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HomeMy WebLinkAboutResolution No. 4867 COUNCIL RESOLUTION NO. 4867 A RESOLUTION APPROVING A LOW-INCOME RENT AL HOUSING PROPERTY T AX EXEMPTION FOR THE PROPERTY LOCATED AT 951 WEST 7TH, EUGENE, OREGON (ASSESSOR'S PROPERTY ACCOUNT NUMBER 0266211). (ST. VINCENT DE PAUL SOCIETY OF LANE COUNTY, INC.) PASSED: 8:0 REJECTED: OPPOSED: ABSENT: RECUSED: CONSIDERED: April 10, 2006 RESOLUTION NO. 4867 A RESOLUTION APPROVING A LOW-INCOME RENTAL HOUSING PROPERTY TAX EXEMPTION FOR THE PROPERTY LOCATED AT 951 WEST 7TH, EUGENE, OREGON (ASSESSOR'S PROPERTY ACCOUNT NUMBER 0266211). (ST. VINCENT DE PAUL SOCIETY OF LANE COUNTY, INC.) The City Council of the City of Eugene finds that: A. The 81. Vincent de Paul Society of Lane County, Inc. (705 S. Seneca Road, Eugene, Oregon 97402) is the owner of real property located at 951 West 7th, Eugene, Oregon, 97402 (Assessor's Property Account Number 0266211), and more particularly described on the attached Exhibit A, and 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 project consists of the development of 13 units (two studio units, seven one-bedroom units, and four two-bedroom units). Twelve of the units will be used for providing permanent low-income rental housing for 12 to 16 chronically homeless veterans. One unit will be used for an on-site manager familiar with the needs and characteristics of the tenants. It is anticipated that the manager will be a low-income occupant, as well. c. The Director of the Planning and Development Department, as designee of the City Manager, has submitted a Report and Recommendation to the Council which contains specific findings. A copy of the Report and Recommendation is attached as Exhibit Band incorporated by reference. The Director has recommended that the application be approved and the exemption granted. In making that recommendation, the Director found that the applicant submitted all materials, documents and fees required by the application and the City as set forth in Section 2.939(2) of the Eugene Code, 1971, and is in compliance with the policies set forth in the Standards and Guidelines adopted by Resolution No. 4623e 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 Director's Report and Recommendation attached as Exhibit B, which are adopted, the City Council approves the application of S1. Vincent de Paul Society of Lane County, Inc. for an ad valorem property tax exemption under the City's Low-Income Rental Housing Property Tax Exemption Program for the property located at 951 West 7th Avenue, Eugene, Oregon (Assessor's Property Account Resolution - 1 Number 0266211), as more particularly described on the attached Exhibit A, subject to the following condition: Upon completion of construction, the project shall consist of 13 units (two studio units, seven one-bedroom units, and four two-bedroom units). Twelve of the units will be used for permanent low-income rental housing for 12 to 16 chronically homeless veterans. One unit will be used for an on-site manager familiar with the needs and characteristics of the tenants. The manager will be a low-income occupant, as well. Section 2. That the land and units described in Section 1 above are declared exempt from local ad valorem property taxation commencing July 1, 2006, 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 property owner fails to comply with provisions ofORS 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; and immediate termination, without right of notice or appeal, pursuant to the provisions of ORS 307.531 in the event: 2.3 The exempt property is being held for future development of low income rental housing and it is used for any purpose other than the provision of low income rental housing; or 2.4 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, and to the other taxing affected districts, 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, 2006. Section 4. This Resolution shall become effective immediately upon its adoption. The foregoing Resolution adopted and effective the 10th day of April, 2006. " _<f'- ~>~~~(J'~\:~~?~ \\~:.;:;~,;~r~~_: ~L ,~~~ ~ 3;~- -= c- ~~;- -~ -~ -- Resolution - 2 EXHIBIT A Property Description Lot I ~ Rlol~ ( (. l<lTSON'S AD[)1 TION. as platted and rccordt;d in Book J~ Page 1 ~ Lane County (Jregon Plat Records,. in Lane C\"'lInty. Oregon: EXCEP rlNCi rhllt poniull of Lot 1, Block I, KITS()r~'S ADDITIO-N, d(;scr ibed \:1:> [ulluws: Beginning al a PI >int on the North line of :::;aid Lot I. Block 1 ~ KI'TSON'S ,<\DDIT'TON. as platted and recorded in 1300k 3, Pa.ge 1 Lane County ()rcgon Plat Records, 0.12 feet West of the Northeast corner of said 10l; thence East to the said N (wthcast corne]'; thence South along the Ea5t line of .'"~aid lot to the Southeast corner tl-J.t:reo r; thence Wesl O.H8 ff ut; thence N011:herly to the North line of said lot and the point of beginning. ill Lane County, Oregon. EXH I B IT I, _ ~ ~_ --::-___--=----_= ~_.--=---= ------~----:L~__ _ ==- ___ ~ --~_~~ _~~~--~=:~----=--..-------~ -- lr-~ _ _~~ -==-=--=--;'_~-:t_~__'__==--_- ~=--~~---=- _-=-=-'----:;-~--~~=-~~- ~-~ -- -~-- .....::::...--.--- ....-=~-=~-------~ -~ . -~ - :::'"~-==~ =--=~----=- =----=---~ .,...:-~- - ---- - -- --~ - - ~ ---- ~~=-~==- -=--= ---::=--...--=---------- -=- ---... ~- - -- ..::=:.=:::-~-- .;:...=---;;:--=.. --- - ...... --~ =- - ~-~ ~- ~ --- ~-=----- ---~=- ..-=----=-- ~-.='=---=--==-=-===--- - -- -- -- --= ':- ---=--- ---=--= -=--=----=-----==-=-- -~-==::......--- --- -- --=- - -- ....--. --=-==----....-- - - -- ~----~ - -----=---""'....::...-_-==--=----==---=-=-=--~ ~--~~- - -. -- =- - .. - REPORT AND RECOMMENDATION of the Director of the Planning and Development Department Application of St. Vincent de Paul Society of Lane County, Inc. For Low Income Rental Housing Property Tax Exemption (Section 2.937 to 2.940 of the Eugene Code, 1971) for Property at 951 West 7th Avenue, Eugene, Oregon The Director of the Planning and Development Department of the City of Eugene finds that: 1. St. Vincent de Paul Society of Lane County, Inc. (SVDP) is the owner of the real property located at 951 West 7th Avenue, Eugene, Oregon (Assessor's Property Account Number 0266211), as more particularly described in its application submitted pursuant to Subsection 2.939(2) of the Eugene Code, 1971 (EC), 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: 2.1 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)(a)-(i). Specifically I find: (a) and (b) The property subject to the property tax exemption is occupied solely as a residence for low-income persons. (c) The required rent payment will reflect the full value of the property tax exemption. (d) The housing units on the property were constructed after February 12, 1990. (e) The policies set forth in the Standards and Guidelines for Low-Income Rental Housing Property Tax Exemption adopted by council Resolution No. 4623 as required in Sections 2, 3 and 5, have been met. The findings for policies contained in Section 2 are identical to those in EC 2.939(2) and those findings are being addressed in this section. The findings for policies contained in Sections 3 and 5 are as follows: 3.1 An exemption is being requested for all of the property located at 951 West 7th Avenue, Eugene, Oregon. 3.2 The purpose of the project is to provide permanent housing for 12 to 16 chronically homeless veterans. Intensive case management and other services leading to full re-integration and stability will be provided by SVDP and all veteran's service agencies. The project consists of the development of 13 units (two studio units, seven one-bedroom units, and four two-bedroom units). Twelve of the units will be used for providing permanent EXHIBIT B to Resolution No. 4867 -- Report and Recommendation - 1 low-income rental housing for the veterans. One unit will be used for an on-site manager familiar with the needs and characteristics of the tenants. It is anticipated that the manager will be a low-income occupant, as well. 3.3 A certification of the income levels of low-income occupants is attached to the application. 3.4 The tax exemption will benefit project occupants in that the tenants will pay no more than 30% of their annual income in tent. Operating costs for this project are estimated at $65,000. Grant funds will pay $42,000 of the operating costs for the next two years and it is anticipated that the grant will be extended indefinitely. Rents will be applied to the annual operating budget which will leave the project with $13,000 to fund services not covered by the current grant. Estimated services based on a current population of five participants are $10,000 per year, which leaves an estimated $3,000 to cover eight additional veterans. Without the tax exemption, the service deficit would increase substantially. 3.5 and 3.6 The property will be occupied solely as a residence for low-income persons as evidenced by a statement of SVDP's Executive Director attached to the application. 3.7 The application is not for an exemption described in subsection 2.10 of the Standards and Guidelines for Low-Income Rental Housing Property Tax Exemption. 3.8 The property is not being held for the future development of low income rental housing. 5.1 SVDP has agreed to execute and maintain in effect for the duration of the tax exemption period, Rent Regulatory Agreement. 5.2 The owner 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. (f) The proposed development is consistent with the city's housing dispersal policy. (g) The proposed development will cause displacement of low- income persons, however, HOME grant funds of $104,000 have been allocated for relocation of current eligible tenants and the City has hired a consultant who is working with 81. Vincent de Paul Property Management staff to identify comparable units for affected tenants. (h) The proposed development does not cause destruction of historic properties (as defined in section 9.202 of this code). (i) The proposed development is otherwise consistent with the Eugene Code, 1971, and adopted city regulations and policies. EXHIBIT B to Resolution No. 4867 -- Report and Recommendation - 2 -