HomeMy WebLinkAboutItem 2E: Tax Exempt/Redwood PkEUGENE CITY COUNCIL
AGENDA ITEM SUMMARY
Adoption of Resolution 4853 Approving A Low-Income Rental Housing Property Tax
Exemption For The Property Located At 4103 West 18th Avenue, Eugene, Oregon
(Assessor's Number 0718914) (Redwood Partners, LLC.)
Meeting Date: August 8, 2005 Agenda Item Number: 2E
Department: Planning and Development Staff Contact: Richie Weinman
www. eugene-or, gov Contact Telephone Number: 682-5533
ISSUE STATEMENT
City Council is asked to consider a resolution related to a low-income housing tax exemption. The
resolution grants a 20-year property tax exemption for Redwood Park Apartments at 4103 W. 18th
Avenue.
BACKGROUND
The council has a history of supporting low-income housing tax exemptions and has approved virtually
every request to date from either non-profit or for-profit developers.
Since 1987, one of the City Council's annual goals has related to homelessness or increasing the
availability of low-income housing. For low-income households, this typically requires subsidies.
Support for low-income housing also is found in the City's Growth Management Goals and the adopted
HUD Consolidated Plan.
A key element in creating low cost affordable housing for low-income households is an exemption from
property taxes for 20 years. A property tax exemption plays a significant role in reducing rents.
Redwood Park, at the northwest corner of 18th Avenue and Bertlesen Road., is currently a market-rate
development that is proposed to be purchased, substantially rehabilitated, and then rented exclusively to
low-income tenants. The project will also include adding 16 new low-income units. The proposed
property tax exemption will both enable this project to proceed and will result in an average per-unit
monthly savings of $40 to $50 for the tenants.
The Housing Policy Board reviewed this proposal on December 6, 2004 and discussed the value of
public/private partnerships for low-income housing and the benefit of adding a substantial number of
units to the low-income housing stock for a comparatively small subsidy. The HPB determined there
was no conflict with Eugene's Housing Dispersal Policy and unanimously recommended approval.
Financial and/or Resource Considerations
The City and other local taxing districts forgo revenue when property is exempted from taxes. This is an
existing housing development that has a 2004 taxable value of $2,408,252 and paid $44,275.66 in
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property taxes. The proposed project also includes the construction of 16 new units of housing. The
council must weigh the benefits of providing long-term, rent-controlled housing for a low-income
population against the loss of revenue.
COUNCIL OPTIONS
The City Council may approve or deny the tax exemption.
CITY MANAGER'S RECOMMENDATION
The City Manager recommends the approval of the resolution granting a 20-year property tax exemption
to Redwood Park.
SUGGESTED MOTION
Move to approve Resolution 4853 approving a low-income rental housing property tax exemption for
the property located at 4103 West 18th Avenue, Eugene, Oregon (Assessor's number 0718914)
(Redwood Partners, LLC.)
ATTACHMENTS
A. Resolution
B. PDD Director's recommendation
Note: A copy of the appfication for property tax exemption is available for review in the
Council Office.
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
RESOLUTION NO.
A RESOLUTION APPROVING A LOW-INCOME RENTAL
HOUSING PROPERTY TAX EXEMPTION FOR THE
PROPERTY LOCATED AT 4103 WEST 18TM AVENUE,
EUGENE, OREGON (ASSESSOR'S NUMBER 0718914)
(REDWOOD PARTNERS, LLC.).
The City Council of the City of Eugene finds that:
A. The Redwood Partners, LLC (550 Kirkland Way, Suite 405, Kirkland, WA
98033) is the owner of the real property located at 4103 West 18th Avenue, Eugene, Oregon
(Assessor's Number 0718914), and more particularly described on Exhibit "A" attached hereto
and incorporated herein by reference, and has submitted an application pursuant to Subsection
2.939(2) of the Eugene Code, 1971 for an exemption from ad valorem taxes under the City's
Low-Income Rental Housing Property Tax Exemption Program (Sections 2.937 to 2.940 of the
Eugene Code, 1971).
B. The Director of the Planning and Development Department (MC), as designee of
the City Manager has submitted a Report and Recommendation to the Council that the
application be approved and the exemption granted. In making that recommendation, the
Director found that the applicant submitted all materials, documents and fees required by the
application and the City, including, if applicable: documentation that the housing units on the
property were or will be constructed after February 12, 1990, documentation that the required
rent payment will reflect the full value of the property tax exemption; documentation that the
property will be offered for rental solely as a residence for low-income persons; that the
applicant is in compliance with the policies set forth in the Standards and Guidelines adopted by
Resolution No. 4623 of the City Council, applicable local plans, planning regulations, and the
Metro Plan; and has executed the required Consent to Inspection of Premises and the Rent
Regulatory Agreement, which agreement contains a provision requiring certification of income
levels of low-income occupants; and is otherwise in compliance with the criteria for approval as
set forth in Subsection 2.939(2) of the Eugene Code, 1971; all as set forth in the Director's
Report and Recommendation.
C. The project consists of the rehabilitation of the existing 216 units and construction
of an additional 16 units, resulting in a total of 232 low-income rental housing units (6 studios,
180 one-bedroom, and 46 two-bedroom units).
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 herein, and the City
Council's review of the Report and Recommendation of the Director of the Planning and
Development Department (AIC), the City Council hereby approves the application of Redwood
Partners, LLC for an ad valorem property tax exemption under the City's Low-Income Rental
Resolution- 1
Housing Property Tax Exemption Program for the property located at 4103 West 18th Avenue,
Eugene, Oregon (Assessor's Number 0718914), as more particularly described on Exhibit "A"
attached hereto and incorporated herein by reference, subject to the following condition:
Upon completion of construction, the project shall consist of 232 low-income
rental housing units (6 studios, 180 one-bedroom, and 46 two-bedroom units) which shall
be used for the purpose of providing low-income rental housing.
Section 2. That the land and the improvements constructed thereon, are hereby declared
exempt from local ad valorem property taxation commencing July 1, 2006 and continuing for a
continuous period of twenty (20) years unless earlier terminated in accordance with the
provisions of Section 2.940 of the Eugene Code, 1971, which provides for termination after an
opportunity to be heard if:
2.1 Construction or development of the exempt property differs from the
construction or development described in the application for exemption, or was not
completed by January 1, 2010, and no extensions or exceptions were granted; or
2.2 The property owner fails to comply with provisions of ORS 307.515 to
307.523, provisions of the Eugene Code, 1971, the Standards and Guidelines adopted by
Council Resolution No. 4623, or any conditions imposed in this Resolution; and
immediate termination, without right of notice or appeal, pursuant to the provisions of ORS
307.531 in the event:
2.3 The exempt property is being held for future development of low income
rental housing and it is used for any purpose other than the provision of low income
rental housing; or
2.4 The county assessor determines that a change of use to other than that
allowed has occurred for the housing unit, or portion thereof, or, if after the date of this
approval, a declaration as defined in ORS 100.005 is presented to the county assessor or
tax collector for approval under ORS 100.110.
Section 3. The City Manager, or the Manager's designee, is requested to forward a copy
of this Resolution to the applicant, and to the other taxing districts affected hereby, within ten
days from the date hereof, and to cause a copy of this Resolution to be filed with the Lane
County Assessor on or before April 1, 2006.
Section 4. This Resolution shall become effective immediately upon its adoption.
The foregoing Resolution adopted and effective the 8th day of August, 2005.
City Recorder
Resolution - 2
ATTACHMENT B
REPORT AND RECOMMENDATION
of the
Director of the Planning and Development Department (AIC)
Application of Redwood Park, LLC for
Property at 4103 West 18th Avenue
For Low Income Rental Housing Property Tax Exemption
(Section 2.937 to 2.940 of the Eugene Code, 1971)
The Director of the Planning and Development Department (AIC) of the City
of Eugene finds that:
1. Redwood Park, LLC is the owner of the real property located at 4103
West 18th Avenue, Eugene, Oregon (Assessor's Number 0718914), as more particularly
described in its Application submitted pursuant to Subsection 2.939 (2) of the Eugene
Code, 1971 for an exemption from ad valorem taxes under the City's Low Income Rental
Housing Property Tax Exemption Program (Sections 2.937 to 2.940 of the Eugene Code,
1971).
2. I have reviewed the application and specifically find:
2.1 The applicant has submitted all materials and documents required
by the City, including but not limited to:
2.1.1 Documentation that the housing units on the property will
be constructed after 2/12/90;
2.1.2. Documentation that the required rent payment reflects the
full value of the property tax exemption;
2.1.3 Documentation that the property will be offered for rental
solely as a place for low-income households;
2.2 The applicant is in compliance with the policies set forth in the
Standards and Guidelines adopted by Resolution 4623 of the City Council
and has previously executed the required Consent to Inspection of
Premises and Rent Regulatory Agreement, which contains a provision
requiring certification of income levels of low-income occupants.
2.3 The project is otherwise consistent with provisions of the Eugene
Code, 1971, and other adopted City policies and regulations.
2.4 When construction is complete, the property will consist of 232
low-income rental housing units (6 studios, 180 one-bedroom, and 46 two-
bedroom units). All of the property will be used for the purpose of
providing low-income rental housing.
Report and Recommendation - 1
Therefore, based on the above findings, the proposed project is in conformance
with all applicable local plans, planning regulations, the Metropolitan Area General Plan,
and the criteria set forth in the City's adopted Standards and Guidelines for Low-Income
Rental Housing Property Tax Exemption, and I recommend that the application be
approved.
Dated this __ day of ., 2005.
Susan Muir
Executive Director (AIC)
Planning and Development
Department, City of Eugene
Report and Recommendation - 2