HomeMy WebLinkAboutItem C: Resolution 4920 - MUPTE for 11th Ave and Lincoln St
ECC
UGENE ITY OUNCIL
AIS
GENDA TEM UMMARY
Action: Resolution 4920 Approving a Multiple-Unit Property Tax Exemption for
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Residential Property Located at Northwest Corner of 11 Avenue and Lincoln Street,
Eugene, Oregon (Eugene Downtown Co-Housing LLC, Applicant)
Meeting Date: November 13, 2007 Agenda Item Number: C
Department: Planning and Development Staff Contact: Richie Weinman
www.eugene-or.gov Contact Telephone Number: 682-5533
ISSUE STATEMENT
The City Council is asked to approve a resolution granting a Multi-Unit Property Tax Exemption
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(MUPTE) for Eugene Downtown Co-Housing on the Northwest Corner of 11 and Lincoln Streets in
Eugene.
BACKGROUND
The MUPTE program was created to encourage new housing in the core area. The council has a 30-year
history of supporting tax exemptions under this program, approving a total of 16 requests (Attachment
C). Of these, the tax exemption has expired on 11 of the developments. Ten are now taxed and one,
Lawrence Court, changed hands and is operated as public-purpose, tax-exempt, low-income housing.
In April 2004, the council amended the MUPTE program regulations and boundary. The most
significant change to the regulations was to include more stringent quality standards for developments
being considered for the exemption.
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Eugene Downtown Co-Housing is proposed to be built at 11 Avenue and Lincoln Street. It is in the
Downtown Westside Special Area Zone, where high density housing is an outright use.
Citizen Comments
A display ad was placed in the Register-Guard and comments were requested for a 30-day period. That
period ended on October 1, 2007, and no comments were received. Last year, the applicant made a
presentation to the Downtown Neighborhood Association and received a favorable reception but no
specific endorsement.
Design Features
Each applicant for a MUPTE is expected to respond to a list of quality standards. The applicant
responded by including the following features in this proposal.
Use of nine-foot ceiling and ceiling fans rather than air conditioning;
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Use of instant, on-demand hot water heaters;
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Common laundry room with energy efficient washers and dryers rather than washers and dryers
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in each unit;
Energy efficient insulation and lighting which meets EWEB standards;
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Low Volatile Organic Compound (VOC) paints;
?
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Smaller square footage in the living units, using common walls;
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Encouraging car sharing, reduced driving and more walking which creates energy savings.
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Responsiveness to adjacent historic structures
There are no adjacent historic structures. Recently the site included two homes, more than 50 years
old, which were poorly constructed, in poor condition, and had been used for the past 10 to 20 years
as drug rehabilitation homes. According to City of Eugene Senior Planner Ken Guzowski, they were
not historic structures.
Use of higher quality materials that contribute to longevity
The first floor will have concrete masonry units. The upper floor will have siding made of long-
lasting concrete composite, but designed to look like high quality residential wood siding.
Number of units by which minimum density is exceeded or which incorporate three or more
bedrooms to encourage families
Twelve of the units will have three or more bedrooms to encourage families to live downtown.
Number of available ADA accessible units
Twenty-two of the 24 units will be fully handicapped adaptable as the project will be served by an
elevator and all units will have wide doors and turning spaces to accommodate wheelchairs.
Responsiveness to neighborhood character and safety in respect to height, mass, architectural
detail, landscaping and open space
The project consists of a three-story building. The street level will provide commercial space,
common space to serve the residential units and a parking area. The second floor will have a large
open air plaza surrounded on four sides by a ring of apartment style condos and townhouse condos.
The third floor will have additional apartments and the second levels of townhouses. The residential
units will include private decks and the open air plaza will have trees, shrubbery, flowers, chairs,
tables and possibly a children’s play space. The project will also include about 2,500 square feet of
common space for community meals and gatherings.
Number of units designed for home ownership
Twenty-three of the 24 units will be offered for sale.
Impact and Need for Tax Exemptions to Encourage Housing
The City and other local taxing districts forgo some revenue when a development is exempt from taxes.
The land itself continues to be taxed during the exemption period. This project proposes new
construction on a property that has been underdeveloped based on the zoning. The improvements will
bring increased revenue, after 10 years, beyond what is currently being collected. Currently, the total
collected taxes on the property amount to $4,820 per year. Approximately $2,460 is tax on the land,
which will continue to be collected. The estimated annual value of improvements that will be exempted
for 10 years is $86,901.
The applicant presented evidence that MUPTE is needed for this housing development because the cost
of building the housing is greater than market value for a sale. The tax exemption provides the new
owner with the justification for purchasing the unit and enables a financial institution to lend on the
project.
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Timing
This application was submitted on August 20, 2007. The council has 90 days to review the Director’s
Report and Recommendation. If the council hasn’t acted in 180 days, the application is considered
approved. The City Council consideration is currently within the first 90-day time period. The
applicant has expressed anxiousness to begin construction.
RELATED CITY POLICIES
MUPTE is enabled by state statute and the City of Eugene has participated in the program since 1978.
This site is not actually within the boundary of either the Downtown Plan or the Westside Plan. Both
neighborhoods encourage homeownership. Three of the City’s Growth Management Policies apply:
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 businesses and residential uses downtown using incentives and zoning.
COUNCIL OPTIONS
1. The council may approve the exemption.
2. The council may postpone action.
3. The council may deny the exemption.
CITY MANAGER’S RECOMMENDATION
The City Manager recommends approval of the exemption.
SUGGESTED MOTION
Move to adopt Resolution 4920 approving a multiple-unit property tax exemption for residential
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property located at northwest corner of 11 Avenue and Lincoln Street, Eugene, Oregon (Eugene
Downtown Cohousing LLC, applicant).
ATTACHMENTS
A. Resolution approving a property tax exemption for Eugene Downtown Co-Housing
B. Report from the Planning and Development Director
C. History of granted multi unit tax exemptions in Eugene
D. Current photo of the property
E. Images of proposed development
Note: The full application will be placed in the Council Office for review.
FOR MORE INFORMATION
Staff Contact: Richie Weinman
Telephone: 682-5533
Staff E-Mail: richie.d.weinman@ci.eugene.or.us
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ATTACHMENT A
RESOLUTION NO. _____
A RESOLUTION APPROVING A MULTIPLE-UNIT PROPERTY TAX
EXEMPTION FOR RESIDENTIAL PROPERTY LOCATED AT NORTHWEST
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CORNER OF 11 AVENUE AND LINCOLN STREET, EUGENE, OREGON
(EUGENE DOWNTOWN COHOUSING LLC, APPLICANT).
The City Council of the City of Eugene finds that:
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A.
Martin Henner is the owner of real property located at the northwest corner of 11 Avenue and
Lincoln Street, Eugene, Oregon, (map and tax lot numbers 17-03-31-13-12900, 17-03-31-13-13000, 17-
03-31-13-13100, 17-03-31-13-13200, and 17-03-31-13-13300), more particularly described on the
attached Exhibit A, and is the registered agent for Eugene Downtown Cohousing LLC. Eugene
Downtown Cohousing LLC 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
residential units to be constructed on the property.
B.
A display ad soliciting recommendations or comments from the public was published in the
Register-Guard on September 2, 2007, and advised that written comments would be accepted for a
period of 30 days from the date of publication. Recommendations or comments were also solicited from
the Planning Commission, and other interested City departments, agencies, and neighborhood groups.
No comments were received.
C.
The Report and Recommendation attached as Exhibit B, which was prepared by the Director of
the Planning and Development Department (“the Director”) as designee of the City Manager,
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 as set forth in Section 2.945 of the Eugene Code, 1971, and is in
compliance with the policies set forth in the Standards and Guidelines adopted by Administrative Order
No. 53-04-03-F.
D.
The project consists of the development of two one-bedroom units, ten two-bedroom units, 11
three bedroom units, and one four-bedroom unit. In addition, there are four commercial/retail units on
the ground floor which are not included in this request for a tax exemption. The units are not designed
for, nor will be used as, transient accommodations.
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 adopted, and the City Council’s review of the
Report and Recommendation of the Director of the Planning and Development Department attached as
Exhibit B, the City Council approves the application of Eugene Downtown Cohousing LLC for an ad
valorem property tax exemption under the City’s Multiple-Unit Property Tax Exemption Program for
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the residential units to be constructed at the northwest corner of 11 Avenue and Lincoln Street, Eugene,
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Oregon, (map and tax lot numbers 17-03-31-13-12900, 17-03-31-13-13000, 17-03-31-13-13100, 17-03-
31-13-13200, and 17-03-31-13-13300), and more particularly described on the attached Exhibit A,
subject to the following conditions:
1.
The project shall consist of the development of two one-bedroom units, ten two-bedroom
units, 11 three bedroom units, and one four-bedroom unit. In addition, there are four
commercial/retail units on the ground floor which are not included in this request for a tax
exemption. The units are not designed for, nor will be used as, transient accommodations.
2.
The project shall be completed on or before January 1, 2012.
3.
The project shall include those public benefit design elements in the Standards and
Guidelines as described in Section 2.2 of the 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 of ten years unless earlier terminated
in accordance with the provisions of Section 2.947 of the Eugene Code, 1971.
Section 3.
The City Manager, or the Manager’s designee, is requested to forward a copy of this
Resolution to the applicants, 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, 2008.
Section 4.
This Resolution shall become effective immediately upon its adoption.
The foregoing Resolution adopted and effective the ____ day of _____________, 2007.
___________________________________
City Recorder
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ATTACHMENT B
REPORT AND RECOMMENDATION
of the
Director of the Planning & Development Department
Eugene Downtown Cohousing LLC
Multiple-Unit Property Tax Exemption
The Director of the Planning & Development Department of the City of Eugene finds that:
1.
Martin Henner is the registered agent for Eugene Downtown Cohousing LLC, and is the owner
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of real property located at the northwest corner of 11 Avenue and Lincoln Street, Eugene, Oregon,
(map and tax lot numbers 17-03-31-13-12900, 17-03-31-13-13000, 17-03-31-13-13100, 17-03-31-13-
13200, and 17-03-31-13-13300), and more particularly described in Exhibit A attached to the Resolution
approving this tax exemption. Eugene Downtown Cohousing LLC 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 units to be constructed on the real
property.
2.
I have reviewed the application and specifically find that the project to be constructed will result
in an eligible structure for the property tax exemption as defined in the Standards and Guidelines, will be
located within the downtown core area, the construction will be completed on or before January 1, 2012,
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:
•Use of 9-foot ceiling and ceiling fans rather than air conditioning;
•Use of instant, on demand hot water heaters;
•Common laundry room with energy efficient washers and dryers rather than washers and dryers in
each unit;
•Energy efficient insulation and lighting which meets EWEB standards;
•Low VOC paints
•Smaller square footage in the living units, using common walls.
•Encouraging car sharing, reduced driving and more walking which
creates energy savings
2.2.2 Responsiveness to adjacent historic structures. There are no adjacent historic structures.
Currently on the site are two homes more than 50 years old which are poorly constructed,
in poor condition, and have been used for the past ten to 20 years as drug rehabilitation
homes. According to City of Eugene Senior Planner Ken Guzowski, they are not historic
structures.
2.2.3 Use of higher quality materials that contribute to longevity. The first floor will have
concrete masonry units. The upper floor will have siding made of long lasting concrete
composite, but designed to look like high quality residential wood siding.
F:\CMO\2007 Council Agendas\M071113\S071113C.doc
2.2.4 Prominent entry facing the public street. This application does not address this public
benefit design element.
2.2.5 Number of units by which minimum density is exceeded or which incorporate three or
more bedrooms to encourage families. Twelve of the units will have three or more
bedrooms to encourage families to live downtown.
2.2.6 Number of available ADA accessible units. Twenty two of the 24 units will be fully
handicapped adaptable as the project will be served by an elevator and all units will have
wide doors and turning spaces to accommodate wheelchairs.
2.2.7 Responsiveness to neighborhood character and safety in respect to height, mass,
architectural detail, landscaping and open space. The project consists of a three story
building. The street level will provide commercial space, common space to serve the
residential units and a parking area. The second floor will have a large open air plaza
surrounded on four sides by a ring of apartment style condos and townhouse condos. The
third floor will have additional apartments and the second levels of townhouses. The
residential units will include private decks and the open air plaza will have trees,
shrubbery, flowers, chairs, tables and possibly a children’s play space. The project will
also include about 2,500 square feet of common space for community meals and
gatherings.
2.2.8 Number of units designed for home ownership. Twenty-three of the 24 units will be
offered for sale.
2.2.9 Solicitation of comments from relevant neighborhood associations. Applicant did not
include comments from the relevant neighborhood association. While the applicant
correctly notes that the site is not included within the boundaries of the Jefferson
Westside Neighborhood Association, it does fall within the boundaries of the Downtown
Neighborhood Association. It does not seem that applicant has made an effort to solicit
comments from the Downtown Neighbors.
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 Currently on the site are two old homes which are poorly constructed and in poor condition
and have been used for the past ten to 20 years as drug rehabilitation homes.
2.5 The owner has stated in the application and provided evidence that the project would not be
feasible without the tax exemption.
3.
A display ad soliciting recommendations or comments from the public regarding this
project was published in the Register-Guard on September 2, 2007. The period for comment
expired on October 2, 2007. No comments were received.
Therefore,
based upon the above findings, the project is in conformance with all applicable local
plans and provisions of the Eugene Code, 1971, planning regulations, the Metropolitan Area General
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Plan, and the criteria set forth in the City’s adopted Standards and Guidelines for Multiple-Unit Housing
Property Tax Exemption, and I recommend that the application be approved.
Dated this _____ day of _________________________, 2007.
_________________________________
Director, Planning & Development
Department, City of Eugene
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ATTACHMENT C
MULTI-UNIT HOUSING PROPERTY TAX EXEMPTION PROGRAM HISTORY
NAMEADDRESSNUMBER OF UNITSYEAR
APPROVED
Broadway Center Washington and Broadway 107 units 1978
12 studio; 71 One-Bedroom; 24 Two-
Bedroom; 12 Studio
Lawrence Court 8th and Lawrence 50 One-Bedroom 1980
(currently all low-(approx)
income)
Washington Abbey 10th and Washington 48 units 1984
9 One-Bedroom/plus loft; Five Two-
Bedroom; 34 One-Bedroom
Olive Terrace 15th Ave. & Olive St. 28 units 1989
4 Studio; 12 One-Bedroom Units; 12
Two-Bedroom Units
Joseph Shapitka 445 W. 10th Ave. 8 Two-Bedroom Units. 1990
Burnell Ambrose 17 & 35 Lawrence St. 7 One-Bedroom Units. 1995
Nozama Apartments 525 & 541 E. 19th Ave. 14 units 1995
12 Two-Bedroom Units; 2 Four-Bedroom
Units.
Hilyard House
701 & 725 E. 14th Ave. 1357 53 units 1995
& 1377 Hilyard 44 Two-Bedroom Units; 9 One-Bedroom
Art Carmichael
Units.
Paradice Apts 640 E. 15th Avenue 30 units 1996
Phil Klingensmith/ 6 Studio; 8 One-Bedroom Units;
Don McRae 16 Two-Bedroom Units.
High Street Terrace 10th Ave. & High St. 58 units 1996
20 Studio; 26 One-Bedroom Units; 12
Two-Bedroom Units
Broadway Place Broadway and Charnelton 170 units 1996
74 Studio, 72 One-Bedroom, 24 Two
Bedroom
The Tate 1375 Olive 47 units – condominiums 2004
14 one-bedroom, 27 two-bedroom, 6
three-bedroom
Patterson House 979 Patterson 27 units 2004
3 studio, 12 0ne-bedroom, 12 two-
bedroom
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Parkside Place 633 E. 14 Alleyway 21 units 2006
1 one-bedroom, 2 two-bedroom, 5 three-
bedroom, 7 four-bedroom, 6 five-bedroom
2007
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Coho Townhouses 631 E. 14 Ave. 9 four-bedroom units Under
construction
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14 units
Patterson Place 1360,1372 Patterson 2 two-bedroom, 6 three-bedroom, 4 four-2007
bedroom, 2 five-bedroom
PENDING REQUESTS
NAME ADDRESS NUMBER OF STATUS COUNCIL
UNITS ACTION
Steelhead Townhouses 534,535 E. 9 rental Submitted Aug 28 TBD
- Dan Neal 14th Comment period
ends October 1
Eugene Downtown 990 Lincoln 24 ownership Submitted Aug 20 TBD
Cohousing 7 rental (tentative) Comment period
- Martin Henner ended October 1
Updated: October 15, 2007
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ATTACHMENT D
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