HomeMy WebLinkAboutItem 2D: Tax Exempt/WesTown 8thEUGENE CITY COUNCIL
AGENDA ITEM SUMMARY
Adoption of Resolution 4852 Approving a Low-Income Rental Housing Property Tax
Exemption for the Property Located at 265 West 8th Avenue, Eugene, Oregon
(Assessor's Number 17-03-31-12 Tax Lots 13700, 14100, 14200). (Metropolitan
Affordable Housing Corp.)
Meeting Date: August 8, 2005 Agenda Item Number: 2D
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 WestTown on 8th, an eligible low-income housing
project in downtown Eugene.
BACKGROUND
The council has a history of supporting low-income housing tax exemptions and has approved virtually
every request to date from both non-profit or for-profit entities.
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 always 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 lower-cost affordable housing for low-income households is an exemption
from property taxes for 20 years. A property tax exemption plays a very significant role in reducing
rents. In this project the average per-unit monthly savings is estimated at $158.00. This makes a
significant difference in the budget for a low-income household and is critical to the financing of the
development, since the units are rent controlled due to restrictions placed on the project by subsidy
partners. Metropolitan Affordable Housing Corporation is targeting groundbreaking for this project in
January or February 2006. Therefore, the approval of the property tax exemption is critical if the
project is to stay on its schedule.
The City and other local taxing districts forgo revenue when property is exempted from taxes. This
project involves new construction on a City-owned "landbank site." The property is on the north side of
West 8th Avenue between Charnelton and Lincoln streets. It is mostly an undeveloped parking lot and a
building that has been vacant for over 16 years. The property was purchased by the City of Eugene for
this purpose and the City Council was notified several times during the subsequent process that a tax
exemption would be part of the financing for the future development. The project is supported by both
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the Housing Policy Board and City Council has already been approved for other subsidies, including
HOME funds and use of the site. This project includes commercial spaces that will not be tax exempt.
COUNCIL OPTIONS
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 WestTown on 8th.
SUGGESTED MOTION
Move to adopt Resolution 4852 approving a low-income rental housing property tax exemption for the
property located at 265 West 8th Avenue, Eugene, Oregon (Assessor's number 17-03-31-12 tax lots
13700, 14100, 14200). (Metropolitan Affordable Housing Corporation)
ATTACHMENTS
A. Resolution
B. PDD Director's recommendation
Note: A copy of the WestTown on 8th 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 265 WEST 8TM AVENUE,
EUGENE, OREGON (ASSESSOR'S NUMBER 17-03-31-12
TAX LOTS 13700, 14100, 14200). (METROPOLITAN
AFFORDABLE HOUSING CORP.).
The City Council of the City of Eugene finds that:
A. The Metropolitan Affordable Housing Corp. (1430 Pearl Street, Ste B, Eugene,
Oregon 97401) has "site control" of the real property located at 265 West 8th Avenue, Eugene,
Oregon (Tax Lots 17-03-31-12- 13700, 14100, 14200), 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 (AIC), 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
portion of the property for which the exemption is sought 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 development of 102 low-income rental housing units
(31 studios, 54 one-bedroom, and 17 two-bedroom units), common space serving those units (for
which the exemption is sought), and eight market rate live/work spaces and one commercial
space, (which will not be subject to the exemption).
NOW, THEREFORE,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF EUGENE, a
Municipal Corporation of the State of Oregon, as follows:
Resolution- 1
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
Metropolitan Affordable Housing Corp. for an ad valorem property tax exemption under the
City's Low-Income Rental Housing Property Tax Exemption Program for a portion of the
property located at 265 West 8th Avenue, Eugene, Oregon (Tax Lot 17-03-31-12-13700, 14100,
14200), as more particularly described on Exhibit "A" attached hereto and incorporated herein by
reference, subject to the following condition:
1.1 Upon completion of construction, the project shall consist of 102 low-
income rental housing units (31 studios, 54 one-bedroom, and 17 two-bedroom units) and
the common space serving those units, which shall be used for the purpose of providing
low-income rental housing.
1.2 The portion of the project consisting of eight market rate live/work spaces
and one commercial space will not be subject to the exemption.
Section 2. That the land, the improvements constructed thereon, and the common space
serving those units as described in Section 1.1 above 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.
Resolution - 2
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 - 3
ATTACHMENT B
REPORT AND RECOMMENDATION
of the
Director of the Planning and Development Department (AIC)
Application of the Metropolitan Affordable Housing Corp. for
Property at 265 West 8tn 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. The Metropolitan Affordable Housing Corp. has "site control" of the real
property located at 265 West 8th Avenue, Eugene, Oregon (Tax Lot 17-03-31-12-13700,
14100, 14200), 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 proposed 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 portion of the property for
which the exemption is sought will consist of 102 low-income rental
housing units (31 studios, 54 one-bedroom, and 17 two-bedroom units)
and the common space serving those units. All of that portion of the
Report and Recommendation - 1
property will be used for the purpose of providing low-income rental
housing. The project will also consist of eight market rate live/work
spaces and one commercial space, which will not be subject to the
exemption.
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