version of MUPTE? Yes; Capstone has used incentives that resemble the MUPTE program but vary by locality. For example, Capstone’s project in Tempe, Arizona received an eight year tax benefit. 9.Why are they adding a bus stop on Willamette? By adding the stop here, residents will have easy access to bus routes #28 and #76 that travel down Willamette and provide access from the project site directly to the U of O. In addition, residents will have access to the EMX line at the LTD station. 10.Will there be a police substation? What will be the coordination with EPD? The location of a substation is a decision to be made by the Eugene Police Department (EPD). Capstone has agreed to coordinate closely with EPD to promote pro-social, courteous, and safe behavior on the part of the residents. This coordination will include: Meeting with EPD Crime Prevention Unit regarding successful strategies utilized in o other parts of our community, including Crime Prevention Through Environmental Design and crime victim awareness strategies, and to discuss opportunities for support from Crime Prevention Unit and any enforcement actions taken. Working with EPD to align renter code of conduct with social host regulations. o Working with EPD to develop a protocol for responding to nearby residents and o surrounding property owner complaints on a timely basis. 11.If phase 2 is not built, how will that impact the MUPTE? The approval resolution is written to enable the project to be constructed in two phases. The resolution includes the specific number of units for each phase. If phase 2 is not built, then the MUPTE would be limited to Phase 1, and no MUPTE would be granted for Phase 2.