HomeMy WebLinkAboutResolution No. 5074COUNCIL RESOLUTION NO. 5074
A RESOLUTION APPROVING A LOW -INCOME RENTAL
HOUSING PROPERTY TAX EXEMPTION FOR PROPERTY
LOCATED ADJACENT TO 1410 RIVER ROAD, EUGENE,
OREGON. (EVERGREEN HOUSING DEVELOPMENT/
APPLICANT.)
PASSED: 6:1
REJECTED:
OPPOSED: Clark
ABSENT: Taylor
CONSIDERED: November 26, 2012
RESOLUTION NO. 5074
A RESOLUTION APPROVING A LOW - INCOME RENTAL HOUSING
PROPERTY TAX EXEMPTION FOR PROPERTY LOCATED
ADJACENT TO 1410 RIVER ROAD, EUGENE, OREGON.
(EVERGREEN HOUSING DEVELOPMENT / APPLICANT.)
The City Council of the City of Eugene finds that:
A. Evergreen Housing Development Group, LLC (the applicant), located at P.O. Box
31879, Seattle, Washington, 98103, has entered into Purchase and Sale Agreement with Schmitz
Homeplace, LLC, for the acquisition of real property located adjacent to 1410 River Road,
Eugene, Oregon, 97404 (Assessor's Map 17- 04- 13 -33; Tax Lot No. 04601; Assessor's Property
Account Number 1837937). The applicant 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 proposed development is expected to consist of 216 units to be constructed
on the property at rents affordable to 60% of area median income.
C. The Community Development Manager of the Planning and Development
Department (the Manager), 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 2.938(1) of the Eugene Code, 1971, and is in
compliance with the policies set forth in the Standards and Guidelines adopted by Resolution No.
5028. In addition, as described more fully in Exhibit A, the applicant has complied with the
criteria for approval provided in Section 2.939(2) of the Eugene Code, 1971.
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 Manager's Report and
Recommendation attached as Exhibit A, the City Council approves the application of Evergreen
Housing Development Group, LLC for an ad valorem property tax exemption under the City's
Low - Income Rental Housing Property Tax Exemption Program for the property located adjacent
to 1410 River Road, Eugene, Oregon, 97404 (Assessor's Map 17- 04- 13 -33; Tax Lot No. 04601;
Assessor's Property Account Number 1837937), for one, two, and three bedroom units to be
constructed and offered at rents affordable to 60% of area median income.
Resolution - Page 1 of 2
Section 2 . The land and residential units described in Section 1 above are declared
exempt from local ad valorem property taxation commencing July 1, 2013, 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, 2020, 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. 5028, 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 . 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, 2013. 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 4 . This Resolution shall become effective immediately upon its adoption.
The foregoing Resolution adopted the 26 day of November, 2012.
City I&corder
Resolution - Page 2 of 2
REPORT AND RECOMMENDATION
of the Community Development Manager
of the Planning and Development Department
Application of Evergreen Housing Development Group, LLC
For Low Income Rental Housing Property Tax Exemption
(Section 2.937 to 2.940 of the Eugene Code, 1971)
for Property adjacent to 1410 River Road, Eugene, Oregon
The Community Development Manager of the Planning and Development Department
of the City of Eugene finds that:
1. Evergreen Housing Development Group, LLC entered into a Purchase and Sale
Agreement for the acquisition of real property located adjacent to 1410 River Road,
Eugene, Oregon, 97404 (Assessor's Map 17- 04- 13 -33; Tax Lot No. 04601; Assessor's
Property Account Number 1837937). Evergreen Housing Development Group, LLC ( "the
applicant "), located at PO Box 31879, Seattle, WA 98103 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. 1 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.
The property is currently vacant. The proposed development includes 216 units of
rental housing for low- income people earning 60% or less of area median income.
100% of the development, once constructed, will be offered to families and
individuals at 60% area median income (AMI). Low- income is defined under Eugene
Code 2.937 as "Income at or below 60 percent of the area median income as
determined by the State Housing Council based on information from the United
States Department of Housing and Urban Development."
(b) The property is not occupied.
(c) The required rent payment reflects the full value of the property tax exemption.
Without the LIRPTE, the low rents cannot be achieved to meet limits prescribed by
the Low - income Housing Tax Credit LIHTC program that will be used to fund
development. Without the LIRPTE the debt coverage ratio (net operating income
River Road Apartments /Evergreen Housing Report and Recommendation - Page 1 of 3
divided by debt service) is 1.14, below industry standards to obtain conventional
financing and to attract investors.
(d) The housing units on the property are anticipated to be constructed in 2013.
(e) 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. 5028.
(f) The proposed development is consistent with the city's housing dispersal policy.
The policies contained in the Housing Dispersal Policy apply to housing for persons at
or below 50% of area median income. This development is for persons at 60% of
area median income. Therefore, those specific policies do not apply.
(g) The proposed development does not cause the displacement of low- income
persons.
The application is for new construction on vacant land.
(h) The proposed development does not cause destruction of historic properties.
The application is for new construction on vacant land. No historic properties will be
destroyed.
(i) The proposed development is otherwise consistent with the Eugene Code and
adopted city regulations and policies.
The proposed development is consistent or will be required to be consistent with this
code and adopted city policies and regulations reviewed under this application.
Consistency with zoning, building, and other code requirements will be addressed
when building permit applications are reviewed by Building Permit Services staff.
3. Comments have been solicited from interested City departments, agencies, and the
affected neighborhood groups. A committee of the Housing Policy Board also held a
public meeting to discuss the application at which public comments were accepted and
the City Council added a public forum to their agenda to listen to neighbor comments. In
total, six individuals spoke and /or provided written comments at the Housing Policy
Board committee meeting, 15 written comments were received during the 20 day
comment period that ended November 12, 2012, and five people spoke at the public
forum on November 19, 2012 (four against the project, plus the developer). Comments
relate to the scale of the project and its compatibility with the neighborhood, increases
in traffic, decreases in property values, neighborhood safety and increases in crime, and
concern with providing a local incentive to an out of town, for - profit developer. Some
River Road Apartments /Evergreen Housing Report and Recommendation - Page 2 of 3
also provided comments that the development is inconsistent with the City's Housing
Dispersal Policy. The City Attorney has determined portions of the Housing Dispersal
Policy do not apply to this project due to the income level of the population served.
Comments received on issues unrelated to the criteria or the standards and guidelines
may not be used in a decision to approve or deny an application.
Therefore, based on the above findings, the proposed project conforms or will
conform 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.
Dated this ��da y of November, 2012.
Print: Michael C. Sullivan Sign:
Community Development Manager of the Planning and Development Department
River Road Apartments /Evergreen Housing Report and Recommendation - Page 3 of 3