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HomeMy WebLinkAboutResolution No. 5167 COUNCIL RESOLUTION NO. 5167 A RESOLUTION APPROVING A MULTIPLE-UNIT PROPERTY TAX EXEMPTION FOR RESIDENTIAL PROPERTY LOCATED AT 844 Olive STREET, EUGENE, OREGON (APPLICANT: GRANITE PROPERTIES LLC). PASSED: 4:3 REJECTED: OPPOSED: Brown, Taylor, Zelenka ABSENT: Evans CONSIDERED: July 27, 2016 RESOLUTION NO. 5167 A RESOLUTION APPROVING A MULTIPLE-UNIT PROPERTY TAX EXEMPTION FOR RESIDENTIAL PROPERTY LOCATED AT 844 Olive STREET, EUGENE, OREGON (APPLICANT: GRANITE PROPERTIES LLC). The City Council of the City of Eugene finds that: A. Granite Properties LLC (PO Box 50084, Eugene, Oregon, 97405) has entered into a Residential Real Estate Sale Agreement to purchase real property located at 844 Olive Street, -03-31-13, Tax Lot 4400) owned by EUGOR LLC (2320 OSU Drive, Newport, Oregon, 97365), and intends to purchase the southern half of Urban Renewal Agency owned property (approximately 2,000 square feet) that is directly west of 844 Olive Street (currently 17-03-31-13, Tax Lot 4200) collectively referred to as . B. Granite Properties LLC Multiple-Unit Property Tax Exemption Program (Sections 2.945 through 2.947 of the Eugene Code, 1971 ), with respect to residential units and commercial space to be constructed on the property. C. The proposed project consists of the development of 12 one-bedroom units and 24 studio units, for a total of 36 residential units. The ground floor will contain a total of approximately 5,730 square feet, of which 3,900 square feet is existing commercial space, and approximately 1,830 square feet is new construction (approximately 1,056 square feet for commercial space and the remaining to service the residential portion of the building). The project will also include the existing basement of 2,900 square feet. The project is not designed for the leasing of individual rooms or beds, or otherwise designed primarily for individuals attending college. D. An independent outside professional consultant was retained and reviewed the -forma. A Review Panel was convened and reviewed the independent ed the application in order to make a recommendation as to whether the application met the criteria in EC 2.946. E. the Executive Director of the Planning designee of the City Manager, has prepared the Report and Recommendation attached hereto as Exhibit A and incorporated herein by reference. The Report and Recommendation sets forth findings demonstrating that the project meets the criteria described in EC 2.946 and the conditions set forth in Multiple-Unit Housing Property Tax Exemption Rule R--. F. Based on the findings in the Report and Recommendation, the Executive Director recommends that the application be approved and the exemption granted. In making that Resolution - Page 1 of 5 recommendation, the Executive Director found that the applicant submitted all required materials, documents and fees as required in EC 2.945, EC 2.946, and Rule R-2.945, and the applicant is in compliance with the policies contained therein. G. City Council has concluded that the criteria described in EC 2.946 and Rule R- 2.945 have been met. 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 review of the Report and Recommendation of the Executive Director of the Planning and Development Department attached hereto as Exhibit A and incorporated herein by reference, the City Council approves the application of Granite Properties LLC for an ad valorem property tax iple-Unit Property Tax Exemption Program for the residential units to be constructed at 844 Olive Street, Eugene, Oregon (-03-31- 13, Tax Lot 4400) and the southern half of Urban Renewal Agency owned property (approximately 2,000 square feet) that is directly west of 844 Olive Street (currently part of Assess17- 03-31-13, Tax Lot 4200), subject to the following conditions: a. Compact Urban Development. The project will consist of the development of 12 one-bedroom units and 24 studio units, for a total of 36 residential units. The ground floor will contain a total of approximately 5,730 square feet of commercial space, of which 3,900 square feet is existing commercial space, and approximately 1,830 square feet is new construction (approximately 1,056 square feet for commercial space and the remaining to service the residential portion of the building). The project will also include the existing basement of 2,900 square feet. A schematic drawing showing the site plan and major features and dimensions of the proposed development, and a schematic drawing showing both a side and front elevation of the proposed development are attached to this Resolution as Exhibit B. b. Green Building. The project will perform at least 10% more efficiently than the performance established in the Oregon Energy Efficiency Specialty Code. Granite Properties LLC will demonstrating compliance with this requirement at permit application. Within 18 months after receiving a Certificate of Occupancy, the owner shall submit to the City a commissioning report pursuant to Section 1.2 of Rule R-945- C. For the duration of the tax exemption, the owner will report multi-family occupancy Resolution - Page 2 of 5 c. Local Economic Impact and Compliance with Laws. The owner submitted a plan for more than 50% of professional services and construction contracts be from a business organization or individual residing or doing business primarily in Lane County. After construction, Granite Properties will submit a list of the home city or zip code of the construction labor workers. The owner will ensure that qualified minority and women business enterprises have been given an equitable opportunity to compete for development related contracts by: (1) accessing lists of such enterprises from the Oregon State Office of Minority, Women and Emerging Small Business Program website; (2) search for Qualified Rehabilitation Facilities from whom to procure products and services via the Oregon State Qualified Rehabilitation Facilities Program website; and (3) advertise in general circulation, trade association, and minority focused media about prime subcontracting opportunities. The owner will have in place methods for ensuring that all contractors performing work are licensed and performing in compliance with state law. The owner contractors performing work on the project. Prior to performing work on the project, contractors must have valid, current licensing, insurance, bonding and workers compensation coverage, and be on the list of contractors provided to the City. The owner will require that each contractor provide an affidavit attesting to the fact that (1) the contractor, owner, or responsible managing individual for the contractor does not have any unpaid judgments for construction debt, including unpaid wages; and (2) the contractor is in compliance with Oregon tax laws. The owner English and Spanish on the job site during construction of the project. The project shall be in conformance with wage, tax and licensing laws. d. Moderate-Income Housing Contribution. At least 30% of the units included in the project will be moderate-income housing units. During the exemption period, the documentation to the City to evaluate compliance with moderate-income housing requirements that not less than 30% of the total units are moderate-income housing units. e. Project Design and Compatibility. The design elements include a ground floor with commercial storefronts wrapping into the alley, a cornice line above the storefront - doors in the alley and other openings, pronounced elevator shaft with glazing, Resolution - Page 3 of 5 residential units with large windows, and a series of canopies at each floor level. Building materials will include glass and stucco at the ground floor and fiber, cement, wood, stucco, and glass above. These design elements, as well as the actual square footages, reviewed at the time of approval of this application and included in Exhibit B shall be adhered to unless the City Manager approves a deviation from the plan pursuant to EC 2.946(2)(e)2. (See subsection i of this Section for information on the KLCC impact.) During the design process and before the final design drawings are completed, the owner shall hold at least one neighborhood engagement opportunity to allow members of the Downtown Neighborhood Association to provide comments on the After the final design is completed and before it is submitted for permits, the final design shall be submitted to the City to review for conformance with the design approved by Council resolution. In addition, the City shall allow the neighborhood an opportunity to review and comment on the final design. After the comment period, the City shall determine if the design is consistent with the requirements of this Resolution, and if not, whether the City Manager will approve a deviation pursuant to EC 2.946. f. 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 Chapter 195, 196, 197, 215, and 227. g. The project will be completed on or before January 1, 2022, unless an extension of the deadline is requested by the property owner and approved by Council resolution pursuant to EC 2.947(5). h. The public benefits of the project that will extend beyond the period of the tax exemption include Green Building (energy performance), Project Design and Compatibility, and Compact Urban Development. i. or the City of Eugene. Section 2. Subject to the conditions in Section 1 of this Resolution, 100% of the residential units and newly constructed commercial space described in Section 1 are declared exempt from local ad valorem property taxation beginning July 1 of the year following issuance of a Certificate of Occupancy 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 . Notwithstanding Section 2 above, the tax exemption shall not take effect unless or until closing occurs on the purchase of the property by Granite Properties LLC. Resolution - Page 4 of 5 40'-0" 40'-0" 40.00' EXISTING BACK WALL 40.00' VEHICLE ALLEY 8'-8"17'-8"13'-8" Exhibit B - Page 1 of 3 Exhibit B - Page 2 of 3 Exhibit B - Page 3 of 3