Item B: Multi-Unit Property Tax Exemption Program

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ECC UGENE ITY OUNCIL AIS GENDA TEM UMMARY Work Session: Multi-Unit Property Tax Exemption (MUPTE) Program Meeting Date: January 30, 2013 Agenda Item Number: B Department: Planning & Development Staff Contacts: Denny Braud 541-682-5536 www.eugene-or.gov Robin Hostick 541-682-5507 ISSUE STATEMENT In September 2011, the council approved the continuation of the Multi-Unit Property Tax Exemption (MUPTE) program within the Downtown Plan Area (see Attachment A map). This work session is an opportunity for the council to provide direction regarding future strategies for using MUPTE to achieve Envision Eugene goals. BACKGROUND The MUPTE program is enabled by state legislation and designed to encourage higher density housing and redevelopment in the core area and along transit corridors. The program provides a 10-year property tax exemption on qualified new multi-unit housing investments that occur within a specific, targeted area, meet program requirements, and are reviewed and approved by the City Council. During the exemption period, property owners still pay taxes on the assessed value of the land and any commercial portions of the project, except those commercial improvements deemed a public benefit and included in the exemption. On July 20, 2011, the council considered MUPTE in the context of Envision Eugene and directed staff to proceed in two phases: 1) prepare an ordinance and hold a public hearing to extend the sunset date for MUPTE within the Downtown Plan Area, and 2) conduct additional work sessions to discuss other priority areas for council consideration and future action. On September 26, 2011, the council approved an ordinance that extended the sunset date for MUPTE to January 1, 2022, and limited the boundary to only include the Downtown Plan Area. (The MUPTE ordinance and administrative order used to review MUPTE applications are included in Attachments B and C). On October 12, 2011, the council had an initial discussion regarding strategies for determining priority areas for MUPTE in the context of Envision Eugene. The outcome of that discussion included a single action that directed staff to not consider MUPTE in the West University Neighborhood. There are two potential considerations for utilization of MUPTE as an Envision Eugene implementation tool. First, the council has expressed interest in looking at the existing MUPTE S:\CMO\2013 Council Agendas\M130130\S130130B.doc