HomeMy WebLinkAboutItem B: Multi-Unit Property Tax Exemption Program
ECC
UGENE ITY OUNCIL
AIS
GENDA TEM UMMARY
Work Session: Multi-Unit Property Tax Exemption (MUPTE) Program
Meeting Date: January 30, 2013 Agenda Item Number: B
Department: Planning & Development Staff Contacts: Denny Braud 541-682-5536
www.eugene-or.gov Robin Hostick 541-682-5507
ISSUE STATEMENT
In September 2011, the council approved the continuation of the Multi-Unit Property Tax
Exemption (MUPTE) program within the Downtown Plan Area (see Attachment A map). This
work session is an opportunity for the council to provide direction regarding future strategies
for using MUPTE to achieve Envision Eugene goals.
BACKGROUND
The MUPTE program is enabled by state legislation and designed to encourage higher
density housing and redevelopment in the core area and along transit corridors. The
program provides a 10-year property tax exemption on qualified new multi-unit
housing investments that occur within a specific, targeted area, meet program
requirements, and are reviewed and approved by the City Council. During the exemption
period, property owners still pay taxes on the assessed value of the land and any commercial
portions of the project, except those commercial improvements deemed a public benefit and
included in the exemption.
On July 20, 2011, the council considered MUPTE in the context of Envision Eugene and
directed staff to proceed in two phases: 1) prepare an ordinance and hold a public hearing
to extend the sunset date for MUPTE within the Downtown Plan Area, and 2) conduct
additional work sessions to discuss other priority areas for council consideration and future
action. On September 26, 2011, the council approved an ordinance that extended the
sunset date for MUPTE to January 1, 2022, and limited the boundary to only include the
Downtown Plan Area. (The MUPTE ordinance and administrative order used to review
MUPTE applications are included in Attachments B and C). On October 12, 2011, the council
had an initial discussion regarding strategies for determining priority areas for MUPTE in the
context of Envision Eugene. The outcome of that discussion included a single action that
directed staff to not consider MUPTE in the West University Neighborhood.
There are two potential considerations for utilization of MUPTE as an Envision Eugene
implementation tool. First, the council has expressed interest in looking at the existing MUPTE
S:\CMO\2013 Council Agendas\M130130\S130130B.doc
program to determine if any changes are desired to better align the tool with preferred
Envision Eugene outcomes. Secondly, the council will need to consider whether MUPTE (and
other potential tools) could be utilized to implement Envision Eugene in locations outside of
the Downtown Plan Area.
RELATED CITY POLICIES
Utilization of the MUPTE program to stimulate new multi-unit housing development addresses
many goals for Eugene and downtown, including:
Eugene Downtown Plan
Stimulate multi-unit housing in the downtown core and on the edges of downtown for a
variety of income levels and ownership opportunities.
Downtown development shall support the urban qualities of density, vitality, livability and
diversity to create a downtown, urban environment.
Actively pursue public/private development opportunities to achieve the vision for an
active, vital, growing downtown.
Use downtown development tools and incentives to encourage development that provides
character and density downtown.
Facilitate dense development in the courthouse area and other sites between the core of
the downtown and the river.
Envision Eugene Pillars
Promote compact urban development and efficient transportation options.
- Integrate new development and redevelopment in the downtown, in key transit corridors
and in core commercial areas.
- Meet the 20-year multi-family housing need within the existing Urban Growth Boundary.
- Make compact urban development easier in the downtown, on key transit corridors, and
in core commercial areas.
Provide housing affordable to all income levels.
Regional Prosperity Economic Development Plan
Strategy 5: Identify as a Place to Thrive - Priority Next Step - Urban Vitality
- As a creative economy is fostered, dynamic urban centers are an important asset. Eugene,
Springfield and many of the smaller communities in the region recognize the importance of
supporting and enhancing vitality in their city centers. Building downtowns as places to
live, work and play will support the retention and expansion of the existing business
community and be a significant asset to attract new investment. The Cities of Eugene and
Springfield will continue to enhance their efforts to promote downtown vitality through
development and redevelopment.
City Council Goal of Sustainable Development
Increased downtown development
S:\CMO\2013 Council Agendas\M130130\S130130B.doc
COUNCIL OPTIONS
This work session is an opportunity for staff to get feedback from council regarding alignment of
the existing MUPTE program with Envision Eugene outcomes and potential next steps for
considering MUPTE outside of the Downtown Plan Area.
CITY MANAGER’S RECOMMENDATION
The City Manager will use council feedback obtained in this work session to bring back
recommendations regarding the existing MUPTE program and the potential use of MUPTE outside
of the Downtown Plan Area.
SUGGESTED MOTION
No motion proposed at this time.
ATTACHMENTS
A. MUPTE Boundary Map
B. MUPTE Ordinance
C. MUPTE Administrative Order
D. Envision Eugene Technical Summary for Commercial and Multi-Family Homes
FOR MORE INFORMATION
Staff Contact: Denny Braud
Telephone: 541-682-5536
Staff E-Mail: denny.braud@ci.eugene.or.us
Staff Contact: Robin Hostick
Telephone: 541-682-5507
Staff E-Mail: robin.a.hostick@ci.eugene.or.us
S:\CMO\2013 Council Agendas\M130130\S130130B.doc
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