HomeMy WebLinkAbout9.11.2019 City Council Work Session MinutesMINUTES
Work Session of the Eugene City Council
Harris Hall, 125 East 8h Avenue
Eugene, Oregon 97401
September 11, 2019
12:00 p.m.
Councilors Present: Emily Semple, Betty Taylor, Alan Zelenka, Jennifer Yeh, Mike Clark, Claire
Syrett, Chris Pryor, Greg Evans
Councilor Taylor opened the September 11, 2019, Work Session of the Eugene City Council in
Mayor Vinis' absence.
1. WORK SESSION AND POSSIBLE ACTION: Ferry St. Manor - Application for Multiple -Unit
Property Tax Exemption for Mixed -Use Property
Business Development Analyst Amanda D'Souza, Community Development Director, Michael
Kinnison, and Economic Development Planner, Anne Fifield, presented information to council
about a request for a Multi -Unit Property Tax Exemption for the Ferry St. Manor project, a
proposed multi -unit housing development located at 1040 and 1050 Ferry Street.
Discussion
Councilor Semple - inquired about the boundaries of the MUPTE; inquired about parking
for the building associated with the MUPTE; expressed concern about the plan for Ferry
Street Manor and Eugene Manor to share parking; expressed opposition to parking
situation and inquired about alternatives; asked how developers will emphasize alternative
modes of transportation, what month construction would begin; and what would happen if
developers don't maintain the rates during the exemption period; asked about risks for the
City regarding rental rates and potential upcoming recession; asked about a response to the
minority report; expressed appreciation for project but hesitancy about investment and
parking; expressed concern about tax exemptions.
Councilor Clark- expressed appreciation for Councilor Semple's comments; discussed
council development of public benefits criteria and how this project fits within those
criteria; asked how the project tests concepts developed through conversations with
neighborhood association and local developers.
Councilor Pryor - discussed rent control bill restrictions to allay fears of increasing rents;
discussed work in rewriting MUPTE requirements (public benefits) and support for MUPTE
based on compliance with rules developed; expressed confidence in developers; shared
concerns related to parking downtown but said it should not stall the project; discussed
what could be developed on the lot instead of housing.
Councilor Evans - inquired about the tax history of lot related to revenue the City has
received from the lot.
Councilor Syrett - asked if tax dollars are given to developers, whether the current property
tax would continue to be paid during the exemption period, and if the developer would pay
System Development Charges for parks, transportation and infrastructure; inquired
rhetorically if project would take away from ability to pay for subsidized affordable
housing; noted general community disapproval of MUPTE and other tax breaks in light of
community needs; expressed reasons for approval of project and MUPTE.
Councilor Zelenka - asked how student housing provision works for project; expressed
support for the student housing provision despite lack of faith in that particular test;
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expressed appreciation for aspects of the project; discussed history of MUPTE applications
within his experience on council and opinions about projects that received and didn't
receive a MUPTE in similar locations; asked questions related to necessity of MUPTE
program; raised the concept of "but for" test.
Councilor Taylor - asked whether there was a provision about using gas or electric energy;
asked about eligibility for vacation rental use; inquired about 18 -month validation related
to green building requirements and the potential for extensions; inquired about moderate
income rental rates for affordable rents; discussed concerns about affordability of moderate
income rental units and to which units these belong; discussed concern regarding timing of
approval and belief that the community and council need more time to learn about the
project; discussed desire to postpone action until further consideration.
Councilor Syrett - spoke to points by Councilor Zelenka regarding student housing and
general program skepticism; noted the council has the option to review the MUPTE
program and revisit the program criteria; shared reasons for preferring projects that
include a financial contribution rather than providing subsidized units as part of MUPTE
application.
Councilor Yeh - expressed support for the project given developer's meeting or exceeding
exceeding program requirements; expressed concern about issues that are raised after -the -
fact if developers are meeting the requirements set by councilors.
Councilor Zelenka - reiterated comments about student housing and the "but for" test;
discussed rent considerations and disapproval of the provision; reiterated concerns about
parking downtown; expressed opposition to application.
Councilor Clark- discussed report created regarding student MUPTE applications and
current property tax revenue and impact on the City; cited reasons for rebutting Councilor
Zelenka's "but for" test concern; expressed agreement with Councilor Yeh's comments
regarding council -imposed requirements for MUPTE applications.
Councilor Pryor - discussed Councilor Zelenka's concerns regarding student housing
provision and appreciation for provision; discussed appreciation about concerns about "but
for" test discussed by Councilor Zelenka, and support for the conclusion determined by the
project's financial analysis; discussed historical approval of MUPTE applications considered
by council and support for approval of applications being considered by council only after
meeting MUPTE requirements.
Councilor Zelenka - discussed 'but for" test further and difficulty in using that test to
determine if there is true financial need for MUPTE in developing a property; expressed lack
of faith in the test for determining the need for tax break
Councilor Taylor - discussed contracted financial advisor's potential lack of familiarity with
Eugene; expressed agreement with parking concerns in downtown and need for council
consideration; commented on Councilor Pryor's comments related to approval of MUPTE
application by council after requirements met; expressed belief that not all properties of tax
breaks will represent a return on investment.
Councilor Syrett - commented on concerns about parking downtown; discussed reality of
rental rates of downtown market rate units; discussed Councilor Zelenka's comments on
properties which did not receive a MUPTE versus those that did in similar areas and further
research on outcomes of these properties and the MUPTE program's viability.
Councilor Clark- inquired about requirement regarding parking provision by developer in
the downtown area they are located; discussed parking related to developer ownership of
nearby properties.
Councilor Pryor - asked what would happen if council took no action at all and council's
role in approval or denial of application; reiterated support for MUPTE application based on
program requirements and timelines.
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Work Session
Councilor Taylor - commented on Councilor Pryor's comments related to MUPTE
application approval timelines.
Mayor Vinis - reiterated comments made by Councilor Pryor, Clark, Syrett and Yeh
regarding MUPTE requirements; expressed appreciation for development of housing in
downtown core and for requirements being consistent and reliable for developers wanting
to build in the community; expressed support for reviewing MUPTE requirements separate
from approval of a specific application.
MOTION AND VOTE: Councilor Taylor, seconded by Semple, moved to postpone vote
for approval of application until the next meeting. FAILED 3:5, Councilors Semple,
Pryor, Yeh, Clark and Evans opposed.
MOTION AND VOTE: Councilor Semple, seconded by Councilor Pryor, moved to adopt 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. PASSED 5:3, Councilors Taylor, Semple, and Zelenka opposed.
The meeting adjourned at 1:17 p.m.
Respectfully submitted,
QdJ�
Beth Forrest
City Recorder
(Recorded by Samantha Roberts)
Link to the webcast of this City Council meeting: here
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Work Session