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HomeMy WebLinkAboutItem 2C: Approval of MUPTE for 16th and Hilyard Properties ECC UGENE ITY OUNCIL AIS GENDA TEM UMMARY Adoption of Resolution 4913 Approving a Multiple-Unit Property Tax Exemption for th Residential Property Located at 693 East 16 Street, Avenue, Eugene, Oregon (Corey Development, LLC) Meeting Date: June 25, 2007 Agenda Item Number: 2C 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 th (MUPTE) for the16 and Hilyard Apartments. BACKGROUND The council has a 30-year history of supporting tax exemptions under this program in order to encourage new housing in the core area. In April 2004, the council amended the MUPTE program regulations and boundary. th The proposed project will be built at 693 E. 16 Avenue, which is zoned R-3, high-density residential. Currently, the property is occupied by a two-story single family home that was built in 1905 and a one- story duplex that was constructed in 1947. Neither is considered a historical resource and both are in deteriorated condition. The applicant followed the required procedures and properly informed the City of his intent to remove the existing structures. Citizen Comments The applicant indicated in his application that the West University Neighbors were notified and invited to comment. The neighborhood leadership recently indicated that they were never contacted by the applicant. Staff recently provided the application to neighborhood representatives. If the neighborhood provides any comments prior to action, these comments will be provided to the City Council. Comments about this MUPTE application were also posted in a Register-Guard advertisement. No comments were received. Design Features Consistent with the council’s stated interests, as part of the adopted MUPTE Standards and Guidelines, this application proposes infill housing that increases density in the core area and provides new housing using higher grade materials. Minimum density is exceeded by 400%. The proposed housing involves a three-story building. There will be a total of 10 housing units - each with two bedrooms. L:\CMO\2007 Council Agendas\M070625\S0706252C.DOC The development will feature a variety of conservation and sustainability features in the construction. For instance, hot water will be provided through on-demand water heaters. No historic structures are on or adjacent to the property. This project utilizes a design that reflects a Craftsman style incorporating covered front porches, low pitched hip roofs, and tall paired grid windows. The building design includes a prominent entry facing Hilyard Street. 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 10 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 15 requests have been approved 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 business 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. CITY COUNCIL OPTIONS The council may approve the exemption, deny the exemption, or may delay approval in order to request additional information from 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 4913 approving a multiple-unit property tax exemption for residential th property located at 693 East 16 Street, Avenue, Eugene, Oregon (Corey Development, LLC). L:\CMO\2007 Council Agendas\M070625\S0706252C.DOC ATTACHMENTS th A. Resolution approving a property tax exemption for 16 and Hilyard Apartments B. Report from the Planning and Development Director C. Images of existing site and proposed development th Note: A copy of the MUPTE application for 693 E. 16 will be placed in the Council Office for review. FOR MORE INFORMATION Staff Contact: Richie Weinman, Urban Services Manager Telephone: 682-5533 Staff E-Mail: Richie.d.weinman@ci.eugene.or.us L:\CMO\2007 Council Agendas\M070625\S0706252C.DOC ATTACHMENT A RESOLUTION NO. ______ A RESOLUTION APPROVING A MULTIPLE-UNIT PROPERTY TAX TH EXEMPTION FOR RESIDENTIAL PROPERTY LOCATED AT 693 EAST 16 STREET, AVENUE, EUGENE, OREGON (COREY DEVELOPTMENT, LLC). The City Council of the City of Eugene finds that: A. Our Property Holdings Two, LLC. is the owner of real property located at 693 East 16th Avenue, Eugene, Oregon, 97401, more particularly described on the attached Exhibit A. Corey Development, LLC. 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 May 13, 2007, 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. No comments were received from the solicitation. C. The Report and Recommendation to the Council attached as Exhibit B, which was prepared by the Director of the Planning and Development Department (“the Director”) as designee of the City Manager, 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 ten residential two-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 Corey Development, LLC. for an ad valorem property tax exemption under the City’s Multiple-Unit Property Tax Exemption Program for the th residential units to be constructed at 693 East 16 Street, Eugene, Oregon, and more particularly described on the attached Exhibit A, subject to the following conditions: L:\CMO\2007 Council Agendas\M070625\S0706252C.DOC 1. The project shall consist of ten residential two-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, 2008. Section 4. This Resolution shall become effective immediately upon its adoption. The foregoing Resolution adopted and effective the ____ day of ___________, 2007. ___________________________________ City Recorder L:\CMO\2007 Council Agendas\M070625\S0706252C.DOC ATTACHMENT B REPORT AND RECOMMENDATION of the Director of the Planning & Development Department Corey Development, LLC. Multiple-Unit Property Tax Exemption The Director of the Planning & Development Department of the City of Eugene finds that: 1. Our Property Holdings Two, LLC. is the owner of real property located at 693 East 16th Avenue, Eugene, Oregon, 97401, and more particularly described in Exhibit A attached to the Resolution approving this tax exemption. Corey Development, 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. The design elements consist of: 2.2.1 Sustainability features. Sustainability features of this project include: Advanced framing techniques, raised heel energy trusses, continuous wall and roof insulation, an advanced air sealing package and ENERGY STAR appliances. Motion sensors on outdoor lights and on-demand hot water heaters or electric hot ? water heaters with a minimum energy factor of .92 for a 50-gallon heater. Reliance on natural lighting – every room will include at least one window. ? Landscaping features that use native species and drought tolerant plants which ? will reduce the need for fertilizers, herbicides, pesticides, and irrigation. Waste building materials will be recycled when possible. ? 2.2.2 Responsiveness to adjacent historic structures. There are no adjacent historic structures. The proposed structure will be built in the Craftsman style, reminiscent of the historic homes built in Eugene in the early 1900s. 2.2.3 Use of higher quality materials that contribute to longevity. Materials to be used in the proposed development, which will contribute to longevity, include 30-year roof shingles, high quality acrylic paints, long term siding, vinyl double paned windows, low- L:\CMO\2007 Council Agendas\M070625\S0706252C.DOC flow plumbing fixtures, thin wall plaster interior wall finish, and energy efficient appliances. Covered porches protect all exterior entrances. 2.2.4 Prominent entry facing the public street. The proposed development includes a prominent entry facing Hilyard Street - showcasing stone pillars and expanded front porch areas. 2.2.5 Number of units by which minimum density is exceeded or which incorporate three or more bedrooms to encourage families. The proposed development will exceed minimum density standards by seven (7) units. None of the units in the proposed development incorporate three or more bedrooms; all the units in the proposed development are two bedroom units. 2.2.6 Number of available ADA accessible units. Twenty percent of the space, or two floor plans, are adaptable. 2.2.7 Responsiveness to neighborhood character and safety in respect to height, mass, architectural detail, landscaping, and open space. The proposed development will include prominent pillars and a stone façade which will add to the neighborhood character. 2.2.8 Number of units designed for home ownership. None of the units are designed for individual ownership. A multi-story, common entrance design is required to maximize the density of the proposed development. This design does not accommodate individual home ownership. 2.2.9 Solicitation of comments from relevant neighborhood associations. The applicant has notified West University Neighborhood Association of plans for development. . 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 The site is currently occupied by a single family home built in 1905 and a duplex built in 1947. Both buildings are currently occupied by students. In June, 2006, the applicant notified Eugene Senior Planner Ken Guzowski of his intent to demolish the structures. The applicant plans to demolish the existing structures after donating them to the Eugene Fire Department for practice; 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 May 13, 2007. The period for comment expired on June 12, 2007. No comments were received. L:\CMO\2007 Council Agendas\M070625\S0706252C.DOC 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 Exemptions. I recommend that the application be approved. Dated this _____ day of June, 2007. _________________________________ Director, Planning & Development Department, City of Eugene L:\CMO\2007 Council Agendas\M070625\S0706252C.DOC ATTACHMENT C L:\CMO\2007 Council Agendas\M070625\S0706252C.DOC L:\CMO\2007 Council Agendas\M070625\S0706252C.DOC L:\CMO\2007 Council Agendas\M070625\S0706252C.DOC L:\CMO\2007 Council Agendas\M070625\S0706252C.DOC