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HomeMy WebLinkAboutItem D: Resolution 4921 - MUPTE for 534 and 535 East 14th Alley ECC UGENE ITY OUNCIL AIS GENDA TEM UMMARY Action: Resolution 4921 Approving a Multiple-Unit Property Tax Exemption for thth Residential Property Located at 534 East 14 Avenue and 535 East 14 Alley, Eugene, Oregon (West University Sustainable Housing LLC, Applicant) Meeting Date: November 13, 2007 Agenda Item Number: D 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 thth (MUPTE) for Steelhead Townhouses at 534 E. 14 Avenue and 535 E. 14 Alley in Eugene. BACKGROUND The council has a 30-year history of supporting tax exemptions under this program to encourage new housing in the core area. In April 2004, the council amended the MUPTE program regulations and boundaries. thth This project is proposed to be built at 534 E. 14 Avenue and 535 E. 14 Alley. The property is zoned R-3 high density residential. There are currently two structures on the site. In the front is a two-story home. In the rear is a four-plex that was constructed in the 1960’s. Both buildings are in poor condition and are at the end of their useful life. Both are described by the owner as “energy sieves” and the owner indicates that EWEB has been unable to identify any reasonably affordable means of increasing energy performance. Neither building has historic value. Citizen Comments An advertisement was placed in the Register-Guard seeking comments for 30 days. No citizen comments were received. The developer met with the West University Neighbors and reviewed the project plans. The West University Neighbors wrote a letter of support for this MUPTE application and indicated they were pleased with the quality of the design, including sustainability features. They were also pleased that the large street trees will be preserved. This letter is provided in Attachment F. Design Features Consistent with the council’s stated interests as part of the adopted MUPTE Standards and Guidelines, this application proposes housing that increases density in the core area and provides new housing using higher grade materials. The proposed housing is a nine-unit apartment complex. Each unit will have four bedrooms. F:\CMO\2007 Council Agendas\M071113\S071113D.doc The project developer, Dan Neal, appears to be very committed to sustainable practices. Steelhead Townhouses is being designed by architect Richard Shugar and will be constructed by Essex Construction, two firms with significant experience in sustainable building. Sustainability features An architect and general contractor with expertise in the area of sustainability have been hired. The sustainability features of this project add approximately 15 percent to the cost of the project, so many of these features are feasible only if the MUPTE is approved. These features include: Use of fiberglass windows rather than windows constructed from vinyl. ? Reliance on natural lighting requiring more windows and skylight tubes. ? Landscaping features that use native species which will reduce the need for fertilizers, herbicides ? and pesticides. Use of solar electric system that uses mono-crystalline modules to generate electricity for the site ? in cooperation with EWEB. Use of sustainable products: Marmoleum for kitchen and bathroom floors; carpeting in the ? bedrooms and living rooms that use recycled materials as backing; paints having no volatile organic compounds; siding consisting of long-lasting corrugated metal in certain areas and Hardi Plank elsewhere; baseboards constructed of medium density fiberboard; cabinetry using glues free of formaldehyde; plumbing and electrical products selected mainly for energy efficiency; composition roof with longer useful life than typical 20-year products. Treatment of stormwater on site. ? Responsiveness to adjacent historic structures th There are no adjacent historic structures. The building currently on the 534 East 14 Avenue lot is over 50 years old, but according to City of Eugene Senior Planner Ken Guzowski, is not a historic structure. Use of higher quality materials that contribute to longevity The project will reflect a high level of attention to detail. The exterior design of the Steelhead Townhouses will include the integrated usage of three different compatible siding materials and a variety of interesting design details. The interiors will feature granite countertops along with many other high quality finishes in the cabinetry, floor coverings, and light fixtures. The bicycle storage area will be unique, functional, attractive, secure, and will have a roof to protect bicyclists from the elements when they are getting their bicycles in and out of storage. Prominent entry facing the public street th The Steelhead Townhouses will have an attractive entry on 14 Avenue. Landscaping features and open space will be prominent. The Steelhead Townhouses will avoid a big box type of appearance to create a more attractive, livable environment for the West University neighborhood. Number of units by which minimum density is exceeded or which incorporate three or more bedrooms to encourage families All nine of the Steelhead Townhouse units will have four or more bedrooms making each well suited to families as well as student groups. Marketing of the townhouses will focus on families such as university or hospital employees who might find it desirable to live close to their employment and across the street from the new West University Park. Increasing the density in this area will assist in creating additional housing close to the urban core. F:\CMO\2007 Council Agendas\M071113\S071113D.doc Number of available ADA accessible units The units will have unlimited ADA accessibility in the open spaces and on the first floor of each townhouse. The upper floors are only accessible by stairs, and, therefore, the upper floors are not wheelchair accessible. The applicant notes that safety and accessibility features will be included throughout the project to enable a wide variety of disabled persons to gain access to as much of the project as possible. For example, fire alarms will be suitable for the hearing and sight impaired. Responsiveness to neighborhood character and safety in respect to height, mass, architectural detail, landscaping and open space The project contains over 60 percent open space, significantly more open space than required by the Code for multi-family housing in this zone. The height of the townhouses will be limited to three stories, no higher than other structures in the immediate area. The high level of architectural detail and landscaping plan for this project will enhance the character of the neighborhood. Exterior lighting will be well designed and located, which should reduce the amount of transient activity in the area. Number of units designed for home ownership The Steelhead Townhouses are not designed for individual homeownership, and will be available for lease only. Impact and Justification of the Tax Exemption The City and other local taxing districts forgo revenue when property is exempted from taxes. Currently, $4,927 in taxes is collected annually for this property. Of that, about $1,870 (38 percent) is for the land and will continue to be collected during the exemption period. The proposed improvements will generate about $20,000 in annual taxes once the exemption period is over. The applicant must demonstrate that the project could not be built “but for” the exemption. A staff review of the pro-forma indicates that the proposed project costs are reasonable and that the development would not have adequate cash flow without the exemption to make the project feasible for project financing. RELATED CITY POLICIES MUPTE is enabled by state statute. The City of Eugene has participated in the MUPTE program since 1978. Since that time, 16 requests have been approved by the City Council. Encouraging housing in the core area is consistent with numerous adopted planning and policy documents. Examples include: 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. West University Refinement Plan V.9 The City will encourage residential uses in all parts of the plan area. V.11 The City and the neighborhood shall study ways to encourage a variety or mix of structure types providing both owner and rental opportunities and appealing to a diverse population. F:\CMO\2007 Council Agendas\M071113\S071113D.doc 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 approving the resolution to grant the exemption. SUGGESTED MOTION Move to adopt Resolution 4921 approving a multiple unit property tax exemption for residential thth property located at 534 E. 14 Avenue and 535 E. 14 Alley, Eugene, Oregon (West University Sustainable Housing LLC, applicant). ATTACHMENTS A. Resolution approving a property tax exemption for Steelhead Townhouses B. Report from the Planning and Development Director C. History of granted multi-unit tax exemptions in Eugene D. Images of existing conditions E. Images of proposed development F. Comment letters Note: A copy of the full application will be placed in the City Council Office for review. FOR MORE INFORMATION Staff Contact: Richie Weinman Telephone: 682-5533 Staff E-Mail: richie.d.weinman@ci.eugene.or.us F:\CMO\2007 Council Agendas\M071113\S071113D.doc ATTACHMENT A RESOLUTION NO. _____ A RESOLUTION APPROVING A MULTIPLE-UNIT PROPERTY TAX th EXEMPTION FOR RESIDENTIAL PROPERTY LOCATED AT 534 EAST 14 th AVENUE AND 535 EAST 14 ALLEY, EUGENE, OREGON (WEST UNIVERSITY SUSTAINABLE HOUSING LLC, APPLICANT). The City Council of the City of Eugene finds that: thth A. Dan Neal is the owner of real property located at 534 East 14 Avenue and 535 East 14 Alley, Eugene, Oregon, more particularly described on the attached Exhibit A, and is the registered agent for West University Sustainable Housing LLC. West University Sustainable Housing 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 August 31, 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 eight residential four-bedroom units, and one residential five-bedroom unit, which 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 West University Sustainable Housing LLC for an ad valorem property tax exemption under the City’s Multiple-Unit Property Tax Exemption Program thth for the residential units to be constructed at 534 East 14 Avenue and 535 East 14 Alley, Eugene, Oregon, and more particularly described on the attached Exhibit A, subject to the following conditions: F:\CMO\2007 Council Agendas\M071113\S071113D.doc 1. The project shall consist of eight residential four-bedroom units, and one residential five- bedroom unit, which 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 all of the public benefit design elements as required in the Standards and Guidelines and 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 F:\CMO\2007 Council Agendas\M071113\S071113D.doc ATTACHMENT B REPORT AND RECOMMENDATION of the Director of the Planning & Development Department West University Sustainable Housing LLC Multiple-Unit Property Tax Exemption The Director of the Planning & Development Department of the City of Eugene finds that: 1. Dan Neal is the registered agent for West University Sustainable Housing LLC, and is the owner th of real property located at 534 East 14th Avenue and 535 East 14 Alley, Eugene, Oregon, and more particularly described in Exhibit A attached to the Resolution approving this tax exemption. West University Sustainable Housing 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. Architect and general contractor with expertise in the area of sustainability have been hired. The sustainability features of this project add approximately 15% to the cost of the project, so many of these features are feasible only if the MUPTE is approved. These features include: •Use of fiberglass windows rather than windows constructed from vinyl. •Reliance on natural lighting which uses more windows and skylight tubes. •Landscaping features that use native species which will reduce the need for fertilizers, herbicides and pesticides. •Use of solar electric system that uses mono-crystalline modules to generate electricity for the site in cooperation with EWEB. •Use of sustainable products: Marmoleum for kitchen and bathroom floors; carpeting in the bedrooms and living rooms that use recycled materials as backing; paints having no volatile organic compounds; siding consisting of long-lasting corrugated metal in certain areas and Hardi Plank elsewhere; baseboards constructed of medium density fiberboard; cabinetry using glues free of formaldehyde; plumbing and electrical products selected based mainly on energy efficiency; composition roof with longer useful life than typical 20-year products. •Treatment of stormwater on site. F:\CMO\2007 Council Agendas\M071113\S071113D.doc 2.2.2 Responsiveness to adjacent historic structures. There are no adjacent historic structures. th The building currently on the 534 East 14 lot is over 50 years old, but according to City of Eugene Senior Planner Ken Guzowski, is not a historic structure. 2.2.3 Use of higher quality materials that contribute to longevity. The project will reflect a high level of attention to detail. The exterior design of the Steelhead Townhouses will include the integrated usage of three different compatible siding materials and a variety of interesting design details. The interiors will feature granite countertops along with many other high quality finishes which are reflected in items such as cabinetry, floor coverings, and light fixtures. The bicycle storage area will be unique, functional, attractive, secure, and will have a roof to protect bicyclists from the elements when they are getting their bicycles in and out of storage. 2.2.4 Prominent entry facing the public street. The Steelhead Townhouses will have an th attractive entry on 14 Avenue. Landscaping features and open space will be prominent. The Steelhead Townhouses will avoid a big box type of appearance to create a more attractive, livable environment for the West University neighborhood. 2.2.5 Number of units by which minimum density is exceeded or which incorporate three or more bedrooms to encourage families. Because all nine of the Steelhead Townhouse units will have four or more bedrooms, they are well suited to families as well as student groups. Marketing of the townhouses will focus on families such as university or hospital employees who might find it desirable to live close to their employment and across the street from the new West University Park. Increasing the density in this area will assist in creating additional housing close to the urban core. 2.2.6 Number of available ADA accessible units. The units will have unlimited ADA accessibility in the open spaces and on the first floor of each townhouse. The upper floors are only accessible by stairs, and, therefore, the upper floors are not wheelchair accessible. The applicant notes that safety and accessibility features will be included throughout the project to enable a wide variety of disabled persons to gain access to as much of the project as possible. For example, fire alarms will be suitable for the hearing and sight impaired. 2.2.7 Responsiveness to neighborhood character and safety in respect to height, mass, architectural detail, landscaping and open space. The project contains over 60% open space, significantly more open space than required by the Code for multi-family housing in this zone. The height of the townhouses will be limited to three stories, no higher than other structures in the immediate area. The high level of architectural detail and landscaping plan for this project will enhance the character of the neighborhood. Exterior lighting will be well designed and located which should reduce the amount of transient activity in the area. 2.2.8 Number of units designed for home ownership. The Steelhead Townhouses are not designed for individual homeownership, and will be available for lease only. 2.2.9 Solicitation of comments from relevant neighborhood associations. The applicant did not submit comments from the West University Neighborhood Association. However, the F:\CMO\2007 Council Agendas\M071113\S071113D.doc applicant has contacted the West University Neighborhood Association and anticipates that the Association will consider this MUPTE application at their meeting on October 4, 2007. 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; th 2.4 Currently, there is a two-story, four-unit rental structure on the 534 East 14 property and a th two-story, four-unit rental structure on the 535 East 14 property; and 2.5 The owner has stated in the application and provided evidence that the project would not be feasible with the quantity and quality of sustainability features planned 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 August 31, 2007. The period for comment expired on September 30, 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 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 F:\CMO\2007 Council Agendas\M071113\S071113D.doc 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 Units. Art Carmichael 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 th 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 th Coho Townhouses 631 E. 14 Ave. 9 four-bedroom units Under construction 14 units Patterson Place 1360,1372 Patterson 2 two-bedroom, 6 three-bedroom, 4 four-2007 bedroom, 2 five-bedroom F:\CMO\2007 Council Agendas\M071113\S071113D.doc 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 F:\CMO\2007 Council Agendas\M071113\S071113D.doc ATTACHMENT D F:\CMO\2007 Council Agendas\M071113\S071113D.doc