HomeMy WebLinkAboutResolution No. 5278COUNCIL RESOLUTION NO. 5278
A RESOLUTION APPROVING A MULTIPLE -UNIT PROPERTY TAX
EXEMPTION FOR RESIDENTIAL PROPERTY LOCATED AT 1040
AND1050 FERRY STREET, EUGENE, OREGON (APPLICANT RNS
MANAGEMENT, LLC).
PASSED: 5:3
R CTED:
OPPOSED: Taylor, Semple, Zelen"
ABSENT:
CONSIDERED: September 11, 2019
RESOLUTION NO. 5278
A RESOLUTION APPROVING A MULTIPLE -UNIT PROPERTY TAX
EXEMPTION FOR RESIDENTIAL PROPERTY LOCATED AT 1040 AND
1050 FERRY STREET, EUGENE, OREGON (APPLICANT RNS
MANAGEMENT, LLC).
The City Council of the City of Eugene finds that:
A. RNS Management, LLC (980 Willamette Street, Suite 200, Eugene, Oregon), is the
owner of real property located at 1040 and 1050 Ferry Street, Eugene, Oregon (Assessor's Map
Number 17-03-32-23 Tax Lots 9400 and 9500) ("the Property").
B. RNS Management, LLC ("the applicant") submitted an application pursuant to the
City's Multiple -Unit Property Tax Exemption Program (Sections 2.945 through 2.947 of the
Eugene Code, 1971 ("EC")), with respect to residential units to be constructed on the property
("the project").
C. The proposed project consists of the development of 35 studio units and 15 one -
bedroom units, for a total of 50 residential units. As proposed, the project is not designed for the
leasing of individual rooms or beds, for transient or vacation uses, or otherwise designed primarily
for individuals attending college.
D. An independent outside professional consultant was retained and reviewed the
project's financial pro -forma A Review Panel was convened and reviewed the independent
consultant's conclusions, and also reviewed the application in order to make a recommendation as
to whether the application met the criteria in EC 2.946. The Review Panel's recommendation was
submitted for the City Manager's review.
E. After considering the Review Panel's conclusions and recommendation, the
Executive Director of the Planning and Development Department ("the Executive Director") as
designee of the City Manager, prepared the Report and Recommendation attached to this
Resolution 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-2.945 ("Rule R-
2.945").
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
recommendation, the Executive Director found that the applicant submitted all materials,
documents, and fees required by EC 2.945, EC 2.946, and Rule R-2.945, and the applicant is in
compliance with the policies contained therein.
Resolution - Page 1 of 5
G. City Council has concluded that the application meets the criteria described in EC
2.946 and Rule R-2.945.
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 upon the City Council's
review of the Report and Recommendation of the Executive Director of the Planning and
Development Department attached to this Resolution as Exhibit A and incorporated herein by
reference, the City Council approves the application of RNS Management, 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 1040 and 1050 Ferry Street, Eugene, Oregon (Assessor's Map
Number 17-03-32-23 Tax Lots 9400 and 9500), subject to the following conditions:
1.1 Compact Urban Development. The project will consist of the development of 35
studio units and 15 one -bedroom units, for a total of 50 residential units, none of
which may be used for transient use or vacation occupancy. The Property is located
in the R-4 High Residential Zone, which requires a density of at least 20 units per
acre and a maximum of 112 units per acre. The applicant will develop 50 dwelling
units on the property which will result in a density of 103 units per acre and which
meets the requirements of section 1.1.1.1 of Rule R -2.945-C. The development
will be constructed in accordance with the schematic drawing showing the site plan
and major features and dimensions of the proposed development, and schematic
drawings showing side, front, and back elevations of the proposed development
which are attached to this Resolution as Exhibit B.
1.2 Green Building. The project will perform at least 10% more efficiently than the
performance established in the Oregon Energy Efficiency Specialty Code.
Applicant will provide to the City of Eugene's Building and Permit Services an
energy model with applicant's permit application.
Within 18 months after receiving a Certificate of Occupancy, the applicant shall
submit to the City a commissioning report pursuant to Section 1.2 of Rule R -2.945-
C demonstrating compliance with this requirement.
For the duration of the tax exemption, RNS Management, LLC will report multi-
family occupancy energy use data to the City of Eugene's Building and Permit
Services.
The project's on-site parking will include installation of conduit for future electric
vehicle charging stations.
Resolution - Page 2 of 5
1.3 Local Economic Impact Plan and Compliance with Laws. The applicant submitted
a plan demonstrating that more than 50% of the dollar volume of professional
services and construction contracts will be from a business organization or
individual residing or doing business primarily in Lane County. After construction,
the applicant will submit a list of the home city or zip code of the construction labor
workers.
RNS Management, LLC 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 applicant will post information about the City's Rights Assistance Program in
English and Spanish on the job site during construction of the project.
The applicant shall ensure that the developer, its contractors and subcontractors
comply with wage, tax and licensing laws.
The applicant will have in place methods for ensuring that all contractors
performing work are licensed and performing in compliance with state law.
The applicant will provide the City's Building and Permits Services Department
with a list of all 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 applicant 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.
1.4 Moderate -Income Housing Contribution. The applicant will include 15 moderate
income studio housing units (30% of the total number of units) with rents less than
or equal to 30% of Area Median Income as defined in Rule R -2.945-A.
1.5 Project Design and Compatibility.
The applicant shall adhere to the following design elements, as well as the actual
square footages included in Exhibit B unless the City Manager approves a deviation
from the plan pursuant to EC 2.946(2)(e)2:
Resolution - Page 3 of 5
The design elements of the building include a south facing lobby entry with
abundant glazing. A prominent elevator tower provides accent against
symmetrically proportioned bays punctuated with large windows. High quality,
durable materials include, ground face CMU, stucco, and metal wall panel cladding
over a wood framed structure. The cladding is accented with colored and matte
finish metal detailing.
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 West University neighborhood and others to provide comments on
the proposal. At least one of the applicant's principals shall attend that meeting.
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 this resolution. The neighborhood shall also have 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.
1.6 At the time of completion, the project shall conform 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 that are applicable
at the time the application is approved.
1.7 During all phases of development, the project shall comply with wage, tax and
licensing laws.
1.8 The project shall not contain any units for transient use or vacation occupancy.
1.9 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).
1.10 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.
Section 2. Subject to the conditions in Section 1 of this Resolution, 100% of the
residential units 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.
Resolution - Page 4 of 5
Section 3. The City Manager, or the Manager's designee, is requested to forward a
copy of this Resolution to the applicant within ten days, and to cause a copy of this Resolution to
be filed with the Lane County Assessor on or before April 1, 2020.
Section 4. This Resolution shall become effective immediately upon its adoption.
The foregoing Resolution adopted and effective the I I" day of September, 2019.
City Recorder
Resolution - Page 5 of 5
REPORT ) RECOMMENDATION
The Executive Director of the Planning & Development Department of the City of Eugene Finds
that:
Eugene,1. The Ferry St. Manor rtments will be developed on real property located at 1040 and 1050
Ferry St., y -g-• • .•, 13-32-23, tax lots 09411 and 1.1 RNS
residentialManagement, LLC is the current owner of the subject property. RNS Management, LLC
submitted an application pursuant to the City's Multiple -Unit Property Tax Exemption
("MUPTE") Program (Sections 2.945 and 2.947 of the Eugene Code, 1971), with respect to
r•- constructed on -• op
2. As the City Manager's designee, I have reviewed the application and find that:
2.1 The project will provide 35 studio units and 15 one -bedroom units, for a total of 50
residential units, none of which will be used for transient use or vacation occupancy.
There is no commercial space in the building.
2.2 The project is not designed to be student housing, meaning it will be leased by the unit
(rather than by individual rooms or beds) and the unit configuration does not include
several bedrooms with individual bathrooms and sparse common space or include
amenities and location selected primarily for individuals attending college and offer
limited viability as potential housing for the general population. Additionally, the
project does not designate any of the units for transient use or vacation occupancy.
2.3 Construction is expected to be complete on or before January 1, 2022.
2.4 The project is located in the downtown area described in subsection (1) of Section
2.946 of the Eugene Code, 1971.
2.5 The applicant submitted all materials, documents and fees required by the City as set
forth in Section 2.945 of the Eugene Code, 1971, and the administrative rules adopted
by Administrative Order No. 53-18-03-F.
2.6 The applicant responded to the Required Public Benefit criteria as follows:
2.6.1 Compact Urban Development. The project will be built in the R-4 High Density
Residential zone, which requires at least 20 housing units per acre and a
maximum of 112 units per acre. Ferry St. Manor includes 50 dwelling units that
would result in a density of 103 units per acre which is more than 175% of
minimum density as required by section 1.1.1.1 of Rule R -2.945-C.
2.6.2 Green Building Features. The project will utilize the City of Eugene Building
and Permit Services Pathway in order to meet the MUPTE green building
requirement and exceed the 10% energy efficiency threshold. Ferry St. Manor
Report and Recommendation -- Page 1 of 4
will be requiredo submit an energy model with theirdevelopment perm
application i'd a commissioning report due 18 months after certificateI
i p, rig; y p: !^ l;:r �l��',
conduit for !' electric iecharging stations.
a Plan.1 plan lace for more0% of thc
project's dollar volume of professional services and construction contracts to
be local to Lane County (estimated at 67%). The applicant is committed to
promoting open competitive opportunities for Minority, Women, and
Emerging Small Businesses, and is committed to complying with wage, tax, and
licensing laws.
2.6.4 Moderate -Income Housing Contribution. The project will provide a minimum
of 30% of the residential units (15 units) with rents that qualify as moderate -
income units during the MUPTE period. (Moderate income is defined in the
ordinance as affordable to households at 100% of the area median income.)
2.6.5 Project Design and Compatibility. The project will address basic design
concepts in the context of the project location and will be designed and
permitted for construction as shown in the resolution (should City Council
approve the MUPTE). The basic design concepts include: the scale, form, and
quality of the building; the mix of project elements; the relationship to the
street and surrounding uses; and parking and circulation.
The building is being constructed as an infill addition on an existing developed
site. The lot includes an existing residential building that will provide scale and
proportion for the infill project. The new building is five floors of residential
use providing 50 units of both market rate and moderate -income units. Placed
at the back of the lot, neither the building nor the site has street frontage. The
south facing lobby provides a highly visible connection to site circulation.
The design elements of the building include a lobby entry with abundant
glazing. A prominent elevator tower provides accent against symmetrically
proportioned bays punctuated with large windows. High quality, durable
materials include, ground face CMU, stucco, and metal wall panel cladding over
a wood framed structure. The cladding is accented with colored and matte
finish metal detailing.
The building meets City requirements for vehicle parking and bicycle parking,
and it provides pedestrian accommodations to access the site and surrounding
street grid through internal pedestrian paths and an access gate to Ferry Alley.
The project design is intended to harmonize with the scale, form and quality of
onsite and adjacent development. The project meets the design intent of
designing for the human scale, appropriate to the local climate and natural
Page 2 of 4
Report and Recommendation
promote transparency,-ir define a sense of place, fit the
neighborhood, and employ high-quality materials and color.
2.6 .6 Historic and Existing Housing SensitiyU. The projectadjacent one
historic locale, but it is not affected by the Ferry St. Manor redevelopment. The
project includes no direct,r o
demolitions,to any of •- -r resources. No historic structures or
existing housing a demolished or r ^r from the property
prior r the date application.
2.6.7 Project Need. The project's pro -forma and financial information was analyzed
by Johnson Economics, an independent, real estate economics consultant who
found that the project as proposed could not be built but for the benefit of the
tax exemption. The financial information Ferry St. Manor submitted in their
application is based on projections prior to finalizing financing, construction,
and tenanting. It includes assumptions regarding rents, vacancy rates,
operating costs, lender underwriting criteria, interest rates, and reasonable
rate of return. Johnson Economics, the Review Panel, and staff reviewed the
assumptions. The Johnson Economics analysis concludes that the project
would not be viable without the availability of the MUPTE, using the
reasonable assumptions outlined and concludes that MUPTE is critical to the
success of the project from a financial feasibility perspective. See Section 4
below for the Review Panel's conclusions.
2.6.8 Public Benefit beyond Period of Exemption. 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.
2.7 A neighborhood engagement meeting on Ferry St. Manor was held on December 18,
2018. As the West University Neighborhood is not currently active, the applicant
provided notice of the meeting to adjacent property owners and tenants.
2.7.1 Future Neighborhood Engagement. Prior to completing final drawings, Ferry
St. Manor will hold another neighborhood engagement meeting. Before
submitting for permits, Ferry St. Manor will submit the design to staff to review
conformance with the design attached to the MUPTE resolution (should City
Council approve the MUPTE). Staff will also give interested parties an
opportunity to review and comment on that final design.
3. A display ad soliciting recommendations or comments from the public regarding this project
was published in the Register -Guard on April 14, 2019. The period for comment expired on
May 14, 2019 and resulted in 21 written comments. Additional comments were submitted to
staff or directly to City Council after the official comment period. All 21 comments received as
of August 14 will be provided to City Council with the materials for the September 11 work
session.
Page 3 of 4
Report and Recommendation
4. The community member MUPTE Review Panel considered the project application, including
compliance with program criteria and the independent consultant's financial review, during 3
meetings held on May 29, July 10, and July 29. The majority of the Review Panel concluded that
the project meets the Required Public Benefit criteria. The Panel noted that Project Need
involves many variables that are hard to predict, The majority of the Panel concluded that
project need was demonstrated. Six of the panel members agreed that a ten-year exemption
was warranted. One member advocated for an eight-year exemption, another for a five-year
exemption, and one member advocated for no exemption. See the enclosed Panel Conclusions
document for a full summary of their conclusions.
Therefore, based upon the above findings, the project is, or will be at the time of completion, 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
administrative rules, and I recommend that the application be approved conditioned upon the
project moving forward as proposed.
Dated this il day of 4U C4 Ut 20190
DennyvB%r-a/ud
Executive Director
Planning & Development Department
Page 4 of 4
Report and Recommendation
i
i
1 PUBLIC
R.O,W
1
1
1
1
1 END OF
1 ALLEY
PAVING
1 M
1 M
M
W
\_0 #9gp0 1
0
0
0
Z
1
1� w
Iw a
Q
\0
LU
LL Ln
\0 #�0pp0
Exhibit B
Page 1 of 8
TOTAL BUILDING AREA INCREASE:
EXISTING PROPOSED TOTAL OF ALL PERCENTAGE
BUILDINGS: BUILDING: BUILDINGS: INCREASE:
56,694 31,195 87,899 55%
TOP OF PAW 5223'
(FOP OFI VALL) 1
F
J 07 J/ WV V V 1 0 1 .vL fit) i,yrr HLUu,L viN,yu�,y�eiN i rmurmi i II 1
1 1 u
�0T #930p i �0 #920p 1
' FERRY ST
1
66.00' R.O. /38.0' PAVE
1 � 1
1 �
ARCHITECTURAL SITE PLAN
FERRY STREET MANOR
MUPTE Application
05 August 2019
\0 #8,p0
0 10' 20' 40'
Exhibit B
Page 2 of 8
FIRST FLOOR
FERRY STREET MANOR
MUPTE Application
05 August 2019
0 4' 8' 16'
Exhibit B
Page 3 of 8
(4) @ 18"
SECOND &THIRD FLOORS
FERRY STREET MANOR
MUPTE Application
05 August 2019
0 4' 8' 16'
Exhibit B
Page 4 of 8
(4) @ 18"
FOURTH & FIFTH FLOOR
FERRY STREET MANOR
MUPTE Application
05 August 2019
0 4' 8' 16'
Exhibit B
Page 5 of 8
L U L
L v=i d Z d V)
J = J
LLL
L Z J V J Z
0 0 g o
U U
F V) F F F V)
FERRY STREET MANOR
MUPTE Application
05 August 2019
z
0
Q
LU
J
W
0
F
cc:
U O
w QC
U C7
o0
oc
LL
O
.oO
+
-
�.,0
+ oC
O0
LL
_
�LL
+
0
O
-j LL
2
�,�
+
O
_ LL
—
+
Q
w
c
O
LL O
z
Z O
—U
+ U.)Q
J
L
0
Q
D U
m
O
w
�w
Q w
O
LL o
�+I LL
J
L U L
L v=i d Z d V)
J = J
LLL
L Z J V J Z
0 0 g o
U U
F V) F F F V)
FERRY STREET MANOR
MUPTE Application
05 August 2019
z
0
Q
LU
J
W
0
1
��■�■�I
A -MIN I IN
*r
P, H I T U R■
Exhibit B
Page 7 of 8
FERRY STREET MANOR
MUPTE Application
05 August 2019
z
0
a
W
J
W
�27
0
z
■ ■ ■ ■il: mm r
1
r�
■
�IMM� ISI
IIIIML In
I= so" Im
U