HomeMy WebLinkAboutItem 13 Low-Incom Rental Housing Property Tax Exemption AGENDA ITEM SUMMARY Meeting Date: 1/7/2019
Meeting Type: Regular Meeting
Staff Contact/Dept.: Erin Fifield / DPW Staff Phone No: 541-726-2302
Estimated Time: 10 Minutes
S P R I N G F I E L D C I T Y C O U N C I L Council Goals: Encourage Economic Development and
Revitalization through Community Partnerships
ITEM TITLE: RESOLUTION APPROVING/DENYING A LOW-INCOME RENTAL HOUSING PROPERTY TAX EXEMPTION FOR THE MYRTLEWOOD,
LOCATED AT 1072 MAIN STREET
ACTION
REQUESTED:
Adopt a Resolution to approve/deny a new 20-year Low-Income Rental Housing
Property Tax Exemption (LIRHPTE) for The Myrtlewood, located at 1072 Main Street.
ISSUE
STATEMENT:
St. Vincent de Paul (SVDP) submitted an application under the City’s Low-Income
Rental Housing Property Tax Exemption program for The Myrtlewood, a recently completed project consisting of 35 units of housing affordable to low-income
persons, including four units for households with developmental disabilities, severe
mental illness, or intellectual disabilities.
ATTACHMENTS: ATT1: DRAFT Resolution approving the exemption ATT2: DRAFT Resolution denying the exemption
ATT3: Exhibits A, B and C to the Resolution
DISCUSSION/ FINANCIAL IMPACT:
On June 25, 2018, City Council re-instated the City’s Low-Income Rental Housing Property Tax Exemption program, with the purpose of encouraging rental housing for low-income persons. The City’s Low-Income Rental Housing Property Tax
Exemption program provides a property tax exemption for 20 years for projects that create new units and offer affordable rents to low-income persons (defined as
earning no more than 60% of area median income).
The Myrtlewood is a project with 35 one-bedroom units, restricted to individuals
earning 50% or less of the area median income. Rents are currently set at $475 per
month. In 2016, the Eugene-Springfield HOME Consortium allocated $600,000 of HOME funds to The Myrtlewood to assist with construction costs. With a 9% Low-
Income Housing Tax Credit award from Oregon Housing and Community Services, the rent and income restrictions on this project shall be maintained for 60 years.
Staff have reviewed the application, find that it meets the criteria set forth for the program, and recommend Council’s adoption of a Resolution approving the exemption. If Council denies the application, it shall include the reasons for denial
in the Resolution (based on ATT2).
SVDP estimates the annual property taxes for The Myrtlewood to be $10,733,
calculated using a special assessment available for properties charging very low rents. The City’s portion of this tax is 35.4%, or about $3,800 per year. The
exemption would allow SVDP to minimize rent increases, and allocate more funds
to resident service programs and property maintenance over the long term.
The governing bodies of the Springfield School District, Willamalane, Lane
County, and Lane Community College have agreed to the City’s exemption program, exceeding the 50% threshold for the exemption to apply to all taxing
districts.
CITY OF SPRINGFIELD, OREGON
RESOLUTION NO. ___________
A RESOLUTION APPROVING A LOW-INCOME RENTAL HOUSING PROPERTY TAX
EXEMPTION FOR THE MYRTLEWOOD, LOCATED AT 1072 MAIN STREET, ASSESSOR’S MAP 17-03-35-41, TAX LOTS 4800 AND 4900 (APPLICANT ST. VINCENT DE PAUL SOCIETY OF LANE COUNTY, INC. ON BEHALF OF THE OWNER MYRTLEWOOD LIMITED PARTNERSHIP)
WHEREAS, Myrtlewood Limited Partnership has recently constructed and owns The Myrtlewood, 35
units of housing affordable to low-income persons located at 1072 Main Street, Springfield, Oregon,
Assessor’s Map 17-03-35-41, Tax Lots 4800 and 4900;
WHEREAS, St. Vincent de Paul Society of Lane County, Inc. (hereinafter “St. Vincent de Paul” or
“applicant”) is the General Partner of the Myrtlewood Limited Partnership and manages The
Myrtlewood as the property manager;
WHEREAS, St. Vincent de Paul has applied to the City of Springfield for a Low-Income Rental Housing
Property Tax Exemption for The Myrtlewood on behalf of the property owner, Myrtlewood Limited
Partnership, located at 2890 Chad Drive, Eugene, OR, 97408; WHEREAS, the Community Development Manager of the Department of Development and Public
Works, as designee of the City Manager, has reviewed the application, attached hereto as Exhibit B,
and submitted a Report and Recommendation, which is attached hereto as Exhibit A;
WHEREAS, the applicant submitted all materials required by Section 3.504 of the Springfield Municipal
Code, and is in compliance with the policies set forth in the Standards and Guidelines adopted by
Resolution No. 2018-17; and
WHEREAS, the application satisfactorily meets the criteria for approval as set forth in Section 3.506 of
the Springfield Municipal Code, as shown in the Report and Recommendation;
NOW, THEREFORE, BE IT RESOLVED BY THE COMMON COUNCIL OF THE CITY OF SPRINGFIELD:
Section 1: Based on the above findings, the City Council approves the application of St. Vincent de Paul on behalf of Myrtlewood Limited Partnership for an ad valorem property tax exemption
under the City’s Low-Income Rental Housing Property Tax Exemption program for The Myrtlewood, 35
units of low-income rental housing units located at 1072 Main Street in Springfield, Assessor’s Map 17-
03-35-41 and Tax Lots 4800 and 4900, Tax Account number 1398500.
Section 2: This resolution serves as the certification that the portion of the property
necessary for the low-income housing units, described in Exhibit C, is exempt from ad valorem property taxation commencing July 1, 2019, and continuing for a period of 20 years.
Section 3: In the event the Applicant fails to comply with the criteria and requirements as
set forth in ORS 307.515 through 307.357, Sections 3.500 through 3.508 of the Springfield Code, Standards and Guidelines adopted by Resolution No. 2018-17 for the City’s Low-Income Rental Housing
Property Tax Exemption program, and Report and Recommendation of the Community Development
Manager of the Department of Development and Public Works, Exhibit A, the City Manager may
terminate the exemption, following the procedures established in Section 3.508 of the Springfield
Municipal Code and applicable requirements under ORS 307.515 through 307.537.
Attachment 1, Page 1 of 2
Section 4: The City Manager, or the Manger’s designee, is requested to forward a copy of
this Resolution to the applicant within 10 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, 2019.
Section 5: This Resolution will take effect upon adoption by the Council and approval by the Mayor.
ADOPTED by the Common Council of the City of Springfield this ___ day of _________, ____,
by a vote of _____ for and ____ against.
_______________________
Mayor ATTEST:
__________________________
City Recorder
Attachment 1, Page 2 of 2
CITY OF SPRINGFIELD, OREGON
RESOLUTION NO. ___________
A RESOLUTION DENYING A LOW-INCOME RENTAL HOUSING PROPERTY TAX EXEMPTION
FOR THE MYRTLEWOOD, LOCATED AT 1072 MAIN STREET, ASSESSOR’S MAP 17-03-35-41, TAX LOTS 4800 AND 4900 (APPLICANT ST. VINCENT DE PAUL SOCIETY OF LANE COUNTY, INC. ON BEHALF OF THE OWNER MYRTLEWOOD LIMITED PARTNERSHIP)
WHEREAS, Myrtlewood Limited Partnership has recently constructed and owns The Myrtlewood, 35
units of housing affordable to low-income persons located at 1072 Main Street, Springfield, Oregon,
Assessor’s Map 17-03-35-41, Tax Lots 4800 and 4900;
WHEREAS, St. Vincent de Paul Society of Lane County, Inc. (hereinafter “St. Vincent de Paul” or
“applicant”) is the General Partner of the Myrtlewood Limited Partnership and manages The
Myrtlewood as the property manager;
WHEREAS, St. Vincent de Paul has applied to the City of Springfield for a Low-Income Rental Housing
Property Tax Exemption for The Myrtlewood on behalf of the property owner, Myrtlewood Limited
Partnership, located at 2890 Chad Drive, Eugene, OR, 97408; WHEREAS, the Community Development Manager of the Department of Development and Public
Works, as designee of the City Manager, has reviewed the application, attached hereto as Exhibit B,
and submitted a Report and Recommendation, which is attached hereto as Exhibit A;
WHEREAS, the applicant has/has not submitted all materials required by Section 3.504 of the
Springfield Municipal Code, and is/is not in compliance with the policies set forth in the Standards and
Guidelines adopted by Resolution No. 2018-17; and
WHEREAS, the application, which is attached hereto as Exhibit B, satisfactorily meets/does not
satisfactorily meet the criteria for approval as set forth in Section 3.506 of the Springfield Municipal Code, as shown in the Report and Recommendation;
NOW, THEREFORE, BE IT RESOLVED BY THE COMMON COUNCIL OF THE CITY OF SPRINGFIELD:
Section 1: Based on the above findings, the City Council denies the application of St.
Vincent de Paul on behalf of Myrtlewood Limited Partnership for an ad valorem property tax exemption
under the City’s Low-Income Rental Housing Property Tax Exemption program for The Myrtlewood, 35
units of low-income rental housing units located at 1072 Main Street in Springfield, Assessor’s Map 17-03-35-41 and Tax Lots 4800 and 4900, Tax Account number 1398500. Property description is attached
as Exhibit C.
Section 2: The City Manager, or the Manger’s designee, is requested to forward a copy of
this Resolution to the applicant within 10 days from the date of adoption of this Resolution, along with
a notice informing the applicant of the right to appeal in the manner set forth in ORS 34.010 to 34.100.
Section 3: This Resolution will take effect upon adoption by the Council and approval by the
Mayor.
ADOPTED by the Common Council of the City of Springfield this ___ day of _________, ____,
by a vote of _____ for and ____ against.
Attachment 2, Page 1 of 2
_______________________
Mayor ATTEST:
__________________________
City Recorder
Attachment 2, Page 2 of 2
Attachment 3, Exhibit A Page 1 of 2
Attachment 3, Exhibit A Page 2 of 2
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AMENDED ANNUAL REPORT
Corporation Division
www.filinginoregon.com
E-FILED
Feb 09, 2018
OREGON SECRETARY OF STATE
128677192
REGISTRY NUMBER
01/25/2017
REGISTRATION DATE
BUSINESS NAME
MYRTLEWOOD LIMITED PARTNERSHIP
BUSINESS ACTIVITY
REAL ESTATE
MAILING ADDRESS
2890 CHAD DRIVE
EUGENE OR 97408 USA
DOMESTIC LIMITED PARTNERSHIP
TYPE
2890 CHAD DRIVE
EUGENE OR 97408 USA
PRIMARY PLACE OF BUSINESS
OREGON
JURISDICTION
REGISTERED AGENT
TERRENCE R MCDONALD
2890 CHAD DRIVE
EUGENE OR 97408 USA
If the Registered Agent has changed, the new agent has consented to the appointment.
GENERAL PARTNER
5598719 - ST. VINCENT DE PAUL SOCIETY OF LANE COUNTY, INC.
2890 CHAD DRIVE
EUGENE OR 97408 USA
Page 1Attachment 3, Exhibit B Page 47 of 85
Corporation Division
www.filinginoregon.com OREGON SECRETARY OF STATE
I declare as an authorized signer, that this filing has been examined by me and is, to the best of my knowledge
and belief, true, correct, and complete. Making false statements in this document is against the law and may be
penalized by fines, imprisonment, or both.
By typing my name in the electronic signature field, I am agreeing to conduct business electronically with the
State of Oregon. I understand that transactions and/or signatures in records may not be denied legal effect solely
because they are conducted, executed, or prepared in electronic form and that if a law requires a record or
signature to be in writing, an electronic record or signature satisfies that requirement.
ELECTRONIC SIGNATURE
NAME
WALLACE A GLAUSI
TITLE
AUTHORIZED AGENT
DATE SIGNED
02-09-2018
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Attachment 3, Exhibit C Page 1 of 1