HomeMy WebLinkAboutItem B: Core Campus Application for MUPTE for 505 East Broadway
ECC
UGENE ITY OUNCIL
AIS
GENDA TEM UMMARY
Work Session: Core Campus – Application for Multiple-Unit Property Tax
Exemption for Residential Property Located at 505 East Broadway
(The Hub in Eugene)
Meeting Date: June 10, 2013 Agenda Item: B
Department: Planning and Development Staff Contact: Amanda Nobel
www.eugene-or.gov Contact Telephone Number: 541-682-5535
ISSUE STATEMENT
The work session will be a second opportunity for the council to discuss the Core Campus
proposal to build student housing at 505 East Broadway (see Attachment A).
BACKGROUND
On May 24, the council held a work session to review the Core Campus proposal and the public
comments received through May 21. In January 2013, the City of Eugene received a Multi-Unit
Property Tax Exemption (MUPTE) application from Core Campus for a proposed housing
development (The Hub in Eugene) on East Broadway and Ferry Street. Since the Core Campus
application was submitted prior to the temporary program suspension, the existing program rules
have been applied to this review.
Information Requested at the May 29 Work Session
At the May 29 work session, councilors made the following requests for information:
Research on other MUPTE-like programs in university towns (Attachment B)
Student population forecast (Attachment C)
Additional financial analysis for Core Campus (Attachment D):
Five- and six-year tax exemption
o
increased additional payments to the City, as negotiated with Core Campus
o
following the work session and the mechanism for guarantee
Transportation Impact Analysis (TIA) requirements related to this project and Core
Campus’s bike/pedestrian plan for access and safety (Attachment E)
Local hiring (Attachment F)
Consistency with the Downtown Plan: One of the requirements for approval of a MUPTE is
a finding by the council that the project is, or will be, consistent will all local plans
(including the Downtown Plan) at the time of completion. Staff believes that the project is
consistent and the council can make that finding as part of an approval resolution. A
proposed approval resolution (and a proposed disapproval resolution) will be provided
with the June 17 agenda item summary (AIS).
S:\CMO\2013 Council Agendas\M130610\S130610B.doc
Project Overview
The Hub in Eugene would be a 12-story, $44 million project: 197 apartments with on-site parking,
nearby parking, and commercial retail space. The site, which was a former Chevron service
station, has been vacant for eight years and is a brownfield site. Directly to the west is a
Korean/Japanese restaurant (formerly a Dunkin Donuts). To the east is a Pizza Hut. Due north is
a storage facility, and south, across Broadway, are eating establishments (including Burrito Boy)
and offices.
The project is proposed to have 501 bedrooms, 4,430 square feet of retail space, 34 on-site
parking spaces, and 88 surface parking spaces in a nearby lot (901 Franklin proposed). The
building would be designed to achieve LEED Silver certification and would include a green roof
among other features. The first-floor commercial spaces, sales center, and lobby, would have a
clear floor-to-ceiling glass storefront. The commercial space would front East Broadway.
The development would have onsite staff and security: six to eight full-time jobs and six part-time
jobs. The full-time staff would consist of a property manager, an assistant manager, a leasing
director, a leasing professional, a chief building engineer, a maintenance technician, and porters.
The proposed construction schedule would be 14-16 months long and provide an average of 120-
150 construction jobs. If the MUPTE is approved, construction would begin in February/March
2014.
MUPTE Program
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 objective aligns
with several of the pillars of Envision Eugene. Increasing the amount of multi-family housing in
the downtown and along transit corridors helps reduce pressure on urban growth boundary
(UGB) expansion and protects existing neighborhoods.
The program provides a 10-year property tax exemption on qualified new multi-unit housing
investments that occur within a specific, targeted area, that meet program requirements, and
that are reviewed and approved by the 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 by the council to be a public benefit and included in the
exemption. In September 2011, the council added the option to exempt the commercial portion of
a multi-unit housing project to the extent that the commercial property is required or considered
to be a public benefit. The council amended Eugene’s code provisions in November 2008 to assist
both staff and the council in evaluating a MUPTE application with 1) adoption of approval criteria
and 2) direction to the City Manager to adopt a public benefit scoring system (described below).
Staff’s review of the Core Campus MUPTE proposal is based on the current program requirements.
As ideas and potential revisions to the MUPTE program have emerged from the City Council’s
discussions, staff has had conversations with the developer about the possibility of incorporating
elements of the MUPTE revisions into proposed conditions of approval.
S:\CMO\2013 Council Agendas\M130610\S130610B.doc
Public Comments
A display advertisement was published in The Register-Guard on May 4, 2013, soliciting comments
for 30 days on the Core Campus MUPTE application. The period ends on June 3, 2013, at 5 p.m.
All written comments received by staff are included as Attachment G. The Downtown
Neighborhood Association Steering Committee unanimously took a position of support for the
Core Campus project with specific points on safety for pedestrians and bicyclers (Attachment H).
Public Benefits
After reviewing the Core Campus application against the public benefit scoring criteria in the
Standards and Guidelines, staff determined that the proposed development earned 290 points. (A
minimum of 100 points is required for the City Manager to recommend that the council approve
an application.) Points were awarded for the project through the following benefits:
Density: 50 points (10 points per unit in excess of the minimum code requirement; 50
o
points max)
Green Building Features and Quality of Building Materials: 100 points for planned LEED
o
certification
Accessibility: 40 points (10 points per accessible unit)
o
Location: 100 points for being located within the Downtown Plan Area
o
Financial Analysis
The applicant demonstrated that the project as proposed could not be built but for the benefit of
the tax exemption. Staff and the Loan Advisory Committee reviewed the pro-forma, including
assumptions regarding lease rates, operating costs, capitalization rate, lender underwriting
criteria, interest rate assumption, and market expected rate of return. The committee confirmed
the financial assumptions used in the analysis and unanimously concluded that the tax exemption
is needed to generate a return on investment sufficient to attract the required equity investment.
(See Attachment I for the financial analysis that was also provided in the May 29 AIS.)
Tax Impact
The Hub in Eugene would continue to generate property tax revenue on the land. Staff estimates
the property tax paid would be $11,200 in year one. After 10 years, the entire development would
be taxable, estimated at $620,000 in year 11. Core Campus states that the MUPTE is vital to the
development and, if it is denied, the 12-story housing development would not be built. The
chronically underdeveloped site is zoned C-2, community commercial for medium density
commercial. The surrounding area is a mix of fast food and small format motels. If the Core
Campus project does not move forward, the property is likely to develop in a similar manner as
the surrounding area, which would produce less value and tax revenue.
Need for Tax Exemptions to Encourage Ground Floor Commercial
Core Campus proposes the potential inclusion of approximately 4,430 square feet of ground floor
commercial space. The ground floor commercial use is considered to provide public benefit as
commercial/retail uses in this area would support downtown vitality and the opportunity for
project residents and others in the area to easily walk to the proposed commercial/retail services.
There are risks associated with tenanting ground floor commercial at lease rates that can support
the cost of constructing the space. Additionally, mixing uses within one building typically adds
S:\CMO\2013 Council Agendas\M130610\S130610B.doc
construction costs related to building code requirements. Allowing the MUPTE to include the
ground floor commercial/retail space would improve the financial feasibility of incorporating the
space into the project and stimulate a desired form of mixed-use development.
Timing
June 17 is reserved for consideration of the Core Campus project; the City Manager’s
recommendation will be provided with the agenda item summary. This application was submitted
on January 24. By state statute and code, if the council has not acted within 180 days from the
application date, the application would be deemed approved.
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
o
corridors and in core commercial areas.
Meet the 20-year, multi-family housing need within the existing Urban Growth
o
Boundary.
Make compact urban development easier in the downtown, on key transit corridors,
o
and in core commercial areas.
Protect, Repair and Enhance Neighborhood Livability.
Implement the Opportunity Siting (OS) goal to facilitate higher density residential
o
development on sites that are compatible with and have the support of nearby
residents. Implement a toolbox of incentives that support the achievement of OS
outcomes.
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
S:\CMO\2013 Council Agendas\M130610\S130610B.doc
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
COUNCIL OPTIONS
This work session is an opportunity to provide information and receive feedback on the proposed
Core Campus development. No formal action is requested.
CITY MANAGER’S RECOMMENDATION
The City Manager will use the feedback obtained at this work session to inform his recommendation
on the Core Campus MUPTE application.
SUGGESTED MOTION
No motion is necessary at this time.
ATTACHMENTS
A.Location of Proposed Project and Project Rendering
B.Research on Other Similar Programs
C.Student Population Forecast
D.Additional Financial Analysis
E.TIA Requirements and Bike/Ped Information
F.Local Hiring Information
G.Written Comment
H.Email from DNA Chair with Results from Steering Committee Vote (provided in 5/29 AIS)
I.Financial Analysis (provided in 5/29 AIS)
A copy of the MUPTE application for Core Campus is available in the Council Office and online at
www.eugene-or.gov/downtownprojects.
FOR MORE INFORMATION
Staff Contact: Amanda Nobel Flannery
Telephone: 541-682-5536
E-mail: amanda.nobelflannery@ci.eugene.or.us
S:\CMO\2013 Council Agendas\M130610\S130610B.doc
ATTACHMENT A
Location of Proposed Project
Project Rendering
Attachment B
Research on Other Programs
Staff was asked about other college town communities where housing developers targeting student
tenants qualified for public incentives. Found examples fall into two categories. First, those
developments where student tenants were major elements in anchoring larger, mixed-use projects that
took advantage of local, state, and federal public resources and second, those where the developer
utilized an existing tax incentive programs.
Examples include:
Government Property Lease Excise Tax (tax abatement) in Arizona
th
West 6 Student Housing Project in Tempe (375 units)
R
One East Broadway Center in Tucson (196 units)
R
-- under consideration)
R
Brownfield Tax Abatement through Michigan Economic Growth Authority in Michigan
500BR Union at Dearborn Student Housing in Dearborn, MI
R
Tax Abatement authorized under Blighted Property statute in Missouri
Approximately 72 units with 4BRs at Bear Village in Springfield, MO
R
Ten-year tax abatement by City Council vote
R
Many communities enter into public-private partnerships to create mixed-use developments that
prominently feature student targeted housing to amplify the economic benefits of having a college or
university in their community.
Examples include:
$100 million project; 150 apartments; 20,000sf concept grocer; 20,000sf Barnes& Noble;
R
1,500 parking spaces; office and retail; 1,200 estimated new jobs; $2.5 million annual
sales tax, $1.8 million in income tax and $600,000 in annual hotel tax
Public Incentives given: County of Monroe Industrial Development Agency provided
R
$13.5 million in tax abatement; $800,000 in federal funds; $17 million in public
infrastructure improvements by City
Regional Council Initiative; $20 million in HUD Section 108 loan to City of Rochester
Storrs Town Center in Storrs, CT
Project in support of UCONN
R
$220 million mixed-use project with $20 million in public support
R
127 apartments, 28,000sf retail
R
ATTACHMENT C
Student Population Forecast Summary
University of Oregon:
Fall 2012 full-time student enrollment: 21,917
The Oregon University System is projecting U of O enrollment growth of
approximately 1% per year. (Note: Historically, actual enrollment growth has
exceeded OUS projections.)
Over the past five years, full-time enrollment has increased by 23% (increase of
4,051 students).
Over the past five years, approximately 3,000 newly constructed bedrooms have
been added in the university area (including 450 on campus).
An additional 1,600 bedrooms are expected to be completed for the 2013-14 year.
Approximately 4,100 (19%) of the full-time students live on-campus.
Approximately 17,800 (81%) of the full-time students live off-campus:
Based on survey information referenced by Corey Dingman (Duncan &
o
Brown Real Estate Analysis) at the May 22 council workshop, an estimated
8,000 privately-owned rental bedrooms are in the university area.
Therefore, approximately 45% of all full-time students (10,000 students) are
o
presumed to live throughout the community, outside of the university area.
Core Campus’s proposed 501 bedrooms could accommodate less than 3% of those
students living off-campus.
Lane Community College & Northwest Christian University:
Combined full-time total enrollment of approximately 16,000.
Over the past five years, LCC’s full-time enrollment has increased 39% (increase of
4,311 students).
LCC is projecting enrollment to stabilize at the current level.
With enrollment of only 623 students, NCU’s future enrollment impact on housing
demand is minimal.
ATTACHMENT D
Additional Financial Analysis
Proforma: Six-Year Tax Exemption
Below is the 10-year proforma under a scenario where Core Campus receives a tax
exemption for six years. The average cash on cash for the 10-year period is 8.5%.
With MUPTEYear 1Year 2Year 3Year 4Year 5Year 6Year 7Year 8Year 9Year 10
Income$ 4,649,100$ 4,695,600$ 4,742,500$ 4,790,000$ 4,837,900$ 4,886,200$ 4,935,100$ 4,984,500$ 5,034,300$ 5,084,600
- Vacancy$ 232,500 $ 234,800 $ 237,100 $ 239,500 $ 241,900 $ 244,300 $ 246,700 $ 249,200 $ 251,700 $ 254,200
= Effective Gross Rent$ 4,416,600$ 4,460,800$ 4,505,400$ 4,550,500$ 4,596,000$ 4,641,900$ 4,688,400$ 4,735,300$ 4,782,600$ 4,830,400
- Operating Exp$ 1,413,300$ 1,427,500$ 1,441,700$ 1,456,200$ 1,470,700$ 1,485,400$ 1,500,300$ 1,515,300$ 1,530,400$ 1,545,700
- Property Tax
$ (449,000)$ (462,500)$ (476,400)$ (490,700)$ (505,400)$ (520,600)$ - $ - $ - $ -
(saved by MUPTE)
= NOI$ 3,452,300$ 3,495,800$ 3,540,100$ 3,585,000$ 3,630,700$ 3,677,100$ 3,188,100$ 3,220,000$ 3,252,200$ 3,284,700
- Debt Service$ 2,491,522$ 2,491,522$ 2,491,522$ 2,491,522$ 2,491,522$ 2,491,522$ 2,491,522$ 2,491,522$ 2,491,522$ 2,491,522
= CF$ 960,778 $ 1,004,278$ 1,048,578$ 1,093,478$ 1,139,178$ 1,185,578$ 696,578 $ 728,478 $ 760,678 $ 793,178
Cash on Cash Return 8.7%9.1%9.5%9.9%10.4%10.8%6.3%6.6%6.9%7.2%
Proforma: Five-Year Tax Exemption
Below is the 10-year proforma under a scenario where Core Campus receives a tax
exemption for five years. The average cash on cash for the 10-year period is 8.1%.
With MUPTEYear 1Year 2Year 3Year 4Year 5Year 6Year 7Year 8Year 9Year 10
Income$ 4,649,100$ 4,695,600$ 4,742,500$ 4,790,000$ 4,837,900$ 4,886,200$ 4,935,100$ 4,984,500$ 5,034,300$ 5,084,600
- Vacancy$ 232,500 $ 234,800 $ 237,100 $ 239,500 $ 241,900 $ 244,300 $ 246,700 $ 249,200 $ 251,700 $ 254,200
= Effective Gross Rent$ 4,416,600$ 4,460,800$ 4,505,400$ 4,550,500$ 4,596,000$ 4,641,900$ 4,688,400$ 4,735,300$ 4,782,600$ 4,830,400
- Operating Exp$ 1,413,300$ 1,427,500$ 1,441,700$ 1,456,200$ 1,470,700$ 1,485,400$ 1,500,300$ 1,515,300$ 1,530,400$ 1,545,700
- Property Tax
$ (449,000)$ (462,500)$ (476,400)$ (490,700)$ (505,400)$ - $ - $ - $ - $ -
(saved by MUPTE)
= NOI$ 3,452,300$ 3,495,800$ 3,540,100$ 3,585,000$ 3,630,700$ 3,156,500$ 3,188,100$ 3,220,000$ 3,252,200$ 3,284,700
- Debt Service$ 2,491,522$ 2,491,522$ 2,491,522$ 2,491,522$ 2,491,522$ 2,491,522$ 2,491,522$ 2,491,522$ 2,491,522$ 2,491,522
= CF$ 960,778 $ 1,004,278$ 1,048,578$ 1,093,478$ 1,139,178$ 664,978 $ 696,578 $ 728,478 $ 760,678 $ 793,178
Cash on Cash Return 8.7%9.1%9.5%9.9%10.4%6.0%6.3%6.6%6.9%7.2%
Additional Payments to the City
At the May 29 work session, staff provided information on potential guaranteed payments
Core Campus could make to the City in excess of the land property tax during years six
through ten. The payments total $955,000 and could be directed to an affordable housing
fund.
Below is the 10-year pro-forma with the MUPTE and the additional payments to the City
that was presented at the May 29 work session. The average cash on cash return for the
10-year period is 9.7%.
With MUPTEYear 1Year 2Year 3Year 4Year 5Year 6Year 7Year 8Year 9Year 10
Income$ 4,649,100$ 4,695,600$ 4,742,500$ 4,790,000$ 4,837,900$ 4,886,200$ 4,935,100$ 4,984,500$ 5,034,300$ 5,084,600
- Vacancy$ 232,500 $ 234,800 $ 237,100 $ 239,500 $ 241,900 $ 244,300 $ 246,700 $ 249,200 $ 251,700 $ 254,200
= Effective Gross Rent$ 4,416,600$ 4,460,800$ 4,505,400$ 4,550,500$ 4,596,000$ 4,641,900$ 4,688,400$ 4,735,300$ 4,782,600$ 4,830,400
- Operating Exp$ 1,413,300$ 1,427,500$ 1,441,700$ 1,456,200$ 1,470,700$ 1,485,400$ 1,500,300$ 1,515,300$ 1,530,400$ 1,545,700
- Property Tax
$ (449,000)$ (462,500)$ (476,400)$ (490,700)$ (505,400)$ (520,600)$ (536,200)$ (552,300)$ (568,900)$ (586,000)
(saved by MUPTE)
$ - $ - $ - $ - $ - $ 30,000$ 60,000$ 140,000 $ 250,000 $ 475,000
- Add'l Pymt to City
= NOI$ 3,452,300$ 3,495,800$ 3,540,100$ 3,585,000$ 3,630,700$ 3,647,100$ 3,664,300$ 3,632,300$ 3,571,100$ 3,395,700
- Debt Service$ 2,491,522$ 2,491,522$ 2,491,522$ 2,491,522$ 2,491,522$ 2,491,522$ 2,491,522$ 2,491,522$ 2,491,522$ 2,491,522
= CF$ 960,778 $ 1,004,278$ 1,048,578$ 1,093,478$ 1,139,178$ 1,155,578$ 1,172,778$ 1,140,778$ 1,079,578$ 904,178
Cash on Cash Return 8.7%9.1%9.5%9.9%10.4%10.5%10.7%10.4%9.8%8.2%
Staff continues conversations with Core Campus about alternative “additional payment”
scenarios. Staff will provide updated information to council as it becomes available.
Councilor Zalenka inquired about a mechanism to (a) ensure that the proposed later-year
payments are paid and (b) obtain a guarantee from the Core Campus parent company.
Council could require such a guarantee from the company by adding the guarantee as a
condition of approval to the MUPTE resolution; such a condition could make the entire
MUPTE conditional on the execution of a guarantee agreement with the parent company.
Such a guarantee, however, should not be necessary to ensure payment since continuation
of the MUPTE would be conditioned on each of the payments in the later years. For
example, should Core Campus fail to make the proposed $30,000 year six guaranteed
payment, Core Campus would not receive the tax exemption for that year and would
instead pay property taxes on the improved value to the site (estimated tax of $520,600).
ATTACHMENT E
TIA Requirements and Bike/Ped Information
The function of the Traffic Impact Analysis (TIA) is to identify and mitigate adverse impacts
to the existing transportation system. The standard for the TIA requirement for a proposed
development is that the project will generate an increase of more than 100 automobile
trips in a peak hour period. If it is determined that this amount of traffic causes the traffic
standards in the system to fail, mitigation measures may be required from the developer.
By code, the TIA only looks at the impact of automobile traffic on the system, and does not
typically analyze the impact in terms of bicycle or pedestrian traffic. We assume that Core
Campus will require a TIA, although that will be determined prior to the submittal of
building permits.
The mixed use/downtown code amendment project, which is an implementation of
Envision Eugene, may have bearing on the Core Campus project, particularly the
requirement for a TIA. Since the downtown core is built out to a well-developed grid of
streets, signals and sidewalks, the TIA for projects downtown, excluding the EWEB
property, is not considered an effective or necessary planning tool for evaluating or
mitigating traffic impacts. The transportation infrastructure downtown is already in place,
and any new development is highly unlikely to result in required improvements, such as
street widening or additional signals. Additionally, the TIA measures the impact in terms of
intersections, and the downtown street grids offer numerous options in terms of alternate
paths. For downtown, the access management review may be sufficient to address any
concerns about the impact of a new project, including where traffic from the project enters
the downtown grid. In contrast, the EWEB property does not yet have the transportation
infrastructure in place, and therefore there is a need to build the system as development
occurs over the site.
The proposal to remove the requirement for the TIA as well as lower the Level of Service
standardfor most of downtown, in addition to the other code amendments, has been the
subject of a Planning Commission public hearing and subsequent deliberation and will be
the subject of a City Council public hearing in July. Council will have the opportunity to
approve, change or deny the proposed code amendments later in the summer.
Bike & Pedestrian Plan Provided by Core Campus
Based on information provided by Core Campus, they indicate that they share the
Downtown Neighborhood Association’s concern about pedestrian and bicycle safety for
residents at The Hub. Core Campus has committed to creating a design that includes a
barrier in front of The Hub, along East Broadway, so residents and visitors are not tempted
to cross the street in the middle of the block. The design will use streetscape elements to
accomplish this in an attractive, safe manner. Core Campus states that they have used this
approach in other projects. Core Campus will also work with the City to identify options for
a pedestrian crossing at the corner of East Broadway and Ferry Street.
In addition, Core Campus will place signs in the area to encourage pedestrians and
bicyclists to travel the safest routes to the universities as well as to downtown. Residents
and visitors will be given and have access to maps identifying the safest routes. The maps
will be included in move-in packets and will be available from management. During new
resident orientation, as well as at regularly scheduled floor meetings, residents will be
reminded about safe pedestrian and bicycle routes. The area will be well lit, so all traveling
in the area after sundown are visible to each other.
%88%',1)28*
0SGEP,MVMRK-RJSVQEXMSR
%88%',1)28+
;VMXXIR'SQQIRX
;ISTTSWIXLI1948)ETTPMGEXMSRJSVXLI,YF;IJIIPXLIGMX]MWKIXXMRKWEXYVEXIH[MXLETEVXQIRXW
8E\FVIEOWJSVTSXIRXMEPFYWMRIWWIWXLEXLEZIKSSHTE]MRKNSFWXSSJJIVEVIEFIXXIVMRZIWXQIRXJSVXLIGMX]
(MGOERH6SWIQEV]1YPPMKER
7E[]SYVEHZIVXMWIQIRXMR8LI6IKMWXIV+YEVHTIVXEMRMRKXSTYFPMGGSQQIRXWVIKEVHMRK]IXERSXLIV
XE\I\IQTXMSRJSVERI[GSQTER]
;IEVIWXVSRKP]STTSWIH
%WLSQIS[RIVW[ITE]SYVWLEVISJXE\IW[LMGLEGGSVHMRKXSXLI'MX]SJ)YKIRIMWRSXIRSYKL
LIRGIXLIQIEWYVIMRXLIGYVVIRXIPIGXMSREWOMRKJSVQSVIQSRI][LMGL[IGERRSXEJJSVHGSYPH
QEOIYWERHSXLIVWLSQIPIWWMJXLMWMWTEWWIH
;IIRGSYVEKIRI[KVS[XLERHFYWMRIWWIWFYXJIIP%00WLSYPHTE]XLIMVXE\IWXSFITEVXSJSYV
GSQQYRMX]%WMXWXERHWRS[XLEXMWRSXLETTIRMRKERH[IJIIPMXWLSYPH-X WXLIPMXXPIKY]KIXXMRK
LYVXSRGIEKEMR
8LERO]SYJSVFIMRKXLITIVWSRXSVIGIMZIGSQQIRXWJVSQXLITYFPMG
.IRRMJIV0IZIRWSR
8LI'MX]SJ)YKIRIMWGYVVIRXP]I\TIVMIRGMRKEXIVVMFPIFYHKIXHIJMGMX7SFEHXLEX[I ZIFIIREWOIHXSETTVSZI
EFEPPSXQIEWYVIXSVEMWIQSRI]JSVRIGIWWEV]WIVZMGIW
*VSQXLIRYQFIVSJ*SV6IRXJSV*EPPWMKRWXLIVIETTIEVWXSFIEVIEPSZIVEFYRHERGISJWXYHIRXLSYWMRKEPP
EVSYRHXLI9RMZIVWMX]SJ3VIKSR%RHSRISRP]LEWXSHVMZIXLVSYKLXLIYRMZIVWMX]RIMKLFSVLSSHWXSWIIQER]
QSVIWXYHIRXETEVXQIRXFYMPHMRKWMRXLITVSGIWWSJFIMRKFYMPX%RHXLIRXLIVI W'ETWXSRI
+MZIREPPXLMWLS[GERXLI'MX]SJ)YKIRIIZIRGSRWMHIVMWWYMRKERSXLIVTVSTIVX]XE\I\IQTXMSRJSVWXYHIRX
LSYWMRKEXXLMWXMQI#
,EZI]SYEPPKSRIGSQTPIXIP]QEH##
7MRGIVIP]
7XYEVX8LSQEW
3PMZI7X
)YKIRI
NOBEL FLANNERY Amanda
From:Dennis Casady <dennis427@gmail.com>
Sent:Thursday, May 23, 2013 11:18 AM
To:NOBEL FLANNERY Amanda
Subject:MUPTE regarding HUB
Iamverymuchopposedtotheproposed12storyapartmentbuilding(TheHUBonFranklinBlvd.)receivingtheMUPTE.
Anyonewithcommonsensewillrealizethatthiswillonlybeadditionalstudenthousinginamarketwherethereis
alreadytoomanyvacancies.ThedowntownLCCapartmentbuildinghasyettofillup.TheCapstoneprojectwillseethe
sameresults.
TheCityneedstostopgivingtaxrelieftotheseoutoftowndevelopersandinvestorsthatnointerestintheCityof
Eugeneotherthatwhattheycangetoutofit.
Wehaveadesirableplacetoliveandpeoplewillcontinuetomovehereregardlessandwehavenoobligationtojust
GIVEitaway.
IfwehadstoppedtheMUPTEearlier,theCitywouldnothavehadtohavetheproposedMeasure20211(citymonthly
fee)ontheballot.
TheCitywouldhaveenoughmoneyinthebudgetandwewouldn'tbecontemplatingcuttingjobsandservices.
Thankyou,
DennisCasady
P.O.Box5028
Eugene,OR97405
1
NOBEL FLANNERY Amanda
From:Paul Cauthorn <paulcauthorn@gmail.com>
Sent:Thursday, May 23, 2013 1:21 PM
To:NOBEL FLANNERY Amanda
Subject:MUPTE NO HUB
Giving away tax breaks for student housing is a really stupid idea. There is already way too much student
housing and the market is glutted.
Boom bust cycles are partially caused by the manipulation of the government. Please end the subsidies for out
of state corporations. Please stop picking the winners and losers. Leave the market alone.
The idea that people will only build if the government exempts them from paying their fair share of taxes is
totally naive. Don't be fooled by their claims.
No more tax breaks!
Thank you,
Paul Cauthorn
PO Box 5263
Eugene, OR 97405
1
NOBEL FLANNERY Amanda
From:Richard Romm <franklin51@aol.com>
Sent:Wednesday, May 29, 2013 3:13 PM
To:NOBEL FLANNERY Amanda
Subject:student housing project on Broadway
Hello Ms Flannery,
You have asked for comments to the Eugene Planning and Development Dept. I've had a chance to look
at the rendering of the new student housing building proposal on Broadway.
As a preface, I am a longtime (since 1965) resident of Eugene and although now retired, spent 31 years
working in the Student Housing Department of the U of O. As a younger man, I also had the educational
experience of working for my uncle, a world famous architectural photographer, Julius Shulman, who died
several years ago at age 99, garnering numerous awards from the A.I.A, and much recognition. I learned so
much from him, not only about architecture but also about siting and surroundings regarding buildings,
especially those of this size.
After looking at the rendering online, II don't see how it can fit on that property but obviously, it
can. It actually is rather striking, architecturally, but I think a building of that size on that piece of property is
totally inappropriate. It would look so much nicer and so much more in scale if it were on a larger piece of land
and had some significant setbacks from the street with the appropriate landscaping. And....I think it's much too
tall for that location, in spite of its rather interesting facade. Even if there is an underground garage, the auto
and pedestrian traffic that bldg will generate seems a bit (no, a LOT !) too much for that dinky piece of property
fronting along one of the busiest streets in Eugene. What authority does the Planning and Development Dept.
have over such a proposal? Does it have power over what a bulding looks like on a given piece of property? I
suspect again that there are no laws or ordinances governing this.
If some of these non-local or in some cases even non-regional developers have any knowledge of the
future demographics of the student population in Eugene, they would think twice about building here, in view
of the multitude of new student housing spaces recently being constructed or in the process of such. Does the
Planning and Development Dept. take these demographic predictions into its view when approving or not
approving such projects? One short-range example I feel relates to the article in the REGISTER-GUARD that
I read last Sunday talking about how California now has billions of dollars in surplus this year and will probably
try to buoy up some of the severe cuts they made in the past 5 years, including their cuts to higher education in
California. Many students preferred to spend four years at the UO paying high non-resident fees, because they
could not complete their education in California universities in less than five or six years due to cuts in
classes. Now, over the next several years, I suspect this condition will change, especially in the wake of the
large tuition increase slated for 2013/14 at UO. Therefore I think quite a few students will choose to 'stay home'
in California; this will have a significant effect on the population of our university here in addition to the normal
prediction of a more flat graduation rate in Oregon high schools.
Thanks for reading this opinion. Even if you have little or no power to determine how a building looks
or how it is placed on a piece of property I hope the city does NOT approve a property tax waiver; maybe that
will keep it from being built!
Sincerely yours, Richard (Dick) Romm
5120 Nectar Way, Eugene 97405
(541)686.1394
<franklin51@aol.com>
1
NOBEL FLANNERY Amanda
From:ruth anne paul <ra1uha@yahoo.com>
Sent:Wednesday, May 29, 2013 6:48 PM
To:NOBEL FLANNERY Amanda
Subject:RE; MUPTE program
Please....no more tax exemptionsto builders in Eugene! There have already been too many and it
is Eugene's residents/taxpayers who end up paying more in taxes for our city's services etc. as a
result. This makes Growth a negative rather than a positive for all of Eugene. I have been a
resident of Lane County since 1987 and of Eugene since 1991. Sincerely, Ruth Anne Paul, 1755
Kingsley Rd. Eugene, OR 97401
1
0PS]H,IPMOWSR
)YKIRI36
GIPP
PLIPMOWSR$KQEMPGSQ
1E]
6) 1948)%TTPMGEXMSRJSVXLI4VSTSWIH,YFMR)YKIRI%TEVXQIRX4VSNIGX
1E]SV'SYRGMPSVWERH'MX]7XEJJ
-YRHIVWXERHXLEXE'LMGEKSJMVQMWVIUYIWXMRKEXIR]IEVTVSTIVX]XE\FVIEOTSXIRXMEPP]
[SVXLEFSYXQMPPMSRSRETVSTSWIHWXSV] YRMXWXYHIRXLSYWMRKXS[IV
,YF
MR)YKIRI
8LMWTVSNIGX[SYPHLSYWIEFSYX WXYHIRXW
FIHVSSQW
SV SJXLI
9RMZIVWMX]TSTYPEXMSR
I\GPYHMRKYRGPEWWMJMIHERHRSRQEXVMGYPEXIHWXYHIRXW
-
EQSTTSWIHXSXLIKVERXMRKSJ1948)JSVXLMWTVSNIGXERHXLIVIUYIWXWLSYPHFIHIRMIH
)EVPMIVXLMW]IEVXLI'MX]'SYRGMPKVERXIHEXIR]IEVTVSTIVX]XE\I\IQTXMSR[SVXL
EFSYX QMPPMSRJSVEPEVKIWXYHIRXLSYWMRKTVSNIGX[LMGL[MPPLSYWIEFSYX
WXYHIRXW
FIHVSSQW
SVEFSYX SJXLI9RMZIVWMX]TSTYPEXMSR-EHZMWIHXLI'MX]
'SYRGMPMR%TVMPVIKEVHMRKXLIIEVPMIV1948)TVSTSWEPXLEXMRQ]STMRMSRXLI
9RMZIVWMX]RIMKLFSVLSSHVIRXEPQEVOIXW[IVIETTVSEGLMRKWEXYVEXMSR-TVSZMHIH
'SYRGMPQIQFIVW[MXLQ]VIWIEVGLHIXEMPMRKXLIREXYVISJXLII\MWXMRKSVETTVSEGLMRK
WEXYVEXMSREXXLEXXMQI-LEZIWMRGIYTHEXIHQ]VIWIEVGL
7MRGI SJJGEQTYWLSYWMRKJSV9RMZIVWMX]SJ3VIKSRWXYHIRXWLEWFIGSQISVMW
FIGSQMRKEZEMPEFPIMRERHRIEV9RMZIVWMX]RIMKLFSVLSSHWXSXLIXYRISJEFSYX
ETEVXQIRXTVSNIGXWTVSZMHMRKEFSYX ETEVXQIRXYRMXW
FEWIHYTSRTIVQMX
ETTPMGEXMSRWJVSQXSGYVVIRX
8LIWIETEVXQIRXWLEZISV[MPPLEZIVSYKLP]
FIHVSSQWJSV WXYHIRXW
EWWYQMRKSRIWXYHIRXTIVFIHVSSQ
8LMWETEVXQIRX
HIZIPSTQIRXLEWFIIRQSWXP]MRERHEVSYRHXLI;IWX7SYXLERH)EWX9RMZIVWMX]
RIMKLFSVLSSHW8[IPZISJXLIWITVSNIGXWFYMPHMRKWVITVIWIRXMRKEFSYX
FIHVSSQWWXYHIRXWVIGIMZIHSV[MPPVIGIMZI1948)
EFSYX SJXLIXSXEP
8LI FIHVSSQWMRGPYHISRP]XLIQSVIVIGIRXGSRWXVYGXMSRERHHSIW
RSXMRGPYHITVIZMSYWP]I\MWXMRKETEVXQIRXWMRERHEVSYRHXLI9RMZIVWMX]RIMKLFSVLSSHW
SVMRXLI%YX^IRWXEHMYQEVIE-XEPWSHSIWRSXMRGPYHIVIGIRXGSRWXVYGXMSRSJLSYWMRK
HS[RXS[RWYGLEWXLI0''HS[RXS[RGEQTYWLSYWMRKGSRWMWXMRKSJETEVXQIRXWERH
FIHWWXYHIRXW8LISJJGEQTYWLSYWMRKJSV WXYHIRXWGSRWXVYGXIHSVTPERRIH
JSVGSRWXVYGXMSRWMRGI VITVIWIRXWLSYWMRKJSVEFSYX SJXLIXSXEP9RMZIVWMX]
WXYHIRXTSTYPEXMSR
RSXMRGPYHMRKXLIGYVVIRXP]TVSTSWIH1948)TVSNIGX
4EKI
8LI9RMZIVWMX]VIGIRXP]
FYMPXXLI)EWX'EQTYW6IWMHIRGI,EPP[LMGLLEW
VSSQW3JJGEQTYWWXYHIRXLSYWMRKHIZIPSTQIRXXSKIXLIV[MXLXLI9RMZIVWMX]SR
GEQTYWHIZIPSTQIRX[MPPVIWYPXMRXSXEPLSYWMRKGSQTPIXIHSVTPERRIHXSFIGSQTPIXIH
WMRGI JSVSZIV WXYHIRXWSVEFSYX SJXLIGYVVIRXYRMZIVWMX]WXYHIRX
TSTYPEXMSR
RSXMRGPYHMRKXLIGYVVIRXP]TVSTSWIH1948)TVSNIGX
%GGSVHMRKXSE9RMZIVWMX]WXYH])YKIRILEHE ZEGERG]VEXIJSVETEVXQIRXWMR
8LIWXYH]RSXIHXLEXEZEGERG]VEXISJ [EWMHIEPERHER]XLMRKSZIV [SYPHFI
GSRWMHIVIHSZIVFYMPX7II9RMZIVWMX]SJ3VIKSR6IWMHIRGI,EPP*IEWMFMPMX]ERH1EVOIX
(IQERH7XYH]*MREP6ITSVX7ITXIQFIV
937XYH]
EX %FSYX SJXLI
VIGIRXWXYHIRXLSYWMRKFSSQ
LEWFIIRSVMWFIMRKGSQTPIXIHEJXIV
GIVXMJMGEXIWSJSGGYTERG]MRERHEJXIV
,SYWMRKJSVEFSYX SJXLI9RMZIVWMX]
WXYHIRXTSTYPEXMSRLEWFIIRSVMWFIMRKGSQTPIXIHEJXIV8LMWUYERXMX]SJ
EHHMXMSREPWXYHIRXLSYWMRKMRXLIEVIEWYVVSYRHMRKXLI9RMZIVWMX]QSWXPMOIP]LEW
MRGVIEWIHSV[MPPMRGVIEWIXLIZEGERG]VEXIMRXLI9RMZIVWMX]EVIEWMKRMJMGERXP]EFSZI
GVIEXMRKERSZIVFYMPXWMXYEXMSR
8LI'MX] WETTVSZEPSJXLITVSTSWIH1948)WYFWMHM^MRKLSYWMRKJSVEREHHMXMSREP
WXYHIRXWEREHHMXMSREP SJXLI9RMZIVWMX]WXYHIRXTSTYPEXMSR[SYPHJYVXLIV
I\EGIVFEXIXLISZIVFYMPHMRKSJ9RMZIVWMX]WXYHIRXLSYWMRK
3YVJEQMP]MWGYVVIRXP]EFWSVFMRKXLIMQTEGXSJXLIWEXYVEXMSR;IFYMPXEYRMX
&6YRMX
ETEVXQIRXFYMPHMRKMRXLI;IWX9RMZIVWMX]RIMKLFSVLSSH[MXLSYXXLIFIRIJMX
SJ1948)MR 1]TEVIRXWLEHS[RIHXLITVSTIVX]WMRGIXLI W1]QSXLIV
XLVSYKLER00'S[RWXLIETEVXQIRXW7LILEWFIIREVIWMHIRXSJ)YKIRIJSVEFSYX
]IEVW
%XXLIFIKMRRMRKSJXLMWWGLSSP]IEV7ITXIQFIVSJSYVYRMXW[IVIRSXVIRXIH
;IVIHYGIHVIRXXSEXXIQTXXSKIXXLIVIQEMRMRKYRMXWVIRXIHERHSJJIVIHXSVIRXX[SSJ
XLIYRMXWF]XLIFIHVSSQ;IRS[JMREPP]LEZIQYGLSJXLIVIQEMRMRKYRMXWVIRXIHEX
WMKRMJMGERXVIRXHMWGSYRXW
EPPFYXX[SFIHVSSQWMRSRIYRMX
&]Q]GEPGYPEXMSRW[I
PSWXSV[MPPPSWIVSYKLP]MRXLI]IEVHYIXSXLIQEVOIXWEXYVEXMSR
GSQTEVIHXSXLITVMSV]IEV
3JGSYVWI[IWXMPPLEZIXSTE]SYVTVSTIVX]XE\IWIZIRMJ
XLIYRMXWEVIIQTX]WMRGI[IHSRSXLEZIXLIFIRIJMXSJ1948);IEVIPIJXXS[SVV]
[LIXLIV[I[MPPFIEFPIXSVIRXSYVYRMXWERH[LIXLIVVIZIRYIJVSQXLIETEVXQIRXW[MPP
TE]SYVI\TIRWIW8LIPEVKITVSNIGXVIGIRXP]VIGIMZMRK1948)ERHGYVVIRXP]YRHIV
GSRWXVYGXMSRLEWRSXIZIR]IXEJJIGXIHXLIQEVOIXWEXYVEXMSR-EQWYVISYVWMXYEXMSRMW
RSXYRMUYI0''8MXER'SYVX[MXLSV 93WXYHIRXWLEH SGGYTERG]
EWSJ1E]
4EKI
8LIVIMWRSRIIHJSVXLI'MX]XSYWI1948)XSTVSQSXIXLIFYMPHMRKSJWXYHIRX
ETEVXQIRXWMRSVRIEVXLI9RMZIVWMX]RIMKLFSVLSSHW%VIEWGPSWIXSXLI9RMZIVWMX]LEZI
FIIRERHEVIGYVVIRXP]I\TIVMIRGMRKELYKIEQSYRXSJETEVXQIRXGSRWXVYGXMSR8LI
9RMZIVWMX]IRVSPPQIRXMWTPEXIEYMRKWYGLXLEXRI[ETEVXQIRXFYMPHMRKWQE]RIIHXS
GSQTIXIJSVWXYHIRXW[MXLGYVVIRXETEVXQIRXFYMPHMRKWERH[MXLSRGEQTYWLSYWMRK
TVSZMHIHF]XLI9RMZIVWMX]4VSNIGXWFYMPX[MXL1948)ERHSXLIVTYFPMGWYFWMHMIWQE]
FIGSQTIXMRKJSVFYWMRIWW[MXLIEGLSXLIV3RISJXLIIJJIGXWQE]FIVIHYGIHTVSTIVX]
ZEPYIWJSVETEVXQIRXFYMPHMRKW[LMGLEGXYEPP]TE]TVSTIVX]XE\IWSRMQTVSZIQIRXW
[LMGLQE]IZIRXYEPP]VIHYGITVSTIVX]XE\VIZIRYIWJVSQWYGLTVSTIVXMIW
8LI'MX]WLSYPHHMWGSRXMRYIMXWTSPMG]SJYWMRK1948)XSHMWGVMQMREXIEKEMRWXPSGEP
VIWMHIRXW[LSXSSOEVMWOERHMRZIWXIHMRWXYHIRXLSYWMRKETEVXQIRXW-XMWRSXJEMVXS
KVERXPEVKITVSTIVX]XE\I\IQTXMSRWXSSYXSJWXEXIHIZIPSTIVWWYGLXLEXXLIMVETEVXQIRX
FYMPHMRKWGSQTIXIEKEMRWXWQEPPIVETEVXQIRXFYMPHMRKWFYMPXPSGEPP][MXLSYX1948)
1948)WLSYPHRIZIVFIYWIHXSHVMZII\MWXMRKFYWMRIWWIWSYXSJFYWMRIWW8LIKVERXMRK
SJ1948)YRHIVWYGLGMVGYQWXERGIWGSYPHIVSHIXLIWYTTSVXSJ)YKIRIGMXM^IRWJSV
'MX]KSZIVRQIRX
8LI'MX]WLSYPHPMQMXXLI1948)TVSKVEQWSMXMWJSGYWIHSRPS[MRGSQILSYWMRK
SYXWMHISJXLI9RMZIVWMX]EVIEMREVIEW[LMGL[SYPHGPIEVP]RSXFIHIZIPSTIH[MXLSYX
XLIFIRIJMXSJ1948)8LI'MX]WLSYPHRSXGSRXMRYIXSKVERX1948)VIUYIWXWSV
TVSZMHISXLIVTYFPMGWYFWMHMIWJSV9RMZIVWMX]WXYHIRXLSYWMRK
8LERO]SY
0PS]H,IPMOWSR
4EKI
NOBEL FLANNERY Amanda
From:HAMMOND Laura A
Sent:Friday, May 31, 2013 1:32 PM
To:NOBEL FLANNERY Amanda
Cc:SULLIVAN Mike C; BRAUD Denny
FW: Core Campus project
Subject:
FYI
From: Sanders Patrice (US Partners) [mailto:patrice.sanders@partners.mcd.com]
Sent: Friday, May 31, 2013 12:43 PM
To: *Eugene Mayor, City Council, and City Manager
Subject: Core Campus project
DearMayorandCityCouncil,
AsalocalbusinessownerandalongtimeresidentofEugene,Ihavebeenextremelyexcitedoverthedevelopmentthat
hasbeenoccurringthispastyearorso;especiallyinthecoreofdowntownandaroundtheUniversity.Iseethe
differenceinmybusiness,thediversityofmycustomersandIpersonallyenjoyallthatishappeningwithnew
restaurantsandplacestoshopandvisit.
IamwritingtoyoutoexpressmysupportfortheCoreCampusproject.Iattendedameetingafewmonthsagotolearn
moreaboutthedevelopmentandcameawayveryimpressedwiththeforethoughtthatwentintotheplan.
First,IamverypleasedtoseethecontinueddevelopmentalongthecampuscorridorandalongFranklinBlvd.This
projectwouldfillaneyesorepieceofpropertyandserveasagatewaytothecampusasstudents/familyandvisitors
arriveforvariousreasons.Italsoplacesalargenumberofstudentsmuchclosertocampusandwouldalsoenhancethe
futuredevelopmentoftheRiverfrontarea.
IunderstandtheĐŝƚLJ͛ƐconcernwiththetaxexemptionrequesthoweverbecauseofthatIunderstandthedesignofthe
buildingwillbeLEEDcertified.Alongwiththeminimalparkingtheyareoffering,encouragestheuseofalternative
transportationwhichallfitsintotheĐŝƚLJ͛Ɛgoalforsustainability.Iseethisasaverygoodinvestmentforthefuture
beyondtherateoftaxesthatwillbepaidaftertheexemptperiodends.
Ihopeyouwillconsidersomeofthesepointsasyoudiscussthisprojectfurther.Ifeelthepositiveenergyandamseeing
themomentumƚŚĂƚ͛ƐbeingcreatedtoenhanceourcityandtheUniversity./͛Ěliketoseethatcontinueandsupportthe
factthatitisbeingdonewithbalancedobjectiveswhichmakesitawinforall.
Sincerely,
PattiA.Sanders
Owner/Operator
MDSandersRestaurants
1
NOBEL FLANNERY Amanda
From:Steven Church <Steve@cobaltservicesinc.com>
Sent:Friday, May 31, 2013 3:43 PM
To:*Eugene Mayor, City Council, and City Manager
Subject:MUPTE
Iwouldliketoseethis12storystudentprojectgoforwardtoallowbothhousingandcreatingallthelocalbusinessto
supportboththeprojectaswellastheconcentrationofstudentstoonearea!
Steven Church
steve@cobaltservicesinc.com
http://www.cobaltservicesinc.com
IT Consultant
Cobalt Computer Services Inc
Message Number: 541-393-2545 x 1
Fax Number: 541-393-2582
CONFIDENTIALITY AND PROPRIETARY INFORMATION NOTICE: This email including attachments, is covered by the Electronic Communications Privacy Act
(18 U.S.C. 2510-2521) and contains confidential information belonging to the sender which may be legally privileged. Nothing contained in this message or in any
attachment shall constitute an Electronic Signature or be given legal effect under 44 U.S.C. 3504 Sec. 1707. The information is intended only for the use of the
individual or entity to which it is addressed. If you are not the intended recipient, you are hereby notified that any disclosure, copying, distribution or the taking of
any action in reliance of the contents of this information is strictly prohibited. If you have received this electronic transmission in error, please immediately notify us
by phone or arrange for the return of the transmitted information to us.
1
NOBEL FLANNERY Amanda
From:McGlade, Charles (MD) <ctm@rapc.com>
Sent:Friday, May 31, 2013 4:23 PM
To:*Eugene Mayor, City Council, and City Manager
Subject:MUPTE project
Thisisanoteinfavorofproceedingwiththeprojectgiventhepositiveimpactonthelocaleconomy.Ihopethatyou
willconsiderlocaljobsinyourdecisionprocess.
ChuckMcGlade
CONFIDENTIALITY & PRIVACY NOTICE: The information contained in this email transmission is privileged, proprietary and/or confidential. Unauthorized use,
review and/or distribution of this information is strictly prohibited. If you have received this email in error, please promptly notify the sender so our records can be
corrected. Please delete the original and copy of this email and destroy any print copies that may have been generated from this transmission.
1
NOBEL FLANNERY Amanda
From:WALKER Clayton (SMTP)
Sent:Saturday, June 01, 2013 9:56 AM
To:*Eugene Mayor, City Council, and City Manager
Cc:WALKER Clayton (SMTP)
Testimony regarding MUPTE
Subject:
TotheMayorandCityCouncil;IsupportgrantingMUPTEstatustotheCORECAMPUSprojectprimarilyfromafairness
perspective.Theprogramwasavailabletothedeveloperswhentheybeganinvestingintheplanningprocessandto
withholditnowwouldnotberightsinceitdoesappeartomeetallofthecitiesgoalsforqualifying.Weshouldtreatall
applicantsequally,Thankyou.
Clayton W. Walker, CCIM
| Principal Broker
C.W. Walker & Associates, LLC
Commercial Real Estate Brokers & Consultants
1225 Lawrence St | Eugene | OR 97401
P.O. Box 1338 | Eugene | OR 97440
Phone 541.484.4422 | Fax 541.484.1337
cwwalker@ccim.net
www.cwwalker.net
1
NOBEL FLANNERY Amanda
From:BRIAN WEAVER <brian1813@msn.com>
Sent:Sunday, June 02, 2013 9:31 PM
To:NOBEL FLANNERY Amanda
Cc:ZELENKA Alan; TAYLOR Betty L; PRYOR Chris E; BROWN George R; POLING George A;
EVANS Greg A; SYRETT Claire M; CLARK Mike
Subject:Proposed MUPTE for hub
Hi Amanda,
I oppose the proposed MUPTE for the Hub project on 505 E. Broadway, in Eugene.
If this MUPTE is granted, the local taxpayers will have to pay for the project occupant's use of City provided
services, and City property taxes on yet another real estate development. It will also give an unfair advantage to
a corporate developer based in Chicago and help upset Eugene’s real housing market. Most local developers
are not granted such an exemption.
I think it’s rather obvious by now that the City’s essential services should be given a higher priority than
enriching an out-of-state developer. Ignoring this fact will deepen the resentment toward the local government,
and ruin any chance of passing a possible bond measure for a new city hall. Remember the 2-to-1 beating of the
City fee measure.
I know some MUPTE proponents claim that tax exemptions will pay dividends in the future. However with the
City’s overdrawn general fund, this MUPTE includes a huge risk that services may have to absorb.
Thank you,
Brian Weaver
Ward #1
1
NOBEL FLANNERY Amanda
From:gordon boltz <gordonboltz777@gmail.com>
Sent:Sunday, June 02, 2013 10:44 AM
To:*Eugene Mayor, City Council, and City Manager
Subject:MUPTE student housing on Franklin
I am writing to encourage your "yes" vote on the 12 story student housing development on
Franklin. This project would create local jobs (the Developer historically hires between 85% and 95%
local people for their projects), and fit nicely into the downtown core where higher density is
encouraged. As enrollment in the University of Oregon increases additional housing will be in greater
demand.
Thank you for your consideration in this matter.
Gordon Boltz
574 Wimbledon Ct.
Eugene, OR 97401
1
%QERHE4PIEWIJMRHEXXEGLIHQ]GSQQIRXWSJXLI'SVI'EQTYW,YF1948)ETPPMGEXMSR4PIEWIIRXIVMRXS
XLIVIGSVHERHJSV[EVHXSXLI'MX]1EREKIV'MX]1E]SVERH'MX]'SYRGMPSVW
8LERO]SY'EVSP]R.EGSFW
1E]SVERH'MX]'SYRGMP -WXVSRKP]YVKI]SYXSETTVSEGL]SYVGSRWMHIVEXMSR
SJXLMW1948)ETTPMGEXMSRXLVSYKLXLII]IWSJXLIGSQQYRMX]%WWIIRSR
XLIKVSYRHXLIVIEVILEPJEHS^IRPEVKIWGEPIERHGPSWIXSEHS^IRWQEPPWGEPI
WXYHIRXETEVXQIRXWYRHIVGSRWXVYGXMSREW[I[VMXI%PPEVIFIMRKHSRI
[MXLSYXE1948)
EWSJGSYVWILEZIQSWXEPPSJXLSWIGSQTPIXIHMRXLIEVIE
EVSYRHXLI9RMZIVWMX]MRXLITEWXWIZIVEP]IEVW
8LITVSJMXWJSVQYPXM
YRVIPEXIHEHYPXLSYWMRK
[LIVIVIRXWEVIWIXF]XLIFIHVSSQ
EVIWSKVIEXXLEX
HIZIPSTIVWLEZIEPPXLIMRGIRXMZIXLI]RIIHEWXLI]LEZIQSVIXLERTVSZIH
%XXLIIRHSJXLMWWYQQIVWIZIVEPXLSYWERHRI[FIHVSSQW[MPPGSQISRPMRI
HIWTMXIXLIJEGXXLEXXLITEWXWGLSSP]IEVXLIGPSWIMRRIMKLFSVLSSHWLEZIWIIR
JSVVIRXWMKRWHMWTPE]IHF]FSXLFVERHRI[TVSNIGXW
MR66^SRIW
EW[IPP
EWMRJVSRXSJ[LEX[IVIWMRKPIJEQMP]LSQIW
MR6^SRIW
8LI,YFQSWX
YRRIIHIH
GIVXEMRP]JEPPWMRXSXLIGEXIKSV]SJLSYWMRK
-JFIMRKYRRIIHIH[EWR XIRSYKLSJEREVKYQIRXXLIWGEPISJXLMWTVSNIGXMW
KVSWWP]MRETTVSTVMEXIXSMXWWYVSYRHMRKW%XSRIIRHFSXLXLI*IHIVEP'SYVX
,SYWIERHRYQIVSYWFYMPHMRKWHS[RXS[REVIGPSWIVXSLEPJXLITVSTSWIH
LIMKLX-RXLISXLIVHMVIGXMSRXLI9RMZIVWMX]'EQTYWLEWEKIRIVEPTSPMG]SJ
JSYVWXSV]FYMPHMRKLIMKLX-XMWEPWSMVVIWTSRWMFPIXSFYMPHWYGLEPEVKIWGEPI
TVSNIGXSRWYGLEWQEPPPSXzEFWSPYXIP]RSSTIRWTEGIJSVX[IRX]]IEV
SPHW8LI][MPP[MXLSYXEHSYFXFITEVX]MRKMRXLIWXVIIXERHMRXLIRIEVF]
VIWMHIRXMEPRIMKLFSVLSSHW
;LMPIXLIVIEVIQER]FIRIJMXWXSXLIGSQQYRMX]JVSQMRGVIEWIHHIRWMX]
FSXL
VIWMHIRXMEPERHGSQQIVGMEP
EPSRKXVERWMXGSVVMHSVWWXYHIRXWMRXLMW
TEVXMGYPEVPSGEXMSRMWI\XVIQIP]MVVIWTSRWMFPI[LIRSRIGSRWMHIVWXLIWEJIX]
SJXLIWI]SYRKTISTPI8LIVIMWRSPMKLXSVGVSWW[EPOEX4EXIVWSR7XVIIXERH
IZIRMJXLIVI[IVISRI[SYPHLEZIXSEWWYQIXLEXWXYHIRXW[EPOMRKERH
FMOMRKXSXLI9RMZIVWMX][MPPFIGVSWWMRK*VEROPMR&PZHEXER]ERHEPPTSMRXW
FIX[IIRXLI,YFERHXLI9RMZIVWMX]EXEPPXMQIWSJHE]%XRMKLXSRI[SYPH
LEZIXSEWWYQIXLI][MPPFIGVSWWMRK*VEROPMRERHSXLIVFYW]RIEVF]WXVIIXW
MREPPWXEXIWSJMRIFVMEXMSREWXLI]EVI[IPPORS[RXSHSQSWXRMKLXWSJXLI
[IIOMREPPXLIRIMKLFSVLSSHWXLI]GYVVIRXP]PMZIMR
EPVIEH]
4PIEWIVIQIQFIVXLIWIWXYHIRXWEVIPMZMRKWLSTTMRKIEXMRKSYX
IXGWSQI[LIVIMRSYVGSQQYRMX]8LIMVWTIRHMRK[SR XWYHHIRXP]FI
FVMRKMRKRI[HSPPEVWMRXSSYVGSQQYRMX]ERHMRJEGXXLIMVVIRXQSRI][MPP
EFWSPYXIP]FIXVEZIPMRKSYXSJSYVGSQQYRMX]
3RIPEWXMQTSVXERXTSMRXXLEXXLII]IWMRXLIGSQQYRMX][MPPYRHIVWXERHMW
XLEXXLIEVKYQIRXXLEXXLI,YF[MPPWSQILS[FIRIJMXXLIWYVVSYRHMRK6
JEPWI
RIMKLFSVLSSHWMW8LIWIRIMKLFSVLSSHW[MPPEP[E]WFII\XVIQIP]
EXXVEGXMZIXSWXYHIRXW8LIMVZIV]GPSWIRIWWXSXLI9RMZIVWMX][MPPEP[E]WFI
XLIMVGEPPMRKGEVH-XHSIWR XLYVXXLEXXLIWXVIIXWEVIXVIIPMRIHLSYWIWLEZI
]EVHWHVMZI[E]WJSVTEVOMRKJSVXLSWIXLEX[ERXXSTEVX]XLIVIEVIGSYRXPIWW
FPSGOW[MXLEKVIIEFPIVIWMHIRXWERHJSVXLSWIXLEXHSR XXLIVIEVIWXMPPWSQI
EVIEWSJVIPEXMZITIEGIERHUYMIX8LIMHIEXLEXXLI,YF[SYPHWSQILS[
QEOIXLIWIRIMKLFSVLSSHWEXXVEGXMZIXSJEQMPMIWMWREMZIMJRSXHMWLSRIWX
+MZIRXLIRYQFIVSJJSVWEPIWMKRWMRXLIWIRIMKLFSVLSSHWMXMWUYMXIGPIEV
XLEXJEQMPMIWEVIRSX[MPPMRKXSMRZIWXMRTVSTIVX]MREVIEWSJWGEXXIVIH
ERH
WSQIXMQIWGSRXMRYSYW
FPMKLX8LIMRGVIEWIMRXVEWLZERHEPMWQGVMQIRSMWI
XLVIEXIRMRKFILEZMSVIXGXLEXEGGSQTERMIWMRGVIEWIWMRWXYHIRXHIRWMX]MWRSX
EWIPPMRKJIEXYVIJSVJEQMP]LSQIWMR6RIMKLFSVLSSHWEVSYRHXLI
9RMZIVWMX]w7XEFMPM^MRKxXLIWIRIMKLFSVLSSHW[MPPVIUYMVIWMKRMJMGERXTSPMG]
GLERKIWSRXLITEVXSJXLI'MX]ERHXLI9RMZIVWMX]
-JXLI,YF[IVIXVYP]EW[SRHIVJYPEWXLIETTPMGEXMSREXXIQTXWXSGSRZMRGIXLI
VIEHIVMX[SYPHFIQSZMRKJSV[EVH[MXLSYXE1948)3RILEWXSEWWYQI
XLEXXLIXE\I\IQTXMSRMWE[E]XSWLMJXXLIVMWOXSXLI'MX]zEWOMRKXLI'MX]
XSKYEVERXIIEGIVXEMRPIZIPSJTVSJMXWLSYPHXLIHIZIPSTIVWLEZIIVVIHMRXLIMV
NYHKQIRXEFSYX[LEXMWwRIIHIHxMR)YKIRIEXXLMWXMQI
'EVSP]R.EGSFW
GLEMV7SYXL9RMZIVWMX]2IMKLFSVLSSH%WWSGMEXMSR
NOBEL FLANNERY Amanda
From:Keith Baskett <keithbaskett@comcast.net>
Sent:Monday, June 03, 2013 7:59 AM
To:*Eugene Mayor, City Council, and City Manager
IamalocalbusinessownerwithfivelocationsintheEugene/Springarea.Iamveryexcitedfortheproposed12story
studenthousingonFranklin.ThiswillcontinuetohelpourCityandeconomytomoveforward.Thisisanotherimportant
partofoursustainabilityassmallcitybringingbusinessinfromaroundthecountry.Thiswillalsohelptherevitalization
oftheFranklinarea.
Bestregards,
KeithBaskett
1
NOBEL FLANNERY Amanda
From:John Lawless <jlawless@tbg-arch.com>
Sent:Monday, June 03, 2013 8:14 AM
To:*Eugene Mayor, City Council, and City Manager
Subject:Support for The Hub MUPTE
Dear Mayor and City Councilors,
Little by little, Eugene is growing up in a way that we have proactively envisioned. We need to continue stoking the fire
that MUPTE and many other helpful programs have ignited over the last 10 years to build more momentum. Without
increased density, we will never approach the critical mass necessary to truly and sustainably support the networks of
infrastructure we need to reach our community goals.
I urge you to support this project with full MUPTE opportunities, including the developer’s early pay offer, and don’t close
the damper on the momentum we’ve fire up recently.
Thank you.
|
John Lawless, AIAPrincipal
TBG Architects + Planners
|
132 East Broadway, Suite 200 Eugene, Oregon 97401
|
541.687.1010 x16 jlawless@tbg-arch.com
Please consider the environment before printing this e-mail.
1
NOBEL FLANNERY Amanda
From:Linda O'Bryant <lobryant@comcast.net>
Sent:Monday, June 03, 2013 9:44 AM
To:*Eugene Mayor, City Council, and City Manager
Subject:MUPTE
Ifyougivetaxincentivesforonedeveloperyoushouldgivethesametaxincentivestoalldevelopersthathavetheir
applicationsin.IfyouwanttochangetherulesƚŚĂƚ͛Ɛfine;justĚŽŶ͛ƚdoitinmidstream.Processtheapplicationsin
handthenmakechanges.
LindaK͛ƌLJĂŶƚ͕PrincipalBroker
CRS,PMN,ABR,CSP,GRI,SRES,
Re/MaxHallofFameʹTop1%ofRealtors
EugeneAssociationofRealtorsʹ2012President
OregonAssoc.ofRealtorsʹ20112012
ProfessionalDevelopmentCommittee
OregonStatetŽŵĞŶ͛ƐCouncilofRealtorsʹ2009President
OREFʹBoardofManagers
RMLSʹStrategicAdvisoryCommittee
Re/MaxIntegrityRealEstate
4710VillagePlazaLoop#200.Eugene,OR97401
Officeʹ5413024808/ĞůůʹϱϰϭϵϭϱϱϴϰϬ
Fax5418688271/TollFreeʹ8883343773
1
*=-
7IRXJVSQQ]M4EH
&IKMRJSV[EVHIHQIWWEKI
*VSQ
WVSQ]$ESPGSQ WVSQ]$ESPGSQ"
(EXI
.YRI 414(8
8S
4-)6'=/MXX] /MXX]4MIVG]$GMIYKIRISVYW"
7YFNIGX 3TTSWMXMSRXSKVERXMRKTVSTIVX]XE\I\IQTXMSR
(IEV1W4MIVG]
4PIEWIWIIXLIEXXEGLIHPIXXIVXLEXI\TPEMRWQ]STTSWMXMSRXSXLI'MX]SJ)YKIRIKVERXMRKETVSTIVX]
XE\I\IQTXMSRXSXLIWXSV]WXYHIRXETEVXQIRXFYMPHMRKTVSTSWIHJSVXLITVSTIVX]EX)EWX&VSEH[E]ERH
*IVV]
8LERO]SYJSV]SYVGSRWMHIVEXMSR
7XIZI6SQERME
NOBEL FLANNERY Amanda
From:SLOCUM Tom (SMTP)
Sent:Monday, June 03, 2013 5:14 PM
To:*Eugene Mayor, City Council, and City Manager
Subject:MUPTE on Franklin
Mayor,Councillors,CityManager,
Iurgeyoutoaccepttheapplicationforconstructionoftheproposed12storystudenthousingprojecttobe
sitedonFranklinBlvd.andtograntthedevelopertherequestedMUPTErelief.
TheprojectclearlymeetsthedevelopmentstandardsfortheareaassetforthinEnvisionEugenePlan.The
developerhascompletedhisapplicationfortheMUPTEundertheCity'sexistingMUPTErulesandtheprojectshould
thereforebeconsideredandapprovedinthatcontext.
Tosetforthadditionalcriteriaforapprovalatthistimeisunjustifiable,andwillonlyservetoaddonemore
instanceto
agrowinglistofcaseswheretheCityofEugenechangestherulesafterthegamehasbegun.IftheCityisseriousabout
thedevelopmentoftheEWEBsiteandotherfuturesites,theCouncilshouldtakeheed.
Here'shopingyouwillactwisely
Yourstruly,
TomSlocum
1
NOBEL FLANNERY Amanda
From:Julie Gentili Armbrust <julie@mediationnorthwest.com>
Sent:Tuesday, June 04, 2013 9:16 AM
To:*Eugene Mayor, City Council, and City Manager
Subject:Public Comment - MUPTE
It has come to my attention that the City is taking public comment on the MUPTE application. As a business
owner and a concerned citizen of Eugene, I support this application for two unique reasons.
First, this company has a long track record of providing local jobs. I see far too many individuals who are
struggling to make a living in Eugene. Eugene needs more blue-collar, wage living jobs. I work with
individuals on a daily basis who are out of work and want to work. This project would provide these jobs.
Second, I recently moved my business out of the downtown area due to high vandalism and moved it to the
Valley River area. It is clear to me that a vibrant downtown Eugene begins with filling downtown Eugene with
high density businesses and residential mixed-use projects. This project would assist in the high density,
downtown Eugene that will save the downtown.
Thank you for your consideration.
Julie Gentili Armbrust
--
Julie Gentili Armbrust |Mediation Northwest | 1580 Valley River Drive,
Suite 250,Eugene, OR 97401 | Phone: 541.484.1200|Toll-Free Fax: 866.
228.4430|www.MediationNorthwest.com
IMPORTANT: This email and its attachments is intended solely for use by the addressee and may be privileged or
confidential. Any forward, dissemination, copying, or other use of this email is strictly prohibited.
1
NOBEL FLANNERY Amanda
Subject:RE: The Core Buiding
From: Gary Gentry [mailto:grgentry@yahoo.com]
Sent: Wednesday, June 05, 2013 9:58 AM
To: *Eugene Mayor, City Council, and City Manager
Subject: The Core Buiding
Dear Mayor Piercy, Council Members and Mr. Ruiz,
I live in Eugene and care about how the decisions made for the city that affect its future, especially those
relating to our downtown areas.
I was dismayed to read about the Core proposal in the Register Guard recently. I believe the Core
proposal would be inappropriate for not only the specific location planned, but also for the future development
of the downtown areas as a whole, and for the lack of substantial revenue to be generated to the benefit of the
city. The 12 story building would be far too large for the area – it would be out of character with our
downtown, would cast shadows taking away from the openness of the area, and would result in traffic and
congestion that the city streets are not designed to handle. Additional tax revenue for the city is certainly
needed, but this is the wrong vehicle to accomplish it, and the break given the developer is out of proportion to
the benefit derived by the city. I feel the results of this project would not truly add either to the city's liveability
or, in the end, its long-term revenue.
Having moved to Eugene from St. Louis, MO and having seen these types of projects before – those that are out
of character for an area - I’ve seen the negative impacts to a city. And the resulting “white elephant” for the
city is a long-term burden that planners don’t often take into account. We should not let immediate needs
dictate decisions that will have long-term negative impacts.
I also believe that student housing in Eugene is overbuilt, and several recent RG articles confirm
this. Enrollment at UO is certainly leveling out, and will undoubtedly begin to decrease over the next few years
as a result of higher education moving more and more into the online world. This article from the Christian
The End of College? How online
Science Monitor Weekly issue for this week, was splashed on its cover: "
learning will transform traditional education
". Go to this link for the full article:
http://www.csmonitor.com/USA/Society/2013/0602/How-online-learning-is-reinventing-college?nav=87-frontpage-
.
entryInsideMonitor
This change is happening now, with enormous free online courses offered by some of our finest universities. As
costs for campus learning continue to escalate, students may not fill student housing buildings. In ten years, the
proposed 12 story building could be a huge liability for Eugene, costing the city dearly. I would hope that this
type of project will not be allowed to move forward to the detriment of all of us.
With the best of hopes for our city,
Gary Gentry
1
Gary R. Gentry
3848 Ashford Drive
Eugene, Oregon 97405
541-510-6497
2
ATTACHMENT H
Email from DNA Chair
with Results from Steering Committee Vote
From: David Mandelblatt [mailto:dmandelblatt@yahoo.com]
Sent: Friday, March 01, 2013 4:32 PM
To: *Eugene Mayor, City Council, and City Manager
Subject: Downtown Neighborhood Association re: Core Campus
On Wednesday evening, Feb. 27, the DNA Steering Committee unanimously passed the following motion:
I move that the DNA Steering Committee take a position of support for the proposed Core Campus
student housing project at 515 E. Broadway with the following understandings:
1. All Traffic Impact Analysis work done must include thorough examination of impact on bicycle and
pedestrian traffic as well as automobile traffic. “Automobile” includes public transportation.
2. Safety concerns shall be addressed and mitigated.
3. Enhanced opportunities for pedestrian and bicycle traffic shall be included as part of the “Public
Benefit” requirement of the MUPTE.
Our greatest concern about the project is safety issues that could arise for pedestrians and bicycles. Keeping in
mind that this project intentionally plans to have pretty limited parking opportunities, with the expectation that
it will encourage pedestrian and bike traffic, a Traffic Impact study has to include those aspects. We know that it
is not common practice, but feel that this project uniquely needs the extra scrutiny.
In fact, given Envision Eugene and sustainability goals that the city has set, it is hard to imagine that inclusion of
non-motorized traffic wouldn't be an automatic consideration in all future TIAs.
Given, also, the MUPTE requirement for a project to add something to the community, the Neighborhood
Association has looked carefully at the kinds of things that would make the most sense from our point of view.
Clearly enhancing opportunities for bike and pedestrian traffic would meet the criteria at the same time as
responding to our concerns about safety.
Thank you for considering the DNA viewpoint on this.
Sincerely,
David
David Mandelblatt
Co-chair, Downtown Neighborhood Association
dmandelblatt@yahoo.com
ATTACHMENT I
Financial Analysis
The financial information Core Campus submitted in their application is based on projections
prior to finalizing financing, construction, and tenanting. The financial assumptions included in
Core Campus’s MUPTE application pro-forma have been analyzed and adjusted as necessary to
more accurately reflect the expected financial performance of the project.
Sources
Total Cost
Annual debt service
Equity$ 11,001,14925%n/a
Conventional Debt$ 33,003,44975%$ 2,491,522
Total project$ 44,004,598$ 2,491,522
The $11 million in equity is anticipated to come from a single investor who has worked with
Core Campus on other projects. A minimum of 8.96% return (Cash on Cash) is needed in year 1
to secure the proposed equity investment.
Core Campus plans to use conventional bank construction financing, with the permanent, take-
out financing anticipated from a large commercial bank. Underwriting for the permanent
financing is based on a maximum 75% loan-to-value and minimum 1.25 debt service coverage
ratio.
Pro-Forma Without MUPTE
The pro-forma without MUPTE in this memo is derived from applying market-based
assumptions (described below) to the information provided by the developer.
Without MUPTEYear 1Year 2Year 3Year 4Year 5Year 6Year 7Year 8Year 9Year 10
Rent Income$ 4,227,360$ 4,269,634$ 4,312,330$ 4,355,453$ 4,399,008$ 4,442,998$ 4,487,428$ 4,532,302$ 4,577,625$ 4,623,401
Parking Income$ 88,920$ 89,809$ 90,707$ 91,614$ 92,531$ 93,456$ 94,390$ 95,334$ 96,288$ 97,250
Retail Income$ 110,573 $ 111,679 $ 112,795 $ 113,923 $ 115,062 $ 116,213 $ 117,375 $ 118,549 $ 119,734 $ 120,932
Misc. Income$ 222,239 $ 224,461 $ 226,706 $ 228,973 $ 231,263 $ 233,575 $ 235,911 $ 238,270 $ 240,653 $ 243,060
- Vacancy (5%)$ 232,455 $ 234,779 $ 237,127 $ 239,498 $ 241,893 $ 244,312 $ 246,755 $ 249,223 $ 251,715 $ 254,232
= Effective Gross Rent$ 4,416,600$ 4,460,800$ 4,505,400$ 4,550,500$ 4,596,000$ 4,641,900$ 4,688,300$ 4,735,200$ 4,782,600$ 4,830,400
- Operating Exp (32%)$ 1,413,312$ 1,427,456$ 1,441,728$ 1,456,160$ 1,470,720$ 1,485,408$ 1,500,256$ 1,515,264$ 1,530,432$ 1,545,728
= NOI$ 3,003,288$ 3,033,344$ 3,063,672$ 3,094,340$ 3,125,280$ 3,156,492$ 3,188,044$ 3,219,936$ 3,252,168$ 3,284,672
- Debt Service$ 2,491,522$ 2,491,522$ 2,491,522$ 2,491,522$ 2,491,522$ 2,491,522$ 2,491,522$ 2,491,522$ 2,491,522$ 2,491,522
= CF$ 511,766 $ 541,822 $ 572,150 $ 602,818 $ 633,758 $ 664,970 $ 696,522 $ 728,414 $ 760,646 $ 793,150
Cash on Cash Return 4.7%4.9%5.2%5.5%5.8%6.0%6.3%6.6%6.9%7.2%
Value$ 42,904,000$ 43,333,000$ 43,766,743$ 44,204,857$ 44,646,857$ 45,092,743$ 45,543,486$ 45,999,086$ 46,459,543$ 46,924,000
DCR 1.21
Rents & Vacancy
Income for the pro-forma is based on the following:
Residential rents from $1.83 - $2.23 per square foot per month (based on unit type)
Commercial rent $2.08 per square foot per month
Parking $65 per space
Miscellaneous (vending, fees, & cleaning) at 6% of residential income
The pro-forma uses market assumptions for vacancy of 5%. An 1% annual income escalation
rate is used.
Operating Expenses
For most multi-family projects, the standard assumption for operating expenses is 25% to 30%.
Operating expenses assumed for the proposed Core Campus project are estimated at 32% of
effective gross rental income. Slightly higher operating cost are expected from enhanced on-
site management personnel costs and the operation and maintenance costs associated with
higher than standard amenities such as open space, structured parking, hot tub, and furnished
units. Information from a local appraiser indicates an acceptable range up to 35%. An 1%
annual operating expense escalation rate is assumed.
Debt & Interest Rate
Debt service is based on a 30-year fixed loan at 5.75%.
Return & Value
Without the MUPTE savings, the year 1 return on equity is forecasted to be 4.7% (Cash on
Cash). The projected market value for the completed project is $42.9 million, as determined by
the Net Operating Income (NOI) divided by the capitalization rate. The estimated capitalization
rate is 7% based on information from a local appraiser who indicated an acceptable range up to
and including 7.25%.
ANALYSIS
The without MUPTE pro-forma appears to fall short of qualifying for the needed debt (with
debt coverage ratio of 1.21 and loan-to-value of 77%). Additionally, the project lacks the ability
to attract the needed equity. The proposed project will require the investor to assume some
risk from the major redevelopment costs associated with the site and from the rate of
absorption of the large number of proposed units brought into the local student housing
market. Core Campus has indicated that their primary investor will require a minimum first
year return of 8.96%. Without the MUPTE savings, the project generates a 4.7% first year
return, which is insufficient to attract the required $11 million equity investment. The Cash on
Cash only reaches 7.2% by year 10 in the absence of the MUPTE.
Pro-Forma With The MUPTE
With MUPTEYear 1Year 2Year 3Year 4Year 5Year 6Year 7Year 8Year 9Year 10
Income$ 4,649,100$ 4,695,600$ 4,742,500$ 4,790,000$ 4,837,900$ 4,886,200$ 4,935,100$ 4,984,500$ 5,034,300$ 5,084,600
- Vacancy$ 232,500 $ 234,800 $ 237,100 $ 239,500 $ 241,900 $ 244,300 $ 246,700 $ 249,200 $ 251,700 $ 254,200
= Effective Gross Rent$ 4,416,600$ 4,460,800$ 4,505,400$ 4,550,500$ 4,596,000$ 4,641,900$ 4,688,400$ 4,735,300$ 4,782,600$ 4,830,400
- Operating Exp$ 1,413,300$ 1,427,500$ 1,441,700$ 1,456,200$ 1,470,700$ 1,485,400$ 1,500,300$ 1,515,300$ 1,530,400$ 1,545,700
- Property Tax
$ (449,000)$ (462,500)$ (476,400)$ (490,700)$ (505,400)$ (520,600)$ (536,200)$ (552,300)$ (568,900)$ (586,000)
(saved by MUPTE)
= NOI$ 3,452,300$ 3,495,800$ 3,540,100$ 3,585,000$ 3,630,700$ 3,677,100$ 3,724,300$ 3,772,300$ 3,821,100$ 3,870,700
- Debt Service$ 2,491,522$ 2,491,522$ 2,491,522$ 2,491,522$ 2,491,522$ 2,491,522$ 2,491,522$ 2,491,522$ 2,491,522$ 2,491,522
= CF$ 960,778 $ 1,004,278$ 1,048,578$ 1,093,478$ 1,139,178$ 1,185,578$ 1,232,778$ 1,280,778$ 1,329,578$ 1,379,178
Cash on Cash Return 8.7%9.1%9.5%9.9%10.4%10.8%11.2%11.6%12.1%12.5%
Value$ 49,319,000$ 49,940,000$ 50,573,000$ 51,214,000$ 51,867,000$ 52,530,000$ 53,204,000$ 53,890,000$ 54,587,000$ 55,296,000
DCR 1.39
The pro-forma above shows the impact of the MUPTE. The Cash on Cash return reaches 8.7%
in year 1 and 12.5% in year 10. The average return for the project over the ten-year period is
10.6%. This is within the market expectation for Cash on Cash return. The project valuation is
67% loan to value.
Tax Savings Calculation
The property tax savings from the MUPTE is calculated from the estimated value of the project:
X–=
Assessed Value Tax rate Land Property Tax MUPTE Savings
XX
Assessed Value = Value Changed Property Ratio = $44,034,000 0.5898 = $25,971,300
Tax Rate = $18.18 per $1,000 in assessed value
Land Property Tax = $11,200
The land property tax must be subtracted out from the total tax because the MUPTE only
applies to the value of the new improvements. The estimated property tax for the land is
$11,200, which was estimated by the current assessed value of the land ($639,816).
The estimated property tax savings from the MUPTE in year 1 is $450,000.
The property tax estimate is based on two key assumptions:
1.The current tax rate stays the same for the 10 year period.
2.Assessed value increases annually by 3%, which would mean that there is no significant
change in the way assessed value is calculated; also the property will be reassessed
when the exemption expires.
Core Campus states in the application that the MUPTE also allows for higher quality finishes and
building to LEED standard. Examples of the finishes include stainless steel appliances and
granite counter tops, which allow the project to position itself for the possibility of converting
the structure to a non-student focus in the future as added flexibility and to mitigate vacancy
risk. (Shared walls between bedrooms can be removed to provide larger master suites and
reduce the bedroom count to accommodate a more typical market rate renter.) Construction is
steel and concrete ($140 per square foot hard costs building only; $130 per square foot hard
costs building and parking).