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Home My WebLink About05/07/18 Work Session City of Springfield Work Session Meeting MINUTES OF THE WORK SESSION MEETING OF THE SPRINGFIELD CITY COUNCIL HELD MONDAY MAY 7, 2018 The City of Springfield Council met in a work session in the Jesse Maine Meeting Room., 225 Fifth Street, Springfield, Oregon, on Monday May 7, 2018 at 6:00 p.m., with Mayor Lundberg presiding. ATTENDANCE Present were Mayor Lundberg and Councilors VanGordon, Wylie(6:06 p.m.), Moore, Stoehr,and Woodrow. Also present were City Manager Gino Grimaldi, City Attorney Mary Bridget Smith, City Recorder AJ Ripka,and members of the staff. Councilor Pishioneri absent(excused). 1. Property Tax Exemptions for Housing. Sandy Belson, Senior Community Development Manager presented the staff report on this item. The City recognizes there is an affordable housing issue within the community and is working to address the problem. The findings point to a shortage of housing and the expense of housing relative to household incomes. Rental vacancy rates are very low and it is a seller's market with a shortage of homes on the market. Only one market-rate multi-family housing project has been built in the past decade. Based on data from the 2010-201.4 American Community Survey(ACS), there are 11,225 renter households in Springfield. Half of those renting households(5,575) are cost-burdened, paying more than 30%of their income on housing and basic utilities.; and 27%of renting households(2,590)are severely cost-burdened,paying more than half of their income on housing and basic utilities. The Council's Affordable Housing Strategy includes incentivizing the creation of housing at all levels of the continuum,both market-rate and income-qualified housing. Property tax exemptions are one tool available to help make it more feasible for developers to increase the number of new housing units and/or to make those units affordable to Springfield residents. Staff is seeking direction on how to move forward concerning the two property tax exemption. programs. The Council Briefing Memo includes policy questions with regard to the Low-Income Rental Housing exemption. For both programs,Council could set a cap or other limits on the total property tax that could be exempted,which would impact General Fund revenues. In the case of the Housing Diversity Tax Exemption, it is anticipated that, in the long term,the City would benefit from the property taxes collected over the life of the development which might not, otherwise,have been built. After some discussion, Councilors Moore, Woodrow,and VanGordon agreed that they would like to see more housing in the downtown area. Ms. Belson will bring comparison information back to the Council, at a later date, regarding Vertical housing property tax exemption and Multi-unit property tax exemption with the ultimate outcome being that the Council would choose to suppoz t one or the other vs.moving forward with both exemption pragrains. City of Springfield Council Work Session Minutes May 7,2018 Page 2 Mayor Lundberg pointedout that Councilor Wylie has had questions and concerns, in the past, about creating some sort of cap to tax exemptions. In response to question six on the AIS,Councilor Woodrow would like to know how it would affect the program if there was a limit based on year, an annual cap,by setting a cap by area,or by percentage. Councilor VanGordon said that he would tike to see a cap around fifty thousand dollars a year,which could potentially be used on up to five projects a year,based on the examples provided by staff. Councilor Wylie stated that she is opposed to reinventing the wheel if other cities have implemented a program like this and have criteria we could use to develop our program. She asked that a recommendation be brought back to the Council that will allow fifty to one hundred thousand dollars a year to cover no more than a specified number of projects,along with soiree criteria that the developers would have to meet in order to qualify for the exception. Ms. Belson clarified that every project would come before the Council for approval to ensure that each project meets the criteria set by the Council and there is a public good benefit. Councilor Stoehr expressed that, if a cap is implemented for this project, it be li€nited to five years,to give the Council an opportunity to adjust the program, if needed. Mayor Lundberg expressed that she would prefer an annual dollar figure cap for budgetary reasons with an accumulative cap in case there was more than expected interest. The Council instructed staff to set a cap of fifty thousand dollars a year. In response to question one on the AIS, after clarifying questions were answered, the Council expressed support for limiting this exemption for new housing and that it could also include existing vacant property that could be converted to new housing. After further discussion regarding question two, Ms. Pelson clarified that the direction she received is to set a minimum number of units to four, and to look for ways an ADU (or multiple ADUs)managed by a non-profit in a scattered site approach, might also qualify for the tax exemption. Staff will continue to work on this item and it will be brought back at a future work session. 2. Potential Future City Art Projects. Niel Laudati, Legislative and Public Affairs Manager, presented the staff report on this item. The City Manager's Office has taken an active role in continuing the production.of high quality art in Springfield. Staff will provide a look at potential projects for the next five years. The City Manager's Office Community Art Program, which includes input and guidance from the city council,has completed six,well-received and successful projects since 2010--including the coordination of partnerships to fund the Springfield Veterans Plaza and installation of the Vietnam Veterans memorial. City of Springfield Council Work Session Minutes May 7,2018 Page 3 Council approved the completed art projects with an expectation that they would have a positive impact on economic development and foster pride within the community. Springfield has since become a city known for our public art and the projects have become a staple in tourism advertisements, brochures,positive media stories, family and school photos, and in presentations and city outreach material. These projects also connect well with the art created by the Emerald Art Center,the Springfield Arts Commission and a number of community members and groups. The attached draft art plan is a discussion document based on feedback we have received over the last several years. While limited discussions with interested parties have taken place,to identify if some of these projects would be feasible,no public discussions have transpired. Staff is looking for input from council: 1. Allow staff to continue moving the plan forward as is,pending future approvals and funding. 2. Allow staff to continue working on select projects,pending future approvals and funding. 3. Put a hold on future art projects. Councilor Wylie recommended honoring the"loggers" in some form of statue. Councilor Woodrow recommended inquiring to see if there are businesses or citizens that.would be witting to donate lighting or money towards lighting for the murals. Councilor Moore recommended including metal art in the center of the roundabouts in town to replace the trees and landscaping as a cost effective option that would also contribute to the art in our committee. The Council provided approval to allow staff to continue moving the plan forward pending future approvals and funding. ADJOURNMENT The meeting was adjourned at 7:02 p.m. Minutes Recorder—AJ Ripka Christine L. Lundberg Mayor Attest: 04"-P� AJ RiVka City Recorder