HomeMy WebLinkAboutItem 4: Adoption of Resolution 5045 Extending the Completion Date for a MUPTE (The Paradigm on Pearl)-and att A
ECC
UGENE ITY OUNCIL
AIS
GENDA TEM UMMARY
Action: Adoption of Resolution 5045 Extending the Completion Date for
Construction of Residential Units Granted a Multiple-Unit Property Tax Exemption
under Resolution No. 5032 (The Paradigm on Pearl)
Meeting Date: October 24, 2011 Agenda Item Number: 4
Department: Planning and Development Staff Contact: Nan Laurence
www.eugene-or.gov Contact Telephone Number: 541-682-5340
ISSUE STATEMENT
The City Council is asked to approve a resolution granting a four-month extension for the previously
th
approved Multiple-Unit Property Tax Exemption (MUPTE) for “The Paradigm on Pearl” at 17 and
Pearl.
BACKGROUND
On May 9, 2011, the council approved a MUPTE for The Paradigm on Pearl. The adopted resolution
reflected a provision in the state statutes that required the project to be completed for occupancy by
January 1, 2012, the scheduled sunset date for the MUPTE statute.
The 2011 state legislature has since adopted a statute that extends the sunset date by ten years. The
developer of The Paradigm on Pearl project is now requesting a four-month extension of the required
completion date. The City’s ordinance provides for the possibility of project extensions in the event of
intervening circumstances beyond the control of the developer.
Request for Extension
This project has made good progress under construction, but has experienced delays for three reasons.
First, the excavators encountered unexpected occurrences of solid rock in several locations,
including the elevator shaft, which were not indicated in the comprehensive soil study performed
before excavation. This required contracting with a Seattle firm to supply a highly specialized
drill rig to complete excavation.
Second, unseasonably heavy rainfall from May to July resulted in rainwater pooling in the
excavated pit on the building site, which required a time-consuming water removal process on
several occasions.
Third, the closing of the construction loan was delayed for several months. This delay prevented
the builders from ordering certain components and concluding other time-sensitive contracts
until the construction loan was closed.
S:\CMO\2011 Council Agendas\M111024\S1110244 -and att A.doc
For these reasons, the developer of The Paradigm on Pearl requests an extension until April 30, 2012, to
complete the project, which will allow construction to proceed under normal, reasonable, and safe
working conditions. Council action on this request on October 24 will help determine the next steps for
this project.
The developer has expressed an intention to invest the cost savings afforded by this extension in
upgrading the project’s environmental certification from LEED-Silver to LEED-Gold. They also intend
to make other improvements to the building, including:
1.Replace wood finished wainscoting on the first-floor façade on Pearl Street with stone masonry.
th
2.Replace the wooden power pole and streetlight on 17 and Pearl with a new, architecturally
appealing streetlight.
th
3.Include additional public seating on 17 Avenue adjacent to the courtyard entrance.
th
4.Improve the grand entrance to the building on the corner of Pearl and 17 with a more elaborate
design than currently planned, in fabricated steel and other upgraded materials.
These project improvements have been added as requirements to the resolution extending the project
completion date.
Financial and/or Resource Considerations
The MUPTE program provides tax exemptions for a limited time to encourage new, higher density
housing in targeted areas. The City and other local taxing districts forgo revenue for 10 years when a
property is approved for the exemption. The land, however, continues to be taxed during the exemption
period. Once the tax exemption expires, taxes on the entire improved property result in substantially
greater revenue for the taxing districts.
RELATED CITY POLICIES
MUPTE is enabled by state statute. The City of Eugene has participated in the MUPTE program since
1978. Encouraging housing in the core area is consistent with numerous adopted planning and policy
documents. Examples include:
Growth Management Policies
Policy 1 Support the existing Eugene Urban Growth Boundary by taking actions to increase
density and use on existing vacant land and under-used land within the boundary
more efficiently.
Policy 2 Encourage in-fill, mixed-use, redevelopment, and higher density development.
Policy 3 Encourage a mix of business and residential uses downtown using incentives and
zoning.
Refinement Plans
The Downtown Plan and relevant neighborhood refinement plans include policies encouraging
residential development at higher density as well as a variety or mix of structure types providing a range
of housing opportunities.
S:\CMO\2011 Council Agendas\M111024\S1110244 -and att A.doc
Envision Eugene
The MUPTE program is consistent with the current Envision Eugene work and, specifically, the
“Promote compact urban development and efficient transportation options” pillar and strategies
contained within it.
Eugene Counts
Increased downtown development is one of the desired outcomes identified under the Council Goal of
Sustainable Development.
COUNCIL OPTIONS
The council may approve or deny the extension.
CITY MANAGER’S RECOMMENDATION
The City Manager recommends approving the resolution to grant the extension.
SUGGESTED MOTION
Move to adopt Resolution 5045 extending the completion date for construction of residential units
granted a Multiple-Unit Property Tax Exemption under Resolution No. 5032, as amended under
Resolution No. 5045 (The Paradigm on Pearl).
ATTACHMENTS
A. Proposed Resolution
B. Letter from Dan Neal, Manager, Pearl Street Sustainable Housing
FOR MORE INFORMATION
Staff Contact: Nan Laurence, Planning and Development Department
Telephone: 541-682-5340
Staff E-Mail: nan.laurence@ci.eugene.or.us
S:\CMO\2011 Council Agendas\M111024\S1110244 -and att A.doc
ATTACHMENT A
RESOLUTION NO. ___
A RESOLUTION EXTENDING THE COMPLETION DATE FOR
CONSTRUCTION OF RESIDENTIAL UNITS GRANTED A MULTIPLE-UNIT
PROPERTY TAX EXEMPTION UNDER RESOLUTION NO. 5032. (Paradigm on
Pearl Project; Pearl Street Sustainable Housing LLC/Applicant).
The City Council of the City of Eugene finds that:
A.
Pearl Street Sustainable Housing LLC is the owner of real property located at 1647
th
through 1689 Pearl Street and 231 through 235 East 17 Avenue, Eugene, Oregon and had submitted an
application pursuant to the City’s Multiple-Unit Property Tax Exemption Program (Sections 2.945 and
2.947 of the Eugene Code, 1971), with respect to residential units to be constructed on the property.
B.
On May 9, 2011, the City Council adopted Resolution No. 5032 approving a multiple-
unit property tax exemption for the construction of residential units on the property. That Resolution
required that construction be completed on or before January 1, 2012, and provided that no extension
was to be expected if the project was not completed by the deadline.
C.
Subsection (5) of Section 2.947 of the Eugene Code, 1971 authorizes the Council to
extend the deadline for completion of construction of multiple-unit housing for an additional 12
consecutive months if it finds that the failure to complete construction by the time specified in the
resolution approving the tax exemption was due to circumstances beyond the control of the owner, and
that the owner had been acting in good faith and with due diligence.
D.
The property owner advises that circumstances beyond its control have resulted in
construction delays and that completing construction by the January 2, 2012 deadline would require
workers to work up to 60 hours per week. Therefore, the property owner has requested an extension of
time until April 30, 2012, to complete construction of the residential units. An extension of the
construction completion deadline will allow workers to work a normal 40 hour work week, which will
result in labor cost savings. Those savings will be used to make additional improvements to the building
that were not included in the original plan.
E.
The Council finds that the property owner has been acting in good faith and with due
diligence, and the inability to meet the January 1, 2012 construction deadline is due to circumstances
beyond its control.
NOW, THEREFORE,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF EUGENE, a Municipal
Corporation of the State of Oregon, as follows:
S:\CMO\2011 Council Agendas\M111024\S1110244 -and att A.doc
Section 1.
Based on the above findings which are adopted, Pearl Street Sustainable Housing
LLC is granted an extension to April 30, 2012, in which to complete construction of the residential units
for which a property tax exemption was granted under Resolution No. 5032, provided that the following
improvements to the project are made:
(a) Use of stone masonry on the first floor along the expanse of the Pearl Street side,
rather than wood finished wainscoting.
th
(b) Replace large wooden power pole and streetlight on 17Avenue and Pearl Street
with a new, architecturally appealing, metal streetlight.
th
(c) Include additional public seating on 17 Avenue adjacent to the courtyard
entrance.
th
(d) Improve the grand entrance to the building on the corner of 17Avenue and Pearl
Street with a more elaborate design and fabricated steel and other more expensive
building materials.
(e) Take reasonable steps necessary to qualify for LEED-Gold certification.
Section 2.
The City Recorder is requested to forward a copy of this Resolution to Pearl Street
Sustainable Housing LLC, and to append a copy of this Resolution to Resolution No. 5032.
Section 3
. This Resolution shall become effective immediately upon its adoption.
The foregoing Resolution adopted the _____ day of October, 2011.
_____________________________________
Deputy City Recorder
S:\CMO\2011 Council Agendas\M111024\S1110244 -and att A.doc
%XXEGLQIRX&