HomeMy WebLinkAboutItem 3C: Adoption of Resolution 4854 Concerning the Low-Income Rental Housing Property Tax Exemption Granted Redwood Partners
ECC
UGENE ITY OUNCIL
AIS
GENDA TEM UMMARY
Adoption of Resolution 4854 Concerning the Low-Income Rental Housing Property Tax
Exemption Granted Redwood Partners, LLC., and Amending Resolution No. 4853
Meeting Date: October 24, 2005 Agenda Item Number: 3C
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 amend a previously approved resolution, correcting an error in the legal
description, related to a low-income housing tax exemption. The resolution grants a twenty-year
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property tax exemption for Redwood Park Apartments at 4103 W. 18 Avenue.
BACKGROUND
On August 8, 2005, the council approved a low-income housing tax exemption for Redwood Park
Apartments. Due to an error in their initial application, the property was not described accurately and
the adopted resolution does not, therefore, accurately describe the project. This revised resolution
corrects this error, and identifies the new name of the partnership owning the project. Otherwise, the
project remains exactly as the council approved it.
A key element in creating low cost affordable housing for low-income households is an exemption from
property taxes for twenty years. A property tax exemption plays a very significant role in reducing
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rents. Redwood Park, at the northwest corner of 18 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 then 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. It 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.
RELATED CITY POLICIES
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.
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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
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
City Council may approve or deny the resolution amendment
CITY MANAGER’S RECOMMENDATION
The City Manager recommends the approval of the resolution amendment which corrects an error in the
legal description granting a 20 year property tax exemption to Redwood Park.
SUGGESTED MOTION
Move to approve Resolution 4854 concerning the low-income rental housing property tax exemption
granted Redwood Partners, LLC., and amending Resolution No. 4853.
ATTACHMENTS
A. Resolution
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 CONCERNING THE LOW-INCOME RENTAL
HOUSING PROPERTY TAX EXEMPTION GRANTED
REDWOOD PARTNERS, LLC., AND AMENDING RESOLUTION
NO. 4853.
The City Council of the City of Eugene finds that:
A.
On August 8, 2005 the City Council adopted Resolution No. 4853 approving an
application submitted by Redwood Partners, LLC for a low-income rental housing property tax
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exemption for property described as being located at 4103 West 18 Avenue, Eugene, Oregon,
Assessor’s Number 0718914.
B.
Staff has advised that an error occurred in describing the property, resulting in all the
property for which the exemption was intended not being referenced in the Resolution. As noted in
Finding C of Resolution 4853, the project consists of the rehabilitation of the existing 216 units and
construction of an additional 16 units. The existing and proposed units are located on two tax lots
identified as Assessor’s No. 0718914 and 0718955. However, Resolution 4853 did not contain a
reference to Assessor’s No. 0718955. In addition, the property owner, Redwood Partners, LLC, is in the
process of transferring its interest in the property to Redwood Park Apartments, LLC.
C.
In order to ensure that the low-income rental housing property tax exemption is correctly
applied to the entire project, Resolution No. 4853 should be amended to reflect that the real property is
identified as both Assessor’s Nos. 0718914 and 0718955, and that the property owner is Redwood Park
Apartments, LLC. No changes are proposed to be made to the details of the project, and all other
provisions and requirements of Resolution 4853 will remain in effect.
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 on the above findings, which are adopted herein, Resolution No. 4853 adopted
by the City Council on August 8, 2005 is amended as follows:
(a) All references to Assessor’s Number 0718914 are amended to include a reference
to Assessor’s Number 0718955.
(b) All references to “Redwood Partners, LLC” are amended to read “Redwood Park
Apartments, LLC”.
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Section 2.
Except as amended in Section 1 above, all other provisions and conditions of
Resolution 4853 remain in full force and effect and binding upon Redwood Park Apartments, LLC.
Section 3.
The City Recorder is requested to append a copy of this Resolution to Resolution No.
4853, to forward a copy to the applicant and other taxing districts affected hereby, within ten days from
the date hereof, and to ensure a copy is appended to Resolution No. 4853 when that Resolution is 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 ____ day of ___________, 2005.
____________________________________
City Recorder
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