HomeMy WebLinkAboutItem 2G: Resolution Granting Multi-Unit Property Tax Exemption (Coho)
ECC
UGENE ITY OUNCIL
AIS
GENDA TEM UMMARY
Adoption of Resolution 4902 Approving a Multiple-Unit Property Tax Exemption for
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Residential Property Located at 631 East 14 Avenue, Eugene, Oregon (FIDN, LLC)
Meeting Date: January 22, 2007 Agenda Item Number: 2G
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 a resolution granting a Multi-Unit Property Tax Exemption
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(MUPTE) for Coho Townhouses at 631 E. 14 Avenue in Eugene.
BACKGROUND
The council has a 29-year history of supporting tax exemptions under this program to encourage new
housing in the core area. In April 2004, the council amended the MUPTE program regulations and
boundary.
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This project is proposed to be built on the 631 E. 14 Avenue, which is zoned R-3 high density
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residential. It is located on the north side of E. 14 between Hilyard and Patterson. There is currently a
single-story duplex on the property. It is a structure that was built in the 1940s with lower cost building
materials. It was moved to this site in the 1960s. The developer followed the required procedures and
properly informed the City of the intent to remove the existing structure. This structure is not designated
as historic.
Citizen Comments
The developer met with the West University Neighbors and reviewed the project plans. The West
University Neighbors wrote a letter of support for the MUPTE application. They noted that they were
impressed with the quality of the design, including energy efficiency, sloped roofs, porches, and covered
bicycle parking.
Two other letters came in as comments on the MUPTE application. All three letters are included in
Attachment F. Both were opposed to the concept of offering tax exemptions as an incentive for new
housing development.
Design Features
Consistent with the council’s stated interests as part of the adopted MUPTE Standards and Guidelines,
this application proposes housing that increases density in the core area and provides new housing using
higher grade materials. The proposed housing involves two three-story buildings. There will be a total
of nine housing units, each with four bedrooms.
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The project developer, Dan Neal, appears to be very committed to sustainable practices. Coho
Townhouses is being designed by architect Richard Shugar and to be constructed by Essix Construction,
two firms with significant experience in sustainable building. The development will feature a variety of
elements including the use of fiberglass instead of vinyl windows, greater reliance on natural light, and
landscaping with native species. Since the application was submitted to the City, the project has been
refined even further. Mr. Neal reports that additional sustainable features include: 1) installing solar
photovoltaic panels to generate electricity for the property and to go into the EWEB grid; 2) use of
Marmoleum, a sustainable product, for kitchen and bathroom floors; 3) carpeting with recycled
materials as backing; 4) specifying the use of paints with no VOC's (volitale organic compounds); 5) use
of many building materials made of medium density fiberboard such as interior doors and cabinets, and
cabinets that are formaldehyde free; 6) use of Hardi Plank exterior siding, which is made cement
fiberboard; 7) treating the stormwater on-site; and 8) use of medium density fiberboard baseboards.
The developers have recognized the need for open space in the dense West University Neighborhood.
The project contains 60% open space on the site. The project is three stories tall and the proposal
indicates this will not dwarf adjacent structures. It is shorter than the PeaceHealth parking garage across
the alley to the north and a similar height to the Parkside Place apartments now under construction
across the street, south of West University park.
Impact of Tax Exemptions
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 underdeveloped, based on the zoning.
The land continues to be taxed during the exemption period. The improvements will bring substantial
revenue, after ten years, beyond what is currently being collected.
RELATED CITY POLICIES
MUPTE is enabled by state statute. The City of Eugene has participated in the MUPTE program since
1978. Since that time, all 14 requests have been approved (Attachment D) by the City Council.
Encouraging housing in the core area is consistent with numerous adopted planning and policy
documents. Examples include:
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.
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COUNCIL OPTIONS
The council may approve the exemption, deny the exemption or may delay approval in order to request
additional information of the developer to determine that a satisfactory public benefit has been met.
CITY MANAGER’S RECOMMENDATION
The City Manager recommends approving the resolution to grant the exemption.
SUGGESTED MOTION
Move to adopt Resolution 4902 approving a Multiple-Unit Property Tax Exemption for residential
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property located at 631 East 14 Avenue, Eugene, Oregon (FIDN, LLC).
ATTACHMENTS
A. Resolution approving a property tax exemption for Coho Townhouses
B. Report from the Planning and Development Director
C. History of granted multi unit tax exemptions in Eugene
D. Images of existing conditions
E. Images of proposed development
F. Comment letters
FOR MORE INFORMATION
Staff Contact: Richie Weinman
Telephone: 682-5533
Staff E-Mail: Richie.d.weinman@ci.eugene.or.us
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ATTACHMENT A
Deleted:
¶
RESOLUTION NO. ______
A RESOLUTION APPROVING A MULTIPLE-UNIT PROPERTY TAX
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EXEMPTION FOR RESIDENTIAL PROPERTY LOCATED AT 631 EAST 14
AVENUE, EUGENE, OREGON (FIDN, LLC).
The City Council of the City of Eugene finds that:
A.
FIDN, LLC, is the owner of real property located at 631 East 14th Avenue, Eugene,
Oregon, 97401, more particularly described on the attached Exhibit A, and has 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 to be constructed on the property.
B.
A display ad soliciting recommendations or comments from the public was published in
the Register-Guard on December 10, 2006, and advised that written comments would be accepted for a
period of 30 days from the date of publication. Recommendations or comments were also solicited from
the Planning Commission, and other interested City departments, agencies, and neighborhood groups.
Comments received from the solicitation, along with staff’s responses, are set forth in 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.
C.
The Director’s Report and Recommendation to the Council 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.
D.
The project consists of the development of nine residential four-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 FIDN, LLC for an ad valorem property tax
exemption under the City’s Multiple-Unit Property Tax Exemption Program for the residential units to
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be constructed at 631 East 14 Avenue, Eugene, Oregon, and more particularly described on the
attached Exhibit A, subject to the following conditions:
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1.
The project shall consist of nine residential four-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 2.2 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, 2007.
Section 4.
This Resolution shall become effective immediately upon its adoption.
The foregoing Resolution adopted and effective the ______ day of January, 2007.
___________________________________
City Recorder
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ATTACHMENT B
REPORT AND RECOMMENDATION
of the
Director of the Planning & Development Department
FIDN, LLC
Multiple-Unit Property Tax Exemption
The Director of the Planning & Development Department of the City of Eugene finds that:
1.
FIDN, LLC is the owner of real property located at 631 East 14th Avenue, Eugene,
Oregon, 97401, and more particularly described in Exhibit A attached to the Resolution approving this
tax exemption. FIDN, LLC has submitted an application pursuant to the City’s Multiple-Unit Rental
Housing Property Tax Exemption Program (Section 2.945 and 2.947 of the Eugene Code, 1971) with
respect to the residential units to be constructed on the real property.
2.
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:
2.1 The applicant has submitted all materials, documents and fees required by the
City;
2.2 Design elements that benefit the general public have been included in the project,
which consist of:
2.2.1 Sustainability features. Sustainability features of this project include:
•Use of fiberglass windows rather than windows constructed from vinyl.
•Reliance on natural lighting.
•Landscaping features that use native species which will reduce the need
for fertilizers, herbicides and pesticides.
•Possible use of solar electric system that uses mono-crystalline modules
to generate electricity for the site in cooperation with EWEB.
•Hiring of an architect and general contractor with expertise in the area of
sustainability.
2.2.2 Responsiveness to adjacent historic structures. There are no adjacent historical
structures. The building currently on the property is over 50 years old, but according to
City of Eugene Senior Planner Ken Guzowski, is not a historic structure.
2.2.3 Use of higher quality materials that contribute to longevity. The exterior design
of the Coho Townhouses includes the integrated usage of three different compatible
siding materials including: wood frame construction, fiberglass windows, and siding of
wood, cement board and corrugated metal. The interiors will feature granite countertops
along with many other high quality finishes which are reflected in items such as
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cabinetry, floor coverings, and light fixtures. The bicycle storage area will be unique,
functional, attractive, secure, and will have a roof to protect bicyclists from the elements
when they are getting their bicycles in and out of storage.
2.2.4 Prominent entry facing the public street. The Coho Townhouses will have a
distinctive and prominent entry. Rather than the construction of one large, box-shaped
structure, the Coho Townhouses will be comprised of two smaller buildings located
perpendicular to one another.
2.2.5 Number of units by which minimum density is exceeded or which incorporate
three or more bedrooms to encourage families. Because all nine of the Coho Townhouse
units will have four bedrooms, they are well suited to families. Marketing of the
townhouses will focus on families such as university or hospital employees who might
find it desirable to live close to their employment and across the street from the new West
University Park. Increasing the density in this area will assist in creating additional
housing close to the urban core.
2.2.6 Number of available ADA accessible units. The units will have unlimited ADA
accessibility in the open spaces and on the first floor of each townhouse. The upper
floors are only accessible by stairs, however, safety and accessibility features will be
included throughout the project to enable a wide variety of disabled persons to gain
access to as much of the project as possible.
2.2.7 Responsiveness to neighborhood character and safety in respect to height, mass,
architectural detail, landscaping and open space. The project contains over 60% open
space, significantly more than required by the Code and, therefore, helps to achieve the
goal of maximizing livability. The height of the townhouses will be limited to three
stories, no higher than the large apartment building currently under construction across
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14 Avenue from this project. The Coho Townhouses will be lower in height than the
parking garage located across the alley, and much lower than the nearby hospital and
closest university building. The high level of architectural detail and landscaping plan for
this project will enhance the character of the neighborhood. Safety will be improved due
to suitably designed and located exterior lighting, thus reducing the amount of transient
activity in the area.
2.2.8 Number of units designed for home ownership. The Coho Townhouses are not
designed for individual homeownership, but will be available for lease.
2.2.9 Solicitation of comments from relevant neighborhood associations. The West
University Neighborhood Association has gone on record as supporting this project, but
have a concern about parking. By letter dated November 7, 2006, Deborah Healey, WUN
Chair, stated in part: “We are very pleased with the design, but our main concerns
revolve around parking. There will be only 9 parking spaces, at most, for what is likely
to be well over 20 people with cars, given the statistics about car ownership among
university students. Mr. Neal has offered to look for additional parking areas that tenants
might be able to rent; we feel this is essential to the success of this project, given the
difficulty in parking now in that area.”
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2.3 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;
2.4 Currently on the property is a single story duplex which is currently being rented;
and
2.5 The owner has stated in the application and provided evidence that the project
would not be feasible without the tax exemption.
3.
A display ad soliciting recommendations or comments from the public regarding this
project was published in the Register-Guard on December 10, 2006. The period for comment
expired on January 9, 2007. No comments were received.
Therefore,
based upon the above findings, the project is in conformance with all applicable local
plans and provisions of the Eugene Code, 1971, planning regulations, the Metropolitan Area General
Plan, and the criteria set forth in the City’s adopted Standards and Guidelines for Multiple-Unit Housing
Property Tax Exemption, and I recommend that the application be approved.
Dated this _____ day of January, 2007.
_________________________________
Director, Planning & Development
Department, City of Eugene
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ATTACHMENT C
MULTI-UNIT HOUSING PROPERTY TAX EXEMPTION PROGRAM HISTORY
DEVELOPER or ADDRESSNUMBER OF UNITSYEAR
NAMEAPPROVED
Broadway Center Washington and Broadway 12 studio; 71 One-Bdrm; 24 Two-Bdrm; 1978
12 Studio (107 total)
Lawrence Court 8th and Lawrence 50 One-Bdrm 1980
(all low-income)
Washington Abbey 10th and Washington 9 One-Bdrm/plus loft; Five Two-Bdrm; 34 1984
One-Bdrm (48 Total)
Olive Terrace 15th Ave. & Olive St. 4 Studio; 12 One-Bdrm Units; 12 Two-1989
Bdrm Units. (28-Total)
Joseph Shapitka 445 W. 10th Ave. 8 Two-Bdrm Units. 1990
Apts. (8-Total)
Burnell Ambrose 17 & 35 Lawrence St. 7 One-Bdrm Units. 1995
Apts. (7-Total)
Nozama Apartments 525 & 541 E. 19th Ave. 12 Two-Bdrm Units; 2 Four-Bdrm Units. 1995
(14-Total)
Hilyard House 701 & 725 E. 14th Ave. 1357 44 Two-Bdrm Units; 9 One-Bdrm Units. 1995
Art Carmichael & 1377 Hilyard (53-Total)
Phil Klingensmith/ 632 E. 15th Avenue 6 Studio; 8 One-Bdrm Units; 1996
Don McRae 16 Two-Bdrm Units.
(30-Total)
High Street Terrace 10th Ave. & High St. 20 Studio; 26 One-Bdrm Units; 12 Two-1996
Bdrm Units.
(58-Total)
Broadway Place Broadway and Charnelton 74 Studio, 72 One-Bedroom, 24 Two 1996
Bedroom
(170-Total)
The Tate 1375 Olive 47 units – condominiums 2004
14 one-bedroom, 27 two-bedroom, 6
three-bedroom
Patterson House 979 Patterson 27 units (3 studio, 12 one-bedroom, 12 2004
(under construction) two-bedroom)
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Parkside Place 673 E. 14 Alley 21 units (1 one-bedroom, 2 two-bedroom, 2006
(under construction) 3 three-bedroom, 7 four-bedroom, 6 fiv
bedroom)
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)
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WestTown on 8 102 units Low-income exemption (20 years) - planned
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ATTACHMENT D
Proposed Development
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ATTACHMENT E
Existing Development
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ATTACHMENT F
Comments Received
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