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HomeMy WebLinkAboutItem 2D - Appl.for MUPTE (Tate)EUGENE CITY COUNCIL AGENDA ITEM SUMMARY Adoption of Resolution 4815 Approving a Multiple-Unit Property Tax Exemption for Residential Property Located at 1375 Olive Street, Eugene, Oregon (1375 Olive, LLC) Meeting Date: November 22, 2004 Agenda Item Number: 2D Department: Planning and Development Staff Contact: Richie Weinman www. cl. eugene, or. us Contact Telephone Number: 682-5533 ISSUE STATEMENT City Council is asked to approve a resolution granting a Multi-Unit Property Tax Exemption (MUPTE) for "The Tate" at 1375 Olive Street. BACKGROUND The council has a 26-year history of supporting tax exemptions to encourage new housing in the core area. This project is proposed for a site that was a City of Eugene parking lot serving the former library and permit parkers. When the site was purchased last year, the applicant stated that this tax exemption was critical to its project. Subsequently, City Council expanded the MUPTE boundary to specifically include this site. In April 2004, the MUPTE program regulations and boundary were further amended. The City and other local taxing districts forgo revenue when property is exempted from taxes. This project proposes new construction on a property that has been vacant for many years and in public ownership. During that time it was not on the tax rolls; therefore, there is no loss of revenue. New revenue will immediately occur because the land will be taxed during the exemption period. The improvements will bring substantial revenue after ten years. The following is project summary: The Tate 47 units of ownership housing (condominiums) 1375 Olive Applicants and representatives: 1375 Olive LLC, Jean Tate and Joyce Owens Zoning: A combination of C2 and R4 Public Comments The MUPTE Standards and Guidelines require both an opportunity for the Planning Commission to comment and publishing a display advertisement in the Register-Guard, followed by a thirty-day comment period. The Planning Commission discussed this application on October 11 and declined to make any comment. The Jefferson Westside Neighbors received a presentation on the project and, while taking no formal action, indicated its support. The advertised comment period for The Tate ends on November 19. There was also a news article in the Register-Guard. To date, one comment has been submitted: L:\CMO\2004 Council Agendas\M041122\S0411222D.doc Mr. Bruce Cooley e-mailed the following comment: I wonder why the city even has a MUPTEprogram when we are so overrun with apartment; already. Why do we need to offer potent incentives? Rent is enough incentive to build any housing in Eugene, especially in the near-University area. 1375 Olive is close enough to UO to command pretty high rent, so what more incentive do these developers need to build? Does anybody really think they will not build these apartment; if you don't offer them a huge long-term tax break? A few years ago I completely rebuilt a multi-unitproperty in the University area that has 9 bedrooms and 5 bathrooms on a 30' x 150' lot, andI sure wish someone would offer me a lO- year break from the $4,500 or so I pay every year now. That would be almost $50,000. Wow. Please let me know how I can sign up for this tax break. Staff response to Mr. Cooley's comment: Adopted City policies encourage compact urban growth and downtown area housing. Because it is significantly more expensive to build multi-family housing in the core area, incentives are needed to help level the playingfield The tax exemption is only granted if there is evidence that the project would not otherwise be built. Furthermore, it is only available to the new construction of housing development; of at least five unit,'. The rehabilitation project that Mr. Cooley refers to is not new construction and would not qualify. The project proposed for 1375 Olive is not a rental project but a condominium development which will add owner occupant; to the neighborhood. The tax exemption, if granted, will begin following completion of the project. The applicants have stated that if the exemption is granted, groundbreaking will take place almost immediately. RELATED CITY POLICIES MUPTE is enabled by state statute. The City of Eugene has participated in the MUPTE program since 1978. Since that time, eleven requests have been approved (Attachment D). Encouraging housing in the core area is consistent with numerous adopted planning documents. Examples include: The Downtown Plan Policy V. 1 Stimulate multi-unit housing in the downtown core and on the edges of downtown for a variety of income levels and ownership housing. (The Tate is not inside the Downtown Plan boundary but is on the edge, five blocks from the intersection of Broadway and Willamette.) Growth Management Policies Policy 1 Support the existing Eugene Urban Growth Boundary by taking actions to increase density and use on existing vacant land and under-used land within the boundary more efficiently. Policy 2 Encourage in-fill, mixed-use, redevelopment, and higher density development. Policy 3 Encourage a mix of business and residential uses downtown using incentives and zoning. L:\CMO\2004 Council Agendas\M041122\S0411222D.doc Jefferson/Far West Refinement Plan (The Tate is in this area) Residential 2.0 Increase the opportunity for home ownership within the area Residential 3.0 Encourage a mixture of housing densities and types to allow a diverse population group to live within the area. OPTIONS The council may approve or deny the exemption. CITY MANAGER'S RECOMMENDATION Staff recommends approving the resolution to grant the exemption. SUGGESTED MOTION Move to adopt Resolution 4815 approving a multiple-unit property tax exemption for residential property located at 1375 Olive Street, Eugene, Oregon (1375 Olive, LLC). ATTACHMENTS A. Resolution approving a property tax exemption for The Tate B. Report from Planning and Development Director C. MUPTE Application D. History of granted multi-unit tax exemptions in Eugene E. Photograph of the site F. Public Comments FOR MORE INFORMATION Staff Contact: Richie Weinman Telephone: 682-5533 Staff E-Mail: richie.d.weinman~ci.eugene.or.us L:\CMO\2004 Council Agendas\M041122\S0411222D.doc ATTACHMENT A RESOLUTION NO. A RESOLUTION APPROVING A MULTIPLE-UNIT PROPERTY TAX EXEMPTION FOR RESIDENTIAL PROPERTY LOCATED AT 1375 OLIVE STREET, EUGENE, OREGON (1375 OLIVE, LLC). The City Council of the City of Eugene finds that: A. 1375 Olive, LLC, is the owner of real property located at 1375 Olive Street, Eugene, Oregon, and more particularly described on Exhibit A attached hereto, and has submitted an application pursuant to the City's Multiple-Unit Property Tax Exemption Program (Sections 2.945 and 2.947 of the Eugene Code, 1971) with respect to the residential units to be constructed thereon. B. A display ad soliciting recommendations or comments from the public was published in the Register-Guard on October 14, 2004, and advised that written comments would be accepted for a period of 30 days from the date of publication. Comments from the public, along with staff' s responses, are set forth in the Report and Recommendation, attached as Exhibit B, which was prepared by the Director of the Planning and Development Department ("Director") as designee of the City Manager. C. The Director's Report and Recommendation to the Council recommends that the application be approved and the exemption granted. In making the recommendation, the Director found that the applicant submitted all materials, documents and fees required by the application and the City, including, documentation that the construction will be completed on or before January 1, 2006; that as asserted in the application, the project would not be built without the benefit of the tax exemption; that one or more public benefits as described in the Report and Recommendation, as required by the Standards and Guidelines, will be included in the construction; and that the construction will be in conformance with all local plans and planning regulations, including special or district-wide plans developed and adopted pursuant to ORS Chapters 195, 196, 197, 215 and 227. D. The project consists of a mix of residential and commercial development of 47 residential units (14 one-bedroom, 27 two-bedroom, and 6 three-bedroom units), and three commercial units, which are not designed and will not be used as transient accommodations. Only the residential portion of the building qualifies for the tax exemption. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF EUGENE, a Municipal Corporation of the State of Oregon, as follows: Section 1. Based upon the above findings which are hereby adopted, and the City Council's review of the Report and Recommendation of the Director of the Planning and Resolution - Page 1 L:\CMO\2004 Council Agendas\M041122\S0411222D-attA.doc Development Department attached as Exhibit B, the City Council hereby approves the application of 1375 Olive, LLC for an ad valorem property tax exemption under the City's Multiple-Unit Property Tax Exemption Program for the residential portion of the improvements to be constructed at 1375 Olive Street, Eugene, Oregon, and more particularly described on Exhibit A attached hereto, subject to the following conditions: 1. The project shall consist of 47 residential units (14 one-bedroom, 27 two- bedroom, and 6 three-bedroom units), which are not designed and will not be used as transient accommodations. 2. The project shall be completed on or before January 1, 2006. 3. The project shall include one or more public benefits as required by the Standards and Guidelines, and described in the Director's Report and Recommendation attached as Exhibit B. 4. The project shall be in conformance with all local plans and planning regulations, including special or district-wide plans developed and adopted pursuant to ORS Chapters 195, 196, 197, 215 and 227. Section 2. The residential units to be constructed upon the property described in Section 1 above are declared exempt from local ad valorem property taxation beginning July 1 of the year following certification of completion and continuing for a continuous period often years unless earlier terminated in accordance with the provisions of Section 2.947 of the Eugene Code, 1971. The exemption provided for herein does not extend to the portion of improvements designed and utilized for retail/commercial uses. Section 3. The City Manager, or the Manager's designee, is requested to forward a copy of this Resolution to the applicant, and to the other affected taxing districts, within ten days, and to cause a copy of this Resolution to be filed with the Lane County Assessor on or before April 1, 2005. Section 4. This Resolution shall become effective immediately upon its adoption. The foregoing Resolution adopted and effective the __ day of ., 2004. City Recorder Resolution - Page 2 L:\CMO\2004 Council Agendas\M041122\S0411222D-attA.doc ATTACHMENT B REPORT AND RECOMMENDATION of the Director of the Planning & Development Department 1375 Olive, LLC Multiple-Unit Property Tax Exemption The Director of the Planning & Development Department of the City of Eugene finds that: 1. 1375 Olive, LLC is the owner of real property located at 1375 Olive Street, Eugene, Oregon, and more particularly described on Exhibit A attached to the Resolution approving this tax exemption, and has submitted an application pursuant to the City's Multiple- Unit Rental Housing Property Tax Exemption Program (Section 2.945 and 2.947 of the Eugene Code, 1971) with respect to the residential improvements to be constructed on the real property. 2. ! have reviewed the application and specifically find that the project is an eligible structure as defined in the Standards and Guidelines, is located within the downtown core area, and: 2.1 The applicant has submitted all materials, documents and fees required by the City; 2.2 Design elements that benefit the general public have been included in the project, which consist of: 2.2.1 Sustainability features. Sustainability features will be included in this project that will: encourage energy efficiency ("green" features); decrease dependency on automobiles; foster a sense of community among the residents; use energy efficient building envelope, light fixtures and appliances; reuse existing concrete paving as aggregate fill, require recycling of construction material, and dedicate an area of the building to recycling by residents; use construction materials with recycled content or those that can be recycled in the future; use materials such as paints and carpet glues with low levels of volatile organic compounds; use an underutilized site for the project; and incorporate landscaping and street trees that will require low water use and maintenance and will include many native species. 2.2.2 Responsiveness to adjacent historic structures. There are no adjacent historical structures. 2.2.3 Use of higher quality materials that contribute to longevity. Construction of the project will use concrete, steel, and brick on the outside, and concrete and steel on the inside. The windows will be clad with weather-resistant material. These features will contribute to dureability and enhanced building design. Exhibit B -- Report and Recommendation - Page 1 L:\CMO\2004 Council Agendas\M041122\S0411222D-attB.doc 2.2.4 Prominent entry facing the public street. The main entrance of the project will be on Olive Street, and will be dramatic and inviting, enhanced by attractive landscaping. The commercial spaces will have large windows and doorways facing Olive Street. All entrances will have attractive pedestrian- friendly canopies. 2.2.5 Number of units by which minimum density is exceeded. The project will consist of 47 residential units and, on the ground floor, three commercial spaces. This number exceeds the required minimum density. 2.2.6 Number of available ADA accessible units that exceed required standards. All units are ADA-adaptable, with bathrooms, kitchens, environmental controls and doorways and hardware meeting ADA standards. The building contains two elevators. All common areas are fully accessible, including an ADA-accessible bathroom on the ground floor. 2.2.7 Responsiveness to neighborhood character and safety in respect to height, mass. architectural detail, landscaping and open space. The project incorporates both residential units and commercial space, which provides a transition between the residential area and the commercial area of the neighborhood. Architectural detail will reflect elements of the Eugene Public Library, Eugene Station Bus Terminal and Fire Station Number 1. The building height will be approximately the same as the neighboring First Methodist Church and the Eugene Public Library. Features will be incorporated to reduce the apparent mass of the structure such as indented areas and landscaping. Public safety will be facilitated by the use of large window areas, canopies, and exterior lighting and landscaping which will provide a clear view of the surroundings. A secure entry and gated parking will help insure safety for residents. 2.2.8 Number of units designed for home ownership. All forty-seven residential units are designed for home ownership. Sixteen of the units have been sold, several with the contingency of MUPTE approval. 2.2.9 Solicitation of comments from relevant neighborhood associations. Jefferson Westside Neighbors held a meeting earlier in 2004 and discussed the project. The main concern of the neighbors was parking, but they were reassured when they learned that the parking would be on-site and not on the street. The neighbors appreciated the architectural features of the building and that the units have large balconies, creating an "outside space" for each owner. 2.3 The project was monitored through the City's regular processes with respect to planning, permit and building and safety requirements to insure compliance with all local regulations; 2.4 There are no structures located on the property. Currently, the site is paved and is being used as a parking lot; and Exhibit B -- Report and Recommendation - Page 2 L:\CMO\2004 Council Agendas\M041122\S0411222D-attB.doc 2.5 The owner has stated in the application and provided evidence that the project would not be feasible without the tax exemption. Several of the binding sales agreements are contingent on receiving the tax exemption. 3. A display ad soliciting recommendations or comments from the public regarding this project was published in the Register-Guard on October 14, 2004. The period for comment expired on November 13, 2004. The following written comment was received: Comment: An e-mail was received from Bruce Cooley who commented that incentives to build housing in Eugene, especially in the University area, are not necessary because developers can already command high rent in Eugene. He felt that the projects would be built even without the tax exemption. He also commented that he rebuilt a multi-unit property in the University area that had nine bedrooms and five bathrooms, and didn't get a tax exemption Finding: Adopted City policies encourage compact urban growth and downtown area housing. Because it is significantly more expensive to build multi-family housing in the core area, incentives are needed to help level the playing field. The tax exemption is only granted if there is evidence that the project would not otherwise be built. Furthermore, it is only available to the new construction of housing developments of at least five units. The rehabilitation project that Mr. Cooley refers to is not new construction and would not qualify. The project proposed for 1375 Olive is not a rental project but a condominium development which will add owner occupants to the neighborhood. Therefore, based upon the above findings, the project is in conformance with all applicable local plans, planning regulations, the Metropolitan Area General Plan, and the criteria set forth in the City's adopted Standards and Guidelines for Multiple-Unit Housing Property Tax Exemption, and ! recommend that the application be approved. Dated this __ day of ., 2004. Director, Planning & Development Department, City of Eugene Exhibit B -- Report and Recommendation - Page 3 L:\CMO\2004 Council Agendas\M041122\S0411222D-attB.doc ATTACHMENT C Multi-Unit Housing Property Tax Exemption Program Revised, June 2004 APPLICATION PACKET For more informatiOn, please contact Richie Weinman at 541.682.5533 City of Eugene Planning and Development Department 99 W. 10th Avenue, Eugene OR 97401 Richie. D.Weinman@ci.eugene.or. us Property Tax Exemption for New Multi-Unit Housing Application Coversheet r r The Multi-Unit Property Tax Exemption (MUPTE) is an incentive program to encourage downtown housing. This ten-year exemption is enabled by state law, but each project must be approved by the Eugene City Council. Both rental housing and multi-unit housing for home ownership are eligible. Projects must be within an area generally bounded by 4th Avenue, Patterson, 17th, and Lawrence Street. GENERAL INFORMATION Applicant(s) Business Name: ~,~[ ~" Address: Phone# (o~"'/' J~'~ J~'e-,~c~"'Ft~a~, E-mail: Representative: ~~ ~ Address (if different): Phone ~ Fax ~ E-mail: .ro.ose .rojec,.ame: Location: J~ ~ ~[t ELIGIBILITY AND QUALIFICATION cRITERIA Eligible Prope~. To be eligible for the prope~y tax exemption, a structure must be: 1. a multiple unit structure~'having five or more dwelling units, not designed or used as transient accommodations and not including hotels and motels; 2. housing completed on or before Janua~ 1, 2006. * This includes new multiple-unit housing on vacant sites, the conversion of buildings into new units on under-utilized sites and housing which increases densities consistent with the applicable Comprehensive Plan and zoning designations, as well as relevant plan goals and policies; and 3. located within the boundaries illustrated on the affached map of eligible areas. Term of Exemption. This program provides for a ten-year exemption for all residential improvements. The land and non-residential improvements continue to be taxed. * This date is currently written in the State Statutes. The 2005 Legislature will consider extending the program. The City is abl to offer a one year extension to January f, 2007. Property Tax Exemption for New Multi-Unit Housing Application Part One: GENERAL INFORMATION Project Name or Designation: %xo _."~-~, Parcel Size: 7~-7, L[ .,~ ~ S~. Estimated Dimensions of Project: Structure "Footprint" ~ O/~. 0 ~ ~ ..~. Sq. Ft. Building Square Footage ~)_/ ~ -~ Sq. Ft. Number of Stories Proposed Lot Coverage ~--~/~ (%) Amount of Open Space IL / ~-~ ~ Sq. Ft. (Parcel minus ' "footprint") Part Two: UNIT INFORMATION Type/descripti,on of construction and materials. ~)o1~)--~,ov~ ~¢ ¥ Oescrib; proposed landscaping. ~,a}./CI,~-~}~U~.,/0~-m,~~ ~, Pie s -- ' ' ' ~ / - a e affach the fmmwing to your application: 1. PRO-FORMA. Detailed constru~ion and operating cost analysis demonstrating project's ~ "need" for tax exemption, and that the project could not be built "but for" the tax exemption. This analysis or pro-forma should show thD re~tal rates of each type of unit both with and without the tax exemption. ~'~ ~~ ~ , 2. FINANCIAL FEASIBILI~. Information on the property costs and financing for the housing which demonstrates the financial feasibility of the project. 5~ ~~ 3. SITE P~N. A site plan and supposing maps, drawn to a minimum scale of one inch equals 16 feet, which shows in detail the development plan of the entire project, including a side and front elevation, showing streets, driveways, sidewalks, pedestrian ways, off- street parking, and loading areas; location and dimension of structures; use of land and structure; major landscaping features; design of structures; existing and proposed utility systems including s~jta~ sewers; storm sewers, water, electric, gas, and telephone lines. 5~. ~~~ ~, 4. PUBLIC/PRIVATE ACCESS. Description and map or diagram of public and private access to prope~ and parking, and circulation plans for project. Please provide above drawings on 8-1/2" X i1" size paper for reproduction purposes. The applicant is encouraged to provide, in addition to the above, any additional materials, such as economic feasibility statUs or market analysis appropriate to the project. $~ ~~ 5. PROPOSED ELIMINATION OF EXISTING STRUCTURES. Explanation and justification for any proposed elimination of existing, sound and rehabitable housing on the site. No exemption will be granted for any pmpe~y within the ~o years immediately pre,ding the date of application for the exemption. Thi~ restrictipn will be waived if the proposed project increases the number of dwelling units by 50% from what previously existed or if it replaces the old dwelling units by larger dwelling units that will accommodate families. Part Three: SITE INFORMATION/LEGAL DESCRIPTION Legal Description: Addition Block TaxLot [.~OO , l~rO/ )~00,/ Gross Streets: North Side ~ South Side East Side ~- West Side VVhat is the current use on the site? {)&v.~,~/ l~[I- Describe the current number and type of any structures, as well as their use, and the number of residential units, if any. Indicate the occupancy status and whether the structures will be demolished or relocated as part of the proposed development. Is the building over 50 years old or designated as a historic structure?' ~--- Signature of Applicant: '~?~--~( \~-,~ U,~C--!/~ ~ .~ ~,.~ ~~ate: SUBSCRIBED AND SWORN to before me thi~ ~ day of ~, ~¢ ~ My Comm~~p~r~s~O~ MUPTE Application: Public Benefits The Tate 1. Sustainability features: The Tate will incorporate many "green" features that will protect the residents, encourage energy efficiency, and enhance livability for the entire community. One of the major attraction of living in high-density housing in the downtown area is being within walking distance of grocery shopping, restaurants, public transport, the library, performance venues, and many other amenities, thus making us less dependent on our automobiles. The Tate will provide just one covered parking space per unit. Some of our buyers have said they plan to get rid of their car altogether. Families that now own two cars will need only one. The best land use includes higher density living in our city's core. The Tate will foster a sense of community among our own residents by having regular events in our large ground-floor common living room: parties, movie nights, musical evenings, etc. Many condominiums are full of people who don't know one another. We will try to insure that people at The Tate feel they are part of a community. Energy efficient building envelope: The Tate will use high-performance glazing with low e coating. The windows will be wood, to minimize heat transfer, clad with weather-resistant material. The Tate will use highly efficient insulation and weatherization, and will conform to ASHRAE/ESNA Standard 90.1. The roof will be Energy Star compliant, reflecting more heat from the sun than a typical roof, saving energy and reducing the "heat island" effect which is the result of urban areas acting as heat sinks. Electrical, gas, and water: The Tate will use highly efficient light fixtures throughout. The parking garage and common areas will use a time clock and occupancy sensors, photocell lighting controls, and efficient fluorescent fixtures to reduce energy use while maintaining safety. Electricity and gas will be metered in each unit, to encourage personal conservation. Appliances will be Energy Star compliant. Low flow toilets will be used. Reuse and recycle: We hope to reuse the existing concrete paving on the site as aggregate fill under the new paved areas and building slab. The contractor will be required to manage construction waste by separating recyclable material from garbage, in order to reduce the amount of material sent to the landfill. An area within the building.is dedicated to collection and separation of recyclables by residents. Material selection: Materials with recycled content or those that can easily be recycled in the future are being used wherever practical. These include carpet, base and trim boards, and concrete (fly ash). Local and regional materials will be incorporated into The Tate. MUPTE Public Benefits The Tate 2 ' ~ Indoor air quality: Our contractors will use paints, adhesives (carpet glue), and carpets which have low levels of VOCs (volitile organic compounds). This means cleaner air and less chance of allergic reactions for residents. The elevator will use vegetable-based oil as hydraulic fluid instead of potentially toxic petroleum oil. A whole-house ventilation system will be used at The Tate to bring in fresh air and remove stale air. Most windows will be operable so residents can bring in more fresh air. Sustainable site: The Tate will be built on an underutilized site (currently a parking lot) close to downtown Eugene and all the amenities available there. All of the infrastructure needed for the development of The Tate is available within the immediate area, reducing impact to the community. Bus service and bicycle paths are also close by. Landscaping: The Tate will incorporate landscaping on all sides, new street trees along Olive Street, and landscaping on the second floor common terrace, a gathering place for residents. Plant materials will be chosen for low water use and maintenance, as well as aesthetic considerations. Many native species will be used. 2. Responsiveness to adjacent historical structures: There are no adjacent historical structures. 3. Use of higher quality materials that cOntribute to longevity, durability, or enhanced building design: The Tate will be built with concrete, steel, and brick on the outside, and concrete and steel on the inside. The windows will be clad with weather-resistant material. We expect the building to be very attractive and durable. 4. Prominent entry facing the public street: The Tate will celebrate being on Olive Street. The main entrance on Olive Street leads to a spacious and beautiful lobby. The entrance will be dramatic and inviting, enhanced by attractive landscaping. The commercial spaces will have large windows and doorways facing Olive Street. All entrances will have attractive pedestrian-friendly canopies. Please see the attached artist's rendering of The Tate. 5. Number of units by which the minimum density is exceeded: The Tate will have 47 residential units and three commercial spaces. This greatly exceeds the required minimum of 25 (or 35 per acre). Of the 47 units, seven will have three bedrooms. The remaining 40 units are about equally divided between one and two bedroom units. 6. Number of available ADA accessible units: None of our buyers have expressed the desire to have their units fully accessible. But all units are ADA-adaptable, with bathrooms, kitchens, environmentals controls, and all doorways and hardware meeting ADA standards. The building contains two elevators. All units have the capability of being fully ADA compliant as required by the builing code. All common areas are fully accessible, including an ADA-accessible bathroom on the ground floor, next to our large community meeting room. ' MUPTE Public Benefits The Tate 3 7. Responsiveness to neighborhood character and safety: The neighborhood has a mixed character: residential, commercial, with a church directly across the street. The Tate incorporates both residential units and commercial space, which provides a transition between the residential area to the south and the more. commercial area to the north. Windows and balconies reflect the residential character of the area. Exterior canopies help to blend the commercial spaces into the residential areas. The Tate will help to create a new character for the area with a high-quality brick building reflecting elements of the new Eugene Public Library, the Eugene Station Bus Terminal, and the new Fire Station Number 1, located just around the corner. The height of The Tate will be approximately 75 feet, the same as the First Methodist Church, its neighbor directly across Olive Street. The new Eugene Public Library is a similar height. The Tate will also incorporate materials similar to those used on the Library, the Eugene Station, and Fire Station Number 1. Since The Tate will be taller than most buildings around it, it is designed to be viewed from all directions. The Tate will incorporate features which will reduce its apparent mass: indented areas, landscaping, and a metal-clad sixth floor which will be set back from the rest of the building, resulting in a smaller footprint for this level. Public safety is facilitated by large window areas, canopies, and exterior lighting and landscaping, which will not only complement the building, but will also provide a clear view of one's surroundings. A secure entry and gated parking will help insure safety for residents. 8. Number of units designed for home ownership: All forty-seven residential units are designated for home ownership. Sixteen of these have been sold as of early October, several with the contigency that The Tate receive MUPTE approval. The three commercial spaces on the ground floor, which do not qualify for MUPTE, are also designed for sale, and have already been sold. 9. Solicitation of comments from relevant neighborhood association: Several of our investors, along with Sara Bergsund, our local architect, attended a meeting of Jefferson Westside Neighbors earlier this year. The neighbors attending were very interested in our project. There seemed to be no negative feelings. Their main concern was parking, and they were reassured when they learned that all residential and commercial parking at The Tate would be on-site, not on the street. They appreciated the architectural features of the building. They liked the fact that all our units have large balconies, our own "outside space." We look forward to being a part of this vibrant neighborhood. Olive Street- Eugene Schematic ASSUMES FULL RECOURSE DEBT Projected LAND ACQUISITION 350,000.00 HARD COSTS HSW CONSTRUCTION 12,829,385 89 ~'-~'?:'"'~"·'i::'"i· ?:->'i~'!:?"!'"'"'"'"'::-:::''''':''''·':''''''''''~'''':: :~:.::::i:.::~:!:!-'.':~ ~: ~: :!: :~-;: :::::::::: ::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::: ::::: :':'":'~": SOFT COSTS PLANS EXPENSE 886,004.00 MARKETING COSTS 100,000.00 PERMITS & FEES 379 087.00 LEGAL 50 000.00 OWNERS REP 100 000.00 SPECIAL INSPECTIONS 40 000.00 CONDO SURVEY .,~ 40 000.00 PROJECT MANAGEMENT 500 000.00 PROPERTY TAXES 10 000~00 ESCROW FEES 46 000.00 LOAN FEE (1.0%) 140 169.94 CONSTRUCTION INTEREST (4.25%) 595,722.23 INSURANCE 160,000.00 -MISCELLANEOUS 50,000.00 HCA DUES 40,000.00 CONTINGENCY @ 3.0% 384,881.58 TOTAL DEVELOPMENT COSTS 16,701,250.64 REVENUE UNIT SALES 17,872,250.00 TOTAL SALES (with Decks) 18,689,325.00 LESS DEVELOPMENT COSTS (16,701,250.64) LESS SALES COSTS (467,233.13) PROJECT PROFIT 1,520,841 Return on Costs 9% Return on Equity 57% Total Units 4~' Gross Total Sq/ff. 103,039 Total Saleable Residential Sq/ff. 64,990 Construction Cost Per Foot 124.51 Sales Price/Sq. Ft. 275 Deck Square Footage 7105 Deck $/Sq/ft. 115.00 Attachment 2 Financial Feasibility The attached schematic proforma lists our projected costs, both hard and soft and our projected sales proceeds. We have a loan commitment from Bank of America for approximately $14,250,000. The investors have committed to a total of approximately $2,500,000 ($1,250,000 of which has been contributed to date). Sales to date total over $6,500,000 with almost another $1,000,000 of additional units reserved. (Several of our binding sales agreements are contingent on receiving MUPTE) In our collective opinion, the project, once it receives its exemption, is financially feasible. ! ! I I [l,,;;l!;l?, ,t,~a I; ,, ~,J ;, II Ii / · ] !Uii!!~,jl i ill~.l~i 'j I! ,~l:' t ':'' J "-.., !1 I~- 'i · IlJqll,,,l!l I1,!~ ijll ill lift i~, j ,, ' !J"' "'"' il" '"'*'" "" · ,',,~. , ., I I !!! iii!ii ! ' ! III 'lilJJl~! ,,. I{Jl~ll'""'~ The Tate Attachment 4 - Access Public access: The commercial spaces have doorways facing Olive Street. The Tate lobby faces Olive Street. A driveway is on the north side of the property, and provides access to parking behind the building for both visitors and patrons of the commercial spaces. Service access: The driveway leads to a serviCe entrance on the north side of the building. Private access: In addition to the public access, residents can enter through the secure covered parking on the ground floor of the building. UPTOWN LIVING .:o DOWNTOWN CONVENIENCE Reserve your unit now for occupancy in fall 2005. The Tate, Eugene's exciting new downtown condominium project, will be located at 1375 Olive Street. Destined to become one of the city's most sought-after home addresses, The Tate will provide the very finest in upscale living. The Tate will offer the following features: Individual units are available with one, two and · High quality, six-story brick building three bedrooms, and will be tastefully appointed with 47 residential units, ranging in size with the following features: from 794 to 2,128 sq. ft. · Single level living · Convenient location within walking dis- · Private, spacious terraces or balconies tance of the new public library, river · Hardwood floors in main living areas trails, restaurants, the Hult Center, gal- · Ceramic tile bathrooms leries and bookstores, as well as athletic · Stainless steel appliances and quality and medical facilities fixtures · Private and secure ground-level parking · Beautifully designed kitchens, including · Secure entrance granite tile countertops and choice of · Individual storage electric or gas ranges · Large, private lobby as well as · Optional gas fireplaces communal terrace · Forced air heating and air conditioning · Energy-efficient windows Don't miss this exceptional opportunity to enjoy gracious downtown living. For details about The Tare, or to reserve a unit, please contact The Tate sales office at 465-8113 or 1-866-The Tate (1-866-843-8283), or visit our website at www.tatecondominiums.com ~ Marketed by: Windermere Jean Tate Real Estate 1600 Oak St. Eugene, OR 97401 ~,~,'~,5%u~I~ ATTACHMENT D MULTI-UNIT HOUSING INCENTIVE HISTORY Broadway Center Washington and Broadway 12 studio; 71 One-Bdrm; 24 1978 Two-Bdrm; 12 Studio (107 total) Lawrence Court 8th and Lawrence 50 One-Bdrm 1980 (approx) (all low-income) Washington Abbey 10th a~d Washington 90ne-Bdrm/plus loft; Five 1984 Two-Bdrm; 34 One-Bdrm (48 Total) Olive Terrace 15th Ave. & Olive St. 4 Studio; 12 One-Bdrm Units; 1989 12 Two-Bdrm Units. (28-Total) Joseph Shapitka 445 W. 10th Ave. 8 Two-Bdrm Units. 1990 (8-Total) Burnell Ambrose 17 & 35 Lawrence St. 70ne-Bdrm Units. 1995 (7-Total) Nozama Apartments 525 & 541 E. 19th Ave. 12 Two-Bdrm Units; 2 Four- 1995 Bdrm Units. (14-Total) Art Carrnichael 701 & 725 E. 14thAve. 1357 & 44 Two-Bdrm Units; 9 One- 1995 1377 Hilyard Bdrm Units. (53-Total) Phil Klingensmith/ 632 E. 15th Avenue 6 Studio; 80ne-Bdrm Units; 1996 Don McRae 16 Two-Bdrm Units. (30-Total) High Stxeet Terrace 10th Ave. & High St. 20 Studio; 26 One-Bdrm Units; 1996 12 Two-Bdrm Units. (58-Total) Broadway Place Broadway and Charnelton 74_Studio, 72 One-Bedroom, 1996 24 Two Bedroom (170-Total) L:\CMO\2004 Council Agendas\M041122\S0411222D.doc ATTACHMENT E ATTACHMENT F October 14, 2004 The Register Guard seeking Comments From The Public The City bi Eugene has received a request for a ten~yea? proPerty tax exemption Under the City's adopted Multi-Unlt Property Tax Exemption Program (MUPTE). The request is for a proposed apartment building, "The Tare" to be constmctsd at 1375 Olive. The applicants, the 1375 Olive Partnership, propose tO construct 47 units of new housing. ~ appilcation may be reviewed at the Cibj of Eugene Permit and Information Center, M-F 1:00-5:00 pm. Written comments m~y be submitted to: Rlchle weJnman Cit~ of Eugene Planning and , Development DePartment 96 W. lOth Avenue, Eugene, OR 97401 or RIchie.d.welnman@c!.eugeue.or.us. For more information please call Commoats must be received by 6:00 pm on November lg, ,2004. ~~/ I 757862T1~ ~' ~'~ Please turn to ~ Page srzP~z B~sow / tion,on' CO~tm~e~ fro~ page B1 studio to ~?~,a~or~th for,~ two~ b~ ~it. ~ey haV~n i. s~ work at ~e site yet. ~ fm~i~ p~jections' ~ mo~ complkat~ for a~ndo p~}~su~h-as ~e Tate, ~ s~d; e1~8 tl~t t~el I titans w~l~a/~ o~t~ I ~aiger. ' /,i Page 1 of 1 WEINMAN Richie D From: EGBERTS5@aol.com Sent: Friday, October 15, 2004 10:01 AM To: richie.d.weinman@ci.eugene.or, us Subject: 10 years for the tate is to much time Why 10 years that is to much time for the tax amp buildings. I feel that 5 years is quite enough, for anybody to get away from paying there share of taxes. Thank you Lindo 10/18/2OO4