Item A: Multi-Unit Property Tax Exemption Program

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 2011 – The council adopted an ordinance extending the MUPTE program for 10 additional years and amending the boundary to include only the Downtown Plan area (Trainsong and West University areas were removed). The council also expressed an interest in staff coming back to discuss other MUPTE areas such as Trainsong.  2011 – Initial council work session related to MUPTE and Envision Eugene. The council passed a motion to direct staff to not spend any more time on the MUPTE in the West University Neighborhood.  2012 – The council approved three MUPTE projects: Park Place (Master Development) Broadway Lofts (Master Development), and 13 and Olive (Capstone). th  February 25, 2013 – Public Hearing on suspension of the MUPTE program.  February 27, 2013 – The council approved ordinance suspending the MUPTE program. The ordinance suspending the MUPTE program expires on June 30, 2013. The council has expressed a desire to finalize potential modifications to the program prior to the June 30 expiration date. The modifications could include boundary considerations, program criteria, and project reporting. Such modifications would require a public hearing and approval of an updated ordinance. If no action is taken before June 30, the suspension will terminate. Through the comprehensive Envision Eugene analysis, it was determined that meeting the community’s housing needs within the existing Urban Growth Boundary will not likely occur in the absence of community investment tools needed to stimulate more dense housing. Additionally, the community has favored a more urban form of transit-oriented development focused along corridors, recognizing that more dense mixed-use, walkable neighborhoods provided numerous community, economic, and environmental benefits. MUPTE is considered to be one of the primary, cost-effective tools that can be used to impact the location, form, quality, and density of multi-unit housing development, particularly in areas where significant transportation infrastructure investments have been made or are planned to be made. Therefore, it is anticipated that MUPTE will remain a valuable tool for downtown redevelopment and will be considered for implementation of Envision Eugene in locations outside of the Downtown Plan Area. In previous council discussions, it has been suggested that Portland’s Multi-Unit Limited Tax Exemption (MULTE) be used as a model for potential changes to the MUPTE program. For discussion purposes, a comparative summary of the MUPTE and MULTE programs is included in Attachment C. A map of eligible areas in Portland’s MULTE program, and the Portland MULTE Administrative Rules are included in Attachments D and E. Eugene’s MUPTE program ordinance and Administrative Order are included in Attachments F and G. RELATED CITY POLICIES Utilization of the MUPTE program to stimulate new multi-unit housing development addresses many goals for Eugene and downtown, including: S:\CMO\2013 Council Agendas\M130422\S130422A.doc