HomeMy WebLinkAboutResolution No. 5016COUNCIL RESOLUTION NO. , 5016
A RESOLUTION APPROVING A LOW - INCOME RENTAL
HOUSING PROPERTY TAX EXEMPTION FOR THE
PROPERTY LOCATED AT 1135 HAYES STREET,
EUGENE, OREGON. (ST. VINCENT DE PAUL SOCIETY
OF LANE COUNTY/ APPLICANT.)
PASSED: 8:0
REJECTED:
OPPOSED:
ABSENT:
CONSIDERED: October 11, 2010
RESOLUTION NO. 5016
A RESOLUTION APPROVING A Low - INCOME RENTAL HOUSING
PROPERTY TAX EXEMPTION FOR THE PROPERTY LOCATED AT
1135 HAYES STREET, EUGENE, OREGON. (ST. VINCENT DE PAUL
SOCIETY OF LANE COUNTY/ APPLICANT.)
The City Council of the City of Eugene finds that:
A. Lamb Building Limited Partnership is the owner of real property located at 1135
Hayes Street, Eugene, Oregon, 97402 (Assessor's Map 17- 04- 36 -31; Tax Lot Nos. 3200 and
3500; Assessor's Property Account Numbers 0482107 and 0482115). St. Vincent de Paul
Society of Lane County, Inc. ( "the applicant "), located at P.O. Box 24608, Eugene, Oregon,
97402, has submitted an application pursuant to Subsection 2.93 9(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 tax exemption is being sought for the residential portion of the project, which
will include 35 one - bedroom units and residential common areas (entry lobby, storage,
community room, and laundry room) that are being constructed on the property. Construction is
expected to be completed by October 31, 2010.
C. The Community Development Manager of the Planning and Development
Department, as designee of the City Manager, has prepared a Report and Recommendation,
which is attached to this Resolution as Exhibit A, recommending that the application be
approved and the exemption granted. In making that recommendation, the Community
Development Manager found that the applicant submitted all materials, documents and fees
required by the application and Section 2.93 8(1) of the Eugene Code, 1971, and is in compliance
with the policies set forth in the Standards and Guidelines adopted by Resolution No. 4623. In
addition, as described more fully in Exhibit A, the applicant has complied with the criteria for
approval provided in Section 2.93 9(2) of the Eugene Code, 1971.
D. The Oregon Low- Income Rental Housing statutes have been amended to allow
prof ect completion to occur any time before January 1, 2020. The City has not yet amended its
Code provisions to reflect this change and still requires the applicant to get an extension to allow
a "completion of construction" deadline after January 1, 2010. The construction associated with
this application was not complete by January 1, 2010 because commencement of development
could not begin prior to the award of Low Income Housing Tax Credits (LIHTC) from the State
of Oregon. These circumstances were beyond the control of the owner and the owner can
reasonably be expected to act in good faith and with due diligence to complete construction of
the low- income rental housing by January 1, 2011.
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, and the findings in the Community
Development Manager's Report and Recommendation attached as Exhibit A, the City Council
approves the application of St. Vincent de Paul Society of Lane County for an ad valorem
property tax exemption under the City's Low -- Income Rental Housing Property Tax Exemption
Program for the residential portion (82.5 %) of the property located at 1135 Hayes Street,
Eugene, Oregon, 97402 (Assessor's Map 17-04-36-3 1; Tax Lot Nos. 3200 and 3500; Assessor's
Property Account Numbers 0452107 and 0482115), which will include 35 one - bedroom units
and residential common areas (entry lobby, storage, community room, and laundry room). The
units shall be offered for rent to those whose income falls at or below 60% of the Area Median
Income as determined by the State Housing Council.
Section 2. The residential units described in Section 1 above are declared exempt from
local ad valorem property taxation commencing July 1, 2011, 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 applicant 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.
The tax exemption shall be terminated immediately, without right of notice or appeal, pursuant to
the provisions of ORS 307.531 in the event that 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. Based on the findings in Section D above, pursuant to subsection (4) of
Section 2.940 of the Eugene Code, 1971, the City hereby sets the deadline for completion of
construction of the low- income rental housing at January 1, 2011. See Section 2. 1, above.
Section 4 . The City Manager, or the Manager's designee, is requested to forward a copy
of this Resolution to the applicant within ten days from the date of adoption of this Resolution,
and to cause a copy of this Resolution to be filed with the Lane County Assessor on or before
April 1, 2011. The copy of the Resolution sent to the applicant shall be accompanied by a notice
explaining the grounds for possible termination of the exemption prior to the end of the
exemption period and the effects of the termination.
Section 5. This Resolution shall become effective immediately upon its adoption.
The foregoing Resolution adopted the day of October, 2010.
Deputy City Re rder
REPORT AND RECOMMENDATION
of the
Community Development Manager of the Planning and Development Department
Application of St. Vincent de Paul Society of Lane County
For Low Income Rental Housing Property Tax Exemption
(Section 2.937 to 2.940 of the Eugene Code, 1971)
for Property at 1135 Hays Street, Eugene, Oregon
The Community Development Manager of the Planning and Development
Department of the City of Eugene finds that:
1, Lamb Building Limited Partnership is the owner of real property located
at 113 S Hays Street, Eugene, Oregon, 97402 (Assessor's Map 17- 04- 36 -31; Tax Lot Nos.
3200 and 3500; Assessor's Property Account Numbers 0482107 and 0482115). St.
Vincent de Paul Society of Lane County ( "the applicant "), located at PG Box 24608,
Eugene, Oregon, 19702 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).
2. I have reviewed the application and find that the applicant has submitted
all materials, fees and documents required by the application, and is in compliance with
the provisions of EC 2;939(2). Specifically I find:
(a) The property, or portion thereof subject to the property tax
exemption, will be occupied solely as a residence for low - income persons.
(b) The required rent payment reflects the full value of the property
tax exemption.
(c) The housing units on the property were constructed after February
12, 1990. .
(d) The applicant .has complied with the policies set forth in the
Standards and Guidelines for Low - Income Rental Housing Property Tax
Exemption adopted by council Resolution No. 4623.
(e) The proposed development is consistent with the city's housing
dispersal policy.
(f) The proposed development causes the displacement of low- income
persons, however, the City and the developer have reached agreement on
provisions that reflect satisfactory mitigation thereof.
(g) The proposed development does not cause destruction of historic
properties.
(h) The proposed development is otherwise consistent with the Eugene
Code and adopted city regulations and policies.
(i) The applicant has executed, and agrees to maintain in effect for the
duration of the tax exemption period, a Rent Regulatory Agreement.
0) The applicant has consented in writing that for the duration of the
tax exemption period, the city may inspect the property for which the exemption
is granted.
EXHIBIT A 1 Report and Recommendation - Page 1 of 2
3. Comments have been solicited from interested City departments, agencies,
and the affected neighborhood groups. Comments were received from Carol McBrian
and Dennis Lewandowski (Far west residents) and Steve Lamb (Far west Neighbors
Board m ember), all of whom support the application.
Therefore, based on the above findings, the proposed project conforms with all
applicable City Code provisions, 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.
A--
Dated this day of October, 20 o.
Community Deve pment Manager of the
Planning and Development Department
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EXHIBIT A 1 Report and Recommendation - Page 2 of 2
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