HomeMy WebLinkAboutResolution No. 5383COUNCIL RESOLUTION NO. 5383
A RESOLUTION ADOPTING A POLICY REGARDING
SYSTEM DEVELOPMENT CHARGES FOR CONVERSION
OF BUILDINGS FROM COMMERCIAL TO RESIDENTIAL
USE IN NON -INDUSTRIAL ZONES.
PASSED: 8:0
REJECTED:
OPPOSED:
ABSENT:
CONSIDERED: September 20, 2023
Eugene
RESOLUTION NO. 5383
A RESOLUTION ADOPTING A POLICY REGARDING SYSTEM
DEVELOPMENT CHARGES FOR CONVERSION OF BUILDINGS FROM
COMMERCIAL TO RESIDENTIAL USE IN NON -INDUSTRIAL ZONES.
The City Council of the City of Eugene finds that:
A. The Oregon Legislature adopted House Bill (HB) 2984 in the 2023 legislative session to
encourage the conversion of commercial buildings for residential use. HB 2984 requires all local
governments, with some exceptions, allow the conversion of a building or a portion of a building from a
commercial use to a residential use without requiring a zone change or conditional use permit.
B. Among other things, HB 2984 requires cities with a population of 10,000'.or greater to
assess System Development Charges (SDCs) for such building conversions only pursuant to a "a specific
adopted policy for commercial to residential conversions adopted on or before December 31, 2023," or, if
no such policy is adopted by December 31, 2023, to assess only water and wastewater SDCs to such
conversions and in that case, to offset those SDCs by at least 100 percent of the water or wastewater SDCs
paid when the building was originally constructed.
C. The City does not have "a specific adopted policy for commercial to residential
conversions." When a building, or part of a building, is converted from any use to any other use, the City's
current SDC regulations require payment of SDCs for wastewater, transportation, stormwater, and parks /
recreation, but a credit is applied based on the present-day SDCs associated with the most recent verified
use of the building (for a partial conversion) or the most intense previous use of the building (for a complete
conversion), a more generous credit than the one described in HB 2984. (EC 7.730; Methodology 7.2.4).
D. In addition to the guaranteed credit described in C., above, and the, potential for other
credits and reductions (i.e. for constructing a qualified public improvement, a nearby capital improvement,
or a stormwater system improvement), the conversion of a building from a commercial use to a residential
use may also be eligible for the following types of SDC exemptions, reductions, and adjustments that are
included in the City's current SDC regulations:
1. An exemption from payment of local wastewater, transportation, stormwater, and
parks/recreation SDCs for housing for low-income persons. (EC 7.725)
2. A reduction applied to SDCs for a private physical improvement constructed as
part of the conversion or program instituted in connection with the conversion that reduces the
residential use's demand on the City's transportation facilities and therefore reduces demand for
future construction of a transportation capital project. (Methodology 7.0, 7.1)
3. An adjustment to transportation SDCs for residential development located in the
Downtown Plan Boundary, on or near a key transportation corridor, in a nodal development area,
or near a Frequent Transit Network. (Methodology 7.0, 7.3, B-4.4)
4. An adjustment to parks / recreation SDCs for multi -family residential units with
two or more bedrooms, with a greater adjustment if located near a Frequent Transit Network.
(Methodology 7.3, E-1.3.4)
Resolution - Page 1 of 2
E. The City Council desires to preserve the City's full local authority to assess SDCs for the
conversion of commercial buildings and finds that the current regulations SDC credits, exemptions,
reductions, and adjustments offer substantial incentive to enable the City to take more time for a thoughtful
examination of, and possible shift in, the way SDCs are assessed for these conversions.
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. The City Council of the City of Eugene adopts the following policy:
As required by ORS 197.308(6), the City of Eugene affirms its current SDC regulations, as they
pertain to the conversion of a building from a commercial use to a residential use which require
payment of SDCs for wastewater, transportation, stormwater, and parks / recreation, but also
include a credit based on the present-day SDCs associated with the most recent v6rified use of the
building (for a partial conversion) or the most intense previous use of the building (for a complete
conversion) and offer numerous opportunities for other exemptions, reductions, and adjustments
that may be amended from time to time.
Section 2. This Resolution shall become effective immediately upon its passage by the City
Council.
The foregoing Resolution adopted the 20' day of September, 2023.
ity Rec r er
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