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HomeMy WebLinkAboutResolution No. 4950 -=~=- COUNCIL RESOLUTION NO. 4950 A RESOLUTION APPROVING A MULTIPLE- UNIT PROPERTY TAX EXEMPTION FOR RESIDENTIAL PROPERTY LOCATED AT 693 EAST 16TH STREET, EUGENE, OREGON (COREY DEVELOPMENT, LLC/APPLICANT). PASSED: 5/4 REJECTED: OPPOSED: Bettman, Ortiz, Taylor, Zelenka ABSENT: RECUSED: CONSIDERED: July 14, 2008 RESOLUTION NO. 49S0 A RESOLUTION APPROVING A MULTIPLE-UNIT PROPERTY TAX EXEMPTION FOR RESIDENTIAL PROPERTY LOCATED AT 693 EAST 16TH STREET, EUGENE, OREGON (COREY DEVELOPMENT, LLC/ APPLI CANT). 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 in the attached Exhibit A ("the property"). B. 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 identified as the 16th & Hilyard Apartments ("the project") to be constructed on the property. C. On June 25, 2007, the City Council denied applicant's request for the property tax exemption. D. On January 7, 2008, the City of Eugene received a revised property tax exemption application submitted by Corey Development, LLC pursuant to the City's Multiple-Unit Property Tax Exemption Program. Mr. Corey requested that the Council reconsider its June 25, 2007 decision based on the redesigned proj ect. The revised application proposed a smaller apartment complex than the complex proposed in the original application, and included an updated income analysis for the property, illustrating that construction of the project would not viable without the property tax exemption. E. On April 14, 2008, the City Council denied applicant's revised request for the property tax exemption. F. On April 24, 2008, David Corey re-submitted Corey Development, LLC's revised application for the property tax exemption. This most recent application includes the identical project details and cost/income analysis as the application received by the City on January 7, 2008. G. A display ad soliciting recommendations or comments from the public was published in the Register-Guard on May 4, 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. Resolution - Page 1 08 Hilyard-Corey Reapp. #2 MUPTE Approval Resol. (00198924) H. 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. I. 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. 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 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 in the attached Exhibit A, subject to the following conditions: 1. The project shall consist of two residential one-bedroom units, and five residential two-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 7.2 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, 19710 Resolution - Page 2 08 Hilyard-Corey Reapp. #2 MUPTE Approval Resol. (00198924) 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 14th day of July, 2008. ~ Q ~V\ -fflJ-. City Recor er ..... Resolution - Page 3 08 Hilyard-Corey Reapp. #2 MUPTE Approval Resol. (00198924) Exhibit A The South 110 feet of Lot 4 in Block 1 ofR.F. SCOTT'S ADDITION to Eugene, as platted and recorded at Page 51 of V olume 2, Lane County Oregon Records, in Lane County Oregon. Subject Site: 693 E. 16th Corey Development, LLC EXHIBIT B 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 in the attached Exhibit A ("the property"). 2. 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 identified as the 16th & Hilyard Apartments ("the project") to be constructed on the property. 3. On June 25, 2007, the City Council denied applicant's request for the property tax exemption. 4. On January 7, 2008, the City of Eugene received a revised application submitted by Corey Development, LLC pursuant to the City's Multiple-Unit Property Tax Exemption Program. Mr. Corey requested that the Council reconsider its June 25, 2007 decision based on the redesigned project. The revised application proposed a smaller apartment complex than the complex proposed in the original application, and included an updated income analysis for the property, illustrating that construction of the project would not viable without the property tax exemption. s. OJ). April 14, 2008, the City Council denied applicant's revised request for the property tax exemption. 6. On April 24, 2008, David Corey re-submitted Corey Development, LLC's revised application for the property tax exemption. This most recent application includes the identical project details and cost/income analysis of the application received by the City on January 7, 2008. 7. 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: 7.1 the City; The applicant has submitted all materials, documents and fees required by REPORT AND RECOMMENDATION / Exhibit B to Resolution No.L.JqSO -- Page 1 of 4 08 Hilyard-Corey Reapp. #2 MUPTE R R - Ex. B (00198928).DOC 7.2 Design elements that benefit the general public have been included in the project. The design elements consist of: 7.2.1 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 ~ass transit, minimizing the necessity to use automobiles. - 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. - U se of stormwater filtration and pretreatment prior to entering public stormwater system. - U se 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. ' 7.2.2 Responsiveness to adiacent historic structures. There are no adjacent historic structures. 7.2.3 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. 7.2.4 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. 7.2.5 Number of units bv which minimum density is exceeded or which incorporate three or more bedrooms to encourage families. The proposed REPORT AND RECOMMENDATION / Exhibit B to Resolution No.495o -- Page 2 of 4 08 Hilyard-Corey Reapp. #2 MUPTE R R - Ex. B (00198928).DOC development will exceed minimum density standards by four units. None of the units in the proposed development incorporate three or more bedrooms. 7.2.6 Number of available ADA accessible units. Twenty five percent of the units will be adaptable. 7.2.7 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, reminiscent of the historic homes built in Eugene in the early 1900s. Roof pitch is set to balance the fayade 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. 7.2.8 Number of units designed for home ownership. None of the units are designed for individual ownership. 7.2.9 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. 7.3 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; 7.4 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 7.5 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. REPORT AND RECOMMENDATION / Exhibit B to Resolution No.LJCfSo-- Page 3 of 4 08 Hilyard-Corey Reapp. #2 MUPTE R R - Ex. B (00198928).DOC 8. A display ad soliciting recommendations or comments from the public regarding this project was published in the Register-Guard on May 4, 2008. The period for comment expired on June 3, 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 denials of prior applications for this project, including denial of an application identical to the application that is the subject of this Report and Recommendation, 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 4 of 4 08 Hilyard-Corey Reapp. #2 MUPTE R R - Ex. B (00198928).DOC