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City Manager Ruiz reported that Peggy Keppler of Public Works one of ten public works professionals <br />from across North America selected as an American Public Works Association Top 10 Leader for <br />2012. Public works professionals from throughout North America were recognized each year by their <br />peers for their outstanding contribution and leadership and it was an achievement to be selected. City <br />Manager Ruiz reported that Eugene Police Chief Pete Kerns was selected by the Oregon Association of <br />Chiefs of Police to receive its top award for his efforts last year in response to the shooting of Officer <br />Kilcullen, Occupy Eugene, and downtown public safety. <br />C. WORK SESSION: <br />Capstone Collegiate Communities Student Housing Development Proposal <br />The council was joined by Assistant City Manager Sarah Medary and Senior Planner Nan Laurence. Ms. <br />Laurence provided an update on the public outreach done by Capstone Development in regard to its <br />proposed development in downtown Eugene at the site of the former Eugene Clinic. She noted the major <br />areas of concern expressed by residents and the responses offered by Capstone, which were summarized <br />in Attachment B of the meeting packet, Capstone Student Housing Proposal Questions and Answers. <br />Mr. Brown asked questions for follow -up clarifying the amount of private equity in the project, projected <br />enrollment levels at the University of Oregon, the current rental housing vacancy rate, the student housing <br />vacancy rate, projected student enrollment for fall 2012, the University's housing construction plans, and <br />the property's purchase price and sale price. <br />Responding to a question from Mr. Brown regarding Eugene Code Section 2.597, which stated the <br />council would specific the percentage and duration of the Multi -Unit Property Tax Exemption ( MUPTE), <br />City Attorney Glenn Klein said nothing in State statute spoke to a percentage of the exemption and the <br />City could not grant an exemption not authorized by State law. State law allowed the City to grant the <br />exemption for less than a ten -year period. He believed that the reference to percentages was intended to <br />refer to the portion of the property that was residential. Mr. Brown disagreed with City Attorney Klein's <br />conclusions. <br />Mr. Zelenka requested information about the cost of both project phases. He anticipated that the project <br />would be funded by institutional investors who would be unlikely to retain the project past the expiration <br />of the MUPTE, and advocated for mandating onsite management for apartment developments of a certain <br />size through the Eugene Code. He believed that such a regulation needed to be citywide rather than <br />confined to a specific project, and should be based on beds. He was unsure the requirement should be <br />retroactive and suggested that a definition of onsite management was needed. He asked for information <br />about other jurisdictions that required onsite management for large apartment complexes. <br />Mr. Brown expressed skepticism that, given its past histoty, Capstone Collegiate Communities would <br />continue to manage the development much past its construction and it would be sold by its investors. His <br />research indicated that management ratings for former Capstone projects were dismal. He questioned <br />whether Phase 2 of the project would be built and asked how that affected the MUPTE. Ms. Laurence <br />said staff would address that question when the council considered the MUPTE application. <br />Mayor Piercy hoped staff's consideration of the project included consideration of capital improvements <br />that facilitated bicycle mobility between the development and university. <br />MINUTES— Eugene City Council April 9, 2012 Page 3 <br />Work Session <br />