HomeMy WebLinkAboutItem 2C - Ext. Patterson MUPTE EUGENE CITY COUNCIL
AGENDA ITEM SUMMARY
Adoption of Resolution 4824 Extending the Completion Date for Construction of
Residential Units Granted a Multiple-Unit Property Tax Exemption Under
Resolution No. 4816 (Arthur C. Carmichael, Jr. and Larry Von Klein)
Meeting Date: February 14 2004 Agenda Item Number: 2C
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 an extension for the Multi-Unit Property Tax
Exemption (MUPTE) for "The Patterson House" at 979 Patterson.
BACKGROUND
Council Action History_
On December 6, 2004, the council approved a MUPTE for The Patterson House. The adopted
resolution reflected the current provision in the state statutes that require the projects to be completed for
occupancy by January 1, 2006. January 1, 2006, is when the current State enabling legislation for
MUPTE sunsets, unless the current legislature extends the program. (The legislature is likely to approve
that extension.) However, the State statute also allows participating jurisdictions to subsequently
approve a one-year extension for approved projects.
This project is actively proceeding toward construction and may break ground in June 2005. It can not
reasonably be expected to be complete for occupancy by January 1, 2006. Therefore, the applicant has
requested the allowed extension. The council's approval of the extension is immediately critical for the
financing of this development.
This action is being placed on the Consent Calendar because it is essentially a housekeeping item to
comply with State law. The project itself is not changing from what the council approved.
The council has a 26-year history of supporting tax exemptions to encourage new housing in the core
area.
Financial and/or Resource Considerations
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
L:\CMO\2005 Council Agendas\M050214\S0502142C.doc
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.
Timing
These extensions are critical if this project is to proceed. The applicant's proposed financing is
contingent on the exemption for the viability of the proposal.
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. 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.
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.
Jefferson/Far West Refinement Plan
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.
COUNCIL OPTIONS
Council may approve or deny the extension.
CITY MANAGER'S RECOMMENDATION
The City Manager recommends approving the resolution to grant the extension.
SUGGESTED MOTION
Move to adopt Resolution 4824 extending the completion date for construction of residential units
granted a Multiple-Unit Property Tax Exemption under Resolution No. 4816 (Arthur C. Carmichael, Jr.
and Larry Von Klein).
L:\CMO\2005 Council Agendas\M050214\S0502142C.doc
ATTACHMENTS
A. Resolution
FOR MORE INFORMATION
Staff Contact: Richie Weinman
Telephone: 682-5533
Staff E-Mail: richie.d.weinman~ci.eugene.or.us
L:\CMO\2005 Council Agendas\M050214\S0502142C.doc
ATTACHMENT A
RESOLUTION NO.
A RESOLUTION EXTENDING THE COMPLETION DATE FOR
CONSTRUCTION OF RESIDENTIAL UNITS GRANTED A MULTIPLE-
UNIT PROPERTY TAX EXEMPTION UNDER RESOLUTION NO. 4816.
(ARTHUR C. CARMICHAEL, JR. AND LARRY VON KLEIN).
The City Council of the City of Eugene finds that:
A. On December 6, 2004, the City Council adopted Resolution No. 4816 approving a
multiple-unit property tax exemption for the construction of residential units at 979 Patterson
Street, Eugene, Oregon. That Resolution required construction to be completed by January 1,
2006.
B. Subsection (5) of Section 2.947 of the Eugene Code, 1971 authorizes the Council
to extend the deadline for completion of construction of multiple-unit housing for an additional
12 consecutive months if it finds that the failure to complete construction by the time specified in
the resolution approving the tax exemption was due to circumstances beyond the control of the
owner, and that the owner had been acting in good faith and with due diligence.
C. Although the property owners, Arthur C. Carmichael, Jr. and Larry Von Klein,
expect to begin construction in June of 2005, they have advised that it is not likely that
construction of the residential units can be completed by January 1, 2006, and have requested an
extension to January 1, 2007. The Council finds that the property owners have been acting in
good faith and with due diligence, and the inability to meet the January 1, 2006 construction
deadline is due to circumstances beyond their control.
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 on the above findings which are adopted, Arthur C. Carmichael, Jr. and
Larry Von Klein are granted an extension to January 1, 2007, in which to complete construction
of the residential units for which a property tax exemption was granted under Resolution No.
4816 on December 6, 2004.
Section 2. The City Recorder is requested to forward a copy of this Resolution to Arthur
C. Carmichael, Jr. and Larry Von Klein, and to append a copy of this Resolution to Resolution
No. 4816.
Section 3. This Resolution shall become effective immediately upon its adoption.
The foregoing Resolution adopted and effective the __ day of ., 2005.
City Recorder
Resolution
L:\CMO\2005 Council Agendas\M050214\S0502142C-attA. doc