Item 2D: Approval of Resolution on Historic Property

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ECC UGENE ITY OUNCIL AIS GENDA TEM UMMARY Adoption of Resolution 4933 Adopting a Second Period of Special Assessment of Historic Property Pursuant to SB 416 (2007 OR LAWS CH 718) Meeting Date: March 10, 2008 Agenda Item Number: 2D Department: Planning and Development Staff Contact: Ken Guzowski www.eugene-or.gov Contact Telephone Number: 682-5562 ISSUE STATEMENT The City Council is asked to adopt the attached resolution that will allow owners of commercial properties listed in the National Register of Historic Places to apply for a second 15-year enrollment in the Oregon Special Assessment Program. Pursuant to Senate Bill (SB) 416, this program is administered by the Oregon State Historic Preservation Office and allows the owner to freeze property taxes at their current assessed value for a second 15-year period, with the agreement that they will use the tax savings to appropriately rehabilitate their historic property. BACKGROUND The City Council has not been involved in this program in the past. The Oregon State Historic Preservation Office works directly with the property owner to develop their preservation plan and to ensure compliance and timeliness. The Legislative content of SB 416 makes commercial property eligible for a second 15-year period, provided the local government adopts a resolution authorizing a second term on a jurisdictional basis, not on a building-by-building basis. Currently, there are a total of 32 historic properties in Eugene enrolled in the Oregon’s Special Assessment Program, consisting of nine historic commercial and 23 historic residential properties. Commercial properties listed in the National Register were able to enroll in a second 15-year tax freeze as of 1995, but with the passage of SB 416 local jurisdictions are now required to adopt a resolution to allow commercial properties to apply for a second 15-year enrollment. On average, a commercial property might see a savings of as much as $800 to $1,000/year or $12,000 to $15,000 over 15 years. The equation can be extended to $108,000 to $135,000 in total tax reductions for the nine commercial property owners for the entire 15 year period. These figures are approximate because the condition of the property as it relates to date of enrollment might have resulted in an unusually low freeze on the assessment, which carries forward for the full 15-year term. Upon completion of the first 15-year term, the property is assessed at the current market value, so it is this dollar amount that property owners use to enroll in a second 15-year term. Adoption of the resolution will allow current and future commercial properties listed in the National Register to enroll in a second 15-year Special Assessment Program, providing them tax savings so that they can continue to reinvest the savings in the rehabilitation of their property. F:\CMO\2008 Council Agendas\M080310\S0803102D.doc