Loading...
HomeMy WebLinkAboutCC Minutes - 01/28/02 Meeting MINUTES Eugene City Council Regular Session City Council Chamber-City Ha11-777 Pearl Street January 28, 2002 8p.m. COUNCILORS PRESENT: Bonny Bettman, Betty Taylor, David Kelly, Nancy Nathanson, Scott Meisner, Gary Rayor, Gary Pap~. COUNCILORS ABSENT: Pat Fart. Mayor James D. Torrey called the regular session of the City Council to order at 8 pm. I.PUBLIC FORUM Richard Heniges, 1955 West 12th Avenue, reported that there was a new option for recovering addicts called "Recovery Woodworks." He said it was an opportunity for recovering addicts to develop good work habits, personal self esteem, and self worth. He said quality wood products would be produced and sold on the site to help sustain the program, but noted that they were always looking for donations. Terry Connolly, 1401 Willamette Street, spoke representing the Eugene Chamber of Commerce. He complimented the work of the Graffiti Task Force and remarked that good things happened when people joined together. He said the credit for the success of the task force went to the Eugene Police and Public Works departments. He added that the success of the program did a lot toward proving that Eugene was not unfriendly to business. Robert Cassidy, 1401 West 27th Avenue, expressed his opposition to any plan that would provide tax exemptions to Hynix. He opined that citizens of Eugene would have to take up the tax burden for non- residents who worked at Hynix. Rob Handy, 455-1/2 River Road, stressed that citizens were interested in the voting records of councilors. He also said that Bus Rapid Transit was needed in west Eugene to help fix traffic problems there. He remarked that the map included on a public notice that he had received from the Planning Division was difficult to understand. Zachary Vishanoff, 1312 Mill Street, said that Eugene's town identity was about historic preservation. Regarding graffiti, Mr. Vishanoff said that leaving a clean grey spot of paint covering old tagging was like leaving a fresh canvas for the next tagger. He suggested trying to match colors to the building when painting out graffiti. Councilor Meisner thanked Mr. Connolly for his testimony. He said the Graffiti Task Force was a great example of public/private and intergovernmental partnerships. MINUTES--Eugene City Council January 28, 2002 Page 1 Regular Session Councilor Kelly remarked that Recovery Woodworks was an encouraging idea but noted that Eugene's budget was shrinking and it would be difficult for the City to dedicate any funds to the program. Councilor Bettman suggested that departments submit their public notices to the Citizen Involvement Committee for approval before sending them out so that the committee could determine whether the notices were difficult to understand. II.CONSENT CALENDAR A. Approval of City Council Minutes: December 10, 2001 Work Session December 12, 2001, Work Session B. Approval of Tentative Working Agenda C. Approval of Whiteaker Community Council/Downtown Neighborhood Association Boundary D. Appointment to Judicial Evaluation Committee Councilor Kelly, seconded by Councilor Pap~, moved to approve the items on the Consent Calendar. Councilor Kelly pulled Item B. Councilor Bettman offered a change in wording to the minutes of December 10, 2001. On packet page 35, in the third sentence of the last paragraph she suggested changing "...and suggested staff find out..." with "...to expose staff to..." Councilor Kelly offered the following wording changes: In the minutes of the December 10, 2001, work session, on packet page 43 in the last paragraph change "...that the reason for the improvements went away..." to "...that much of the attraction of the Gateway Interchange commercial area went away..." In the same set of minutes on packet on page 44 in the first paragraph, Councilor Kelly asked to change the language to read; "If there were an additional 2,500 employees due to Peace Health, there could be serious problems, and the elected officials might challenge the environmental assessment." Roll call vote; the remaining items on the Consent Calendar passed unanimously. In response to a question from Councilor Kelly regarding a discussion of cell towers being listed on the tentative working agenda, City Manager Jim Johnson said the date would be in the following Thursday's packet. Councilor Taylor requested that no action be taken on items 4 and 5 of the March 11, work session since she would not be present. MINUTES--Eugene City Council January 28, 2002 Page 2 Regular Session Roll call vote; Item B of the Consent Calendar passed unanimously. III.PUBLIC HEARING AND POSSIBLE ACTION: An Ordinance Concerning Property Tax Exemptions for Multiple-Unit Housing; Amending Sections 2.945, and 2.947 of the Eugene Code, 1971; and Repealing Ordinance No. 20045 Richie Weinman, of the Planning and Development Department, said the multiple-unit property tax exemption was an incentive program for multiple unit housing, of five units or more, for either rental or home ownership. He said the exemption was a tool for increasing housing in the core downtown area of Eugene. He noted that the Downtown Plan, Growth Management Goals, the Greater Downtown Vision, and the current council vision and goals statement all called for increasing housing in the core downtown area. Mr. Weinman said the exemption offered would be for ten years. He said the land would still be taxed but the housing would be exempt for the specified time. He said this would "level the playing field" between less expensive "greenfield" property and more expensive core area property. He added that the ordinance would lift the current moratorium on accepting tax exemption applications. Mr. Weinman said, since the time of the adoption of the multiple-unit property tax exemption in the late 1970s, Eleven developments had been granted exemptions by the council for a total of 573 housing units. He noted that many of those were back on the tax roles because ten years had passed. He noted that, since the time that the moratorium was enacted, no new developments had taken place. Mr. Weinman said the Planning Commission had discussed the item earlier that day and had forwarded two requests to the council: 1. The Planning Commission requests that it act as a review body before applications are submitted to the City Council. 2. The Planning Commission requests that if the moratorium is lifted, the City Council remain open to revision of boundaries based on the results of the Downtown Plan update. In response to a question from Councilor Bettman regarding whether parking lots would be included in the exemption, Mr. Weinman said they would be exempt if the parking was integral to the development and the housing was connected. Councilor Bettman determined from Mr. Weinman that the definitions of Iow-income housing were consistent between the Residential Lands Study, the Metro Plan, and the ordinance. It was the same as the Housing and Urban Development samples. In response to a third question, Mr. Weinman indicated that a 20-unit housing project in the downtown benefit zone meeting all the qualifications would receive the full number of points and full exemption, which was $242,000 yearly. A unit not in the core area without accessible units would receive a $27,300 exemption annually. In response to a question from Councilor Meisner regarding whether School District 4J had been consulted since 1989 regarding the exemptions, Mr. Weinman said it had not. MINUTES--Eugene City Council January 28, 2002 Page 3 Regular Session Councilor Meisner opined that it would be valuable to consult with 4J again. City Manager Johnson noted that 4J had given its concurrence then and therefore it was not necessary to consult with them again, and that the school districts now received their funding from the State. In response to a question from Councilor Pap~ regarding whether other cities had similar exemptions, Mr. Weinman noted that Salem and Portland had similar exemptions. In response to a question from Councilor Pap~ regarding whether there were figures to support lifting the moratorium on property tax exemptions in the core area of downtown, Mr. Weinman reiterated his earlier statement that there had been no new development since the moratorium was enacted in 1996. He stressed that the idea of the ten-year property tax exemptions was to forgo revenue in the shod-term for increased revenue in the long-term. In response to a question from Councilor Nathanson regarding whether the developments would be supportive of transit, Mr. Weinman noted that the core area of Eugene's downtown was close to major bus lines and added that Eugene's exemption used the same requirements as the State definition. Councilor Nathanson raised concern that stimulating growth in the core area of Eugene's downtown might discourage housing rehabilitation elsewhere in the City. Mayor Torrey opened the public hearing. Terry Connolly, Eugene Chamber of Commerce, supported lifting the moratorium. He said it would be consistent with Eugene's stated growth management policies. He said the chamber supported the staff recommendation. Tom Slocum, 1950 Graham Street, supported the staff recommendation. He said it was important to the downtown area because otherwise it would be difficult for that area to compete with the rest of the city. He suggested that the application time be cut from 180 days to 120 days. Russ Brink, speaking for Downtown Eugene Incorporated, supported the staff recommendation. He urged quick action by the council and reiterated Mr. Weinman's earlier statement that no housing development had been done since the moratorium had been enacted in 1996. David Hinkley, 1350 Lawrence Street, supported the staff recommendation. He suggested that the Downtown Plan needed to be updated before allowing more exemptions and emphasized the importance of limiting projects to the downtown core area. He also remarked that it was too easy for developers to get the "points" needed for the exemption. Hugh Pritchard, 101 East Broadway, supported the staff recommendation. He stressed the importance of getting the support of local investors. John Belcher, Eugene Planning Commission, made himself available for questions from the council regarding the Planning Commission requests. MINUTES--Eugene City Council January 28, 2002 Page 4 Regular Session John Brown, 1760 Charnelton Street, supported the staff recommendation. He suggested dedicating fees to pay public safety costs for the tax-exempt areas. Mayor Torrey closed the public hearing. Councilor Rayor stressed the importance of protecting historic neighborhoods. Councilor Kelly acknowledged that revenue in the short term would be lost for a larger long term return. He supported the Planning Commission suggestions. In response to a question from Councilor Kelly regarding how the City would monitor developments that made the points for tax exemption maintained them for the entire ten years, Mr. Weinman said that each applicant would file a yearly report. Councilor Meisner supported the exemption for the core area of downtown but raised concern that the area recommended by staff was too large. He stressed the importance of having a "hard edge" for downtown. Councilor Bettman supported the exemption in the downtown core. She supported using a similar strategy in other nodal areas in the City. Councilor Pap8 and Councilor Nathanson supported the idea of cutting the application time from 180 days to 120. Councilor Taylor supported the exemption in the downtown core area. She reiterated Councilor Meisner's comments regarding a hard boundary for downtown and suggested that a specific percentage of new development be required to be Iow-income housing. She requested that action not be taken that evening. Mayor Torrey urged the council to take action that evening. Councilor Bettman said she also preferred more constrained boundaries for the downtown area. Councilor Kelly suggested a Planning Commission process for discussing downtown boundaries. City Manager Johnson asked the council to consider Council Bill 4782, an ordinance concerning property tax exemptions for multiple- unit housing; amending Sections 2.945 and 2.947 of the Eugene Code, 1971; and repealing Ordinance No. 20045. Councilor Kelly, seconded by Councilor PapS, moved that the bill, with unanimous consent of the council, be read a second time by Council Bill number only, and that enactment be considered at that time. Councilor Meisner, seconded by Councilor Rayor, moved to amend the motion by striking the language in Section 2.945(2) and adding the following: "...include the area generally bounded on the west by Lincoln Street, on the south by 13th Avenue, on the East by High Street, MINUTES--Eugene City Council January 28, 2002 Page 5 Regular Session and on the north by the Union Pacific Railroad tracks, as more particularly described in the standards and guidelines adopted..." Councilor Meisner noted that the Planning Commission would be taking up the issue of the Downtown Plan. He suggested that the process include discussion of extensions of the boundaries of the downtown area. Speaking to the audience, Councilor Rayor explained that the council was moving ahead on a multi-unit property tax exemption for the core area of downtown and postponing, temporarily, action that would include the surrounding Downtown Benefit Zone until its boundaries and point system could be determined. In response to a question from Councilor Pap8 regarding how fast staff could bring the issue for the Downtown Benefit Zone back to the council, City Manager Johnson said that would be contingent upon how fast the Downtown Plan update could be completed and approved. He estimated sometime between September and November. Roll call vote; the amendment passed unanimously. Roll call vote; the main motion, as amended, passed unanimously. City Manager Johnson asked the council to consider Council Bill 4782 by number only. Councilor Kelly, seconded by Councilor PapS, moved that the bill be approved and given final passage. The motion passed unanimously, and became Ordinance No. 20246. MINUTES--Eugene City Council January 28, 2002 Page 6 Regular Session IV. ACTION: Resolutions 4700, 4701, 4702, 4703, Regarding Low-Income Housing Tax Exemptions Councilor Kelly, seconded by Councilor Pap~, moved to approve Resolution 4700, a resolution approving a Iow-income rental housing property tax exemption for property located at 2725 Lone Oak Way, Eugene, Oregon (Tax Lot: 17-04-12-33-00503) (Metropolitan Affordable Housing Corporation - Greenleaf Village Development). In response to a question from Councilor Bettman regarding the revenue being forgone for each property, Mr. Weinman listed the following first year estimates: Mainstream Housing 8th Avenue property - $7,093 for the first year Oak Leaf Property- $13,654 Greenleaf Village - $71,143 Aurora Building - approximately $124,000 Mr. VVeinman noted that tax rates would change over time. Councilor Bettman said she would support all four resolutions but noted that those amounts were then multipled by 20 years. She said this showed Eugene's commitment to Iow-income housing. Councilor Nathanson requested an updated map of where the projects receiving an exemption were located. Councilor Pap~ expressed a hope that the City was considering integrating Iow-income housing into standard rental housing developments. Mr. Weinman indicated that it took a very large project to make that work, and the City had not done any projects approaching several hundred units. Mayor Torrey reiterated Councilor Bettman's comments and stressed Eugene's commitment to Iow-income housing. Roll call vote; the motion passed unanimously. Councilor Kelly, seconded by Councilor Pap~, moved to approve Resolution 4701, a resolution approving a Iow-income rental housing property tax exemption for property located at 205 Green Lane, Eugene, Oregon, (Tax Lot: 17-04-12-33-00301), (Metropolitan Affordable Housing Corporation - Oak Leaf Village Development). Roll call vote; the motion passed unanimously. Councilor Kelly, seconded by Councilor Pap~, moved to approve Resolution 4702, a resolution approving a Iow-income rental housing property tax exemption for a portion of the property located at 110, 128, 130, 136, and 146 East 11th Avenue, Eugene, Oregon, (Tax Lots: 17-03-31-41-10200 and 17-03-31-41-10300), (St. Vincent De Paul Society of Lane County -Aurora Building). Roll call vote; the motion passed unanimously. Councilor Kelly, seconded by Councilor Pap~, moved to approve Resolution 4703, a resolution approving a Iow-income rental housing property tax MINUTES--Eugene City Council January 28, 2002 Page 7 Regular Session exemption for property located 433 West 8th Avenue, Eugene, Oregon, (Tax Lot: 17-03-31-21-16300) (Mainstream Housing Incorporated). Roll call vote; the motion passed unanimously. V. ACTION: Resolution 4704, a Resolution of the City of Eugene, Oregon Authorizing Limited Tax Pension Bonds Councilor Kelly, seconded by Councilor Pap~, moved to approve Resolution 4704, a resolution of the City of Eugene, Oregon, authorizing limited tax pension bonds. In response to a question from Councilor Rayor regarding the amount of the bond, Ms. Cutsogeorge said the amount of the resolution was not specific. She said the amount would be whatever it took to cover the unfunded pension liability. She estimated $68 million. Roll call vote; the motion passed unanimously. The meeting adjourned at 9:50 pm. Respectfully submitted, James R. Johnson City Manager (Recorded by Joe Sams) MINUTES--Eugene City Council January 28, 2002 Page 8 Regular Session