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HomeMy WebLinkAboutResolution No. 4938 =~=- COUNCIL RESOLUTION NO. 4938 A RESOLUTION DENYING A MULTIPLE-UNIT PROPERTY TAX EXEMPTION FOR RESIDENTIAL PROPERTY LOCATED AT 693 EAST 16TH AVENUE, EUGENE, OREGON (COREY DEVELOPTMENT, LLC). PASSED: 4:3 REJECTED: OPPOSED: Clark, Pryor, Solomon ABSENT: Poling RECUSED: CONSIDERED: April 14, 2008 RESOLUTION NO. 4938 A RESOLUTION DENYING A MULTIPLE-UNIT PROPERTY TAX EXEMPTION FOR RESIDENTIAL PROPERTY LOCATED AT 693 EAST 16TH AVENUE, EUGENE, OREGON (COREY DEVELOPTMENT, LLC). The City Council of the City of Eugene finds that: A. Our Property Holdings One, LLC, is the owner of real property located at 693 East 16th Avenue, Eugene, Oregon, 97401, more particularly described on the attached Exhibit A. On April 18, 2007, the City of Eugene received an application submitted by Corey Development, LLC 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. On June 25, 2007, the City Council denied applicant's request for the property tax exemption. C. On January 7, 2008, David Corey submitted a revised application for Corey Development, LLC and requested that the Council reconsider its June 25, 2007 decision based on the redesigned project. The revised application proposes a smaller apartment complex than the complex proposed in the original application, and includes an updated income analysis for the property illustrating that construction of this project is not viable without the property tax exemption. D. A display ad soliciting recommendations or comments from the public was published in the Register-Guard on February 25, 2008, 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 in response to the ad. E. The Report and Recommendation attached as Exhibit B 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. F. The project consists of the development of two residential one-bedroom units, and five residential two-bedroom units, which are not designed for, nor will be used as, transient accommodations. Resolution - Page 1 08 Corey-Hilyard Reapp. MUPTE Denial Resol. (00196363) 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. Notwithstanding the above findings and the Report and Recommendation of the Director of the Planning and Development Department attached as Exhibit B, the City Council denies the application of Corey Development, LLC for an ad valorem property tax exemption under the City's Multiple-Unit Property Tax Exemption Program for the residential units to be constructed at 693 East 16th Street, Eugene, Oregon, and more particularly described on the attached Exhibit A. Section 2. The City Manager, or the Manager's designee, is requested to forward a copy of this Resolution to the applicants within ten days. Section 3. This Resolution shall become effective immediately upon its adoption. The foregoing Resolution adopted and effective the 14th day of April, 2008. ~~~~ / Ity Recorder Resolution - Page 2 08 Corey-Hilyard Reapp. MUPTE Denial Resol. (00196363) ~ Division of Chief Depuly Clerk Lane Counly Deeds and Records ~ ~~~1.~J~Jl~ 26.00 Title Order No. COURTESY 11111111111111111111111111111 11111111111111111111 $ Escrow No. COURTESY 00910775200700353100010018 After Recording Return To: OS/24/2007 03:27:3 Pacific NorthWest Title of Lane County, LLC RPR-DEED Cnl=1 Sln=15 CASHIER 06 $5.00 $11.00 $10.00 Name, Address, Zip Until a change is requested all tax statements shall be sent to the following address: Our Property Holdings One, LLC 3956 Mirror Pond Way Eugene, OR 97408 Name, Address, Zip 8 PM STATUTORY BARGAIN AND SALE DEED Our Property Holdings Two, LLC, Grantor, conveys to Our Property Holdings One, LLC, an Oregon limited liability company, Grantee, the following described real property: The South 110 feet of Lot 4 in Block I of R.F. SCOTT'S ADDITION to Eugene, as platted and recorded at Page 51 ov Vulume 2, Lane County Oregon Plat Records, in Lane County, Oregon. BEFORE SIGNING OR ACCEPTING THIS INSTRUMENT, THE PERSON TRANSFERRING FEE TITLE SHOULD INQUIRE ABOUT THE PERSON'S RIGHTS, IF ANY, UNDER ORS 197.352. THIS INSTRUMENT DOES NOT ALLOW USE OF THE PROPERTY DESCRIBED IN THIS INSTRUMENT IN VIOLATION OF APPLICABLE LAND USE LAWS AND REGULATIONS. BEFORE SIGNING OR ACCEPTING THIS INSTRUMENT, THE PERSON ACQUIRING FEE TITLE TO THE PROPERTY SHOULD CHECK WITH THE APPROPRIATE CITY OR COUNTY PLANNING DEPARTMENT TO VERIFY APPROVED USES, TO DETERMINE ANY LIMITS ON LAWSUITS AGAINST FARMING OR FOREST PRACTICES AS DEFINED IN ORS 30.930 AND TO INQUIRE ABOUT THE RIGHTS OF NEIGHBORING PROPERTY OWNERS, IF ANY, UNDER ORS 197.352. The true consideration for this conveyance is $0.00 to change vesting only. (Here comply with the requirements ofORS 93.030) Dated this May 23, 2007. . . '". . ~FTER RECORD1NG RETURN TO: PACIFIC NORTHWE51 ttTLE OF LANE COUNT'I. LLC 360 East 10th SL Suite 101 Eugen., OR 97401 STATE OF OREGON County of Lane 55 On this May 23, 2007, before me, the undersigned, personally appeared the within named David S. Corey, as Member, of Our Property Holdings Two, LLC known to me to be the identical individual who executed the within instrument and - - REPORT AND RECOMMENDATION of the Director of the Planning & Development Department Corey Development, LLC Multiple-Unit Property Tax Exemption The Director of the Planning & Development Department of the City of Eugene finds that: 1. Our Property Holdings One, LLC, is the owner of real property located at 693 East 16th Avenue, Eugene, Oregon, 97401, more particularly described on the attached Exhibit A. On April 18, 2007, the City of Eugene received an application submitted by Corey Development, LLC 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. 2. On June 25, 2007, the City Council denied applicant's request for the property tax exemption. 3. On January 7, 2008, David Corey submitted a revised application for Corey Development, LLC and requested that the Council reconsider its June 25, 2007, decision based on the redesigned project. The revised application proposes a smaller apartment complex than the complex proposed in the original application, and includes an updated income analysis for the property illustrating that construction of this project is not viable without the property tax exemption. 4. 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: 4.1 the City; The applicant has submitted all materials, documents and fees required by 4.2 Design elements that benefit the general public have been included in the project. The design elements consist of: 4.2.1 Sustainability features. Sustainability features of this project include: · Recycling of building materials from demolition of the buildings currently on the site, as well as job site waste from the new project. · Infill density is maximized to extent allowed, while maintaining neighborhood character. .Project located close to downtown, university, bike paths, and mass transit, minimizing the necessity to use automobiles. Exhibit B to Resolution No. 4938 -- Report and Recommendation - Page 1 4938 Ex. B (00196646) - Landscaping utilizes native species and drought resistant plants; topsoil will be preserved and reused on site. - Energy efficient windows are provided in each primary living space to maximize natural light and ventilation. - Individually controlled zone heat sources for each room will allow for room-by-room control. -Construction materials include: Engineered lumber is specified where practical; oriented strand board sub-flooring and sheathing; thermal mass flooring. -Use of exterior air infiltration barrier. -Use of energy efficient appliances and water heater. -Use of stormwater filtration and pretreatment prior to entering public stormwater system. -Use of water efficient plumbing fixtures. -Use of bathroom fans with timers. -Use of outdoor lights that are "night sky" friendly. -Low VOC paints and carpets will be specified. -On site recycling provided. -Covered parking area is open on one side for natural ventilation; entry ways to structure are on opposite side of. the building to reduce infiltration. 4.2.2 Responsiveness to adiacent historic structures. There are no adjacent historic structures. 4.2.3 Use of higher quality materials that contribute to longevity. Materials to be used in the proposed development which will contribute to longevity include, light colored "cool" asphalt roofing products with a 40-year life; composite or fiber cement style (hardi-plank type) siding. 4.2.4 Prominent entry facing the public street. The proposed development includes a prominent entry facing Hilyard Street which will showcase stone pillars and expanded front porch areas. 4.2.5 Number of units by which minimum density is exceeded or which incorporate three or more bedrooms to encourage families. The proposed development will exceed minimum density standards by four units. None of the units in the proposed development incorporate three or more bedrooms. 4.2.6 Number of available ADA accessible units. Twenty five percent of the units will be adaptable. 4.2.7 Responsiveness to neighborhood character and safety in respect to height. mass. architectural detaiL landscaping and open space. The proposed development is a two-story building, to be built on a concrete slab foundation with minimum ceiling heights and will be built in the Craftsman style, Exhibit B to Resolution No. 4938 -- Report and Recommendation - Page 2 4938 Ex. B (00196646) reminiscent of the historic homes built in Eugene in the early 1900s. Roof pitch is set to balance the fa~ade and enhance the period style architectural details. Height and mass has been minimized to the fullest extent possible. The height of the north- facing wall to the fascia board is 17 feet, and a hip roof eliminates the towering effect of a gable end. Additional investment will be put into porches, rail details, stone columns and trim details. Front porches provide gathering spaces and, given their proximity to the street and sidewalks, there will be less likelihood of vandalism. Tenants will be able to interact between themselves and the community via the open porches and balconies. Each space is provided with outdoor gathering space directly adjacent to the street. Trees, shrubs, and lawn area will further integrate the development with the neighborhood. The parking area will consist of seven spaces (exceeding the minimum required by the Code for this 12-bedroom complex) which will be shielded from public view. 4.2.8 Number of units designed for home ownership. None of the units are designed for individual ownership. 4.2.9 Solicitation of comments from relevant neighborhood associations. The applicant has notified West University Neighborhood Association of plans for development and the Association has gone on record as supporting the application as long as that the positive design features are retained. 4.3 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; 4.4 The site is currently occupied by a single family home built in 1905 and a duplex built in 1947. Both buildings are currently occupied by students. In June, 2006, the applicant notified Eugene Senior Planner Ken Guzowski of his intent to demolish the structures. The applicant plans to demolish the existing structures after donating them to the Eugene Fire Department for practice; and 4.5 The owner has stated in the application and provided evidence that the project would not be feasible without the tax exemption. The net operating income from this project is estimated at $50,660 per year, and the loan payment at $53,808 per year, which results in a negative cash flow of$3,148 per year. 5. A display ad soliciting recommendations or comments from the public regarding this project was published in the Register-Guard on February 25, 2008. The period for comment expired on March 26,2008. No comments were received in response to the ad. 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 Exemptions. I recommend that the application be approved. Exhibit B to Resolution No. 4938 -- Report and Recommendation - Page 3 4938 Ex. B (00196646) Dated this _ day of April, 2008. Director, Planning & Development Department, City of Eugene Exhibit B to Resolution No. 4938 -- Report and Recommendation - Page 4 4938 Ex. B (00196646)