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HomeMy WebLinkAboutItem 7: MUPTE for Fenway Apartments ECC UGENE ITY OUNCIL AIS GENDA TEM UMMARY Action: Application for a Multiple-Unit Property Tax Exemption – The Fenway Meeting Date: July 14, 2008 Agenda Item Number: 7 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 or deny a resolution granting a Multiple-Unit Property Tax th Exemption (MUPTE) for The Fenway at 450 E. 14 Avenue in Eugene. BACKGROUND The Oregon legislature adopted the enabling statutes for the MUPTE program in 1975. This incentive was created as an implementation tool to complement the state land-use laws that were approved in 1973. The intent was to “stimulate the construction of rental housing in the core areas of Oregon’s urban centers…” In July 1977, the City Council adopted the provisions through a resolution that included “. . . to complement the Eugene Community Goals and Polices adopted in 1974 which stated that ‘High density dwellings should be encouraged close-in to accommodate those people who prefer to live near the center of activity’…” Since that time, both the state statutes and Eugene’s implementation of them have been amended. For instance, multi-family ownership is now allowed in addition to rental housing. Most recently, the council amended Eugene’s regulations and boundary in April 2004. The Fenway is located in the West University Neighborhood. The property is zoned R-3 and the development is an outright use. The property currently has two houses on it. The front house will be retained and rehabilitated and the back house will be removed to make room for this project. In April, the council denied a MUPTE request for this project. The proposed project is not substantially different but has since been altered. The existing four-bedroom house is remaining on the site but is being moved closer to the street. The new building in the rear will have one additional housing unit – a total of seven units rather than six. Public Comments A display ad was placed in the Register Guard on June 1, 2008. Comments were requested for a 30-day period. No comments were received. The West University Neighborhood received a presentation about the project and endorsed the MUPTE application. Their letter is provided as Attachment F. 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. Z:\CMO\2008 Council Agendas\M080714\S0807147.doc Sustainability features: ·The Fenway is within walking distance of a wide range of shopping opportunities and other services and is ideally located for foot or bike commuting to the U of O, PeaceHealth, Northwest Christian College and the proposed OHSU medical training center. ·High efficiency, low emissivity coated windows in vinyl frames for minimum heat transfer. ·Traditional attic roof construction for gravity ventilation of heat build-up, hip roof eaves for shade. ·Glazing area for excellent day lighting, south and west windows for solar insulation in winter months, highly efficient insulation and weatherization. ·Time clock and occupancy sensors in parking area to control efficient fluorescent light. Photocell exterior lights in common areas. Metered utilities for each unit. ·Majority of parking under living units reduces “heat island” effect. ·Construction waste kept to minimum and recycled. Convenient tenant recycling area. ·Architectural interest and contextual compatibility in building design. Larger interior yard set backs maintained. Primary residence renovation to maintain current streetscape appearance. ·Cabinets, doors, and trim pre-finished offsite; more operable window area than required by Code to enhance indoor air quality; exhaust fans with timers to reduce moisture problems. ·Washers and dryers included in units reduce travel to laundromats. ·Landscaping with plants selected for low water usage, ease of maintenance and aesthetic considerations, including many native plants, on all sides of building. Responsiveness to adjacent historic structures: There are no adjacent historic structures. However, one house on front of the lot will be retained and the overall form of the building will honor neighboring residential structures. Use of higher quality materials that contribute to longevity: The Fenway will use high quality, 40-year plus rated roof shingles; Hardi brand cementitious exterior siding; vinyl windows; concrete parking area. A 100-year or longer life is anticipated for the building. th Prominent entry facing the public street: The existing house facing East 14 Street is being retained. All entrances of new building will be at grade level on the west side for security and fire safety. 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 a full-size house in the front and a small building in back that was Z:\CMO\2008 Council Agendas\M080714\S0807147.doc likely a garage at one time but is in substandard condition and has minimal value. The front house will remain and be rehabilitated. The back of the property is currently paved and graveled. The total current property taxes are $3,816. This is projected to remain on the tax rolls during the entire exemption period and there will be no current revenue that is lost. Staff has determined that that construction of this housing development, as presented, would not be financially feasible without the benefit of the tax exemption. The pro-forma that was submitted demonstrates that point. The annual exemption amount is estimated at $16,488 or $164,880 over ten years. Timing This application was submitted on May 20, 2008. 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. City Council consideration is currently within the first 90-day time period. 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 home ownership. Three of the City’s Growth Management Policies do 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. 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. COUNCIL OPTIONS The council may approve the exemption, deny the exemption, or may delay approval in order to request additional information from the developer to determine that a satisfactory public benefit has been met. CITY MANAGER’S RECOMMENDATION The City Manager recommends denial of the exemption, based on past council action. Z:\CMO\2008 Council Agendas\M080714\S0807147.doc SUGGESTED MOTION Move to adopt a resolution denying a multiple-unit property tax exemption for residential th property located at 450 East 14 Avenue, Eugene, Oregon (Twenty LLC, applicant-owner). ATTACHMENTS A. Resolution approving a property tax exemption for The Fenway B. Resolution denying a property tax exemption for The Fenway C. Report from the Planning and Development Director D. History of granted multi unit tax exemptions in Eugene E. Current Photos of the property F. Public Comments Note: The full application will be placed in the council office for review. This includes images of the proposed development. FOR MORE INFORMATION Staff Contact: Richie Weinman Telephone: 682-5533 Staff E-Mail: richie.d.weinman@ci.eugene.or.us Z:\CMO\2008 Council Agendas\M080714\S0807147.doc ATTACHMENT A RESOLUTION NO. _____ A RESOLUTION APPROVING A MULTIPLE-UNIT PROPERTY TAX EXEMPTION FOR RESIDENTIAL PROPERTY LOCATED AT 450 EAST TH 14 AVENUE, EUGENE, OREGON (TWENTY LLC, APPLICANT- OWNER). The City Council of the City of Eugene finds that: th A. Twenty LLCis the owner of real property located at 450 East 14 Avenue, Eugene, Oregon, more particularly described in the attached Exhibit A (“the property”). B. In February of 2008, Twenty LLC 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 identified as The Fenway (“the project”) to be constructed on the property. C. On April 14, 2008, the City Council denied applicant’s request for the property tax exemption. D. On or about May 27, 2008, the City of Eugene received a revised application submitted by Twenty, LLC, pursuant to the City’s Multiple-Unit Property Tax Exemption Program. The revised application updated the project’s cost/income analysis, proposed a larger building, added one unit, altered unit configurations to diversify the number of bedrooms, and moved the house located on the property forward on the lot. E. A display ad soliciting recommendations or comments from the public was published in the Register-Guard on June 1, 2008, and advised that written comments would be accepted for a period of 30 days from the date of publication. No comments were received in response to the ad. Recommendations or comments were also solicited from the Planning Commission, and other interested City departments, agencies, and neighborhood groups. F. 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 revised 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. G. The project consists of the development of one residential two-bedroom unit, two residential three-bedroom units, two residential four-bedroom units, and two residential five- bedroom units, which are not designed for, nor will be used as, transient accommodations. Resolution – Page 1 of 2 08 Fenway-Twenty Reapp. #1 MUPTE Approval Resol. (00198935) 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 May 27, 2008 application of Twenty LLC for an ad valorem property tax exemption under the City’s Multiple-Unit Property th Tax Exemption Program for the residential units to be constructed at 450 East 14 Avenue, Eugene, Oregon, and more particularly described in the attached Exhibit A, subject to the following conditions: 1. The project shall consist of one residential two-bedroom unit, two residential three-bedroom units, two residential four-bedroom units, and two residential five-bedroom units, 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 5.2 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, 2009. Section 4. This Resolution shall become effective immediately upon its adoption. The foregoing Resolution adopted and effective the ____ day of July, 2008. ___________________________________ City Recorder Resolution – Page 2 of 2 08 Fenway-Twenty Reapp. #1 MUPTE Approval Resol. (00198935) ATTACHMENT B RESOLUTION NO. _____ A RESOLUTION DENYING A MULTIPLE-UNIT PROPERTY TAX EXEMPTION FOR RESIDENTIAL PROPERTY LOCATED AT 450 EAST TH 14 AVENUE, EUGENE, OREGON (TWENTY LLC, APPLICANT- OWNER). The City Council of the City of Eugene finds that: th A. Twenty LLCis the owner of real property located at 450 East 14 Avenue, Eugene, Oregon, more particularly described in the attached Exhibit A (“the property”). B. In February of 2008, Twenty LLC 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 identified as The Fenway (“the project”) to be constructed on the property. C. On April 14, 2008, the City Council denied applicant’s request for the property tax exemption. D. On or about May 27, 2008, the City of Eugene received a revised application submitted by Twenty, LLC, pursuant to the City’s Multiple-Unit Property Tax Exemption Program. The revised application updated the project’s cost/income analysis, proposed a larger building, added one unit, altered unit configurations to diversify the number of bedrooms, and moved the house located on the property forward on the lot. E. A display ad soliciting recommendations or comments from the public was published in the Register-Guard on June 1, 2008, and advised that written comments would be accepted for a period of 30 days from the date of publication. No comments were received in response to the ad. Recommendations or comments were also solicited from the Planning Commission, and other interested City departments, agencies, and neighborhood groups. F. 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 revised 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. G. The project consists of the development of one residential two-bedroom unit, two residential three-bedroom units, two residential four-bedroom units, and two residential five- bedroom units, which are not designed for, nor will be used as, transient accommodations. Resolution – Page 1 of 2 08 Fenway-Twenty Reapp. #1 MUPTE Denial Resol. (00198954) 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 May 27, 2008 application of Twenty LLC for an ad valorem property tax exemption under the City’s Multiple-Unit Property Tax Exemption Program for the residential th units to be constructed at 450 East 14 Avenue, Eugene, Oregon, and more particularly described in 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 ____ day of July, 2008. ___________________________________ City Recorder Resolution – Page 2 of 2 08 Fenway-Twenty Reapp. #1 MUPTE Denial Resol. (00198954) ATTACHMENT C REPORT AND RECOMMENDATION of the Director of the Planning & Development Department Twenty LLC Application for Multiple-Unit Property Tax Exemption The Director of the Planning & Development Department of the City of Eugene finds that: th 1. Twenty LLCis the owner of real property located at 450 East 14 Avenue, Eugene, Oregon, more particularly described in the attached Exhibit A (“the property”). 2. In February of 2008, Twenty LLC 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 identified as The Fenway (“the project”) to be constructed on the property. 3. On April 14, 2008, the City Council denied applicant’s request for the property tax exemption. 4. On or about May 27, 2008, the City of Eugene received a revised application submitted by Twenty, LLC, pursuant to the City’s Multiple-Unit Property Tax Exemption Program. The revised application updated the project’s cost/income analysis, proposed constructing a larger building, added one unit, altered unit configurations to diversify the number of bedrooms, and moved the house located on the property forward on the lot. 5. I have reviewed the revised 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: 5.1 The applicant has submitted all materials, documents and fees required by the City; 5.2 Design elements that benefit the general public have been included in the project, which consist of: 5.2.1 Sustainability features. •The Fenway is within walking distance of a wide range of shopping opportunities and other services and is ideally located for foot or bike commuting to the U of O, PeaceHealth, Northwest Christian College and the proposed OHSU medical training center. •High efficiency, low emissivity coated windows in vinyl frames for minimum heat transfer. REPORT AND RECOMMENDATION / Exhibit B to Resolution No. ____ -- Page 1 of 3 08 Fenway-Twenty Reapp. #1 MUPTE R R - Ex. B (00198949).DOC •Traditional attic roof construction for gravity ventilation of heat build-up, hip roof eaves for shade. •Glazing area for excellent day lighting; south and west windows for solar insulation in winter months; highly efficient insulation and weatherization. •Time clock and occupancy sensors in parking area to control efficient fluorescent light. Photocell exterior lights at common areas. Metered utilities for each unit. •Majority of parking under living units reduces “heat island” effect. •Construction waste kept to minimum and recycled. Convenient tenant recycling area. •Architectural interest and contextual compatibility in building design. Larger interior yard set backs maintained. Existing four-bedroom house renovation to maintain current streetscape appearance. •Cabinets, doors, and trim prefinished offsite, and more operable window area than required by Code to enhance indoor air quality. Exhaust fans with timers to reduce moisture problems. •Washers and dryers included in units reduce travel to laundromats. •Landscaping with plants selected for low water usage, ease of maintenance and aesthetic considerations, including many native plants, on all sides of building. 5.2.2 Responsiveness to adjacent historic structures. There are no adjacent historic structures. However, form of the building will honor the forms of residential structures. House on front of lot will be retained. 5.2.3 Use of higher quality materials that contribute to longevity. The Fenway will use high quality, 40-year plus rated roof shingles; Hardi brand cementitious exterior siding; vinyl windows; concrete parking area. A 100-year or longer life is anticipated for the building. 5.2.4 Prominent entry facing the public street. The existing house facing th East 14 Street is being retained. All entrances of the new building will be at grade level on the west side for security and fire safety. 5.2.5 Number of units by which minimum density is exceeded or which incorporate three or more bedrooms to encourage families. The Fenway will have 7 units. In the R3 zone, this site is allowed to have a minimum of 5 units and a maximum of 14 units. Therefore, minimum density is exceeded by two units. Six of the seven units incorporate three or more bedrooms. 5.2.6 Number of available ADA accessible units. No units will be ADA accessible. 5.2.7 Responsiveness to neighborhood character and safety in respect to height, mass, architectural detail, landscaping and open space. Setbacks have been exceeded, roofs hipped, and exterior materials, hips, gables, entry porches, covered balconies, residential style doors and windows, all serve to provide resonance with the neighborhood’s residential character. Allowable height in the REPORT AND RECOMMENDATION / Exhibit B to Resolution No. ____ -- Page 2 of 3 08 Fenway-Twenty Reapp. #1 MUPTE R R - Ex. B (00198949).DOC R3 zone is 50 feet; The Fenway will be about 36 feet tall. The Fenway will include: well-lit parking area and entryways, private entry door at grade level, no entries facing the alley, and locked rooms for bicycle storage. The building is equipped with fire sprinklers. 5.2.8 Number of units designed for home ownership. No units are designed for home ownership. 5.2.9 Solicitation of comments from relevant neighborhood associations. By letter dated February 11, 2008, Deborah Healey, Chair of the West University Neighbors stated that, by unanimous vote of the Executive Board and membership, the WUN supported the use of MUPTE funding for this project as long as the design features remain in the project. On May 1, 2008, the revised project plan was presented to the WUN and, again, they unanimously supported the project. 5.3 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; 5.4 Currently, there are two structures on the site. The four-bedroom house th facing 14 Street will be retained and moved forward on the lot. The small one bedroom house on the alley will be demolished; and 5.5 The owner has stated in the application and provided evidence that the project as proposed, including the quality and quantity of sustainability features planned, would not be feasible without the tax exemption. 6. A display ad soliciting recommendations or comments from the public regarding this project was published in the Register-Guard on June 1, 2008. The period for comment expired on July 1, 2008. No comments were received in response to the ad. Therefore, based upon the above findings, and in consideration of the City Council’s previous denial of applicant’s substantially similar prior application, I recommend that the application be denied. Dated this _____ day of _____________________________, 2008. _________________________________ Director, Planning & Development Department, City of Eugene REPORT AND RECOMMENDATION / Exhibit B to Resolution No. ____ -- Page 3 of 3 08 Fenway-Twenty Reapp. #1 MUPTE R R - Ex. B (00198949).DOC ATTACHMENT D MULTI-UNIT 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 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. 701 & 725 E. 14th Ave. 1357 53 units 1995 Hilyard House & 1377 Hilyard 44 Two-Bedroom Units; 9 One-Bedroom Units. Pairadice Apts 640 E. 15th Avenue 30 units 1996 6 Studio; 8 One-Bedroom Units; 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 th Coho Townhouses 631 E. 14 Ave. 9 four-bedroom units 2007 NAMEADDRESSNUMBER OF UNITSYEAR APPROVED 14 units 2007 Patterson Place 1360,1372 Patterson 2 two-bedroom, 6 three-bedroom, 4 four- bedroom, 2 five-bedroom Steelhead 2007 534,535 E. 14th9 rental Townhouses Under 8 four- bedroom, 1 five-bedroom Construction Eugene Downtown 2007 990 Lincoln24 ownership Cohousing In advanced 2 one-bedroom units, 10 two-bedroom planning units, 11 three bedroom units, and 1 four- bedroom unit. 7 rental (tentative) PENDING REQUESTS NAME ADDRESS NUMBER OF STATUS COUNCIL UNITS ACTION th 16 and Hilyard Apts. 693 E. 16th 7 rentals (2 one-Advertised on May 4, Previously denied (Corey Development LLC - bedroom, 5 two-Public comment period and now re- David Corey) bedroom)? ends on June 3, 2008 submitted. Scheduled for July 14, 2008 th The Fenway 450 E. 14. 7 rentals (1 one-Advertised June 1. Previously denied bedroom, 2 two-Comment period ends and now re- bedroom, 2 four- on July 1. submitted. bedroom, 2 five-Scheduled for July bedroom) 14, 2008 th North Park Apartments 14 and Hilyard, 40 rentals (6 studios, Advertised on May 18. Scheduled for July NW Corner 16 one-bedroom, 18 Comment period ends 14, 2008 two-bedroom) on June 20th. Additional Downtown Housing Tax Exemptions (not MUPTE) Lincoln School 58 units Historic Exemption (15 years) Tiffany Building 28 units Historic Exemption (15 years) Aurora Building 54 units Low-income Exemption (20 years) th WestTown on 8 102 units Low-Income Exemption (20 years) Updated: June 4, 2008 ATTACHMENT E Photo of Property Z:\CMO\2008 Council Agendas\M080714\S0807147.doc